Federal Register / Vol. 75, No. 177 / Tuesday, September 14, 2010 / Notices 55837 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 62479 

(July 9, 2010), 75 FR 41264 (July 15, 2010) (SR– 

NYSEAmex-2010–31) (Notice of Filing of 

Amendment Nos. 2 and 3, and Order Granting 

Accelerated Approval to a Proposed Rule Change, 

as Modified by Amendment Nos. 1, 2, and 3 

Thereto, To Adopt as a Pilot Program a New Rule 

Series for the Trading of Securities Listed on the 

Nasdaq Stock Market Pursuant to Unlisted Trading 

Privileges). 

4See Securities Exchange Act Release No. 58863 

(October 27, 2008), 73 FR 65417 (November 3, 2008) 

(Notice of filing and immediate effectiveness of 

Amendment No. 20 to the UTP Plan). The 

Exchange’s predecessor, the American Stock 

Exchange LLC, joined the UTP Plan in 2001. See 

Securities Exchange Act Release No. 55647 (April 

19, 2007), 72 FR 2091 (April 27, 2007) (S7–24–89). 

In March 2009, the Exchange changed its name to 

NYSE Amex LLC. See Securities Exchange Act 

Release No. 59575 (March 13, 2009), 74 FR 11803 

(March 19, 2009) (SR–NYSEALTR–2009–24). 

5 15 U.S.C. 78l. 

6 ‘‘Nasdaq Securities’’ is included within the 

definition of ‘‘security’’ as that term is used in the 

NYSE Amex Equities Rules. See NYSE Amex 

Equities Rule 3. In accordance with this definition, 

Nasdaq Securities are admitted to dealings on the 

Exchange on an ‘‘issued,’’ ‘‘when issued,’’ or ‘‘when 

distributed’’ basis. See NYSE Amex Equities Rule 

501. 

7See NYSE Amex Equities Rule 103. 

8See Securities Exchange Act Release No 60758 

(October 1, 2009), 74 FR 51639 (October 7, 2009) 

(SR–NYSEAmex-2009–65). See also Securities 

Exchange Act Release No. 61030 (November 19, 

2009), 74 FR 62365 (November 27, 2009) (SR– 

NYSEAmex-2009–83). See also Securities Exchange 

Act Release No. 61725 (March 17, 2010), 75 FR 

14223 (March 24, 2010) (SR–NYSEAmex-2010–28). 

9 15 U.S.C. 78. 

10See supra note 1 [sic], at 41271. 

11 Id. 

12See SR–NYSEAmex-2010–86. 

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

14 15 U.S.C. 78f(b)(5). 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62857; File No. SR– 

NYSEAmex-2010–89] 

Self-Regulatory Organizations; NYSE 

Amex LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Extend the Pilot 

Program That Allows Nasdaq Stock 

Market Securities To Be Traded on the 

Exchange Pursuant to UTP 

September 7, 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 August 

27, 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 Equities Rule 500 to extend 

the operation of the pilot program that 

allows Nasdaq Stock Market (‘‘Nasdaq’’) 

securities to be traded on the Exchange 

pursuant to a grant of unlisted trading 

privileges. The pilot is currently 

scheduled to expire on September 30, 

2010; the Exchange proposes to extend 

it until the earlier of Commission 

approval to make such pilot permanent 

or January 31, 2011. The text of the 

proposed rule change is available at the 

Exchange’s principal office, the 

Commission’s Public Reference Room, 

the Commission’s Web site (http:// 

www.sec.gov), and http:// 

www.nyse.com. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

self-regulatory organization included 

statements concerning the purpose of, 

and basis for, the proposed rule change 

and discussed any comments it received 

on the proposed rule change. The text 

of those statements may be examined at 

the places specified in Item IV below. 

The Exchange has prepared summaries, 

set forth in sections A, B, and C below, 

of the most significant parts of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

NYSE Amex Equities Rules 500–525, 

as a pilot program, govern the trading of 

any Nasdaq-listed security on the 

Exchange pursuant to unlisted trading 

privileges (‘‘UTP Pilot Program’’).3 The 

Exchange hereby seeks to extend the 

operation of the UTP Pilot Program, 

currently scheduled to expire on 

September 30, 2010, until the earlier of 

Commission approval to make such 

pilot permanent or January 31, 2011. 

The UTP Pilot Program includes any 

security listed on Nasdaq that (i) is 

designated as an ‘‘eligible security’’ 

under the Joint Self-Regulatory 

Organization Plan Governing the 

Collection, Consolidation and 

Dissemination of Quotation and 

Transaction Information for NasdaqListed Securities Traded on Exchanges 

on an Unlisted Trading Privilege Basis, 

as amended (‘‘UTP Plan’’),4 and (ii) has 

been admitted to dealings on the 

Exchange pursuant to a grant of unlisted 

trading privileges in accordance with 

Section 12(f) of the Securities Exchange 

Act of 1934, as amended (the ‘‘Act’’),5

(collectively, ‘‘Nasdaq Securities’’).6

The Exchange notes that its New 

Market Model Pilot (‘‘NMM Pilot’’), 

which, among other things, eliminated 

the function of specialists on the 

Exchange and created a new category of 

market participant, the Designated 

Market Maker (‘‘DMM’’),7 is also 

scheduled to end on September 30, 

2010.8 The timing of the operation of 

the UTP Pilot Program was designed to 

correspond to that of the NMM Pilot. In 

approving the UTP Pilot Program, the 

Commission acknowledged that the 

rules relating to DMM benefits and 

duties in trading Nasdaq Securities on 

the Exchange pursuant to the UTP Pilot 

Program are consistent with the Act 9

and noted the similarity to the NMM 

Pilot, particularly with respect to DMM 

obligations and benefits.10 Furthermore, 

the UTP Pilot Program rules pertaining 

to the assignment of securities to DMMs 

are substantially similar to the rules 

implemented through the NMM Pilot.11

The Exchange has similarly filed to 

extend the operation of the NMM Pilot 

until the earlier of Commission approval 

to make the NMM Pilot permanent or 

January 31, 2011.12

Extension of the UTP Pilot Program in 

tandem with the NMM Pilot, both from 

September 30, 2010 until the earlier of 

Commission approval to make such 

pilots permanent or January 31, 2011, 

will provide for the uninterrupted 

trading of Nasdaq Securities on the 

Exchange on a UTP basis and thus 

continue to encourage the additional 

utilization of, and interaction with, the 

NYSE Amex Equities market, and 

provide market participants with 

improved price discovery, increased 

liquidity, more competitive quotes and 

greater price improvement for Nasdaq 

Securities. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the requirements of the Act and the 

rules and regulations thereunder 

applicable to a national securities 

exchange. In particular, the Exchange 

believes that its proposal is consistent 

with (i) Section 6(b) of the Act,13 in 

general, and furthers the objectives of 

Section 6(b)(5) of the Act,14 in 

particular, in that it is designed to 

prevent fraudulent and manipulative 

acts and practices, to promote just and 

equitable principles of trade, to remove 


jlentini on DSKJ8SOYB1PROD with NOTICES
55838 Federal Register / Vol. 75, No. 177 / Tuesday, September 14, 2010 / Notices 

15 15 U.S.C. 78k-1(a)(1). 

16 15 U.S.C. 78l(f). 

17 15 U.S.C. 78s(b)(3)(A)(iii). 

18 17 CFR 240.19b–4(f)(6). 

19 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)(ii). 

4 17 CFR 240.19b–4(f)(2). 

5A Member is any registered broker or dealer that 

has been admitted to membership in the Exchange. 

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; (ii) Section 11A(a)(1) of 

the Act,15 in that it seeks to ensure the 

economically efficient execution of 

securities transactions and fair 

competition among brokers and dealers 

and among exchange markets; and (iii) 

Section 12(f) of the Act,16 which 

governs the trading of securities 

pursuant to UTP consistent with the 

maintenance of fair and orderly markets, 

the protection of investors and the 

public interest, and the impact of 

extending the existing markets for such 

securities. Under the UTP Pilot Program 

Nasdaq Securities trade on the Exchange 

pursuant to rules governing the trading 

of Exchange-Listed securities that 

previously have been approved by the 

Commission. NYSE Amex made certain 

minor modifications to the operation of 

these rules, and added certain new 

rules, to accommodate the trading of 

Nasdaq Securities on a UTP basis; the 

Commission also approved all of these 

modifications and additions. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will impose 

any burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received from 

Members, Participants, or Others 

No written comments were solicited 

or received with respect to the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The Exchange has filed the proposed 

rule change pursuant to Section 

19(b)(3)(A)(iii) of the Act 17 and Rule 

19b–4(f)(6) thereunder.18 Because the 

proposed rule change does not: (i) 

Significantly affect the protection of 

investors or the public interest; (ii) 

impose any significant burden on 

competition; and (iii) become operative 

prior to 30 days from the date on which 

it was filed, or such shorter time as the 

Commission may designate, if 

consistent with the protection of 

investors and the public interest, the 

proposed rule change has become 

effective pursuant to Section 19(b)(3)(A) 

of the Act and Rule 19b–4(f)(6)(iii) 

thereunder. 

At any time within 60 days of the 

filing of the proposed rule change, the 

Commission summarily may 

temporarily suspend 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–2010–89 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–2010–89. 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 website (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 website 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–NYSEAmex–2010–89 and 

should be submitted on or before 

October 5, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.19

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2010–22859 Filed 9–13–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62858; File No. SR–BATS– 

2010–023] 

Self-Regulatory Organizations; BATS 

Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Related to Fees for Use 

of BATS Exchange, Inc. 

September 7, 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 August 

30, 2010, BATS Exchange, Inc. (‘‘BATS’’ 

or ‘‘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 

one establishing or changing a member 

due, fee, or other charge imposed by the 

Exchange under Section 19(b)(3)(A)(ii) 

of the Act 3 and Rule 19b–4(f)(2) 

thereunder,4 which renders the 

proposed rule change 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 proposes to modify its 

fee schedule applicable to Members 5 of 

the Exchange pursuant to BATS Rules 

15.1(a) and (c). While changes to the fee 

schedule pursuant to this proposal will 

be effective upon filing, the changes will 

become operative on September 1, 2010. 


jlentini on DSKJ8SOYB1PROD with NOTICES