Federal Register / Vol. 74, No. 58 / Friday, March 27, 2009 / Notices 13503 

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

17 15 U.S.C. 78s(b)(3)(A). 

18 17 CFR 240.19b–4(f)(5). 

19 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)(iii). 

4 17 CFR 240.19b–4(f)(6). 

2. Statutory Basis 

The basis under the Act for this 

proposed rule change is the requirement 

under Section 6(b)(5) 16 that an 

Exchange have rules that are 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. The 

instant proposal is in keeping with these 

principles in that it seeks to price the 

execution of all odd-lot orders pursuant 

to one pricing methodology now that 

the Exchange systemic impediments to 

the implementation of one pricing 

methodology are removed. 

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 is filed 

pursuant to paragraph (A) of Section 

19(b)(3) 17 and Rule 19b–4(f)(5).18 This 

proposed rule change effects a change in 

an existing order entry or trading system 

of a self-regulatory organization that: (A) 

Does not significantly affect the 

protection of investors or the public 

interest; (B) does not impose any 

significant burden on competition; and 

(C) does not have the effect of limiting 

the access to or availability of the 

system. The proposed filing does not in 

any way limit access to the Exchange’s 

odd-lot system; rather, the changes are 

the result of technological 

advancements which remove the 

systemic impediments that previously 

restricted the Exchange’s ability to 

execute all odd-lots pursuant to a the 

same pricing methodology. In so far as, 

the proposal ensures that all odd-lot 

orders are priced in the same manner, 

it promotes the protection of investors 

and serves the public interest without 

imposing a significant burden on 

competition. 

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–2009–27 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–NYSEALTR–2009–27. 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 the 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–NYSEALTR–2009–27 and 

should be submitted on or before April 

17, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.19

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–6829 Filed 3–26–09; 8:45 am] 

BILLING CODE 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–59609; File No. SR– 

NYSEArca–2009–23] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change by NYSE 

Arca, Inc. Amending Rule 6.47 To 

Remove Obsolete Text Related to the 

SizeQuote Pilot Program 

March 20, 2009. 

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

Securities Exchange Act of 1934 (the 

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

notice is hereby given that, on March 

16, 2009, NYSE Arca, Inc. (‘‘NYSE 

Arca’’ or the ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(the ‘‘Commission’’) the proposed rule 

change as described in Items I and II, 

which Items have been prepared by the 

self-regulatory organization. The 

Exchange filed the proposal as a ‘‘noncontroversial’’ proposed rule change 

pursuant to Section 19(b)(3)(A)(iii) of 

the Act 3 and Rule 19b–4(f)(6) 

thereunder.4 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 its 

rules in order to remove obsolete rule 

text related to the SizeQuote Pilot 

Program. The text of the proposed rule 

change is attached as Exhibit 5 to the 

Form 19b–4. A copy of this filing is 

available on the Exchange’s Web site at 

http://www.nyse.com, at the Exchange’s 

principal office and at the Commission’s 

Public Reference Room. 

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13504 Federal Register / Vol. 74, No. 58 / Friday, March 27, 2009 / Notices 

5See Securities Exchange Act Release No. 51576 

(April 19, 2005), 70 FR 21488 (April 26, 2005). 

6See Securities Exchange Act Release No. 53315 

(Feb. 15, 2006) 71 FR 9406 (Feb. 23, 2006), 

Securities Exchange Act Release No. 55312 (Feb. 16, 

2007) 72 FR 8827 (Feb. 27, 2007), Securities 

Exchange Act Release No. 57412 (March 3, 2008) 73 

FR 12492 (March 7, 2008). 

7 15 U.S.C. 78f(b). 

8 15 U.S.C. 78f(b)(5). 

9 15 U.S.C. 78s(b)(3)(A)(iii). 

10 17 CFR 240.19b–4(f)(6). 

11 15 U.S.C. 78s(b)(3)(A). 

12 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6)(iii) requires the Exchange to give the 

Commission written notice of the Exchange’s 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. The Exchange 

has satisfied the pre-filing requirement. 

13 17 CFR 240.19b–4(f)(6). 

14 17 CFR 240.19b–4(f)(6)(iii). 

15For purposes only of waiving the operative date 

of this proposal, the Commission has considered 

the rule’s impact on efficiency, competition, and 

capital formation. See 15 U.S.C. 78c(f). 

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 this filing is to remove 

obsolete text from Rule 6.47 pertaining 

to the Exchange’s SizeQuote Pilot 

Program (‘‘Pilot Program’’). The Pilot 

Program, which was initially 

established in 2005 5 and had been 

extended in three subsequent filings,6

expired on February 15, 2009. 

After analyzing the effectiveness of 

the Pilot Program, the Exchange 

determined that it did not meet its 

stated objectives and therefore the 

Exchange did not extend the program 

past its expiration on February 15, 2009. 

This filing simply serves to remove the 

obsolete rules related to the Pilot 

Program. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b) 7 of the Act, in general, and 

furthers the objectives of Section 

6(b)(5),8 in particular, in that it is 

designed to facilitate transactions in 

securities, to promote just and equitable 

principles of trade and to protect 

investors and the public interest. This 

filing is intended to remove outdated 

and obsolete rule text that may be 

confusing to market participants that are 

subject to the Exchange rules. 

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 Exchange has filed the proposed 

rule change pursuant to Section 

19(b)(3)(A)(iii) of the Act 9 and Rule 

19b–4(f)(6) thereunder.10 Because the 

proposed rule change does not: (i) 

Significantly affect the protection of 

investors or the public interest; (ii) 

impose any significant burden on 

competition; and (iii) become operative 

prior to 30 days from the date on which 

it was filed, or such shorter time as the 

Commission may designate, if 

consistent with the protection of 

investors and the public interest, the 

proposed rule change has become 

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

of the Act 11 and Rule 19b–4(f)(6)(iii) 

thereunder.12

A proposed rule change filed under 

Rule 19b–4(f)(6) 13 normally does not 

become operative prior to 30 days after 

the date of the filing. However, pursuant 

to Rule 19b4(f)(6)(iii),14 the Commission 

may designate a shorter time if such 

action is consistent with the protection 

of investors and the public interest. The 

Exchange has asked the Commission to 

waive the 30-day operative delay so that 

the proposal may become operative 

immediately upon filing. The 

Commission believes that waiver of the 

operative delay is consistent with the 

protection of investors and the public 

interest because such waiver will enable 

the Exchange to delete obsolete rule text 

without delay. The Commission notes 

that the text relates to a pilot program 

that has already expired and therefore 

deletion of the related text does not 

raise any novel or significant regulatory 

issues. Therefore, the Commission 

designates the proposed rule change as 

operative upon filing.15

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–NYSEArca–2009–23 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–NYSEArca–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 

Section, 100 F Street, NE., Washington, 

DC 20549, 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 NYSE 

mstockstill on PROD1PC66 with NOTICES

Federal Register / Vol. 74, No. 58 / Friday, March 27, 2009 / Notices 13505 

16 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. 

4 15 U.S.C. 78s(b)(3)(A). 

5 17 CFR 240.19b–4(f)(6). 

6See CBOE Rule 8.7(b)(iv)(C)(ii). 

7See CBOE Bid/Ask Circular 09–02 (January 7, 

2009) establishing modified bid/ask differentials 

pursuant to CBOE Rule 8.7(b)(iv). 

8A Trading Official is an Exchange Employee that 

has been designated as such by the Chief Executive 

Officer, or the Chief Regulatory Officer, pursuant to 

Rule 6.1(b)(34). 

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

10 15 U.S.C. 78f (b)(5). 

Arca’s principal office. 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– 

NYSEArca–2009–23 and should be 

submitted on or before April 17, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.16

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–6825 Filed 3–26–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–59617; File No. SR– 

NYSEArca–2009–19] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change Amending Rule 6.37A— 

Obligations of Market Makers-OX 

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 16, 

2009, NYSE Arca, Inc. (‘‘NYSE Arca’’ 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 self-regulatory organization. 

NYSE Arca filed the proposed rule 

change as a ‘‘non-controversial’’ 

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

of the Act 4 and Rule 19b–4(f)(6) 

thereunder,5 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 

Exchange Rule 6.37A—Obligations of 

Market Makers-OX. The text of the 

proposed rule change is attached as 

Exhibit 5. A copy of this filing is 

available on the Exchange’s Web site at 

http://www.nyse.com, at the Exchange’s 

principal office 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 

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 

change is to adopt a provision which 

will allow the Exchange to establish 

different quote differentials other than 

what is provided for in Rule 6.37A(b)(5). 

The proposed rule language is 

substantially similar to what has been 

approved for, and is presently in place 

at, the Chicago Board Options Exchange 

(‘‘CBOE’’).6

Pursuant to Rule 6.37A(b), Market 

Makers on NYSE Arca are required to 

submit electronic quotations within 

certain bid/ask differentials. Subsection 

(5) of this rule states that following an 

Auction, options traded on NYSE Arca 

may be quoted with a difference not to 

exceed $5 between the bid and offer. 

NYSE Arca now proposes to add a 

provision that will allow the Exchange 

to establish different bid/ask 

differentials for certain series. 

Situations may arise where the $5 

differential provided for in Rule 

6.37A(b)(5) is overly restrictive; this has 

shown to be the case when extreme 

market fluctuations, coupled with 

increased volatility in an underlying 

security makes it extremely difficult to 

accurately calculate the price of given 

options series. To address these 

concerns, the CBOE has established 

modified bid/ask differentials in certain 

options series, pursuant to CBOE Rule 

8.7(b)(iv).7 This proposed rule change 

seeks only to allow the Exchange to 

offer NYSE Arca Market Makers the 

same quote relief that is offered to 

Market Makers on the CBOE. 

The Exchange envisions establishing 

quote differentials wider than $5 in very 

limited situations. In addition, if the 

Exchange were to establish modified 

bid/ask differentials it would do so with 

the contingency that the disseminated 

markets in affected series would remain 

competitive and remain narrower than 

the relief granted, whenever possible. 

The CBOE rule states that it is ‘‘the 

Exchange’’ that may establish bid/ask 

differences other than what is provided 

for in their rules. NYSE Arca proposes 

that the decision to establish different 

quote differentials will be made by two 

Trading Officials.8 In the case of NYSE 

Arca, two Trading Officials will 

collectively make the determination on 

behalf of the Exchange. This is the only 

difference between the CBOE rule text 

and the proposed rule text for NYSE 

Arca. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b) of the Act 9 in general, and 

furthers the objectives of Section 6(b)(5) 

of the Act 10 in particular, because it is 

designed to prevent fraudulent and 

manipulative acts and practices, to 

promote just and equitable principles of 

trade, to foster cooperation and 

coordination with persons engaged in 

facilitating transactions in securities, 

and to remove impediments to and 

perfect the mechanism of a free and 

open market and a national market 

system. The Exchange believes that the 

proposed rule change is appropriate in 

that it creates a mechanism whereas 

Market Makers will be able to provide 

two side quotations even in situations 

where it is difficult to accurately 

calculate the price of given options 

series. 

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. 

mstockstill on PROD1PC66 with NOTICES