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
51352 Federal Register / Vol. 74, No. 192 / Tuesday, October 6, 2009 / Notices 

6 15 U.S.C. 78s(b)(3)(A). 

7 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 provided such a 

notice. 

8For 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). 

9See NYSE Arca Rule 6.62(u); see also Securities 

Exchange Act Release No. 59603 (March 19, 2009), 

74 FR 13279 (March 26, 2009) (amending Rule 6.62 

to provide additional order types). 10 17 CFR 200.30–3(a)(12). 

unexecuted portion of a PNP Blind 

order is to be ranked in the 

Consolidated Book. Unlike a 

conventional PNP order, a PNP Blind 

Order that is marketable against the 

NBBO will not be cancelled; however, 

the price and size will not be 

disseminated to OPRA. If the NBBO 

moves so that the PNP Blind Order no 

longer locks or crosses the NBBO, the 

order’s price and size will be 

disseminated. When a PNP Blind order 

is not displayed, it provides price 

improvement to any incoming contraside order. A PNP Blind order will be 

executed at its limit price, if displayed, 

or at a price that matches the contra side 

of the NBBO, if undisplayed. 

The Exchange believes that the 

implementation of the aforementioned 

rule change modifying NYSE Amex 

order entry options will preserve order 

execution opportunities on the NYSE 

Amex market, provide greater control 

over the circumstances of executions, 

and provide an opportunity for 

enhanced executions. 

The Exchange is also making 

technical corrections to the numbering 

of the subparagraphs in Rule 900.3NY. 

2. Statutory Basis 

The Exchange believes the proposed 

rule change is consistent with and 

furthers the objectives of Section 6(b)(5) 

of the Act, in that it is designed to 

promote just and equitable principles of 

trade, remove impediments to and 

perfect the mechanisms of a free and 

open market and a national market 

system and, in general, to protect 

investors and the public interest, by 

providing investors with additional 

order types that allow greater flexibility 

in maintaining compliance with the 

rules, or providing an opportunity for 

enhanced executions, or managing the 

circumstances in which their orders are 

executed. 

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, if consistent with the 

protection of investors and the public 

interest, it has become effective 

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

Act 6 and Rule 19b–4(f)(6) thereunder.7

The Exchange has asked the 

Commission to waive the 30-day 

operative delay. The Commission 

hereby grants the Exchange’s request.8

The proposed rule is identical to that in 

use by NYSE Arca, Inc. (‘‘NYSE Arca’’) 9

and does not raise any novel or 

significant issues. Therefore, the 

Commission believes that waiving the 

30-day period to allow the proposed 

rule change to become operative upon 

filing is consistent with the protection 

of investors and the public interest and 

designates the proposal as 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–NYSEAMEX–2009–62 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–NYSEAmex–2009–62. 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, 

DC 20549–1090 on official business 

days between the hours of 10 a.m. and 

3 p.m. Copies of the filing will also be 

available for inspection and copying at 

the NYSE Amex’s principal office and 

on its Internet Web site at http:// 

www.nyse.com. 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– 

NYSEAmex–2009–62 and should be 

submitted on or before October 27, 

2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–23994 Filed 10–5–09; 8:45 am] 

BILLING CODE 8011–01–P 


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