49426 Federal Register / Vol. 74, No. 186 / Monday, September 28, 2009 / Notices 

8Associated persons would not similarly be 

permitted to reimburse their customers for losses 

under the rule given the concern that such 

payments may conceal individual misconduct. 

9 In approving this rule proposal, the Commission 

has considered the proposed rule’s impact on 

efficiency, competition, and capital formation. 15 

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

10 15 U.S.C. 78o–3(b)(6). 

11 15 U.S.C. 78s(b)(2). 

12 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3Amendment No. 1 revises the proposal to: (1) 

Correct an example in the purpose section of the 

proposal of the fee applicable when one firm 

represents both sides of a transaction; and (2) 

provide additional discussion of the statutory basis 

for the proposal. 

4 15 U.S.C. 78s(b)(3)(A). 

5 17 CFR 19b–4(f)(2). 

6See Securities and Exchange Act Release No. 

60554 (August 21, 2009) 74 FR 43737 (August 27, 

2009) (Order granting accelerated approval of 

NYSEAmex–2009–42). 

D. Proposed Supplementary Material 

In addition, FINRA proposed to add a 

‘‘Supplementary Material’’ section to 

proposed FINRA Rule 2150 that would: 

• Codify existing staff guidance 

clarifying that a ‘‘guarantee’’ extended 

to all holders of a particular security by 

an issuer as part of that security 

generally would not be subject to the 

prohibition against guarantees and that 

a permissible sharing arrangement 

remains subject to other applicable 

FINRA rules; 

• Clarify that the rule does not 

preclude a member from determining on 

an after-the-fact basis, to reimburse a 

customer for transaction losses, 

provided however that the member shall 

comply with all reporting requirements 

that may be applicable to such 

payment; 8

• Consistent with NYSE Rule 352(c), 

clarify that the rule does not preclude a 

member from correcting a bona fide 

error; and 

• Clarify that the required written 

authorization(s) shall be preserved for a 

period of at least six years after the date 

the account is closed, which is 

consistent with the retention period 

under the SEA for similar records. 

FINRA stated in its proposal that it 

intends to announce the 

implementation date of the proposed 

rule change in a Regulatory Notice to be 

published no later than 90 days 

following Commission approval. 

III. Discussion 

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 association.9 In particular, the 

Commission believes the proposal is 

consistent with the requirements of 

Section 15A(b)(6) of the Act,10 which 

requires, among other things, that the 

Association’s rules be designed to 

prevent fraudulent and manipulative 

acts and practices, to promote just and 

equitable principles of trade, and, in 

general, to protect investors and the 

public interest. Further, the Commission 

believes it is appropriate to transfer 

these NASD Rules into the FINRA 

Consolidated Rulebook, with the 

changes specified, and to delete the 

noted NYSE Rules as proposed because 

the proposal will protect investors 

against potential misconduct. 

IV. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,11 that the 

proposed rule change (SR–FINRA– 

2009–014) is approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–23307 Filed 9–25–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60698; File No. SR– 

NYSEAmex–2009–61] 

Self-Regulatory Organizations; NYSE 

Amex, LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change, as Modified by 

Amendment No. 1, Implementing a Fee 

for Complex Orders to Its Schedule of 

Fees and Charges for Exchange 

Services 

September 21, 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 9, 2009, NYSE Amex, LLC 

(the ‘‘Exchange’’ or ‘‘NYSE Amex’’) 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 NYSE Amex. 

NYSE Amex filed Amendment No. 1 to 

the proposal on September 18, 2009.3

NYSE Amex filed the proposed rule 

change, as amended, pursuant to 

Section 19(b)(3)(A) of the Act 4 and Rule 

19b–4(f)(2) thereunder,5 which renders 

the proposed rule change, as amended, 

effective upon filing with the 

Commission. The Commission is 

publishing this notice to solicit 

comments on the proposed rule change, 

as amended, from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to amend the 

section of its Schedule of Fees and 

Charges for Exchange Services (the 

‘‘Schedule’’). While changes to the 

Schedule pursuant to this proposal will 

be effective upon filing, the changes will 

become operative on September 9, 2009. 

The amended section of the Schedule is 

included as Exhibit 5 hereto. 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 

Exchange 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 

Pursuant to a recent rule filing 6 the 

Exchange will be introducing automated 

complex order trading for all market 

participants on NYSE Amex. In 

conjunction with this new functionality, 

the Exchange proposes to introduce two 

new transaction fees specific to 

Complex Order executions. 

Complex Orders that are executed 

against other similar Complex Orders 

will be subject to a transaction fee of 

$0.10 per contract. For example, if a 

Complex Order, comprised of two legs, 

executes against a similar two-legged 

Complex Order, each market participant 

will be charged $0.20 ($0.10 per 

contract). To expand on this example, if 

the same strategy is executed a total of 

ten (10) times, each participant would 

be charged $2.00. If a Complex Order 

comprised of three legs executes against 

a similar three-legged Complex Order 

then each participant would be charged 

$0.30, for the transaction. To expand on 

this example, if the same three-legged 


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Federal Register / Vol. 74, No. 186 / Monday, September 28, 2009 / Notices 49427 

7See Securities and Exchange Act Release No. 

58473 (September 8, 2008) 73 FR 53312 (September 

15, 2008) (Notice of filing and immediate 

effectiveness for SR–NYSEArca–2008–97). 

8 5 U.S.C. 78s(b)(3)(A). 

9 17 CFR 19b–4(f)(2). 

10The Commission considers the 60-day period 

within which the Commission may summarily 

abrogate the proposal pursuant to Section 

19(b)(3)(C) of the Act, 15 U.S.C. 78s(b)(3)(C), to 

commence on September 18, 2009, the date NYSE 

Amex filed Amendment No. 1 to the proposal. 

Complex Order is executed a total of ten 

(10) times, each participant would be 

changed $3.00. All electronically 

executed Complex Orders, regardless of 

whether they are entered by Market 

Makers, Brokers Dealers, or OTP Firms 

representing Public Customers, will be 

billed this same rate when their order is 

executed against another Complex 

Order. 

The Exchange proposes a separate fee 

for electronically executed Complex 

Orders when the same member firm 

represents both sides of the transaction. 

Complex Orders, entered by a firm that 

trade against a similar Complex Order 

represented by the same firm, will be 

subject to a transaction fee of $0.05 per 

contract side. For example, if a Complex 

Order comprised of two legs is entered 

by Firm A, and executes against a 

similar two-legged Complex Order also 

for Firm A, the firm will be charged a 

total of $0.20 (four contracts at $.05 per 

contract), for each time the complex 

order strategy is executed. To expand on 

this example, if the same strategy is 

executed a total of ten (10) times, the 

firm would be subject to a transaction 

fee of $1.00 per Complex Order, and 

since the same firm is a party to both 

sides of the transaction, they would be 

charged a total of $2.00. If a Complex 

Order entered by Firm A, which is 

comprised of three legs, executes against 

a similar three-legged Complex Order 

entered by Firm A, then the firm would 

be charged $0.30, for each time the three 

legged Complex Order is executed. To 

expand on this example, if the same 

three-legged Complex Order is executed 

a total of ten (10) times, the firm would 

be subject to a transaction fee of $1.50 

per Complex Order, and since the firm 

represents both sides of the transaction, 

they would be charged a total of $3.00. 

There may be occasions where a 

Complex Order will not execute against 

a similar contra-side Complex Order, 

but instead will execute against the 

individual leg markets represented by 

quotes and/or orders in the 

Consolidated Book. This scenario will 

occur when the best price for the 

Complex Order strategy is actually 

represented by a combination of 

individual quotes and/or orders, resting 

in the Consolidated Book. In situations 

where Complex Orders are executed 

utilizing two or more individual quotes 

or orders from the Consolidated Book, 

standard transaction fees, as shown on 

the Schedule, will apply to all 

participants on the trade. Additionally, 

standard Marketing Charges apply to all 

electronic complex order executions. 

The Exchange believes that the 

proposed changes to the Schedule are 

equitable in that they apply uniformly 

to all similarly situated Users. 

Additionally, the proposed fees are the 

same as those currently charged by 

NYSE Arca.7

2. Basis 

The Exchange believes that the 

proposal is consistent with Section 6(b) 

of the Act, in general, and Section 

6(b)(4), in particular, in that it provides 

for the equitable allocation of dues, fees 

and other charges among its members. 

The Exchange believes that the 

proposed rates are reasonable. The 

proposed rate structure is part of the 

Exchange’s efforts to attract and 

enhance participation on the Exchange, 

with respect to the implementation of 

electronic complex order trading. The 

Exchange also believes that the 

proposed changes to the Fee Schedule 

are equitable in that they apply 

uniformly to all market participants on 

NYSE Amex. 

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 

The foregoing rule change, as 

amended, has become effective pursuant 

to Section 19(b)(3)(A) of the Act 8 and 

Rule 19b–4(f)(2) 9 thereunder because it 

establishes a due, fee, or other charge 

imposed by NYSE Amex. 

At any time within 60 days of the 

filing of such proposed rule change, as 

amended, 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.10

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed rule 

change, as amended, 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–NYSEAmex–2009–61 on 

the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Elizabeth M. Murphy, Secretary, 

Securities and Exchange Commission, 

Station Place, 100 F Street, NE., 

Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–NYSEAmex–2009–61. 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 NYSEAmex. 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–NYSEAmex–2009–61 and 

should be submitted on or before 

October 19, 2009. 


srobinson on DSKHWCL6B1PROD with NOTICES
49428 Federal Register / Vol. 74, No. 186 / Monday, September 28, 2009 / Notices 

11 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. 

4Amendment No. 1 supersedes and replaces the 

original filing in its entirety. 

5The Commission notes that the rule text makes 

clear that personal portable or wireless 

communication devices can only be used outside of 

the Trading Floor and all other restricted access 

areas. 

6See SR–NYSE–2009–84. The Commission notes 

that the rule text makes clear that personal portable 

or wireless communication devices can only be 

used outside of the Trading Floor and all other 

restricted access areas. See supra note 5. 

7See Securities Exchange Act Release No. 58673 

(September 29, 2008), 73 FR 57707 (October 3, 

2008) (SR–NYSE–2008–60 and SR–Amex–2008– 

62). 

8NYSE Alternext US LLC was subsequently 

renamed NYSE Amex LLC. See Securities Exchange 

Act Release No. 59575 (March 13, 2009), 74 FR 

11803 (March 19, 2009) (SR–NYSEALTR–2009–24). 

9 15 U.S.C. 78f. 

10See Securities Exchange Act Release No. 58705 

(October 1, 2008), 73 FR 58995 (October 8, 2008) 

(SR–Amex–2008–63). 

11See Securities Exchange Act Release Nos. 

58705 (October 1, 2008), 73 FR 58995 (October 8, 

2008) (SR–Amex–2008–63); 58833 (October 22, 

2008), 73 FR 64642 (October 30, 2008) (SR–NYSE– 

2008–106); 58839 (October 23, 2008), 73 FR 64645 

(October 30, 2008) (SR–NYSEALTR–2008–03); 

59022 (November 26, 2008), 73 FR 73683 

(December 3, 2008) (SR–NYSEALTR–2008–10); and 

59027 (November 28, 2008), 73 FR 73681 

(December 3, 2008) (SR–NYSEALTR–2008–11). 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–23306 Filed 9–25–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60692; File No. SR– 

NYSEAmex–2009–57] 

Self-Regulatory Organizations; Notice 

of Filing of Proposed Rule Change by 

NYSE Amex LLC, as Modified by 

Amendment No. 1, Amending Rule 

36—NYSE Amex Equities To Conform 

With Proposed Amendments to 

Corresponding NYSE Rule 36 To 

Permit the Use of Personal Portable or 

Wireless Communication Devices Off 

the Exchange Trading Floor and 

Outside Other Restricted Access Areas 

September 18, 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 

27, 2009, NYSE Amex LLC 

(‘‘NYSEAmex’’ or the ‘‘Exchange’’) filed 

with the Securities and Exchange 

Commission (the ‘‘Commission’’) the 

proposed rule change, as described in 

Items I, II, and III below, which Items 

have been prepared by the Exchange. 

On September 17, 2009, the Exchange 

filed Amendment No. 1 to the proposed 

rule change.4 The Commission is 

publishing this notice to solicit 

comments on the proposed rule change, 

as modified by Amendment No. 1, 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 36—NYSE Amex Equities 

(Communications Between Exchange 

and Members’ Offices) to conform with 

proposed amendments to corresponding 

NYSE Rule 36 submitted in a 

companion filing by the Exchange’s 

corporate affiliate, the New York Stock 

Exchange LLC (‘‘NYSE’’). This 

Amendment No. 1 supersedes the 

original filing in its entirety. 

Amendment No. 1 serves to clarify in 

the rule text the specific areas where 

employees of member organizations are 

permitted to use personal portable or 

wireless communications devices.5 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 

This Amendment No. 1 to SR– 

NYSEAmex–2009–57 supersedes and 

replaces the original filing in its 

entirety. 

The purpose of the proposed rule 

changes is to amend Rule 36—NYSE 

Amex Equities (Communications 

Between Exchange and Members’ 

Offices) to conform with proposed 

amendments to corresponding NYSE 

Rule 36 submitted in a companion filing 

by the Exchange’s corporate affiliate, the 

NYSE.6

Background 

As described more fully in a related 

rule filing 7, NYSE Euronext acquired 

The Amex Membership Corporation 

(‘‘AMC’’) pursuant to an Agreement and 

Plan of Merger, dated January 17, 2008 

(the ‘‘Merger’’). In connection with the 

Merger, the Exchange’s predecessor, the 

American Stock Exchange LLC, a 

subsidiary of AMC, became a subsidiary 

of NYSE Euronext called NYSE 

Alternext US LLC8, and continues to 

operate as a national securities exchange 

registered under Section 6 of the Act.9

The effective date of the Merger was 

October 1, 2008. 

In connection with the Merger, on 

December 1, 2008, the Exchange 

relocated all equities trading conducted 

on the Exchange legacy trading systems 

and facilities located at 86 Trinity Place, 

New York, New York, to trading systems 

and facilities located at 11 Wall Street, 

New York, New York (the ‘‘Equities 

Relocation’’). The Exchange’s equity 

trading systems and facilities at 11 Wall 

Street (the ‘‘NYSE Amex Trading 

Systems’’) are operated by the NYSE on 

behalf of the Exchange.10

As part of the Equities Relocation, 

NYSE Amex adopted NYSE Rules 1– 

1004, subject to such changes as 

necessary to apply the Rules to the 

Exchange, as the NYSE Amex Equities 

Rules to govern trading on the NYSE 

Amex Trading Systems.11 The NYSE 

Amex Equities Rules, which became 

operative on December 1, 2008, are 

substantially identical to the current 

NYSE Rules 1–1004 and the Exchange 

continues to update the NYSE Amex 

Equities Rules as necessary to conform 

with rule changes to corresponding 

NYSE Rules filed by the NYSE. 

Proposed Conforming Amendments to 

NYSE Amex Equities Rules 

As noted above, the Exchange 

proposes to amend Rule 36—NYSE 

Amex Equities to conform with 

proposed amendments to corresponding 

NYSE Rule 36 submitted in a 

companion filing by the NYSE. As 

discussed in more detail below, the 

NYSE is filing the proposed rule 

changes to permit the use of personal 

portable or wireless communication 

devices off the NYSE Trading Floor. The 

Exchange is proposing to adopt the 

NYSE’s proposed rule changes, subject 

to such technical changes as are 

necessary to apply the changes to the 

Exchange. 


srobinson on DSKHWCL6B1PROD with NOTICES