51350 Federal Register / Vol. 74, No. 192 / Tuesday, October 6, 2009 / Notices 

9 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 60520 

(August 18, 2009), 74 FR 43176 (‘‘Notice’’). 

4See Notice, supra note 3, 74 FR at 43177. 

5NYSE Amex Rule 933NY(a) requires that a Floor 

Broker handling an order use due diligence to 

execute the order at the best price or prices 

available to him, in accordance with the Rules of 

the Exchange. 

6NYSE Amex Rule 935NY 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 second or (ii) the User 

has been bidding or offering on the Exchange for 

at least one second prior to receiving an agency 

order that is executable against such bid or offer. 

7NYSE Amex Rule 963NY 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 963NY 

also contains certain provisions related to splitprice priority and priority of complex orders. 

have been received. OCC will notify the 

Commission of any written comments 

received by OCC. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Within thirty-five 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 

ninety 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. 

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 Commissions Internet 

comment form (http://www.sec.gov/ 

rules/sro.shtml) or 

• Send an e-mail to rulecomments@sec.gov. Please include File 

Number SR–OCC–2009–15 on the 

subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Secretary, Securities and Exchange 

Commission, 100 F Street, NE., 

Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–OCC–2009–15. 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 

Section, 100 F Street, NE., Washington, 

D.C. 20549–1090, on official business 

days between the hours of 10 a.m. and 

3 p.m. Copies of such filings will also 

be available for inspection and copying 

at the principal office of the OCC and on 

OCC’s Web site at http:// 

www.optionsclearing.com/publications/ 

rules/proposed_changes/ 

sr_occ_09_15.pdf. 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–OCC– 

2009–15 and should be submitted on or 

before October 27, 2009. 

For the Commission by the Division of 

Trading and Markets, pursuant to delegated 

authority.9

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–23992 Filed 10–5–09; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60741; File No. SR– 

NYSEAmex–2009–45] 

Self-Regulatory Organizations; NYSE 

Amex LLC; Order Approving Proposed 

Rule Change Amending Rule 476A 

(Imposition of Fines for Minor 

Violation(s) of Rules) 

September 29, 2009. 

On July 29, 2009, NYSE Amex LLC 

(‘‘NYSE Amex’’ or ‘‘Exchange’’) filed 

with the Securities and Exchange 

Commission (‘‘Commission’’), pursuant 

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

Exchange Act of 1934 (‘‘Act’’) 1 and Rule 

19b–4 thereunder,2 a proposed rule 

change amending its Minor Rule Plan 

(‘‘MRP’’) to incorporate additional 

violations into the MRP and to increase 

the fine levels for certain MRP 

violations. The proposed rule change 

was published for comment in the 

Federal Register on August 26, 2009.3

The Commission received no comments 

regarding the proposal. This order 

approves the proposed rule change. 

The Exchange proposes to amend its 

MRP to incorporate violations for 

opening transactions in restricted 

classes, failure to report position and 

account information, and failure to 

complete mandatory annual training. 

The Exchange proposes to implement a 

fine schedule for Amex Options Trading 

Permit (‘‘ATP’’) Holders that effect 

opening transactions in restricted series 

of options, inconsistent with the terms 

of any such restriction, in violation of 

Rule 916 or 916C. This fine will consist 

of $1,000 for the first violation during a 

rolling 24-month period, $2,500 for a 

second violation within the same 

period, and $5,000 for a third violation 

during the same period. The Exchange 

also proposes to incorporate violations 

for failing to accurately report position 

and account information to the 

Exchange on a Large Option Position 

Report (‘‘LOPR’’) pursuant to Rules 

906(a) and 906C(a). This fine will 

consist of $1,000 for the first violation 

in a rolling 24-month period, $2,500 for 

a second violation within the same 

period, and $5,000 for a third violation 

within the same period. The Exchange 

believes that, in most cases, violations 

of trading in restricted classes and 

violations of LOPR reporting may be 

handled efficiently through the MRP. 

However, any egregious activity or 

activity that is believed to be 

manipulative will continue to be subject 

to formal disciplinary proceedings.4 The 

Exchange also proposes to implement a 

fine schedule for individuals who fail to 

complete a mandatory regulatory 

training program in violation of Rule 50, 

Commentary .03–.04. This fine will 

consist of $1,000 for the first violation 

in a rolling 24-month period, $2,500 for 

a second violation within the same 

period, and $5,000 for a third violation 

within the same period. 

The Exchange also proposes to 

increase fines for violations of NYSE 

Amex Rules 933NY(a),5 935NY,6 and 

963NY 7 to $1,000 for the first violation 

in a rolling 24-month period, $2,500 for 


jlentini on DSKJ8SOYB1PROD with NOTICES
Federal Register / Vol. 74, No. 192 / Tuesday, October 6, 2009 / Notices 51351 

8See Notice, supra note 3, 74 FR at 43178. 

9 In approving this proposed rule change, the 

Commission has considered the proposed rule’s 

impact on efficiency, competition, and capital 

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

10 15 U.S.C. 78f(b)(5). 

11 15 U.S.C. 78f(b)(1) and 78f(b)(6). 

12 17 CFR 240.19d–1(c)(2). 

13 15 U.S.C. 78s(b)(2). 

14 17 CFR 240.19d–1(c)(2). 

15 17 CFR 200.30–3(a)(12); 17 CFR 200.30– 

3(a)(44). 

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). 

5See NYSE Amex Rule 900.3NY(p). 

a second violation within the same 

period, and $5,000 for a third violation 

within the same period. The MRP 

currently provides for fines of $1,000 for 

the first violation of Rule 933NY(a) in a 

rolling 24-month period, $2,500 for a 

second violation within the same 

period, and $3,500 for a third violation 

within the same period. The MRP 

currently provides for fines of $500 for 

the first violation of Rule 935NY in a 

rolling 24-month period, $1,000 for a 

second violation within the same 

period, and $2,500 for a third violation 

within the same period. The MRP 

currently provides for a fine of $500 for 

the first violation of Rule 963NY in a 

rolling 24-month period, $1,000 for a 

second violation within the same 

period, and $2,000 for a third violation 

within the same period. The Exchange 

believes that, given the nature of these 

violations, the current fine levels are 

inadequate, and that increased fines for 

these violations are needed to deter 

future violations.8

The Commission finds that the 

proposal is consistent with the 

requirements of the Act and the rules 

and regulations thereunder applicable to 

a national securities exchange.9 In 

particular, the Commission believes that 

the proposal is consistent with Section 

6(b)(5) of the Act,10 which requires that 

the rules of an exchange be designed to, 

among other things, protect investors 

and the public interest. The 

Commission also believes that the 

proposal is consistent with Sections 

6(b)(1) and 6(b)(6) of the Act,11 which 

require that the rules of an exchange 

enforce compliance with, and provide 

appropriate discipline for, violations of 

Commission and exchange rules. 

Furthermore, the Commission believes 

that the proposed changes to the MRP 

should strengthen the Exchange’s ability 

to carry out its oversight and 

enforcement responsibilities as a selfregulatory organization in cases where 

full disciplinary proceedings are 

unsuitable in view of the minor nature 

of the particular violation. Therefore, 

the Commission finds that the proposal 

is consistent with the public interest, 

the protection of investors, or otherwise 

in furtherance of the purposes of the 

Act, as required by Rule 19d–1(c)(2) 

under the Act,12 which governs minor 

rule violation plans. 

In approving this proposed rule 

change, the Commission in no way 

minimizes the importance of 

compliance with NYSE Amex rules and 

all other rules subject to the imposition 

of fines under the MRP. The 

Commission believes that the violation 

of any self-regulatory organization’s 

rules, as well as Commission rules, is a 

serious matter. However, the MRP 

provides a reasonable means of 

addressing rule violations that do not 

rise to the level of requiring formal 

disciplinary proceedings, while 

providing greater flexibility in handling 

certain violations. The Commission 

expects that NYSE Amex will continue 

to conduct surveillance with due 

diligence and make a determination 

based on its findings, on a case-by-case 

basis, whether a fine of more or less 

than the recommended amount is 

appropriate for a violation under the 

MRP or whether a violation requires 

formal disciplinary action under NYSE 

Amex Rule 476. 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act 13 and Rule 

19d–1(c)(2) under the Act,14 that the 

proposed rule change (SR–NYSEAmex– 

2009–45) be, and it hereby is, approved 

and declared effective. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.15

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–23991 Filed 10–5–09; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60744; File No. SR– 

NYSEAmex–2009–62] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change by NYSE 

Amex LLC Amending Rule 900.3NY 

September 29, 2009. 

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

Securities Exchange Act of 1934 (the 

‘‘Act’’) 1 and Rule 19b–4 thereunder,2

notice is hereby given that on 

September 14, 2009, NYSE Amex LLC 

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

with the Securities and Exchange 

Commission (the ‘‘Commission’’) the 

proposed rule change as described in 

Items I and II below, which Items have 

been prepared by the Exchange. The 

Exchange filed the proposed rule change 

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

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

which renders it 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 amend 

Rule 900.3NY to (i) offer PNP Blind 

orders to its Participants and (ii) make 

technical corrections to the numbering 

of Rule 900.3NY. 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 the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

NYSE Amex has an existing order 

type known as PNP (Post No 

Preference) 5 which is a limit order that 

is only to be executed on the Exchange, 

and may be ranked in the Consolidated 

Book if not marketable, but is never to 

be routed. A PNP order that is 

marketable against the NBBO when 

entered is cancelled back to the entering 

ATP Holder. 

Certain ATP Holders have asked for a 

similar order type that will also not 

route if marketable against the NBBO, 

but, unlike a PNP order, will not be 

cancelled if similarly marketable. 

A PNP Blind order is a limit order 

that is to be executed on the Exchange, 

but never routed to another market. The 


jlentini on DSKJ8SOYB1PROD with NOTICES