Federal Register / Vol. 74, No. 162 / Monday, August 24, 2009 / Notices 42725 

5 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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 will also 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 No. 

SR–BX–2009–047 and should be 

submitted on or before September 14, 

2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.5

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–20192 Filed 8–21–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60518; File No. SR– 

NYSEArca–2009–70] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing of Proposed 

Rule Change Amending Rule 10.12 

(Minor Rule Plan) 

August 18, 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 29, 

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

‘‘Exchange’’) 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 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 

Rule 10.12–Minor Rule Plan. 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 

The NYSE Arca Minor Rule Plan 

(‘‘MRP’’) fosters compliance with 

applicable rules and also helps to 

reduce the number and extent of rule 

violations committed by Options 

Trading Permit (‘‘OTP’’) Holders, OTP 

Firms and associated persons. The 

prompt imposition of a financial penalty 

helps to quickly educate and improve 

the conduct of OTP Holders, OTP Firms 

and associated persons that have 

engaged in inadvertent or otherwise 

minor violations of the Exchange’s 

rules. By promptly imposing a 

meaningful financial penalty for such 

violations, the MRP focuses on 

correcting conduct before it gives rise to 

more serious enforcement action. 

The Exchange is now proposing to 

incorporate additional violations into 

the MRP, these violations include (i) 

trading in restricted classes; and (ii) 

failure to report position and account 

information. The Exchange is also 

proposing to increase fine levels for 

certain violations presently included in 

the MRP. The increases [sic] fine levels 

will be applicable for violations of due 

diligence, priority rules and order 

exposure rules. A brief description of 

each proposed changes [sic] is shown 

below. 

Proposed Rules 10.12(h)(22) and 

10.12(k)(i)(22) 

NYSE Arca Rule 5.4(a) provides, with 

limited exceptions, that the Exchange 

may prohibit any opening purchase 

transactions in a series of options to the 

extent it deems such action necessary or 

appropriate. Accordingly, OTP Holders 

effecting opening transactions in 

restricted series, that are inconsistent 

with the terms of any such restriction, 

will be considered to be in violation of 

Rule 5.4(a). The Exchange is proposing 

to incorporate violations related to 

trading in restricted series into the MRP 

under Exchange Rule 10.12(h)(22). 

The Exchange is proposing to 

implement a fine of $1,000 for the first 

violation in a rolling twenty-four month 

period. A second violation within the 

same period would be allocated a 

$2,500 fine and a third violation would 

be allocated a $5,000 fine. The schedule 

of fines will be included under Rule 

10.12(k)(i)(22). Any subsequent 

violations within a rolling twenty-four 

month period would be subject to 

formal disciplinary proceedings by the 

Exchange. NYSE Arca believes that 

establishing a rolling twenty-four month 

period for cumulative violations will 

serve as an effective deterrent to future 

violative conduct. 

NYSE Arca believes that in most cases 

these violations may be handled 

efficiently through the MRP, however, 

as with other violations, any egregious 

activity or activity that is believed to be 

manipulative will continue to be subject 

to formal disciplinary proceedings. 

Proposed Rules 10.12(h)(23) and 

10.12(k)(i)(23) 

Among other things, Rule 6.6(a) 

requires each OTP Holder and OTP 

Firm to report to the Exchange the 

account and position information of any 

customer who, acting alone, or in 

concert with others, on the previous 

business day maintained aggregate long 

or short positions on the same side of 

the market of 200 or more contracts of 

any single class of option contracts dealt 

in on the Exchange. OTP Holders and 

OTP Firms report this information on 

the Large Option Position Report 

(‘‘LOPR’’). 

NYSE Arca is proposing to 

incorporate violations for failing to 

accurately report position and account 

information in accordance with Rule 

6.6(a) into the MRP. The Exchange 

believes most of these violations are 

inadvertent and technical in nature. Not 

having LOPR reporting violation 

necessarily subject to formal 


erowe on DSK5CLS3C1PROD with NOTICES
42726 Federal Register / Vol. 74, No. 162 / Monday, August 24, 2009 / Notices 

3 15 U.S.C. 78f(b). 

4 15 U.S.C. 78f(b)(5). 

5 15 U.S.C. 78f(b)(6). 

6 15 U.S.C. 78f(b)(7). 

disciplinary proceedings will allow the 

Exchange to more expeditiously process 

routine violations under the MRP Plan. 

In addition, NYSE Arca, as a member 

of the Intermarket Surveillance Group 

(‘‘ISG’’), as well as certain other selfregulatory organizations, have entered 

into an agreement pursuant to Section 

17(d) of the Securities Exchange Act of 

1934 (as amended) (‘‘17d–2 

Agreement’’), which incorporates the 

surveillance and sanctions of LOPR 

reporting violations. As such, the SROs 

have agreed that their respective rules 

concerning the reporting of large option 

positions are common rules. As a result, 

adding LOPR reporting violations to the 

MRP will further result in the 

consistency of rules among SROs who 

are parties to the 17d–2 Agreement with 

respect to LOPR reporting surveillance. 

The Exchange is proposing to 

implement a fine of $1,000 for the first 

violation in a rolling twenty-four month 

period. A second violation within the 

same period would be allocated a 

$2,500 fine and a third violation would 

be allocated a $5,000 fine. The schedule 

of fines will be included under Rule 

10.12(k)(i)(23). Any subsequent 

violations within a rolling twenty-four 

month period would be subject to 

formal disciplinary proceedings by the 

Exchange. NYSE Arca believes that 

establishing a rolling twenty-four month 

period for cumulative violations will 

serve as an effective deterrent to future 

violative conduct. 

NYSE Arca believes that in most cases 

these LOPR reporting violations may be 

handled efficiently through the MRP, 

however, as with other violations, any 

egregious activity or activity that is 

believed to be manipulative will 

continue to be subject to formal 

disciplinary proceedings. 

Changes to Rule 10.12(k)(i)(1), Rule 

10.12(k)(i)(34), and Rule 10.12(k)(i)(40) 

NYSE Arca Rule 6.46(a) requires that 

a Floor Broker handling an order is to 

use due diligence to execute the order 

at the best price or prices available to 

him, in accordance with the Rules of the 

Exchange. Violators of Rule 6.46(a) are 

subject to a sanction pursuant to the 

MRP, specifically, Rule 10.12(k)(i)(1). 

Suggested fines for violations of Rule 

6.46(a) are presently $1,000 for the first 

violation in a rolling twenty-four month 

period, $2,500 for a second violation 

within the same period fine and a third 

violation is subject to a $3,500 fine. 

NYSE Arca Rule 6.47A is designed to 

ensure that orders are properly exposed 

on the NYSE Arca electronic trading 

system prior to interaction by the 

initiating firm. The rule states that users 

may not execute as principal orders they 

represent as agent unless (i) agency 

orders are first exposed on the Exchange 

for at least one (1) second or (ii) the User 

has been bidding or offering on the 

Exchange for at least one (1) second 

prior to receiving an agency order that 

is executable against such bid or offer. 

This rule prevents a user from executing 

agency orders to increase its economic 

gain from trading against the order 

without first giving other trading 

interest on the Exchange an opportunity 

to either trade with the agency order or 

to trade at the execution price when the 

User was already bidding or offering on 

the book. Violators of Rule 6.47A are 

subject to a sanction pursuant to the 

MRP, specifically, Rule 10.12(k)(i)(34). 

Suggested fines for violations of Rule 

6.47A are presently $500 for the first 

violation in a rolling twenty-four month 

period, $1,000 for a second violation 

within the same period fine and a third 

violation is subject to a $2,500 fine. 

NYSE Arca Rule 6.75 governs the 

priority of bids and offers in open 

outcry trading. In general, Rule 6.75 

states that the highest bid/lowest offer 

shall have priority over all other orders. 

In the event there are two or more bids/ 

offers for the same option contract 

representing the best price and one such 

bid/offer is displayed in the 

Consolidated Book, such bid shall have 

priority over any other bid at the post. 

In addition, if two or more bids/offers 

represent the best price and a bid/offer 

displayed in the Consolidated Book is 

not involved, priority shall be afforded 

to such bids in the sequence in which 

they are made. Rule 6.75 also contains 

certain provisions for [sic] related to 

split-price priority and priority of 

complex orders. Violators of any part of 

Rule 6.75 are subject to a sanction 

pursuant to the MRP, specifically Rule 

10.12(k)(i)(40). Suggested fines for 

violations of Rule 6.75 are presently 

$500 for the first violation in a rolling 

twenty-four month period, $1,000 for a 

second violation within the same period 

fine and a third violation is subject to 

a $2,000 fine. 

At this time the Exchange believes the 

current monetary fine levels contained 

in the MRP, for the above mentioned 

violations, are inadequate, given the 

serious nature of these rules. In order to 

act as an effective deterrent against 

future violations, while also serving as 

a just penalty for those who commit 

these violations, the Exchange feels an 

increase in the fine levels for these three 

violations is warranted. NYSE Arca now 

proposes fine levels of $1,000 for the 

first violation in a rolling twenty-four 

month period, $2,500 for a second 

violation within the same period fine 

and $5,000 for a third violation within 

the same period fine. These fine levels 

will apply to all three types of 

violations. 

2. Statutory Basis 

The proposed rule change is 

consistent with Section 6(b) 3 of the Act, 

in general, and furthers the objectives of 

Section 6(b)(5) 4 in particular in that it 

is designed to prevent fraudulent and 

manipulative acts and practices, to 

promote just and equitable principles of 

trade, to foster cooperation and 

coordination with persons engaged in 

facilitating transactions in securities, 

and to remove impediments to and 

perfect the mechanism of a free and 

open market and a national market 

system. 

The proposal is also consistent with 

Section 6(b)(6) 5 and 6(b)(7),6 which 

requires that members and persons 

associated with members are 

appropriately disciplined for violations 

of Exchange rules and are provided a 

fair procedure for disciplinary 

procedures. 

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 

Within 35 days of the date of 

publication of this notice in the Federal 

Register or within such longer period (i) 

as the Commission may designate up to 

90 days of such date if it finds such 

longer period to be appropriate and 

publishes its reasons for so finding or 

(ii) as to which the self-regulatory 

organization consents, the Commission 

will: 

(A) By order approve the proposed 

rule change, or 

(B) Institute proceedings to determine 

whether the proposed rule change 

should be disapproved. 


erowe on DSK5CLS3C1PROD with NOTICES
Federal Register / Vol. 74, No. 162 / Monday, August 24, 2009 / Notices 42727 

7 17 CFR 200.30–3(a)(12). 

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–2009–70 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–2009–70. 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–NYSEArca–2009–70 and 

should be submitted on or before 

September 14, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.7

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–20241 Filed 8–21–09; 8:45 am] 

BILLING CODE 8010–01–P 

SOCIAL SECURITY ADMINISTRATION 

Privacy Act of 1974, as Amended; New 

System of Records 

AGENCY: Social Security Administration 

(SSA). 

ACTION: Proposed system of records and 

routine uses: Correction. 

SUMMARY: We are issuing public notice 

of our intent to establish a new system 

of records and routine uses applicable to 

this system of records in accordance 

with the Privacy Act (5 U.S.C. 552a(e)(4) 

and (e)(11)). The proposed system of 

records is entitled the Race and 

Ethnicity Collection System (60–0104), 

hereinafter referred to as the RECS 

system of records. We discuss the 

system of records in the Supplementary 

Information section below. We invite 

public comments on this proposal. We 

published this proposed system of 

records on August 19, 2009 (document 

2009–19935), with an effective date of 

October 9, 2009, unless we receive 

comments before that date that would 

result in a contrary determination. This 

current notice corrects the effective date 

of the proposed RECS system of records 

and routine uses, per below. 

DATES: We filed a report of the proposed 

RECS system of records and routine use 

disclosures with the Chairman of the 

Senate Committee on Homeland 

Security and Governmental Affairs, the 

Chairman of the House Committee on 

Oversight and Government Reform, and 

the Director, Office of Information and 

Regulatory Affairs, Office of 

Management and Budget (OMB) on 

August 13, 2009. The proposed RECS 

system of records and routine uses will 

become effective on September 28, 

2009, unless we receive comments 

before that date that would result in a 

contrary determination. 

ADDRESSES: Interested persons may 

comment on this publication by writing 

to the Executive Director, Office of 

Privacy and Disclosure, Office of the 

General Counsel, Social Security 

Administration, Room 3–A–6 

Operations Building, 6401 Security 

Boulevard, Baltimore, Maryland 21235– 

6401. All comments we receive will be 

available for public inspection at the 

above address. 

FOR FURTHER INFORMATION CONTACT: 

Alicia Matthews, Social Insurance 

Specialist (Senior Analyst), Disclosure 

Policy Development and Services 

Division 1, Office of Privacy and 

Disclosure, Office of the General 

Counsel, Social Security 

Administration, 3–A–6 Operations 

Building, 6401 Security Boulevard, 

Baltimore, Maryland 21235–6401, 

telephone: (410) 965–1723, e-mail: 

alicia.matthews@ssa.gov. 

SUPPLEMENTARY INFORMATION: 

I. Background and Purpose of the 

Proposed RECS System of Records 

A. General Background 

In October 1997, the Office of 

Management and Budget (OMB) 

announced revised government-wide 

standards for Federal agencies collecting 

race and ethnicity (RE) data (62 FR 

58782, Oct. 30, 1997, Revisions to the 

Standards for the Classification of 

Federal Data on Race and Ethnicity). 

We need RE data for program 

evaluation, research, and statistical 

reporting purposes. We do not use RE 

data to make decisions about a person’s 

application for benefits or any other 

programmatic determination. Prior to 

1987, we collected RE data from persons 

on a voluntary basis when they applied 

for either original or replacement Social 

Security number (SSN) cards. Since 

1987, however, we have issued most 

original SSN cards through an 

enumeration-at-birth program (EAB), 

which is administered by the States. As 

the States do not collect RE information, 

we do not maintain RE information for 

EAB applicants. Since 2002, the 

Department of Homeland Security 

(DHS) has taken applications for SSN 

cards from aliens entering the United 

States through the enumeration-at-entry 

(EAE) program. DHS does not provide 

us with RE information on EAE 

applicants. 

We currently maintain the RE data 

that we collect in an existing Privacy 

Act system of records, the Master Files 

of SSN Number Holders and SSN 

Applications. The RE data we currently 

collect is limited to these categories: 

Asian, Asian-American or Pacific 

Islander; Hispanic; Black (Not 

Hispanic); North American Indian or 

Alaskan Native; and White (Not 

Hispanic). Under the current standards, 

persons who provide us race 

information can designate only one of 

the categories, and they do not have the 

option of designating both their race and 

ethnicity. 


erowe on DSK5CLS3C1PROD with NOTICES