29790 Federal Register / Vol. 75, No. 102 / Thursday, May 27, 2010 / Notices 

18 15 U.S.C. 78s(b)(3)(A)(ii). 19 17 CFR 240.19b–4(f)(2). 

20 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. 61542 

(February 18, 2010), 75 FR 8768 (February 25, 2010) 

(order approving SR–FINRA–2009–093). 

Finally, the Exchange has made 

clarifying amendments to its 

terminology throughout the Fee 

Schedule to eliminate extraneous terms 

and outdated language. The Exchange 

believes that these amendments should 

simplify the Fee Schedule to the benefit 

of its members. 

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 Act 18 and 

paragraph (f)(2) of Rule 19b–4 19

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–Phlx–2010–69 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–Phlx–2010–69. 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 Web site viewing and 

printing 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 such 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 

publicly available. All submissions 

should refer to File Number SR–Phlx– 

2010–69 and should be submitted on or 

before June 17, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.20

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–12694 Filed 5–26–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62143; File No. SR– 

NYSEAMEX–2010–45] 

Self-Regulatory Organizations; NYSE 

Amex LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Deleting Rule 413—NYSE Amex 

Equities To Correspond With Rule 

Changes Filed by the Financial 

Industry Regulatory Authority, Inc. 

May 20, 2010. 

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 May 12, 

2010, NYSE Amex LLC (the ‘‘Exchange’’ 

or ‘‘NYSE Amex’’) 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 delete Rule 

413—NYSE Amex Equities to 

correspond with rule changes filed by 

the Financial Industry Regulatory 

Authority, Inc. (‘‘FINRA’’) and approved 

by the Commission.4 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, 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 purpose of the proposed rule 

changes is to delete Rule 413—NYSE 

Amex Equities (Uniform Forms) to 

correspond with rule changes filed by 

FINRA and approved by the 

Commission. 

Background 

On July 30, 2007, FINRA’s 

predecessor, the National Association of 

Securities Dealers, Inc. (‘‘NASD’’), and 

NYSE Regulation, Inc. (‘‘NYSER’’) 

consolidated their member firm 

regulation operations into a combined 

organization, FINRA. Pursuant to Rule 

17d–2 under the Act, the New York 

Stock Exchange LLC (‘‘NYSE’’), NYSER 

and FINRA entered into an agreement 


wwoods2 on DSK1DXX6B1PROD with NOTICES
Federal Register / Vol. 75, No. 102 / Thursday, May 27, 2010 / Notices 29791 

5See Securities Exchange Act Release Nos. 56148 

(July 26, 2007), 72 FR 42146 (August 1, 2007) (order 

approving the Agreement); 56147 (July 26, 2007), 72 

FR 42166 (August 1, 2007) (SR–NASD–2007–054) 

(order approving the incorporation of certain NYSE 

Rules as ‘‘Common Rules’’); and 60409 (July 30, 

2009), 74 FR 39353 (August 6, 2009) (order 

approving the amended and restated Agreement, 

adding NYSE Amex LLC as a party). Paragraph 2(b) 

of the Agreement sets forth procedures regarding 

proposed changes by FINRA, NYSE or NYSE Amex 

to the substance of any of the Common Rules. 

6FINRA’s rulebook currently has three sets of 

rules: (1) NASD Rules, (2) FINRA Incorporated 

NYSE Rules, and (3) consolidated FINRA Rules. 

The FINRA Incorporated NYSE Rules apply only to 

those members of FINRA that are also members of 

the NYSE, while the consolidated FINRA Rules 

apply to all FINRA members. For more information 

about the FINRA rulebook consolidation process, 

see FINRA Information Notice, March 12, 2008. 

7See Securities Exchange Act Release No. 61542 

(February 18, 2010), 75 FR 8768 (February 25, 

2010). 

8See Securities Exchange Act Release No. 61542 

(February 18, 2010), 75 FR 8768 (February 25, 

2010). 

9The NYSE has submitted a companion rule 

filing amending its rules in accordance with 

FINRA’s rule changes. See SR–NYSE–2010–38. 

10See FINRA Regulatory Notices 08–71 

(November 28, 2008) (discussing proposed FINRA 

Rule 4530) and 09–02 (January 6, 2009) (discussing 

proposed FINRA Rule 4540). Per the rule 

harmonization process, the Exchange will likely 

adopt versions of these rules once they are filed 

with and approved by the Commission. 

11FINRA has proposed to delete portions of 

NYSE Rule 416 as part of its broader proposal to 

adopt new membership rules. See FINRA 

Regulatory Notice 10–01 (January 4, 2010) 

(discussing proposed FINRA Rules 1111–1190). Per 

the rule harmonization process, the Exchange will 

likely adopt versions of these rules once they are 

filed with and approved by the Commission. 

12 15 U.S.C. 78f(b). 

13 15 U.S.C. 78f(b)(5). 

14 15 U.S.C. 78s(b)(3)(A)(iii). 

15 17 CFR 240.19b–4(f)(6). 

(the ‘‘Agreement’’) to reduce regulatory 

duplication for their members by 

allocating to FINRA certain regulatory 

responsibilities for certain NYSE rules 

and rule interpretations (‘‘FINRA 

Incorporated NYSE Rules’’). The 

Exchange became a party to the 

Agreement effective December 15, 

2008.5

As part of its effort to reduce 

regulatory duplication and relieve firms 

that are members of FINRA, NYSE and 

NYSE Amex of conflicting or 

unnecessary regulatory burdens, FINRA 

is now engaged in the process of 

reviewing and amending the NASD and 

FINRA Incorporated NYSE Rules in 

order to create a consolidated FINRA 

rulebook.6

Proposed Conforming Amendments to 

NYSE Amex Equities Rules 

FINRA recently deleted FINRA 

Incorporated NYSE Rule 413 (Uniform 

Forms), which required that each 

member had to adopt such uniform 

forms as may be prescribed by the 

Exchange to facilitate the orderly flow of 

transactions within the financial 

community.7

In deleting FINRA Incorporated NYSE 

Rule 413, FINRA noted that several 

provisions in its By-Laws required its 

members to provide certain information 

in the manner and form prescribed by 

FINRA, including membership 

applications, registration of branch 

offices, registration of registered 

representatives and associated persons, 

and termination of registered 

employees. FINRA also noted its 

proposal to adopt a new Rule 4540 

governing information and data 

reporting and filing requirements.8

In order to harmonize the NYSE 

Amex Equities Rules with the approved 

consolidated FINRA Rules, the 

Exchange correspondingly proposes to 

delete Rule 413—NYSE Amex Equities.9

As with FINRA, the Exchange has a 

number of rules that require members 

and member organizations to provide 

certain information in the manner and 

form prescribed by the Exchange: For 

example, Rules 301(b)– and 311–313— 

NYSE Amex Equities deal with 

membership applications; Rule 342(c)— 

NYSE Amex Equities requires filing for 

branch offices (Form BR); Rule 345— 

NYSE Amex Equities, particularly 

345.12, covers applications for 

registered representatives (Form U–4); 

and Rules 312(a)– and 345—NYSE 

Amex Equities require reporting 

termination of registered persons (Form 

U–5). In addition, similar to proposed 

consolidated FINRA Rules 4530 and 

4540, Rule 351—NYSE Amex Equities 

(see 351.10) requires members and 

member organizations to provide the 

Exchange with certain regulatory and 

disciplinary information, and Rules 

341– and 416A—NYSE Amex Equities 

require members and member 

organizations to maintain current 

contact information with the 

Exchange.10

Notwithstanding these other rules, 

Rule 416(a)—NYSE Amex Equities 

broadly provides that members and 

member organizations must ‘‘submit to 

the Exchange at such times as may be 

designated in such form and within 

such time period as may be prescribed 

such information as the Exchange 

deems essential for the protection of 

investors and the public interest.’’ 11

Thus, deletion of Rule 413—NYSE 

Amex Equities will not limit the 

Exchange’s authority to require its 

members and member organizations to 

provide information in a prescribed 

manner as needed. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule changes are consistent 

with Section 6(b) of the Act,12 in 

general, and further the objectives of 

Section 6(b)(5) of the Act,13 in 

particular, in that they are designed to 

prevent fraudulent and manipulative 

acts and practices, 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 the 

proposed rule changes support the 

objectives of the Act by providing 

greater harmonization between NYSE 

Amex Equities Rules and FINRA Rules 

of similar purpose, resulting in less 

burdensome and more efficient 

regulatory compliance for joint 

members. To the extent the Exchange 

has proposed changes that differ from 

the FINRA version of the Rules, such 

changes are technical in nature and do 

not change the substance of the 

proposed NYSE Amex Equities 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 14 and Rule 

19b–4(f)(6) thereunder.15 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 and Rule 19b–4(f)(6)(iii) 

thereunder. 


wwoods2 on DSK1DXX6B1PROD with NOTICES
29792 Federal Register / Vol. 75, No. 102 / Thursday, May 27, 2010 / Notices 

16 17 CFR 240.19b–4(f)(6). 

17 17 CFR 240.19b–4(f)(6)(iii). 

18See id. Pursuant to Rule 19b–4(f)(6)(iii) under 

the Exchange Act, the Exchange is required to give 

the Commission written notice of its intent to file 

a 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 this requirement. 

19For 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. 78(f). 

20 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. 61862 

(April 16, 2010), 75 FR 20016. 4See Securities Exchange Act Release No. 50728 

(November 23, 2004), 69 FR 69982 (December 1, 

2004) (SR–Phlx–2004–74). 

A proposed rule change filed under 

Rule 19b–4(f)(6) 16 normally does not 

become operative prior to 30 days after 

the date of the filing. However, pursuant 

to Rule 19b–4(f)(6)(iii),17 the 

Commission may designate a shorter 

time if such action is consistent with the 

protection of investors and the public 

interest.18 The Commission believes 

that waiver of the operative delay is 

consistent with the protection of 

investors and the public interest 

because the proposed rule change is 

merely deleting a rule that is duplicative 

of other rules in its rulebook.19 The 

Exchange has represented that the 

deletion of the rule will not limit the 

Exchange’s authority to require its 

members and member organizations to 

provide needed information. 

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–2010–45 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–2010–45. 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 Web site viewing and 

printing 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 such 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 

publicly available. All submissions 

should refer to File Number SR– 

NYSEAMEX–2010–45 and should be 

submitted on or before June 17, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.20

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–12746 Filed 5–26–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62147; File No. SR–Phlx– 

2010–43] 

Self-Regulatory Organizations; 

NASDAQ OMX PHLX, Inc.; Order 

Approving a Proposed Rule Change 

Relating to Quote Spread Parameters 

and Batching of Violations 

May 21, 2010. 

On March 26, 2010, NASDAQ OMX 

PHLX, Inc. (‘‘Phlx’’ or ‘‘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 quote spread 

parameters and batching of violations. 

The proposed rule change was 

published for comment in the Federal 

Register on April 16, 2010.3 The 

Commission did not receive any 

comment letters on the proposed rule 

change. This order approves the 

proposed rule change. 

The Exchange proposed to update 

Advice F–6 to reflect language requiring 

options quoted electronically to be 

quoted with a $5 quote spread after the 

opening that was previously 

inadvertently omitted from Advice F–6. 

With respect to the proposed changes to 

Advice F–6, the Exchange represented 

that those who are quoting verbally (in 

open outcry) must, throughout the 

trading day, comply with the regular 

quote spread parameters that apply at 

the opening. The language of quote 

spreads not exceeding $5 after the 

opening for those quoting options 

electronically was inadvertently not 

incorporated into Advice F–6 in a 

previous rule filing.4 The Exchange 

proposed to correct this oversight by 

inserting this language regarding 

electronically quoted options into 

Advice F–6. 

The Exchange also proposed to amend 

the Exchange’s fine schedule applicable 

to Advice F–6, which is administered 

pursuant to the Exchange’s minor rule 

plan (‘‘MRP’’). As amended, the fine 

schedule would now consist of Warning 

Letters for the first three violations, and 

three fines thereafter ($250, $500 and 

$1,000). A seventh violation would 

result in referral to the Exchange’s 

Business Conduct Committee (‘‘BCC’’) 

for disciplinary action. In addition, the 

Exchange proposed that the fine 

schedule would be administered on a 

one-year running calendar basis, such 

that violations within one year of the 

last ‘‘occurrence’’ would count as the 

next ‘‘occurrence.’’ Currently, the fine 

schedule is administered on a two-year 

running calendar basis. 

Finally, the Exchange proposed 

amendments to Rules 960.2 and 970 to 

permit the aggregation or ‘‘batching’’ of 

quote spread parameter violations. Phlx 

notes that quoting on the Exchange has 

become entirely electronic; thus, when 

there is a quoting error, the error can 

affect every series that a firm is quoting, 

generating multiple instances of quote 

spread violations. The Exchange 

believes that, rather than taking each 


wwoods2 on DSK1DXX6B1PROD with NOTICES