39130 Federal Register / Vol. 74, No. 149 / Wednesday, August 5, 2009 / Notices 

18 15 U.S.C. 78f(b). 

19 15 U.S.C. 78f(b)(5). 

20 15 U.S.C. 78s(b)(3)(A). 

21 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. 

22For purposes only of waiving the 30-day 

operative delay of this proposal, the Commission 

has considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

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

23 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

with NYSE and FINRA to examine for 

compliance with the rule requirements 

for those firms that engage in riskless 

principal trading under Rule 92(c). 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Securities Exchange Act of 1934 

(the ‘‘Act’’),18 in general, and furthers 

the objectives of Section 6(b)(5) of the 

Act,19 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 proposed extension provides the 

Exchange, NYSE, and FINRA the time 

necessary to develop a harmonized rule 

concerning customer order protection 

that will enable member organizations 

to participate in the national market 

system without unnecessary 

impediments. 

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 does not: 

(i) Significantly affect the protection 

of investors or the public interest; 

(ii) Impose any significant burden on 

competition; and 

(iii) 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 20 and Rule 19b–4(f)(6) 

thereunder.21

The Exchange has requested the 

Commission to waive the 30-day 

operative delay so that the Exchange can 

extend the operative date of NYSE 

Equities Rule 92(c)(3) without 

interruption. The Commission hereby 

grants the Exchange’s request and 

believes such waiver is consistent with 

the protection of investors and the 

public interest.22 Accordingly, the 

Commission designates the proposed 

rule change operative upon filing with 

the Commission. 

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–NYSEAmex–2009–48 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–2009–48. 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 inspection and copying 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– 

NYSEAmex–2009–48 and should be 

submitted on or before August 26, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.23

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–18667 Filed 8–4–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60398; File No. 

NYSEAmex–2009–47] 

Self-Regulatory Organizations; NYSE 

Amex LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Amending NYSE Amex 

Disciplinary Rule 476A To Add Rule 

104(a)(1)(A)—NYSE Amex Equities To 

Its ‘‘List of Exchange Rule Violations 

and Fines Applicable Thereto’’ 

July 30, 2009. 

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 July 22, 

2009, 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, II, and 

III below, which Items have been 

substantially prepared by the selfregulatory organization. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons. 


srobinson on DSKHWCL6B1PROD with NOTICES
Federal Register / Vol. 74, No. 149 / Wednesday, August 5, 2009 / Notices 39131 

3New York Stock Exchange LLC (‘‘NYSE’’) has 

submitted a companion rule filing proposing 

corresponding amendments to NYSE Rule 476A. 

See SR–NYSE–2009–72 (formally submitted on July 

22, 2009). 

4See Securities Exchange Act Release No. 58673 

(September 29, 2008), 73 FR 57707 (October 3, 

2008) (SR–NYSE–2008–60 and SR–Amex 2008–62). 

5The Exchange changed its name to NYSE Amex 

in March 2009. See Securities Exchange Act Release 

No. 59575 (March 13, 2009), 74 FR 11803 (March 

19, 2009) (SR–NYSEALTR–2009–24). 

6 15 U.S.C. 78f. 

7See Securities Exchange Act Release No. 58705 

(October 1, 2008), 73 FR 58995 (October 8, 2008) 

(SR–Amex 2008–63). 

8See Securities Exchange Act Release No. 58705 

(October 1, 2008), 73 FR 58995 (October 8, 2008) 

(SR–Amex 2008–63); Securities Exchange Act 

Release No. 58833 (October 22, 2008), 73 FR 64642 

(October 30, 2008) (SR–NYSE–2008–106); 

Securities Exchange Act Release No. 58839 (October 

23, 2008), 73 FR 64645 (October 30, 2008) (SR– 

NYSEALTR–2008–03); Securities Exchange Act 

Release No. 59022 (November 26, 2008), 73 FR 

73683 (December 3, 2008) (SR–NYSEALTR–2008– 

10); and Securities Exchange Act Release No. 59027 

(November 28, 2008), 73 FR 73681 (December 3, 

2008) (SR–NYSEALTR–2008–11). 

9See Rule 104(f)(ii)–NYSE Amex Equities. 

10When a DMM sends an s-quote to establish a 

new best bid or best offer, the DMM’s s-quote may 

end up executing immediately against dark 

liquidity inside the spread rather than being quoted. 

Absent rule relief, the s-quote would not be counted 

toward the DMM Unit’s quoting requirement, even 

though the DMM’s intent was to add liquidity to the 

market, and even though the s-quote in fact resulted 

in an execution. To address this, the Exchange 

added a provision to Rule 104–NYSE Amex 

Equities that allows the Exchange to give credit to 

a DMM unit that did not meet its quoting 

requirement as a result of the continuous immediate 

execution of its s-quotes. 

11The Exchange’s current Minor Rule Violation 

Plan, NYSE Amex Disciplinary Rule 476A, is based 

on both NYSE Rule 476A, which was originally 

adopted by the NYSE and approved by the 

Commission in 1985, as well as legacy American 

Stock Exchange Rule 590, which was adopted by 

the Exchange’s predecessor and approved by the 

Commission in 1989. See Securities Exchange Act 

Release No. 34-[sic]21688 (January 25, 1985), 50 FR 

5025–01 (February 5, 1985) (approving NYSE Rule 

476A) and Securities Exchange Act Release No. 34– 

27543 (December 15, 1989), 54 FR 53223 (December 

27, 1989) (approving American Stock Exchange 

Rule 590). 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to amend 

NYSE Amex Disciplinary Rule 476A to 

add Rule 104(a)(1)(A)—NYSE Amex 

Equities to its ‘‘List of Exchange Rule 

Violations and Fines Applicable 

Thereto.’’ 3 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 

The Exchange proposes to amend 

NYSE Amex Disciplinary Rule 476A to 

add Rule 104(a)(1)(A)—NYSE Amex 

Equities to its ‘‘List of Exchange Rule 

Violations and Fines Applicable 

Thereto.’’ 

Background 

As described more fully in a related 

rule filing,4 NYSE Euronext acquired 

The Amex Membership Corporation 

(‘‘AMC’’) pursuant to an Agreement and 

Plan of Merger, dated January 17, 2008 

(the ‘‘Merger’’). In connection with the 

Merger, the Exchange’s predecessor, the 

American Stock Exchange LLC, a 

subsidiary of AMC, became a subsidiary 

of NYSE Euronext called NYSE 

Alternext US LLC,5 and continues to 

operate as a national securities exchange 

registered under Section 6 of the Act.6

The effective date of the Merger was 

October 1, 2008. 

In connection with the Merger, on 

December 1, 2008, the Exchange 

relocated all equities trading conducted 

on the Exchange legacy trading systems 

and facilities located at 86 Trinity Place, 

New York, New York, to trading systems 

and facilities located at 11 Wall Street, 

New York, New York (the ‘‘Equities 

Relocation’’). The Exchange’s equity 

trading systems and facilities at 11 Wall 

Street (the ‘‘NYSE Amex Trading 

Systems’’) are operated by the NYSE on 

behalf of the Exchange.7

As part of the Equities Relocation, 

NYSE Amex adopted NYSE Rules 1– 

1004, subject to such changes as 

necessary to apply the Rules to the 

Exchange, as the NYSE Amex Equities 

Rules to govern trading on the NYSE 

Amex Trading Systems.8 The NYSE 

Amex Equities Rules, which became 

operative on December 1, 2008, are 

substantially identical to the current 

NYSE Rules 1–1004 and the Exchange 

continues to update the NYSE Amex 

Equities Rules as necessary to conform 

with rule changes to corresponding 

NYSE Rules filed by the NYSE. 

Current Rules 104– and 103B– NYSE 

Amex Equities 

Current Rule 104–NYSE Amex 

Equities requires, inter alia, Designated 

Market Makers (‘‘DMMs’’) registered in 

one or more securities traded on the 

Exchange to engage in a course of 

dealings for their own account to assist 

in the maintenance of a fair and orderly 

market, insofar as reasonably 

practicable, by contributing liquidity 

when lack of price continuity and 

depth, or disparity between supply and 

demand, exists or is reasonably to be 

anticipated.9 This includes an 

affirmative obligation to provide quotes 

at the National Best Bid or Offer a 

minimum percentage of the trading day 

(‘‘Affirmative Quote Obligation’’). 

The DMMs’ Affirmative Quote 

Obligation is set forth in Rule 

104(a)(1)(A)–NYSE Amex Equities. 

Section (a)(1)(A) of Rule 104 requires 

DMMs to maintain a bid or an offer at 

the National Best Bid and National Best 

Offer (‘‘inside’’) at least 10% of the 

trading day for securities in which the 

DMM unit is registered with an average 

daily volume on the Exchange of less 

than one million shares, and at least 5% 

for securities in which the DMM unit is 

registered with an average daily volume 

equal to or greater than one million 

shares. Time at the inside is calculated 

as the average percentage of time the 

DMM unit has a bid or offer at the 

inside. In calculating whether the DMM 

is meeting the 10% and 5% 

requirement, credit may be given for 

executions for the liquidity provided by 

the DMM.10 DMM Reserve or other 

hidden orders are not included in the 

inside quote calculations. 

Proposed Rule Change 

As noted above, the Exchange 

proposes to add Rule 104(a)(1)(A)– 

NYSE Amex Equities to its ‘‘List of 

Exchange Rule Violations and Fines 

Applicable Thereto.’’ 

Under the Exchange’s Minor Rule 

Violation Plan, NYSE Amex 

Disciplinary Rule 476A, the Exchange 

may impose a fine, not to exceed $5,000, 

on any member, member organization, 

allied member, approved person or 

registered or non-registered employee of 

a member or member organization for a 

minor violation of certain specified 

Exchange rules. Fines provide a 

meaningful sanction for rule violations 

when the initiation of a disciplinary 

procedure under Disciplinary Rule 476 

is unwarranted given the facts and 

circumstances of the violation, or when 

the violation calls for a stronger 

response informal discipline than an 

admonition letter.11


srobinson on DSKHWCL6B1PROD with NOTICES
39132 Federal Register / Vol. 74, No. 149 / Wednesday, August 5, 2009 / Notices 

12 15 U.S.C. 78f(b)(5). 

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

14 17 CFR 240.19b–4(f)(6). 15 17 CFR 200.30–3(a)(12). 

Currently, when a DMM fails to meet 

the affirmative quote obligations set 

forth in Rule 104(a)(1)(A)–NYSE Amex 

Equities, the Exchange’s only remedy is 

to bring a formal disciplinary 

proceeding pursuant to NYSE Amex 

Disciplinary Rule 476. This is the case 

whether or not the DMM has failed to 

meet its obligations once or many times 

and regardless of whether the DMM 

made a technical error or an intentional 

one. 

The Exchange believes that the 

current regulatory approach for dealing 

with DMM quoting obligations is too 

inflexible. The Exchange recognizes that 

DMMs may, for many reasons, fail to 

meet their affirmative quote obligations 

under Rule 104(a)(1)(A)–NYSE Amex 

Equities. In some circumstances, formal 

disciplinary measures in accordance 

with NYSE Amex Disciplinary Rule 476 

are warranted. However, in other 

instances such a proceeding may be 

unwarranted, and the Exchange is of the 

view that the addition of Rule 

104(a)(1)(A)–NYSE Amex Equities to the 

list of rule violations and fines under 

Disciplinary Rule 476A will provide a 

more flexible and appropriate tool to 

enforce potential failure by DMMs to 

adhere to the quoting requirements set 

forth in the Rule, while preserving the 

Exchange’s discretion to seek formal 

discipline under the appropriate 

circumstances. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule changes are consistent 

with, and further the objectives of, 

Section 6(b)(5) of the Act,12 in that they 

are 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 

proposed rule changes also further the 

objectives of Section 6(b)(6), in that they 

provide for appropriate discipline for 

violations of principles of the Act, the 

rules and regulations thereunder, and 

Exchange rules and regulations. 

The Exchange believes that the 

proposed rule changes will provide the 

Exchange with greater regulatory 

flexibility to enforce the DMM quoting 

requirements set forth in Rule 

104(a)(1)(A)–NYSE Amex Equities in a 

more informal manner while also 

preserving the Exchange’s discretion to 

seek formal discipline for more serious 

transgressions as warranted. 

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 13 and Rule 

19b–4(f)(6) thereunder.14 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. 

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 NYSEAmex-2009–47 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 NYSEAmex–2009–47. 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 inspection and copying 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 the filing will also be available 

for inspection and copying at the 

principal office of the self-regulatory 

organization. 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 

NYSEAmex–2009–47 and should be 

submitted on or before August 26, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.15

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–18668 Filed 8–4–09; 8:45 am] 

BILLING CODE 8010–01–P 

DEPARTMENT OF STATE 

[Public Notice 6720] 

Waiver of Restriction on Assistance to 

the Central Government of Tajikistan 

Pursuant to section 7088(c)(2) of the 

Department of State, Foreign 

Operations, and Related Programs 

Appropriations Act, 2009 (Division H, 

Pub. L. 111–8) (‘‘the Act’’), and 


srobinson on DSKHWCL6B1PROD with NOTICES