Federal Register / Vol. 74, No. 153 / Tuesday, August 11, 2009 / Notices 40271 

11 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 Commission notes that the Exchange 

inadvertently marked certain portions of the rule 

text incorrectly. Specifically, in paragraph (III)(B)(1) 

of Rule 103B the Exchange failed to indicate the 

deletion of a comma after ‘‘his or her designee’’and 

failed to mark ‘‘; (b)’’ as new text. In addition, the 

Exchange marked as new text one letter in a 

sentence being deleted from paragraph (III)(B)(1) of 

Rule 103B. 

5See SR–NYSE–2009–74. 

6See Securities Exchange Act Release No. 58673 

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

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

(approving the Merger). 

7 15 U.S.C. 78f. 

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–2009–78 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–2009–78. 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 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–2009–78 and should 

be submitted on or before September 1, 

2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–19183 Filed 8–10–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60425; File No. SR– 

NYSEAMEX–2009–49] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change by NYSE 

Amex LLC Amending NYSE Amex 

Equities Rule 103B to Modify the 

Composition of the Exchange 

Selection Panel; and Prohibit any Ex 

Parte Communications During and 

Regarding the Selection Process 

between the DMM Units and the 

Individuals Serving on the Exchange 

Selection Panel 

August 4, 2009. 

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 July 27, 

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 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 amend 

NYSE Amex Equities Rule 103B 

(‘‘Security Allocation and 

Reallocation’’) to: (1) Modify the 

composition of the Exchange Selection 

Panel; and (2) prohibit any ex parte 

communications during and regarding 

the selection process between the DMM 

units and the individuals serving on the 

Exchange Selection Panel. The text of 

the proposed rule change is available at 

the Exchange, the Commission’s Public 

Reference Room, and http:// 

www.nyse.com.4

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 

‘‘Exchange’’), formerly the American 

Stock Exchange LLC, proposes to amend 

NYSE Amex Equities Rule 103B 

(‘‘Security Allocation and 

Reallocation’’) to: (1) Modify the 

composition of the Exchange Selection 

Panel; and (2) Prohibit any ex parte 

communications during and regarding 

the selection process between the DMM 

units and the individuals serving on the 

Exchange Selection Panel. 

The Exchange notes that parallel 

changes are proposed to be made to the 

rules of the New York Stock Exchange 

LLC (‘‘NYSE’’).5

Background 

As described more fully in a related 

rule filing,6 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 

(‘‘Amex’’), a subsidiary of AMC, became 

a subsidiary of NYSE Euronext called 

NYSE Alternext US LLC, and continues 

to operate as a national securities 

exchange registered under Section 6 of 

the Securities Exchange Act of 1934, as 

amended (the ‘‘Act’’).7 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 


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40272 Federal Register / Vol. 74, No. 153 / Tuesday, August 11, 2009 / Notices 

8See Securities Exchange Act Release No. 58705 

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

(SR–Amex 2008–63) (approving the Equities 

Relocation). 

9See Securities Exchange Act Release No. 58705 

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

(SR–Amex 2008–63) (approving the Equities 

Relocation); Securities Exchange Act Release No. 

58833 (October 22, 2008), 73 FR 64642 (October 30, 

2008) (SR–NYSE–2008–106) and Securities 

Exchange Act Release No. 58839 (October 23, 2008), 

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

2008–03) (together, implementing the Bonds 

Relocation); Securities Exchange Act Release No. 

59022 (November 26, 2008), 73 FR 73683 

(December 3, 2008) (SR–NYSEALTR–2008–10) 

(adopting amendments to NYSE Alternext Equities 

Rules to track changes to corresponding NYSE 

Rules); Securities Exchange Act Release No. 59027 

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

2008) (SR–NYSEALTR–2008–11) (adopting 

amendments to Rule 62—NYSE Alternext Equities 

to track changes to corresponding NYSE Rule 62). 10 15 U.S.C. 78f(b)(5). 

11 15 U.S.C. 78s(b)(3)(A). 

12 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6)(iii) requires a self-regulatory organization to 

provide the Commission with 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 fulfilled this requirement. 

13 Id. 

14 17 CFR 240.19b–4(f)(6)(iii). 

15 Id. 

Systems’’) are operated by the NYSE on 

behalf of the Exchange.8

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.9 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. 

NYSE Amex Equities Rule 103B— 

Allocation Process 

Currently, pursuant to NYSE Amex 

Equities Rule 103B, an issuer may select 

the DMM unit that will be assigned its 

security or delegate the selection of the 

DMM unit to the Exchange. If the issuer 

authorizes the Exchange to select the 

DMM unit to trade its security, an 

Exchange Selection Panel (the ‘‘ESP’’ or 

the ‘‘Panel’’) is convened to select the 

DMM unit based on a review of all 

information that would be available to 

the issuer. The Panel is comprised of 

three members of the Exchange’s Senior 

Management, as designated by the Chief 

Executive Officer (‘‘CEO’’) of the 

Exchange or his or her designee, one 

non-DMM Executive Floor Governor 

(‘‘EFG’’) and two non-DMM Floor 

Governors (‘‘FGs’’). The non-DMM EFG 

and non-DMM FGs are designated on a 

rotating basis. The Panel’s decision is 

made by majority vote. In the event of 

a tie, the CEO of the Exchange or his/ 

her designee makes the final decision. 

The Exchange then informs the issuer of 

the DMM unit selected by the Panel. 

Proposed Amendments 

The Exchange proposes to amend 

NYSE Amex Equities Rule 103B to 

modify the composition of the Panel in 

order to ensure consistent Floor 

participation in the selection process 

and minimize delays due to scheduling 

conflicts. 

The current composition of the Panel 

has proven difficult when scheduling 

the required participants within five 

days of the issuer’s request. The 

Exchange therefore seeks to amend 

NYSE Amex Equities Rule 103B to 

modify the representation on the Panel 

to include: (1) At least one member of 

the Exchange’s Senior Management; (2) 

any combination of two Exchange 

Senior Management or Exchange Floor 

Operations Staff, to be designated by the 

Executive Vice-President of Exchange 

Floor Operations or his/her designee; 

and (3) any combination of three nonDMM EFGs or non-DMM FGs for a total 

of six members. 

Finally, to reinforce the integrity and 

objectivity of the ESP selection process, 

the Exchange proposes to amend NYSE 

Amex Equities Rule 103B to explicitly 

prohibit any communications regarding 

the selection process between the 

Panelists and the DMM units. The 

Exchange proposes to have 

communication regarding the selection 

process cease from the time the issuer 

delegates the selection responsibility to 

the Exchange until the Panel selects the 

DMM unit to trade the issuer’s security. 

2. Statutory Basis 

The basis under the Act for the 

proposed rule change is the requirement 

under Section 6(b)(5),10 which requires 

that an exchange have rules that are 

designed to foster cooperation and 

coordination with persons engaged in 

regulating, clearing, settling, processing 

information with respect to, and 

facilitating transactions in securities, 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 proposed amendments are 

consistent with these objectives. The 

amendments sought herein seek to 

streamline and facilitate the process of 

assigning securities to DMM units by 

allowing for more flexibility in 

composing the Panel which ultimately 

facilitates and expedites the allocation 

and ultimately the trading of securities 

on the Exchange. Furthermore, the 

proposed amendment to prohibit 

communications between the Panel and 

the DMM units preserves the integrity 

and impartiality of the allocation 

process and therefore protects 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: (1) Does not significantly affect 

the protection of investors or the public 

interest; (2) does not impose any 

significant burden on competition; and 

(3) by its terms does not become 

operative for 30 days after the date of 

this filing, 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) 11 of the Act and 

Rule 19b–4(f)(6) thereunder.12

A proposed rule change filed under 

Rule 19b–4(f)(6) 13 normally may not 

become operative prior to 30 days after 

the date of filing. However, Rule 19b– 

4(f)(6)(iii) 14 permits the Commission to 

designate a shorter time if such action 

is consistent with the protection of 

investors and the public interest. The 

Exchange requests that the Commission 

waive the 30-day operative delay, as 

specified in Rule 19b–4(f)(6)(iii),15

which would make the rule change 

operative upon filing. The Commission 

believes that waiving the 30-day 

operative delay is consistent with the 

protection of investors and the public 

interest because such waiver will allow 

the Exchange to immediately streamline 

the process of allocating securities to 


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Federal Register / Vol. 74, No. 153 / Tuesday, August 11, 2009 / Notices 40273 

16For 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). 

17 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. 

4See SR–NYSE–2009–71. 

5NYSE 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 (‘‘Amex’’), a subsidiary of AMC, 

became a subsidiary of NYSE Euronext called NYSE 

Alternext US LLC. Securities Exchange Act Release 

No. 58673 (September 29, 2008), 73 FR 57707 

(October 3, 2008) (SR–NYSE–2008–60 and SR– 

Amex–2008–62) (approving the Merger). 

Subsequently NYSE Alternext US LLC was renamed 

NYSE Amex LLC and continues to operate as a 

national securities exchange registered under 

Section 6 of the Securities Exchange Act of 1934, 

as amended (the ‘‘Act’’). NYSE Alternext US LLC 

was subsequently renamed NYSE Amex LLC. See 

Securities Exchange Act Release No. 59575 (March 

13, 2009), 74 FR 11803 (March 19, 2009) (SR– 

NYSEALTR–2009–24). 

DMM units. In addition, by prohibiting 

communications regarding the selection 

process between members of the Panel 

and DMM units, the Exchange will be 

able to immediately reinforce 

impartiality and fairness during the 

selection process.16 Accordingly, the 

Commission designates the proposed 

rule change operative upon filing with 

the Commission. 

At any time within 60 days of the 

filing of such 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–2009–49 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–2009–49. 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 SR– 

NYSEAMEX–2009–49 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. E9–19120 Filed 8–10–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60428; File No. SR– 

NYSEAmex–2009–46] 

Self-Regulatory Organizations; Notice 

of Filing of Proposed Rule Change by 

NYSE Amex LLC Amending NYSE 

Amex Equities Rule 1000 To Allow 

Exchange Systems to Access CCS 

Interest to Partially Fill an Incoming 

Limit Order 

August 4, 2009. 

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 July 20, 

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 

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 1000 to allow 

Exchange systems to access CCS interest 

to partially fill an incoming limit order. 

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 

Exchange 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 Amex LLC (‘‘NYSE Amex’’ or 

the ‘‘Exchange’’), formerly the American 

Stock Exchange LLC, proposes to amend 

NYSE Amex Equities Rule 1000 to allow 

Exchange systems to access CCS interest 

to partially fill an incoming limit order. 

The Exchange notes that parallel 

changes are proposed to be made to the 

rules of New York Stock Exchange 

LLC.4

Background 

NYSE Amex adopted sweeping 

changes to its market rules and 

execution technology designed to 

improve execution quality on the 

Exchange as a result of its merger with 

the New York Stock Exchange LLC.5

Among the elements of the adopted 

enhanced Exchange market model, 

NYSE Amex eliminated the function of 

specialists on the Exchange creating a 


sroberts on DSKD5P82C1PROD with NOTICES