48330 Federal Register / Vol. 74, No. 182 / Tuesday, September 22, 2009 / Notices 

11For a description of these technical changes, 

see Notice, supra note 3, at 40277. 

12 In approving this proposal, the Commission has 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

15 U.S.C. 78c(f). 

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

14 15 U.S.C. 78s(b)(2). 

15 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3 17 CFR 240.19b–4(f)(6). 

4See Securities Exchange Act Release No. 57323 

(February 13, 2008), 73 FR 9371 (February 20, 2008) 

(SR–NYSE–2008–09). 

5See Securities Exchange Act Release No. 57826 

(May 15, 2008), 73 FR 29802 (May 22, 2008) (SR– 

NASDAQ–2007–001). 

during a partial execution until all other 

interest on the Display Book at that 

price point is executed in full. 

The Exchange further proposes 

technical changes to NYSE Amex 

Equities Rule 1000.11

III. Discussion and Commission’s 

Findings 

After careful review, the Commission 

finds that the proposed rule change is 

consistent with the requirements of the 

Act and the rules and regulations 

thereunder applicable to a national 

securities exchange.12 In particular, the 

Commission finds that the proposed 

rule change is consistent with Section 

6(b)(5) of the Act,13 which requires, 

among other things, that a national 

securities 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 Exchange stated in 

its filing it believes that this proposal 

would increase an order’s execution 

volume by allowing Exchange systems 

to access CCS interest for partial 

executions. The proposed modification 

increases the opportunities for 

automatically executing a greater 

number of shares of the incoming order 

on the Exchange prior to quoting the 

remainder. Thus, under the proposal, 

partially executed incoming orders 

would have an opportunity to have a 

greater number of shares receive an 

execution prior to being quoted. 

The Commission notes that the price 

point at which the CCS interest 

participates in partial executions would 

be, by operation of the proposed rule, 

the same or better than any limit price 

the customer has set for the incoming 

order. For the foregoing reasons, the 

Commission finds the proposed rule 

change is consistent with the Act. 

IV. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,14 that the 

proposed rule change (SR–NYSEAmex– 

2009–46) be, and it hereby is, approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.15

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–22731 Filed 9–21–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60678; File No. SR–NYSE– 

2009–95] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change by New York 

Stock Exchange LLC Extending Until 

September 22, 2009, the Operation of 

Interim NYSE Rule 128 Which Permits 

the Exchange to Cancel or Adjust 

Clearly Erroneous Executions if They 

Arise Out of the Use or Operation of 

Any Quotation, Execution or 

Communication System Owned or 

Operated by the Exchange, Including 

Those Executions That Occur in the 

Event of a System Disruption or 

System Malfunction 

September 16, 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 

September 15, 2009, New York Stock 

Exchange LLC (‘‘NYSE’’ or the 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission (‘‘SEC’’ or 

‘‘Commission’’) the proposed rule 

change as described in Items I and II 

below, which Items have been prepared 

by the Exchange. NYSE has designated 

the proposed rule change as constituting 

a 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 

The Exchange proposes to extend 

until September 22, 2009, the operation 

of interim NYSE Rule 128 (‘‘Clearly 

Erroneous Executions for NYSE 

Equities’’) which permits the Exchange 

to cancel or adjust clearly erroneous 

executions if they arise out of the use or 

operation of any quotation, execution or 

communication system owned or 

operated by the Exchange, including 

those executions that occur in the event 

of a system disruption or system 

malfunction. 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 

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 Exchange proposes to extend 

until September 22, 2009, the operation 

of interim NYSE Rule 128 (‘‘Clearly 

Erroneous Executions for NYSE 

Equities’’) which permits the Exchange 

to cancel or adjust clearly erroneous 

executions if they arise out of the use or 

operation of any quotation, execution or 

communication system owned or 

operated by the Exchange, including 

those executions that occur in the event 

of a system disruption or system 

malfunction. 

Prior to the implementation of NYSE 

Rule 128 on January 28, 2008,4 the 

NYSE did not have a rule providing the 

Exchange with the authority to cancel or 

adjust clearly erroneous trades of 

securities executed on or through the 

systems and facilities of the NYSE. 

In order for the NYSE to be consistent 

with other national securities exchanges 

which have some version of a clearly 

erroneous execution rule, the Exchange 

is drafting an amended clearly 

erroneous rule which will accommodate 

such other exchanges but will be 

appropriate for the NYSE market model. 

The NYSE notes that the Commission 

approved an amended clearly erroneous 

execution rule for Nasdaq in May 2008.5

On July 28, 2008, the Exchange filed 


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Federal Register / Vol. 74, No. 182 / Tuesday, September 22, 2009 / Notices 48331 

6See Securities Exchange Act Release No. 58328 

(August 8, 2008), 73 FR 47247 (August 13, 2008) 

(SR–NYSE–2008–63). 

7See Securities Exchange Act Release No. 58732 

(October 3, 2008), 73 FR 61183 (October 15, 2008) 

(SR–NYSE–2008–99). 

8See Securities Exchange Act Release No. 59255 

(January 15, 2009) 74 FR 4496 (January 26, 2009) 

(SR–NYSE–2009–02). 

9See Securities Exchange Act Release No. 59581 

(March 9, 2009) 74 FR 12431 (March 24, 2009) (SR– 

NYSE–2009–26). 

10See Securities Exchange Act Release No. 59838 

(April 28, 2009) 74 FR 20767 (May 5, 2009) (SR– 

NYSEArca–2009–36) (See NYSE Arca Rule 7.10). 

11See Securities Exchange Act Release No. 60131 

(June 17, 2009) 74 FR 30196 (June 24, 2009) (SR– 

NYSE–2009–57). 

12See Securities Exchange Act Release No. 60312 

(July 15, 2009) 74 FR 36298 (July 22, 2009) (SR– 

NYSE–2009–70). 

13See Securities Exchange Act Release No. 60419 

(August 7, 2009) 74 FR 39987 (August 10, 2009) 

(SR–NYSE–2009–79). 

14See Securities Exchange Act Release No. 60478 

(August 11, 2009) 74 FR 41769 (August 18, 2009) 

(SR–NYSE–2009–81). 

15See Securities Exchange Act Release No. 60563 

(August 21, 2009) 74 FR 44423 (August 28, 2009) 

(SR–NYSE–2009–87). 

16See Securities Exchange Act Release No. 60597 

(August 31, 2009) 74 FR 46281 (September 8, 2009) 

(SR–NYSE–2009–92). 

17See Securities Exchange Act Release No. 60649 

(September 10, 2009) (SR–NYSE–2009–93). 

18 15 U.S.C. 78f(a) [sic]. 

19 15 U.S.C. 78f(b)(5). 

20 15 U.S.C. 78s(b)(3)(A). 

21 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. The Commission has determined to 

waive the five-day pre-filing period in this case. 

22 17 CFR 240.19b–4(f)(6). 

23 17 CFR 240.19b–4(f)(6). 

with the SEC a request to extend the 

operation of interim Rule 128 until 

October 1, 2008 6 in order to review the 

provisions of Nasdaq’s clearly erroneous 

rule and to consider integrating similar 

standards into its own amendment to 

Rule 128. On October 1, 2008,7 the 

Exchange filed with the SEC a further 

request to extend the operation of 

interim Rule 128 until January 9, 2009 

in order to consider integrating similar 

standards into the amendment to Rule 

128. On January 9, 2009,8 the Exchange 

filed with the SEC a request to extend 

the operation of interim Rule 128 until 

March 9, 2009, indicating that the 

Exchange was still in the process of 

reviewing the Nasdaq rule with a view 

towards incorporating certain 

provisions into the amendment of 

interim Rule 128. 

On February 10, 2009, NYSE Arca 

submitted a proposal to the SEC to 

amend its clearly erroneous rule. The 

NYSE Arca proposed rule differed in 

certain respects from the Nasdaq clearly 

erroneous rule. On March 9, 2009, the 

Exchange filed with the SEC a request 

to extend the operation of interim Rule 

128 until June 9, 2009 9 to finalize 

review of NYSE Arca’s proposed 

amended CEE rule, which included 

market wide CEE initiatives, to 

determine if it was appropriate to 

incorporate such provisions into the 

Rule 128 amendment. 

Thereafter, on April 24, 2009, NYSE 

Arca filed a revised rule change with the 

Commission to amend its clearly 

erroneous rule (NYSE Arca Rule 7.10).10

The Exchange was in the process of 

finalizing its review of NYSE Arca’s 

revised CEE rule change, which also 

included market wide CEE initiatives, to 

determine if it was appropriate to 

incorporate all such provisions into 

NYSE’s interim Rule 128 amendment. 

On June 9, 2009, the Exchange filed 

with the SEC a request to extend the 

operation of interim Rule 128 until July 

15, 2009 11 to finalize review of NYSE 

Arca’s proposed amended CEE rule. On 

July 15, 2009 12 the Exchange filed with 

the SEC a request to extend the 

operation of interim Rule 128 until 

August 1, 2009 to finalize review of 

NYSE Arca’s proposed amended CEE 

rule. On July 31, 2009 the Exchange 

filed with the SEC a request to extend 

the operation of interim Rule 128 until 

August 10, 2009 13 to finalize review of 

NYSE Arca’s proposed amended CEE 

rule. On August 11, 2009 the Exchange 

filed with the SEC a request to extend 

the operation of interim Rule 128 until 

August 21, 2009 14 to finalize review of 

NYSE Arca’s proposed amended CEE 

rule. On August 21, 2009 the Exchange 

filed with the SEC a request to extend 

the operation of interim Rule 128 until 

August 31, 2009 15 to finalize review of 

NYSE Arca’s proposed amended CEE 

rule. On August 31, 2009 the Exchange 

filed with the SEC a request to extend 

the operation of interim Rule 128 until 

September 8, 2009 16 to finalize review 

of NYSE Arca’s proposed amended CEE 

rule. On September 8, 2009 the 

Exchange filed with the SEC a request 

to extend the operation of interim Rule 

128 until September 15, 2009 17 to 

finalize review of NYSE Arca’s 

proposed amended CEE rule. 

The Exchange anticipates finalizing 

proposed rule text of its clearly 

erroneous execution rule shortly, and is, 

therefore, requesting to extend the 

operation of interim Rule 128 until 

September 22, 2009. Prior to September 

22, 2009, the Exchange intends to 

formally file a 19b–4 rule change 

amending interim Rule 128. 

2. Statutory Basis 

The basis under the Securities 

Exchange Act of 1934 (the ‘‘Act’’) 18 for 

this proposed rule change is the 

requirement under Section 6(b)(5) 19

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. 

As articulated more fully in the 

‘‘Purpose’’ Section above, the proposed 

rule would place the NYSE on equal 

footing with other national securities 

exchanges. This will promote the 

integrity of the market and protect the 

public interest, since it would permit all 

exchanges to cancel or adjust clearly 

erroneous trades when such trades 

occur, rather than canceling them on all 

other markets, but leaving them 

standing on only one 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 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 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 20 and Rule 19b– 

4(f)(6) thereunder.21

A proposed rule change filed 

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

Act 22 normally does not become 

operative for 30 days after the date of its 

filing. However, Rule 19b–4(f)(6) 23

permits the Commission to designate a 

shorter time if such action is consistent 

with the protection of investors and the 

public interest. NYSE requests that the 

Commission waive the 30-day operative 

delay because the Exchange believes 

that the absence of such a rule in an 

automated and fast-paced trading 

environment poses a danger to the 


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48332 Federal Register / Vol. 74, No. 182 / Tuesday, September 22, 2009 / Notices 

24For 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). 

25 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)(ii). 

4 17 CFR 240.19b–4(f)(2). [sic] 

integrity of the markets and the public 

interest. NYSE notes that immediate 

effectiveness of the proposed rule 

change will immediately and timely 

enable NYSE to cancel or adjust clearly 

erroneous trades that may present a risk 

to the integrity of the equities markets 

and all related markets. The 

Commission believes that waiving the 

30-day operative delay 24 is consistent 

with the protection of investors and the 

public interest because such waiver will 

permit the Exchange to continue 

operation of interim NYSE Rule 128 on 

an uninterrupted basis, and therefore 

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–NYSE–2009–95 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–2009–95. 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–NYSE–2009–95 and should 

be submitted on or before October 13, 

2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.25

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–22734 Filed 9–21–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60674; File No. SR– 

NASDAQ–2009–082] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Modify Fees 

for Members Using the NASDAQ 

Market Center 

September 15, 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 

28, 2009, The NASDAQ Stock Market 

LLC (‘‘NASDAQ’’) 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 NASDAQ. Pursuant to 

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

Rule 19b–4(f)(2) thereunder,4 NASDAQ 

has designated this proposal as 

establishing or changing a due, fee, or 

other charge, which renders the 

proposed rule change effective upon 

filing. 

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 

NASDAQ proposes to modify pricing 

for NASDAQ members using the 

NASDAQ Market Center. NASDAQ will 

implement this rule change on 

September 1, 2009. The text of the 

proposed rule change is available at 

http://nasdaqomx.cchwallstreet.com/, at 

NASDAQ’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, 

NASDAQ 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. 

NASDAQ 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 

NASDAQ is proposing two changes to 

the fees associated with the use of the 

NASDAQ Market Center for the trading 

of all equities. First, currently, NASDAQ 

offers a rebate of $0.00295 for members 

that add an average daily volume of 125 

million shares of liquidity to the 

NASDAQ Market Center. Effective 

September 1, 2009, NASDAQ will lower 

the volume threshold for liquidity 

provision from 125 million to 95 million 

shares per day while maintaining all 

other elements of this pricing tier. 

Second, currently a member firm that 

provides average daily volume of 

liquidity exceeding 125 million shares 

per day in the NASDAQ equities market 

will not be charged for executing Midpoint Pegged orders (as defined in 

Nasdaq Rule 4751(f)(4)) in the Nasdaq 

Market Center in securities listed on 

NASDAQ, NYSE, or on other exchanges. 

NASDAQ proposes to lower the volume 

threshold for liquidity provision from 

125 million to 95 million shares per day 


sroberts on DSKD5P82C1PROD with NOTICES