10328 Federal Register / Vol. 74, No. 45 / Tuesday, March 10, 2009 / Notices 

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 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. 58068 

(June 30, 2008), 73 FR 39363 (July 9, 2008) (SR– 

NYSE–2008–20). 

21See 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). 

22See Securities Exchange Act Release No. 58092 

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

(concerning 17 CFR 200 and 241). 

23For 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). 

24 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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 the NYSE 

Alternext’s 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 20

and wireless trading devices,21 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.22

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.23 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–NYSE–2009–23 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–NYSE–2009–23. 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–2009–23 and should 

be submitted on or before March 31, 

2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.24

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–4959 Filed 3–9–09; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–59483; File No. SR–NYSE– 

2009–22] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Modify 

Certain Equity Transaction Fees and 

Rebates 

March 2, 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 

27, 2009, the New York Stock Exchange 

LLC (‘‘NYSE’’ or ‘‘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 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 make a 

number of changes to its schedule of 

equity transaction fees and rebates, with 

effect from March 1, 2009. The text of 

the proposed rule change is available on 

the Exchange’s Web site (http:// 

www.nyse.com), at the Exchange’s 

Office of the Secretary, and at the 

Commission’s Public Reference Room. 

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 

Exchange 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 

Exchange has prepared summaries, set 

forth in Sections A, B, and C below, of 

Federal Register / Vol. 74, No. 45 / Tuesday, March 10, 2009 / Notices 10329 

3See e-mail from John Carey, Chief Counsel— 

U.S. Equities, NYSE Euronext, to David Liu, 

Assistant Director, Division of Trading and Markets, 

Commission, dated March 2, 2009. 

4 15 U.S.C. 78f. 

5 15 U.S.C. 78f(b)(4). 

6 15 U.S.C. 78s(b)(3)(A)(ii). 

7 17 CFR 240.19b–4(f)(2). 

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 make a 

number of changes to its schedule of 

equity transaction fees and rebates, with 

effect from March 1, 2009. 

The following are the proposed 

changes: 

• Currently, the Exchange does not 

charge any fees to customers adding 

liquidity to the order book. Customers 

who execute orders that add liquidity 

(both displayed and non-displayed) will 

now receive a rebate of $0.0010 per 

share. Transactions in stocks with a per 

share price less than $1.00 will not 

qualify for this rebate, but will continue 

to be free of charge.3

• Currently floor broker orders adding 

liquidity to the book receive a $0.0004 

per share rebate. This rebate will 

increase from $0.0004 per share to 

$0.0012 per share. 

• Currently the fee per share for 

customers (except for designated market 

makers (‘‘DMMs’’)) taking liquidity from 

the order book is $0.0008 per share 

(subject to a cap of $120 per 

transaction). This fee will increase from 

$0.0008 per share to $0.0018 per share. 

For trades in stocks with a per share 

price less than $1.00, the fee will equal 

the lesser of (i) 0.3% of the total dollar 

value of the transaction and (ii) $0.0018 

per share. 

• The fee for market-at-close and 

limit-at-close orders (except for DMMs) 

is currently $0.0004 per share to both 

sides. This fee will increase from 

$0.0004 per share to $0.0005 per share 

(subject to a cap of $120 per 

transaction). For trades in stocks with a 

per share price less than $1.00, the fee 

will equal the lesser of (i) 0.30% of the 

total dollar value of the transaction and 

(ii) $0.0005 per share. 

• The fee for non-electronic agency 

transactions of less than 10,000 shares 

between floor brokers in the crowd is 

currently $0.0004 per share to both 

sides. These transactions will now be 

free of charge. 

• Currently the Exchange charges a 

fee of $0.0004 per share in all odd lot 

transactions (including the odd lot 

portions of partial round lots). This fee 

will increase from $0.0004 per share to 

$0.0005 per share (subject to a cap of 

$120 per transaction). For trades in 

stocks with a per share price less than 

$1.00, the fee will equal the lesser of (i) 

0.3% of the total dollar value of the 

transaction and (ii) $0.0005 per share. 

• DMMs currently pay no fee when 

taking liquidity from the order book. 

Going forward, DMMs will be charged 

$0.0010 when taking liquidity. This fee 

will offset the $0.0010 per share rebate 

the Exchange will pay the customer 

providing liquidity on the contra side of 

the transaction. 

• DMMs currently receive a rebate 

per share of $0.0004 for executions at 

the close. This rebate will be increased 

from $0.0004 per share to $0.0005 per 

share. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the objectives of Section 6 4 of the Act 

in general and furthers the objectives of 

Section 6(b)(4) 5 in particular, in that it 

is designed to provide for the equitable 

allocation of reasonable dues, fees and 

other charges among its members and 

other persons using its facilities. The 

Exchange believes that the proposal 

does not constitute an inequitable 

allocation of dues, fees and other 

charges as it provides the DMMs 

appropriate incentives to act as liquidity 

providers and supports them in 

performing their central function in the 

Exchange’s market model. 

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 purpose of the Act. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants or Others 

Written comments were neither 

solicited nor received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing proposed rule change is 

effective upon filing pursuant to Section 

19(b)(3)(A)(ii) of the Act 6 and Rule 19b– 

4(f)(2) thereunder.7

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–NYSE–2009–22 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–2009–22. 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, on official business days between 

the hours of 10 a.m. and 3 p.m. Copies 

of such filing will also 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 No. SR–NYSE– 

2009–22 and should be submitted on or 

before March 31, 2009. 

10330 Federal Register / Vol. 74, No. 45 / Tuesday, March 10, 2009 / Notices 

8 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. 

4NYSE Alternext US LLC has submitted a 

companion rule filing to conform Rules 48 and 

123C–NYSE Alternext Equities to the changes 

proposed in this filing. See SR–NYSEALTR–2009– 

15, formally submitted February 20, 2009. 

5See SEC Release No. 58743 (Oct. 7, 2008), 73 FR 

60742 (Oct. 14, 2008) (SR–NYSE–2008–102). 

6See NYSE Rule 48.10. 

7See NYSE Rule 48(b)(2)(A)(i). 

8See NYSE Rule 48(b)(2)(A)(ii). 

9See NYSE Rule 48(b)(2)(A)(iv). 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.8

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–4960 Filed 3–9–09; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–59489; File No. SR–NYSE– 

2009–18] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Notice of 

Filing of Proposed Rule Change, as 

Modified by Amendment No. 1, 

Amending Rule 123C To Provide the 

Exchange With the Ability To 

Temporarily Suspend Certain NYSE 

Requirements Relating to the Closing 

of Securities at the Exchange 

March 3, 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 February 

19, 2009, New York Stock Exchange 

LLC (‘‘NYSE’’ or ‘‘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. On March 2, 

2009, the Exchange filed Amendment 

No. 1. The Commission is publishing 

this notice to solicit comments on the 

proposed rule change, as amended, 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 123C to provide the Exchange with 

the ability to temporarily suspend 

certain NYSE requirements relating to 

the closing of securities at the Exchange. 

The text of the proposed rule change 

is available at http://www.nyse.com, 

NYSE, and the Commission’s Public 

Reference Room. 

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 is proposing to amend 

NYSE Rule 123C to provide the 

Exchange with the ability to temporarily 

suspend certain rule requirements at the 

close when extreme order imbalances 

may cause significant dislocation to the 

closing price. The amendments 

proposed for NYSE Rule 123C are 

similar in substance to recent 

amendments to Rule 48 that added an 

extreme market volatility condition at 

the close. With this rule filing, the 

Exchange proposes to delete those 

provisions from Rule 48 and add them 

in modified form to Rule 123C. The 

Exchange also proposes to amend Rule 

48(c)(2) to conform the rule to the actual 

practice of how the Exchange notifies 

the Commission staff when a Rule 48 

condition has been declared.4

Background 

On October 2, 2008, the Exchange 

filed for immediate effectiveness to 

amend NYSE Rule 48 to provide the 

Exchange with the ability to suspend 

certain rules at the close when 

extremely high market volatility could 

negatively affect the ability to ensure a 

fair and orderly close.5 The Exchange 

amended Rule 48 in order to respond 

swiftly to market conditions at that 

time. Those amendments are temporary 

and will end on March 27, 2009.6

In that filing, the Exchange amended 

Rule 48 to include the close of trading 

as a time when a qualified Exchange 

officer would be permitted to declare an 

extreme market volatility condition. In 

such event, the Exchange could 

temporarily suspend NYSE Rules 52 

(Hours of Operation) and 123C(1) and 

(2) (Market on the Close Policy and 

Expiration Policy), provided that certain 

requirements are met. 

To enable a qualified Exchange officer 

to declare a Rule 48 condition at the 

close, the Exchange amended Rule 48(c) 

to include that a qualified Exchange 

officer may consider the volatility 

during that day’s trading session and 

evidence of significant order imbalances 

across the market at the close for 

purposes of determining whether to 

declare an extreme market volatility 

condition at the close. Under amended 

Rule 48, an extreme market volatility 

condition at the close is a separate event 

and must be considered in light of the 

facts and circumstances leading to the 

close. A Rule 48 condition at the open 

of trading does not extend to the close; 

a qualified Exchange officer needs to 

make an independent determination to 

invoke Rule 48 at the close regardless of 

whether Rule 48 was invoked at the 

open. Such a Rule 48 condition at the 

close must be declared by a qualified 

Exchange officer before the scheduled 

close of trading. 

Once an extreme market volatility 

condition at the close has been declared 

Floor wide, under NYSE Rule 

48(b)(2)(A), the Exchange may 

temporarily suspend Rule 52 on a 

security-by-security basis so that 

interest can be solicited and entered 

into Exchange systems to offset an 

imbalance in a security that may be 

present after the scheduled close of 

trading. During an extreme market 

volatility condition, interest may be 

solicited—including interest that may 

not have been present prior to 4 p.m.— 

to offset any imbalance that may exist as 

of 4 p.m. (or earlier, in the case of an 

earlier scheduled close).7 If offsetting 

interest is received in response to such 

solicitation, rather than have the DMM 

represent such offsetting interest in the 

close pursuant to Rule 902, such interest 

could be entered by the DMM directly 

into Exchange systems on behalf of the 

member or member organization 

representing such interest. Because 

Exchange systems do not allow for the 

electronic entry of orders after 

4 p.m., such interest must be 

represented manually by a Floor broker 

in the closing auction process and 

entered into Exchange systems by the 

DMM by no later than 4:30 p.m.8 The 

entry of any orders after 4 p.m. pursuant 

to the rule must be under the 

supervision and approval of a Floor 

Governor.9

To ensure a complete audit trail, any 

offsetting interest entered after 4 p.m. 

during an extreme market volatility 

condition must also be entered into the 

Front End Systemic Capture database 

(‘‘FESC’’), as required by NYSE Rule