Federal Register / Vol. 73, No. 191 / Wednesday, October 1, 2008 / Notices 57169 

c. Modernizing the Commission’s 

Disclosure System 

i. How should the Commission’s 

disclosure system be modernized? One 

possibility is a company file system. 

What alternative systems should be 

considered? What different or additional 

benefits might these alternatives 

provide? 

ii. How should a modern disclosure 

system, such as a company file system, 

be organized, and how could it improve 

the way disclosure information is 

submitted and used? 

iii. What features should any 

modernized disclosure system provide 

in order to serve the needs of filers, 

investors, regulators, and other users of 

information? Why? 

iv. Data tagging using XBRL, or 

eXtensible Business Reporting 

Language, is one way, but we 

understand there are other ways to 

structure data. What alternative ways 

could be used by companies to submit 

structured data to the Commission? 

v. What are the costs and benefits to 

investors and other market participants 

of structuring non-financial disclosures, 

including, for example, data tagging? 

vi. What time frame would be 

appropriate for implementing a 

company file system? 

vii. What benefits and costs to 

preparers and users of information 

would accompany the implementation 

of modernized disclosure system, such 

as a company file system, that requires 

all, or virtually all, data to be filed in a 

structured format? Would such a system 

be more useful to some investors, such 

as small or less sophisticated investors? 

Would some investors be harmed by 

such a system? Would larger companies 

benefit more than smaller companies? 

Would costs fall disproportionately on 

one group of companies? 

viii. Are any changes to the 

Commission’s disclosure regulations 

required for a transition to a company 

file system? How could these changes be 

identified? 

Dated: September 26, 2008. 

By the Commission. 

Florence E. Harmon, 

Acting Secretary. 

[FR Doc. E8–23105 Filed 9–30–08; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

Sunshine Act Meeting 

Notice is hereby given, pursuant to 

the provisions of the Government in the 

Sunshine Act, Public Law 94–409, that 

the Securities and Exchange 

Commission will hold a Closed Meeting 

on Thursday, October 2, 2008 at 2 p.m. 

Commissioners, Counsel to the 

Commissioners, the Secretary to the 

Commission, and recording secretaries 

will attend the Closed Meeting. Certain 

staff members who have an interest in 

the matters also may be present. 

The General Counsel of the 

Commission, or his designee, has 

certified that, in his opinion, one or 

more of the exemptions set forth in 5 

U.S.C. 552b(c)(3), (5), (6), (7), 9(B) and 

(10) and 17 CFR 200.402(a)(3), (5), (6), 

(7), 9(ii) and (10), permit consideration 

of the scheduled matters at the Closed 

Meeting. 

Commissioner Casey, as duty officer, 

voted to consider the items listed for the 

Closed Meeting in closed session. 

The subject matter of the Closed 

Meeting scheduled for Thursday, 

October 2, 2008 will be: 

Formal orders of investigation; 

Institution and settlement of injunctive 

actions; 

Institution and settlement of 

administrative proceedings of an 

enforcement nature; 

A collection matter; 

Amicus consideration; 

An adjudicatory matter; and 

Other matters relating to enforcement 

proceedings. 

At times, changes in Commission 

priorities require alterations in the 

scheduling of meeting items. 

For further information and to 

ascertain what, if any, matters have been 

added, deleted or postponed, please 

contact: 

The Office of the Secretary at (202) 

551–5400. 

Dated: September 26, 2008. 

Florence E. Harmon, 

Acting Secretary. 

[FR Doc. E8–23048 Filed 9–30–08; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

Sunshine Act Meeting 

FEDERAL REGISTER CITATION OF PREVIOUS

ANNOUNCEMENT: [to be published]. 

STATUS: Open meeting. 

PLACE: 100 F Street, NE., Washington, 

DC. 

DATE AND TIME OF PREVIOUSLY ANNOUNCED

MEETING: Wednesday, October 1, 2008 at 

10 a.m. 

CHANGE IN THE MEETING: Cancellation of 

Meeting. 

The Open Meeting scheduled for 

Wednesday, October 1, 2008 has been 

cancelled. 

For further information please contact 

the Office of the Secretary at (202) 551– 

5400. 

Dated: September 26, 2008. 

Florence E. Harmon, 

Acting Secretary. 

[FR Doc. E8–23074 Filed 9–30–08; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[File No. 500–1] 

Wendt-Bristol Health Services Corp.; 

Order of Suspension of Trading 

September 26, 2008. 

It appears to the Securities and 

Exchange Commission that there is a 

lack of current and accurate information 

concerning the securities of WendtBristol Health Services Corp. (‘‘WendtBristol’’) because it has not filed any 

periodic reports since the period ended 

March 31, 2000. Wendt-Bristol is quoted 

on the Pink Sheets operated by Pink 

OTC Markets, Inc. under the ticker 

symbol WMDB. 

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 above-listed company is 

suspended for the period from 9:30 a.m. 

EDT on September 26, 2008, through 

11:59 p.m. EDT on October 9, 2008. 

By the Commission. 

J. Lynn Taylor, 

Assistant Secretary. 

[FR Doc. E8–23086 Filed 9–26–08; 4:15 pm] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–58623; File No. SR–BATS– 

2008–004] 

Self-Regulatory Organizations; BATS 

Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Consolidating Into a 

Single Rule Certain Requirements for 

Products Traded on the Exchange 

Pursuant to Unlisted Trading 

Privileges 

September 23, 2008. 

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

Securities Exchange Act of 1934 


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57170 Federal Register / Vol. 73, No. 191 / Wednesday, October 1, 2008 / Notices 

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). 

5 17 CFR 240.19b–4(e). 

6See BATS Rule 3.7. 

7BATS’s pre-opening session is from 8 a.m. to 

9:30 a.m. Eastern Time. BATS does not currently 

have a post market trading session. 

8A Member is any registered broker or dealer that 

has been admitted to membership in the Exchange. 

9 15 U.S.C. 80a–24(d). 

10The Exchange also has authority to suspend or 

halt trading under BATS Rule 11.1. 

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

notice is hereby given that on 

September 17, 2008, BATS Exchange, 

Inc. (‘‘BATS’’ or ‘‘Exchange’’) 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. BATS 

has designated the proposed rule change 

as constituting a rule change under 

Section 19(b)(3)(A) of the Act 3 and Rule 

19b–4(f)(6) thereunder,4 which renders 

the proposal 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 14.1, entitled ‘‘Unlisted 

Trading Privileges’’ to consolidate into a 

single rule certain requirements for 

trading products on the Exchange 

pursuant to unlisted trading privileges 

(‘‘UTP’’) that have been established in 

various new product proposals 

previously approved by the 

Commission. 

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 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 purpose of the proposed rule 

change is to amend the Exchange’s rules 

to consolidate into a single rule certain 

requirements for trading products on the 

Exchange pursuant to UTP that have 

been established in various new product 

proposals previously approved by the 

Commission. The Exchange proposes to 

amend BATS Rule 14.1 to set forth rules 

regarding the extension of UTP to a 

security that is listed on another 

national securities exchange. Any such 

security will be subject to all Exchange 

trading rules applicable to equity 

securities, unless otherwise noted. The 

Exchange will file with the Commission 

a Form 19b–4(e) with respect to any 

such security that is a ‘‘new derivative 

securities product’’ as defined in Rule 

19b–4(e) under the Act.5 In addition, 

any new derivative securities product 

traded on the Exchange pursuant to the 

proposed BATS Rule 14.1 will be 

subject to the following criteria. 

Proposed BATS Rule 14.1(c)(2) 

provides that the Exchange will 

distribute an information circular prior 

to the commencement of trading in such 

new derivative securities products, 

which generally will include the same 

information as the information circular 

provided by the listing exchange, 

including: (1) The special risks of 

trading the new derivative securities 

product; (2) the Exchange’s rules that 

will apply to the new derivative 

securities product, including the 

suitability rule;6 (3) information about 

the dissemination of the value of the 

underlying assets or indexes; and (4) the 

risk of trading during the Exchange’s 

pre-opening session due to the lack of 

calculation or dissemination of the 

intraday indicative value or a similar 

value.7

Proposed BATS Rule 14.1(c)(3)(A) 

reminds Members 8 that they are subject 

to the prospectus delivery requirements 

under the Securities Act of 1933, as 

amended (‘‘Securities Act’’), unless the 

new derivative securities product is the 

subject of an order by the Commission 

exempting the product from certain 

prospectus delivery requirements under 

Section 24(d) of the Investment 

Company Act of 1940 (‘‘1940 Act’’) 9

and the product is not otherwise subject 

to prospectus delivery requirements 

under the Securities Act. The Exchange 

will inform its Members of the 

application of the provisions of this 

subparagraph to a particular new 

securities derivative product governed 

by the 1940 Act by means of an 

information circular. 

Proposed BATS Rule 14.1(c)(4) 

addresses trading halts in new 

derivative securities products traded on 

the Exchange pursuant to UTP. 

Proposed BATS Rule 14.1(c)(4)(A) 

provides that the Exchange, upon 

notification by the listing market of a 

halt due to a temporary interruption in 

the calculation or wide dissemination of 

the intraday indicative value (or similar 

value) or the value of the underlying 

index or instrument, will immediately 

halt trading in that product on the 

Exchange. If the intraday indicative 

value (or a similar value) or the value 

of the underlying index or instrument 

continues not to be calculated or widely 

available at the commencement of 

trading on the Exchange on the next 

business day, the Exchange shall not 

commence trading of the product on 

that day. If an interruption in the 

calculation or wide dissemination of the 

intraday indicative value (or a similar 

value) or the value of the underlying 

index or instrument of a series 

continues, the Exchange may resume 

trading in the product only if 

calculation and wide dissemination of 

the intraday interactive value (or a 

similar value) or the value of the 

underlying index or instrument resumes 

or trading in such series resumes in the 

listing market.10

Additionally, proposed BATS Rule 

14.1(c)(4)(B) provides that, for a new 

derivative securities product where a 

net asset value (and, in the case of 

managed fund shares or actively 

managed exchange-traded funds, a 

‘‘disclosed portfolio’’) is disseminated, 

the Exchange will immediately halt 

trading in such security upon 

notification by the listing market that 

the net asset value, and, if applicable, 

such disclosed portfolio, is not being 

disseminated to all market participants 

at the same time. The Exchange may 

resume trading in the new derivative 

securities product only when trading in 

such security resumes on the listing 

market. 

Proposed BATS Rule 14.1(c)(5) 

provides for restrictions for any Member 

registered as a Market Maker 

(‘‘Restricted Market Maker’’) in a new 

derivative securities product that 

derives its value from one or more 

currencies, commodities, or derivatives 

based on one or more currencies or 

commodities, or is based on a basket or 

index comprised of currencies or 

commodities (collectively, ‘‘Reference 

Assets’’). Specifically, proposed BATS 


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Federal Register / Vol. 73, No. 191 / Wednesday, October 1, 2008 / Notices 57171 

11As of the date of this filing, the Exchange does 

not have a market maker classification. However, 

the Exchange intends to amend its rules to adopt 

a market maker classification. Accordingly, the 

Exchange has incorporated the market maker 

prohibition set forth in proposed Rule 14.1(c)(5) in 

anticipation of that rule filing. 

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

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

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

15 17 CFR 240.19b–4(f)(6). The Commission notes 

that BATS has satisfied the five-day pre-filing 

notice requirement. 

16See NSX Rule 15.9 and Securities Exchange Act 

Release No. 57448 (March 6, 2008), 73 FR 13597 

(March 13, 2008) (SR–NSX–2008–05); Phlx Rule 

803(o) and Securities Exchange Act Release No. 

57806 (May 9, 2008), 73 FR 28541 (May 16, 2008) 

(SR–Phlx-2008–34); ISE Rule 2101 and Securities 

Exchange Act Release No. 57387 (February 27, 

2008), 73 FR 11965 (March 5, 2008) (SR–ISE–2007– 

99). 

17For purposes only of waiving the operative date 

of this proposal, the Commission has considered 

the rule’s impact on efficiency, competition, and 

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

Rule 14.1(c)(5)(A) provides that a 

Restricted Market Maker in a new 

derivative securities product is 

prohibited from acting or registering as 

a market maker in any Reference Asset 

of that new derivative securities product 

or any derivative instrument based on a 

Reference Asset of that new derivative 

securities product (collectively, with 

Reference Assets, ‘‘Related 

Instruments’’). Proposed BATS Rule 

14.1(c)(5)(B) provides that a Restricted 

Market Maker shall, in a manner 

prescribed by the Exchange, file with 

the Exchange and keep current a list 

identifying any accounts (‘‘Related 

Instrument Trading Accounts’’) for 

which Related Instruments are traded: 

(1) In which the Restricted Market 

Maker holds an interest; (2) over which 

it has investment discretion; or (3) in 

which it shares in the profits and/or 

losses. In addition, a Restricted Market 

Maker may not have an interest in, 

exercise investment discretion over, or 

share in the profits and/or losses of a 

Related Instrument Trading Account 

which has not been reported to the 

Exchange as required by this rule. 

Proposed BATS Rule 14.1(c)(5)(C) 

provides that, in addition to the existing 

obligations under Exchange rules 

regarding the production of books and 

records, a Restricted Market Maker 

shall, upon request by the Exchange, 

make available to the Exchange any 

books, records, or other information 

pertaining to any Related Instrument 

Trading Account or to the account of 

any registered or non-registered 

employee affiliated with the Restricted 

Market Maker for which Related 

Instruments are traded. Finally, 

proposed BATS Rule 14.1(c)(5)(D) 

provides that a Restricted Market Maker 

shall not use any material nonpublic 

information in connection with trading 

a Related Instrument.11

Lastly, BATS represents that the 

Exchange’s surveillance procedures for 

new derivative securities products 

traded on the Exchange pursuant to UTP 

will be similar to the procedures used 

for equity securities traded on the 

Exchange and will incorporate and rely 

upon existing Exchange surveillance 

systems. The Exchange will closely 

monitor activity in new derivative 

securities products traded on the 

Exchange pursuant to UTP to deter any 

improper trading activity. The proposed 

rule change also provides that the 

Exchange will enter into a 

comprehensive surveillance sharing 

agreement (‘‘CSSA’’) with a market 

trading components of the index or 

portfolio on which the new derivative 

securities product is based to the same 

extent as the listing exchange’s rule 

require the listing market to enter into 

a CSSA with such market. 

2. Statutory Basis 

Approval of the rule changes 

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, 

specifically, with the requirements of 

Section 6(b) of the Act.12 In particular, 

for the reasons described above, the 

proposed changes are consistent with 

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

they 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 by providing for the trading of 

securities, including new derivative 

securities products, on BATS pursuant 

to UTP, subject to consistent and 

reasonable standards. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule changes impose any 

burden on competition. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Changes Received From 

Members, Participants or Others 

No written comments were solicited 

or received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the foregoing 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 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 14 and Rule 19b–4(f)(6) 

thereunder.15

BATS has asked the Commission to 

waive the 30-day operative delay. The 

Commission believes that such waiver is 

consistent with the protection of 

investors and the public interest 

because such waiver should benefit 

investors by creating, without undue 

delay, additional competition in the 

trading of new derivative securities 

products, subject to consistent and 

reasonable standards. Proposed BATS 

Rule 14.1 is closely modeled after 

similar rules of other national securities 

exchanges 16 and does not raise any 

novel or significant regulatory issues. 

Therefore, the Commission designates 

the proposed rule change as operative 

upon filing.17

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–BATS–2008–004 on the 

subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Secretary, Securities and Exchange 

Commission, 100 F Street, NE., 

Washington, DC 20549–1090. 


jlentini on PROD1PC65 with NOTICES
57172 Federal Register / Vol. 73, No. 191 / Wednesday, October 1, 2008 / Notices 

18 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3 17 CFR 240.19b–4(f)(6). 4 17 CFR 240.15c3–1. 

All submissions should refer to File 

Number SR-BATS–2008–004. This file 

number should be included on the 

subject line if e-mail is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

Internet Web site http://www.sec.gov/ 

rules/sro.shtml. Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for inspection and copying in 

the Commission’s Public Reference 

Room on official business days between 

the hours of 10 a.m. and 3 p.m. Copies 

of such filing will also 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– 

2008–004 and should be submitted on 

or before October 22, 2008. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.18

Florence E. Harmon, 

Acting Secretary. 

[FR Doc. E8–22961 Filed 9–30–08; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–58644; File No. SR–BATS– 

2008–005] 

Self-Regulatory Organizations; BATS 

Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend BATS 

Rulebook Chapter XI To Add Four New 

Rules Regarding the Registration and 

Obligations of Market Makers and 

Amend Rule 1.5 To Add Definitions of 

‘‘Market Maker’’ and ‘‘Market Maker 

Authorized Trader’’ 

September 25, 2008. 

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 

September 19, 2008, BATS Exchange, 

Inc. (‘‘BATS’’ or the ‘‘Exchange’’) filed 

with the Securities and Exchange 

Commission (‘‘Commission’’) the 

proposed rule change as described in 

Items I, II, and III below, which Items 

have been prepared by the Exchange. 

BATS has designated the proposed rule 

change as constituting a noncontroversial rule change under Rule 

19b–4(f)(6) under the Act,3 which 

renders the proposal 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 

Chapter XI of the BATS Rulebook to add 

four new rules which would provide for 

the registration and obligations of 

market makers, as well as amending 

Rule 1.5 to add the definitions of 

‘‘Market Maker’’ and ‘‘Market Maker 

Authorized Trader.’’ 

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 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 purpose of the proposed rule 

change is to provide Members the 

ability to register as Market Makers and 

to provide for the regulation of Market 

Makers. The process for registration as 

a Market Maker is contained in 

Proposed Rule 11.5, which provides that 

applicants must file applications in 

such form as the Exchange may 

prescribe. Applicants will be reviewed 

by the Exchange, which will consider 

factors including the capital, operations, 

personnel, technical resources, and 

disciplinary history of the applicant. 

Each Market Maker must have and 

maintain the minimum net capital of at 

least the amount required by Rule 15c3– 

1 of the Exchange Act.4 Pursuant to the 

Proposed Rule, an applicant’s 

registration as a Market Maker will 

become effective upon receipt by the 

Member of the Exchange’s notice of 

approval of registration. The Proposed 

Rule also provides that the registration 

of a Market Maker may be suspended or 

terminated by the Exchange if the 

Exchange determines that the Market 

Maker substantially or continually 

failed to engage in dealings in 

accordance with Exchange Rules, if the 

Market Maker fails to meet the 

minimum net capital conditions, or the 

Market Maker fails to maintain fair and 

orderly markets. 

Proposed Rule 11.6 provides for the 

registration and obligations of Market 

Maker Authorized Traders (‘‘MMATs’’). 

The Exchange can register a person as 

a MMAT upon receiving an application 

in the form prescribed, and MMATs are 

permitted to enter orders only for the 

account of the Market Maker for which 

they are registered. MMATs may be 

officers, partners, employees or other 

associated persons of Members who are 

registered as Market Makers. To be 

eligible for registration as a MMAT, a 

person must complete the training and 

other programs required by the 

Exchange and successfully complete the 

General Securities Representative 

Examination (Series 7). Market Makers 

must ensure that their MMATs are 

properly qualified to perform market 

making activities. The Exchange may 

suspend or withdraw the registration of 

a MMAT if the Exchange determines 

that the person has caused the Market 

Maker to fail to comply with the 

securities laws or rules of the Exchange, 

if the person fails to perform his or her 

responsibilities properly, or fails to 

maintain fair and orderly markets. If a 

MMAT is suspended, the Market Maker 

may not allow the person to submit 

orders. In addition, the registration of a 

MMAT may be withdrawn upon the 

written request of the Member for which 

the MMAT is registered. 

Proposed Rule 11.7 provides for the 

registration of Market Makers in a 

security. A Market Maker may become 

registered in a newly authorized 


jlentini on PROD1PC65 with NOTICES