Federal Register / Vol. 75, No. 38 / Friday, February 26, 2010 / Notices 9009 

9 17 CFR 200.30–3(a)(12). 

1 15 U.S.C.78s(b)(1). 

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4The Exchange attempted to file this proposed 

rule change prior to the close of business on 

February 12, 2010, but experienced delays with the 

electronic filing system which caused this filing to 

be received after the close of business and to be 

assigned a filing date of February 16, 2010, the next 

business day. Because the delay was caused by 

technical issues, the Commission deems the official 

filing date of this proposed rule change to be 

February 12, 2010. 

5See Securities Exchange Act Release No. 59755 

(April 13, 2009), 74 FR 18009 (April 20, 2009) (SR– 

NYSE–2009–15). 

6See NYSE Rule 123C(9)(a)(1). 

7Specifically, the order acceptance cut-off time 

period designated by the Exchange was 4:35 p.m. 

Thereafter, once such offsetting interest from both 

on-Floor and off-Floor participants was received, 

the closing transaction for the Class A security was 

completed at approximately 4:41 p.m. See E-mail 

from Deanna G. W. Logan, Managing Director, 

NYSE Regulation, to David Liu, Assistant Director, 

et al., Division of Trading and Markets, 

Commission, dated February 16, 2010. 

printing in the Commission’s Public 

Reference Room, 100 F Street, NE., 

Washington, DC 20549, on official 

business days between the hours of 

10 a.m. and 3 p.m. Copies of such filing 

also will be available for inspection and 

copying at the principal office of the 

Exchange. All comments received will 

be posted without change; the 

Commission does not edit personal 

identifying information from 

submissions. You should submit only 

information that you wish to make 

available publicly. All submissions 

should refer to File Number SR–CBOE– 

2010–017 and should be submitted on 

or before March 19, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.9

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–3945 Filed 2–25–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–61549; File No. SR–NYSE– 

2010–09] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change Extending the 

Time Allowed To Temporarily Suspend 

Certain NYSE Requirements Relating 

to the Closing of Securities on the 

Exchange Which Currently Operates 

as a Pilot Pursuant to Former NYSE 

Rule 123C(8)(a)(1) Currently NYSE Rule 

123C(9)(a)(1) 

February 19, 2010. 

Pursuant to section 19(b)(1) 1 of the 

Securities Exchange Act of 1934 (the 

‘‘Act’’) 2 and Rule 19b–4 thereunder,3

notice is hereby given that, on February 

12, 2010,4 New York Stock Exchange 

LLC (‘‘NYSE’’ or the ‘‘Exchange’’) filed 

with the Securities and Exchange 

Commission (the ‘‘Commission’’) the 

proposed rule change as described in 

Items I and II below, which Items have 

been prepared by the self-regulatory 

organization. The Commission is 

publishing this notice to solicit 

comments on the proposed rule change 

from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to extend the 

time allowed to temporarily suspend 

certain NYSE requirements relating to 

the closing of securities on the Exchange 

which currently operates as a pilot 

pursuant to former NYSE Rule 

123C(8)(a)(1) currently NYSE Rule 

123C(9)(a)(1). The text of the proposed 

rule change is available at the Exchange, 

the Commission’s Public Reference 

Room, and http://www.nyse.com. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

self-regulatory organization included 

statements concerning the purpose of, 

and basis for, the proposed rule change 

and discussed any comments it received 

on the proposed rule change. The text 

of those statements may be examined at 

the places specified in Item IV below. 

The Exchange has prepared summaries, 

set forth in sections A, B, and C below, 

of the most significant parts of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

NYSE Rule 123C(9)(a)(1), formerly 

NYSE Rule 123C(8)(a)(1), allows the 

Exchange to temporarily suspend 

certain rule requirements at the close 

when extreme order imbalances may 

cause significant dislocation to the 

closing price. The rule has operated on 

a pilot basis since April 2009 (‘‘Extreme 

Order Imbalance Pilot’’ or Pilot).5

Through this filing, [sic] proposes to 

temporarily extend the time allowed to 

temporarily suspend certain NYSE 

requirements relating to the closing of 

securities on the Exchange which 

currently operates as a pilot pursuant to 

123C(9)(a)(1). 

Background 

Pursuant to NYSE Rule 123C(9)(a)(1), 

the Exchange may suspend NYSE Rules 

52 (Hours of Operation) to resolve an 

extreme order imbalance that may result 

in a price dislocation at the close as a 

result of an order entered into Exchange 

systems, or represented to a DMM orally 

at or near the close.6

The provisions of NYSE Rule 

123C(9)(a)(1) operate as the Extreme 

Order Imbalance Pilot. The Exchange 

invokes NYSE Rule 123C(9)(a)(1) to 

attract offsetting interest in those rare 

circumstances where there exists such a 

large imbalance at the close that a DMM 

is unable to close the security without 

significantly dislocating the price. 

Further, pursuant to NYSE Rule 

123C(9)(ii) the time to receive such offsetting interest must not be later than 

4:30 p.m. (or 30 minutes after the 

scheduled close in the case of an earlier 

close). 

Proposal To Extend the Time To 

Receive Off-Setting Interest in Berkshire 

Hathaway A Security on February 12, 

2010 

On February 12, 2009, significant 

corporate actions in Berkshire Hathaway 

Class A and B securities significantly 

increased the trading volume in those 

securities. It was determined based on 

the fact that there is a relation between 

the price of the two securities and the 

fact that there was significantly greater 

liquidity in the Class B shares than the 

Class A shares that the most efficient 

manner to effect the close of trading in 

those securities was to effect the closing 

transaction in Berkshire Hathaway Class 

B securities first. 

The significant volume resulted in 

[sic] Class B security closing transaction 

be [sic] completed at 4:19 p.m. 

Thereafter the DMM immediately 

assessed the shares eligible to be 

executed in the closing transaction for 

the Class A securities. At 4:27 p.m. 

when the imbalance was determined the 

Exchange sought off-setting interest; 

however, the remaining 3 minutes was 

not a sufficient amount of time to 

receive and effect the closing 

transaction in the Class A security. 

As to effect a fair and orderly close, 

the closing transaction for the Class A 

security occurred after 4:30 p.m.7

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Securities Exchange Act of 1934 


sroberts on DSKD5P82C1PROD with NOTICES
9010 Federal Register / Vol. 75, No. 38 / Friday, February 26, 2010 / Notices 

8 15 U.S.C. 78f(b). 

9 15 U.S.C. 78f(b)(5). 

10 15 U.S.C. 78s(b)(3)(A). 

11 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6)(iii) requires the self-regulatory organization 

to submit to the Commission written notice of its 

intent to file the proposed rule change, along with 

a brief description and text of the proposed rule 

change, at least five business days prior to the date 

of filing of the proposed rule change, or such 

shorter time as designated by the Commission. The 

Exchange has satisfied this requirement. 12 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

(the ‘‘Act’’),8 in general, and furthers the 

objectives of Section 6(b)(5) of the Act,9

in particular, in that it is designed to 

prevent fraudulent and manipulative 

acts and practices, to promote just and 

equitable principles of trade, to remove 

impediments to and perfect the 

mechanism of a free and open market 

and a national market system, and, in 

general, to protect investors and the 

public interest. The Exchange believes 

the proposal facilitates the fair and 

orderly execution of the closing 

transactions in an unusual market 

situation and thus ultimately served to 

protect investors and the public interest. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will impose 

any burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments were solicited 

or received with respect to the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the foregoing proposed rule 

change: (i) Does not significantly affect 

the protection of investors or the public 

interest; (ii) does not impose any 

significant burden on competition; and 

(iii) by its terms, does not become 

operative for 30 days from the date on 

which it was filed, or such shorter time 

as the Commission may designate, if 

consistent with the protection of 

investors and the public interest, it has 

become effective pursuant to Section 

19(b)(3)(A) of the Act 10 and Rule 19b– 

4(f)(6) thereunder.11

At any time within 60 days of the 

filing of the proposed rule change, the 

Commission may summarily abrogate 

such rule change if it appears to the 

Commission that such action is 

necessary or appropriate in the public 

interest, for the protection of investors, 

or otherwise in furtherance of the 

purposes of the Act. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s Internet 

comment form (http://www.sec.gov/ 

rules/sro.shtml); or 

• Send an e-mail to rulecomments@sec.gov. Please include File 

Number SR–NYSE–2010–09 on the 

subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Elizabeth M. Murphy, Secretary, 

Securities and Exchange Commission, 

100 F Street, NE., Washington, DC 

20549–1090. 

All submissions should refer to File 

Number SR–NYSE–2010–09. This file 

number should be included on the 

subject line if e-mail is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

Internet Web site (http://www.sec.gov/ 

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for Web site viewing and 

printing in the Commission’s Public 

Reference Room on official business 

days between the hours of 10 a.m. and 

3 p.m. Copies of such filing also will be 

available for inspection and copying at 

the principal office of the Exchange. All 

comments received will be posted 

without change; the Commission does 

not edit personal identifying 

information from submissions. You 

should submit only information that 

you wish to make available publicly. All 

submissions should refer to File 

Number SR–NYSE–2010–09 and should 

be submitted on or before March 19, 

2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–3946 Filed 2–25–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–61558; File No. SR–Phlx– 

2010–16] 

Self-Regulatory Organizations; 

NASDAQ OMX PHLX, Inc.; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change Relating to 

Modification of Fees 

February 22, 2010. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 

(‘‘Act’’) 1, and Rule 19b–4 thereunder,2

notice is hereby given that on January 

28, 2010, NASDAQ OMX PHLX, Inc. 

(‘‘Phlx’’ or ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(‘‘SEC’’ or ‘‘Commission’’) the proposed 

rule change as described in Items I, II, 

and III, below, which Items have been 

substantially prepared by the Exchange. 

The Commission is publishing this 

notice to solicit comments on the 

proposed rule change from interested 

persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to: (i) Amend 

its Monthly Cap on equity options 

transaction fees; (ii) amend the 

calculation of the Monthly Cap; and (iii) 

amend the fee schedule to reflect 

current appeal fees and make other 

technical modifications. 

While changes to the Exchange’s Fee 

Schedule pursuant to this proposal are 

effective upon filing, the Exchange has 

designated this proposal to be operative 

for trades settling on or after February 

1, 2010. 

The text of the proposed rule change 

is available on the Exchange’s Web site 

at http://nasdaqtrader.com/ 

micro.aspx?id=PHLXfilings, on the 

Commission’s Web site at http:// 

www.sec.gov, at the principal office of 

the Exchange, and at the Commission’s 

Public Reference Room. 


sroberts on DSKD5P82C1PROD with NOTICES