9648 Federal Register / Vol. 74, No. 42 / Thursday, March 5, 2009 / Notices 

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

2 17 CFR 240.19b–4. 

3 17 CFR 240.19b–4(f)(6). 

4See SR–NYSEALTR–2009–16 (formally 

submitted on February 24, 2009). Because NYSE 

Alternext’s perspective of its member organizations 

differs from those of the NYSE, the rule text 

proposed by the NYSE is not identical to that 

proposed by NYSE Alternext, but is the same in 

substance. 5See Securities Exchange Act Release No. 58673 

(September 29, 2008), 73 FR 57707 (October 3, 

2008) (SR–NYSE–2008–60 and SR–Amex 2008–62) 

(approving the Merger). 6 15 U.S.C. 78f. 

[FR Doc. E9–4738 Filed 3–4–09; 8:45 am] 

BILLING CODE 8011–01–C 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–59469; File No. SR– 

NYSE–2009–19] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change Amending Rule 

300.10T To Provide a Grace Period 

Under That Rule for NYSE Alternext 

U.S. LLC Member Organizations That 

Have Applied for a Trading License to 

Comply With Certain Exchange Rules 

February 27, 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 February 

24, 2009, the 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 and II below, which Items have 

been prepared by NYSE. NYSE has 

designated the proposed rule change as 

constituting a non-controversial rule 

change under Rule 19b–4(f)(6) under the 

Act,3 which renders the proposal 

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 300.10T to provide a grace period 

under that rule for NYSE Alternext US 

LLC member organizations that have 

applied for a trading license to comply 

with certain Exchange rules. 

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 Exchange proposes to amend 

NYSE Rule 300.10T to provide for a sixmonth grace period for NYSE Alternext 

US LLC (‘‘NYSE Alternext’’) member 

organizations that have applied for, but 

not received a trading license, to comply 

with certain Exchange rules. The 

Exchange adopted Rule 300.10T to 

provide a grace period for certain NYSE 

Alternext member organizations seeking 

to trade equities at the Exchange to 

comply with the Exchange membership 

requirements. The proposed amendment 

seeks to clarify the rule to reflect the 

original purpose of the provision. The 

Exchange is submitting this proposed 

filing to conform NYSE Rule 300.10T to 

corresponding changes to Rule 

300.10T—NYSE Alternext Equities, as 

proposed by NYSE Alternext.4

Background of Merger 

As described more fully in a filing 

submitted by the American Stock 

Exchange LLC (‘‘Amex’’) (the ‘‘Merger 

filing’’),5 NYSE Euronext acquired The 

Amex Membership Corporation 

(‘‘AMC’’) pursuant to an Agreement and 

Plan of Merger, dated January 17, 2008 

(the ‘‘Merger’’). In connection with the 

Merger, Amex, a subsidiary of AMC, 

became a subsidiary of NYSE Euronext 

and was renamed NYSE Alternext U.S. 

LLC, and continues to operate as a 

national securities exchange registered 

under Section 6 of the Securities 

Exchange Act of 1934, as amended (the 

‘‘Act’’).6 The effective date of the Merger 

was October 1, 2008. 

As described more fully in the Merger 

filing, in connection with the Mergers, 

Amex demutualized by separating all 

trading rights from equity ownership in 

Amex. As part of the demutualization, 

all trading rights appurtenant to the 

Amex Regular Members’ memberships 

or Options Principal Members’ (‘‘OPM’’) 

memberships were cancelled. 

Immediately following the closing of the 

Mergers, those persons and entities that 

were authorized to trade on the Amex 

before the closing of the Mergers were 

deemed to have satisfied applicable 

qualification requirements necessary to 

trade in NYSE Alternext’s demutualized 

marketplace and were issued a permit at 

no cost to trade on NYSE Alternext (‘‘86 

Trinity Permit’’). The 86 Trinity Permit 

authorizes owners, lessees or nominees 

of Amex Regular Members or OPMs, 

Amex limited trading permit holders, 

and Amex associate members who were 


jlentini on PROD1PC65 with NOTICESEN05MR09.002</GPH>
Federal Register / Vol. 74, No. 42 / Thursday, March 5, 2009 / Notices 9649 

7See Securities Exchange Act Release No. 58705 

(October 1, 2008), 73 FR 58995 (October 8, 2008) 

(SR–Amex 2008–63) (approving the Equities 

Relocation). 

8See Securities Exchange Act Release No. 58705 

(October 1, 2008), 73 FR 58995 (October 8, 2008) 

(SR–Amex 2008–63); Securities Exchange Act 

Release No. 58833 (October 22, 2008), 73 FR 64642 

(October 30, 2008) (SR–NYSE–2008–106); 

Securities Exchange Act Release No. 58839 (October 

23, 2008), 73 FR 64645 (October 30, 2008) (SR– 

NYSEALTR–2008–03); Securities Exchange Act 

Release No. 59022 (November 26, 2008), 73 FR 

73683 (December 3, 2008) (SR–NYSEALTR–2008– 

10); and Securities Exchange Act Release No. 59027 

(November 28, 2008), 73 FR 73681 (December 3, 

2008) (SR–NYSEALTR–2008–11). 

9See Securities Exchange Act Release No. 58673 

(September 29, 2008), 73 FR 57707 (October 3, 

2008) (SR–NYSE–2008–60 and SR–Amex 2008–62) 

(approving the Merger). 

10See Securities Exchange Act Release No. 58706 

(Oct. 1, 2008), 73 FR 59019 (Oct. 8, 2008) (SR– 

NYSE–2008–70). 

authorized to trade on the Amex 

immediately before the Mergers to 

continue to trade at NYSE Alternext’s 

systems and facilities at 86 Trinity 

Place, New York, New York (the ‘‘86 

Trinity Trading Systems’’). NYSE 

Alternext recognizes the former Amex 

(i) owners, lessees, or nominees of 

Regular Members or OPMs, (ii) limited 

trading permit holders, and (iii) 

associate members as either NYSE 

Alternext member organizations or 

members, as applicable. 

In connection with the Merger, on 

December 1, 2008, NYSE Alternext 

relocated all equities trading conducted 

on its 86 Trinity Trading Systems to 

trading systems and facilities located at 

11 Wall Street, New York, New York 

(the ‘‘Equities Relocation’’). The 

Exchange’s equity trading systems and 

facilities at 11 Wall Street (the ‘‘NYSE 

Alternext Trading Systems’’) are 

operated by the NYSE on behalf of 

NYSE Alternext.7

As part of the Equities Relocation, 

NYSE Alternext adopted NYSE Rules 1– 

1004, subject to such changes as 

necessary to apply the Rules to NYSE 

Alternext, as the NYSE Alternext 

Equities Rules to govern trading on the 

NYSE Alternext Trading Systems (the 

‘‘Equities Rule filing’’).8 The NYSE 

Alternext Equities Rules, which became 

operative on December 1, 2008, are 

substantially identical to the current 

NYSE Rules 1–1004 and NYSE 

Alternext continues to update the NYSE 

Alternext Equities Rules as necessary to 

conform with rule changes to 

corresponding NYSE Rules filed by the 

NYSE. 

Similarly, NYSE Alternext will 

relocate all options trading conducted 

on the 86 Trinity Trading Systems to 

new facilities of NYSE Alternext to be 

located at 11 Wall Street, which 

facilities will utilize a trading system 

based on the options trading system 

used by NYSE Arca, Inc. (‘‘NYSE Arca’’) 

(‘‘Options Relocation,’’ and, together 

with the Equities Relocation, the 

‘‘Relocations’’). After the Options 

Relocation, no products will trade on 86 

Trinity Trading Systems. 

As set forth in more detail in the 

Merger filing, an 86 Trinity Permit 

holder is eligible to obtain an NYSE 

Alternext equities trading license or 

options trading permit (‘‘ATP’’) 

pursuant to an expedited ‘‘waive in’’ 

process up to the Options Relocation 

date. After the Equities Relocation, an 

86 Trinity Permit entitles holders only 

to trade products other than those that 

have relocated to NYSE Alternext 

Trading Systems. As a result of the 

Equities Relocation, as well as the 

discontinuation of Exchange Traded 

Fund (‘‘ETF’’) and bond trading at 86 

Trinity Place, 86 Trinity Permits 

currently only entitle holders to trade 

listed options on NYSE Alternext. After 

the Options Relocation, the 86 Trinity 

Permits will be cancelled.9 Stated 

otherwise, an 86 Trinity Permit may not 

be used to trade equities on NYSE 

Alternext Trading Systems and a trading 

license under Rule 300—NYSE 

Alternext Equities must be obtained. 

Upon the Options Relocation, a former 

86 Trinity Permit holder will need an 

ATP to trade options on NYSE Alternext 

Trading Systems and the 86 Trinity 

Permit will no longer entitle the holder 

to trade any products at NYSE 

Alternext. 

NYSE Trading License Requirements 

To trade at the Exchange, a broker 

dealer must be an NYSE member 

organization and obtain a trading 

license pursuant to NYSE Rule 300. 

Because the rules governing 

membership for NYSE Alternext 

Equities are identical to Exchange rules, 

pursuant to NYSE Rule 2.10, an NYSE 

Alternext member organization 

approved under Rule 2(b)—NYSE 

Alternext Equities is deemed approved 

as an Exchange member organization. If 

an 86 Trinity Permit holder seeks an 

equities trading license under Rule 

300—NYSE Alternext Equities, such 86 

Trinity Permit holder is deemed 

approved under Rule 2(b)—NYSE 

Alternext Equities, and thus under 

NYSE Rule 2.10, is deemed approved as 

an NYSE member organization. If an 86 

Trinity Permit holder does not apply for 

an equities trading license under Rule 

300—NYSE Alternext Equities, neither 

the NYSE or NYSE Alternext Equities 

member organization requirements are 

triggered. 

Pursuant to Rule 300.10T—NYSE 

Alternext Equities, an NYSE Alternext 

member organization that applies for an 

equities trading license under Rule 

300—NYSE Alternext Equities has a sixmonth grace period within which to 

comply with NYSE Alternext Equities 

membership requirements. Similarly, 

NYSE Rule 300.10T provides a sixmonth grace period for those NYSE 

Alternext member organizations that are 

deemed approved as an NYSE member 

organization under NYSE Rule 2.10 and 

were a valid 86 Trinity Permit holder to 

comply with Exchange membership 

requirements. 

As described in more detail in the 

rule filing adopting Rule 300.10T,10 the 

six-month grace period provides time 

for NYSE Alternext member 

organizations to comply with NYSE 

Rules 2 (defining the terms members 

and member organizations), 300–308 

(governing the admission of members 

and member organizations), 311 (the 

formation and approval of member 

organizations), 312 (changes within 

member organizations), and 313 

(submission of partnership articles and 

corporate documents) (collectively, the 

‘‘NYSE Member Organization Rules’’). 

Among the differing requirements of 

the NYSE Member Organization Rules 

as compared to the Amex rules that 

governed membership at the Amex 

before the Merger, an Exchange member 

organization must be a member of the 

Financial Industry Regulatory 

Authority, Inc. (‘‘FINRA’’). In addition, 

unlike the Amex rules, NYSE Rule 

313.20 requires member organizations to 

submit to the Exchange an opinion of 

counsel that a member corporation’s 

stock is validly issued and outstanding 

and that the restrictions and provisions 

required by the Exchange on the 

transfer, issuance, conversion and 

redemption of its stock have been made 

legally effective. 

The current six-month grace period 

under Rule 300.10T begins to run from 

the date that an NYSE Alternext 

member organization receives its 

equities trading license in exchange for 

the equities portion of a valid 86 Trinity 

Permit. However, a subset of NYSE 

Alternext member organizations that 

have applied for a trading license are 

not FINRA members. As a result, such 

NYSE Alternext member organizations 

were not issued a trading license. 

Because these NYSE Alternext member 

organizations have not been issued a 

trading license, the grace period within 

which to comply with the NYSE 

Member Organization Rules has not 

been triggered. 


jlentini on PROD1PC65 with NOTICES
9650 Federal Register / Vol. 74, No. 42 / Thursday, March 5, 2009 / Notices 

11 15 U.S.C. 78f(b)(5). 

12 15 U.S.C. 78k–1(a)(1). 

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. NYSE has satisfied this requirement. 

15 17 CFR 240.19b–4(f)(6). 

16 17 CFR 240.19b–4(f)(6). 

17For 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). 

Proposed Amendment to Rule 300.10T 

To reflect the intent of the original 

adoption of Rule 300.10T, i.e., to 

provide a grace period for NYSE 

Alternext member organizations seeking 

to obtain a trading license to trade 

securities listed on the Exchange to 

comply with the NYSE Member 

Organization Rules, the Exchange 

proposes to amend Rule 300.10T to also 

provide for a six-month grace period for 

those NYSE Alternext member 

organizations that have applied for, but 

have not been issued a trading license. 

As proposed, to be eligible for the 

grace period, an NYSE Alternext 

member organization must be a holder 

of a valid 86 Trinity Permit as of the 

date that it applied for an equities 

trading license. In other words, once the 

86 Trinity Permits are cancelled, i.e., the 

Options Relocation date, an NYSE 

Alternext member organization would 

not be eligible for a Rule 300.10T grace 

period. The current rule requires that 

the NYSE Alternext member 

organization has been approved as an 

Exchange member organization. Because 

the trigger for Exchange membership is 

obtaining an NYSE Alternext equities 

trading license, the Exchange proposes 

to add that an NYSE Alternext member 

organization that seeks to become an 

Exchange member organization by 

applying for a trading license would 

also be eligible, so long as such NYSE 

Alternext member organization held a 

valid 86 Trinity Permit at the time it 

applied for an equities trading license. 

As proposed, if a member 

organization meets the amended 

eligibility threshold, it has six months 

from the earlier of either receiving the 

equity trading license (which is the 

current standard) or the cancellation of 

the 86 Trinity Permits (the Options 

Relocation date) within which to 

comply with the NYSE Membership 

Rules, including the FINRA 

requirement. By adding the cancellation 

of the 86 Trinity Permits as a trigger for 

the six-month grace period, the 

proposed rule provides those NYSE 

Alternext member organizations that 

applied for a trading license, but were 

not issued a trading license because 

they are not currently FINRA members, 

time to meet the NYSE Member 

Organization Rule requirements. This 

proposed amended rule conforms to the 

rule amendments proposed by NYSE 

Alternext in its companion filing. 

As is currently part of the rule, if an 

NYSE Alternext member organization 

that has been issued a trading license, 

or which applied for a trading license, 

fails to meet the requirements of the 

NYSE Member Organization Rules by 

the close of the grace period applicable 

to that member organization, the 

Exchange would either revoke the 

member organization’s approval to 

trade, if a trading license has already 

been issued, or not issue a trading 

license. 

2. Statutory Basis 

The statutory basis for the proposed 

rule change is Section 6(b)(5) of the 

Act 11 which requires the rules of an 

exchange 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 proposed rule 

change also is designed to support the 

principles of Section 11A(a)(1) 12 of the 

Act in that it seeks to assure fair 

competition among brokers and dealers 

and among exchange markets and the 

practicability of brokers executing 

investor’s orders in the best market. 

Specifically, the Exchange already 

permits an NYSE Alternext member 

organization to be automatically deemed 

approved as an NYSE member 

organization. Moreover, the Exchange 

permitted NYSE Alternext member 

organizations with a valid 86 Trinity 

Permit to exchange such permit for both 

an NYSE Alternext and NYSE equity 

trading license. This filing would 

simply provide those eligible NYSE 

Alternext member organizations with a 

valid 86 Trinity Permit additional time 

to exchange their 86 Trinity Permit for 

an NYSE equity trading license and to 

comply with Exchange membership 

requirements without first having to 

apply as a new member organization. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will result in 

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, it has 

become effective pursuant to Section 

19(b)(3)(A) of the Act 13 and Rule 19b– 

4(f)(6) thereunder.14

A proposed rule change filed 

pursuant to Rule 19b–4(f)(6) under the 

Act 15 normally does not become 

operative for 30 days after the date of its 

filing. However, Rule 19b–4(f)(6) 16

permits the Commission to designate a 

shorter time if such action is consistent 

with the protection of investors and the 

public interest. NYSE requests that the 

Commission waive the 30-day operative 

delay because the Options Relocation 

date is imminent and is currently 

scheduled for March 2, 2009, and the 

Exchange needs to immediately 

implement this rule change so that 

NYSE Alternext member organizations 

can meet the new rule requirements. For 

these reasons, the Commission believes 

that waiving the 30-day operative 

delay 17 is consistent with the protection 

of investors and the public interest and 

designates the proposal 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 


jlentini on PROD1PC65 with NOTICES
Federal Register / Vol. 74, No. 42 / Thursday, March 5, 2009 / Notices 9651 

18 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3 17 CFR 240.19b–4(f)(6). 

4The New York Stock Exchange LLC (‘‘NYSE’’) 

is proposing conforming amendments to its Rule 

300.10T. Because NYSE Alternext’s perspective of 

its member organizations differs from those of the 

NYSE, the rule text proposed by the NYSE is not 

identical to that proposed by NYSE Alternext, but 

is the same in substance. See SR–NYSE–2009–19 

(formally submitted on February 24, 2009). 

5See Securities Exchange Act Release No. 58673 

(September 29, 2008), 73 FR 57707 (October 3, 

2008) (SR–NYSE–2008–60 and SR–Amex 2008–62) 

(approving the Merger). 

6 15 U.S.C. 78f. 

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

Number SR–NYSE–2009–19 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–2009–19. 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–2009–19 and should 

be submitted on or before March 26, 

2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.18

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–4677 Filed 3–4–09; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–59468; File No. SR– 

NYSEALTR–2009–16] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change by NYSE 

Alternext US LLC Amending Rule 

300.10T—NYSE Alternext Equities To 

Provide a Grace Period Under That 

Rule for Member Organizations That 

Have Applied for a Trading License To 

Comply With Certain Exchange Rules 

February 27, 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 February 

24, 2009, NYSE Alternext US, LLC 

(‘‘NYSE Alternext’’ or 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 Exchange. NYSE 

Alternext has designated the proposed 

rule change as constituting a noncontroversial rule change under Rule 

19b–4(f)(6) under the Act,3 which 

renders the proposal 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 300.10T—NYSE Alternext Equities 

to provide a grace period under that rule 

for member organizations that have 

applied for a trading license to comply 

with certain Exchange rules. 

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 

Rule 300.10T—NYSE Alternext Equities 

(‘‘Rule 300.10T’’) to provide for a sixmonth grace period for member 

organizations that have applied for, but 

not received a trading license, to comply 

with certain Exchange rules. The 

Exchange intended Rule 300.10T to 

provide holders of a valid permit to 

trade on the NYSE Alternext systems 

and facilities located at 86 Trinity Place 

(‘‘86 Trinity Permit’’) seeking to trade 

equities at the Exchange with a grace 

period to comply with the Exchange 

membership requirements under the 

NYSE Alternext Equities rules. The 

proposed amendment seeks to clarify 

the rule to reflect the original purpose 

of the provision.4

Background of Merger 

As described more fully in a related 

rule filing (the ‘‘Merger filing’’),5 NYSE 

Euronext acquired The Amex 

Membership Corporation (‘‘AMC’’) 

pursuant to an Agreement and Plan of 

Merger, dated January 17, 2008 (the 

‘‘Merger’’). In connection with the 

Merger, the Exchange’s predecessor, the 

American Stock Exchange LLC 

(‘‘Amex’’), a subsidiary of AMC, became 

a subsidiary of NYSE Euronext and was 

renamed NYSE Alternext US LLC 

(‘‘NYSE Alternext’’ or the ‘‘Exchange’’), 

and continues to operate as a national 

securities exchange registered under 

Section 6 of the Securities Exchange Act 

of 1934, as amended (the ‘‘Act’’).6 The 

effective date of the Merger was October 

1, 2008. 

As described more fully in the Merger 

filing, in connection with the Mergers, 

Amex demutualized by separating all 

trading rights from equity ownership in 

Amex. As part of the demutualization, 

all trading rights appurtenant to the 

Amex Regular Members’ memberships 

or Options Principal Members’ (‘‘OPM’’) 

memberships were cancelled. 

Immediately following the closing of the 

Mergers, those persons and entities that 


jlentini on PROD1PC65 with NOTICES