33286 Federal Register / Vol. 74, No. 131 / Friday, July 10, 2009 / Notices 

13 15 U.S.C. 78s(b)(3)(A). 

14 17 CFR 240.19b–4(f)(6). 

15 In addition, Rule 19b–4(f)(6)(iii) requires the 

self-regulatory organization to give the Commission 

notice of its 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. NYSE has satisfied this requirement. 

16 17 CFR 240.19b–4(f)(6). 

17 17 CFR 240.19b–4(f)(6)(iii). 

18For purposes only of waiving the 30-day 

operative delay, the Commission has considered the 

proposed rule’s impact on efficiency, competition, 

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

19 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. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The proposed rule change has become 

effective pursuant to Section 19(b)(3)(A) 

of the Act 13 and Rule 19b–4(f)(6) 

thereunder 14 because the foregoing 

proposed rule: (1) Does not significantly 

affect the protection of investors or the 

public interest; (2) does not impose any 

significant burden on competition; and 

(3) does not become operative for 30 

days after the date of filing, or such 

shorter time as the Commission may 

designate if consistent with the 

protection of investors and the public 

interest.15

A proposed rule change filed 

pursuant to Rule 19b–4(f)(6) under the 

Act 16 normally does not become 

operative for 30 days after the date of its 

filing. However, Rule 19b–4(f)(6)(iii) 17

permits the Commission to designate a 

shorter time if such action is consistent 

with the protection of investors and the 

public interest. The NYSE has requested 

that the Commission waive the 30-day 

operative delay. The Commission 

believes that waiving the 30-day 

operative delay is consistent with the 

protection of investors and the public 

interest, because the proposed rule 

change restores the ability of market 

participants to submit, and Floor 

brokers to receive, orders containing 

non-regular way settlement instructions. 

Accordingly, the proposed rule change 

does not raise any novel or troubling 

issues. For this reason, the Commission 

designates the proposed rule change as 

operative upon filing.18

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–NYSE–2009–59 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–NYSE–2009–59. 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–NYSE– 

2009–59 and should be submitted on or 

before July 31, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.19

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. E9–16313 Filed 7–9–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60217; File No. SR– 

NYSEAMEX–2009–31] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change by NYSE 

Amex LLC Amending NYSE Amex 

Equities Rules To Allow Customers To 

Transmit Orders on the Exchange With 

Settlement Instructions of ‘‘Cash,’’ 

‘‘Next Day’’ and ‘‘Seller’s Option’’ 

Directly to a Floor Broker for Manual 

Execution 

July 1, 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 23, 

2009, NYSE Amex LLC (the ‘‘Exchange’’ 

or ‘‘NYSE Amex’’) 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 

several NYSE Amex Equities rules to 

allow customers to transmit orders for 

execution on the Exchange with the 

settlement instructions of ‘‘cash’’, ‘‘next 

day’’ and ‘‘seller’s option’’ directly to a 

Floor broker for manual execution. 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 


sroberts on DSKD5P82C1PROD with NOTICES
Federal Register / Vol. 74, No. 131 / Friday, July 10, 2009 / Notices 33287 

4See SR–NYSE–2009–59. 

5See Securities Exchange Act Release No. 58673 

(September 29, 2008), 73 FR 57707 (October 3, 

2008) (SR–NYSE–2008–60 and SR–Amex–2008–62) 

(approving the Merger). 

6NYSE Alternext US LLC was subsequently 

renamed NYSE Amex LLC. See Securities Exchange 

Act Release No. 59575 (March 13, 2009), 74 FR 

11803 (March 19, 2009) (SR–NYSEALTR–2009–24). 

7 15 U.S.C. 78f. 

8See Securities Exchange Act Release No. 58705 

(October 1, 2008), 73 FR 58995 (October 8, 2008) 

(SR–Amex 2008–63) (approving the Equities 

Relocation). 

9See Securities Exchange Act Release No. 58705 

(October 1, 2008), 73 FR 58995 (October 8, 2008) 

(SR–Amex 2008–63) (approving the Equities 

Relocation); Securities Exchange Act Release No. 

58833 (October 22, 2008), 73 FR 64642 (October 30, 

2008) (SR–NYSE–2008–106) and Securities 

Exchange Act Release No. 58839 (October 23, 2008), 

73 FR 64645 (October 30, 2008) (SR–NYSEALTR– 

2008–03) (together, approving the Bonds 

Relocation); Securities Exchange Act Release No. 

59022 (November 26, 2008), 73 FR 73683 

(December 3, 2008) (SR–NYSEALTR–2008–10) 

(adopting amendments to NYSE Alternext Equities 

Rules to track changes to corresponding NYSE 

Rules); Securities Exchange Act Release No. 59027 

(November 28, 2008), 73 FR 73681 (December 3, 

2008) (SR–NYSEALTR–2008–11) (adopting 

amendments to Rule 62—NYSE Alternext Equities 

to track changes to corresponding NYSE Rule 62). 

10See Securities and Exchange Act Release No. 

59561 (March 11, 2009), 74 FR 11393 (March 17, 

2009) (SR–NYSEALTR–2009–25). The Exchange 

notes that the implementation of the changes 

described in this filing continue to be made on a 

security by security basis and, to date, are not 

operative in every security traded on the Exchange. 

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 

The Exchange proposes to allow 

customers to transmit orders for 

execution on the Exchange with the 

settlement instructions of ‘‘cash’’, ‘‘next 

day’’ and ‘‘seller’s option’’ (collectively 

referred to herein as ‘‘non-regular way 

settlement’’) directly to a Floor broker 

for manual execution. Specifically, the 

Exchange seeks to adopt NYSE Amex 

Rule 14 (Non-Regular Way Settlement 

Instructions for Orders) to provide that 

orders with these types of settlement 

instructions may only be submitted 

directly to a Floor broker. In addition, 

the Exchange proposes to add references 

to NYSE Amex Rule 14 to several 

Exchange rules which relate in some 

way to these settlement instructions. 

The Exchange notes that parallel 

changes are proposed to be made to the 

rules of the New York Stock Exchange 

(‘‘NYSE’’).4

Background 

As described more fully in a related 

rule filing,5 NYSE Euronext acquired 

the Amex Membership Corporation 

(‘‘AMC’’) pursuant to an Agreement and 

Plan of Merger, dated January 17, 2008 

(the ‘‘Merger’’). In connection with the 

Merger, the Exchange’s predecessor, the 

American Stock Exchange LLC 

(‘‘Amex’’), a subsidiary of AMC, became 

a subsidiary of NYSE Euronext called 

NYSE Alternext US LLC,6 and continues 

to operate as a national securities 

exchange registered under Section 6 of 

the Securities Exchange Act of 1934 

[sic], as amended (the ‘‘Act’’).7 The 

effective date of the Merger was October 

1, 2008. 

In connection with the Merger, on 

December 1, 2008, the Exchange 

relocated all equities trading conducted 

on the Exchange legacy trading systems 

and facilities located at 86 Trinity Place, 

New York, New York, to trading systems 

and facilities located at 11 Wall Street, 

New York, New York (the ‘‘Equities 

Relocation’’). The Exchange’s equity 

trading systems and facilities at 11 Wall 

Street (the ‘‘NYSE Amex Trading 

Systems’’) are operated by the NYSE on 

behalf of the Exchange.8

As part of the Equities Relocation, 

NYSE Alternext adopted NYSE Rules 1– 

1004, subject to such changes as 

necessary to apply the Rules to the 

Exchange, as the NYSE Alternext 

Equities Rules to govern trading on the 

NYSE Alternext Trading Systems.9 The 

NYSE Alternext Equities Rules, which 

became operative on December 1, 2008, 

are substantially identical to the current 

NYSE Rules 1–1004 and the Exchange 

continues to update the NYSE Alternext 

Equities Rules, now renamed the NYSE 

Amex Equities Rules, as necessary to 

conform with rule changes to 

corresponding NYSE Rules filed by the 

NYSE. 

On March 13, 2009, the Exchange’s 

amended rule became operative to 

require that all orders submitted to the 

Exchange be submitted for regular way 

settlement (i.e., settlement on the third 

business day following trade date).10

Prior to that requirement, the Exchange 

allowed market participants to submit 

orders that contained non-regular way 

settlement instructions directly to the 

Exchange matching/execution engine 

(Display Book), or to a Floor broker for 

representation. Cash settlement 

instructions required delivery of the 

securities the same day as the 

transaction. Next day settlement 

instructions required delivery of the 

securities on the first business day 

following the transaction. Orders that 

had settlement instructions of seller’s 

option afforded the seller the right to 

deliver the security or bond at any time 

within a specified period, ranging from 

not less than two business days to not 

more than 180 days for stocks and not 

less than two business days and no 

more than sixty days for U.S. 

government securities. 

If an order containing non-regular 

way settlement instructions was sent to 

a Floor broker for representation, then 

the Floor broker was responsible for 

going to the post where the security 

traded to effect the execution of that 

order. However, Display Book 

electronically submitted orders that 

contained non-regular way settlement 

instructions were ineligible for 

immediate and automatic execution. 

Rather, the orders bypassed the Display 

Book, and were printed on paper at the 

Designated Market Makers’ (‘‘DMMs’’) 

post locations, along with other 

administrative messages. Thereafter, the 

orders containing non-regular way 

settlement instructions required the 

DMM and the trading assistant to realize 

that the document printed was in fact an 

order which in some instances caused 

delay in the execution of the order. The 

DMM was then responsible for the 

manual execution of the order. The 

manual intervention required by the 

DMM and trading assistant at the post 

location in the processing of orders 

containing non-regular way settlement 

instructions put the orders at the very 

real risk of ‘‘missing the market’’ as a 

result of the current speed of order 

execution in the Exchange market. 

In addition to the risk of ‘‘missing the 

market’’, orders containing non-regular 

way settlement instructions were 

generally infrequently used by market 

participants for much of the trading 

calendar. The Exchange therefore 

provided that only orders for regular 

way execution be submitted to the 

Exchange. 

Exchange customers, however, have 

expressed that certain trading strategies 

and/or the expiration of certain trading 

instrument (e.g. rights and warrants) 

require the ability to submit orders to 

the Exchange that contain instructions 

for execution with non-regular way 

settlement. To accommodate the needs 

of its customers, the Exchange proposes 

to allow orders containing non-regular 

way settlement instructions to be 

transmitted directly to a Floor broker for 

manual order handling. 


sroberts on DSKD5P82C1PROD with NOTICES
33288 Federal Register / Vol. 74, No. 131 / Friday, July 10, 2009 / Notices 

11The Exchange notes that as currently 

configured, the only Exchange system that will 

accept orders with non-regular way instructions is 

the Broker Booth Support System. Thus, these types 

of orders cannot be transmitted directly to a Floor 

broker’s hand-held device. In addition, odd-lot 

orders with non-regular way settlement instructions 

will not be accepted in BBSS and, therefore, will 

not be permitted. 

12On June 10, 2009 the Exchange implemented 

this proposal after submitting a draft of this filing 

to the Commission, but prior to formal submission 

and receipt of a waiver of the 30-day delayed 

operative date. 

13FESC stands for ‘‘Front End Systemic Capture’’. 

Under NYSE Amex Equities Rule 123 (Records of 

Orders) members and member organizations are 

required to enter the details of an order, including 

any modification or cancellation, into a system 

which electronically timestamps the time of entry 

prior to representing or executing that order on the 

Floor. 

14The Exchange notes that Floor brokers who 

accept customer orders with non-regular way 

settlement instructions will have the same best 

execution responsibilities in representing these 

orders as they would for regular way orders. 

15Currently, the Exchange does not trade U.S. 

Government securities. 

Proposed Floor Broker Handling of 

Cash, Next Day, Seller’s Option 

Settlement Instructions 

The Exchange’s commitment to 

provide its market participants with 

immediate and automatic execution in 

the most efficient manner requires the 

establishment of a separate order 

handling protocol for orders that 

contain non-regular way settlement 

instructions. Prior to the rule changes 

proposed in SR–NYSEALTR–2009–25, 

the required manual intervention by the 

DMMs and DMM trading assistants did 

not provide for efficient order handling 

protocol because it put the orders at the 

very real risk of ‘‘missing the market’’ as 

a result of the current speed of order 

execution in the Exchange market. 

However, the Exchange recognizes that 

that there may be a continuing need for 

the availability of orders with nonregular way settlement instructions in 

its marketplace. To that end, the 

Exchange has designed a method of 

entry for these orders that will involve 

minimal manual handling by DMMs. 

The Exchange therefore proposes to 

adopt NYSE Amex Equities Rule 14 

(‘‘Non-Regular Way Settlement 

Instructions for Orders’’) to allow 

customers to directly transmit an order 

containing instructions for cash, next 

day and seller’s option settlement as 

described above to a Floor broker for 

representation in the trading crowd.11

DMMs will not have order handling 

responsibility for these orders and 

Exchange systems that route orders to 

the Display Book will not accept orders 

containing non-regular way 

instructions. Routing orders to Floor 

brokers would then be the only 

acceptable way for orders with nonregular way settlement instructions to 

be transmitted to the Exchange.12

Proposed NYSE Amex Equities Rule 

14 will define the acceptable nonregular way settlement instructions 

valid on the Exchange. An order 

submitted with cash settlement 

instructions would require delivery of 

the securities on the same day as the 

trade date. Next day settlement 

instructions would require delivery of 

the securities on the first business day 

following the trade date. Orders that 

have settlement instructions of seller’s 

option would afford the seller the right 

to deliver the security or bond at any 

time within a specified period, ranging 

from not less than two business days to 

not more than sixty days for securities 

and not less than two business days and 

no more than sixty days for U.S. 

government securities. The Exchange 

modified from the previously effective 

version of this rule the maximum days 

from 180 to sixty days to reflect current 

industry practice for securities other 

than U.S. government securities. 

Further, pursuant to proposed NYSE 

Amex Equities Rule 14, a customer that 

requests the execution of an order 

pursuant to non-regular way settlement 

instructions of cash, next day or seller’s 

option must send the order directly to 

a Floor broker booth location on the 

Floor of the Exchange. A Floor broker 

that receives an order containing 

settlement instructions for cash, next 

day or seller’s option must enter the 

order into broker systems prior to 

representing the order in the trading 

crowd to comply with his or her FESC 

obligations.13 Thereafter, the Floor 

broker would be allowed to represent 

the order in the trading crowd.14

Executions by the Floor broker of order 

containing non-regular way settlement 

would be reported to the Consolidated 

Tape with cash, next day or seller’s 

option transaction indicators as 

appropriate. 

In addition, the Exchange proposes to 

amend NYSE Amex Equities Rules 64 

(Bonds, Rights and 100-Share-Unit 

Stocks), 66 (U.S. Government 

Securities),15 130 (Overnight 

Comparison of Exchange Transactions), 

to allow for non-regular way settlement 

as prescribed by proposed Rule 14. The 

Exchange further proposes to amend 

NYSE Amex Equities Rules 137 (Written 

Contracts) and 137A (Samples of 

Written Contracts) to include seller’s 

options in written contracts. In addition, 

the Exchange further proposes to 

reinstate reserved NYSE Amex Equities 

Rules 73, 177 and 179 to re-establish, 

‘‘Seller’s Option’’, ‘‘Delivery Time— 

‘Cash’ Contracts’’ and ‘‘Seller’s Option’’ 

in order to specify precedence and 

delivery times for transactions made 

pursuant to cash and seller’s option 

settlement instructions. The Exchange 

further proposes to amend NYSE Amex 

Equities Rule 189 (Unit of Delivery) to 

specify that the buyer shall not be 

required to accept a portion of a lot of 

securities contracted for before the 

seller’s option expiration date. NYSE 

Amex Equities Rules 235 (Ex-Dividends, 

Ex-Rights), 236 (Ex-Warrants), 257 

(Deliveries After ‘‘Ex’’ Date) and 282 

(Buy-In Procedures) to add specific 

provisions related to orders submitted 

with cash settlement instructions. NYSE 

Amex Equities Rules 241 (Added to 

Contract Price) to add specific 

provisions related to orders submitted 

with seller’s option settlement 

instructions. 

With respect to NYSE Amex Equities 

Rule 64, the Exchange proposes to add 

provisions that were previously a part of 

the Rule before the Exchange eliminated 

non-regular way settlement instructions 

under SR–NYSEALTR–2009–25. 

Specifically, the Exchange proposes to: 

(1) Add paragraph (a)(ii) to require that on 

the second and third business days preceding 

the final day for subscription, bids and offers 

in rights may only be made for next day 

settlement, and may only be made for cash 

settlement on the day preceding the final day 

for subscription; 

(2) Add paragraph (b) to require that all 

trades for other than regular way settlement 

that are more than .10 point away from the 

regular way bid or offer must be approved by 

a Floor Official, except that this will be 

expanded to .25 during the last trading week 

of the calendar year; and 

(3) Add paragraph (c) to require that while 

for seller’s option trades the settlement date 

is established in business days, they must be 

reported to the tape in calendar days. 

The Exchange believes these 

provisions are necessary to continue to 

regulate non-regular way trades, as they 

were before they were eliminated. 

The Exchange also proposes to add 

references to proposed NYSE Amex 

Equities Rule 14 and non-regular way 

settlement instructions to those rules 

that have provisions that implicate 

settlement instructions. Specifically, the 

Exchange proposes to add the reference 

to NYSE Amex Equities Rules 12 

(‘‘Business Day’’) and 123 (Record of 

Orders). 

Odd Lot Orders 

Proposed NYSE Amex Equities Rule 

14 will only permit non-regular way 

settlement instructions for round lot 

orders and orders that are comprised of 

a round lot and an odd lot, i.e., partial 

round lot orders (‘‘PRLs’’). Odd lot 

orders with non-regular way settlement 


sroberts on DSKD5P82C1PROD with NOTICES
Federal Register / Vol. 74, No. 131 / Friday, July 10, 2009 / Notices 33289 

16 15 U.S.C. 78f(b)(5). 

17 15 U.S.C. 78s(b)(3)(A). 

18 17 CFR 240.19b–4(f)(6). 

19 In addition, Rule 19b–4(f)(6)(iii) requires the 

self-regulatory organization to give the Commission 

notice of its 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. NYSE Amex has satisfied this 

requirement. 

20 17 CFR 240.19b–4(f)(6). 

21 17 CFR 240.19b–4(f)(6)(iii). 

22For purposes only of waiving the 30-day 

operative delay, the Commission has considered the 

proposed rule’s impact on efficiency, competition, 

and capital formation. 15 U.S.C. 78c(f). 23 17 CFR 200.30–3(a)(12). 

instructions will not be acceptable for 

execution on the Exchange. Exchange 

systems, order execution and post 

settlement processing will not support 

non-regular way settlement for odd lots. 

PRL orders submitted with non-regular 

way settlement instructions will be 

executed pursuant to the provisions of 

proposed NYSE Amex Equities Rule 

124.40 (ii). Proposed NYSE Amex 

Equities Rule 124.40 (ii) will require 

that the odd-lot portion of the PRL will 

be executed at the same price of the last 

round lot in the order to better facilitate 

the post settlement processing of these 

orders. 

The Exchange believes that the instant 

proposal will meet the needs of its 

customers to submit orders for nonregular way settlement in a manner that 

will provide effective representation for 

the customer in the Exchange’s current 

market. 

2. Statutory Basis 

The basis under the Securities 

Exchange Act of 1934 (the ‘‘Act’’) for 

this proposed rule change is the 

requirement under Section 6(b)(5) 16

that an exchange have rules that are 

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. The instant filing 

accomplishes these goals by restoring 

the ability of Exchange market 

participants to enter orders with other 

than ‘‘regular way’’ settlement 

instructions, and allow these orders to 

be represented at the point of sale in the 

Exchange’s auction market while 

reducing the risk of such orders missing 

the market. 

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 proposed rule change has become 

effective pursuant to Section 19(b)(3)(A) 

of the Act 17 and Rule 19b–4(f)(6) 

thereunder 18 because the foregoing 

proposed rule: (1) Does not significantly 

affect the protection of investors or the 

public interest; (2) does not impose any 

significant burden on competition; and 

(3) does not become operative for 30 

days after the date of filing, or such 

shorter time as the Commission may 

designate if consistent with the 

protection of investors and the public 

interest.19

A proposed rule change filed 

pursuant to Rule 19b–4(f)(6) under the 

Act 20 normally does not become 

operative for 30 days after the date of its 

filing. However, Rule 19b–4(f)(6)(iii) 21

permits the Commission to designate a 

shorter time if such action is consistent 

with the protection of investors and the 

public interest. The NYSE Amex has 

requested that the Commission waive 

the 30-day operative delay. The 

Commission believes that waiving the 

30-day operative delay is consistent 

with the protection of investors and the 

public interest, because the proposed 

rule change restores the ability of 

market participants to submit, and Floor 

brokers to receive, orders containing 

non-regular way settlement instructions. 

Accordingly, the proposed rule change 

does not raise any novel issues. For this 

reason, the Commission designates the 

proposed rule change as operative upon 

filing.22

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–2009–31 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–2009–31. 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–2009–31 and should be 

submitted on or before July 31, 2009. 


sroberts on DSKD5P82C1PROD with NOTICES
33290 Federal Register / Vol. 74, No. 131 / Friday, July 10, 2009 / Notices 

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

2 17 CFR 240.19b–4. 

3 17 CFR 240.19b–4(f)(6). 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.23

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. E9–16314 Filed 7–9–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60220; File No. SR– 

NASDAQ–2009–064] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

a Proposed Rule Change Relating to 

NASDAQ Options Market Options 

Participant Membership Requirements, 

Order Entry Times and Confirmation 

Statements 

July 1, 2009. 

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 June 26, 

2009, The NASDAQ Stock Market LLC 

(‘‘NASDAQ’’) 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 NASDAQ. NASDAQ has 

designated the proposed rule change as 

constituting a non-controversial rule 

change under Rule 19b–4(f)(6) under the 

Act,3 which renders the proposal 

effective upon filing with the 

Commission. 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 the Substance 

of the Proposed Rule Change 

NASDAQ proposes to make three 

noncontroversial amendments to the 

NASDAQ Options Market (‘‘NOM’’ or 

‘‘Exchange’’) rule. First, Chapter II, 

Section 2 would be amended to modify 

a requirement that NOM Options 

Participants at all times maintain 

membership in another options 

exchange. Second, Chapter VI, Sections 

1, 2, 7 and 9 would be amended to 

change the time of day at which NOM 

begins accepting orders. Third, Chapter 

XI, Section 11, would be amended to 

make clear that the rule does not require 

confirmation statements to contain the 

name of the option exchange or 

exchanges on which an option contract 

is executed. 

The text of the proposed rule change 

is below. Proposed new language is 

underlined and proposed deletions are 

in brackets. 

* * * * * 

Chapter II, Participation 

* * * * * 

Section 2, Requirements for Options 

Participation 

(a)–(e) No Change. 

(f) Every Options Participant shall at 

all times maintain membership in 

another registered options exchange that 

is not registered solely under Section 

6(g) of the Securities Exchange Act of 

1934, or in FINRA. Options Participants 

that transact business with customers 

shall at all times be members of the 

FINRA. 

(g)–(h) No Change. 

Commentary .01 No Change. 

Chapter VI, Trading Systems 

Section 1, Definitions 

The following definitions apply to 

Chapter VI for the trading of options 

listed on NOM. 

(a)–(f) No Change. 

(g) The term ‘‘Time in Force’’ shall 

mean the period of time that the System 

will hold an order for potential 

execution, and shall include: 

(1) ‘‘Expire Time’’ or ‘‘EXPR’’ shall 

mean, for orders so designated, that if 

after entry into the System, the order is 

not fully executed, the order (or the 

unexecuted portion thereof) shall 

remain available for potential display 

and/or execution for the amount of time 

specified by the entering Participant 

unless canceled by the entering party. 

EXPR Orders shall be available for entry 

from [9 a.m.] the time prior to market 

open specified by the Exchange on its 

website until market close Eastern Time 

and for execution from 9:30 a.m. until 

market close. 

(2) ‘‘Immediate or Cancel’’ or ‘‘IOC’’ 

shall mean for orders so designated, that 

if after entry into the System a 

marketable limit order (or unexecuted 

portion thereof) becomes nonmarketable, the order (or unexecuted 

portion thereof) shall be canceled and 

returned to the entering participant. IOC 

Orders shall be available for entry from 

[9 a.m.] the time prior to market open 

specified by the Exchange on its Web 

site until market close and for potential 

execution from 9:30 a.m. until market 

close. IOC Orders entered between [9 

a.m.] the time specified by the Exchange 

on its Web site and 9:30 a.m. Eastern 

Time will be held within the System 

until 9:30 a.m. at which time the System 

shall determine whether such orders are 

marketable. 

(3) ‘‘DAY’’ shall mean for orders so 

designated, that if after entry into the 

System, the order is not fully executed, 

the order (or unexecuted portion 

thereof) shall remain available for 

potential display and/or execution until 

market close, unless canceled by the 

entering party, after which it shall be 

returned to the entering party. DAY 

Orders shall be available for entry from 

[9 a.m.] the time prior to market open 

specified by the Exchange on its Web 

site until market close and for potential 

execution from 9:30 a.m. until market 

close. 

(4) ‘‘Good Til Cancelled’’ or ‘‘GTC’’ 

shall mean for orders so designated, that 

if after entry into System, the order is 

not fully executed, the order (or 

unexecuted portion thereof) shall 

remain available for potential display 

and/or execution unless cancelled by 

the entering party, or until the option 

expires, whichever comes first. GTC 

Orders shall be available for entry from 

[9 a.m.] the time prior to market open 

specified by the Exchange on its Web 

site until market close and for potential 

execution from 9:30 a.m. until market 

close. 

(5) No Change. 

(h) No Change. 

Chapter VI, Trading Systems 

* * * * * 

Section 2, Days and Hours of Business 

(a) The System operates and shall be 

available to accept bids and offers and 

orders from [9 a.m.] the time prior to 

market open specified by the Exchange 

on its Web site to market close on each 

business day, unless modified by NOM. 

Orders and bids and offers shall be open 

and available for execution as of 9:30 

a.m. Eastern Time and shall close as of 

4 p.m. Eastern Time except for option 

contracts on fund shares or broad-based 

indexes which will close as of 4:15 p.m. 

Eastern Time. 

(b)–(c) No Change. 

Chapter VI, Trading Systems 

* * * * * 

Section 7, Entry and Display Orders 

(a) Entry of Orders—Participants can 

enter orders into the System, subject to 

the following requirements and 

conditions: 

(1)–(2) No Change. 

(3) Orders can be entered into the 

System (or previously entered orders 

cancelled) from [9 a.m.] the time prior 

to market open specified by the 


sroberts on DSKD5P82C1PROD with NOTICES