Federal Register / Vol. 74, No. 120 / Wednesday, June 24, 2009 / Notices 30191 

4 15 U.S.C. 78s(b)(3)(A). 

5 17 CFR 240.19b–4(f)(2). 

6 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Exchange Act Release No. 59885 (May 7, 

2009); 74 FR 22788 (May 14, 2009). 

4See Rule 13802(c)(3). These specially qualified 

arbitrators are attorneys familiar with employment 

law who have at least ten years of legal experience. 

In addition, a chair or single arbitrator may not have 

represented primarily the views of employers or of 

employees within the last five years. Primarily 

means 50 percent or more of the arbitrator’s 

business or professional activities within the last 

five years. 

5The $100,000 threshold was chosen because 

FINRA recently raised the threshold for a single 

chair-qualified arbitrator in all cases to $100,000. 

Under the rule change, if the amount of a claim is 

more than $100,000, exclusive of interest and 

expenses, or is unspecified, or if the claim does not 

request money damages, the panel will consist of 

three arbitrators, unless the parties agree in writing 

to one arbitrator. See Exchange Act Release No. 

59340 (February 2, 2009), 74 FR 6335 (February 6, 

2009) (SR–FINRA–2008–047). 

6Rule 13800(d) (Simplified Arbitration— 

Discovery and Additional Evidence) provides for 

limited discovery in arbitrations involving $25,000 

or less, exclusive of interest and expenses. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing rule change is effective 

upon filing pursuant to Section 

19(b)(3)(A) 4 of the Act and 

subparagraph (f)(2) of Rule 19b–4 5

thereunder, because it establishes a due, 

fee, or other charge imposed by NYSE 

Amex. 

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: 

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–2009–25 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–2009–25. 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 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– 

NYSEAmex–2009–25 and should be 

submitted on or before July 15, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.6

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–14723 Filed 6–23–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60132; File No. SR–FINRA– 

2009–015] 

Self-Regulatory Organizations; 

Financial Industry Regulatory 

Authority, Inc.; Order Approving 

Proposed Rule Change Relating to 

Expedited Administration of 

Promissory Note Cases 

June 17, 2009. 

On April 7, 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 (‘‘SEC’’ or ‘‘Commission’’), 

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

Securities Exchange Act of 1934 

(‘‘Exchange Act’’ or ‘‘Act’’) 1 and Rule 

19b–4 thereunder,2 a proposed rule 

change to the Code of Arbitration 

Procedure for Industry Disputes 

(‘‘Industry Code’’). The proposed rule 

change was published for comment in 

the Federal Register on May 14, 2009.3

The Commission received no comments 

on the proposed rule change. 

I. Description of the Proposal 

FINRA proposed to adopt Rule 13806 

of the Code of Arbitration Procedure for 

Industry Disputes (‘‘Industry Code’’), to 

establish procedures to expedite the 

administration of arbitrations in which 

a member’s only claim is that an 

associated person failed to pay money 

owed on a promissory note; and to 

amend Rules 13214 and 13600 of the 

Industry Code to make conforming 

changes. 

In order to proceed under proposed 

new Rule 13806, a claimant would not 

be permitted to include any additional 

allegations in the Statement of Claim. 

FINRA stated that, in the absence of 

additional allegations by members or 

associated persons, promissory note 

cases involve straightforward contracts 

with few documents being entered into 

evidence. The new procedures would 

streamline the process for promissory 

note cases and reduce expenses for the 

parties while maintaining the 

procedural safeguards in the Industry 

Code for the associated person against 

whom a member asserts a claim. 

Specifically, under the proposed 

procedures: 

• Parties would choose a single 

public arbitrator from the roster of 

arbitrators approved to hear statutory 

discrimination claims,4 unless an 

associated person files a counterclaim or 

third party claim of more than $100,000, 

exclusive of interest or expenses, or the 

counterclaim or third party claim is 

unspecified or does not request money 

damages.5 In FINRA’s view, the 

arbitrators on this roster would be 

especially suited to resolve these 

disputes because of the depth of their 

experience and their familiarity with 

employment law; 

• If the associated person does not 

file an answer, simplified discovery 

procedures would apply 6 and, 

regardless of the amount in controversy, 

the single arbitrator would render an 

award based on the pleadings and other 

materials submitted by the parties. The 

arbitrator would be paid an honorarium 

30192 Federal Register / Vol. 74, No. 120 / Wednesday, June 24, 2009 / Notices 

7 In simplified arbitration proceedings 

administered under Rules 12800 and 13800 

(Simplified Arbitration), the arbitrator honorarium 

is $125. The honorarium under proposed Rule 

13806 is intended to be consistent with these rules. 

8The 13500 series of rules would provide for 

prehearing procedures and discovery in these cases. 

9Rule 13100(k) defines the term ‘‘Director’’ to 

mean the ‘‘Director of FINRA Dispute Resolution. 

Unless the Code provides that the Director may not 

delegate a specific function, the term includes 

FINRA staff to whom the Director has delegated 

authority.’’ 

10The rationale for the proposed rule change was 

confirmed in a phone conversation with Margo 

Hassan and Ken Andrichik of FINRA, on May 6, 

2009. 

11 In approving the proposed rule change, the 

Commission has considered the rule change’s 

impact on efficiency, competition, and capital 

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

12 15 U.S.C. 78o–3(b)(6). 

13 15 U.S.C. 78s(b)(2). 

14 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. 

of $125 for each arbitration resolved in 

this manner; 7

• If the associated person files an 

answer (but does not seek any 

additional relief or assert any 

counterclaims or third party claims), 

regular discovery procedures would 

apply 8 and, regardless of the amount in 

controversy, the single arbitrator would 

hold a hearing; and 

• If the associated person files a 

counterclaim or third party claim, then 

regular discovery procedures would 

apply and panel composition would be 

based on the amount of the 

counterclaim or third party claim. If the 

counterclaim and/or third party claim is 

not more than $100,000, exclusive of 

interest and expenses, the Director 9

would appoint a single public arbitrator 

from the roster of arbitrators approved 

to hear statutory discrimination claims. 

If the counterclaim and/or third party 

claim is more than $100,000, exclusive 

of interest and expenses, then the 

Director would appoint a threearbitrator panel. The Director would 

appoint one public arbitrator from the 

roster of arbitrators approved to hear 

statutory discrimination claims who 

would serve as chairperson, one 

arbitrator from the public roster, and 

one arbitrator from the non-public 

roster. If the counterclaim or third party 

claim is filed after a single arbitrator is 

appointed, and a three-arbitrator panel 

is required, the Director would retain 

the appointed arbitrator as chair and 

appoint two additional arbitrators (one 

public and one non-public arbitrator). 

Regardless of whether the panel is 

composed of one or three arbitrators, 

FINRA would pay the arbitrators the 

honoraria provided for in the Industry 

Code for arbitrations resolved by a 

hearing. 

FINRA has proposed to amend Rule 

13214 (Payment of Arbitrators) to reflect 

that the rule applies to arbitrator 

honoraria except as specified in new 

Rule 13806(f) or as specifically excluded 

in Rule 13214. Under the proposal, 

FINRA would pay an arbitrator an 

honorarium of $125 for each arbitration 

in which the associated person does not 

file an answer and the award is based 

on the arbitrator’s review of the 

pleadings and other materials submitted 

by the parties. As these are expedited 

proceedings, FINRA would not pay an 

honorarium for resolving a discoveryrelated motion without a hearing 

session or for resolving a contested 

motion concerning issuance of a 

subpoena without a hearing session. In 

instances where full discovery would be 

conducted under the 13500 series of 

rules, FINRA would pay the honorarium 

prescribed in Rule 13214 for discoveryrelated motions without a hearing 

session and for contested motions 

concerning issuance of a subpoena 

without a hearing session. 

FINRA, in addition, proposed to 

amend Rule 13600 (Required Hearings) 

to reflect that a hearing will be held 

unless new Rule 13806(e)(1) provides 

otherwise. Under the proposal, if the 

associated person does not file an 

answer, no initial prehearing conference 

or hearing would be held. Generally, in 

the absence of additional allegations by 

members or associated persons, 

promissory note cases involve 

straightforward contracts with few 

documents entered into evidence. 

FINRA believes that, in these situations, 

promissory note cases would be 

processed more quickly and efficiently 

and expenses would be reduced for the 

parties and the forum if the arbitrator 

were to render the award on the 

pleadings and other materials submitted 

by the parties.10 In FINRA’s view, the 

new procedures would not negatively 

impact its administration of other cases 

filed in the forum. 

II. Discussion 

After careful review, 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.11 In particular, 

the Commission finds that the proposed 

rule change is consistent with Section 

15A(b)(6) of the Act,12 in that it is 

designed, among other things, to 

prevent fraudulent and manipulative 

acts and practices; 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. 

The Commission believes that the 

proposed rule change will protect the 

public interest by helping to ensure that 

promissory note cases are processed 

quickly and efficiently, and by helping 

to reduce expenses for the parties and 

the forum without adversely affecting 

the administration of other cases filed 

with the forum. 

III. Conclusion 

For the foregoing reasons, the 

Commission finds that the proposed 

rule change is consistent with the Act 

and the rules and regulations 

thereunder applicable to a national 

securities association. 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,13 that the 

proposed rule change (SR–FINRA– 

2007–015) be and hereby is approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.14

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–14726 Filed 6–23–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60123; File No. SR– 

NYSEAmex–2009–28] 

Self-Regulatory Organizations; NYSE 

Amex LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Make Available 

Without Charge the NYSE Amex 

OpenBookTM Datafeeds 

June 17, 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 June 12, 

2009, 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 self-regulatory organization. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons.