Federal Register / Vol. 74, No. 104 / Tuesday, June 2, 2009 / Notices 26451 

22See NYSE Order, supra note 4. 23Telephone conversation between Clare F. 

Saperstein, Managing Director, NYSE Regulation, 

Inc., and Nancy J. Burke-Sanow, Assistant Director, 

Division of Trading and Markets, Commission, May 

21, 2009. 

24 15 U.S.C. 78f. 

25 15 U.S.C. 78s(b)(2). 

26 15 U.S.C. 78s(b)(2). 

27 17 CFR 200.30–3(a)(12). 

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

2 15 U.S.C. 78a et seq. 

3 17 CFR 240.19b–4. 

4The Exchange and Commission staff agreed to 

several clarifying changes in text of Items I, II, and 

III during a telephone conversation between 

Andrew Stevens, Chief Counsel U.S. Equities and 

Derivatives, Exchange, and Darren Vieira, Attorney 

Advisor, Division of Trading and Markets, 

Commission on May 21, 2008. 

5The proposed filing is being done pursuant to 

an industry-wide initiative under the auspices of 

the Options Self-Regulatory Council (‘‘OSRC’’), 

which is a committee comprised of representatives 

from each of the options exchanges functioning 

pursuant to the OSRC Plan (the ‘‘Plan’’). See 

Securities Exchange Act Release No. 20158 

(September 8, 1983), 48 FR 41256 (September 14, 

1983). The Plan is not a National Market System 

(‘‘NMS’’) plan under Section 11A of the Act, but 

rather is a plan to allocate regulatory 

responsibilities under Rule 17d–2 under the Act. 17 

CFR 240.17d–2. As a result of the introduction of 

multiply listed options and the introduction of the 

Plan for the Purpose of Creating and Operating an 

Intermarket Options Market Linkage (‘‘Options 

Linkage Plan’’), the contracts in a customer options 

order could be executed on more than one options 

Continued 

recommendations, and private sales; (3) 

excessive trading by members, excessive 

trading in discretionary accounts, 

successive transactions by members, 

manipulative operations, reopening 

contracts, and loans for accounts of nonmembers; (4) disciplinary proceedings 

concerning conduct that is inconsistent 

with just and equitable principles of 

trade; (5) reporting of certain 

information concerning short sales and 

proprietary transactions; (6) reporting 

and certification of member or member 

organization’s supervision and 

compliance efforts; (7) formation and 

approval or merger organizations; (8) 

reporting of short positions; (9) 

notification requirements for listed 

securities; and (10) disclosure and 

monitoring of non-managed fee based 

accounts. In place of the deleted rules 

and interpretations, NYSE Amex 

proposes to adopt rules that conform the 

NYSE Amex Equities Rules with 

changes made to the corresponding 

NYSE Rules on which they are based.22

The Commission believes that the 

proposed rule change, as amended, is 

appropriate and would provide greater 

harmonization among NYSE Rules, 

NYSE Amex Equities Rules and FINRA 

Rules, thereby resulting in less 

burdensome and more efficient 

regulatory compliance for their common 

members and member organizations. 

With respect to the Exchange’s proposal 

to delete NYSE Amex Equities Rule 350 

and to adopt NYSE Amex Equities Rule 

3220, (relating to influencing or 

rewarding employees of others), the 

Commission notes that NYSE Amex has 

stated that, immediately upon 

Commission approval of new NYSE 

Amex Equities Rule 3220, it will issue 

an Information Memorandum to its 

members and member organizations 

including NYSE Amex-only members 

and those members registered with 

FINRA, clarifying that FINRA’s 

interpretive guidance related to FINRA 

Rule 3220 is considered part of NYSE 

Amex Equities Rule 3220, and that such 

members and member organizations are 

required to regulate their conduct 

according to Rule 3220 and the 

interpretive guidance related to FINRA 

Rule 3220.23 Accordingly, the 

Commission believes that the proposed 

rule change, as amended, is consistent 

with the requirements of the Act. 

The Commission also finds good 

cause for approving the proposed rule 

change as modified by Amendment No. 

2 prior to the thirtieth day after the date 

of publication of notice in the Federal 

Register. Amendment No. 2 simply 

clarifies certain points relating to 

proposed changes to NYSE Amex 

Equities Rules. Because Amendment 

No. 2 does not significantly alter the 

proposed rule change, which was 

subject to a full notice and comment 

period, the Commission finds that it is 

in the public interest to approve the 

proposed rule change, as modified by 

Amendment No. 2, without delay to 

expedite implementation. Accordingly, 

the Commission finds that there is good 

cause, consistent with and in 

furtherance of the objectives of Sections 

6 24 and 19(b)(2) 25 of the Exchange Act, 

to approve Amendment No. 2 on an 

accelerated basis. 

V. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,26 that the 

proposed rule change (SR–NYSEALTR– 

2009–26) be, and it hereby is, approved 

on an accelerated basis. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.27

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–12714 Filed 6–1–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–59978; File No. SR– 

NYSEArca–2009–41] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Amend Exchange 

Rules Related to Doing a Public 

Business in Options 

May 27, 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 May 7, 

2009, NYSE Arca, Inc. (‘‘NYSE Arca’’ 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 

substantially prepared by the 

Exchange.4 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 

Exchange Rule 9.18—Doing a Public 

Business in Options. The text of the 

proposed rule change 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 

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. 

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 Exchange Rule 

9.18(f) to provide that the market on 

which an options transaction is 

executed need not be disclosed on a 

written confirmation furnished to a 

customer of an Options Trading Permit 

Holder (‘‘OTP Holder’’) or Options 

Trading Permit Firm (‘‘OTP Firm’’).5

26452 Federal Register / Vol. 74, No. 104 / Tuesday, June 2, 2009 / Notices 

exchange, and the significance of the options 

exchange, or exchanges, that execute a particular 

options transaction has diminished significantly. 

See Securities Exchange Act Release No. 43086 

(July 28, 2000), 65 FR 48023 (August 4, 2000). 

Furthermore, the OSRC believes that in light of best 

execution and disclosure requirements, the 

usefulness of including on an options confirmation 

the name of the options exchange, or exchanges, on 

which the options transaction was effected does not 

outweigh the operational difficulties of capturing 

the information given the multiple trading of 

options and the application of the Options Linkage 

Plan industry wide. 

6See Securities Exchange Act Release No. 58814 

(October 20, 2008), 73 FR 63527 (October 24, 2008) 

(approval order); Securities Exchange Act Release 

No. 58932 (November 12, 2008), 73 FR 69696 

(November 19, 2008) (approval order); Securities 

Exchange Act Release No. 58980 (November 19, 

2008), 73 FR 72091 (November 26, 2008) (approval 

order); Securities Exchange Act Release No. 59166 

(December 29, 2008), 74 FR 328 (January 5, 2009) 

(approval order); Securities Exchange Act Release 

No. 59434 (February 23, 2009), 74 FR 9012 

(February 27, 2009) (approval order); and Securities 

Exchange Act Release No. 59806 (April 21, 2009), 

74 FR 19254 (April 28, 2009) (approval order). 

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

8 15 U.S.C. 78f(b)(5). 

9 15 U.S.C. 78s(b)(3)(A)(iii). 

10 17 CFR 240.19b–4(f)(6). 

11 15 U.S.C. 78s(b)(3)(A). 

12 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 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 the pre-filing requirement. 

13 17 CFR 240.19b–4(f)(6). 

14 17 CFR 240.19b–4(f)(6)(iii). 

15For purposes only of waiving the operative date 

of the proposal, the Commission has considered the 

proposed Rule’s impact on efficiency, competition 

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

Pursuant to proposed Rule 9.18(f), the 

OTP Holders and OTP Firms would 

continue to be required to furnish a 

written confirmation that contains a 

description of each transaction in the 

option contracts which shows: The type 

of option; the underlying security (e.g., 

stock or exchange traded fund); the 

expiration month; the exercise price; the 

number of option contracts; the 

premium and commissions; the 

transaction and settlement dates; 

whether the transaction was a purchase 

or a sale (writing) transaction; and 

whether the transaction was effected on 

a principal or agency basis. 

The Exchange believes that with the 

expansion of multi-listing of options 

and the introduction of new options 

exchanges, it has become operationally 

inefficient to require the disclosure of 

the market center on which an order 

was executed on the confirmation. As 

an example, a customer may have a 

single option order containing 

numerous option contracts executed on 

multiple exchanges. As such, it would 

be inefficient for the executing firm to 

be required to identify the exchange 

symbol for each contract executed on 

that customer’s order. This proposal 

would clarify that written confirmations 

furnished to a customer will not need to 

specify the exchange or exchanges on 

which such option contracts were 

executed. 

This proposal is similar to rule change 

proposals that have been filed by the 

American Stock Exchange LLC, the 

Financial Industry Regulatory 

Authority, Inc., the Chicago Board 

Options Exchange, the NASDAQ OMX 

PHLX, Inc., the Boston Stock Exchange, 

Inc., and the International Securities 

Exchange, LLC and approved by the 

Commission.6

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the requirements of Section 6(b) of the 

Act 7 in general, and furthers the 

objectives of Section 6(b)(5) of the Act 8

in particular, because it is designed to 

prevent fraudulent and manipulative 

acts and practices, to promote just and 

equitable principles of trade, and to 

protect investors and the public interest, 

and that it is designed to foster 

cooperation and coordination with 

persons engaged in regulating, clearing, 

settling, and processing information 

with respect to, and facilitating 

transactions in, securities, 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. 

Additionally, this proposed rule 

change would promote consistency 

between NYSE Arca and other selfregulatory organization rules and clarify 

the Exchange’s options confirmation 

procedure rules to better reflect the 

realities of the modern options market. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The proposed rule change does not 

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 

Written comments were neither 

solicited nor received. 

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 9 and Rule 

19b–4(f)(6) thereunder.10 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 11 and Rule 19b–4(f)(6)(iii) 

thereunder.12

A proposed rule change filed under 

Rule 19b–4(f)(6) 13 normally does not 

become operative prior to 30 days after 

the date of the filing. However, pursuant 

to Rule 19b–4(f)(6)(iii),14 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. Because the proposed rule change 

is based on rule changes previously 

approved by the Commission and the 

proposed rule change does not present 

any novel issues, the Commission 

believes that waiving the 30-day 

operative delay period to permit the 

proposed rule change to be 

implemented immediately is consistent 

with the protection of investors and the 

public interest. The proposed rule will 

promote consistency between the rules 

of the NYSE Arca and other selfregulatory organizations. Thus, the 

Commission, consistent with the 

protection of investors and the public 

interest, has determined to waive the 

30-day operative delay so that the 

proposal may become operative 

immediately upon filing.15

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: 

Federal Register / Vol. 74, No. 104 / Tuesday, June 2, 2009 / Notices 26453 

16 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). 

4As set forth in the Explanatory Endnotes to the 

Fee Schedule, prior to implementation of the 

instant rule change, ‘‘Liquidity Adding ADV’’ 

means, with respect to an ETP Holder, ‘‘the number 

of shares such ETP Holder has executed as a 

liquidity provider on average per trading day 

(excluding partial trading days and securities under 

one dollar) across all tapes on NSX for the calendar 

month (or partial month, as applicable) in which 

the executions occurred’’. The proposed rule 

change would modify the foregoing definition by 

adding the following statement: ‘‘Notwithstanding 

the foregoing, for purposes of determining whether 

the volume tier thresholds are achieved in AutoEx 

with respect to rebates applicable to displayed 

orders that add liquidity for Tape A and C 

securities, securities priced under one dollar will be 

included’’. 

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 

No. SR–NYSEArca–2009–41 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. 

All submissions should refer to File 

Number SR–NYSEArca–2009–41. 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 20549–1090 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 

NYSE Arca’s principal office and on its 

Internet Web site at http:// 

www.nyse.com. 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– 

NYSEArca–2009–41 and should be 

submitted on or before June 23, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.16

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–12715 Filed 6–1–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–59974; File No. SR–NSX– 

2009–03] 

Self-Regulatory Organizations; 

National Stock Exchange, Inc.; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change To Amend 

the Fee and Rebate Schedule Issued 

Pursuant to Exchange Rule 16.1(c) in 

Order to Include Securities Priced at 

Less Than One Dollar in the 

Calculation of Volume Thresholds 

Used To Determine Rebates Payable 

for Displayed Order Liquidity Adding 

Tape A and C Securities Executed at 

One Dollar or Above 

May 26, 2009. 

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 May 15, 

2009, National Stock Exchange, Inc. 

(‘‘NSX’’ 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. 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 

The Exchange is proposing to amend 

the Fee and Rebate Schedule (the ‘‘Fee 

Schedule’’) issued pursuant to Exchange 

Rule 16.1(c) in order to include 

securities priced at less than one dollar 

in the calculation of volume thresholds 

used to determine rebates payable for 

displayed order liquidity adding Tape A 

and C securities executed at one dollar 

or above. 

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 

Purpose 

With this rule change, the Exchange is 

proposing to modify the Fee Schedule’s 

calculation of ‘‘Liquidity Adding 

Average Daily Volume’’ (‘‘Liquidity 

Adding ADV’’) used to determine 

rebates payable for displayed orders of 

Tape A and C securities in the 

Automatic Execution Mode of order 

interaction (‘‘AutoEx’’) 3 (the ‘‘AutoEx 

Displayed Order Liquidity Adding Tape 

A/C Rebate’’) so as to include securities 

priced under one dollar for purposes of 

determining whether a volume tier has 

been achieved. 

The AutoEx Displayed Order 

Liquidity Adding Tape A/C Rebate is 

currently $0.0026, $0.0027 or $0.0028 

per share where an ETP Holder achieves 

Liquidity Adding ADV 4 of less than 25 

million, less than 40 million and 40 

million or more, respectively. Currently, 

securities priced under one dollar are 

excluded from the calculation of 

‘‘Liquidity Adding ADV’’. The Proposed 

Rule Change would modify the 

definition of ‘‘Liquidity Adding ADV’’ 

with respect only to the tiers used in 

calculation of the AutoEx Displayed 

Order Liquidity Adding Tape A/C 

Rebate so as to include securities under 

one dollar in the calculation of whether 

the above referenced tiers are achieved. 

The Proposed Rule Change would not 

modify other calculations of average 

daily volume in the Fee Schedule. 

Rationale 

The Exchange has determined that 

these changes are necessary to increase 

the volume of Displayed Orders of subdollar Tape A and C securities in