10530 Federal Register / Vol. 75, No. 44 / Monday, March 8, 2010 / Notices 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Release No. 61244 

(December 28, 2009), 75 FR 479 (January 5, 2010) 

(SR–NYSEAmex–2009–81) (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– 

NYSEALTR–2009–15). 5The Exchange notes that parallel changes are 

proposed to be made to the rules of New York Stock 

Exchange LLC. See SR–NYSE–2010–11. 6See Securities and Exchange Act Release No. 

61265 (December 31, 2009), 75 FR 1094 (January 8, 

facilitate dialogue from industry 

participants. 

The respondents to the questionnaire 

are Securities Law Practitioners, 

Securities Law Professors and Securities 

Industry Participants. 

The total estimated reporting burden 

of the questionnaire is approximately 

twenty-two and a half (22.5) hours semiannually. It is estimated that it will take 

each respondent approximately thirty 

(30) minutes to complete the 

questionnaire. Assuming that all fortyfive (45) individuals respond, the total 

estimated burden will be twenty-two 

and a half (22.5) hours semi-annually. 

This was calculated by multiplying the 

total number of respondents times how 

long it is estimated to take to complete 

the questionnaire (45 respondents × 30 

minutes = 22 hours and 30 minutes). 

Since the information collection is 

intended to be sent out semi-annually, 

the total yearly burden will be forty-five 

hours (45), totaling one (1) hour per 

respondent annually. 

Written comments are invited on: (a) 

Whether the proposed collection of 

information is necessary for the proper 

performance of the functions of the 

agency, including whether the 

information will have practical utility; 

(b) the accuracy of the agency’s estimate 

of the burden of the collection of 

information; (c) ways to enhance the 

quality, utility, and clarity of the 

information collected; and (d) ways to 

minimize the burden of the collection of 

information on respondents, including 

through the use of automated collection 

techniques or other forms of information 

technology. Consideration will be given 

to comments and suggestions submitted 

in writing within 60 days of this 

publication. 

Please direct your written comments 

to Charles Boucher, Director/Chief 

Information Officer, Securities and 

Exchange Commission, C/O Shirley 

Martinson, 6432 General Green Way, 

Alexandria, Virginia 22312 or send an 

e-mail to: PRA_Mailbox@sec.gov. 

March 1, 2010. 

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–4741 Filed 3–5–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–61611; File No. SR– 

NYSEAmex–2010–15] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change by NYSE 

Amex LLC Amending NYSE Amex 

Equities 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, NYSE Amex LLC (the 

‘‘Exchange’’ or ‘‘NYSE Amex’’) 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 Amex Equities Rule 123C(8)(a)(1) 

to extend the operation of the pilot to 

temporarily suspend certain NYSE 

Amex Equities Rule requirements 

relating to the closing of securities on 

the Exchange until the earlier of 

Securities and Exchange Commission 

approval to make such pilot permanent 

or March 1, 2010. 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 the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

NYSE Amex LLC (‘‘NYSE Amex’’ or 

the ‘‘Exchange’’), formerly the American 

Stock Exchange LLC, proposes to amend 

NYSE Amex Equities 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 Amex Equities 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 

Amex 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 Amex Equities Rule 

123C(9)(a)(1), the Exchange may 

suspend NYSE Amex Equities 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 Amex Equities 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 


srobinson on DSKHWCL6B1PROD with NOTICES
Federal Register / Vol. 75, No. 44 / Monday, March 8, 2010 / Notices 10531 

2010) (SR–NYSEAmex–2009–96) (extending the 

operation of the pilot from December 31, 2009 to 

March 1, 2010). 

7 15 U.S.C. 78f(b)(5). 

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 Amex 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). 

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 Amex Equities 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 Amex 

Equities Rule 123C(9), including the 

provisions of the Extreme Order 

Imbalance Pilot pursuant to NYSE 

Amex Equities Rule 123C(9)(a)(1), in 

only two securities on June 26, 2009, the 

date of the annual rebalancing of Russell 

Indexes. 

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 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 

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: 


srobinson on DSKHWCL6B1PROD with NOTICES
10532 Federal Register / Vol. 75, No. 44 / Monday, March 8, 2010 / Notices 

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). 

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

2 17 CFR 240.19b–4. 

3Market Makers include all Specialists, eSpecialists, Non-Directed Market Makers and 

Directed Market Makers. 

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–NYSEAmex–2010–15 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–NYSEAmex–2010–15. 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–NYSEAmex–2010–15 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. 2010–4735 Filed 3–5–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–61615; File No. SR– 

NYSEAmex–2010–10] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change by NYSE 

Amex, LLC Amending Its Fee Schedule 

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 

1, 2010, NYSE Amex LLC (‘‘NYSE 

Amex’’ or the ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(the ‘‘Commission’’) the proposed rule 

change as described in Items I, II, and 

III 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 its 

Schedule of Fees and Charges (the 

‘‘Schedule’’) effective February 1, 2010. 

The text of the proposed rule change is 

attached as Exhibit 5 to the 19b–4 form. 

A copy of this filing is available on the 

Exchange’s Web site at http:// 

www.nyse.com, at the Exchange’s 

principal office and at the Commission’s 

Public Reference Room. 

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 aspects of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

NYSE Amex proposes to make 

multiple changes to its Schedule 

effective February 1, 2010. A more 

detailed description of the proposed 

changes follows. 

Specialists, E-Specialists and DOMM 

Rights Fee: 

Presently we charge to Specialists, ESpecialists and Directed Order Market 

Makers, on a pro rata basis, a monthly 

rights fee that is based on a tiered scale 

according to how much Average Daily 

National Customer Volume was 

executed during a rolling 3 month 

period. Effective February 1, 2010, the 

Exchange will reduce the rights fee by 

50% in each tier as shown below. 

Average National Daily 

Customer Contracts 

per issue: 

Monthly base rate: 

0 to 2,000 ..................... [$150] $75 

2,001 to 5,000 .............. [$400] $200 

5,001 to 15,000 ............ [$750] $375 

15,001 to 100,000 ........ [$1,500] $750 

Over 100,000 ................ [$3,000] $1,500 

Non-Directed Market Maker Fee and 

Market Maker Fee Cap: 

The Exchange is also proposing to 

increase the per contract rate paid by 

Non-Directed Market Makers from $.17 

to $.18 per contract. Concurrently, the 

Exchange also proposes to introduce a 

fee cap for all Market Makers.3 The fee 

cap will be set at $250,000 per month 

plus an incremental rate of $.01 per 

contract for all Specialist, e-Specialist 

and Market Maker (both Directed and 

non-Directed) volume executed in 

excess of 2,500,000 contracts per month. 

For example, today a Non-Directed 

Market Maker who executes 3,000,000 

contracts in a given month would pay 

$510,000 (3,000,000 × $.17). The 

introduction of the fee change would 

result in the same Non-Directed Market 

Maker paying $255,000 (3,000,000 × 

$.18 = $540,000 which is then reduced 

to $250,000 plus 500,000 [incremental 

volume over 2,500,000] × $.01 = $5,000 

resulting in the monthly charge of 

$255,000). Specialist, e-Specialist, and 

Market Marker (both Directed and nonDirected) fees will be aggregated for 

purposes of the cap. The Exchange will 

exclude any fees or volume associated 

with a Strategy Trade (reversals and 

conversions, dividend spreads, box 

spreads, short stock interest spreads, 

merger spreads, and jelly rolls). Any 

fees or volume attributable to a Strategy 

Trade will not be counted towards 

either the $250,000 fee cap, or the 

volume threshold of 2,500,000 

contracts. All Royalty Fees will 


srobinson on DSKHWCL6B1PROD with NOTICES