Federal Register / Vol. 74, No. 64 / Monday, April 6, 2009 / Notices 15569 

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

10 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. 

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

12 17 CFR 240.19b–4. 

13For the purposes only of waiving the 30-day 

operative delay, the Commission has considered the 

proposed rule’s impact on efficiency, competition, 

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

14 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3 In Amendment No. 1, the Exchange revised the 

purpose section and Exhibit 1 to the proposed rule 

change and clarified that the title of its Fee 

Schedule reflects the Exchange’s recent name 

change. See infra at n.4. 

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 

mechanisms of a free and open market 

and a national market system. The 

Exchange believes that the Pilot 

Program promotes just and equitable 

principles of trade by enabling public 

customers and other market participants 

to express their true prices to buy and 

sell options. 

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 

Because the foregoing rule does not (i) 

significantly affect the protection of 

investors or the public interest; (ii) 

impose any significant burden on 

competition; and (iii) become operative 

for 30 days from the date on which it 

was filed, or such shorter time as the 

Commission may designate 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 9 and Rule 

19b–4(f)(6) thereunder.10

The Exchange has requested that the 

Commission waive the 30-day operative 

delay so that the proposed rule change 

may become operative upon filing with 

the Commission pursuant to Section 

19(b)(3)(A) of the Act 11 and Rule 19b– 

4(f)(6) 12 thereunder. The Commission 

believes that waiving the 30-day 

operative delay is consistent with the 

protection of investors and the public 

interest because such waiver will allow 

the Penny Pilot Program to continue 

without interruption through July 3, 

2009.13 Accordingly, the Commission 

designates the proposed rule change 

operative upon filing with the 

Commission. 

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–NYSEAmex–2009–06 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–NYSEAmex–2009–06. 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 will also be available 

for inspection and copying at NYSE 

Amex’s principal office and on its 

Internet Web site at http:// 

www.nyse.com. 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– 

NYSEAmex–2009–06 and should be 

submitted on or before April 27, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.14

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–7582 Filed 4–3–09; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–59658; File No. SR– 

NYSEAmex–2009–01] 

Self-Regulatory Organizations; NYSE 

Amex LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change, as Modified by 

Amendment No. 1, Amending Its 

Schedule of Fees and Charges for 

Exchange Services 

March 31, 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 19, 

2009 NYSE Amex LLC (‘‘NYSE Amex’’ 

or the ‘‘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. On March 

26, 2009, the Exchange filed 

Amendment No. 1 to the proposed rule 

change.3 The Commission is publishing 

this notice to solicit comments on the 

proposed rule change, as amended, from 

interested persons. 


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15570 Federal Register / Vol. 74, No. 64 / Monday, April 6, 2009 / Notices 

4See SR–NYSEALTR–2009–24 Proposal to 

change the name of the Exchange to NYSE Amex 

LLC. 

5 15 U.S.C. 78s(b)(3)(A)(ii). 

6 17 CFR 240.19b–4(f)(2). 

7For purposes of calculating the 60-day 

abrogation period, the Commission considers the 

proposed rule change to have been filed on March 

26, 2009, the date the Exchange filed Amendment 

No. 1. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to amend its 

Schedule of Fees and Charges for 

Exchange Services. The text of the 

proposed rule change 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 

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 

The Exchange proposes adding a 

Cancellation Fee of $1.50 to its Fee 

Schedule. The proposed Cancellation 

Fee will be charged to an executing 

clearing member for each public 

customer order (origin code ‘‘C’’) 

cancelled in excess of 500 public 

customer orders per month. The 

Cancellation Fee will only be assessed 

on cancelled orders in excess of the 

number of public customer orders that 

the clearing member executes in a 

month on behalf of itself or a 

correspondent firm. 

The Exchange also proposes to 

aggregate and count as one execution all 

public customer options orders from the 

same correspondent firm executed in 

the same series on the same side of the 

market at the same price within a 300 

second period. Recognizing that order 

cancels and trades often happen in large 

numbers, the purpose of this fee is to 

focus on activity that is truly excessive 

and uses bandwidth and system 

capacity while fairly allocating costs 

among members. 

Additionally, this fee will not apply 

to cancelled public customer orders that 

improve the Exchange’s prevailing best 

bid-offer (‘‘BBO’’) market at the time the 

orders are received. Orders that match 

the prevailing BBO market at the time 

the order is received and are 

subsequently cancelled will be included 

in the Cancellation Fee calculation. This 

provision seeks to remove any 

disincentives for firms to enter at risk 

orders that improve the BBO. 

Excessive order cancelling has the 

residual effect of exhausting system 

resources, bandwidth, and capacity. To 

effectively allocate the costs associated 

with order cancellation activity, the 

Exchange believes the fee should be 

calculated based on cancels at the 

correspondent firm level. While the 

clearing firm will ultimately be 

responsible for payment of the fee, the 

Exchange proposes to calculate the fee 

for cancelations [sic] in excess of the 

threshold that occur at the 

correspondent firm level. If the clearing 

firm does not have any correspondent 

firms associated with it, the fee will be 

assessed based on the clearing firm’s 

order cancellation activity. This practice 

will fairly allocate the fee to the party 

responsible for order cancellations. 

The Exchange proposes to waive the 

Cancellation Fee until June 1, 2009. 

The Exchange also proposes clarifying 

language to the Specialist/e-Specialist/ 

DOMM Rights Fee. The Specialist/eSpecialist/DOMM Rights Fee is based 

on the average number of national daily 

customer contracts traded in a given 

issue over a three month period. The 

Exchange calculates the number of 

average national daily customer 

contracts on a rolling three month basis 

with a one month lag. For example, the 

monthly base rate for Specialists, eSpecialists, and DOMMs trading in a 

given symbol in May will be based on 

the national average daily customer 

volume in that issue in January, 

February, and March. The rational [sic] 

for a one month lag is to give 

Specialists, e-Specialists, and DOMMs 

seeking to register in a given symbol a 

clear understanding of the monthly base 

rate at the time of registration. The 

monthly base rate is then divided and 

charged to all of the Specialists, eSpecialists and DOMMs registered in 

that issue based on their prorated share 

of volume on the Exchange in that issue 

during the month. The proposed 

language seeks to clarify the concepts 

discussed above. 

The Exchange also seeks to reflect the 

name change from NYSE Alternext US 

LLC to NYSE Amex LLC in the Fee 

Schedule.4

2. Statutory Basis 

The Exchange believes that the 

proposal is consistent with Section 6(b) 

of the Act, in general, and Section 

6(b)(4), in particular, in that it provides 

for the equitable allocation of dues, fees 

and other charges among its members 

and other market participants that use 

the trading facilities of NYSE Amex 

Options. Under this proposal, all 

similarly situated members and other 

Exchange participants of NYSE Amex 

Options will be charged the same 

reasonable dues, fees and other charges. 

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 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)(ii) of the Act5 and paragraph 

(f)(2) of Rule 19b–46 thereunder. 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.7

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–NYSEAmex-2009–01 on the 

subject line. 


pwalker on PROD1PC71 with NOTICES
Federal Register / Vol. 74, No. 64 / Monday, April 6, 2009 / Notices 15571 

8 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3On March 30, 2009, the Exchange withdrew 

Amendment No. 1. 

4References to Amendment No. 1 in Amendment 

No. 2 should be read as Amendment No. 2. 

Telephone call between Theodore Venuti and Sarah 

Albertson, Division of Trading and Markets, 

Commission, and Bridget Spaulding, Managing 

Director, NYSE Market Data, March 31, 2009. 

5See Securities Exchange Act Release No. 58444 

(August 29, 2008), 73 FR 51872 (September 5, 2008) 

(SR–NYSEArca–2008–96). 

6See Securities Exchange Act Release Nos. 57965 

(June 16, 2008), 73 FR 35178 (June 20, 2008) (SR– 

NASDAQ–2006–060); 57973 (June 16, 2008), 73 FR 

35430 (June 23, 2008) (SR–NASDAQ–2008–050). 

7See Securities Exchange Act Release No. 57966 

(June 16, 2008), 73 FR 35182 (June 20, 2008) (SR– 

NYSE–2007–04). 

8The Exchange notes that it will make the NYSE 

Arca Realtime Reference Prices available to vendors 

no earlier than it makes those prices available to the 

processor under the CTA Plan. 

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–NYSEAmex-2009–01. 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 will also be available 

for inspection and copying at the 

principal office of the self-regulatory 

organization. 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– 

NYSEAmex-2009–01 and should be 

submitted on or before April 27, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.8

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–7605 Filed 4–3–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–59662; File No. SR– 

NYSEArca–2009–25) 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and Order 

Granting Accelerated Approval of 

Proposed Rule Change as Modified by 

Amendment No. 2 Thereto To Extend 

the Pilot Program for NYSE Arca 

Realtime Reference Prices Service 

March 31, 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 20, 

2009, NYSE Arca, Inc. (the ‘‘Exchange’’ 

or ‘‘NYSE Arca’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I and II 

below, which Items have been prepared 

by the Exchange. On March 27, 2009, 

the Exchange submitted Amendment 

No. 1 to the proposed rule change, 

which was withdrawn.3 On March 30, 

2009, the Exchange filed Amendment 

No. 2 to the proposed rule change.4 The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons, and is 

approving the proposal, as modified by 

Amendment No. 2, on an accelerated 

basis. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to extend the 

expiration date of its pilot program for 

the NYSE Arca Realtime Reference 

Prices service until June 30, 2009. There 

is no new rule text. 

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 III 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 

In File No. SR–NYSEArca–2008–96, 

the Exchange established a pilot 

program that allows the Exchange to test 

the viability of a new NYSE Arca-only 

market data service that allows a vendor 

to redistribute on a real-time basis last 

sale prices of transactions that take 

place on the Exchange (‘‘NYSE Arca 

Realtime Reference Prices’’) and to 

establish a flat monthly fee for that 

service. The Commission approved that 

pilot program on August 29, 2008.5

The Exchange intends for the NYSE 

Arca Realtime Reference Prices service 

to accomplish three goals: 

1. To provide a low-cost service that 

will make real-time prices widely 

available to millions of casual investors; 

2. To provide vendors with a real-time 

substitute for delayed prices; and 

3. To relieve vendors of 

administrative burdens. 

This pilot program is similar to pilot 

programs that the Nasdaq Stock Market, 

Inc. (‘‘Nasdaq’’) 6 and the New York 

Stock Exchange, LLC (‘‘NYSE’’) 7 have 

established. 

The pilot program allows internet 

service providers, traditional market 

data vendors, and others (‘‘NYSE ArcaOnly Vendors’’) to make available NYSE 

Arca Realtime Reference Prices on a 

real-time basis.8 The NYSE Arca 

Realtime Reference Price information 

includes last sale prices for all securities 

that trade on the Exchange. It includes 

only prices, and not the size of each 

trade and not bid/asked quotations. 

It features a flat, fixed monthly vendor 

fee, no user-based fees, no vendor 

reporting requirements, and no 

professional or non-professional 

subscriber agreements. 

The Exchange established November 

1, 2008 as the end date for the pilot 

program. The Exchange then extended 


pwalker on PROD1PC71 with NOTICES