34380 Federal Register / Vol. 74, No. 134 / Wednesday, July 15, 2009 / Notices 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

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

5 17 CFR 240.19b–4(f)(6)(iii). 

6The Exchange currently offers a basic form of 

match prevention by allowing a User to request a 

setting for their connections that prevents incoming 

orders from interacting with resting orders if both 

orders originate from the same MPID. The proposed 

rule expands the functionality offered to Users by 

providing additional options for match prevention. 

7Any Exchange Member that has an MPID issued 

by FINRA is identified in the Exchange’s internal 

disclosures to monitor agency cross 

transactions that affect their advisory 

account. The Commission also uses the 

information required by Rule 206(3)–2 

in connection with its investment 

adviser inspection program to ensure 

that advisers are in compliance with the 

rule. Without the information collected 

under the rule, advisory clients would 

not have information necessary for 

monitoring their adviser’s handling of 

their accounts and the Commission 

would be less efficient and effective in 

its inspection program. 

The information requirements of the 

rule consist of the following: (1) Prior to 

obtaining the client’s consent 

appropriate disclosure must be made to 

the client as to the practice of, and the 

conflicts of interest involved in, agency 

cross transactions; (2) at or before the 

completion of any such transaction the 

client must be furnished with a written 

confirmation containing specified 

information and offering to furnish 

upon request certain additional 

information; and (3) at least annually, 

the client must be furnished with a 

written statement or summary as to the 

total number of transactions during the 

period covered by the consent and the 

total amount of commissions received 

by the adviser or its affiliated brokerdealer attributable to such transactions. 

The Commission estimates that 

approximately 631 respondents use the 

rule annually, necessitating about 32 

responses per respondent each year, for 

a total of 20,192 responses. Each 

response requires an estimated 0.5 

hours, for a total of 10,096 hours. The 

estimated average burden hours are 

made solely for the purposes of the 

Paperwork Reduction Act and are not 

derived from a comprehensive or 

representative survey or study of the 

cost of Commission rules and forms. 

This collection of information is 

found at (17 CFR 275.206(3)–2) and is 

necessary in order for the investment 

adviser to obtain the benefits of Rule 

206(3)–2. The collection of information 

requirements under the rule is 

mandatory. Information subject to the 

disclosure requirements of Rule 206(3)– 

2 does not require submission to the 

Commission; and, accordingly, the 

disclosure pursuant to the rule is not 

kept confidential. Commissionregistered investment advisers are 

required to maintain and preserve 

certain information required under Rule 

206(3)–2 for five (5) years. The longterm retention of these records is 

necessary for the Commission’s 

inspection program to ascertain 

compliance with the Act. 

An agency may not conduct or 

sponsor, and a person is not required to 

respond to a collection of information 

unless it displays a currently valid 

control number. 

Written comments are invited on: (a) 

Whether the proposed collection of 

information is necessary for the proper 

performance of the functions of the 

agency, including whether the 

information shall have practical utility; 

(b) the accuracy of the agency’s estimate 

of the burden of the proposed collection 

of information; (c) ways to enhance the 

quality, utility, and clarity of the 

information to be collected; and (d) 

ways to minimize the burden of the 

collection of information on 

respondents, including through the use 

of automated collection techniques or 

other forms of information technology. 

Please direct your written comments 

to Charles Boucher, Director/CIO, 

Securities and Exchange Commission, 

C/O Shirley Martinson, 6432 General 

Green Way, Alexandria, VA 22312; or 

send an e-mail to: 

PRA_Mailbox@sec.gov. Comments must 

be submitted to OMB within 60 days of 

this notice. 

Dated: July 9, 2009. 

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. E9–16712 Filed 7–14–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60266; File No. SR–BATS– 

2009–022] 

Self-Regulatory Organizations; BATS 

Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Amend BATS Rule 

11.9, Entitled ‘‘Orders and Modifiers’’ 

July 9, 2009. 

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

Securities Exchange Act of 1934 

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

notice is hereby given that on July 6, 

2009, BATS Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘BATS’’) 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 Exchange. The Exchange has 

designated this proposal as a ‘‘noncontroversial’’ proposed rule change 

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

Act 4 and Rule 19b–4(f)(6)(iii) 

thereunder,5 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. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to make 

modifications to the existing technology 

that it provides to a User that wishes to 

avoid trading against orders from that 

same User (‘‘Member Match Trade 

Prevention’’ or ‘‘MMTP’’). The text of 

the proposed rule change is available 

from the Exchange’s Web site at 

http://www.batstrading.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, 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 offer 

Member Match Trade Prevention, or 

MMTP, to Exchange Users pursuant to 

proposed Rule 11.9(f).6

Background 

The proposed MMTP modifiers are 

designed to prevent two orders with the 

same Unique Identifier (as defined 

below) from executing against each 

other. The Exchange proposes adding 

four MMTP modifiers that will be 

implemented and can be set at the 

market participant identifier (‘‘MPID’’), 

the Exchange Member identifier or the 

Exchange Sponsored Participant 

identifier level (any such identifier, a 

‘‘Unique Identifier’’).7 With one 


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systems by that MPID. Each Exchange Member that 

does not already have an MPID and each Sponsored 

Participant is issued an identifier that is specific to 

the Exchange and allows the Exchange to determine 

the User for each order and trade. 

exception, described below, the MMTP 

modifier on the incoming order controls 

the interaction between two orders 

marked with MMTP modifiers from the 

same Unique Identifier. The four new 

MMTP modifiers are discussed more 

thoroughly below. 

MMTP Cancel Newest (‘‘MCN’’) 

An incoming order marked with the 

MCN modifier will not execute against 

opposite side resting interest marked 

with any MMTP modifier originating 

from the same Unique Identifier. The 

incoming order marked with the MCN 

modifier will be cancelled back to the 

originating User. The resting order 

marked with an MMTP modifier, which 

otherwise would have interacted with 

the incoming order from the same 

Unique Identifier, will remain on the 

BATS Book. 

MCN Example 1: An order to buy 500 

shares @ $22.00 is marked with any of 

the four MMTP modifiers and becomes 

a resting order on the BATS Book. 

Subsequently, an order to sell 500 

shares @ $22.00 is entered with the 

same Unique Identifier and marked with 

the MCN modifier. 

MCN Result 1: The incoming sell 

order for 500 shares @ $22.00 marked 

with the MCN modifier is cancelled 

back to the originating User. The resting 

buy order for 500 shares at $22.00 

marked with one of the four MMTP 

modifiers remains on the BATS Book. 

MCN Example 2: An order to buy 500 

shares @ $22.00 is marked with any of 

the four STP modifiers and becomes a 

resting order on the BATS Book. 

Subsequently, an order to sell 700 

shares @ $22.00 is entered with the 

same Unique Identifier and marked with 

the MCN modifier. 

MCN Result 2: The incoming sell 

order for 700 shares @ $22.00 marked 

with the MCN modifier is cancelled 

back to the originating User. The resting 

buy order for 500 shares at $22.00 

marked with one of the four MMTP 

modifiers remains on the BATS Book. 

MCN Example 3: An order to buy 500 

shares @ $22.00 is marked with any of 

the four MMTP modifiers and becomes 

a resting order on the BATS Book. 

Subsequently, an order to sell 400 

shares @ $22.00 is entered with the 

same Unique Identifier and marked with 

the MCN modifier. 

MCN Result 3: The incoming sell 

order for 400 shares @ $22.00 marked 

with the MCN modifier is cancelled 

back to the originating User. The resting 

buy order for 500 shares at $22.00 

marked one of the four MMTP modifiers 

remains on the BATS Book. 

MMTP Cancel Oldest (‘‘MCO’’) 

An incoming order marked with the 

MCO modifier will not execute against 

opposite side resting interest marked 

with any MMTP modifier originating 

from the same Unique Identifier. The 

resting order marked with the MMTP 

modifier, which otherwise would have 

interacted with the incoming order by 

the same Unique Identifier, will be 

cancelled back to the originating User. 

The incoming order marked with the 

MCO modifier will remain on the BATS 

Book. 

MCO Example 1: An order to buy 500 

shares @ $22.00 is marked with any of 

the four MMTP modifiers and becomes 

a resting order in the BATS Book. 

Subsequently, an order to sell 500 

shares @ $22.00 is entered with the 

same Unique Identifier and marked with 

the MCO modifier. 

MCO Result 1: The resting buy order 

for 500 shares at $22.00 marked with 

one of the four MMTP modifiers is 

cancelled back to the originating User. 

The incoming sell order for 500 shares 

@ $22.00 marked with the MCO 

modifier is entered in the BATS Book. 

MCO Example 2: An order to buy 500 

shares @ $22.00 is marked with any of 

the four MMTP modifiers and becomes 

a resting order in the BATS Book. 

Subsequently, an order to sell 700 

shares @ $22.00 is entered with the 

same Unique Identifier and marked with 

the MCO modifier. 

MCO Result 2: The resting buy order 

for 500 shares at $22.00 marked with 

one of the four MMTP modifiers is 

cancelled back to the originating User. 

The incoming sell order for 700 shares 

@ $22.00 marked with the MCO 

modifier is entered on the BATS Book. 

MCO Example 3: An order to buy 500 

shares @ $22.00 is marked with any of 

the four MMTP modifiers and becomes 

a resting order in the BATS Book. 

Subsequently, an order to sell 400 

shares @ $22.00 is entered with the 

same Unique Identifier and marked with 

the MCO modifier. 

MCO Result 3: The resting buy order 

for 500 shares at $22.00 marked with 

one of the four MMTP modifiers is 

cancelled back to the originating User. 

The incoming sell order for 400 shares 

@ $22.00 marked with the MCO 

modifier is entered on the BATS Book. 

MMTP Decrement and Cancel (‘‘MDC’’) 

An incoming order marked with the 

MDC modifier will not execute against 

opposite side resting interest marked 

with any MMTP modifier originating 

from the same Unique Identifier. If both 

orders are equivalent in size, both 

orders will be cancelled back to the 

originating User. If the orders are not 

equivalent in size, the equivalent size 

will be cancelled back to the originating 

User and the larger order will be 

decremented by the size of the smaller 

order, with the balance remaining on 

the BATS Book; provided, however, that 

if the resting order is marked with any 

MMTP modifier other than MDC, and 

the incoming order is smaller in size 

than the resting order, then both orders 

will be cancelled back to the originating 

User. 

MDC Example 1: An order to buy 500 

shares @ $22.00 is marked with any of 

the four MMTP modifiers and becomes 

a resting order on the BATS Book. 

Subsequently, an order to sell 500 

shares @ $22.00 is entered with the 

same Unique Identifier and marked with 

the MDC modifier. 

MDC Result 1: The resting buy order 

for 500 shares at $22.00 marked with 

one of the four MMTP modifiers is 

cancelled back to the originating User. 

The incoming sell order for 500 shares 

@ $22.00 marked with the MDC 

modifier is cancelled back to the 

originating User. 

MDC Example 2: An order to buy 500 

shares @ $22.00 is marked with any of 

the four MMTP modifiers and becomes 

a resting order in the BATS Book. 

Subsequently, an order to sell 700 

shares @ $22.00 is entered with the 

same Unique Identifier and marked with 

the MDC modifier. 

MDC Result 2: The resting buy order 

for 500 shares at $22.00 marked with 

one of the four MMTP modifiers is 

cancelled back to the originating User. 

The equivalent portion, 500 shares, of 

the incoming sell order marked with the 

MDC modifier is cancelled back to the 

originating User. The remaining portion, 

200 shares, is entered on the BATS 

Book. 

MDC Example 3: An order to buy 500 

shares @ $22.00 is marked with an MDC 

modifier and becomes a resting order in 

the BATS Book. Subsequently, an order 

to sell 400 shares @ $22.00 is entered 

with the same Unique Identifier and 

marked with the MDC modifier. 

MDC Result 3: 400 of the 500 shares 

on the resting buy order at $22.00 

marked with one of the four MMTP 

modifiers are cancelled back to the 

originating User. The outstanding 100 

shares remain on the BATS Book. The 

incoming sell order for 400 shares @ 

$22.00 marked with the MDC modifier 

is cancelled back to the originating User. 

MDC Example 4: An order to buy 500 

shares @ $22.00 is marked with any 

MMTP modifier other than MDC and 


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

9 15 U.S.C. 78f(b)(5). 

becomes a resting order in the BATS 

Book. Subsequently, an order to sell 400 

shares @ $22.00 is entered with the 

same Unique Identifier and marked with 

the MDC modifier. 

MDC Result 4: The resting buy order 

for 500 shares at $22.00 marked with a 

MMTP modifier other than MDC is 

cancelled back to the originating User. 

The incoming sell order for 400 shares 

@ $22.00 marked with the MDC 

modifier is cancelled back to the 

originating User. 

MMTP Cancel Both (‘‘MCB’’) 

An incoming order marked with the 

MCB modifier will not execute against 

opposite side resting interest marked 

with any MMTP modifier originating 

from the same Unique Identifier. The 

entire size of both orders will be 

cancelled back to the originating User. 

MCB Example 1: An order to buy 500 

shares @ $22.00 is marked with any of 

the four MMTP modifiers and becomes 

a resting order in the BATS Book. 

Subsequently, an order to sell 500 

shares @ $22.00 is entered with the 

same Unique Identifier and marked with 

the MCB modifier. 

MCB Result 1: The resting buy order 

for 500 shares at $22.00 marked with 

one of the four MMTP modifiers is 

cancelled back to the originating User. 

The incoming sell order for 500 shares 

@ $22.00 marked with the MCB modifier 

is cancelled back to the originating User. 

MCB Example 2: An order to buy 500 

shares @ $22.00 is marked with any of 

the four MMTP modifiers and becomes 

a resting order in the BATS Book. 

Subsequently, an order to sell 700 

shares @ $22.00 is entered with the 

same Unique Identifier and marked with 

the MCB modifier. 

MCB Result 2: The resting buy order 

for 500 shares at $22.00 marked with 

one of the four MMTP modifiers is 

cancelled back to the originating User. 

The incoming order to sell 700 shares @ 

$22.00 marked with the MCB modifier 

is cancelled back to the originating User. 

MCB Example 3: An order to buy 500 

shares @ $22.00 is marked with any of 

the four MMTP modifiers and becomes 

a resting order in the BATS Book. 

Subsequently, an order to sell 400 

shares @ $22.00 is entered with the 

same Unique Identifier and marked with 

the MCB modifier. 

MCB Result 3: The resting buy order 

for 500 shares at $22.00 marked with 

one of the four MMTP modifiers is 

cancelled back to the originating User. 

The incoming order to sell 400 shares @ 

$22.00 marked with the MCB modifier 

is cancelled back to the originating User. 

Additional Discussion 

MMTP modifiers are intended to 

prevent interaction between the same 

Unique Identifier. MMTP modifiers 

must be present on both the buy and the 

sell order in order to prevent a trade 

from occurring and to effect a cancel 

instruction. MMTP modifiers are 

available for orders entered in either an 

agency or principal capacity. An 

incoming MMTP order cannot cancel 

through resting orders that have price 

and/or time priority. When an order 

with an MMTP modifier is entered it 

will first interact with all available 

interest in accordance with the 

execution process described in 

Exchange Rules 11.12 and 11.13. If there 

is a remaining balance on the order after 

trading with all orders with higher 

priority, it may then interact with an 

opposite side MMTP order in 

accordance with the rules established 

above. Incoming MMTP orders that are 

priced through the price of a resting 

MMTP order may cancel the resting 

order as long as no other non-MMTP 

orders have priority. 

The Exchange believes that adding 

this functionality will allow Exchange 

Users to better manage order flow and 

prevent undesirable executions with 

themselves or the potential for (or the 

appearance of) ‘‘wash sales’’ that may 

occur as a result of the velocity of 

trading in today’s high speed 

marketplace. Many Exchange Users 

have multiple connections into the 

Exchange due to capacity and speed 

related demands. Orders routed by the 

same User via different connections 

may, in certain circumstances, trade 

against each other. The new MMTP 

modifiers provide Users the opportunity 

to prevent these potentially undesirable 

trades occurring under the same Unique 

Identifier on both the buy and sell side 

of the execution. The Exchange also 

believes that this functionality will 

allow firms to better internalize agency 

order flow which in turn may decrease 

the costs to its customers. The Exchange 

notes that the MMTP modifiers do not 

alleviate, or otherwise exempt, brokerdealers from their best execution 

obligations. As such, broker-dealers 

using the MMTP modifiers will be 

obligated to internally cross agency 

orders at the same price, or a better 

price than they would have received 

had the orders been executed on the 

Exchange. Additionally, the MMTP 

modifiers will assist market participants 

in complying with certain rules and 

regulations of the Employee Retirement 

Income Security Act (‘‘ERISA’’) that 

preclude and/or limit managing brokerdealers of such accounts from trading as 

principal with orders generated for 

those accounts. Finally, the Exchange 

notes that offering the MMTP modifiers 

will streamline certain regulatory 

functions by reducing false positive 

results that may occur on Exchange 

generated wash trading surveillance 

reports when orders are executed under 

the same Unique Identifier. For these 

reasons, the Exchange believes the 

MMTP modifiers offer users enhanced 

order processing functionality that may 

prevent potentially undesirable 

executions without negatively 

impacting broker-dealer best execution 

obligations. 

2. Statutory Basis 

The rule change proposed in this 

submission is consistent with the 

requirements of the Act and the rules 

and regulations thereunder that are 

applicable to a national securities 

exchange, and in particular, with the 

requirements of Section 6(b) of the Act.8

Specifically, the proposed change is 

consistent with Section 6(b)(5) of the 

Act,9 because it is designed to prevent 

fraudulent and manipulative acts and 

practices, to promote just and equitable 

principles of trade, to foster cooperation 

and coordination with persons engaged 

in facilitating transactions in securities, 

and to remove impediments to, and 

perfect the mechanism of, a free and 

open market and a national market 

system. This functionality will allow 

firms to better manage order flow and 

prevent undesirable executions against 

themselves. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change imposes any 

burden on competition. 

C. Self-Regulatory Organization’s 

Statement of Comments on the 

Proposed Rule Changes Received From 

Members, Participants, or Others 

The Exchange has neither solicited 

nor received comments on the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the foregoing proposed rule 

change: (1) Does not significantly affect 

the protection of investors or the public 

interest; (2) does not impose any 

significant burden on competition; and 

(3) by its terms does not become 

operative for 30 days after the date of 

this filing, or such shorter time as the 


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10 15 U.S.C. 78s(b)(3)(A). 

11 17 CFR 240.19b–4(f)(6). 

12For purposes only of waiving the 30-day 

operative delay, the Commission has considered the 

proposed rule’s impact on efficiency, competition, 

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

13The Commission is also waiving the five 

business-day pre-filing requirement. 14 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. 

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 10 and 

Rule 19b–4(f)(6) thereunder.11

A proposed rule change filed under 

Rule 19b–4(f)(6) normally does not 

become operative for 30 days after the 

date of filing. In addition, Rule 19b– 

4(f)(6)(iii) requires a self-regulatory 

organization to provide the Commission 

with written 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. However, Rule 19b– 

4(f)(6)(iii) permits the Commission to 

designate a shorter time if such action 

is consistent with the protection of 

investors and the public interest. The 

Exchange requests that the Commission 

waive the 30-day operative delay as well 

as the five business-day pre-filing 

requirement so that the benefits of this 

functionality to BATS market 

participants expected from the rule 

change will not be delayed. The 

Commission believes that waiving the 

30-day operative delay12 to make this 

functionality available without delay is 

consistent with the protection of 

investors and the public interest.13

Therefore, the Commission designates 

the proposal operative upon filing. 

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–BATS–2009–022 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–BATS–2009–022. 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 5552, 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 also will be available 

for inspection and copying at the 

principal office of the Exchange. 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–BATS–2009–022 and 

should be submitted on or before 

August 5, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.14

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. E9–16713 Filed 7–14–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60262; File No. SR– 

NYSEArca–2009–63] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Amending NYSE Arca 

Equities Rules 7.31(x) and 7.31(kk) 

July 8, 2009. 

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

Securities Exchange Act of 1934 

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

notice is hereby given that on July 2, 

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

the ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(‘‘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 

NYSE Arca Equities Rule 7.31(x) and 

7.31(kk) in order to amend the 

functionality of Primary Only Orders 

and Primary Sweep Orders (collectively 

‘‘PO and PSO orders’’) routed to the 

New York Stock Exchange LLC 

(‘‘NYSE’’) [sic] The text of the proposed 

rule change is attached as Exhibit 5 to 

the 19b–4 form. 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. 


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