Federal Register / Vol. 74, No. 72 / Thursday, April 16, 2009 / Notices 17699 

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

2 17 CFR 240.19b–4. 

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

4 17 CFR 240.19b–4(f)(6). 

5NYSE Amex currently makes the NYSE Amex 

Order Imbalance Information datafeed available to 

vendors, broker-dealers and any other party that 

wishes to subscribe to this market data feed service. 

There is no fee for the service and the Exchange 

does not propose to establish one at this time. If the 

Exchange determines to establish fees for this 

service, it will be submit a proposed rule change 

to the Commission pursuant to the 19b–4 process. 

6 ‘‘MOC’’ or Market-at-the-Close orders are to be 

executed in their entirety at the closing price. If not 

executed due to a trading halt or by its terms, e.g., 

buy minus or sell plus, the order will be cancelled. 

‘‘LOC’’ or Limit-at the-Close orders are entered for 

execution at the closing price, provided that the 

closing price is at or within the limit specified. LOC 

Continued 

abusive or coercive practices. On July 8, 

2008, the Commission released findings 

from a 10-month staff examination of 

three major credit rating agencies. The 

staff examinations uncovered 

weaknesses in ratings practices and the 

need for remedial action by the firms to 

provide meaningful ratings and the 

necessary levels of disclosure to 

investors. 

In June and July of 2008, the 

Commission proposed a three-fold set of 

reforms that would address further the 

conflicts of interests, disclosures, 

internal policies, and business practices 

of credit rating agencies registered as 

NRSROs. With respect to the first set of 

reforms, in February 2009, the 

Commission issued final rule 

amendments to existing NRSRO rules. 

In conjunction with the adoption of 

these new measures, the Commission 

proposed an additional amendment that 

would require NRSROs to disclose 

ratings history information, in XBRL 

format, for 100% of all issuer-paid 

credit ratings determined after June 26, 

2007 (the effective date of most of the 

provisions of the Credit Rating Agency 

Reform Act of 2006). Finally, in 

February 2009, the Commission issued 

a release proposing an amendment that 

would require NRSROs that are hired by 

arrangers to perform credit ratings for 

structured finance products to disclose 

to other NRSROs (and only other 

NRSROs) that they are hired to 

determine credit ratings for those deals 

and to obtain from such arrangers a 

representation that they will provide 

information given to the hired NRSRO 

to other NRSROs. 

Dated: April 13, 2009. 

By the Commission. 

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–8704 Filed 4–15–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–59743; File No. SR– 

NYSEAmex–2009–11] 

Self-Regulatory Organizations; NYSE 

Amex LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Making Available an 

NYSE Amex Order Imbalance 

Information Datafeed as a Separate, 

Stand-Alone Market Data Product 

April 9, 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 April 2, 

2009, NYSE Amex LLC (‘‘NYSE Amex’’ 

or ‘‘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 NYSE Amex. NYSE Amex filed the 

proposed rule change pursuant to 

Section 19(b)(3)(A) of the Act 3 and Rule 

19b–4(f)(6) thereunder,4 which renders 

it 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 make 

available an NYSE Amex Order 

Imbalance Information datafeed as a 

separate, stand-alone market data 

product. The text of the proposed rule 

change is available at the Exchange, the 

Commission’s Public Reference Room, 

and http://www.nyse.com. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, 

NYSE Amex 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. NYSE 

Amex 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 

NYSE Amex LLC proposes to make 

available an NYSE Amex Order 

Imbalance Information datafeed as a 

separate, stand-alone market data 

product. 

Currently, NYSE Amex Equities Rules 

15 and 123C allow Exchange systems to 

make available a datafeed of real-time 

order imbalances that accumulate prior 

to the opening of trading on the 

Exchange and prior to the closing of 

trading on the Exchange. Through this 

instant filing, the Exchange proposes to 

establish the NYSE Amex Order 

Imbalance Information services to 

which NYSE Amex Equities Rules 15 

and 123C refer.5

NYSE Amex Order Imbalance 

Information is a datafeed of real-time 

order imbalances that accumulate prior 

to the opening of trading on the 

Exchange and prior to the close of 

trading on the Exchange. The datafeed 

contains aggregate information about 

orders that are subject to execution at 

the market’s opening or closing price, as 

the case may be, and represent issues 

that are likely to be of particular trading 

interest at the opening or closing. 

Order Imbalance Information Prior to 

the Opening Transaction 

The order imbalance information 

disseminated prior to the opening 

transaction, consistent with NYSE 

Amex Equities Rule 15, contains all 

interest eligible for execution in the 

opening transaction of the security in 

Exchange systems. The previous trading 

day’s closing price on NYSE Amex in 

the security will serve as the reference 

price for the order imbalance 

information disseminated prior to the 

opening transaction. The order 

imbalance information disseminated 

prior to the opening transaction 

indicates to market participants the 

number of shares that would be required 

to equalize buy and sell interest (i.e., 

flat) at the reference price. The 

Exchange proposes to distribute order 

imbalance information at specified 

intervals prior to the opening: 

• Every five minutes between 8:30 

a.m. EST and 9 a.m. EST. 

• Every one minute between 9 a.m. 

EST and 9:20 a.m. EST. 

• Every 15 seconds between 9:20 a.m. 

EST and the opening (or 9:35 a.m. EST 

if the opening is delayed). 

Order Imbalance Information Prior to 

the Closing Transaction 

The order imbalance information 

disseminated prior to the closing 

transaction is consistent with the 

provisions of subparagraphs (5) and (6) 

of NYSE Amex Equities Rule 123C.6

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17700 Federal Register / Vol. 74, No. 72 / Thursday, April 16, 2009 / Notices 

orders limited at the closing price are not 

guaranteed an execution. NYSE Amex Equities Rule 

123C(5) provides in part: ‘‘Imbalance publications 

will include MOC orders as well as marketable LOC 

orders. In that regard, LOC orders to buy at a price 

higher than the last sale price are to be included 

with the buy MOC orders; LOC orders to sell at a 

price lower than the last sale price are to be 

included with the sell MOC orders. LOC orders 

with a limit equal to the last sale price would not 

be included in the imbalance calculation. The last 

sale price at 3:40 p.m. is used for the first 

mandatory publication and 3:50 p.m. for the 

second.’’ 

7The Participants in the CTA and CQ Plans first 

submitted the Consolidated Vendor Form to the 

Commission for immediate effectiveness in 1990. 

See Securities Exchange Act Release No. 28407 

(September 6, 1990), 55 FR 37276 (September 10, 

1990) (SR–CTA/CQ–4–281). The Commission 

approved a revised version of it in 1996 in 

conjunction with the participants’ restatement of 

the CTA and CQ Plans. See Securities Exchange Act 

Release No. 37191 (May 9, 1996), 61 FR 24842 (May 

16, 1996) (SR–CTA/CQ–96–1). 

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

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

10 17 CFR 240.19b–4(f)(6). 

11 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6)(iii) requires a self-regulatory organization to 

give the Commission written notice of its intent to 

file 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 complied with this 

requirement. 

12 Id. 

Order imbalance information 

disseminated prior to the close uses the 

last sale price in the security on NYSE 

Amex prior to dissemination of the 

order imbalance information as its 

reference price to indicate the number 

of shares required to close ‘‘flat,’’ i.e., at 

the reference price. 

Similar to the dissemination of order 

imbalance information prior to the 

open, order imbalance information 

disseminated prior to the close is 

distributed at specified intervals: 

• Every fifteen seconds between 3:40 

p.m. EST and 3:50 p.m. EST. 

• Every five seconds between 3:50 

p.m. EST and 4 p.m. EST. 

On any day that the scheduled close 

of trading on the Exchange is earlier 

than 4 p.m. EST, the dissemination of 

order imbalance information prior to the 

closing transaction will commence 20 

minutes before the scheduled closing 

time. Order imbalance information will 

be disseminated every 15 seconds for 

approximately 10 minutes. Thereafter, 

the order imbalance information will be 

disseminated every five seconds until 

the scheduled closing time. 

NYSE Amex Order Imbalance 

Information includes the imbalance 

information that the Exchange is 

required to disseminate pursuant to 

NYSE Rule 123C(5), as well as 

automated real-time streaming order 

imbalance information at specified 

intervals. The datafeed containing NYSE 

Amex Information contains an 

automated real-time streaming order 

imbalance information at specified 

intervals as well as MOC Imbalances 

that Designated Market Makers 

disseminate pursuant to NYSE Amex 

Equities Rule 123C(5) at 3:40 p.m. and 

3:50 p.m. 

The Exchange proposes to offer this 

order imbalance information as a standalone market data product in order to 

provide all investors with an 

opportunity to obtain information 

regarding opening and closing 

imbalances on the Exchange. The 

Exchange is not imposing end-user fees, 

is not requiring end-users to sign 

contracts and is subjecting vendor 

receipt and use of the information to 

very few administrative burdens (e.g., 

no reporting requirements and no enduser contracts). 

The Exchange proposes to make the 

NYSE Amex Order Imbalance 

Information datafeed available under 

the same contracting arrangement that 

the Commission has approved for the 

receipt and use of market data under the 

CTA and CQ Plans. That arrangement 

contemplates that each datafeed 

recipient enter into the Commissionapproved standard form of ‘‘Agreement 

for Receipt and Use of Market Data’’ that 

Network A uses for data redistributors 

and other parties that use the data for 

purposes other than interrogation.7

Exhibit A to each of those agreements 

would need to be updated to reflect the 

receipt and use of NYSE Amex Order 

Imbalance Information. The 

arrangement does not require an enduser of the information (other than a 

data feed recipient) to enter into any 

agreement. 

The Exchange submits that the NYSE 

Amex Order Imbalance Information 

datafeed benefits market participants by 

facilitating their prompt access to 

widespread order imbalance 

information. 

2. Statutory Basis 

The basis under the Securities 

Exchange Act of 1934 (the ‘‘Act’’) for the 

proposed rule change is the requirement 

under Section 6(b)(5) 8 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 Exchange believes 

that this proposal is in keeping with 

those principles by facilitating 

investors’ prompt access to free, 

widespread NYSE Amex Order 

Imbalance Information and providing 

increased transparency. Additionally, 

this proposal provides market 

participants with supplemental market 

information prior to the execution of the 

opening and closing transactions on the 

Exchange, which supports the system of 

a free and open market. 

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 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 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 subparagraph (f)(6) of 

Rule 19b–4 thereunder.10

A proposed rule change filed under 

Rule 19b–4(f)(6) normally may not 

become operative prior to 30 days after 

the date of filing.11 However, Rule 19b– 

4(f)(6)(iii) 12 permits the Commission to 

designate a shorter time if such action 

is consistent with the protection of 

investors and the public interest. The 

Exchange has requested that the 

Commission waive the 30-day operative 

delay and designate the proposed rule 

change operative upon filing. 

The Commission believes that 

waiving the 30-day operative delay is 

consistent with the protection of 

investors and the public interest 

because the Exchange may immediately 

provide increased transparency to 

market participants without charge by 

disseminating supplemental 

information prior to the execution of the 

opening and closing transactions on the 

Exchange. Therefore, the Commission 

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Federal Register / Vol. 74, No. 72 / Thursday, April 16, 2009 / Notices 17701 

13For purposes only of waiving the 30-day 

operative delay of this proposal, the Commission 

has considered the proposed rule’s impact on 

efficiency, competition, and capital formation. 15 

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

14 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 59475 

(February 26, 2009), 74 FR 9830. 

4See Chapter V, Section 14 of the BOX Rules. 

5BOX may trade options contracts in one-cent 

increments in certain approved issues through July 

3, 2009, as part of the Penny Pilot Program. See 

Securities Exchange Act Release No. 59629 (March 

26, 2009), 74 FR 15021 (April 2, 2009) (SR–BX– 

2009–17). 

6The Commission has considered the proposed 

rule change’s impact on efficiency, competition and 

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

7 15 U.S.C. 78f. 

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

9 15 U.S.C. 78s(b)(2). 

designates the proposal operative upon 

filing.13

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 

No. SR–NYSEAmex-2009–11 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–NYSEAmex-2009–11. 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 NYSE Amex. 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-2009–11 and should be 

submitted on or before May 7, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.14

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–8683 Filed 4–15–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–59742; File No. SR–BX– 

2009–014] 

Self-Regulatory Organizations; 

NASDAQ OMX BX, Inc.; Order 

Approving a Proposed Rule Change 

Relating to Zero Bid Orders on the 

Boston Options Exchange Facility 

April 9, 2009. 

On February 26, 2009, NASDAQ OMX 

BX, Inc. (‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’), pursuant to Section 

19(b)(1) of the Securities Exchange Act 

of 1934 (‘‘Act’’) 1 and Rule 19b–4 

thereunder,2 a proposed rule change 

relating to zero bid orders on the Boston 

Options Exchange Facility. The 

proposed rule change was published for 

comment in the Federal Register on 

March 6, 2009.3 The Commission 

received no comments on the proposal. 

This order approves the proposal. 

The proposed rule change amends 

Chapter V, Section 14 of the Rules of the 

Boston Options Exchange Group, LLC 

(‘‘BOX’’) to clarify the treatment of 

Market Orders to sell and BOX–Top 

Orders to sell when the highest bid on 

BOX is zero in the options series for a 

particular order (‘‘Zero Bid Order’’). 

Currently, Section 14 states, in part, 

that: ‘‘[i]n the case where the lowest 

offer for any options contract is $.05, 

and an Options Participant enters a 

Market Order to sell that series, any 

such Market Order shall be considered 

a Limit Order to sell at a price of $.05.’’ 4

The Exchange is amending Section 14 

so that it will apply equally to Market 

Orders to sell and BOX–Top Orders to 

sell when the highest bid on BOX is 

zero in the options series. In this case 

such Zero Bid Orders will be considered 

Limit Orders to sell at a price, above 

zero, that is equal to the minimum 

trading increment applicable to that 

particular options series. 

Consequently, where the BOX market 

displays a zero bid and the options 

series is subject to the Penny Pilot 

Program,5 the Zero Bid Order will be 

considered a Limit Order to sell at a 

price of $.01. If the options series is not 

subject to the Penny Pilot Program, the 

Zero Bid Order will be considered a 

Limit Order to sell at a price of $.05 or 

$.10, depending upon the minimum 

trading increment for the specific 

options series of the Zero Bid Order. 

Further, if the resulting Limit Order 

would cause either a locked or crossed 

market, then the original Market Order 

or BOX–Top Order will be rejected by 

the Trading Host. 

After careful review, the Commission 

finds that the proposed rule change is 

consistent with the requirements of the 

Act and the rules and regulations 

thereunder applicable to a national 

securities exchange 6 and, in particular, 

the requirements of Section 6 of the 

Act.7 Specifically, the Commission finds 

that the proposal is consistent with 

Section 6(b)(5) of the Act,8 in that the 

proposal has been designed to promote 

just and equitable principles of trade, 

and to protect investors and the public 

interest. The Commission believes that 

the proposed rule change will provide 

greater clarification to market 

participants regarding the handling of 

Zero Bid Orders on BOX. In addition, 

the Commission believes that the 

proposal will benefit the public interest 

by preventing locked or crossed markets 

in situations where the Limit Order 

resulting from the Zero Bid Order would 

cause such a lock or cross. 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,9 that the 

proposed rule change (SR–BX–2009– 

014) is approved. 

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