53534 Federal Register / Vol. 74, No. 200 / Monday, October 19, 2009 / Notices 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

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 the NYSE Amex 

LLC. See SR–NYSE Amex–2009–68. 

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 

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). 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60812; File No. SR–NYSE– 

2009–102] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change by New York 

Stock Exchange LLC Amending NYSE 

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, New York Stock Exchange LLC 

(‘‘NYSE’’ or the ‘‘Exchange’’) 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 the selfregulatory 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 Rule 14 (‘‘Non-Regular 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 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 amend 

NYSE Rule 14 (‘‘Non-Regular 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 ‘‘non-regular 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 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 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. 


sroberts on DSKD5P82C1PROD with NOTICES
Federal Register / Vol. 74, No. 200 / Monday, October 19, 2009 / Notices 53535 

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

9 17 CFR 240.19b–4(f)(5). 10 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). 

4 17 CFR 240.19b–4(f)(6). 

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 

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–NYSE–2009–102 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–2009–102. 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–2009–102 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. E9–25113 Filed 10–16–09; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60814; File No. SR–BX– 

2009–063] 

Self-Regulatory Organizations; 

NASDAQ OMX BX, Inc.; Notice of Filing 

and Immediate Effectiveness of 

Proposed Rule Change Relating to 

Strike Price Intervals of $0.50 for 

Options on Stocks Trading at or Below 

$3.00 on the Boston Options Exchange 

Facility 

October 13, 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, October 

6, 2009, NASDAQ OMX BX, Inc. (the 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I and II 

below, which Items have been prepared 

by the self-regulatory organization. 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 the proposal effective 

upon filing with the Commission. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

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 

Supplementary Material to Chapter IV, 

Section 6 (Series of Options Contracts 

Open for Trading) of the Rules of the 

Boston Options Exchange Group, LLC 

(‘‘BOX’’) in order to establish strike 

price intervals of $0.50, beginning at $1, 

for certain option classes whose 

underlying security closed at or below 

$3 in its primary market on the previous 

trading day. The text of the proposed 

rule change is available from the 

principal office of the Exchange, at the 

Commission’s Public Reference Room 

and also on the Exchange’s Internet Web 

site at http:// 

nasdaqomxbx.cchwallstreet.com/ 

NASDAQOMXBX/Filings/. 

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 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 

The purpose of the proposed rule 

change is to expand the ability of 


sroberts on DSKD5P82C1PROD with NOTICES