17708 Federal Register / Vol. 74, No. 72 / Thursday, April 16, 2009 / Notices 

7 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). 

6The Exchange represents that a CEO designee 

will be an officer of the Exchange, who has also 

been designated as a Trading Official, such as the 

Executive Vice President of Trading Operations or 

the Vice President of Trade Operations or the Vice 

President of Options Floor Operations. Exchange 

officers are employees of the Exchange, and are not 

affiliated with ATP Holders or ATP Firms. 

7 In the event a party to a transaction requests the 

review of a transaction, an Exchange officer 

nonetheless would need to determine, on his or her 

own motion, whether to review the transaction. 

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

9 15 U.S.C. 78f(b)(5). 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.7

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–8658 Filed 4–15–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–59736; File No. SR– 

NYSEAmex–2009–10] 

Self-Regulatory Organizations; NYSE 

Amex LLC; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change Amending Rule 975NY— 

Obvious Errors and Catastrophic 

Errors 

April 8, 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 April 1, 

2009, NYSE Amex LLC (‘‘NYSE Amex’’ 

or the ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(the ‘‘Commission’’) the proposed rule 

change as described in Items I and II 

below, which Items have been prepared 

by the self-regulatory organization. 

NYSE Amex 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 975NY—Obvious Errors 

and Catastrophic Errors. 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 

NYSE Amex proposes to amend Rule 

975NY pertaining to the nullification 

and adjustment of options transactions. 

Specifically, the Exchange proposes to 

adopt a new provision which provides 

that in the interest of maintaining a fair 

and orderly market and for the 

protection of investors, the Chief 

Executive Officer of NYSE Amex 

(‘‘CEO’’) or his/her designee 

(collectively ‘‘Exchange officer’’),6 may, 

on his or her own motion or upon 

request, determine to review any 

transaction occurring on the Exchange 

that is believed to be erroneous.7 A 

transaction reviewed pursuant to this 

new provision may be nullified or 

adjusted only if it is determined by the 

Exchange officer that the transaction is 

erroneous as provided in Rule 

975NY(a)(1)–(5) or Commentary .04 

thereof. A transaction would be adjusted 

or nullified in accordance with the 

provision under which it is deemed an 

erroneous transaction. The Exchange 

officer may be assisted by a Trading 

Official in reviewing a transaction. 

The Exchange officer shall act 

pursuant to this paragraph as soon as 

possible after receiving notification of 

the transaction, and ordinarily would be 

expected to act on the same day as the 

transaction occurred. However, because 

a transaction under review may have 

occurred near the close of trading or due 

to unusual circumstances, the rule 

provides that the Exchange officer shall 

act no later than 9:30 a.m. (ET) on the 

next trading day following the date of 

the transaction in question. An ATP 

Holder affected by a determination to 

nullify or adjust a transaction pursuant 

to this new provision may appeal such 

determination in accordance with Rule 

975NY(a)(6); however, a determination 

by an Exchange officer not to review a 

transaction, or a determination not to 

nullify or adjust a transaction for which 

a review was requested or conducted, is 

not appealable. NYSE Amex believes it 

is appropriate to limit review on appeal 

to only those situations in which a 

transaction is actually nullified or 

adjusted. 

This new provision is not intended to 

replace a party’s obligation to request a 

review, within the required time periods 

under Rule 975NY(a)(3), of any 

transaction that it believes meets the 

criteria for an obvious error. And, if a 

transaction is reviewed and a 

determination has been rendered 

pursuant to Rules 975NY(a)(1)–(5) or 

Commentary .04 thereof, no additional 

relief may be granted under this new 

provision. Moreover, NYSE Amex does 

not anticipate exercising this new 

authority in every situation in which a 

party fails to make a timely request for 

review of a transaction pursuant to Rule 

975NY(a)(3). NYSE Amex believes this 

provision will help to protect the 

integrity of its marketplace by vesting an 

Exchange officer with the authority to 

review a transaction that may be 

erroneous, notwithstanding that a party 

failed to make a timely request for a 

review. 

The Exchange also proposes at this 

time to revise Rule 975NY(a)(3)(A) in 

order to clarify that the time period in 

which a Market Maker or other ATP 

Holder must notify the Exchange, when 

requesting relief from a possible 

erroneous transaction, applies to all 

transactions that are subject to 

adjustment or nullification, pursuant to 

Rule 975NY(a)(1)–(5). 

2. Statutory Basis 

This proposed rule change is designed 

to allow an Exchange officer to review 

a transaction in order to provide the 

opportunity for potential relief to a 

party affected by an obvious error. The 

Exchange believes that for these reasons 

the proposed rule change is consistent 

with Section 6(b) of the Act 8 in general, 

and furthers the objectives of Section 

6(b)(5) of the Act 9 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 

mstockstill on PROD1PC66 with NOTICES

Federal Register / Vol. 74, No. 72 / Thursday, April 16, 2009 / Notices 17709 

10 15 U.S.C. 78s(b)(3)(A)(iii). 

11 17 CFR 240.19b–4(f)(6). 

12 15 U.S.C. 78s(b)(3)(A). 

13 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. 

14 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3Amendment No. 1 was a partial amendment 

that: (i) Revised the definition of ‘‘Asset-backed 

security’’ set forth in the purpose section to 

accurately reflect the proposed rule text; (ii) 

amended the definition of ‘‘TRACE-eligible 

security’’ in both the purpose section and the rule 

text to remove a parenthetical that was 

inadvertently included in the original proposal; and 

(iii) made minor technical edits to the purposed 

rule text. 

system. NYSE Amex notes that the 

Exchange officer can adjust or nullify a 

transaction under the authority granted 

by this new provision only if the 

transaction meets the objective criteria 

for an obvious error under NYSE Amex 

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 10 and Rule 

19b–4(f)(6) thereunder.11 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 12 and Rule 19b–4(f)(6)(iii) 

thereunder.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 

Number SR–NYSEAmex–2009–10 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–2009–10. 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–NYSEAmex–2009–10 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. E9–8657 Filed 4–15–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–59733; File No. SR–FINRA– 

2009–010] 

Self-Regulatory Organizations; 

Financial Industry Regulatory 

Authority, Inc.; Notice of Filing of 

Proposed Rule Change and 

Amendment No. 1 Thereto To Expand 

TRACE To Include Agency Debt 

Securities and Primary Market 

Transactions 

April 8, 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 18, 

2009, the Financial Industry Regulatory 

Authority, Inc. (‘‘FINRA’’) (f/k/a 

National Association of Securities 

Dealers, Inc. (‘‘NASD’’)) 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 FINRA. On April 8, 2009, 

FINRA submitted 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. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

FINRA is proposing to amend the 

FINRA Rule 6700 Series (except for 

Rules 6720 and 6740) and FINRA Rule 

7730 as follows: 

(1) In Rule 6710, to amend the defined 

terms (A) ‘‘TRACE-eligible security’’ in 

paragraph (a) to include securities 

issued or guaranteed by an agency or a 

government-sponsored enterprise 

(except securities issued by the U.S. 

mstockstill on PROD1PC66 with NOTICES