13498 Federal Register / Vol. 74, No. 58 / Friday, March 27, 2009 / Notices 

52ARM; R. Long/Wachovia; Williams/ 

Woodforest. 

53PIABA. 

54ARM; FSI; Gross/Pace; Jacobson/Cornell; 

NASAA; Nationwide; PIABA; ProEquities. 

55ARM; FSI; Gross/Pace; NASAA; Nationwide; 

ProEquities. 

56 Jacobson/Cornell. 

57PIABA. 

58FSI; Gross/Pace; NASAA; Nationwide. 

59 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

threshold to a higher amount,52 and one 

suggested requiring the reporting of all 

settlements regardless of dollar 

amount.53

FINRA believes that a dollar threshold 

within the questions is appropriate to 

address those instances where matters 

are settled for a nuisance value; at the 

same time, FINRA is not persuaded by 

the comments suggesting that an 

increase to greater than $15,000 is 

warranted at this time. 

(c) Proposed Revisions to Form U5 To 

Allow Firms To Amend the ‘‘Reason for 

Termination’’ and the ‘‘Date of 

Termination’’ 

Eight commenters responded to the 

proposal to allow firms to amend the 

‘‘Reason for Termination’’ and ‘‘Date of 

Termination.’’ 54 Six commenters 

affirmatively supported this proposal on 

the basis that it would result in more 

accurate information being reported to 

regulators and recorded in the CRD 

system.55 Of the two commenters that 

generally opposed this proposal, one 

opposed allowing firms to amend the 

Reason for Termination or Date of 

Termination except in cases of clerical 

error.56 The other commenter supported 

allowing changes to the Date of 

Termination, but opposed allowing 

changes to the Reason for Termination 

based on a concern about the potential 

for abuse by firms.57

FINRA believes that a firm should 

have the ability to correct inaccurate 

information that it filed on a Form U5 

regarding terminations through an 

amendment to that original Form filing. 

FINRA also believes that limiting such 

changes to clerical errors is unnecessary 

in light of: (1) the attendant requirement 

that firms provide a reason for the Form 

U5 amendment; and (2) the monitoring 

of such amendments by FINRA and 

other regulators. FINRA believes that 

such monitoring, in particular, will 

protect against any potential misuse by 

firms. 

(d) Proposed Technical and Conforming 

Changes to the Forms 

No commenters opposed the proposed 

technical and conforming changes to the 

Forms, and four commenters 

affirmatively supported them.58

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Within 35 days of the date of 

publication of this notice in the Federal 

Register or within such longer period (i) 

as the Commission may designate up to 

90 days of such date if it finds such 

longer period to be appropriate and 

publishes its reasons for so finding or 

(ii) as to which the self-regulatory 

organization consents, the Commission 

will: 

(A) By order approve such proposed 

rule change, or 

(B) Institute proceedings to determine 

whether the proposed rule change 

should be disapproved. 

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–FINRA–2009–008 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–FINRA–2009–008. 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 the filing also will be available for 

inspection and copying at the principal 

office of FINRA. 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–FINRA– 

2009–008 and should be submitted on 

or before April 17, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.59

Florence E Harmon, 

Deputy Secretary. 

[FR Doc. E9–6830 Filed 3–26–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–59611; File No. SR–Phlx– 

2009–22] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of a Proposed Rule Change by 

NASDAQ OMX PHLX, Inc. Relating to 

Administration of Certain Rules in 

Respect of Index Data Dissemination 

March 20, 2009. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 

(‘‘Act’’),1 and Rule 19b–4 2 thereunder, 

notice is hereby given that on March 16, 

2009, NASDAQ OMX PHLX, Inc. 

(‘‘Phlx’’ or ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(‘‘SEC’’ or ‘‘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 reflect in 

the administration of its rules the 

expected discontinuation by the 

NASDAQ OMX Futures Exchange, Inc. 

(‘‘NFX’’) of index value distribution 

over NFX’s Market Data Distribution 

Network (‘‘MDDN’’). Index values will 

continue to be distributed via another 

NASDAQ OMX data dissemination 

service, and the discontinuation of 

MDDN index value dissemination will 

not have any impact on the listing or 

trading of any instruments on the 

mstockstill on PROD1PC66 with NOTICES

Federal Register / Vol. 74, No. 58 / Friday, March 27, 2009 / Notices 13499 

3NASDAQ OMX acquired the Exchange on July 

24, 2008. NFX, which was previously known as the 

Philadelphia Board of Trade and became a 

subsidiary of NASDAQ OMX on the same date, is 

a Designated Contract Market within the meaning 

of the Commodities Exchange Act. 

4MDDN is an Internet protocol multicast 

network, which was developed by NFX for the 

purpose of, among other things, transmitting 

current and closing index values. 

5The Exchange’s rule book and fee schedule do 

not reference MDDN. As explained herein, MDDN 

is not a service being provided by the Exchange 

(rather, it is a service of NFX, a designated contract 

market under the Commodities Exchange Act), and 

even if MDDN were an Exchange-supplied service, 

it would not constitute a facility of a national 

securities exchange, making its inclusion in the 

Exchange’s rule book unnecessary. See, e.g., 

Securities Exchange Act Release No. 34–58897 

(November 3, 2008), 73 FR 66952 (November 12, 

2008) (SR–NASDAQ–2008–018) (NASDAQ’s index 

dissemination service is not a facility of a national 

securities exchange, and its terms are not rules that 

must be filed with the Commission). 

6See also Rule 1009A(c)(1) (regarding reporting 

requirements for continued listing of narrow-based 

indexes underlying options); and Rules 

1009A(d)(11) and 1109A(e)(1) (regarding reporting 

requirements for initial and continued listing of 

broad-based indexes underlying options). 

7See also Securities Exchange Act Release No. 

53790 (May 11, 2006), 71 FR 28737 (May 17, 2006) 

(SR–Phlx–2006–04) (regarding, among other things, 

transmission over MDDN of current and closing 

index values underlying four index options that 

were approved by Commission order: XAU, OSX, 

SOX, and UTY). 

8The proprietary indexes listed on the Exchange 

include: PHLX Chemicals Index (XCM); PHLX 

Defense Sector (DFX); PHLX Drug Sector (RXS); 

PHLX Europe Sector (XEX); PHLX Gold/Silver 

Sector (XAU); PHLX Housing Sector (HGX); PHLX 

Marine Shipping Index (SHX); PHLX Medical 

Device Index (MXZ); PHLX Oil Service Sector 

(OSX); PHLX Semiconductor Sector (SOX); PHLX 

Sports Index (SXP); and PHLX Utility Sector (UTY). 

DFX, RXS, HGX, OSX, and SOX are listed and 

options are traded pursuant to Rule 1009(A), which 

provides for trading of options on indexes pursuant 

to Rule 19b–4(e) of the Act. XAU and UTY, being 

two of the oldest indexes that pre-date Rule 19b– 

4(e), are listed and options are traded pursuant to 

Commission orders. See Securities Exchange Act 

Release Nos. 20437 (December 2, 1983), 48 FR 

55229 (December 9, 1983) (XAU); and 24889 

(September 9, 1987), 52 FR 35021 (September 16, 

1987) (UTY). XCM, XEX, SHX, MXZ, and SXP are 

no longer listed or traded and have no open options 

interest. 

9 It is expected that other MDDN data streams will 

continue to operate as a service of NFX to distribute 

NFX trading data. 

10As is the case with the values of proprietary 

indexes, current and closing index values of certain 

non-proprietary indexes underlying options listed 

on the Exchange (Hapoalim American Israeli Index, 

SIG Coal Producers Index, SIG Energy MLP Index, 

and SIG Oil Production & Exploration Index) and 

data regarding foreign currencies underlying 

options listed on the Exchange (Australian dollars, 

British pounds, Canadian dollars, Euros, Japanese 

Yen and Swiss Francs) will likewise continue to be 

distributed over the NASDAQ OMX index 

dissemination service or one or more other 

(NASDAQ OMX-owned or unrelated) major market 

data vendors. 

11See Securities Exchange Act Release No. 34– 

58897 (November 3, 2008), 73 FR 66952 (November 

12, 2008) (SR–NASDAQ–2008–018) (NASDAQ’s 

index dissemination service is not a facility of a 

national securities exchange, and its terms are not 

rules that must be filed with the Commission). 

12 15 U.S.C. 78s(b)(1). 

13 17 CFR 240.19b–4. 

14See Securities Exchange Act Release No. 58897 

(November 3, 2008), 73 FR 66952 (November 12, 

2008) (SR–NASDAQ–2008–018). 

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

16 15 U.S.C. 78f(b)(5). 

Exchange, or on any facility of a 

national securities exchange within the 

meaning of the Act. The Exchange is not 

proposing to amend the text of any 

rules, but simply to change the 

administration of certain rules, as 

described below. 

The text of the proposed rule change 

is available on the Exchange’s Web site 

at http://www.nasdaqtrader.com/ 

micro.aspx?id=PHLXRulefilings. 

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 

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 

Currently, the values of the 

Exchange’s various proprietary indexes 

are disseminated in parallel over two 

separate data services operated by The 

NASDAQ OMX Group, Inc. (‘‘NASDAQ 

OMX’’).3 These values are included both 

in NFX’s MDDN 4 and NASDAQ OMX’s 

data dissemination service. The purpose 

of this filing is to reflect the pending 

discontinuation by NFX of its index 

data dissemination service over MDDN 

as redundant and unnecessary.5

Exchange rules condition the listing 

and trading of index options on, among 

other things, the dissemination of 

underlying index values periodically 

during the trading day and closing 

index values after the close of the 

trading day. Rule 1009A(b)(10) provides 

that the current underlying index value 

for narrow-based indexes will be 

reported at least once every fifteen 

seconds during the time the index 

options are traded on the Exchange.6

Additionally, Rule 1100A(a) provides 

that the Exchange shall disseminate or 

shall assure that the closing index value 

is disseminated after the close of 

business and the current index value is 

disseminated from time-to-time on days 

on which transactions in index options 

are made on the Exchange.7

The Exchange lists options on several 

proprietary indexes.8 Under this 

proposed rule change, discontinuation 

of the MDDN index value dissemination 

service will not affect the eligibility of 

such options to be listed and traded 

because dissemination of the underlying 

index data will not stop and will not be 

interrupted. All index values included 

in MDDN are currently also being 

disseminated over another NASDAQ 

OMX index dissemination service, 

making the MDDN index dissemination 

duplicative and no longer necessary.9 In 

the future, the Exchange will continue 

dissemination of its index data either 

through NASDAQ OMX’s index 

dissemination service or through one or 

more other (NASDAQ OMX-owned or 

unrelated) major market data vendors.10

The Exchange believes that, just like 

NASDAQ’s index dissemination 

service,11 NFX’s MDDN index 

dissemination service is not a facility of 

any national securities exchange within 

the meaning of the Act and that the 

Exchange is not required under Section 

19(b)(1) of the Act 12 and Rule 19b–4 

thereunder 13 to file rule changes 

regarding administration of such 

service. If, at a later date, the Exchange 

proposed to modify the manner in 

which it disseminates index values, 

causing the relevant index 

dissemination service to fit within the 

definition of a facility of an exchange, 

or the Exchange proposed to tie the fees 

for receiving data from the index 

dissemination service to fees for usage 

of exchange services (to include, for 

example, listing and trading), the 

Exchange would file a proposed rule 

change with the Commission.14

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act 15 in general, and furthers the 

objectives of Section 6(b)(5) of the Act 16

in particular, in that it is 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 by 

clarifying how underlying index data is 

to be disseminated. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will impose 

mstockstill on PROD1PC66 with NOTICES

13500 Federal Register / Vol. 74, No. 58 / Friday, March 27, 2009 / Notices 

17See, e.g. , Securities Exchange Act Release No. 

58613 (Sept. 22, 2008), 73 FR 57181 (Oct. 1, 2008) 

(SR–PHLX–2008–065) (immediately effective filing 

to change the administration of Exchange rules as 

a result of the shutdown of the entire XLE equity 

trading). 

18Securities Exchange Act Release No. 58092 

(July 3, 2008), 73 FR 40144 (July 11, 2008). 

19 17 CFR 240.19b–4(f)(6). 

20Securities Exchange Act Release No. 58897 

(November 3, 2008), 73 FR 66952 (November 12, 

2008) (SR–NASDAQ–2008–018) (NASDAQ’s index 

dissemination service is not a facility of a national 

securities exchange, and its terms are not rules that 

must be filed with the Commission). 

any burden on competition 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. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing rule change has become 

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

of the Act and paragraph (f)(1) of Rule 

19b–4 thereunder. Pursuant to the Act, 

the proposed rule change has been 

designated by the Exchange as 

constituting a stated policy, practice, or 

interpretation with respect to the 

meaning, administration, or 

enforcement of an existing rule. 

Specifically, as described above, the 

Exchange has stated how it will 

administer the enumerated portions of 

Phlx Rules 1009A and 1100A in light of 

the discontinuation of index data 

dissemination over NFX’s MDDN. 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. 

As discussed above, the Exchange 

believes that the MDDN index 

dissemination service is not a ‘‘facility 

of a national securities exchange,’’ and 

the terms and conditions of this service 

are therefore not included in the text of 

the Exchange’s rules. Because of this, no 

changes are being made to the Exchange 

rule book or fee schedule, and this filing 

should be viewed as a statement of how 

the Exchange will administer its 

existing rules in light of the impending 

discontinuation of a non-exchange 

service (MDDN index dissemination) by 

a sister company (NFX). 

It must be noted in this regard that 

rule changes to discontinue important 

exchange services (as opposed to nonexchange services, as is the case here) 

have in the past been accepted by the 

Commission on immediately effective 

basis under paragraph (f)(1) of Rule 19– 

b(4).17 It stands to reason that 

discontinuation of a non-exchange 

service should receive the same 

treatment under paragraph (f)(1). 

In its recent interpretive guidance 

regarding the self-regulatory 

organizations’ rule filing process, the 

Commission stated that certain SRO 

proposals ‘‘may be filed as an 

immediately effective rule so long as it 

is based on and similar to another SRO’s 

rule’’ and raises no new policy issues.18

Filings in this category are eligible to be 

submitted under paragraph (f)(6) of Rule 

19b–4.19 As explained below, paragraph 

(f)(6) could serve as a separate basis for 

this filing’s designation under Rule 

19(b)(3), but the Exchange believes that 

designation under paragraph (f)(1) is 

more appropriate in this case. 

The Commission recently approved 

removal of index dissemination from 

the rule book of another exchange, 

NASDAQ,20 and in its impact, the 

present filing is similar to the NASDAQ 

filing. With the shut-down of MDDN 

index dissemination, both the PHLX 

and NASDAQ index values will 

continue to be distributed by the same 

index dissemination service, and since 

that service is not a facility of any 

national securities exchange (either 

NASDAQ or PHLX), its terms are not 

rules of an exchange within the meaning 

of the Act. This similarity to another 

SRO’s rule makes the present filing 

eligible for immediate effectiveness 

under paragraph (f)(6) of Rule 19(b)(4). 

However, unlike the NASDAQ 

proposal, the present filing does not 

require any modifications to codified 

rule text and relates to a service that is 

being proposed for discontinuation. As 

explained above, even when the service 

to be discontinued is an important 

facility of a national securities 

exchange, its discontinuation has in the 

past been accepted as immediately 

effective under paragraph (f)(1) of Rule 

19b–4. Based on prior Commission 

practice, while paragraph (f)(6) of Rule 

19b–4 would certainly apply to this 

filing, paragraph (f)(1) of this Rule is the 

appropriate basis for its immediate 

effectiveness. 

Based on the foregoing, the Exchange 

designates this filing as immediately 

effective under paragraph (f)(1) of Rule 

19b–4. It is expected that notice of the 

impending discontinuation of MDDN 

index dissemination will be given as 

soon as practicable and the actual 

discontinuation will occur shortly 

thereafter, on a timetable that would 

minimize any possible inconvenience to 

its users. 

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–Phlx–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–Phlx–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 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 

available publicly. All submissions 

should refer to File Number SR–Phlx– 

2009–22 and should be submitted on or 

before April 17, 2009. 

mstockstill on PROD1PC66 with NOTICES

Federal Register / Vol. 74, No. 58 / Friday, March 27, 2009 / Notices 13501 

21 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. 

4PRL orders are for a size within the standard 

unit (round-lot) of trading, which is 100 shares for 

most stocks, but contains a portion that is smaller 

than the standard unit of trading, e.g. 199 shares. 

It should be noted that for certain securities trading 

on the NYSE Alternext Trading Systems the 

standard unit of trading is 10 shares. 

5See SR–NYSE–2009–27 (to be filed March 11, 

2009). 

6See 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). 

7 15 U.S.C. 78f. 

8See Securities Exchange Act Release No. 58705 

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

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

Relocation). 

9See NYSE Alternext Equities Rule 124(a). 

10 Id. Odd-lot orders are in effect netted against 

one another and executed; however, since the DMM 

is buying the same amount that he or she is selling, 

there is no economic consequence to the DMM in 

this type of pairing-off of orders. Any imbalance of 

buy or sell odd-lot market orders are executed 

against the DMM, up to the size of the round-lot 

transaction or the BID/OFFER size which ever is 

less. 

11The volume limitation in section (c) of the rule 

is defined as the lesser of either the number of 

shares in the last round-lot transaction or the 

number of shares available at the national best bid 

(in the case of an odd-lot order to sell), or the 

national best offer (in the case of an odd-lot order 

to buy). 

12Pursuant to NYSE Alternext Equities Rule 

124(d) odd-lot limit orders that are non-marketable 

upon receipt that become marketable are eligible to 

be netted and executed at the price of the next 

round-lot transaction. If odd-lot limit orders do not 

receive an execution pursuant to the netting 

provision, then the orders are eligible to be 

executed, at its limit price, subject to the volume 

limitation of section (c) of the rule. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.21

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–6826 Filed 3–26–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–59614; File No. SR– 

NYSEALTR–2009–27] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change by NYSE 

Alternext U.S. LLC Amending NYSE 

Alternext Equities Rule 124 To Execute 

the Odd-Lot Portion of a Part of a 

Round-Lot Order Pursuant to the Same 

Pricing Methodology Used for Odd-Lot 

Orders 

March 20, 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 

11, 2009, NYSE Alternext U.S. LLC (the 

‘‘Exchange’’ or ‘‘NYSE Alternext’’) 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 amend 

NYSE Alternext Equities Rule 124 (OddLot Orders) to execute the odd-lot 

portion of a part of a round-lot (‘‘PRL’’) 

order pursuant to the same pricing 

methodology used for odd-lot orders. 

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 

Through this filing the Exchange 

seeks to amend NYSE Alternext Equities 

Rule 124 (Odd-Lot Orders) to execute 

the odd-lot portion of a part of a roundlot (‘‘PRL’’) order pursuant to the same 

pricing methodology used for odd-lot 

orders.4

These amendments are proposed to 

conform to amendments filed by the 

New York Stock Exchange (‘‘NYSE’’).5

Background 

As described more fully in a related 

rule filing,6 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 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’’).7 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’’). 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 the Exchange.8

In order to implement the Equities 

Relocation, the Exchange adopted Rules 

1–1004 of the New York Stock Exchange 

LLC as the NYSE Alternext Equities 

Rules to govern the equities trading on 

the NYSE Alternext Trading Systems. 

Current Execution of Odd-Lot Orders 

Currently, odd-lot orders on the 

Exchange are processed in a separate 

system on the Exchange from the 

Exchange systems that execute roundlot orders. Odd-lots are executed 

systemically by Exchange systems 

designated solely for odd-lot orders (the 

‘‘Odd-lot System’’).9 The odd-lot System 

executes all odd-lot orders against the 

DMM as the contra party.10

Pursuant to NYSE Alternext Equities 

Rule 124(c), after odd-lot market orders 

and marketable odd-lot limit orders are 

received by the Odd-lot System, they are 

automatically executed at the price of 

the next round-lot transaction in the 

subject security on the Exchange. 

Specifically, marketable odd-lot orders 

and marketable odd-lot limit orders are 

executed in time priority of receipt at 

the price of the next round-lot 

transaction, pursuant to the net process 

described in footnote 14 [sic]. The 

imbalance of marketable odd-lot orders 

that do not receive an execution as a 

result of the netting provision are 

executed in time priority of receipt at 

the price of the NBBO, subject to a 

volume limitation.11 Any imbalances of 

odd-lot limit orders that were nonmarketable upon receipt that 

subsequently become marketable 

receive an execution at their limit 

price.12 Marketable odd-lot orders 

which would otherwise receive a partial 

mstockstill on PROD1PC66 with NOTICES