45500 Federal Register / Vol. 74, No. 169 / Wednesday, September 2, 2009 / Notices 

9 15 U.S.C. 78f(b)(5). 

10 15 U.S.C. 78s(b)(3)(A). 

11 17 CFR 240.19b–4(f)(6). 

12 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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

4 17 CFR 240.19b–4(f)(6). 

the Section 6(b)(5) 9 requirements that 

the rules of an exchange be designed to 

promote just and equitable principles of 

trade, to prevent fraudulent and 

manipulative acts, to remove 

impediments to and to perfect the 

mechanism for a free and open market 

and a national market system, and, in 

general, to protect investors and the 

public interest. In particular, the 

Exchange believes that the elimination 

of the notification messages will permit 

its systems to operate more efficiently 

and the change to the counting period 

for equity options classes will provide 

more flexibility in the administration of 

the rule in a manner consistent with the 

existing rule for index and ETF options 

classes. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

CBOE does not believe that the 

proposed rule change will impose any 

burden on competition 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 

The Exchange neither solicited nor 

received comments on the proposal. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the foregoing 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, 

provided that the self-regulatory 

organization has given 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 proposed rule change 

has become effective pursuant to 

Section 19(b)(3)(A) of the Act 10 and 

Rule 19b–4(f)(6) thereunder.11 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–CBOE–2009–060 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–CBOE–2009–060. 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 CBOE. 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–CBOE–2009–060 and 

should be submitted on or before 

September 23, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–21135 Filed 9–1–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60573; File No. SR–NYSE– 

2009–86] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change Extending the 

Length of Time That Exchange 

Systems Transmit Odd-Lot Order-byOrder Information to the DMM Unit 

Algorithm Prior to the Opening 

Transaction From August 31, 2009 to 

October 31, 2009 

August 26, 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 August 

21, 2009, New York Stock Exchange 

LLC (‘‘NYSE’’ or ‘‘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 the Exchange. The 

Exchange designated the proposal 

eligible for immediate effectiveness 

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

Act 3 and Rule 19b–4(f)(6) thereunder.4

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 extend the 

length of time that Exchange systems 

transmit odd-lot order-by-order 

information to the DMM unit algorithm 

prior to the opening transaction from 

August 31, 2009 to October 31, 2009. 

The text of the proposed rule change is 

available at the Exchange, the 

Commission’s Public Reference Room, 

and http://www.nyse.com. 


jlentini on DSKJ8SOYB1PROD with NOTICES
Federal Register / Vol. 74, No. 169 / Wednesday, September 2, 2009 / Notices 45501 

5See SR–NYSE Amex–2009–58. 

6See Securities Exchange Act Release No. 58845 

(October 24, 2008), 73 FR 64379 (October 29, 2008) 

(SR–NYSE–2008–46) (approving certain rules to 

operate as a pilot scheduled to end October 1, 

2009). 

7 In an opening and reopening trade, NYSE’s 

Display Book® (‘‘Display Book’’) will verify that all 

interest that must be executed in the opening or 

reopening trade can be executed at the price chosen 

by the DMM. If all the interest that must be 

executed in the transaction cannot be executed at 

that price, the Display Book will block the 

execution. In addition, when executing blocks 

(10,000 shares or more or value of $200,000 or 

more), trading out of a gap quote situation or an 

Liquidity Replenishment Point (‘‘LRP’’) that locks 

or crossed the market, the Display Book may adjust 

the execution price if there is enough interest on the 

Display Book to complete the transaction at a better 

price. 

The Display Book® is an order management and 

execution facility. The Display Book receives and 

displays orders to the DMM, contains order 

information, and provides a mechanism to execute 

and report transactions and publish the results to 

the Consolidated Tape. The Display Book is 

connected to a number of other Exchange systems 

for the purposes of comparison, surveillance, and 

reporting information to customers and other 

market data and national market systems. 

8See NYSE Rule 104(a)(2). 

9See NYSE Rule 104 Supplementary Material .05. 

10Odd-lot cancellations and GTC odd-lot orders 

are not included because of system constraints. 

Stop odd-lot orders are elected by the opening 

transaction which in turn commences the execution 

of orders in the Odd-lot System. The Stop odd-lot 

orders elected by the opening transaction are 

executed in the Odd-lot system pursuant to the rule 

governing odd-lot executions. See NYSE Rule 

124(e). 

11See Securities and Exchange Act Release No. 

59592 (March 17, 2009), 74 FR 12417 (March 24, 

2009) (SR–NYSE–2009–29) (Filing to, among other 

things, replace references to specific NYSE systems 

that perform particular functions and replace it 

with the phrase ‘‘Exchange systems’’ in order to 

keep pace with the enhancements to its 

technology). 

12 15 U.S.C. 78a. 

13 15 U.S.C. 78f(b)(5). 

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 

New York Stock Exchange LLC 

(‘‘NYSE’’ or the ‘‘Exchange’’) proposes 

to extend the length of time that 

Exchange systems transmit odd-lot 

order-by-order information to the DMM 

unit algorithm prior to the opening 

transaction from August 31, 2009 to 

October 31, 2009. 

The Exchange notes that parallel 

changes are proposed to be made to the 

rules of NYSE Amex LLC (formerly the 

American Stock Exchange).5

Background 

On October 24, 2008, the Securities 

and Exchange Commission (‘‘SEC’’ or 

‘‘Commission’’) approved the operation 

of a pilot for the Exchange’s New Market 

Model (‘‘Pilot’’).6 As part of that filing, 

the Exchange explained that although 

the Designated Market Maker (‘‘DMM’’) 

would no longer receive order-by-order 

information, there would continue to be 

certain times when human interaction 

was essential to market quality and 

maintaining a fair and orderly market. 

Currently the DMM is responsible for 

facilitating the opening transaction and 

ultimately determines the price,7 and 

executes the orders at that price to open 

the trading in his or her assigned 

securities. In order to effect a fair and 

orderly opening transaction, the 

individual DMM is provided aggregate 

order information.8 DMMs have access 

to aggregate order information as it 

pertains to round-lot and odd-lot orders; 

however, the DMM unit algorithm 

receives odd-lot information on an 

order-by-order basis prior to the opening 

transaction. In order for the DMM unit 

algorithm to effectively facilitate an 

opening transaction, the DMM unit 

algorithm is provided odd-lot 

information prior to the opening. 

Constraints inherent to the Odd-lot 

System require that odd-lot information 

be transmitted to the DMM unit 

algorithm on an order-by-order basis 

prior to the opening. As such, prior to 

the opening, Exchange systems transmit 

to the DMM unit algorithm odd-lot 

order information 9 excluding odd-lot 

cancellations, Stop odd-lot orders and 

prior day Good ’til Cancel (‘‘GTC’’) 

orders.10 Once the security is opened, 

Exchange systems do not provide any 

order-by-order odd-lot information to 

the DMM unit algorithm. 

Proposed Amendment to NYSE Rule 

104 

The Exchange anticipated that the 

work required to modify its systems to 

transmit aggregate odd-lot information 

to DMM unit algorithms would have 

been completed by August 31, 2009; 

however, after the completion of several 

system modifications it is clear that the 

Exchange will require an extension to 

October 31, 2009, in order to complete 

these particular enhancements. 

Since the commencement of the Pilot, 

the Exchange has completed several 

modifications to remove and enhance 

legacy systems. These enhancements are 

necessary to provide the foundation 

needed for Exchange systems to 

transmit aggregate odd-lot information 

to the DMM unit algorithm prior to the 

opening transaction.11 The Exchange 

continues to enhance its systems to 

create a strong platform for 

technological growth that offers its 

customers the most comprehensive set 

of trading technology solutions to meet 

their needs and expectations. In 

furtherance of this goal, the Exchange 

must either upgrade or replace in its 

entirety legacy systems that accept, 

manage, execute and report executions. 

The extensive nature of the 

modifications requires the Exchange to 

progressively implement these systemic 

changes on a security by security basis 

as it gains experience with the new 

technology until the new technology is 

operative in all securities traded on the 

Floor. Consequently, the modifications 

have progressed at a slower pace than 

initially anticipated. The next Exchange 

technology release will modify 

Exchange systems such that odd-lot 

information will be provided to the 

Display Book in aggregate prior to the 

opening transaction. Display Book in 

turn will provide aggregate order 

information to the DMM unit algorithm 

prior to the opening transaction to 

facilitate the ability of the DMM unit 

algorithm to electronically open trading 

in certain securities. It is anticipated 

that these modifications will be 

completed no later than October 31, 

2009. 

Given the above, the Exchange 

requests an extension to October 31, 

2009, to complete the system 

modifications required to transmit 

aggregate odd-lot information to the 

DMM unit algorithms prior to the 

opening transaction. 

2. Statutory Basis 

The basis under the Securities 

Exchange Act of 1934 (the ‘‘Act’’) 12 for 

these proposed rule changes is the 

requirement under Section 6(b)(5) 13

that an Exchange have rules that are 

designed to promote just and equitable 

principles of trade, 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 supports these principles and 


jlentini on DSKJ8SOYB1PROD with NOTICES
45502 Federal Register / Vol. 74, No. 169 / Wednesday, September 2, 2009 / Notices 

14 15 U.S.C. 78s(b)(3)(A). 

15 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6)(iii) requires the self-regulatory organization 

to submit to 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. 

16For 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). 

17 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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

4 17 CFR 240.19b–4(f)(6). 

5 17 CFR 240.19b–4(f)(6). 

serves to protect the investor and the 

public interest in that it seeks to 

continue providing DMM unit 

algorithms with the order by order oddlot information required to facilitate the 

timely opening of securities on the 

Exchange until Exchange systems can be 

modified to provide such information in 

an aggregated format. 

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 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 prior to 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, the 

proposed rule change has become 

effective pursuant to Section 19(b)(3)(A) 

of the Act 14 and Rule 19b–4(f)(6) 

thereunder.15

The Exchange has requested the 

Commission to waive the 30-day 

operative delay so that the proposal may 

become operative immediately 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 provide the DMM unit 

algorithms with order-by-order odd-lot 

information prior to the opening 

transaction without interruption until 

October 31, 2009, when the Exchange 

anticipates necessary modifications to 

its systems will be completed. 

Therefore, the Commission designates 

the proposal operative upon filing.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–NYSE–2009–86 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–2009–86. 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 available publicly. All 

submissions should refer to File 

Number SR–NYSE–2009–86 and should 

be submitted on or before September 23, 

2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.17

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–21136 Filed 9–1–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60571; File No. SR–BX– 

2009–051] 

Self-Regulatory Organizations; 

NASDAQ OMX BX, Inc.; Notice of Filing 

and Immediate Effectiveness of 

Proposed Rule Change To Eliminate 

Flash and Cancel Orders 

August 26, 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 August 

21, 2009, NASDAQ OMX BX, Inc. (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 the Exchange. The Exchange has 

designated the proposed rule change as 

constituting a non-controversial rule 

change under Section 19(b)(3)(A) of the 

Act 3 and Rule 19b–4(f)(6) thereunder,4

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 

The Exchange proposes to eliminate 

Flash and Cancel Orders. The Exchange 

has filed this proposal under Exchange 

Act Rule 19b–4(f)(6) 5 and, as such, the 

proposal is immediately effective. The 


jlentini on DSKJ8SOYB1PROD with NOTICES