31482 Federal Register / Vol. 75, No. 106 / Thursday, June 3, 2010 / Notices 

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

2 17 CFR 240.19b–4. 

3The Exchange’s corporate affiliate, New York 

Stock Exchange LLC (‘‘NYSE’’), submitted a 

companion rule filing proposing corresponding 

amendments to NYSE Rule 476A. See SR–NYSE– 

2010–37. 

4See Securities Exchange Act Release No. 58673 

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

2008) (SR–NYSE–2008–60 and SR–Amex–2008–62) 

(order approving the Merger). 

5See Securities Exchange Act Release No. 58705 

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

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

Relocation). 

6See Securities Exchange Act Release No. 59472 

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

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

Options Relocation). 

The Commission is of the opinion that 

the public interest and the protection of 

investors require a suspension of trading 

in the securities of the above-listed 

company. Therefore, it is ordered, 

pursuant to Section 12(k) of the 

Securities Exchange Act of 1934, that 

trading in the securities of the abovelisted company is suspended for the 

period from 9:30 a.m. EDT on June 1, 

2010, through 11:59 p.m. EDT on June 

14, 2010. 

By the Commission. 

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–13440 Filed 6–1–10; 4:15 pm] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62168; File No. SR– 

NYSEAmex–2010–44] 

Self-Regulatory Organizations; NYSE 

Amex 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, 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, 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 Amex Disciplinary Rule 476A to 

add Rule 36—NYSE Amex Equities 

(Communications Between Exchange 

and Members’ Offices) to Part 1A: 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 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 to 

add Rule 36—NYSE Amex Equities 

(Communications Between Exchange 

and Members’ Offices) to Part 1A of its 

Minor Rule Violation Plan. 

Background 

Effective October 1, 2008, NYSE 

Euronext, acquired the parent company 

of the Exchange’s predecessor, the 

American Stock Exchange LLC, 

pursuant to an Agreement and Plan of 

Merger (the ‘‘Merger’’).4 In connection 

with the Merger, on December 1, 2008, 

the Exchange relocated all equities 

trading conducted on its legacy trading 

systems and facilities located at 86 

Trinity Place, New York, New York to 

systems and facilities located at 11 Wall 

Street, New York, New York (the 

‘‘Equities Relocation’’).5 Similarly, on 

March 2, 2009, the Exchange relocated 

all its options trading to trading systems 

and facilities located at 11 Wall Street, 

New York, New York (the ‘‘Options 

Relocation’’).6 As a result of the Equities 

and Options Relocations, the NYSE and 

NYSE Amex Equities Trading Floors are 

located within the 11 Wall Street 

building in a room adjacent to the NYSE 

Amex Options Trading Floor. 

Current Rule 36—NYSE Amex Equities 

Rule 36—NYSE Amex Equities 

governs two primary areas: (i) 

communications between the Floor and 

other locations, and (ii) the use and/or 

possession of portable or wireless 

communication or trading devices. 

First, Rule 36—NYSE Amex Equities 

broadly prohibits members and member 

organizations from establishing or 

maintaining any telephonic or 

electronic communication between the 

Floor and any other location without 

Exchange approval. In addition, there 

are several supplementary provisions 

that provide more detailed prescriptions 

for members and member firms. 

Rule 36.10—NYSE Amex Equities 

advises members and member 

organizations that the phone company 

will not install or disconnect any line 

between the Floor and any other 

location without Exchange approval and 

that such requests should be sent to the 

Exchange’s Market Operations Division. 

Rule 36.60—NYSE Amex Equities 

further prohibits members and member 

organizations from listing a phone line 

in the name of a non-member. 

Rule 36.20—NYSE Amex Equities 

provides that Floor brokers may 

maintain a phone line at their booth 

locations on the Floor, or use an 

Exchange issued and authorized 

portable phone, to communicate with 

non-members off the Floor. Only 

Exchange issued and authorized 

portable phones may be used on the 

Floor in accordance with the 

prescriptions of Rule 36.21—NYSE 

Amex Equities, and the use of personal 

phones is expressly prohibited. Rule 

36.21—NYSE Amex Equities provides 

that Floor brokers using an Exchange 

issued and authorized portable phone 

may communicate directly from the 

point of sale on the Floor with someone 

off-Floor. In addition to processing 

orders, Floor brokers may also provide 

‘‘market look’’ observations over the 

phone. When taking orders over the 

phone, Floor brokers must comply with 

Rule 123(e)—NYSE Amex Equities, 

which requires entry of the order into an 

electronic system, as well as any and all 

other record retention requirements 

under Rule 440—NYSE Amex Equities 

and SEC Rules 17a–3 and 17a–4. 

Exchange issued phones do not permit 

call-forwarding or call-waiting and may 

not block a caller’s identification. Floor 

brokers may not use an Exchange 

authorized and provided portable phone 

used to trade equities while on the 

Exchange’s Options Trading Floor. 


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Federal Register / Vol. 75, No. 106 / Thursday, June 3, 2010 / Notices 31483 

7Rule 6A—NYSE Amex Equities defines ‘‘Trading 

Floor’’ as the restricted-access physical areas 

designated by the Exchange for the trading of 

equities securities, commonly known as the ‘‘Main 

Room’’ and the ‘‘Garage.’’ The Exchange’s Equities 

Trading Floor does not include the areas where its 

listed options are traded, commonly known as the 

‘‘Blue Room’’ and the ‘‘Extended Blue Room,’’ also 

known as the ‘‘NYSE Amex Options Trading Floor.’’ 

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

9 15 U.S.C. 78f(b)(6). 

Notwithstanding the prescriptions of 

Rule 36.20—NYSE Amex Equities, Rule 

36.23—NYSE Amex Equities provides 

that members and employees of member 

organizations may use personal portable 

or wireless communications devices, 

including phones, outside the 

Exchange’s Equities Trading Floor.7 In 

addition, members and employees of 

member organizations may not use 

personal portable or wireless 

communication devices on the 

Exchange’s Options Trading Floor 

unless they are also registered to trade 

options on the Exchange. 

Rule 36.30—NYSE Amex Equities 

provides that, subject to Exchange 

approval, a DMM Unit may maintain a 

phone line at its post to communicate 

with its off-Floor business operations 

and/or its clearing firm. For trading 

purposes, a DMM Unit’s phone line may 

only be used to enter hedging orders 

through the firm’s off-Floor office or 

clearing firm, or through a member of an 

options or futures exchange as 

permitted under Rules 98– and 105– 

NYSE Amex Equities. 

Under Rule 36.30—NYSE Amex 

Equities, a DMM Unit may also 

maintain a wired or wireless device that 

has been registered with the Exchange, 

such as a computer terminal or laptop, 

to communicate with the DMM Unit’s 

off-Floor algorithms. A DMM Unit using 

such a wired or wireless device must 

certify that the device operates in 

accordance with all SEC and Exchange 

rules, policies, and procedures. In 

addition, the DMM Unit must create and 

maintain records of all messages 

generated by the wired or wireless 

device in compliance with Rule 440— 

NYSE Amex Equities and SEC Rules 

17a–3 and 17a–4. 

To address concerns regarding 

improper information sharing between 

the Exchange’s Equities Trading Floor 

and the adjacent Options Trading Floor, 

Rule 36.70—NYSE Amex Equities 

prohibits members and member firm 

employees from (i) using or possessing 

any wireless trading device that may be 

used to view or enter orders into the 

Exchange’s Equities trading systems 

while on the Options Trading Floor, and 

(ii) using or possessing any wireless 

trading device that may be used to view 

or enter orders into the Exchange’s 

Options trading systems while on the 

Equities Trading Floor. These 

prohibitions apply to any and all 

wireless trading devices, including 

devices issued by the Exchange or 

NYSE, as well as devices that are 

proprietary to a member, member 

organization or other entity. 

Finally, Rules 36.40– and 36.50– 

NYSE Amex Equities prescribe certain 

timing and handling requirements for 

‘‘give-up’’ or ‘‘step out’’ transactions, 

whereby a member or member 

organization executes a customer trade 

on behalf of another member. While not 

directly related to member or member 

organization communications or the use 

and/or possession of portable or 

wireless communication or trading 

devices, these requirements are 

important for ensuring that members 

and member organizations properly 

document these types of transactions. 

Proposed Rule Change 

As noted above, the Exchange 

proposes to add Rule 36—NYSE Amex 

Equities to Part 1A of its Minor Rule 

Violation Plan under NYSE Amex 

Disciplinary Rule 476A. 

Under Part 1A of the Exchange’s 

Minor Rule Violation Plan, the 

Exchange may impose a fine, not to 

exceed $5,000, on any member, member 

organization, principal executive, 

approved person, or registered or nonregistered employee of a member or 

member organization for a minor 

violation of specified Exchange rules. 

Such fines provide a meaningful 

sanction for rule violations where the 

facts and circumstances of the violation 

do not warrant the initiation of a formal 

disciplinary procedure under NYSE 

Amex Disciplinary Rule 476, but do 

require a regulatory response that is 

more significant than an admonition 

letter. 

Currently, because Rule 36—NYSE 

Amex Equities is not part of the 

Exchange’s Minor Rule Violation Plan, 

if a member or member firm employee 

were to violate the prohibitions set forth 

in Rule 36—NYSE Amex Equities the 

Exchange would be limited to issuing 

either an admonition letter or initiating 

formal proceedings under NYSE Amex 

Disciplinary Rule 476. This is the case 

whether or not the member or member 

firm employee violated the rule once or 

many times, and regardless of whether 

he or she made an inadvertent error or 

an intentional one. 

The Exchange believes that the 

current regulatory approach for dealing 

with Rule 36—NYSE Amex Equities 

violations is too inflexible. The 

Exchange recognizes that members or 

member firm employees may violate the 

prescriptions of Rule 36—NYSE Amex 

Equities intentionally, as well as 

accidentally or inadvertently. When a 

violation is intentional, formal 

disciplinary measures in accordance 

with NYSE Amex Disciplinary Rule 476 

may be warranted. However, while an 

admonition letter might be appropriate 

for an isolated accidental or inadvertent 

violation, in other cases an admonition 

letter would be inadequate even though 

a formal proceeding may not be 

warranted. The Exchange believes that 

the addition of Rule 36—NYSE Amex 

Equities to Part 1A of its Minor Rule 

Violation Plan under NYSE Amex 

Disciplinary Rule 476A will provide a 

more flexible and appropriate 

enforcement tool that preserves the 

Exchange’s discretion to seek formal 

discipline under appropriate 

circumstances. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with, 

and furthers the objectives of, Section 

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

change also furthers the objectives of 

Section 6(b)(6) of the Act,9 in that it 

provides for appropriate discipline for 

violations of Exchange rules and 

regulations. 

The Exchange believes that the 

proposed rule change will provide the 

Exchange with greater regulatory 

flexibility to enforce the prescriptions of 

Rule 36—NYSE Amex Equities in a 

more informal manner while also 

preserving the Exchange’s discretion to 

seek formal discipline for more serious 

transgressions as warranted. 

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. 


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31484 Federal Register / Vol. 75, No. 106 / Thursday, June 3, 2010 / Notices 

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

11 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. 

12 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. 

3See Securities Exchange Act Release No. 61937 

(April 16, 2010), 75 FR 21378. 

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 

become effective pursuant to Section 

19(b)(3)(A) of the Act 10 and Rule 19b– 

4(f)(6) thereunder.11

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–2010–44 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–2010–44. 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–2010–44 and should be 

submitted on or before June 24, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–13339 Filed 6–2–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62188; File No. SR– 

NYSEArca–2010–23] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Order Approving Proposed 

Rule Change To Modify the Fees for 

NYSE Arca Trades, To Establish the 

NYSE Arca BBO Service and Related 

Fees, and To Provide an Alternative 

Unit-of-Count Methodology for Those 

Services 

May 27, 2010. 

I. Introduction 

On April 1, 2010, the NYSE Arca, Inc. 

(‘‘NYSE Arca’’ or the ‘‘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 to modify fees for NYSE Arca 

Trades and to establish the NYSE Arca 

BBO service and related fees. The 

proposed rule change was published for 

comment in the Federal Register on 

April 23, 2010.3 The Commission 

received no comment letters on the 

proposal. This order approves the 

proposed rule change. 

II. Description of the Proposal 

NYSE Arca proposes: (i) To establish 

NYSE Arca BBO, a service that will 

make available the Exchange’s best bids 

and offers; (ii) to establish fees for NYSE 

Arca BBO; (iii) to modify the 

professional subscriber fees for NYSE 

Arca Trades; and (iv) to provide an 

alternative unit-of-count methodology to 

the traditional device fee for NYSE Arca 

Trades and NYSE Arca BBO. 

a. Service 

NYSE Arca BBO is a NYSE Arca-Only 

market data service that allows a vendor 

to redistribute on a real-time basis the 

same best-bid-and-offer information that 

NYSE Arca reports under the CQ Plan 

and the Nasdaq/UTP Plan for inclusion 

in the NYSE Arca BBO Information. 

NYSE Arca BBO Information would 

include the best bids and offers for all 

securities that are traded on the 

Exchange and for which NYSE Arca 

reports quotes under the CQ Plan or the 

Nasdaq/UTP Plan. NYSE Arca will 

make the NYSE Arca BBO available over 

a single datafeed, regardless of the 

markets on which the securities are 

listed. 

NYSE Arca BBO would allow 

vendors, broker-dealers, private network 

providers and other entities (‘‘NYSE 

Arca-Only Vendors’’) to make available 

NYSE Arca BBO Information on a realtime basis. NYSE Arca-Only Vendors 

may distribute the NYSE Arca BBO to 

both professional and nonprofessional 

subscribers. The Exchange would make 

NYSE Arca BBO Information available 

through NYSE Arca BBO Service no 

earlier than it makes that information 

available to the processor under the CQ 

Plan or the Nasdaq/UTP Plan, as 

applicable. 

b. Fees 

i. Access Fee 

NYSE Arca currently charges $750 for 

access to the NYSE Arca Trades. The 

Exchange proposes to charge $750 per 

month for the receipt and use of NYSE 

Arca BBO and NYSE Acra Trades. One 

$750 monthly access fee entitles an 

NYSE Arca-Only Vendor to receive 

NYSE Arca BBO and NYSE Arca Trades 

(collectively, ‘‘NYSE Arca Market Data’’). 


sroberts on DSKD5P82C1PROD with NOTICES