59300 Federal Register / Vol. 75, No. 186 / Monday, September 27, 2010 / Notices 

8 15 U.S.C. 78f(b)(4). 

9 15 U.S.C. 78f(b)(5). 

10 15 U.S.C. 78s(b)(2). 

11 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3 Initially, the ADF was limited to quotations and 

trade reports in Nasdaq securities. See Securities 

Exchange Act Release No. 46249 (July 24, 2002), 67 

FR 49822 (July 31, 2002). In 2006, the ADF was 

expanded to include all NMS stocks. See Securities 

Exchange Act Release No. 54537 (September 28, 

2006), 71 FR 59173 (October 6, 2006). 

4 15 U.S.C. 78o–3(b)(6). 

6(b)(4) of the Act,8 which requires that 

the rules of a national securities 

exchange provide for the equitable 

allocation of reasonable dues, fees and 

other charges among its members and 

issuers and other persons using its 

facilities, and with Section 6(b)(5) of the 

Act,9 which requires, among other 

things, that the rules of a national 

securities exchange be designed 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, and 

not be designed to permit unfair 

discrimination between customers, 

issuers, brokers, or dealers. 

The Commission believes that the 

proposed tiered fees for co-location and 

related services are reasonable and 

equitably allocated insofar as they are 

applied on the same terms to similarly 

situated market participants. In 

addition, the Commission believes that 

the connectivity options described in 

the proposed rule change are not 

unfairly discriminatory because Amex 

makes the co-location services 

uniformly available to all Users who 

voluntarily request them and pay the 

fees as detailed in the proposal. As 

represented by Amex, these fees are 

uniform for all such customers and may 

vary from User to User due to each 

User’s choice of service package. 

Finally, the Commission believes that 

the proposal will further the protection 

of investors and the public interest 

because it will provide greater 

transparency regarding the connectivity 

options available to market participants. 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,10 that the 

proposed rule change (SR–NYSEAmex– 

2010–80) be, and hereby is, approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–24063 Filed 9–24–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62953; File No. SR–FINRA– 

2010–049] 

Self-Regulatory Organizations; 

Financial Industry Regulatory 

Authority, Inc.; Notice of Filing of a 

Proposed Rule Change Relating to 

Quotation Requirements on the 

Alternative Display Facility 

September 20, 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 

September 17, 2010, Financial Industry 

Regulatory Authority, Inc. (‘‘FINRA’’) 

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 FINRA. 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 

FINRA is proposing to amend FINRA 

Rule 6272 to enhance quotation 

requirements on the Alternative Display 

Facility (‘‘ADF’’). 

The text of the proposed rule change 

is available on FINRA’s Web site at 

http://www.finra.org, at the principal 

office of FINRA, 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, 

FINRA 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. FINRA has prepared 

summaries, set forth in sections A, B, 

and C below, of the most significant 

aspects of such statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

In 2002, FINRA created the ADF to 

ensure that any FINRA member, 

including alternative trading systems, 

seeking to display quotations for NMS 

stocks in the over-the-counter (‘‘OTC’’) 

market, rather than through an exchange 

platform, has an alternative venue 

through which to post its OTC 

quotations and report trades.3

FINRA and numerous exchanges are 

filing proposed rule changes to enhance 

the minimum quotation requirements 

for market makers by requiring market 

makers for each stock in which they are 

registered to continuously maintain 

two-sided quotations within a 

designated percentage of the National 

Best Bid and National Best Offer (or if 

there is not a National Best Bid or Offer, 

the last reported sale). These proposed 

rule changes are intended to eliminate 

trade executions against market maker 

‘‘placeholder’’ quotations that are priced 

far away from the inside market, 

commonly known as ‘‘stub quotes.’’ 

Under these proposed rules, limitations 

on permissible quotations are 

determined by the individual character 

of the security, the time of day in which 

the quote is entered, and any applicable 

stock trading pause triggers. 

In order to ensure consistency in 

quotation requirements across markets, 

FINRA is proposing to amend Rule 6272 

to impose the same limitations on a 

Registered Reporting ADF Market 

Maker’s quotations on the ADF that will 

apply to market makers on national 

securities exchanges. The proposed rule 

change would thus require all 

Registered Reporting ADF Market 

Makers to have systems in place to 

ensure that any quotations displayed on 

the ADF met the requirements of Rule 

6272. 

FINRA will announce the 

implementation date on its Web site. 

2. Statutory Basis 

FINRA believes that the proposed rule 

change is consistent with the provisions 

of Section 15A(b)(6) of the Act,4 which 

requires, among other things, that 

FINRA rules must be designed to 

prevent fraudulent and manipulative 

acts and practices, to promote just and 

equitable principles of trade, and, in 

general, to protect investors and the 

public interest. FINRA believes that the 

proposed rule change will ensure 

consistent treatment of quotations 

across markets and could prevent the 

execution of numerous transactions at 


srobinson on DSKHWCL6B1PROD with NOTICES
Federal Register / Vol. 75, No. 186 / Monday, September 27, 2010 / Notices 59301 

5 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3The Exchange notes that parallel changes are 

proposed to the rules of its affiliate, NYSE Amex 

LLC. See SR–NYSEAmex–2010–71. 

4See Securities Exchange Act Release No. 36156 

(August 25, 1995), 60 FR 45756 (September 1, 1995) 

(SR–NYSE–95–22). The Wireless Policy was 

attached as an exhibit to the proposed rule change 

that most recently amended the Wireless Policy. 

See Securities Exchange Act Release No. 59626 

(March 25, 2009), 74 FR 14831 (April 1, 2009) (SR– 

NYSE–2009–33). 

5NYSE Rule 36.20. 

6NYSE Rule 36.21. 

stub quote prices, such as those on May 

6, 2010. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

FINRA does not believe that the 

proposed rule change will result in 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 

Written comments were neither 

solicited nor received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Within 45 days of the date of 

publication of this notice in the Federal 

Register or within such longer period (i) 

as the Commission may designate up to 

90 days of such date if it finds such 

longer period to be appropriate and 

publishes its reasons for so finding or 

(ii) as to which the self-regulatory 

organization consents, the Commission 

will: 

(A) by order approve or disapprove 

such proposed rule change, or 

(B) institute proceedings to determine 

whether the proposed rule change 

should be disapproved. 

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–FINRA–2010–049 on the 

subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Elizabeth M. Murphy, Secretary, 

Securities and Exchange Commission, 

Station Place, 100 F Street, NE., 

Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–FINRA–2010–049. 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, 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 FINRA. 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 publicly available. All 

submissions should refer to File 

Number SR–FINRA–2010–049 and 

should be submitted on or before 

October 18, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.5

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–24057 Filed 9–24–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62964; File No. SR–NYSE– 

2010–53] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change by New York 

Stock Exchange LLC Amending NYSE 

Rule 36 

September 21, 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 

September 14, 2010, the New York 

Stock Exchange LLC (‘‘NYSE’’ or the 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission (the 

‘‘Commission’’) the proposed rule 

change as described in Items I 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 Rule 36 (‘‘Communications 

Between Exchange and Members’ 

Offices’’) to incorporate the provisions of 

its current Wireless Policy. The text of 

the proposed rule change is available at 

the Exchange, the Commission’s Public 

Reference Room, 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 proposes to amend NYSE Rule 

36 (‘‘Communications Between 

Exchange and Members’ Offices’’) to 

incorporate the provisions of its current 

Wireless Policy into Supplementary 

Material .70 of the Rule.3 The Wireless 

Policy was previously approved by the 

Commission.4

Background 

Current NYSE rules permit a Floor 

broker to communicate information to a 

customer using a wired telephone line,5

NYSE approved portable telephones,6 or 

through a written electronic 

communication from the Floor brokers’ 

hand-held device as permitted by the 

NYSE’s ‘‘Wireless Data Communications 

Initiatives.’’ Wireless communications 


srobinson on DSKHWCL6B1PROD with NOTICES