3120 Federal Register / Vol. 74, No. 11 / Friday, January 16, 2009 / Notices 

4 15 U.S.C. 78a. 

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

6 17 CFR 240.19b–4(f)(2). 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. 

The MatchPoint fee will again revert 

to the current equity transaction fee of 

$.0015 per share beginning March 1, 

2009. The temporary fee is designed to 

attract more users to the MatchPoint 

system. 

2. Statutory Basis 

The basis under the Securities 

Exchange Act of 1934 (the ‘‘Act’’) 4 for 

the proposed rule change is the 

requirement under Section 6(b)(4) that 

an exchange have rules that provide for 

the equitable allocation of reasonable 

dues, fees and other charges among its 

members and other persons using its 

facilities. The Exchange believes the 

new fees are reasonable in that they 

represent a reduction in fees, and are 

equitable in that they are available to all 

members who access the MatchPoint 

system. 

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 foregoing rule change is effective 

upon filing pursuant to Section 

19(b)(3)(A) 5 of the Act and 

subparagraph (f)(2) of Rule 19b–4 6

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. 

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–NYSE–2009–01 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–NYSE–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 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–NYSE–2009–01 and should 

be submitted on or before February 6, 

2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.7

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–931 Filed 1–15–09; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–59231; File No. SR–NYSE– 

2008–143] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change by New York 

Stock Exchange LLC Amending NYSE 

Rule 103B (‘‘Security Allocation and 

Reallocation’’) to: (1) Prohibit DMM 

Units From Communicating With 

Issuers After Receipt of Notice From 

the Exchange of the Issuer’s 

Impending Listing; (2) Provide DMM 

Unit Marketing Materials to the Issuer 

Prior to the Scheduled Interview 

Rather Than the Day Before; and (3) 

Allow an Issuer Transferring From 

NYSE Alternext U.S. LLC to the NYSE 

To Retain its DMM Unit if Such DMM 

Unit Is an Approved and Registered 

DMM on the NYSE 

January 12, 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 December 

31, 2008, New York Stock Exchange 

LLC (‘‘NYSE’’ 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. 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 Rule 103B (‘‘Security Allocation 

and Reallocation’’) to: (1) Prohibit DMM 

units from communicating with issuers 

after receipt of notice from the Exchange 

of the issuer’s impending listing; (2) 

provide DMM unit marketing materials 

to the issuer prior to the scheduled 

interview rather than the day before; 

and (3) allow an issuer transferring from 

NYSE Alternext U.S. LLC (‘‘Alternext’’) 

to the NYSE to retain its DMM unit if 

such DMM unit is an approved and 

registered DMM on the NYSE. 

The text of the proposed rule change 

is available on the Exchange’s Web site 

(http://www.nyse.com), at the 

Exchange’s Office of the Secretary, and 

at the Commission’s Public Reference 

Room. 

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Federal Register / Vol. 74, No. 11 / Friday, January 16, 2009 / Notices 3121 

4See SR–NYSEALTR–2008–21 (to be filed on 

December 31, 2008). 

5See Securities Exchange Act Release No. 58857 

(October 24, 2008), 73 FR 65435 (November 3, 2008) 

(SR–NYSE–2008–52)(’’Allocation Policy’’). 

Specialist units were eliminated and replaced with 

DMM units in the new Market Model filing. See 

Securities Exchange Act Release No. 58845 (October 

24, 2008), 73 FR 64379 (October 29, 2008) (SR– 

NYSE–2008–46) (‘‘New Market Model’’). 

6 DMM units are eligible to participate in the 

allocation process of a listed security when the 

DMM unit has not failed to comply with its quoting 

requirements for ‘‘Less Active’’ (any listed security 

that has a consolidated average daily volume of less 

than one million shares per calendar month)’’ and 

‘‘More Active’’ (any listed security that has a 

consolidated average daily volume equal to or 

greater than one million shares per calendar 

month)’’ securities. Those DMM units that have 

failed to meet the quoting requirement for a 

consecutive two month period are ineligible for a 

minimum of two months following the second 

consecutive month of its failure to meet its quoting 

requirement. (‘‘Penalty Period’’). The DMM unit 

must satisfy the quoting requirement for the two 

consecutive months of the Penalty Period to be 

eligible to participate in the allocation process. See 

NYSE Rule 103B, Section II(J)(2). 

7NYSE Rule 103B, Section III. 

8See Securities Exchange Act Release No. 58673 

(September 29, 2008), 73 FR 57707 (October 3, 

2008) (SR–AMEX–2008–62 and SR–NYSE–2008– 

60). 

9See Securities Exchange Act Release No. 55641 

(April 17, 2007), 72 FR 20396 (April 24, 2007) (SR– 

NYSE–2007–39) (amending NYSE Rule 103B to 

allow an issuer to waive the allocation process 

when the issuer’s security was assigned an LMM 

that was also a registered NYSE specialist, thus 

affording the issuer to retain the same market 

maker). 

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 the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to amend 

NYSE Rule 103B (‘‘Security Allocation 

and Reallocation’’) to: (1) Prohibit DMM 

units from communicating with issuers 

after receipt of notice from the Exchange 

of the issuer’s impending listing; (2) 

provide DMM unit marketing materials 

to the issuer prior to the scheduled 

interview rather than the day before; 

and (3) allow an issuer transferring from 

NYSE Alternext U.S. LLC (‘‘Alternext’’) 

to the NYSE to retain its DMM unit if 

such DMM unit is an approved and 

registered DMM on the NYSE. 

The Exchange notes that parallel 

changes are proposed to be made to the 

rules of the NYSE Alternext Exchange 

(formerly the American Stock 

Exchange).4

I. Background 

On October 24, 2008, the NYSE 

amended its allocation process to 

provide issuers with more autonomy in 

the selection of its assigned DMM unit.5

The revised allocation process 

established a single objective measure 6

to determine a DMM unit’s eligibility to 

participate in the allocation process. 

The single objective measure made it 

feasible for an issuer to select and 

conduct interviews of eligible DMM 

units or delegate the selection to the 

Exchange.7 DMM units selected for an 

interview are notified directly by the 

Exchange and may provide material to 

the Exchange which will be given to the 

issuer the day before the scheduled 

interview. 

II. Proposed Amendments 

During the administration of the new 

allocation process, it has become clear 

that certain amendments to the rule are 

required as a result of certain practical 

considerations that need to be addressed 

in the application of the rule. 

1. Interview Process 

The Exchange proposes to amend 

Section III(A) of NYSE Rule 103B to 

prohibit DMM units from having contact 

with an issuer after the Exchange 

provides notice to DMM units about the 

issuer’s impending listing on the NYSE. 

Pursuant to the Exchange’s former 

Allocation Policy, specialists were 

required to cease communication with 

an issuer once the Exchange issued the 

invitation for specialists to apply for an 

issue. 

The modification to the allocation 

process to allow an issuer to select its 

DMM units from the list of eligible 

DMM units on the Exchange ended the 

administrative need for the Exchange to 

solicit applications from DMM units 

which would have triggered the 

prohibition of communication between 

DMM units and listing companies. 

Thus, the Exchange inadvertently 

removed the prohibition of ending 

communication between the DMM unit 

and the issuer prior to the interview. 

Currently NYSE 103B prohibits 

communication between DMM units 

and issuers following their interview. 

The Exchange still believes that 

prohibiting communication between 

DMM units and issuers just prior to the 

interview is appropriate in order to 

promote fairness and objectivity in the 

interview process. The Exchange 

therefore proposes to amend NYSE Rule 

103B, Section III to add a section 

prohibiting DMM units, or any 

individuals acting on their behalf, from 

having any contact with any listing 

company once the Exchange provides 

written notice to DMM units that the 

listing company is listing on the 

Exchange. 

In addition to the above modification 

related to the interview process, the 

Exchange further seeks to allow more 

flexibility in the delivery of DMM 

marketing materials to an issuer based 

on the availability of the issuer. 

Currently, the rule provides that DMM 

marketing materials are to be provided 

the day before the interview. The 

Exchange proposes to amend the 

language to allow for the marketing 

materials to be provided prior to the 

interview. Some issuers that interview 

at the Exchange may be in transit the 

day prior to the interview or 

participating in road shows and 

business trips and are therefore 

unavailable to receive the materials the 

day before the scheduled interview. In 

those instances the Exchange provides 

the issuer with the materials the day of 

the interview. In instances where an 

issuer is available to receive the 

marketing materials in advance of the 

scheduled interview the Exchange 

would like to be able to provide the 

materials to the issuer. Accordingly, the 

Exchange proposes to amend the rule to 

simply state that the Exchange will 

provide the issuer with the DMM units’ 

marketing materials prior to the 

interview. 

2. Allocation of Listing Companies 

Transferring From Alternext to the 

NYSE 

On October 1, 2008, the Exchange 

completed its acquisition of Alternext.8

Alternext, similar to the Exchange, 

operates a DMM system and securities 

traded on Alternext are assigned to a 

DMM unit. In certain instances, 

Alternext DMM units may also be 

registered DMM units on the NYSE. 

In these instances, the Exchange seeks 

to afford issuers transferring from 

Alternext the same privileges it affords 

issuers transferring from its other 

affiliated Exchange, NYSE Arca.9

Specifically, the Exchange seeks to 

amend NYSE Rule 103B to allow an 

issuer that transfers from Alternext to 

the NYSE to waive the allocation 

process in instances where the issuer’s 

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3122 Federal Register / Vol. 74, No. 11 / Friday, January 16, 2009 / Notices 

10Currently, the proposed waiver of the 

allocation process would occur in very limited 

circumstances because only one DMM unit is 

registered on both Alternext and the NYSE. 

11 15 U.S.C. 78f(b)(5). 

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

13 17 CFR 240.19b–(f)(6). Pursuant to Rule 19b– 

4(f)(6)(iii) under the Act, the Exchange is required 

to give the Commission written notice of its 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 proposed rule change, or such shorter time as 

designated by the Commission. The Exchange has 

satisfied this requirement. 

14 17 CFR 240.19b–4(f)(6). 

15 17 CFR 240.19b–4(f)(6)(iii). 

16See Securities Exchange Act Release No. 55641 

(April 17 2007), 72 FR 20396 (April 24, 2007) (SR– 

NYSE–2007–39). 

17For purposes only of waiving the 30-day 

operative delay, the Commission has considered the 

proposed rule’s impact on efficiency, competition, 

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

security was assigned to a registered 

DMM unit that is also an approved and 

registered DMM unit on the NYSE.10 In 

any event, the issuer may still choose to 

follow the regular allocation process 

and have its security referred for 

allocation through the allocation 

process pursuant to NYSE Rule 103B, 

Section III. If the listing company 

chooses to have its DMM unit selected 

by the Exchange pursuant to NYSE Rule 

103B, Section III(B), and requests not to 

be allocated to the DMM unit that was 

its Alternext DMM unit, such request 

will be honored. 

The Exchange believes that the 

proposed rule change is consistent with 

the goals of the Allocation policy to 

provide an incentive for ongoing 

enhancement of the relationship 

between the listing company and the 

DMM unit, to encourage continued high 

performance of the DMM unit by 

allowing them to use their experience 

and knowledge of the listing company’s 

securities and to provide the best 

possible match between the DMM unit 

and the security. 

2. Statutory Basis 

The basis under the Act for the 

proposed rule change is the requirement 

under Section 6(b)(5),11 which requires 

that an exchange have rules that are 

designed to foster cooperation and 

coordination with persons engaged in 

regulating, clearing, settling, processing 

information with respect to, and 

facilitating transactions in securities, 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 the proposed amendments are 

consistent with these objectives. The 

amendments sought herein seek to 

alleviate impediments in the 

administrative process of assigning 

securities to DMM units which 

ultimately facilitates the fair and orderly 

trading in the subject security. 

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 proposed rule change: (i) 

Does not significantly affect the 

protection of investors or the public 

interest; (ii) does not impose any 

significant burden on competition; and 

(iii) does not become operative for 30 

days after the date of the filing, 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) thereunder.13

A proposed rule change filed 

pursuant to Rule 19b–4(f)(6) under the 

Act 14 normally does not become 

operative for 30 days after the date of its 

filing. However, Rule 19b–4(f)(6)(iii) 15

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. 

The Commission believes that 

waiving the 30-day operative delay is 

consistent with the protection of 

investors and the public interest 

because it will allow the Exchange to 

immediately remove any disparity in 

the treatment afforded issuers of the 

NYSE’s affiliate exchanges and to 

further objectivity and fairness of the 

allocation process by immediately 

establishing the specific point in time 

when DMM units must cease 

communication with issuers prior to 

interviews. The language being used in 

this proposed rule filing for the transfer 

of issuers from NYSE Alternext to NYSE 

is substantively similar to the language 

already in place for its other related 

Exchange, NYSE Arca.16 Furthermore, 

the proposed rule filing seeks to restore 

language regarding the prohibition of 

communication between the DMM units 

and the issuer that was inadvertently 

omitted from the former NYSE Rule 

103B to the current NYSE Rule 103B. 

For these reasons, the Commission 

designates that the proposed rule 

change become operative immediately 

upon filing.17

At any time within 60 days of the 

filing of the proposed rule change, the 

Commission may summarily abrogate 

the 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–NYSE–2008–143 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–NYSE–2008–143. 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 

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Federal Register / Vol. 74, No. 11 / Friday, January 16, 2009 / Notices 3123 

18 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. 

4See Securities Exchange Act Release No. 59231 

(January 12, 2009) (SR–NYSE–2008–143). 

5See 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). 

6 15 U.S.C. 78f. 

7See Securities Exchange Act Release No. 58705 

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

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

Relocation). 

8See Securities Exchange Act Release No. 58705 

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

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

Relocation); Securities Exchange Act Release No. 

58833 (October 22, 2008), 73 FR 64642 (October 30, 

2008) (SR–NYSE–2008–106) and Securities 

Exchange Act Release No. 58839 (October 23, 2008), 

73 FR 64645 (October 30, 2008) (SR–NYSEALTR– 

2008–03) (together, approving the Bonds 

Relocation); Securities Exchange Act Release No. 

59022 (November 26, 2008), 73 FR 73683 

(December 3, 2008) (SR–NYSEALTR–2008–10) 

(adopting amendments to NYSE Alternext Equities 

Rules to track changes to corresponding NYSE 

Rules); Securities Exchange Act Release No. 59027 

(November 28, 2008), 73 FR 73681 (December 3, 

2008) (SR–NYSEALTR–2008–11) (adopting 

amendments to Rule 62—NYSE Alternext Equities 

to track changes to corresponding NYSE Rule 62). 

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 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–NYSE– 

2008–143 and should be submitted on 

or before February 6, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.18

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–932 Filed 1–15–09; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–59233; File No. SR– 

NYSEALTR–2008–21] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change by NYSE 

Alternext US LLC Amending NYSE 

Alternext Equities Rule 103B To 

Conform to Amendments Filed by the 

New York Stock Exchange To: (1) 

Prohibit DMM Units From 

Communicating With Issuers After 

Receipt of Notice From the Exchange 

of the Issuer’s Impending Listing; and 

(2) Provide DMM Unit Marketing 

Materials to the Issuer Prior to the 

Scheduled Interview Rather Than the 

Day Before 

January 12, 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 December 

31, 2008, NYSE Alternext US LLC (the 

‘‘Exchange’’ or ‘‘NYSE Alternext’’) 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. 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 103B 

(‘‘Security Allocation and 

Reallocation’’) to conform to 

amendments filed by the New York 

Stock Exchange to: (1) Prohibit DMM 

units from communicating with issuers 

after receipt of notice from the Exchange 

of the issuer’s impending listing; and (2) 

provide DMM unit marketing materials 

to the issuer prior to the scheduled 

interview rather than the day before. 

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 

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 the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to amend 

NYSE Alternext Equities Rule 103B 

(‘‘Security Allocation and 

Reallocation’’) to conform with 

amendments filed by the New York 

Stock Exchange 4 to: (1) Prohibit DMM 

units from communicating with issuers 

after receipt of notice from the Exchange 

of the issuer’s impending listing; and (2) 

provide DMM unit marketing materials 

to the issuer prior to the scheduled 

interview rather than the day before. 

I. Background 

As described more fully in a related 

rule filing,5 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 US 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’’).6 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, 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.7

As part of the Equities Relocation, 

NYSE Alternext adopted NYSE Rules 1– 

1004, subject to such changes as 

necessary to apply the Rules to the 

Exchange, as the NYSE Alternext 

Equities Rules to govern trading on the 

NYSE Alternext Trading Systems.8 The 

NYSE Alternext Equities Rules, which 

became operative on December 1, 2008, 

are substantially identical to the current 

NYSE Rules 1–1004 and the Exchange 

continues to update the NYSE Alternext 

Equities Rules as necessary to conform 

with rule changes to corresponding 

NYSE Rules filed by the NYSE. 

II. Proposed Amendments 

The Exchange proposes to amend 

Section III (A) of NYSE Alternext 

Equities Rule 103B to prohibit DMM 

units from having contact with an issuer 

after the Exchange provides notice to 

DMM units about the issuer’s 

impending listing on the Exchange. 

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