Federal Register / Vol. 74, No. 133 / Tuesday, July 14, 2009 / Notices 34067 

14See Securities Exchange Act Release No. 58680, 

supra note 4. 

15See id. 

16 15 U.S.C. 78s(b)(2). 

17 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. 60055 

(June 5, 2009), 74 FR 28299 (‘‘Notice’’). 

4A d-Quote is an e-Quote for which a Floor 

Broker enters discretionary instructions as to size 

and/or price. See NYSE Amex Equities Rule 

70.25(a)(i). An e-Quote is a broker agency interest 

file that a Floor broker places within the Display 

Book system. See NYSE Amex Equities Rule 

70(a)(i). 

5See Securities Exchange Act Release No. 60045 

(June 4, 2009), 74 FR 27854 (June 11, 2009) (SR– 

NYSE–2009–55). 

6See Notice at 28300. The Exchange noted that 

the CAP functionality that was historically available 

to Floor brokers was similar to the NYSE CAP 

functionality. See id. at n.10. The Exchange states 

that it eliminated this functionality in connection 

with the implementation of Regulation NMS. Id. 

7See Notice at 28300. 

8 Id. at 28301. 

9 Id. See also NYSE Amex Equities Rule 13 

(Definitions of Orders); NYSE Rule 13 (same). 

10 In approving this proposed rule change, the 

Commission has considered the proposed rule’s 

impact on efficiency, competition, and capital 

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

11 15 U.S.C. 78f(b)(5). 

12 15 U.S.C. 78s(b)(2). 

Arca, which are designed to address 

conflicts of interest concerns identified 

by the Commission in connection with 

inbound routing of orders to an 

exchange when the routing brokerdealer is an affiliate of the exchange, 

will continue to apply and were 

previously approved by the 

Commission.14 The Commission also 

notes that no comments were received 

in connection with SR–NYSE–2008– 

76.15 Accordingly, the Commission 

finds good cause, consistent with 

Section 19(b)(2) of the Act,16 to approve 

the proposed rule change on an 

accelerated basis for a pilot period 

expiring September 29, 2009. 

V. Conclusion 

It is therefore ordered, pursuant to 

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

proposed rule change (SR–NYSE–2009– 

58) is hereby approved on an 

accelerated basis for a pilot period to 

expire on September 29, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.17

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. E9–16548 Filed 7–13–09; 8:45 am] 

BILLING CODE 8010–01–P 17 CFR 200.30–3(a)(12). 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60252; File No. SR– 

NYSEAmes–2009–24] 

Self-Regulatory Organizations; NYSE 

Amex LLC; Order Granting Accelerated 

Approval to a Proposed Rule Change 

Amending Rule 70.25 To Permit All 

Available Contra-Side Liquidity To 

Trigger the Execution of a d-Quote 

July 7, 2009. 

On June 4, 2009, NYSE Amex LLC 

(‘‘NYSE Amex’’ or the ‘‘Exchange’’) 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 amend NYSE Amex Equities 

Rule 70.25 to permit all available 

contra-side liquidity to trigger the 

execution of a d-Quote. The proposed 

rule change was published for comment 

in the Federal Register on June 15, 

2009.3 The Commission received no 

comments regarding the proposal. This 

order approves the proposed rule 

change on an accelerated basis. 

The Exchange proposes to amend 

Rule 70.25 to expand the categories of 

liquidity that would be considered 

when determining whether the contraside volume is within the discretionary 

size range of the d-Quote.4 Currently, 

only displayed interest is considered by 

Exchange systems in determining 

whether the d-Quote is triggered. Under 

the proposed rule change, all available 

contra-side interest at a possible 

execution price of the d-Quote, 

including undisplayed liquidity, would 

be considered. This rule change will 

conform Rule 70.25 to the 

corresponding rule of the New York 

Stock Exchange LLC (‘‘NYSE’’) that 

governs the execution of NYSE Floor 

broker interest.5

In its filing, the Exchange stated that 

this rule change would provide Floor 

brokers with a similar functionality that 

was previously available to Floor 

brokers with convert-and-parity 

(‘‘CAP’’) orders, and that was also 

previously available to NYSE Floor 

brokers with CAP–DI orders under 

former NYSE Rule 123A.30(a).6 Under 

that former rule, an elected CAP–DI 

order would automatically execute 

against any contra-side volume available 

at the electing price, and was eligible to 

participate in a sweep.7At the time the 

CAP order was eliminated, the NYSE 

did not have the technology to replicate 

a similar functionality with d-Quotes.8

Since that time, both the Exchange and 

the NYSE have introduced two new 

order types, the Minimum Display 

Reserve Order, and the Non-Displayed 

Reserve Order.9 With the proposed rule 

change, these two order types would be 

considered when determining whether 

there is sufficient contra-side volume to 

trigger a d-Quote. 

The Commission has carefully 

reviewed the proposed rule change and 

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 exchange 10 including, in 

particular, Section 6(b)(5) of the Act,11

which requires that an exchange have 

rules 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, protect investors and the public 

interest. 

Because it would provide a d-Quote 

with access to both displayed and 

undisplayed liquidity, the proposed rule 

change benefits Floor brokers by 

allowing their d-Quotes to be triggered 

more often. This proposal should also 

benefit customers by providing them 

with more opportunities to have their 

non-displayed reserve orders receive 

executions. 

The Commission also finds good 

cause to approve the proposed rule 

change prior to the thirtieth day after 

publication in the Federal Register. The 

Commission notes that no comments 

were received during the 21-day 

comment period. The purpose of this 

proposed rule change is to conform Rule 

70.25 to the NYSE rule that governs the 

execution of floor broker interest. In that 

respect, the Commission believes that 

the Exchange has provided reasonable 

support for its representation that the 

proposed rule change provides Floor 

brokers with a functionality similar to 

that previously available with CAP 

orders, and to the functionality that was 

previously available to NYSE Floor 

brokers with CAP–DI orders. In 

addition, the potential benefits of this 

proposal to customers, such as the 

increased opportunities for the 

execution of customer non-displayed 

reserve orders, would be available 

sooner by approving this proposed rule 

change on an accelerated basis. 

Therefore, the Commission finds good 

cause, consistent with Section 19(b)(2) 

of the Act,12 to approve the proposed 

rule change on an accelerated basis. 

It is therefore ordered, pursuant to 

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

proposed rule change (SR–NYSEAmes– 

2009–24) be, and it hereby is, approved 

on an accelerated basis. 

mstockstill on DSKH9S0YB1PROD with NOTICES

34068 Federal Register / Vol. 74, No. 133 / Tuesday, July 14, 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. 60045 

(June 4, 2009), 74 FR 27854 (‘‘Notice’’). 

4A d-Quote is an e-Quote for which a Floor 

Broker enters discretionary instructions as to size 

and/or price. See NYSE Rule 70.25(a)(i). An e-Quote 

is a broker agency interest file that a Floor broker 

places within the Display Book system. See NYSE 

Rule 70(a)(i). 

5See Notice at 27855. 

6 Id. 

7 Id. 

8 Id. See also NYSE Rule 13 (Definitions of 

Orders). 

9 In approving this proposed rule change, the 

Commission has considered the proposed rule’s 

impact on efficiency, competition, and capital 

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

10 15 U.S.C. 78f(b)(5). 

11U.S.C. 78s(b)(2). 

12 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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

4 17 CFR 240.19b–4(f)(6). 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. E9–16545 Filed 7–13–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60251; File No. SR–NYSE– 

2009–55] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Order 

Granting Accelerated Approval to a 

Proposed Rule Change Amending Rule 

70.25 To Permit All Available ContraSide Liquidity To Trigger the Execution 

of a d-Quote 

July 7, 2009. 

On June 2, 2009, New York Stock 

Exchange LLC (‘‘NYSE’’ or the 

‘‘Exchange’’) 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 

amend Rule 70.25 to permit all available 

contra-side liquidity to trigger the 

execution of a d-Quote. The proposed 

rule change was published for comment 

in the Federal Register on June 11, 

2009.3 The Commission received no 

comments regarding the proposal. This 

order approves the proposed rule 

change on an accelerated basis. 

The Exchange proposes to amend 

Rule 70.25 to expand the categories of 

liquidity that would be considered 

when determining whether the contraside volume is within the discretionary 

size range of the d-Quote.4 Currently, 

only displayed interest is considered by 

Exchange systems in determining 

whether the d-Quote is triggered. Under 

the proposed rule change, all available 

contra-side interest at a possible 

execution price of the d-Quote, 

including undisplayed liquidity, would 

be considered. 

In its filing, the Exchange stated that 

this rule change would provide Floor 

brokers with a similar functionality that 

was previously available to Floor 

brokers with a CAP–DI order under 

former Rule 123A.30(a).5 Under that 

former rule, an elected CAP–DI order 

would automatically execute against 

any contra-side volume available at the 

electing price, and was eligible to 

participate in a sweep.6 The Exchange 

also noted that, at the time the CAP 

order was eliminated, the Exchange did 

not have the technology to replicate a 

similar functionality with d-Quotes.7

Since that time, the Exchange has 

introduced two new order types, the 

Minimum Display Reserve Order, and 

the Non-Displayed Reserve Order.8 With 

the proposed rule change, these two 

order types would be considered when 

determining whether there is sufficient 

contra-side volume to trigger a d-Quote. 

The Commission has carefully 

reviewed the proposed rule change and 

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 exchange 9 including, in 

particular, Section 6(b)(5) of the Act,10

which requires that an exchange have 

rules 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, protect investors and the public 

interest. 

Because it would provide a d-Quote 

with access to both displayed and 

undisplayed liquidity, the proposed rule 

change benefits Floor brokers by 

allowing their d-Quotes to be triggered 

more often. This proposal should also 

benefit customers by providing them 

with more opportunities to have their 

non-displayed reserve orders receive 

executions. 

The Commission also finds good 

cause to approve the proposed rule 

change prior to the thirtieth day after 

publication in the Federal Register. 

The Commission notes that no 

comments were received during the 21- 

day comment period. The Commission 

believes that the Exchange has provided 

reasonable support for its representation 

that the proposed rule change provides 

Floor brokers with a functionality 

similar to that previously available with 

CAP–DI orders. In addition, the 

potential benefits of this proposal to 

customers, such as the increased 

opportunities for the execution of 

customer non-displayed reserve orders, 

would be available sooner by approving 

this proposed rule change on an 

accelerated basis. Therefore, the 

Commission finds good cause, 

consistent with Section 19(b)(2) of the 

Act,11 to approve the proposed rule 

change on an accelerated basis. 

It is therefore ordered, pursuant to 

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

proposed rule change (SR–NYSE–2009– 

55) be, and it hereby is, approved on an 

accelerated basis. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. E9–16544 Filed 7–13–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60236; File No. SR–BATS– 

2009–019] 

Self-Regulatory Organizations; BATS 

Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Establish Its New 

Sponsored Access Risk Management 

Tool Service 

July 2, 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 June 26, 

2009, BATS Exchange, Inc. (‘‘BATS’’ 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 

Exchange filed the proposed rule change 

pursuant to Section 19(b)(3)(A) of the 

Act 3 and Rule 19b–4(f)(6) thereunder,4

which renders it effective upon filing 

with the Commission. The Commission 

is publishing this notice to solicit 

comments on the proposed rule change 

from interested persons. 

mstockstill on DSKH9S0YB1PROD with NOTICES