41478 Federal Register / Vol. 74, No. 157 / Monday, August 17, 2009 / Notices 

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

9 17 CFR 240.19b–4(f)(2). 

10 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. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing proposed rule change 

has been designated as a fee change 

pursuant to Section 19(b)(3)(A)(ii) of the 

Act 8 and Rule 19b–4(f)(2) thereunder,9

because it establishes or changes a due, 

fee or other charge imposed on members 

by the Exchange. Accordingly, the 

proposal is effective 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–BATS–2009–027 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–BATS–2009–027. 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 BATS. 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–BATS–2009–027 and 

should be submitted on or before 

September 8, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–19574 Filed 8–14–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60469; File No. SR– 

NYSEArca–2009–73] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Amending Rule 6.76A— 

Order Execution-OX and Proposing 

New Rule 6.88—Directed Orders 

August 10, 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 August 

5, 2009, NYSE Arca, Inc. (‘‘NYSE Arca’’ 

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 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 is proposing (i) new 

Rule 6.88 to describe Directed Orders, 

(ii) to amend Rule 6.76A to describe 

how Directed Orders are allocated upon 

execution, (iii) define Directed Order 

Market Makers, Order Flow Providers, 

and Directed Orders, and (iv) make 

other amendments to provide for 

Directed Orders. 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 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 Arca proposes new Rule 6.88, 

Directed Orders, under which Market 

Makers may receive Directed Orders, 

and also proposes to amend Rule 6.76A 

to describe the allocation of Directed 

Orders upon execution. Additionally, 

the Exchange proposes to define 

Directed Orders, Order Flow Provider, 

and Directed Order Market Maker 

(‘‘DOMM’’), and make other rule 

modifications to provide for Directed 

Orders. 

Proposed Rule 6.88, Directed Orders, 

is based on NYSE Amex Rule 964.1NY. 

It permits any Market Maker to receive 

Directed Orders, provided the Market 

Maker is quoting at the National Best 

Bid/Offer (‘‘NBBO’’) at the time of 

receipt. It also describes how Directed 

Orders are to be executed if the DOMM 

is not at the NBBO at time of receipt. 

Additionally, the proposed Rule 

requires a DOMM to meet a 90% 

quoting obligation in any class in which 

a Directed Order is received. The 

Exchange believes it is appropriate to 

oblige DOMMs to a higher quoting 

standard in return for the privilege of 

receiving directed order flow. 

The Exchange is also proposing to 

amend Rule 6.76A the circumstances by 

which a DOMM may receive an 

allocation entitlement up to 40% of an 

incoming order if quoting at the NBBO 

at the time the NYSE Arca System 

mstockstill on DSKH9S0YB1PROD with NOTICES

Federal Register / Vol. 74, No. 157 / Monday, August 17, 2009 / Notices 41479 

4 15 U.S.C. 78f(b). 

5 15 U.S.C. 78s(b)(3)(A). 

6 17 CFR 240.19b–4(f)(6). 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. The Exchange has complied with this 

requirement. 7 17 CFR 200.30–3(a)(12). 

receives a Directed Order. A DOMM 

will receive up to 40% of the remaining 

balance of an order, or the DOMM’s 

share in the order of ranking, whichever 

is greater, provided that any Customer 

orders ranked ahead of the DOMM are 

satisfied first. However, if the DOMM is 

not at the NBBO, the order will be 

allocated as if it were not a Directed 

Order. 

The Exchange is proposing new Rule 

6.62(z) to define Directed Orders, and 

also new Rule 6.1A(a)(20) to define 

Directed Order Market Maker and 

6.1A(a)(21) to define Order Flow 

Provider. 

Lastly, the Exchange is proposing to 

modify Rule 6.82(d)(2)—Guaranteed 

Participation, to clarify that LMMs are 

entitled to a trade allocation in 

accordance with Rule 6.76A, and that 

LMMs are not entitled to any guaranteed 

allocation on Directed Orders that trade 

with a Directed Order Market Maker. If 

the DOMM is not quoting at the NBBO, 

but the LMM’s quote is at the NBBO, the 

LMM will be entitled to a trade 

allocation in accordance with Rule 

6.76A. The LLM will be entitled to the 

same allocation as currently applicable 

under Rule 6.76A. 

The trade allocation described in Rule 

6.76A is structured so that no order will 

be subject to a guaranteed allocation 

greater than 40% of its size after 

satisfying any Customer orders ranked 

ahead of any guaranteed recipient. 

Additionally, it would be considered a 

violation of just and equitable principals 

of trade and a misuse of non-public 

information for a Directed Order Market 

Maker to become aware of an impending 

Directed Order so as to improve the 

quote to momentarily match the NBBO, 

and then worsen the price of the quote 

following execution of the Directed 

Order. 

2. Statutory Basis 

The Exchange believes the proposed 

rule change is consistent with Section 

6(b) of the Act 4 in general, and furthers 

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

Act, in that it is designed to promote 

just and equitable principles of trade, 

remove impediments to and perfect the 

mechanisms of a free and open market 

and a national market system and, in 

general, to protect investors and the 

public interest, as it will provide greater 

incentive for Directed Order Market 

Makers to quote at the NBBO, and 

thereby provide a more competitive 

market structure for investors in general. 

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: (i) Does not significantly affect 

the protection of investors or the public 

interest; (ii) does not impose any 

significant burden on competition; and 

(iii) by its terms, does not 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 5 and Rule 19b– 

4(f)(6) thereunder.6

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–NYSEArca–2009–73 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–NYSEArca–2009–73. 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– 

NYSEArca–2009–73 and should be 

submitted on or before September 8, 

2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.7

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. E9–19575 Filed 8–14–09; 8:45 am] 

BILLING CODE 8010–01–P 

DEPARTMENT OF STATE 

[Public Notice: 6727] 

30-Day Notice of Proposed Information 

Collection: Request for 

Reconsideration of Proviso(s); OMB 

Control Number 1405–0172 

ACTION: Notice of request for public 

comment and submission to OMB of 

proposed collection of information. 

mstockstill on DSKH9S0YB1PROD with NOTICES