Federal Register / Vol. 74, No. 19 / Friday, January 30, 2009 / Notices 5711 

9 15 U.S.C. 78s(b)(3)(A). 

10 17 CFR 240.19b–4(f)(6). Pursuant to Rule 19b– 

4(f)(6)(iii) under the Act, the Exchange is required 

to give 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. 

11 17 CFR 240.19b–4(f)(6). 

12 17 CFR 240.19b–4(f)(6)(iii). 

13For purposes only of waiving the 30-day 

operative delay, the Commission has considered the 

proposed rule’s impact on efficiency, competition, 

and capital formation. 15 U.S.C. 78c(f). 

14 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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 proposed rule 

change is designed to remove 

uncertainty regarding the ability of 

certain companies to remain listed on 

the NYSE during the current highly 

unusual market conditions, thereby 

protecting investors, facilitating 

transactions in securities, and removing 

an impediment to a free and open 

market. 

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 Exchange 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: (i) 

Does not significantly affect the 

protection of investors or the public 

interest; (ii) does not impose any 

significant burden on competition; and 

(iii) does not 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, the proposed rule change has 

become effective pursuant to Section 

19(b)(3)(A) of the Act 9 and Rule 19b– 

4(f)(6) thereunder.10

A proposed rule change filed 

pursuant to Rule 19b–4(f)(6) under the 

Act 11 normally does not become 

operative for 30 days after the date of its 

filing. However, Rule 19b–4(f)(6)(iii) 12

permits the Commission to designate a 

shorter time if such action is consistent 

with the protection of investors and the 

public interest. The Exchange has 

requested that the Commission waive 

the 30-day operative delay. 

The Commission believes that 

waiving the 30-day operative delay is 

consistent with the protection of 

investors and the public interest 

because it will allow the NYSE to 

immediately implement a temporary 

measure to lower its continued listing 

requirement relating to average global 

market capitalization to respond to 

recent market volatility and conditions. 

The Commission notes that the 

Exchange’s current standard does not 

provide companies with a period of 

time to regain compliance and, instead, 

companies failing to meet this standard 

are immediately subject to the 

Exchange’s delisting procedures in 

Section 804 of the Manual. As such, the 

Commission believes that waiving the 

30-day operative delay will provide 

certain companies with immediate relief 

from being delisted as a result of the 

current market conditions, provided 

that their average global market 

capitalization over a consecutive 30-day 

trading period remains at $15 million or 

above. For these reasons, the 

Commission designates that the 

proposed rule change become operative 

immediately upon filing.13

At any time within 60 days of the 

filing of the proposed rule change, the 

Commission may summarily abrogate 

the 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 Exchange 

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–NYSE–2009–06 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–2009–06. 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 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– 

2009–06 and should be submitted on or 

before February 20, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.14

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–2016 Filed 1–29–09; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–59289; File No. SR– 

NYSEArca–2009–06] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change to Introduce a Pilot 

Program for NYSE Arca Trades 

January 23, 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 January 

21, 2009, NYSE Arca, Inc. (‘‘NYSE 

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5712 Federal Register / Vol. 74, No. 19 / Friday, January 30, 2009 / Notices 

3 17 CFR 240.19b–4(f)(6). 

4The Exchange notes that it will make the NYSE 

Arca Last Sale Information available to vendors no 

earlier than it makes its last sale information 

available to the processor under the CTA Plan. 

5See Release Nos. 34–28407 (September 10, 

1990), and 34–49185 (February 4, 2004). 

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

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I and II 

below, which Items have been prepared 

by NYSE Arca. NYSE Arca has 

designated the proposed rule change as 

constituting a non-controversial rule 

change under Rule 19b–4(f)(6) 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 

NYSE Arca proposes to establish a 

pilot program to introduce its NYSE 

Arca Trades service at no charge. NYSE 

Arca Trades is a new NYSE Arca-only 

market data service that allows a vendor 

to redistribute on a real-time basis the 

same last sale information that NYSE 

Arca reports to the Consolidated Tape 

Association (‘‘CTA’’) for inclusion in 

CTA’s consolidated data stream and 

certain other related data elements 

(‘‘NYSE Arca Last Sale Information’’). 

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 these statements may be examined at 

the places specified in Item IV below. 

The self-regulatory organization 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 

a. The Service. The Exchange 

proposes to establish a pilot program to 

introduce NYSE Arca Trades, a new 

service pursuant to which it will allow 

vendors, broker-dealers and others 

(‘‘NYSE Arca-Only Vendors’’) to make 

available NYSE Arca Last Sale 

Information on a real-time basis.4 The 

Exchange will not impose any fees for 

the receipt and use of NYSE Arca 

Trades, whether on vendors or 

subscribers, during the pilot period. 

Contemporaneously with the 

proposed rule change, the Exchange 

submitted a proposed rule change that 

seeks to establish a $750 per month 

access fee for the receipt and 

redistribution of the NYSE Arca Trades 

datafeed(s) and device fees for the enduse of NYSE Arca Trades’ NYSE Arca 

Last Sale Information (the ‘‘NYSE Arca 

Trades Fee Filing’’) as follows: 

i. $5 per month per display device for 

the receipt and use of NYSE Arca Last 

Sale Information relating to Network A 

and Network B Eligible Securities (as 

the CTA Plan uses those terms); and 

ii. $5 per month per display device for 

the receipt and use of NYSE Arca Last 

Sale Information relating to securities 

listed on Nasdaq. 

The Exchange would not commence 

to impose those fees until the later of 

Commission approval of the NYSE Arca 

Trades Fee Filing and the end of the 

pilot period. 

NYSE Arca Last Sale Information 

would include last sale information for 

all securities that are traded on the 

Exchange. 

The Exchange will make NYSE Arca 

Last Sale Information available through 

its new NYSE Arca Trades service at the 

same time as it provides last sale 

information to the processor under the 

CTA Plan. In addition to the 

information that the Exchange provides 

to CTA, NYSE Arca Last Sale 

Information will also include a unique 

sequence number that the Exchange 

assigns to each trade and that allows an 

investor to track the context of the trade 

through such other Exchange market 

data products as ArcaBook®. 

The Exchange developed NYSE Arca 

Trades primarily at the request of 

traders who are very latency sensitive. 

The latency difference between 

accessing last sales through the NYSE 

Arca datafeed or through the CTA 

datafeed can be measured in tens of 

milliseconds. The Exchange anticipates 

that demand for the product will derive 

primarily from investors and brokerdealers who desire to use NYSE Arca 

Trades to power certain trading 

algorithms or smart order routers. The 

free access to NYSE Arca Trades during 

the pilot period will enable investors to 

determine whether NYSE Arca Trades 

provides value to their business models 

and will enable the Exchange to make 

the service available during the time 

required to obtain approval for the fees. 

b. Administrative Requirements. 

During the pilot period, the Exchange 

will require NYSE Arca-Only Vendors 

to enter into the form of ‘‘vendor’’ 

agreement into which the CTA Plan 

requires recipients of the Network A last 

sale prices information datafeeds to 

enter (the ‘‘Network A Vendor Form’’). 

The Network A Vendor Form will 

authorize the NYSE Arca-Only Vendor 

to provide the NYSE Arca Trades 

service to its subscribers and customers. 

The Network A Participants drafted 

the Network A Vendor Form as a onesize-fits-all form to capture most 

categories of market data dissemination. 

It is sufficiently generic to accommodate 

NYSE Arca Trades. The Network A 

Vendor Form has been in use in 

substantially the same form since 1990.5

Similarly, the Exchange will require 

professional and non-professional 

subscribers to NYSE Arca Trades to 

undertake to comply with the same 

contract, reporting, payment, and other 

administrative requirements as to which 

the Network A Participants subject them 

in respect of Network A last sale 

information under the CTA Plan. 

c. Duration of Pilot Program. The 

Exchange proposes to commence the 

pilot program shortly after submitting 

the proposed rule change to the 

Commission. The Exchange proposes to 

conduct the pilot test for 90 days from 

its commencement date. 

If, at the end of the pilot period, the 

Commission has not yet acted on the 

NYSE Arca Trades Fee Filing, the 

Exchange will assess its experience with 

NYSE Arca Trades and determine 

whether to extend or modify the pilot 

program. 

2. Statutory Basis 

The bases under the Act for the 

proposed rule change are the 

requirements under Section 6(b)(5) that 

the rules of an exchange be designed to 

promote just and equitable principles of 

trade and not to permit unfair 

discrimination between customers, 

issuers, brokers or dealers. 

The pilot program would benefit 

investors by providing a free alternative 

to the last sale price information that 

they receive under the CTA Plan. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange 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. 

mstockstill on PROD1PC66 with NOTICES

Federal Register / Vol. 74, No. 19 / Friday, January 30, 2009 / Notices 5713 

6 15 U.S.C. 78s(b)(3)(A). 

7 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6) 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. NYSE Arca has satisfied this 

requirement. 

8 17 CFR 240.19b–4(f)(6). 

9 17 CFR 240.19b–4(f)(6). 

10For purposes only of waiving the 30-day 

operative delay, the Commission has considered the 

proposed rule’s impact on efficiency, competition, 

and capital formation. See 15 U.S.C. 78c(f). 

11 17 CFR 200.30–3(a)(12). 

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

215 U.S.C. 78s–1(b)(3)(A)(i). 

317 CFR 240.19b–4(f)(1). 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received from 

Members, Participants or Others 

The Exchange has discussed the pilot 

program with those entities that the 

Exchange believes would be the most 

likely to take advantage of the proposed 

NYSE Arca Last Sale Information 

service by becoming NYSE Arca-Only 

Vendors. While those entities have not 

submitted formal, written comments on 

the proposal, the Exchange has 

incorporated some of their ideas into the 

proposal and the proposed rule change 

reflects their input. The Exchange has 

not received any unsolicited written 

comments from members or other 

interested parties. 

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, it has 

become effective pursuant to Section 

19(b)(3)(A) of the Act 6 and Rule 19b– 

4(f)(6) thereunder.7

A proposed rule change filed 

pursuant to Rule 19b–4(f)(6) under the 

Act 8 normally does not become 

operative for 30 days after the date of its 

filing. However, Rule 19b–4(f)(6) 9

permits the Commission to designate a 

shorter time if such action is consistent 

with the protection of investors and the 

public interest. NYSE Arca requests that 

the Commission waive the 30-day 

operative delay. The Commission 

believes that waiving the 30-day 

operative delay 10 is consistent with the 

protection of investors and the public 

interest because such waiver will allow 

the Exchange to immediately provide 

additional information to investors at no 

cost. Therefore, the Commission 

designates the proposal operative upon 

filing. 

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–2009–06 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–2009–06. 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 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 publicly available. All 

submissions should refer to File 

Number SR–NYSEArca–2009–06 and 

should be submitted on or before 

February 20, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–1980 Filed 1–29–09; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–59293; File No. SR–OCC– 

2008–19] 

Self-Regulatory Organizations; The 

Options Clearing Corporation; Notice 

of Filing and Immediate Effectiveness 

of a Proposed Rule Change Relating to 

Rule 1506 

January 23, 2009. 

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

Securities Exchange Act of 1934 

(‘‘Act’’),1 notice is hereby given that on 

December 31, 2008, The Options 

Clearing Corporation (‘‘OCC’’) filed with 

the Securities and Exchange 

Commission (‘‘Commission’’) the 

proposed rule change as described in 

Items I, II, and III below, which items 

have been prepared primarily by OCC. 

OCC filed the proposed rule change 

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

Act 2 and Rule 19b–4(f)(1) 3 thereunder 

so that the proposal was 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 

The proposed rule change clarifies the 

text of Rule 1506, which prohibits 

deposits in lieu of margin for certain 

options. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, 

OCC 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. OCC has prepared 

mstockstill on PROD1PC66 with NOTICES