Federal Register / Vol. 75, No. 106 / Thursday, June 3, 2010 / Notices 31491 

21See NYSE Arca Order at 74783. 

22See Richard Posner, Economic Analysis of Law 

§ 9.1 (5th ed. 1998) (discussing the theory of 

monopolies and pricing). See also U.S. Dep’t of 

Justice & Fed’l Trade Comm’n, Horizontal Merger 

Guidelines § 1.11 (1992), as revised (1997) 

(explaining the importance of alternatives to the 

presence of competition and the definition of 

markets and market power). Courts frequently refer 

to the Department of Justice and Federal Trade 

Commission merger guidelines to define product 

markets and evaluate market power. See, e.g., FTC 

v. Whole Foods Market, Inc., 502 F. Supp. 2d 1 

(D.D.C. 2007); FTC v. Arch Coal, Inc., 329 F. Supp. 

2d 109 (D.D.C. 2004). In considering antitrust 

issues, courts have recognized the value of 

competition in producing lower prices. See, e.g., 

Leegin Creative Leather Products v. PSKS, Inc., 127 

S. Ct. 2705 (2007); Atlanta Richfield Co. v. United 

States Petroleum Co., 495 U.S. 328 (1990); 

Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 

475 U.S. 574 (1986); State Oil Co. v. Khan, 522 U.S. 

3 (1997); Northern Pacific Railway Co. v. U.S., 356 

U.S. 1 (1958). 

23See NYSE Arca Order at 74783. 

24 Id. 

25 Id. 

26 15 U.S.C. 78s(b)(2). 

27 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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

4 17 CFR 240.19b–4(f)(6)(iii). 

TABLE 1—TRADING CENTERS AND ESTIMATED % OF SHAREVOLUME IN

NMS STOCKS SEPTEMBER 2009— 

Continued 

Trading Venue 

Share Volume in NMS 

Stocks 

Other Registered Exchanges 3.7 

ECNs: 

5 ECNS ................................. 10.8 

Dark Pools: 

32 Dark Pools (Estimated) .... 7.9 

Broker-Dealer Internatization: 

200+ Broker-Dealers (Estimated) ............................... 17.5 

The market share percentages in Table 

1 strongly indicate that NYSE must 

compete vigorously for order flow to 

maintain its share of trading volume. 

This compelling need to attract order 

flow imposes significant pressure on 

NYSE to act reasonably in setting its 

fees for NYSE market data, particularly 

given that the market participants that 

must pay such fees often will be the 

same market participants from whom 

NYSE must attract order flow. These 

market participants particularly include 

the large broker-dealer firms that control 

the handling of a large volume of 

customer and proprietary order flow. 

Given the portability of order flow from 

one trading venue to another, any 

exchange that seeks to charge 

unreasonably high data fees would risk 

alienating many of the same customers 

on whose orders it depends for 

competitive survival.21

In addition to the need to attract order 

flow, the availability of alternatives to 

NYSE’s BBO Information data 

significantly affect the terms on which 

NYSE can distribute this market data.22

In setting the fees for its NYSE BBO 

Service, NYSE must consider the extent 

to which market participants would 

choose one or more alternatives instead 

of purchasing the exchange’s data.23 Of 

course, the most basic source of 

information generally available at an 

exchange is the complete record of an 

exchange’s transactions that is provided 

in the core data feeds.24 In this respect, 

the core data feeds that include an 

exchange’s own transaction information 

are a significant alternative to the 

exchange’s market data product.25 The 

various self-regulatory organizations, 

the several Trade Reporting Facilities of 

FINRA, and ECNs that produce 

proprietary data are all sources of 

competition. 

In sum, there are a variety of 

alternative sources of information that 

impose significant competitive 

pressures on the NYSE in setting the 

terms for distributing its NYSE BBO 

Information. The Commission believes 

that the availability of those 

alternatives, as well as the NYSE’s 

compelling need to attract order flow, 

imposed significant competitive 

pressure on the NYSE to act equitably, 

fairly, and reasonably in setting the 

terms of its proposal. 

Because the NYSE was subject to 

significant competitive forces in setting 

the terms of the proposal, the 

Commission will approve the proposal 

in the absence of a substantial 

countervailing basis to find that its 

terms nevertheless fail to meet an 

applicable requirement of the Act or the 

rules thereunder. An analysis of the 

proposal does not provide such a basis. 

V. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,26 that the 

proposed rule change (SR–NYSE–2010– 

30) be, and hereby is, approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.27

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–13336 Filed 6–2–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62177; File No. SR–BATS– 

2010–013] 

Self-Regulatory Organizations; BATS 

Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend BATS Rule 

19.5, entitled ‘‘Minimum Participation 

Requirement for Opening Trading of 

Option Series’’ 

May 26, 2010. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 

(‘‘Act’’),1 and Rule 19b–4 thereunder,2

notice is hereby given that on May 13, 

2010, BATS Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘BATS’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I and II 

below, which Items have been prepared 

by the Exchange. The Exchange has 

designated this proposal as a ‘‘noncontroversial’’ proposed rule change 

pursuant to Section 19(b)(3)(A) of the 

Act 3 and Rule 19b–4(f)(6)(iii) 

thereunder,4 which renders it effective 

upon filing with the Commission. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange is proposing to amend 

BATS Rule 19.5, entitled ‘‘Minimum 

Participation Requirement for Opening 

Trading of Option Series.’’ The text of 

the proposed rule change is available at 

the Exchange’s Web site at http:// 

www.batstrading.com, at the principal 

office of the Exchange, 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 

Exchange 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 these 

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 aspects of such 

statements. 


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31492 Federal Register / Vol. 75, No. 106 / Thursday, June 3, 2010 / Notices 

5The term ‘‘Options Member’’ means a firm, or 

organization that is registered with the Exchange 

pursuant to Chapter XVII of the Exchange’s rules for 

purposes of participating in options trading on 

BATS Options as an ‘‘Options Order Entry Firm’’ or 

‘‘Options Market Maker.’’ 6See Exchange Rule 22.2. 

7See Exchange Rule 22.5(a). 

8See Exchange Rule 22.2(a). 

9See Exchange Rule 22.2. 

10See Exchange Rule 22.2(c). 

11See Exchange Rule 22.4(b). 

12See Exchange Rule 22.3(a). 

13See Securities Exchange Act Release No. 60405 

(July 30, 2009), 74 FR 39362 (August 6, 2009) (File 

No. 4–546) (approval order for the Protection and 

Locked/Crossed Plan); see also Securities Exchange 

Act Release No 61419 (January 26, 2010), 75 FR 

5157 (February 1, 2010) (File No. SR–BATS–2009– 

031) (approval order of BATS Options rules, 

including rules governing participation in 

Protection and Locked/Crossed Plan). 

14See Securities Exchange Act Release No. 61735 

(March 18, 2010), 75 FR 14227 (March 24, 2010) 

(File No. SR–NASDAQ–2010–007). 

15 Id. (citing Securities Exchange Act Release No. 

57478 (March 12, 2008), 73 FR 14521, 14527 (March 

18, 2008) (File No. SR–NASDAQ–2007–004) (‘‘NOM 

Approval Order’’)). 

16As the Commission noted in its approval order 

for the NOM filing, in its release adopting 

Regulation ATS, the Commission rejected the 

suggestion that a guaranteed source of liquidity was 

a necessary component of an exchange. See 

Securities Exchange Act Release No. 40760 

(December 8, 1998), 63 FR 70844 (December 22, 

1998) (‘‘Regulation ATS Release). 

17See NOM Approval Order, supra note 15, at 

14527. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange is proposing the 

elimination of a requirement that at 

least one Options Market Maker be 

registered for trading a particular series 

before it may be opened for trading on 

BATS Options. 

An Options Market Maker is an 

Options Member 5 registered with the 

Exchange as a Market Maker.6 Options 

Market Makers on BATS Options have 

certain obligations such as maintaining 

two-sided markets and participating in 

transactions that are ‘‘reasonably 

calculated to contribute to the 

maintenance of a fair and orderly 

market.’’ 7 To register as an Options 

Market Maker, an Options Member must 

file a written application with the 

Exchange, which will consider an 

applicant’s market making ability and 

other factors it deems appropriate in 

determining whether to approve an 

applicant’s registration.8 All Options 

Market Makers are designated as 

specialists on BATS Options for all 

purposes under the Act or rules 

thereunder.9 The BATS Options Rules 

place no limit on the number of 

qualifying entities that may become 

Options Market Makers.10 The good 

standing of an Options Market Maker 

may be suspended, terminated, or 

withdrawn if the conditions for 

approval cease to be maintained or the 

Options Market Maker violates any of its 

agreements with the Exchange or any 

provisions of the BATS Options Rules.11

An Options Member that has qualified 

as an Options Market Maker may 

register to make markets in individual 

series of options.12

Currently Exchange Rule 19.5 

provides in relevant part that after a 

particular class of options has been 

approved for listing on BATS Options, 

the Exchange will allow trading in 

series of options in that class only if 

there is at least one Options Market 

Maker registered for trading that 

particular series. The Exchange is 

proposing to eliminate this requirement 

in order to expand the number of series 

available to investors for trading and for 

hedging risks associated with securities 

underlying those options, as well as to 

enhance markets in products which are 

likely to receive customer order flow. 

The Exchange believes that eliminating 

the listing requirement to have an 

Options Market Maker in every series 

would permit Options Market Makers, 

who currently may choose to serve as 

Options Market Makers solely to permit 

an options to trade on BATS Options, to 

focus their expertise on the products 

that are more consistent with their 

business objectives or more likely to 

receive customer order flow. 

Eliminating the Options Market 

Maker listing requirement would 

provide the Exchange the opportunity to 

trade options that may have occasional 

interest but that do not necessarily 

require a two-sided market at all times. 

The lack of a two-sided market would 

not cause customer orders to receive 

prices inferior to the best prices 

available across all exchanges. BATS 

Options is designed to systematically 

avoid trading through protected 

quotations on other options exchanges, 

and as such, orders accepted into BATS 

Options in options that do not have 

Options Market Makers will not trade at 

inferior prices even if there is not a twosided market on BATS Options. As a 

result, incoming orders are protected 

from receiving inferior execution prices 

simply by the fact that there is robust 

quote competition in the exchangelisted options business with eight 

competing options exchanges and a 

multitude of competing Market Makers 

and liquidity providers. Additionally, 

the Options Order Protection and 

Locked/Crossed Market Plan requires 

plan participants to ‘‘establish, maintain 

and enforce written policies and 

procedures that are reasonably designed 

to prevent Trade-Throughs in that 

participant’s market in Eligible Options 

Classes.’’ 13 With the implementation of 

this plan, a robust network of private 

routing has been constructed that 

ensures routable customer orders can 

access the best prevailing prices in the 

market. 

Moreover, the Commission recently 

approved the proposed rule change 

filing of the NASDAQ Options Market 

(‘‘NOM’’), which has rules that are 

substantially similar to the Exchange’s, 

in which NOM eliminated the 

requirements for having at least one 

Options Market Maker registered for 

trading in a particular series before it 

may be opened for trading on NOM.14

In its recent approval order for NOM’s 

identical rule change the Commission 

cited certain findings that it made in its 

earlier approval of NOM, including that 

‘‘the Act does not mandate a particular 

market model for national securities 

exchanges’’ and that ‘‘many different 

types of market models could satisfy the 

requirements of the Act’’.15 The 

Commission stated that it does not 

believe that the Act requires an 

exchange to have Market Makers.16 The 

Commission also noted that in the 

context of approving NOM, it had 

previously stated that although Options 

Market Makers could be an important 

source of liquidity on NOM, they likely 

would not be the only source.17 The 

Exchange notes that the NOM System 

operates in a substantially similar 

manner to the Exchange’s System, and 

is designed to match buying and selling 

interest of all participants on the 

Exchange. The Exchange is proposing 

simply to remove the Options Market 

Maker participation requirement as 

superfluous to the existence of a vibrant 

options market, nevertheless 

acknowledging the value Options 

Market Makers provide to the Exchange. 

With regard to the impact on system 

capacity, the Exchange has analyzed its 

capacity and represents that it and the 

Options Price Reporting Authority have 

the necessary systems capacity to 

handle the additional traffic associated 

with the listing and trading of an 

expanded number of series as proposed 

by this filing. 

The Exchange also proposes to delete 

paragraph (b) of Rule 19.5, which states 

that a class of options will be put into 

a non-regulatory halt if at least one 

series for that class is not open for 

trading. Originally, this provision was 

put in place so that the Exchange could 

approve underlying securities for the 

listing of options but delay the listing if 


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18 15 U.S.C. 78f(b). 

19 15 U.S.C. 78f(b)(5). 

20 15 U.S.C. 78s(b)(3)(A). 

21 17 CFR 240.19b–4(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 the proposed rule change, or such shorter time 

as designated by the Commission. The Exchange 

has satisfied this requirement. 

22 17 CFR 240.19b 4(f)(6). 

23 17 CFR 240.19b 4(f)(6)(iii). 

24See supra note 14. 

25For 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). 

the Options Market Makers on the 

Exchange were not yet ready to register 

in any series of options for that class. 

With the elimination of the other 

paragraphs in Rule 19.5 requiring an 

Options Market Maker, the Exchange 

will no longer need to delay the listings 

of particular series and thus will no 

longer need this provision. 

Finally, the Exchange proposes to 

delete paragraph (c) of Rule 19.5, which 

addresses the situation where a series of 

options only has one Options Market 

Maker that then withdraws its 

registration. Based on the proposed 

change described above, this provision 

is no longer necessary. 

2. Statutory Basis 

Approval of the rule change proposed 

in this submission is consistent with the 

requirements of the Act and the rules 

and regulations thereunder that are 

applicable to a national securities 

exchange, and, in particular, with the 

requirements of Section 6(b) of the 

Act.18 In particular, the proposed 

change is consistent with Section 6(b)(5) 

of the Act,19 because it would promote 

just and equitable principles of trade, 

remove impediments to, and perfect the 

mechanism of, a free and open market 

and a national market system, and, in 

general, protect investors and the public 

interest. Specifically, the Exchange 

believes that the proposed amendment 

would expand the ability of investors to 

trade options and hedge risks associated 

with securities underlying options 

which are not currently listed due to the 

lack of an Options Market Maker 

registration in such options series. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change imposes any 

burden on competition. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received from 

Members, Participants, or Others 

The Exchange has neither solicited 

nor received written comments on 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 20 and Rule 19b– 

4(f)(6) thereunder.21

A proposed rule change filed 

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

Act 22 normally does not become 

operative for 30 days after the date of its 

filing. However, Rule 19b–4(f)(6)(iii) 23

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. In 

making this determination, the 

Commission notes that BAT’s proposed 

rule change is substantially similar to 

Nasdaq’s recently approved rule change 

to eliminate its requirement that at least 

one options Market Maker be registered 

for trading a particular series before it 

could be opened for trading on NOM,24

and the Commission believes that 

BATS’ proposed rule change raises no 

new regulatory issues. The Commission 

believes that waiving the operative 

delay will allow BATS to immediately 

expand the number of series available 

for trading, permitting BATS to compete 

with NOM in the trading of these series 

and should foster intermarket price 

competition by providing an additional 

market and source of liquidity for 

options series that would otherwise 

have been prohibited from trading on 

BATS due to the lack of a Market Maker 

registered in that series. For these 

reasons, the Commission designates that 

the proposed rule change become 

operative immediately.25

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–BATS–2010–013 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–BATS–2010–013. 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, 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–BATS–2010–013 and 


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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. 


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