Federal Register / Vol. 74, No. 200 / Monday, October 19, 2009 / Notices 53537 

11 15 U.S.C. 78f(b). 12 15 U.S.C. 78f(b)(5). 13 15 U.S.C. 78s(b)(3)(A). 14 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 Exchange has satisfied this 

requirement. 

15See Securities Exchange Act Release No. 60694 

(September 18, 2009), 74 FR 49048 (September 25, 

2009) (SR–Phlx–2009–65) (order approving a $0.50 

strike program substantially the same as the $0.50 

Strike Program proposed by the Exchange). 

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 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

2. Statutory Basis 

The Exchange believes that the 

proposal is consistent with the 

requirements of Section 6(b) of the 

Act,11 in general, and Section 6(b)(5) of 

the Act,12 in particular, in that it is 

designed to foster cooperation and 

coordination with persons engaged in 

regulating, clearing, settling, processing 

information with respect to, and 

facilitating transactions in securities, to 

remove impediments to and perfect the 

mechanism for a free and open market 

and a national market system and, in 

general, to protect investors and the 

public interest, by expanding the ability 

of investors to hedge risks associated 

with stocks trading at or under $3. The 

proposal should create greater trading 

and hedging opportunities and 

flexibility and provide customers with 

the ability to more closely tailor 

investment strategies to the price 

movement of the underlying stocks, 

trading in many of which is highly 

liquid. 

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 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 has neither solicited 

nor received comments on 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 after the date of 

the filing, 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 19(b)(3)(A) 

of the Act 13 and Rule 19b–4(f)(6) 

thereunder.14

The Exchange has requested that the 

Commission waive the 30-day operative 

delay to permit the Exchange to 

compete effectively with other options 

exchanges offering a similar $.50 Strike 

Program. The Commission recently 

approved SR–Phlx–2009–65,15 and 

therefore finds that waiver of the 

operative delay is consistent with the 

protection of investors and the public 

interest because such waiver will 

encourage fair competition among the 

exchanges. 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–BX–2009–063 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–BX–2009–063. 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 the 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–BX–2009–063 and should 

be submitted on or before November 9, 

2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.17

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–25114 Filed 10–16–09; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60811; File No. SR– 

NYSEAmex–2009–68] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change by NYSE 

Amex LLC Amending NYSE Amex 

Equities Rule 14 To Be Consistent With 

the New System Capability To Receive 

Orders for Execution on the Exchange 

Containing Settlement Instructions of 

‘‘Cash,’’ ‘‘Next Day’’ and ‘‘Seller’s 

Option’’ Directly to a Floor Broker’s 

Hand-Held Device 

October 9, 2009. 

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

Securities Exchange Act of 1934 

(‘‘Act’’) 2 and Rule 19b-4 thereunder,3

notice is hereby given that on October 

1, 2009, NYSE Amex LLC (‘‘Exchange’’ 

or ‘‘NYSE Amex’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I, II, and 


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53538 Federal Register / Vol. 74, No. 200 / Monday, October 19, 2009 / Notices 

4Orders indicating cash settlement instructions 

require delivery of the securities on the same day 

as the trade date. Next day settlement instructions 

require delivery of the securities on the first 

business day following the trade date. Orders that 

have settlement instructions of seller’s option afford 

the seller the right to deliver the security or bond 

at any time within a specified period, ranging from 

not less than two business days to not more than 

sixty days for securities and not less than two 

business days and no more than sixty days for U.S. 

government securities. 

Odd-lot orders containing non-regular way 

settlement instructions are not permitted. 

5The Exchange notes that parallel changes are 

proposed to be made to the rules of New York Stock 

Exchange LLC. See SR–NYSE–2009–102. 

6Orders sent directly to the hand-held device, 

including those containing non-regular way 

settlement instructions, are systemically 

transmitted to the ‘‘Front End Systemic Capture’’ 

(‘‘FESC’’) consistent with the requirements of NYSE 

Amex Equities Rule 123, which requires floor 

brokers to enter the details of an order, including 

any modification or cancellation, into a system 

which electronically timestamps the time of entry 

prior to representing or executing that order on the 

Floor. 

7 15 U.S.C. 78f(b)(5). 

8 15 U.S.C. 78s(b)(3)(A). 

9 17 CFR 240.19b–4(f)(5). 

III below, which Items have been 

prepared by the self-regulatory 

organization. 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 

NYSE Amex Equities Rule 14 (‘‘NonRegular Way Settlement Instructions for 

Orders’’) to be consistent with the new 

system capability to receive orders for 

execution on the Exchange containing 

settlement instructions of ‘‘cash,’’ ‘‘next 

day’’ and ‘‘seller’s option’’ directly to a 

Floor broker’s hand-held device. The 

text of the proposed rule change is 

available at the Exchange, the 

Commission’s Public Reference Room, 

and 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 amend 

NYSE Amex Equities Rule 14 (‘‘NonRegular Way Settlement Instructions for 

Orders’’) to be consistent with its new 

system capability to receive orders 

containing settlement instructions of 

‘‘cash,’’ ‘‘next day’’ and ‘‘seller’s option’’ 

(collectively referred to herein as ‘‘nonregular way settlement’’ 4) directly to a 

Floor broker’s hand-held device.5

Currently, Designated Market Maker 

units do not have order handling 

responsibility for orders containing nonregular way settlement instructions. 

Moreover, Exchange systems that route 

orders to the Display Book do not accept 

orders containing non-regular way 

instructions. Routing orders directly to 

a Floor broker booth location via the 

Broker Booth Support System (‘‘BBSS’’) 

for representation on the Floor is the 

only acceptable way for orders with 

non-regular way settlement instructions 

to be transmitted to the Exchange. 

Pursuant to NYSE Amex Equities Rule 

14 customers that seek to execute orders 

containing non-regular way settlement 

instructions must directly transmit 

those orders via BBSS directly to a Floor 

broker for representation in the trading 

crowd because at the time the Exchange 

established this capability, BBSS was 

the only Exchange system capable of 

accepting such orders. As a result 

customers are currently prohibited from 

transmitting orders containing nonregular settlement instructions directly 

to a Floor broker’s hand-held device. 

The Exchange has currently enhanced 

its systems to enable hand-held devices 

to receive and process orders containing 

non-regular way settlement 

instructions.6 As such, through this 

filing the Exchange seeks to provide its 

customers that seek to execute orders 

containing non-regular way settlement 

instructions with an additional systemic 

option for transmitting such orders to a 

Floor broker for representation on the 

Floor. The Exchange therefore proposes 

to amend NYSE Amex Equities Rule 

14(a)(ii) to remove the words ‘‘booth 

system’’ and permit customers to 

transmit orders containing non-regular 

way settlement instructions to a Floor 

broker via either BBSS or a Floor 

broker’s hand-held device. 

The Exchange believes that the instant 

proposal better facilitates the needs of 

its customers to submit orders 

containing instructions for non-regular 

way settlement and maintains effective 

representation of such customer orders 

in the Exchange’s current market. 

The Exchange will commence 

installation of the new technology in 

Floor broker hand-held devices on or 

about October 5, 2009, with expected 

completion no later than October 30, 

2009. 

2. Statutory Basis 

The basis under the Securities 

Exchange Act of 1934 (the ‘‘Act’’) [sic] 

for this proposed rule change is the 

requirement under Section 6(b)(5) 7 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 instant filing 

accomplishes these goals by providing 

its customers with an additional method 

to enter orders containing non-regular 

way settlement instructions, without 

changing the ability of such orders to be 

represented at the point of sale in the 

Exchange’s auction 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 

The proposed rule change is filed 

pursuant to paragraph (A) of Section 

19(b)(3) 8 and Rule 19b–4(f)(5).9 This 

proposed rule change effects a change in 

an existing order entry or trading system 

of a self-regulatory organization that: (A) 

Does not significantly affect the 


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Federal Register / Vol. 74, No. 200 / Monday, October 19, 2009 / Notices 53539 

10 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. 

4See Securities and Exchange Act Release No. 

597755 [sic] (April 13, 2009) 74 FR 18009 (April 20, 

2009) (SR–NYSEALTR–2009–15). 

5The Exchange notes that parallel changes are 

proposed to be made to the rules of New York Stock 

Exchange LLC. See SR–NYSE–2009–104. 

6See NYSE Amex Equities Rule 123C(8)(a)(1). 

protection of investors or the public 

interest; (B) does not impose any 

significant burden on competition, and 

(C) does not have the effect of limiting 

the access to or availability of the 

system. The Exchange believes that the 

instant proposal is consistent with these 

provisions in that the enhancements to 

Exchange systems allow Floor broker 

hand-held devices to receive and 

process orders containing non-regular 

way instruction and do not change the 

operation of the rule in any other way. 

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–NYSEAmex–2009–68 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–2009–68. 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–NYSEAmex–2009–68 and 

should be submitted on or before 

November 9, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–25112 Filed 10–16–09; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60808; File No. SR– 

NYSEAmex–2009–70] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change by NYSE 

Amex LLC Amending NYSE Amex 

Equities Rule 123C(8)(a)(1) To Extend 

the Operation of the Extreme Order 

Imbalances Pilot 

October 9, 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 October 

5, 2009, NYSE Amex LLC (the 

‘‘Exchange’’ or ‘‘NYSE Amex’’) 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 self-regulatory 

organization. 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 

NYSE Amex Equities Rule 123C(8)(a)(1) 

to extend the operation of the pilot to 

temporarily suspend certain NYSE 

requirements relating to the closing of 

securities on the Exchange until the 

earlier of Securities and Exchange 

Commission approval to make such 

pilot permanent or December 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. 

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 

NYSE Amex Equities Rule 

123C(8)(a)(1) allows the Exchange to 

temporarily suspend certain rule 

requirements at the close when extreme 

order imbalances may cause significant 

dislocation to the closing price. The rule 

has operated on a pilot basis since April 

2009 (‘‘Extreme Order Imbalances Pilot’’ 

or Pilot).4 Through this filing, NYSE 

Amex proposes to extend the Pilot until 

the earlier of Securities and Exchange 

Commission approval to make such 

Pilot permanent or December 31, 2009.5

Background 

Pursuant to NYSE Amex Equities Rule 

123C(8)(a)(1), the Exchange may 

suspend NYSE Amex Equities Rules 52 

(Hours of Operation) to resolve an 

extreme order imbalance that may result 

in a closing price dislocation at the 

close as a result of an order entered into 

Exchange systems, or represented to a 

DMM orally at or near the close.6 The 

provisions of NYSE Amex Equities Rule 

123C(8)(a)(1) operate as the Extreme 

Order Imbalance Pilot. 

As a condition of the approval to 

operate the Pilot, the Exchange 

committed to provide the Commission 

with information regarding: (i) How 


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