31494 Federal Register / Vol. 75, No. 106 / Thursday, June 3, 2010 / Notices 

26 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. 58673 

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

2008) (SR–NYSE–2008–60 and SR–Amex–2008– 

62). 

4See Securities Exchange Act Release No. 58705 

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

(SR–Amex–2008–63) (approving the adoption of the 

‘‘NYSE Amex Equities’’ rules). 

5See Securities Exchange Act Release No. 59472 

(February 27, 2009), 74 FR 9843 (March 6, 2009) 

(SR–NYSEALTR–2008–14) (approving the adoption 

of the ‘‘NYSE Amex Options’’ rules). 

6See Securities Exchange Act Release Nos. 58673 

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

2008) (adopting NYSE Amex Disciplinary Rules 

475–477); 58705 (October 1, 2008), 73 FR 58995 

(October 8, 2008) (adopting NYSE Amex 

Disciplinary Rule 476A). 

should be submitted on or before June 

24, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.26

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–13341 Filed 6–2–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62169; File No. SR– 

NYSEAmex–2010–43] 

Self-Regulatory Organizations; NYSE 

Amex LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Make Certain 

Reporting Requirements Punishable 

Under its MRVP 

May 25, 2010. 

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 May 7, 

2010, 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 Exchange. 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 Amex Disciplinary Rule 476A 

(Imposition of Fines for Minor 

Violation(s) of Rules) to add a new Part 

1D: List of Reports Required to be Filed 

with the Exchange by ATP Holders and 

Filing Deadlines. The Exchange also 

proposes to add violations of NYSE 

Amex Rule 340.01 to Part 1C of 

Disciplinary Rule 476A, and to make 

other technical changes to the Rule. The 

text of the proposed rule change is 

available on NYSE Amex’s Web site at 

http://www.nyse.com, on the 

Commission’s Web site at http:// 

www.sec.gov, at NYSE Amex, 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 

The Exchange proposes to amend 

NYSE Amex Disciplinary Rule 476A 

(Imposition of Fines for Minor 

Violation(s) of Rules) to add a new Part 

1D: List of Reports Required to be filed 

with the Exchange by ATP Holders and 

Filing Deadlines. The Exchange also 

proposes to add violations of NYSE 

Amex Rule 340.01 to Part 1C of 

Disciplinary Rule 476A, and to make 

other technical changes to the Rule. 

Background 

As described more fully in a related 

rule filing, effective October 1, 2008, 

NYSE Euronext acquired The Amex 

Membership Corporation (‘‘AMC’’) 

pursuant to an Agreement and Plan of 

Merger, dated January 17, 2008 (the 

‘‘Merger’’). Pursuant to the Merger the 

Exchange’s predecessor, the American 

Stock Exchange LLC, a subsidiary of 

AMC, became a subsidiary of NYSE 

Euronext.3

In connection with the Merger, on 

December 1, 2008, the Exchange 

relocated all equities trading conducted 

on the Exchange’s legacy trading 

systems and facilities located at 86 

Trinity Place, New York, New York, to 

new trading systems and facilities 

located at 11 Wall Street, New York, 

New York (known as ‘‘NYSE Amex 

Equities’’).4 Similarly, on March 2, 2009, 

the Exchange relocated all options 

trading conducted on the Exchange’s 

legacy trading systems and facilities to 

new trading systems and facilities 

located at 11 Wall Street (known as 

‘‘NYSE Amex Options’’).5

As part of this process, the Exchange 

adopted NYSE Rules 475–477, 

including Rule 476A, subject to such 

changes as necessary to apply the Rules 

to the Exchange, as NYSE Amex 

Disciplinary Rules 475–477 to govern 

transactions and the conduct of its 

members and member organizations on 

both NYSE Amex Equities and NYSE 

Amex Options.6

Current NYSE Amex Disciplinary Rule 

476A 

NYSE Amex Disciplinary Rule 476A, 

the Exchange’s Minor Rule Violation 

Plan (‘‘MRVP’’), governs transactions 

and conduct on both NYSE Amex 

Equities and NYSE Amex Options. 

Under NYSE Amex Disciplinary Rule 

476A, the Exchange may impose a 

summary fine on any member, member 

organization, allied member, approved 

person or registered or non-registered 

employee of a member or member 

organization for a minor violation of 

specified Exchange rules: 

Supplementary Part 1A to the Rule 

contains a list of NYSE Amex Equities 

Rules subject to summary fine; Part 1B 

contains a list of legacy Exchange rules; 

and Part 1C contains a list of NYSE 

Amex Options Rules. The fines 

permitted under the MRVP provide an 

appropriate sanction when, given the 

facts and circumstances of a particular 

rule violation, a response stronger than 

a simple admonition letter is needed but 

the initiation of a formal disciplinary 

proceeding under Disciplinary Rule 476 

is unwarranted. 

Violations of the listed rules are 

subject to the fine schedules in NYSE 

Amex Disciplinary Rule 476A. For 

violations of the rules listed in Parts 1A 

and 1B, individuals may be charged 

$500.00 for a first offense, $1,000.00 for 

a second offense and $2,500.00 for 

subsequent offenses; member firms may 

be charged $1,000.00 for a first offense, 

$2,500.00 for a second offense and 

$5,000.00 for subsequent offenses. 

Violations of the rules listed in Part 1C 

are subject to varying fines as specified, 

depending on the rule violated. 


sroberts on DSKD5P82C1PROD with NOTICES
Federal Register / Vol. 75, No. 106 / Thursday, June 3, 2010 / Notices 31495 

7See NYSE Amex Rule 590, Part 3. Although the 

current NYSE Amex Disciplinary Rules govern 

transactions and/or conduct by Exchange members 

and member organizations on the trading systems 

and facilities located at 11 Wall Street, legacy NYSE 

Amex Rule 590 is still listed on the Exchange’s Web 

site for the purposes of regulating transactions and/ 

or conduct that occurred on or through the 

Exchange’s legacy systems or facilities located at 86 

Trinity Place prior to March 2, 2009. See Securities 

Exchange Act Release No. 58705 (October 1, 2008), 

73 FR 58995 (October 8, 2008). 

8See FINRA By-Laws, Schedule A, Section 4(g). 9 15 U.S.C. 78f(b)(5). 

10 15 U.S.C. 78f(b)(1) and (6). 

11 15 U.S.C. 78f(b)(7) and (d)(1). 

Proposed Changes to NYSE Amex 

Disciplinary Rule 476A 

a. Adoption of Part 1D: List of Reports 

Required To Be Filed With the 

Exchange by ATP Holders and Filing 

Deadlines 

The Exchange proposes to add Part 1D 

to NYSE Amex Disciplinary Rule 476A 

to provide a list of financial reports 

required to be filed with the Exchange 

by NYSE Amex Options members and 

member organizations (also known as 

‘‘ATP Holders’’) and corresponding 

filing deadlines, subject to a different 

fine schedule than for Parts 1A, 1B and 

1C. The list of reports includes equity 

and net capital computations, FOCUS 

reports, ITSFEA forms and annual 

audited statements, all of which are 

already required to be filed under 

existing Exchange rules and Federal 

securities laws and regulations. Under 

proposed Part 1D, ATP Holders that fail 

to file any of the listed reports on the 

date they are due will be subject to a 

summary fine of $100 per day for each 

day such a report is not timely filed, for 

a period not to exceed 10 business days. 

Violations of the provisions of Part 1D 

will be subject to the procedures of the 

Exchange’s MRVP under Disciplinary 

Rule 476A. 

Proposed Part 1D is based, inter alia, 

on Part 3 of legacy NYSE Amex Rule 

590, which similarly provided that 

members and member organizations that 

failed to timely file certain listed 

financial reports with the American 

Stock Exchange were subject to a fine of 

$50 per day.7 Part 1D also draws on the 

Financial Industry Regulatory 

Authority, Inc.’s (‘‘FINRA’’) By-Laws, 

which impose a fee of $100 per day on 

any member that fails to file similar 

reports in a timely manner, not to 

exceed 10 business days.8

The Exchange further proposes to 

implement proposed Part 1D on May 24, 

2010, in order to give ATP Holders 

sufficient notice of the new fine 

schedule for late reporting. Because it is 

still listed on the Exchange’s Web site, 

the Exchange also proposes to add 

language to legacy NYSE Amex Rule 

590 that clarifies that its provisions 

apply only to transactions and/or 

conduct that occurred on or through the 

Exchange’s legacy systems or facilities 

located at 86 Trinity Place. 

b. Addition of NYSE Amex Rule 340.01 

to Part 1C 

The Exchange also proposes to add 

NYSE Amex Rule 340.01 (Disapproval 

of Employees) to Part 1C of Disciplinary 

Rule 476A and the list of NYSE Amex 

Options Rules subject to the Exchange’s 

MRVP. 

NYSE Amex Rule 340.01 provides 

that any and all employees of an ATP 

Holder that are to be admitted to the 

Trading Floor must be registered and 

approved by the Exchange through the 

submission of a Form U–4. In addition, 

any such employees must submit 

fingerprints to the Exchange or its 

designee for identification and 

appropriate processing. Rule 340.01 

further provides that ATP Holders must 

file a Form U–5 within 10 days of the 

date of termination of an employee that 

has been admitted by the Exchange to 

the Trading Floor. 

The Exchange believes that the 

current regulatory approach for dealing 

with these reporting requirements is too 

inflexible. The Exchange recognizes that 

ATP Holders may, for many reasons, fail 

to timely submit a Form U–4 or U–5 

pursuant to NYSE Amex Rule 340.01. In 

some such circumstances, formal 

disciplinary proceedings in accordance 

with Disciplinary Rule 476 are 

warranted. However, in other instances 

such a proceeding may be unwarranted, 

and the Exchange believes that the 

addition of Rule 340.01 to the list of rule 

violations and fines under Part 1C of 

Disciplinary Rule 476A will provide a 

more flexible and appropriate 

mechanism for enforcing the reporting 

requirements of Rule 340.01, while 

preserving the Exchange’s discretion to 

seek formal discipline when 

appropriate. 

The Exchange further proposes 

related technical changes to Parts 1B 

and 1C in order to accommodate these 

proposed changes. 

c. Technical Changes to Part 1A 

The Exchange proposes to make 

technical changes to Parts 1A, 1B and 

1C of NYSE Amex Disciplinary Rule 

476A to clarify the effective date and the 

trading and conduct covered by each of 

these provisions. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule changes are consistent 

with, and further the objectives of, 

Section 6(b)(5) of the Act,9 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 

proposed rule changes also further the 

objectives of Sections 6(b)(1) and 6(b)(6) 

of the Act,10 in that they enforce 

compliance with, and provide for 

appropriate discipline for, violations of 

the Act, the rules and regulations 

thereunder, and Exchange rules and 

regulations. 

In addition, because the Exchange’s 

MRVP provides procedural rights to a 

member or member organization fined 

thereunder to contest the fine and 

permits disciplinary proceedings on the 

matter, the Exchange believes that its 

MRVP provides a fair procedure for 

disciplining members, member 

organizations, and persons associated 

therewith consistent with Sections 

6(b)(7) and 6(d)(1) of the Act.11

The Exchange believes that the 

proposed rule changes will provide the 

Exchange with greater regulatory 

flexibility to enforce the reporting 

requirements set forth in NYSE Amex 

Rule 340.01 and Part 1D of NYSE Amex 

Disciplinary Rule 476A, consistent with 

the purposes of the Act. 

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: (i) Does not significantly affect 

the protection of investors or the public 

interest; (ii) does not impose any 

significant burden on competition; and 

(iii) by its terms, does not 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, it has 


sroberts on DSKD5P82C1PROD with NOTICES
31496 Federal Register / Vol. 75, No. 106 / Thursday, June 3, 2010 / Notices 

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 self-regulatory organization 

to submit to 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 the proposed rule change, or such 

shorter time as designated by the Commission. The 

Exchange has satisfied this requirement. 

14See e.g., Securities Exchange Act Release No. 

44512 (July 3, 2001), 66 FR 36812 (July 13, 2001) 

(SR–NASD–00–39). 

15For purposes only of waiving the operative 

delay for this proposal, the Commission has 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

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

16 17 CFR 200.30–3(a)(12) and 200.30–3(a)(44). 

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

2 17 CFR 240.19b–4. 

3The Exchange’s corporate affiliate, NYSE Amex 

LLC (‘‘NYSE Amex’’), submitted a companion rule 

filing proposing corresponding amendments to 

NYSE Amex Disciplinary Rule 476A. See SR– 

NYSEAmex–2010–44. 

4See Securities Exchange Act Release No. 58673 

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

become effective pursuant to Section 

19(b)(3)(A) of the Act 12 and Rule 19b– 

4(f)(6) thereunder.13

The Exchange has asked the 

Commission to waive the 30-day 

operative delay so that the proposal may 

become operative immediately 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 proposal raises no novel 

issues and is consistent with prior 

approved rules on which it is based.14

Therefore, the Commission designates 

the proposal operative upon filing.15

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–2010–43 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–2010–43. 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 

available publicly. All submissions 

should refer to File Number SR– 

NYSEAmex–2010–43 and should be 

submitted on or before June 24, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.16

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–13340 Filed 6–2–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62167; File No. SR–NYSE– 

2010–37] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Add Certain 

Violations of Its Communications and 

Give-Up Policies to Its MRVP 

May 25, 2010. 

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 May 12, 

2010, the 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, II, and III below, which Items 

have been prepared by the Exchange. 

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 476A to add Rule 36 

(Communications Between Exchange 

and Members’ Offices) to its List of 

Exchange Rule Violations and Fines 

Applicable Thereto (‘‘Minor Rule 

Violation Plan’’).3 The text of the 

proposed rule change is available on 

NYSE’s Web site at http:// 

www.nyse.com, on the Commission’s 

Web site at http://www.sec.gov, at 

NYSE, 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 

The Exchange proposes to amend 

NYSE Rule 476A to add Rule 36 

(Communications Between Exchange 

and Members’ Offices) to its Minor Rule 

Violation Plan. 

Background 

Effective October 1, 2008, the 

Exchange’s parent company, NYSE 

Euronext, acquired the parent company 

of NYSE Amex pursuant to an 

Agreement and Plan of Merger (the 

‘‘Merger’’).4 In connection with the 


sroberts on DSKD5P82C1PROD with NOTICES