54616 Federal Register / Vol. 74, No. 203 / Thursday, October 22, 2009 / Notices 

13 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. 60613 

(September 2, 2009), 74 FR 46814. 

4 In approving this proposal, the Commission has 

considered the proposed rule’s impact on 

efficiency, competition and capital formation. See 

15 U.S.C. 78c(f). 

5 15 U.S.C. 78o–3(b)(6). 

6See e-mail from Racquel L. Russell, Assistant 

General Counsel, FINRA, to Mia Zur, Special 

Counsel, and Steve Varholik, Special Counsel, 

Division of Trading and Markets, Commission, 

October 13, 2009. 

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 35 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 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–2009–060 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–FINRA–2009–060. 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 available publicly. All 

submissions should refer to File 

Number SR–FINRA–2009–060 and 

should be submitted on or before 

November 12, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–25431 Filed 10–21–09; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60835; File No. SR–FINRA– 

2009–055] 

Self-Regulatory Organizations; 

Financial Industry Regulatory 

Authority, Inc.; Order Approving 

Proposed Rule Change To Adopt 

FINRA Rules 5210 (Publication of 

Transactions and Quotations) and 

5220 (Offers at Stated Prices) Into the 

Consolidated Rulebook 

October 16, 2009. 

On August 18, 2009, the Financial 

Industry Regulatory Authority, Inc. 

(‘‘FINRA’’) (f/k/a National Association 

of Securities Dealers, Inc. (‘‘NASD’’)) 

filed with the Securities and Exchange 

Commission (‘‘Commission’’), pursuant 

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

Exchange Act of 1934 (‘‘Act’’) 1 and Rule 

19b–4 thereunder,2 a proposed rule 

change to adopt NASD Rule 3310 

(Publication of Transactions and 

Quotations), NASD Rule 3320 (Offers at 

Stated Prices), IM–3310 (Manipulative 

and Deceptive Quotations) and IM–3320 

(firmness of Quotations) as FINRA rules 

in the consolidated FINRA rulebook 

without material changes. The proposed 

rule change would combine NASD Rule 

3310 and IM–3310 into FINRA Rule 

5210 and would combine NASD Rule 

3320 and IM–3320 into FINRA Rule 

5220 in the consolidated FINRA 

rulebook. The proposed rule change was 

published for comment in the Federal 

Register on September 11, 2009.3 The 

Commission received no comments on 

the proposal. This order approves the 

proposed rule change. 

The Commission finds that the 

proposed rule change is consistent with 

the requirements of the Act and the 

rules and regulations thereunder 

applicable to a national securities 

association.4 In particular, the 

Commission finds that the proposed 

rule change is consistent with the 

provisions of Section 15A(b)(6) of the 

Act,5 which requires, among other 

things, that FINRA rules 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. 

The Commission believes that the 

proposed rule change is designed to 

protect investors and promote the 

maintenance of fair, orderly and 

efficient markets by prohibiting a 

member from publishing a report of any 

transaction unless the member believes 

that it was a bona fide purchase or sale 

of the security and from ‘‘backing away’’ 

from its quotations. In approving the 

proposed rule change, the Commission 

notes that FINRA is adopting NASD 

Rule 3310 (Publication of Transactions 

and Quotations), NASD Rule 3320 

(Offers at Stated Prices), IM–3310 

(Manipulative and Deceptive 

Quotations) and IM–3320 (firmness of 

Quotations) as FINRA rules in the 

consolidated FINRA rulebook without 

material changes. The Commission also 

notes FINRA’s representation that it will 

remind its members of their obligation 

to have in place a supervisory system 

and written procedures reasonably 

designed to ensure the accuracy and 

integrity of information entered into 

order-routing execution systems, as 

further addressed in its Notice to 

Members 04–66, in a regulatory notice 

announcing the approval of the 

proposed rule change.6


dcolon on DSK2BSOYB1PROD with NOTICES
Federal Register / Vol. 74, No. 203 / Thursday, October 22, 2009 / Notices 54617 

7 15 U.S.C. 78s(b)(2). 

8 17 CFR 200.30–3(a)(12). 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4See Exchange Act Release No. 60711 (September 

23, 2009), 74 FR 49419 (September 28, 2009) (order 

approving SR–NYSEArca–2009–44). 

5 15 U.S.C. 78s(b)(3)(A)(iii). 

6 17 CFR 240.19b–4(f)(6). 

7 15 U.S.C. 78s(b)(3)(A). 

8 17 CFR 240.19b–4(f)(6)(iii). 

9 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6)(iii) requires the Exchange to give the 

Commission written notice of the Exchange’s intent 

to file the proposed rule change along with a brief 

description and the 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 pre-filing requirement. 

10 17 CFR 240.19b–4(f)(6)(iii). 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,7 that the 

proposed rule change (SR–FINRA– 

2009–055) be, and it hereby is, 

approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.8

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–25430 Filed 10–21–09; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60833; File No. SR– 

NYSEArca–2009–91] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Amending the Dates of 

the Quarterly Expansion of the Penny 

Pilot Program for Options 

October 16, 2009. 

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

Securities Exchange Act of 1934 (the 

‘‘Act’’) 2 and Rule 19b–4 thereunder,3

notice is hereby given that on October 

13, 2009, NYSE Arca, Inc. (‘‘NYSE 

Arca’’ or ‘‘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 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 amend the 

dates of the quarterly expansion of the 

Penny Pilot Program for Options 

(‘‘Penny Pilot’’ or ‘‘Pilot’’). 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 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 

NYSE Arca proposes to amend the 

dates of the quarterly expansion of the 

Pilot.4

The Exchange proposes to add 75 

issues to the Pilot on November 2, 2009; 

February 1, 2010; May 3, 2010; and 

August 2, 2010. The issues to be added 

on November 2, 2009 will be based on 

the most actively traded multiply listed 

issues for the six month period from 

April 1, 2009 through September 30, 

2009. The issues to be added on 

February 1, 2010 will be based on the 

most actively traded multiply listed 

issues for the six month period from 

July 1, 2009 through December 31, 2009. 

The issues to be added on May 3, 2010 

will be based on the most actively 

traded multiply listed issues for the six 

month period from October 1, 2009 

through March 31, 2010. The issues to 

be added on August 2, 2010 will be 

based on the most actively traded 

multiply listed issues for the six month 

period from January 1, 2010 through 

June 30, 2010. 

The purpose of the date adjustment 

for the Pilot is because of concerns 

raised by NYSE Arca Option Trading 

Permit (‘‘OTP’’) Holders and Firms. 

After the Exchange received approval to 

extend and expand the Pilot, many OTP 

Holders and Firms expressed concern 

that a date that did not correspond with 

the start of a calendar month would 

interfere with month end processing for 

billing and cost allocation purposes. 

2. Statutory Basis 

The Exchange believes the proposed 

rule change is consistent with and 

furthers the objectives of Section 6(b)(5) 

of the Act, in that it is designed to 

promote just and equitable principles of 

trade, remove impediments to and 

perfect the mechanisms of a free and 

open market and a national market 

system and, in general, to protect 

investors and the public interest. As 

described herein, the Exchange is 

simply revising the dates of the 

quarterly expansion of the Pilot, by one 

week, so as to avoid problems for OTP 

Holders and Firms regarding their 

month end processing. 

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 5 and Rule 

19b–4(f)(6) thereunder.6 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 7 and Rule 

19b–4(f)(6)(iii) thereunder.8

A proposed rule change filed under 

Rule 19b–4(f)(6) normally does not 

become operative prior to 30 days after 

the date of the filing.9 However, 

pursuant to Rule 19b4(f)(6)(iii),10 the 

Commission may designate a shorter 

time if such action is consistent with the 

protection of investors and the public 

interest. The Exchange has asked the 

Commission to waive the 30-day 

operative delay so that the proposal may 

become operative immediately upon 

filing. The Commission believes that 

waiving the 30-day operative delay is 

consistent with the protection of 


dcolon on DSK2BSOYB1PROD with NOTICES