Federal Register / Vol. 77, No. 36 / Thursday, February 23, 2012 / Notices 10791 

6 15 U.S.C. 78s(b)(2). 

7 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 Exchange Act Release No. 63961 

(February 24, 2011), 76 FR 11542 (March 2, 2011) 

(SR–FINRA–2010–059). FINRA’s rule change 

became effective on January 1, 2012. See FINRA 

Regulatory Notice 11–21. 

5See Securities Exchange Act Release Nos. 56148 

(July 26, 2007), 72 FR 42146 (August 1, 2007) (order 

approving the Agreement); 56147 (July 26, 2007), 72 

FR 42166 (August 1, 2007) (SR–NASD–2007–054) 

(order approving the incorporation of certain NYSE 

Rules as ‘‘Common Rules’’); and 60409 (July 30, 

2009), 74 FR 39353 (August 6, 2009) (order 

approving the amended and restated Agreement, 

adding NYSE Amex LLC as a party). Paragraph 2(b) 

of the Agreement sets forth procedures regarding 

proposed changes by FINRA, NYSE or NYSE Amex 

to the substance of any of the Common Rules. 

6FINRA’s rulebook currently has three sets of 

rules: (1) NASD Rules, (2) FINRA Incorporated 

NYSE Rules, and (3) consolidated FINRA Rules. 

The FINRA Incorporated NYSE Rules apply only to 

those members of FINRA that are also members of 

the NYSE (‘‘Dual Members’’), while the 

consolidated FINRA Rules apply to all FINRA 

members. For more information about the FINRA 

rulebook consolidation process, see FINRA 

Information Notice, March 12, 2008. 

7The purpose of a fidelity bond is to protect a 

member organization against certain types of losses, 

including, but not limited to, those caused by the 

malfeasance of its officers and employees, and the 

effect of such losses on the member organization’s 

capital. 

believes that the proposed rule change 

is consistent with the Act. 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,6 that the 

proposed rule change (SR–CBOE–2011– 

126) be, and it hereby is, approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.7

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2012–4193 Filed 2–22–12; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–66412; File No. SR– 

NYSEAMEX–2012–08] 

Self-Regulatory Organizations; NYSE 

Amex LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Deleting NYSE Amex 

Equities Rule 319, Which Addresses 

Fidelity Bond Requirements, and 

Adopt New Rule Text That Is 

Substantially Similar to FINRA Rule 

4360 

February 16, 2012. 

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 February 

3, 2012, 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, 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 delete 

NYSE Amex Equities Rule 319, which 

addresses fidelity bond requirements, 

and adopt new rule text that is 

substantially similar to FINRA Rule 

4360. 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 delete 

NYSE Amex Equities Rule 319, which 

addresses fidelity bond requirements, 

and adopt new rule text that is 

substantially similar to FINRA Rule 

4360.4

Background 

On July 30, 2007, FINRA’s 

predecessor, the National Association of 

Securities Dealers, Inc. (‘‘NASD’’), and 

NYSE Regulation, Inc. (‘‘NYSER’’) 

consolidated their member firm 

regulation operations into a combined 

organization, FINRA. Pursuant to Rule 

17d–2 under the Act, NYSE, NYSER and 

FINRA entered into an agreement (the 

‘‘Agreement’’) to reduce regulatory 

duplication for their members by 

allocating to FINRA certain regulatory 

responsibilities for certain NYSE rules 

and rule interpretations (‘‘FINRA 

Incorporated NYSE Rules’’). NYSE 

Amex LLC (‘‘NYSE Amex’’) became a 

party to the Agreement effective 

December 15, 2008.5

As part of its effort to reduce 

regulatory duplication and relieve firms 

that are members of FINRA, NYSE and 

NYSE Amex of conflicting or 

unnecessary regulatory burdens, FINRA 

is now engaged in the process of 

reviewing and amending the NASD and 

FINRA Incorporated NYSE Rules in 

order to create a consolidated FINRA 

rulebook.6

Proposed Conforming Amendments to 

NYSE Amex Equities Rules 

The Exchange proposes to delete 

NYSE Amex Equities Rule 319 and 

adopt new NYSE Amex Equities Rule 

4360 to conform to the changes adopted 

by FINRA for fidelity bonds.7 FINRA 

adopted NASD Rule 3020 as FINRA 

Rule 4360, taking into account NYSE 

Rule 319 and its Interpretation. FINRA 

Rule 4360 updates and clarifies fidelity 

bond requirements for member firms 

and better reflects current industry 

practices. The Rule requires each FINRA 

member that is required to join 

Securities Investor Protection 

Corporation to maintain blanket fidelity 

bond coverage with specified amounts 

of coverage based on the member 

organization’s net capital requirement, 

with certain exceptions, and to maintain 

fidelity bond coverage that provides for 

per loss coverage without an aggregate 

limit of liability. 

Because it covers the same topic as 

the new FINRA rule, FINRA deleted 

FINRA Incorporated NYSE Rule 319 and 

its Interpretation. In particular, NYSE 

Rule 319 and its Interpretation generally 

require member organizations to 

maintain minimum amounts of fidelity 

bond coverage for officers and 

employees, and that such coverage 

address losses incurred due to certain 

specified events. To harmonize the 

NYSE Amex Equities Rules with the 

approved FINRA Rules, the Exchange 

correspondingly proposes to delete 

NYSE Amex Equities Rule 319 and to 

adopt proposed NYSE Amex Equities 

Rule 4360. The text of proposed NYSE 

Amex Equities Rule 4360 would be the 

same as FINRA Rule 4360, except that 

the Exchange would substitute the term 

‘‘member organization’’ for ‘‘member’’ 

and ‘‘Exchange’’ for ‘‘FINRA.’’ 

mstockstill on DSK4VPTVN1PROD with NOTICES

10792 Federal Register / Vol. 77, No. 36 / Thursday, February 23, 2012 / Notices 

8 15 U.S.C. 78f(b). 

9 15 U.S.C. 78f(b)(5). 

10 15 U.S.C. 78s(b)(3)(A)(iii). 

11 17 CFR 240.19b–4(f)(6). 

12 17 CFR 240.19b–4(f)(6). 

13 17 CFR 240.19b–4(f)(6)(iii). 

14 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

2. Statutory Basis 

The proposed rule change is 

consistent with Section 6(b) of the Act 8

in general, and furthers the objectives of 

Section 6(b)(5) 9 in particular, in that it 

is designed to prevent fraudulent and 

manipulative acts and practices, to 

promote just and equitable principles of 

trade, to foster cooperation and 

coordination with persons engaged in 

facilitating transactions in securities, 

and to remove impediments to and 

perfect the mechanism of a free and 

open market and a national market 

system. Specifically, the Exchange 

believes that the proposed rule change 

supports the objectives of the Act by 

providing greater harmonization 

between NYSE Amex Equities Rules and 

FINRA Rules of similar purpose, 

resulting in less burdensome and more 

efficient regulatory compliance. In 

particular, all NYSE Amex member 

organizations that are subject to NYSE 

Amex Equities Rule 319 are also subject 

to FINRA Rule 4360 and harmonizing 

these two rules would promote just and 

equitable principles of trade by 

requiring a single standard for fidelity 

bonds. To the extent the Exchange has 

proposed changes that differ from the 

FINRA version of the Rules, such 

changes are technical in nature and do 

not change the substance of the 

proposed NYSE Amex Equities Rules. 

The Exchange also believes that the 

proposed rule change will update and 

clarify the requirements governing 

fidelity bonds, which will promote just 

and equitable principles of trade and 

help to protect investors. 

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 either 

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 Exchange has filed the proposed 

rule change pursuant to Section 

19(b)(3)(A)(iii) of the Act 10 and Rule 

19b–4(f)(6) thereunder.11 Because the 

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 

prior to 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, the 

proposed rule change has become 

effective pursuant to Section 19(b)(3)(A) 

of the Act and Rule 19b–4(f)(6)(iii) 

thereunder. 

A proposed rule change filed under 

Rule 19b–4(f)(6) 12 normally does not 

become operative prior to 30 days after 

the date of the filing. However, pursuant 

to Rule 19b–4(f)(6)(iii),13 the 

Commission may designate a shorter 

time if such action is consistent with the 

protection of investors and the public 

interest. The Exchange has asked the 

Commission to waive the 30-day 

operative delay so that the proposal may 

become operative immediately upon 

filing. 

At any time within 60 days of the 

filing of such proposed rule change, the 

Commission summarily may 

temporarily suspend 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 email to rulecomments@sec.gov. Please include File 

Number SR–NYSEAMEX–2012–08 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–2012–08. This 

file number should be included on the 

subject line if email 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 Web site viewing and 

printing in the Commission’s Public 

Reference Section, 100 F Street NE., 

Washington, DC 20549–1090. Copies of 

the filing will also be available for 

inspection and copying at the NYSE’s 

principal office and on its Internet Web 

site at 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–2012–08 and 

should be submitted on or before March 

15, 2012. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.14

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2012–4151 Filed 2–22–12; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–66410; File No. SR–CHX– 

2012–06] 

Self-Regulatory Organizations; 

Chicago Stock Exchange, Inc.; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change To Amend 

its Fee Schedule To Provide for a New 

Cross Connection Charge and Waive 

Monthly Fees at its New Facility Until 

April 1, 2012 

February 16, 2012. 

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 February 

9, 2012, the Chicago Stock Exchange, 

mstockstill on DSK4VPTVN1PROD with NOTICES