Federal Register / Vol. 75, No. 44 / Monday, March 8, 2010 / Notices 10543 

4 15 U.S.C. 78q–1. 

5 15 U.S.C. 78q–1(b)(3)(F). 

6 15 U.S.C. 78q–1. 

7 15 U.S.C. 78s(b)(2). 

8 In approving the proposed rule change, the 

Commission considered the proposal’s impact on 

efficiency, competition, and capital formation. 15 

U.S.C. 78c(f). 

9 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

primarily pursuant to Rule 9 and 

Addendum D with related provisions in 

Addendum D with related provisions in 

Addendum K and Procedure XV. The 

primary substantive changes of this 

proposed rule change are in Rule 9, 

Addendum D, and Addendum K with a 

conforming change to Procedure XV. 

Technical clean-up changes are also 

being made in each. 

The delivering member must attach to 

each envelope, a credit list (in 

duplicate), which reflects the total 

money value, if any, of the envelope’s 

contents. If after receipt of the envelope 

NSCC determines that the envelope is 

properly listed on the accompanying 

credit list, NSCC stamps the duplicate 

credit list and makes it immediately 

available to the delivering member’s 

representative. An envelope listed on 

the credit list shall be deemed to have 

been accepted by NSCC when the 

duplicate credit list is stamped. 

As a related feature of ESS, the 

payment shown on the credit list is 

processed as part of the members’ daily 

end of day net money settlement 

obligations in reliance on the agreement 

between the delivering and receiving 

parties outside NSCC that the amount 

listed is the contract amount. 

In order to protect the NSCC against 

the risk of member non-payment NSCC 

is amending Rule 9 and related 

provisions so that NSCC does not 

guarantee the payment obligation to the 

receiving member in an ESS delivery 

and so that the credits and debits of the 

payment amount of an envelope may be 

reversed. The payment reversal may be 

effected by NSCC even if the receiving 

member has taken possession of the 

envelope; however, if the receiving 

member has not yet taken possession of 

the envelope at the time of a payment 

reversal, NSCC will return the envelope 

to the delivering member. Any dispute 

between the delivering and receiving 

members must be resolved by them 

outside the facilities of the NSCC. 

Changes to Rule 9 affirmatively 

provide that NSCC does not guarantee 

the payment obligation in ESS and that 

payment credits and debits may be 

reversed. Technical and conforming 

changes clarify the concepts of 

delivering and receiving members and 

that settlement processing is subject not 

only to the rights of NSCC in Section 2 

of Rule 12 but also to the new reversal 

provision in Section 4 of Rule 9. 

To conform to amended Rule 9, 

Addendum D is similarly being 

amended to state that ESS is not 

guaranteed and that payment credits 

and debits may be reversed as provided 

in Rule 9. Language making it clear that 

settlement processing is subject to the 

rights of NSCC under new Section 4 of 

Rule 9 and Section 2 of Rule 12, was 

also carried over to Addendum D. 

Because Addendum D also covers other 

services for which no change is made by 

this filing, certain of the revisions to 

Addendum D clarify that the revisions 

are limited to ESS. Historical statements 

in Addendum D are being eliminated. 

The change to Addendum K is to 

delete the provision whereby NSCC 

provided a guarantee for ESS and 

thereby deemed ESS to be a ‘‘System’’ 

within the meaning of Rule 4. Without 

the guarantee, ESS is not considered to 

be a ‘‘System.’’ Consistent with the 

change, Procedure XV is modified so 

that when the clearing fund component 

titled ‘‘For Other Transactions’’ (that is, 

for other than CNS transactions and 

balance order transactions) is computed, 

ESS will not be included. 

In considering the elimination of the 

guarantee, NSCC surveyed selected 

members and learned that they did not 

consider it vital that NSCC be 

responsible for their ESS payment 

obligations and that they do not rely on 

the NSCC to guarantee such payments. 

However, these members expressed a 

strong desire for NSCC to maintain the 

centralized delivery service. NSCC 

designed the proposed rule changes to 

meet the expressed need of certain 

members while reducing risk to NSCC 

and its members generally. NSCC 

believes that it is shifting the burden of 

risk to those that should bear it and to 

outside NSCC’s facilities. 

III. Discussion 

The Commission finds that the 

proposed rule change is consistent with 

the requirements of the Act 4 and the 

rules and regulations thereunder 

applicable to NSCC. In particular, the 

Commission believes that by amending 

its rules, NSCC’s exposure to potential 

losses from member defaults, 

insolvencies, mistakes, and fraud will 

be reduced and the risk of such 

potential losses will be appropriately 

shifted to the contracting members in an 

ESS transaction outside NSCC. The 

proposal is therefore consistent with the 

requirements of Section 17A(b)(3)(F),5

which requires, among other things, that 

the rules of a clearing agency are 

designed to promote the prompt and 

accurate clearance and settlement of 

securities transactions. 

IV. Conclusion 

On the basis of the foregoing, the 

Commission finds that the proposal is 

consistent with the requirements of the 

Act and in particular with the 

requirements of Section 17A of the Act 6

and the rules and regulations 

thereunder. 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,7 that the 

proposed rule change (File No. SR– 

NSCC–2010–01) be, and hereby is, 

approved.8

For the Commission by the Division of 

Trading and Markets, pursuant to delegated 

authority.9

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–4738 Filed 3–5–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–61612; File No. SR–NYSE– 

2010–11] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change by New York 

Stock Exchange LLC Amending NYSE 

Rule 123C(9)(a)(1) To Extend the 

Operation of the Pilot Operating 

Pursuant the Rule Until the Earlier of 

Securities and Exchange Commission 

Approval To Make Such Pilot 

Permanent or June 1, 2010 

March 1, 2010. 

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

Securities Exchange Act of 1934 (the 

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

notice is hereby given that, on February 

24, 2010, 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 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 amend 

NYSE Rule 123C(9)(a)(1) to extend the 

operation of the pilot operating 

pursuant the Rule until the earlier of 

Securities and Exchange Commission 

approval to make such pilot permanent 

or June 1, 2010. The text of the proposed 


srobinson on DSKHWCL6B1PROD with NOTICES
10544 Federal Register / Vol. 75, No. 44 / Monday, March 8, 2010 / Notices 

3See Securities Exchange Release No. 61233 

(December 23, 2009), 74 FR 69169 (December 30, 

2009) (SR–NYSE–2009–111) (Modify the closing 

process and renumbering 123C(8) to 123C(9)). The 

Exchange anticipates operation of these changes to 

commence on or about March 1, 2010. 

4See Securities Exchange Act Release No. 59755 

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

NYSE–2009–18). 

5The Exchange notes that parallel changes are 

proposed to be made to the rules of NYSE Amex 

LLC. See SR–NYSEAmex–2010–15. 

6See Securities and Exchange Act Release No. 

61264 (December 31, 2009), 75 FR 1107 (January 8, 

2010) (SR–NYSE–2009–131) (extending the 

operation of the pilot from December 31, 2009 to 

March 1, 2010). 7 15 U.S.C. 78f(b)(5). 

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 the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The New York Stock Exchange 

(‘‘NYSE’’ or the ‘‘Exchange’’) proposes to 

amend NYSE Rule 123C(9)(a)(1) 3 to 

extend the operation of the pilot 

operating pursuant the Rule until the 

earlier of Securities and Exchange 

Commission approval to make such 

pilot permanent or June 1, 2010. 

NYSE Rule 123C(9)(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 Imbalances Pilot’’ or ‘‘Pilot’’).4

Through this filing, NYSE proposes to 

extend the Pilot until the earlier of 

Securities and Exchange Commission 

approval to make such Pilot permanent 

or June 1, 2010.5

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 closing 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. The 

provisions of NYSE Rule 123C(9)(a)(1) 

operate as the Extreme Order Imbalance 

Pilot. 

As a condition of the approval to 

operate the Pilot, the Exchange 

committed to provide the Commission 

with information regarding: (i) How 

often a Rule 52 temporary suspension 

pursuant to the Pilot was invoked 

during the six months following its 

approval; and (ii) the Exchange’s 

determination as to how to proceed with 

technical modifications to reconfigure 

Exchange systems to accept orders 

electronically after 4 p.m. 

The Extreme Order Imbalance Pilot is 

scheduled to end operation on March 1, 

2010.6 The Exchange is currently 

preparing a rule filing seeking 

permission to make the provisions of 

the Pilot permanent with certain 

modifications but does not expect that 

filing to be completed and approved by 

the Commission before March 1, 2010. 

Proposal To Extend the Operation of the 

Extreme Order Imbalance Pilot 

The Exchange established the Extreme 

Order Imbalance Pilot to create a 

mechanism for ensuring a fair and 

orderly close when interest is received 

at or near the close that could negatively 

affect the closing transaction. The 

Exchange believes that this tool has 

proved very useful to resolve an extreme 

order imbalance that may result in a 

closing 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. 

As the Exchange has previously 

stated, NYSE Rule 123C(9) will be 

invoked to attract offsetting interest in 

rare circumstances where there exists an 

extreme imbalance at the close such that 

a DMM is unable to close the security 

without significantly dislocating the 

price. This is evidenced by the fact that 

during the course of the Pilot, the 

Exchange invoked the provisions of 

NYSE Rule 123C(9), including the 

provisions of the Extreme Order 

Imbalance Pilot pursuant to NYSE Rule 

123C(9)(a)(1), on four occasions. 

In addition, during the operation of 

the Pilot, the Exchange determined that 

it would not be as onerous as previously 

believed to modify Exchange systems to 

accept orders electronically after 4:00 

p.m. The Exchange has completed the 

system modifications and is now in the 

process of testing the modifications. The 

Exchange anticipates that its quality 

assurance review process will be 

completed by June 1, 2010. 

Given the above, the Exchange 

believes that provisions governing the 

Extreme Order Imbalance Pilot should 

be made permanent. Through this filing 

the Exchange seeks to extend the 

current operation of the Pilot in order to 

allow the Exchange to formally submit 

a filing to the Commission to convert 

the provisions governing the Pilot to 

permanent rules and complete the 

technological modifications required to 

accept orders electronically after 4 p.m. 

The Exchange therefore requests an 

extension from the current expiration 

date of March 1, 2010, until the earlier 

of Securities and Exchange Commission 

approval to make such Pilot permanent 

or June 1, 2010. 

2. Statutory Basis 

The basis under the Act for this 

proposed rule change is the requirement 

under Section 6(b)(5) 7 that an Exchange 

have rules that are designed 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 

that the instant filing is consistent with 

these principles. Specifically an 

extension will allow the Exchange to: (i) 

Prepare and submit a filing to make the 

provisions governing the Extreme Order 

Imbalance Pilot permanent; (ii) have 

such filing complete public notice and 

comment period; and (iii) complete the 

19b–4 approval process. The rule 

operates to protect investors and the 

public interest by ensuring that the 

closing price at the Exchange is not 

significantly dislocated from the last 

sale price by virtue of an extreme order 

imbalance at or near the close. 

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 

The Exchange has filed the proposed 

rule change pursuant to Section 


srobinson on DSKHWCL6B1PROD with NOTICES
Federal Register / Vol. 75, No. 44 / Monday, March 8, 2010 / Notices 10545 

8 15 U.S.C. 78s(b)(3)(A)(iii). 

9 17 CFR 240.19b–4(f)(6). 

10 17 CFR 240.19b–4(f)(6)(iii). In addition, Rule 

19b–4(f)(6)(iii) requires the self-regulatory 

organization to give the Commission 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. 

NYSE has satisfied this requirement. 

11 17 CFR 240.19b–4(f)(6)(iii). 

12For purposes only of waiving the operative 

delay for this proposal, the Commission has 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

15 U.S.C. 78c(f). 

13 15 U.S.C. 78s(b)(3)(C). 

14The text of the proposed rule change is 

available on the Commission’s Web site at http:// 

www.sec.gov/rules/sro.shtml. 15 17 CFR 200.30–3(a)(12). 

19(b)(3)(A)(iii) of the Act 8 and Rule 

19b–4(f)(6) thereunder.9 Because the 

proposed rule change does not: (i) 

Significantly affect the protection of 

investors or the public interest; (ii) 

impose any significant burden on 

competition; and (iii) become operative 

prior to 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, the 

proposed rule change has become 

effective pursuant to Section 19(b)(3)(A) 

of the Act and Rule 19b–4(f)(6)(iii) 

thereunder. 

A proposed rule change filed under 

Rule 19b–4(f)(6) normally does not 

become operative prior to 30 days after 

the date of the filing.10 However, 

pursuant to Rule 19b4(f)(6)(iii), the 

Commission may designate a shorter 

time if such action is consistent with the 

protection of investors and the public 

interest. The Exchange requested that 

the Commission waive the 30-day 

operative delay, as specified in Rule 

19b–4(f)(6)(iii),11 which would make the 

rule change operative immediately. The 

Exchange believes that continuation of 

the Pilot does not burden competition 

and would operate to protect investors 

and the public interest by ensuring that 

the closing price at the Exchange is not 

significantly dislocated from the last 

sale price by virtue of an extreme order 

imbalance at or near the close. 

The Commission believes that 

waiving the 30-day operative delay is 

consistent with the protection of 

investors and the public interest 

because it would allow the Pilot to 

continue without interruption while the 

Exchange works towards submitting a 

separate proposal to make the Pilot 

permanent. Accordingly, the 

Commission designates the proposed 

rule change as operative upon filing 

with the Commission.12

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.13

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–2010–11 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–2010–11. 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,14 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 the 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–2010–11 and should 

be submitted on or before March 29, 

2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.15

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–4736 Filed 3–5–10; 8:45 am] 

BILLING CODE 8011–01–P 

SOCIAL SECURITY ADMINISTRATION 

[Docket No. SSA–2010–0011] 

Occupational Information Development 

Advisory Panel Meeting 

AGENCY: Social Security Administration 

(SSA). 

ACTION: Notice of Upcoming Quarterly 

Panel Meeting. 

DATES: March 24, 2010, 8:30 a.m.–3 p.m. 

(CST); March 25, 2010, 8:30 a.m.–11:30 

a.m. (CST). 

Location: Sheraton St. Louis City 

Center. 

ADDRESS: 400 South 14th Street, St. 

Louis, MO 63103. 

By Teleconference: 1–866–283–8275. 

SUPPLEMENTARY INFORMATION: Type of 

meeting: The meeting is open to the 

public. 

Purpose: This discretionary Panel, 

established under the Federal Advisory 

Committee Act of 1972, as amended, 

shall report to the Commissioner of 

Social Security. The Panel will provide 

independent advice and 

recommendations on plans and 

activities to replace the Dictionary of 

Occupational Titles used in the Social 

Security Administration’s (SSA) 

disability determination process. The 

Panel will advise the Agency on 

creating an occupational information 

system tailored specifically for SSA’s 

disability programs and adjudicative 

needs. Advice and recommendations 

will relate to SSA’s disability programs 

in the following areas: Medical and 

vocational analysis of disability claims; 

occupational analysis, including 

definitions, ratings and capture of 

physical and mental/cognitive demands 

of work and other occupational 

information critical to SSA disability 

programs; data collection; use of 

occupational information in SSA’s 

disability programs; and any other 

area(s) that would enable SSA to 

develop an occupational information 

system suited to its disability programs 

and improve the medical-vocational 

adjudication policies and processes. 


srobinson on DSKHWCL6B1PROD with NOTICES