Federal Register / Vol. 74, No. 44 / Monday, March 9, 2009 / Notices 10109 

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. 58673 

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

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

(approving the Merger). 

5 15 U.S.C. 78f. 

6See Securities Exchange Act Release No. 58705 

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

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

Relocation). 

7See Securities Exchange Act Release No. 59142 

(December 22, 2008), 73 FR 80494 (December 31, 

2008) (SR–NYSEALTR–2008–14) (notice of filing 

for Options Relocation), as amended. 

8Pursuant to the definitions of ‘‘Floor’’ in Rule 

6—NYSE Alternext Equities and NYSE Rule 6, the 

NYSE and NYSE Alternext Equities Trading Floors 

overlap and thus references in the proposed rule 

text as well as in the 19b–4 to ‘‘Equities Trading 

Floor’’ by default include the NYSE Trading Floor. 

The NYSE has proposed corresponding rule 

changes for its members and member organizations. 

See SR–NYSE–2009–23 (formally submitted March 

2, 2009). 

9See NYSE/NYSE Alternext Information Memo 

08–66 (December 22, 2008). 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–59480; File No. SR– 

NYSEALTR–2009–21] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change by NYSE 

Alternext US LLC Adopting New Rule 

6A—NYSE Alternext Equities and 

Amending Existing Rule 36—NYSE 

Alternext Equities Concerning the Use 

of Personal Portable or Wireless 

Communication Devices and the Use 

or Possession of Wireless Trading 

Devices On and Off the Exchange 

Trading Floor 

March 2, 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 March 2, 

2009, NYSE Alternext US LLC (‘‘NYSE 

Alternext’’ 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 

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 adopt new 

Rule 6A—NYSE Alternext Equities 

(‘‘Trading Floor’’) and amend existing 

Rule 36—NYSE Alternext Equities 

(Communications Between Exchange 

and Members’ Offices) concerning (i) 

the use of personal portable or wireless 

communication devices, and (ii) the use 

or possession of wireless trading devices 

on and off the Exchange Trading Floor. 

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 purpose of the proposed rule 

changes is to adopt new Rule 6A— 

NYSE Alternext Equities (‘‘Trading 

Floor’’) and amend existing Rule 36— 

NYSE Alternext Equities 

(Communications Between Exchange 

and Members’ Offices) concerning (i) 

the use of personal portable or wireless 

communication devices, and (ii) the use 

or possession of wireless trading devices 

on and off the Exchange Trading Floor. 

Background 

As described more fully in a related 

rule filing,4 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 called 

NYSE Alternext US LLC, and continues 

to operate as a national securities 

exchange registered under Section 6 of 

the Act.5 The effective date of the 

Merger was October 1, 2008. 

In connection with the Merger, on 

December 1, 2008, the Exchange 

relocated all equities trading conducted 

on the Exchange legacy trading systems 

and facilities located at 86 Trinity Place, 

New York, New York (the ‘‘86 Trinity 

Trading Systems’’), to trading systems 

and facilities located at 11 Wall Street, 

New York, New York (the ‘‘Equities 

Relocation’’).6 Similarly, effective 

March 2, 2009, the Exchange will 

relocate all options trading conducted 

on the 86 Trinity Trading Systems to 

trading systems and facilities located at 

11 Wall Street (the ‘‘Options 

Relocation’’).7

Upon the Options Relocation, the 

Exchange’s Options and Equities 

Trading Floors will be located in 

physically separate, adjacent rooms 

within the 11 Wall Street building. 

Access to the Trading Floors is 

restricted at each entrance by turnstiles 

and only authorized visitors, members 

or member firm employees are 

permitted to enter. Both Trading Floors 

will be managed and overseen by 

employees of the Exchange’s corporate 

parent, NYSE Euronext. 

Proposed Rule Changes 

In order to accommodate the Options 

Relocation and the presence of the 

Exchange’s Options Trading Floor 

adjacent to the Exchange’s Equities 

Trading Floor, the Exchange proposes 

the following rule changes. 

1. New Rule 6A—NYSE Alternext 

Equities (‘‘Trading Floor’’) 

Under Rule 6—NYSE Alternext 

Equities, the term ‘‘Floor’’ is defined as 

having the meaning provided the term 

under the Act and the related rules and 

regulations.8 In addition, the Exchange 

has issued interpretive guidance that the 

‘‘Floor’’ also includes the areas outside 

the ‘‘Blue Line’’ (member and member 

organization booths adjacent to the 

trading Floor) and ‘‘any area reserved 

primarily for members, including the 

members’’ lounges and the members’ 

bathrooms.’’ 9

The current definition of ‘‘Floor’’ 

under Rule 6—NYSE Alternext Equities 

would, upon the Options Relocation, 

include the Exchange’s Options Trading 

Floor. This could lead to confusion 

under Exchange Rules when discussing 

the ‘‘Floor’’ and the ‘‘Trading Floor’’. 

The Exchange therefore proposes to 

adopt a new Rule 6A—NYSE Alternext 

Equities to define the term ‘‘Trading 

Floor’’ to make it clear that, within the 

area of the ‘‘Floor’’ of the Exchange as 

technically defined by Rule 6, there are 

distinct, restricted-access areas where 

equities trading is conducted by the 

Exchange on the one hand and options 

trading on the other. Under the new 

proposed Rule 6A—NYSE Alternext 

Equities, the term ‘‘Trading Floor’’ 

means the restricted-access physical 

areas designated by the Exchange for the 

trading of equities securities, commonly 

known as the ‘‘Main Room’’ and the 

‘‘Garage.’’ The Exchange’s Trading Floor 

does not include the areas where NYSE 

Alternext-listed options are traded, 

commonly known as the ‘‘Blue Room’’ 

and the ‘‘Extended Blue Room’’. For the 


dwashington3 on PROD1PC60 with NOTICES
10110 Federal Register / Vol. 74, No. 44 / Monday, March 9, 2009 / Notices 

10All members and member firm employees who 

use an authorized portable phone must execute a 

written acknowledgement as to the usage of the 

phone and authorizing the Exchange to receive data 

and records related to incoming and outgoing calls. 

See NYSE Information Memos 08–40 (August 14, 

2008) and 08–41 (August 14, 2008) (concerning the 

use of Exchange authorized and issued portable 

phones on the Floor, incorporated by reference in 

joint NYSE/NYSE Alternext Information Memo 08– 

66). 

11The Exchange’s Wireless Communications Plan 

governing the use of wireless handheld trading 

devices on the Equities Trading Floor is the same 

as the NYSE’s, which was previously approved by 

the Commission. See Securities Exchange Act 

Release No. 36156 (August 25, 1995), 60 FR 45756 

(September 1, 1995) (SR–NYSE–1995–22) and 

Securities Exchange Act Release No. 39379 

(December 1, 1997), 62 FR 64615 (December 8, 

1997) (SR–NYSE–1997–17). 

12Rule 70.30—NYSE Alternext Equities defines 

the ‘‘Crowd’’ as ‘‘[t]he rooms on the Exchange Floor 

that contain active posts/panels where Floor 

brokers are able to conduct business[.]’’ This is, 

essentially, the ‘‘Trading Floor’’ as defined in 

proposed Rule 6A—NYSE Alternext Equities. 

13Proposed Rule 36.70—NYSE Alternext Equities 

is based on the Exchange’s proposed Options Rules 

902(g) and (h). See Securities Exchange Act Release 

No. 59142 (December 22, 2008), 73 FR 80494 

(December 31, 2008) (SR–NYSEALTR–2008–14), as 

amended. 

14 15 U.S.C. 78f(b)(5). 

15 15 U.S.C. 78k–1(a)(1). 

purposes of the Exchange’s Equities 

Rules, as well as this filing, these areas 

will be referred to as the ‘‘NYSE 

Alternext Options Trading Floor’’. 

By adopting this new Rule, the 

Exchange seeks to prevent any 

confusion that may arise under 

Exchange Rules and to provide a more 

accurate description of the physical 

areas of the Floor where different types 

of trading are actually conducted. In 

addition, as described below, this new 

Rule would also make it easier for the 

Exchange to define areas where certain 

conduct is or is not permitted by its 

members and member firm employees. 

2. Use of Personal Portable or Wireless 

Communication Devices 

Rule 36—NYSE Alternext Equities 

currently prohibits, without prior 

Exchange approval, members and 

member organizations from establishing 

or maintaining any telephonic or 

electronic communication, including 

the usage of any portable or wireless 

communication devices (i.e. cellular 

phone, wireless pager, BlackBerry TM, 

etc.), between the Floor and any other 

location. Under the Rule, Floor brokers 

may use Exchange authorized and 

issued portable phones on the Floor, 

subject to certain restrictions (see Rules 

36.20—.21—NYSE Alternext 

Equities).10 Designated Market Makers 

(DMMs) may not use any portable or 

wireless communication devices on the 

Floor although they may, subject to 

restriction, maintain at their posts 

telephone lines and wired or wireless 

devices that are registered with the 

Exchange (see Rule 36.30—NYSE 

Alternext Equities). The use of all other 

portable or wireless communication 

devices on the Floor is prohibited. 

Although it would be prohibited 

under the current framework of Rule 

36—NYSE Alternext Equities, to 

eliminate any potential confusion 

arising from the Options Relocation, the 

Exchange proposes to include a 

provision in Rule 36.23—NYSE 

Alternext Equities that expressly 

prohibits members and member firm 

employees from using personal portable 

or wireless communications devices on 

the NYSE Alternext Options Trading 

Floor. However, those members and 

employees of member organizations that 

are also registered to trade options on 

the Exchange will be permitted to use 

personal portable or wireless 

communications devices while on the 

Exchange’s Options Trading Floor in 

accordance with applicable Exchange 

Options rules and regulations, including 

Rule 220. 

The Exchange also proposes 

corresponding amendments to Rules 

36.20—[sic] and .21—NYSE Alternext 

Equities to provide that Floor brokers 

may not use an Exchange authorized 

and provided portable phone used to 

trade equities while on the Exchange 

Options Trading Floor, and including 

other technical changes. 

3. Use or Possession of Wireless Trading 

Devices 

Currently, Exchange members and 

member firm employees are permitted 

to use their Exchange approved 

handheld trading devices throughout 

the Trading Floor of the Exchange.11

Subject to certain exceptions, pursuant 

to Rules 70— and 117—NYSE Alternext 

Equities Floor brokers are required to 

either cancel or transfer to another Floor 

broker their agency interest files if they 

leave the Crowd (as defined under Rule 

70.30—NYSE Alternext Equities), and, 

unless transferred, any open orders will 

not be represented while the Floor 

broker is away from the Crowd.12

Upon the Options Relocation, the 

Exchange’s Options Trading Floor will 

be adjacent to the Exchange’s Equities 

Trading Floor. Thus, in order to address 

concerns regarding improper 

information sharing between the 

Exchange’s Equities and Options 

Trading Floors, the Exchange proposes 

to adopt Rule 36.70—NYSE Alternext 

Equities to prohibit Exchange members 

and member firm employees from (i) 

using or possessing any wireless trading 

device that may be used to view or enter 

orders into the Exchange’s Equities 

trading systems while on the Exchange’s 

Options Trading Floor, and (ii) using or 

possessing any wireless trading device 

that may be used to view or enter orders 

into the Exchange’s Options trading 

systems while on the Exchange’s 

Equities Trading Floor. These 

prohibitions would apply to any and all 

wireless trading devices, including 

devices issued by the Exchange or 

NYSE, as well as devices that are 

proprietary to a member, member 

organization or other entity.13

These proposed amendments would 

not change the current regulatory 

framework within which members and 

member firm employees may use their 

wireless trading devices. Members and 

member firm employees would still be 

limited to using Exchange approved 

wireless trading devices and would still 

be required to cancel or transfer their 

agency interest files in accordance with 

Rules 70— and 117—NYSE Alternext 

Equities if they leave the Crowd/ 

Equities Trading Floor. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule changes are consistent 

with, and further the objectives of, 

Section 6(b)(5) of the Securities 

Exchange Act of 1934 14 (the ‘‘Act’’), in 

that they are designed to prevent 

fraudulent and manipulative acts and 

practices, 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 

changes also support the principles of 

Section 11A(a)(1) 15 of the Act in that 

they seek to ensure the economically 

efficient execution of securities 

transactions and fair competition among 

brokers and dealers and among 

exchange markets. 

The Exchange believes that the 

proposed rule changes will permit the 

Exchange’s Equities permit holders and 

Options permit holders to, within the 

existing regulatory framework at the 

Exchange, efficiently and effectively 

conduct business on the respective 

Equities and Options Trading Floors 

and engage in personal communications 

while off the Trading Floors consistent 

with maintaining necessary regulatory 

distinctions between the two. Moreover, 

the proposed rule changes will impose 

restrictions designed to prevent 

inappropriate information sharing by 

and between members and member firm 

employees on the Trading Floors of the 

Exchange and its affiliate NYSE. 


dwashington3 on PROD1PC60 with NOTICES
Federal Register / Vol. 74, No. 44 / Monday, March 9, 2009 / Notices 10111 

16 15 U.S.C. 78s(b)(3)(A). 

17 17 CFR 240.19b–4(f)(6). 

18 In addition, Rule 19b–4(f)(6)(iii) requires the 

self-regulatory organization to give the Commission 

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. NYSE Alternext has satisfied this 

requirement. 

19See Securities Exchange Act Release No. 59142 

(December 22, 2008), 73 FR 80494 (December 31, 

2008) (SR–NYSEALTR–2008–14), as amended. 

20See Securities Exchange Act Release No. 58092 

(July 3, 2008), 73 FR 40143 [sic] (July 11, 2008) 

(concerning 17 CFR parts 200 and 241). 

21For purposes only of waiving the operative 

delay for this proposal, the Commission has 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

15 U.S.C. 78c(f). 

22 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). 

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 has become 

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

of the Act 16 and Rule 19b–4(f)(6) 

thereunder 17 because the foregoing 

proposed rule: (1) Does not significantly 

affect the protection of investors or the 

public interest; (2) does not impose any 

significant burden on competition; and 

(3) does not become operative for 30 

days after the date of filing, or such 

shorter time as the Commission may 

designate if consistent with the 

protection of investors and the public 

interest.18 The Exchange believes that 

this filing is non-controversial because 

it is consistent with its filing 

implementing the Options Relocation,19

as well as the Exchange’s current 

regulatory controls governing the use of 

personal portable or wireless 

communications devices and wireless 

trading devices, which were approved 

by the Commission. Accordingly, the 

Exchange believes that these rule 

changes are eligible for immediately 

effective treatment under the 

Commission’s Streamlining Order.20

The Exchange has asked the 

Commission to waive the 30-day 

operative delay and designate the 

proposed rule change as operative upon 

filing so that the proposed rule changes 

may become effective upon filing and 

operative on the date of the Options 

Relocation, currently scheduled for 

March 2, 2009. The Commission hereby 

grants the Exchange’s request.21 The 

Commission believes that such action is 

consistent with the protection of 

investors and the public interest 

because the Exchange’s proposal would 

clarify the Exchange’s policies 

governing the use of personal portable 

or wireless communication devices as 

well as wireless trading devices. This 

clarification is necessitated by the 

Options Relocation. 

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–NYSEALTR–2009–21 on 

the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Elizabeth M. Murphy, Secretary, 

Securities and Exchange Commission, 

Station Place, 100 F Street, NE., 

Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–NYSEALTR–2009–21. 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–NYSEALTR–2009–21 and 

should be submitted on or before March 

30, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.22

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–4872 Filed 3–6–09; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–59493; File No. SR– 

NYSEArca–2009–18] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change Relating to the Listing 

and Trading of Bear Market Strategic 

Accelerated Redemption Securities®

Linked to the S&P Small Cap Regional 

Banks Index 

March 3, 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 March 2, 

2009, NYSE Arca, Inc. (‘‘NYSE Arca’’ or 

‘‘Exchange’’), through its wholly owned 

subsidiary, NYSE Arca Equities, Inc. 

(‘‘NYSE Arca Equities’’), filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I and II 

below, which Items have been 

substantially prepared by the Exchange. 

NYSE Arca filed the proposed rule 

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

of the Act 3 and Rule 19b–4(f)(6) 


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