Federal Register / Vol. 75, No. 26 / Tuesday, February 9, 2010 / Notices 6423 

6 17 CFR 240.15c1–8. 

7See Securities Exchange Act Release No. 32100 

(April 2, 1993), 58 FR 18145 (April 8, 1993). 

8 15 U.S.C. 78s(b)(2). 

9 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b-4. 

3The Exchange’s two modes of order interaction 

are described in NSX Rule 11.13(b). 

4 ‘‘Zero Display Orders’’ as used herein and in the 

Fee Schedule means ‘‘Zero Display Reserve Orders’’ 

as specified in NSX Rule 11.11(c)(2)(A). 

5See Explanatory Endnote (6) to the Fee 

Schedule. 

general, to protect investors and the 

public interest. 

The Commission believes that the 

proposed rule change is appropriate to 

eliminate confusion and reduce 

regulatory overlap by repealing rules 

that are similar to federal rules and 

regulations or are specific to the NYSE 

and its marketplace. As further 

described in the Notice, FINRA stated 

that NASD Rule 2760 is similar to the 

Commission’s Rule 15c1–8 under the 

Act,6 which FINRA believes 

appropriately protects investors without 

duplication by NASD Rule 2760. FINRA 

also stated that NASD Rule 2780 

duplicates the Commission’s Rule 10b– 

2, which was rescinded by the 

Commission in 1993 because it was 

duplicative of other provisions of the 

federal securities laws, including the 

Commission’s Regulation M.7 Therefore, 

FINRA believes that NASD Rule 2780 

should be deleted. In addition, FINRA 

stated that NYSE Rules 2B and 411 and 

the Interpretation to Incorporated NYSE 

Rule 411(a)(ii)(5) relate to activity that 

concerns solely the NYSE marketplace 

and, in the case of Rule 411(b)(2), is 

duplicative of existing Commission 

recordkeeping requirements. Thus, 

FINRA believes that these Incorporated 

NYSE Rules and Interpretation should 

not be included in the consolidated 

FINRA rulebook. In approving this 

proposed rule change, the Commission 

notes that FINRA members and their 

associated persons are required to 

comply with all applicable federal 

securities laws and that FINRA, as a 

self-regulatory organization, has the 

obligation to have the capacity to 

enforce compliance by its members and 

their associated persons with the Act 

and the rules and regulations 

thereunder. 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,8 proposed 

rule change (SR–FINRA–2009–087) be, 

and it hereby is, approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.9

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–2734 Filed 2–8–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

Release No. 34–61474; File No. SR–NSX– 

2010–01] 

Self-Regulatory Organizations; 

National Stock Exchange, Inc.; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change To Amend 

the NSX Fee and Rebate Schedule To 

Increase the Rebate for Liquidity 

Adding Displayed Orders of Securities 

Priced Under One Dollar in the Auto 

Execution Mode of Order Interaction to 

0.25% of Trade Value 

February 2, 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 January 

29, 2010, National Stock Exchange, Inc. 

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. 

The Commission is publishing this 

notice to solicit comment on the 

proposed rule change from interested 

persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

National Stock Exchange, Inc. 

(‘‘NSX®’’ or ‘‘Exchange’’) is proposing a 

rule change, operative at 

commencement of trading on February 

1, 2010, which proposes to amend the 

NSX Fee and Rebate Schedule (the ‘‘Fee 

Schedule’’) to increase the rebate for 

liquidity adding displayed orders of 

securities priced under one dollar in the 

Auto Execution mode of order 

interaction (‘‘AutoEx’’) 3 to 0.25% of 

trade value. 

The text of the proposed rule change 

is available on the Exchange’s Web site 

at http://www.nsx.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 

With this rule change, the Exchange is 

proposing to modify the Fee Schedule to 

increase the rebate for liquidity adding 

displayed orders of securities priced 

under one dollar in AutoEx to 0.25% of 

trade value. 

The current Fee Schedule provides a 

rebate in AutoEx of 0.10% of trade value 

(except for Zero Display Orders 4) with 

respect to transactions in securities 

priced under one dollar. The term ‘‘trade 

value’’ means a dollar amount equal to 

the price per share multiplied by the 

number of shares executed.5 The instant 

rule filing proposes to increase such 

rebate from 0.10% of trade value to 

0.25% of trade value. Zero Display 

Orders remain excluded from this rebate 

program. The proposed rule change 

would not modify other rebates or fees 

that are included in the Fee Schedule. 

Rationale 

The Exchange has determined that 

this change is necessary to create further 

incentive for ETP Holders to submit 

increased volumes of liquidity 

providing displayed orders of sub-dollar 

securities in AutoEx and, ultimately, to 

increase the revenues of the Exchange 

for the purpose of continuing to 

adequately fund its regulatory and 

general business functions. The 

Exchange has further determined that 

the proposed fee adjustment is 

necessary for competitive reasons. The 

Exchange believes that this rebate 

change will not impair its ability to 

carry out its regulatory responsibilities. 

The proposed modifications are 

reasonable and equitably allocated to 

those ETP Holders that opt to provide 

liquidity adding displayed orders of 

securities priced under one dollar in 

AutoEx, and is not discriminatory 

because ETP Holders are free to elect 

whether or not to send liquidity adding 

displayed orders for sub-dollar 

securities in AutoEx. In addition, the 

proposed modification will tend to 

further incentivize ETP Holders to 

submit displayed orders over Zero 


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6424 Federal Register / Vol. 75, No. 26 / Tuesday, February 9, 2010 / Notices 

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

7 15 U.S.C. 78f(b)(4). 

8 15 U.S.C. 78s(b)(3)(A)(ii). 

9 17 CFR 240.19b–4. 

10 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3The Commission notes that the form 19b–4 

correctly notes that the 75 new classes were added 

to the Penny Pilot on February 1, 2010. 

Display Orders in AutoEx. Based upon 

the information above, the Exchange 

believes that the proposed rule change 

is consistent with the protection of 

investors and the public interest. 

Operative Date and Notice 

The Exchange intends to make the 

proposed modifications, which are 

effective on filing of this proposed rule, 

operative for trading on February 1, 

2010. Pursuant to Exchange Rule 

16.1(c), the Exchange will ‘‘provide ETP 

Holders with notice of all relevant dues, 

fees, assessments and charges of the 

Exchange’’ through the issuance of a 

Regulatory Circular of the changes to the 

Fee Schedule and will post a copy of the 

rule filing on the Exchange’s Web site 

(http://www.nsx.com). 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the provisions of Section 6(b) of the 

Act,6 in general, and Section 6(b)(4) of 

the Act,7 in particular, in that it is 

designed to provide for the equitable 

allocation of reasonable dues, fees and 

other charges among its members and 

other persons using the facilities of the 

Exchange. Moreover, the proposed rule 

change is not discriminatory in that all 

ETP Holders are eligible to submit (or 

not submit) trades and quotes at any 

price in AutoEx in all tapes, as either 

displayed or undisplayed, and as 

liquidity adding or liquidity taking, and 

may do so at their discretion. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will impose 

any inappropriate 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 

The proposed rule change has taken 

effect upon filing pursuant to Section 

19(b)(3)(A)(ii) of the Act 8 and 

subparagraph (f)(2) of Rule 19b–4 9

thereunder, because, as provided in 

(f)(2), it changes ‘‘a due, fee or other 

charge applicable only to a member’’ 

(known on the Exchange as an ETP 

Holder). At any time within sixty (60) 

days of the filing of such 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–NSX–2010–01 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–NSX–2010–01. 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 the filing will 

also be available for inspection and 

copying at the principal office of the 

self-regulatory organization. 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–NSX–2010–01 and should 

be submitted on or before March 2, 

2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–2740 Filed 2–8–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–61471; File No. SR– 

NYSEAmex–2010–06] 

Self-Regulatory Organizations; NYSE 

Amex LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Adding 75 Options 

Classes to the Penny Pilot Program 

February 2, 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 February 

1, 2010, NYSE Amex LLC (the ‘‘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 self-regulatory 

organization. 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 identify the 

next 75 options classes to be added to 

the Penny Pilot Program for Options 

(‘‘Penny Pilot’’ or ‘‘Pilot’’) on November 

2, 2009 [sic].3 There are no changes to 

the Rule text. A copy of this filing is 

available on the Exchange’s Web site at 

http://www.nyse.com, at the Exchange’s 

principal office, at the Commission’s 

Public Reference Room and on the 

Commission’s Web site at http:// 

www.sec.gov. 


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