40278 Federal Register / Vol. 74, No. 153 / Tuesday, August 11, 2009 / Notices 

19 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3 17 CFR 240.19b–4(f)(6). 

4The current FINRA rulebook consists of (1) 

FINRA Rules; (2) NASD Rules; and (3) rules 

incorporated from NYSE (‘‘Incorporated NYSE 

Rules’’) (together, the NASD Rules and Incorporated 

NYSE Rules are referred to as the ‘‘Transitional 

Rulebook’’). While the NASD Rules generally apply 

to all FINRA members, the Incorporated NYSE 

Rules apply only to those members of FINRA that 

are also members of the NYSE (‘‘Dual Members’’). 

The FINRA Rules apply to all FINRA members, 

unless such rules have a more limited application 

by their terms. For more information about the 

rulebook consolidation process, see FINRA 

Information Notice, March 12, 2008 (Rulebook 

Consolidation Process). 

5See Securities Exchange Act Release No. 60216 

(July 1, 2009), 74 FR 33283 (July 10, 2009) (Notice 

of Filing and Immediate Effectiveness of SR–NYSE– 

2009–59). 

6 Incorporated NYSE Rule 12 defines the term 

‘‘business day.’’ 

7 Incorporated NYSE Rule 282 sets forth buy-in 

procedures. 

8See supra note 5. 

9See Securities Exchange Act Release No. 59446 

(February 25, 2009), 74 FR 9323 (March 3, 2009) 

(Notice of Filing and Immediate Effectiveness of 

SR–NYSE–2009–17). 

10Pursuant to Rule 17d–2 under the Exchange 

Act, NASD, NYSE, and NYSE Regulation, Inc., 

entered into an agreement (‘‘Agreement’’) to reduce 

regulatory duplication for firms that are Dual 

Members by allocating certain regulatory 

responsibilities for selected NYSE rules from NYSE 

Regulation to FINRA. The Agreement includes a list 

of all those rules (‘‘Common Rules’’) for which 

FINRA has assumed examination, enforcement and 

surveillance responsibilities under the Agreement 

relating to compliance by Dual Members to the 

extent that such responsibilities involve member 

firm regulation. See Securities Exchange Act 

Release No. 56148 (July 26, 2007), 72 FR 42146 

(August 1, 2007) (Notice of Filing and Order 

Approving and Declaring Effective a Plan for the 

Allocation of Regulatory Responsibilities). The 

Common Rules are the same NYSE rules that 

FINRA has incorporated into its rulebook. See 

Securities Exchange Act Release No. 56147 (July 26, 

2007), 72 FR 42166 (August 1, 2007) (Notice of 

Filing and Order Granting Accelerated Approval of 

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 am and 3 pm. 

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–2009–46 and 

should be submitted on or before 

September 1, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.19

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–19140 Filed 8–10–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60432; File No. SR–FINRA– 

2009–053] 

Self-Regulatory Organizations; 

Financial Industry Regulatory 

Authority, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend Incorporated 

NYSE Rules 12 and 282 To Conform to 

Amendments Made by NYSE 

August 4, 2009. 

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 July 30, 

2009, Financial Industry Regulatory 

Authority, Inc. (‘‘FINRA’’) filed with the 

Securities and Exchange Commission 

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

rule change as described in Items I and 

II below, which Items have been 

prepared by FINRA. FINRA has 

designated the proposed rule change as 

constituting a ‘‘non-controversial’’ rule 

change under paragraph (f)(6) of Rule 

19b–4 under the Act,3 which renders 

the proposal effective upon filing with 

the Commission. 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 

FINRA is proposing to amend 

Incorporated NYSE Rules 12 (‘‘Business 

Day’’) and 282 (Buy-in Procedures) 4 to 

conform to rule changes by the New 

York Stock Exchange LLC (‘‘NYSE’’) to 

its versions of Rules 12 and 282.5

The text of the proposed rule change 

is available on FINRA’s Web site at 

http://www.finra.org, at the principal 

office of FINRA 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, 

FINRA 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 these statements 

may be examined at the places specified 

in Item IV below. FINRA 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 

FINRA is proposing changes to 

Incorporated NYSE Rules 12 6 and 282 7

to conform these rules to amendments 

made by NYSE to allow customers to 

transmit orders for execution on the 

NYSE with the settlement instructions 

of ‘‘cash’’, ‘‘next day’’ and ‘‘seller’s 

option’’ (collectively referred to herein 

as ‘‘non-regular way settlement’’) 

directly to a Floor broker for manual 

execution. 

According to the NYSE filing,8 after 

adopting amendments in March 2009 

requiring that all orders submitted to the 

NYSE be submitted for regular way 

settlement (i.e., settlement on the third 

business day following trade date),9 the 

NYSE recognized that there was a 

continuing need for the availability of 

orders with non-regular way settlement 

instructions. NYSE customers have 

expressed that certain trading strategies 

and/or expiration of certain trading 

instruments (e.g., rights and warrants) 

require the ability to submit orders to 

the NYSE that contain instructions for 

execution with non-regular way 

settlement. To accommodate the needs 

of its customers, the NYSE adopted 

NYSE Rule 14 (Non-Regular Way 

Settlement Instructions for Orders) to 

allow customers to directly transmit an 

order containing instructions for cash, 

next day and seller’s option settlement 

to a Floor broker for representation in 

the trading crowd. In addition, the 

NYSE added Rule 14 references to 

several NYSE rules that relate in some 

way to these settlement instructions. 

Under the NYSE filing, references to 

proposed NYSE Rule 14 (Non-Regular 

Way Settlement Instructions for Orders) 

and non-regular way settlement 

instructions were added to NYSE Rule 

12 (‘‘Business Day’’), and specific 

provisions related to orders submitted 

with cash settlement instructions were 

added to NYSE Rule 282 (Buy-in 

Procedures). 

FINRA is making conforming changes 

to Incorporated NYSE Rules 12 and 282 

to ensure consistency with NYSE’s 

versions of Rules 12 and 282.10


sroberts on DSKD5P82C1PROD with NOTICES
Federal Register / Vol. 74, No. 153 / Tuesday, August 11, 2009 / Notices 40279 

Proposed Rule Change to Incorporate Certain NYSE 

Rules Relating to Member Firm Conduct; File No. 

SR–NASD–2007–054). 

11 15 U.S.C. 78o–3(b)(6). 

12 15 U.S.C. 78s(b)(3)(A). 

13 17 CFR 240.19b–4(f)(6). 

14 Id. 

15 17 CFR 240.19b–4(f)(6)(iii). In addition, Rule 

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

organization to give the Commission written notice 

of its intent to file 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. FINRA has satisfied 

this requirement. 

16For purposes only of waiving the 30-day 

operative delay of the proposal, the Commission 

has considered the proposed rule’s impact on 

efficiency, competition and capital formation. 15 

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

17 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

FINRA has filed the proposed rule 

change for immediate effectiveness and 

has requested that the SEC waive the 

requirement that the proposed rule 

change not become operative for 30 days 

after the date of the filing, such that 

FINRA can implement the proposed 

rule change immediately. 

2. Statutory Basis 

FINRA believes that the proposed rule 

change is consistent with the provisions 

of Section 15A(b)(6) of the Act,11 which 

requires, among other things, that 

FINRA rules must be designed to 

prevent fraudulent and manipulative 

acts and practices, to promote just and 

equitable principles of trade, and, in 

general, to protect investors and the 

public interest. FINRA believes that the 

proposed rule change is necessary and 

appropriate to restore the ability of 

NYSE market participants to enter 

orders with other than ‘‘regular way’’ 

settlement instructions and maintain 

consistency with the NYSE’s 

amendments to its Rules 12 and 282. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

FINRA does not believe that the 

proposed rule change will result in 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 

Written comments were neither 

solicited nor received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

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 for 30 days after the date of 

the filing, 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) 12 of the Act and Rule 19b– 

4(f)(6) thereunder.13

A proposed rule change filed under 

Rule 19b–4(f)(6) normally does not 

become operative until 30 days after the 

date of filing.14 However, Rule 19b– 

4(f)(6)(iii) 15 permits the Commission to 

designate a shorter time if such action 

is consistent with the protection of 

investors and the public interest. FINRA 

has requested that the Commission 

waive the 30-day operative delay so that 

the proposed rule change may become 

operative immediately. Specifically, 

FINRA states that waiving the 30-day 

operative delay will allow FINRA’s 

Incorporated NYSE Rules to maintain 

their status as Common Rules under the 

Agreement. Accordingly, the 

Commission believes that allowing the 

proposed rule change to become 

operative immediately is consistent 

with the protection of investors and the 

public interest, because it will enable 

FINRA to maintain consistency between 

its rules and NYSE’s rules for purposes 

of the Agreement.16

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–FINRA–2009–053 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–FINRA–2009–053. 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 such filing also will be 

available for inspection and copying at 

the principal office of FINRA. 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–FINRA–2009–053 and 

should be submitted on or before 

September 1, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.17

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–19142 Filed 8–10–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60430; File No. SR– 

NASDAQ–2009–072] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Clarify Fee 

Schedule for Members Using the 

NASDAQ Market Center 

August 4, 2009. 

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

Securities Exchange Act of 1934 

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


sroberts on DSKD5P82C1PROD with NOTICES