34604 Federal Register / Vol. 74, No. 135 / Thursday, July 16, 2009 / Notices 

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

12 17 CFR 240.19b–4(f)(6). Pursuant to Rule 19b– 

4(f)(6)(iii) under the Act, the Exchange is required 

to give the Commission 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. The Commission 

has determined to waive this requirement. 

13 17 CFR 240.19b–4(f)(6). 

14 17 CFR 240.19b–4(f)(6)(iii). 

15For 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). 

16 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3 17 CFR 240.19b–4(f)(6). 

4 17 CFR 240.19b–4(f)(6)(iii). 

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 

Because the proposed rule change: (i) 

Does not significantly affect the 

protection of investors or the public 

interest; (ii) does not impose any 

significant burden on competition; and 

(iii) does not become operative for 30 

days after the date of the filing, or such 

shorter time as the Commission may 

designate if consistent with the 

protection of investors and the public 

interest, the proposed rule change has 

become effective pursuant to Section 

19(b)(3)(A) of the Act 11 and Rule 19b– 

4(f)(6) thereunder.12

A proposed rule change filed 

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

Act 13 normally does not become 

operative for 30 days after the date of its 

filing. However, Rule 19b–4(f)(6)(iii) 14

permits the Commission to designate a 

shorter time if such action is consistent 

with the protection of investors and the 

public interest. The Exchange 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 it will allow the Exchange to 

extend, through July 31, 2009, the 

temporary suspension of its $1.00 price 

continued listing requirement for capital 

and common stock. The Commission 

notes that the extension of the 

temporary suspension will continue to 

provide certain companies with 

temporary relief from receiving a noncompliance or delisting notification, or 

from being delisted, and will provide 

some additional time to allow 

companies to regain compliance after 

the market volatility and conditions 

experienced earlier this year and last 

fall. The Commission notes that this 

action is temporary in nature. Further, 

companies will continue to be subject to 

delisting for failure to comply with 

other listing requirements during the 

suspension period. For these reasons, 

the Commission designates that the 

proposed rule change become operative 

immediately upon filing.15

At any time within 60 days of the 

filing of the proposed rule change, the 

Commission may summarily abrogate 

the 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 Exchange 

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–NYSEArca–2009–64 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–NYSEArca–2009–64. 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, 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– 

NYSEArca–2009–64 and should be 

submitted on or before August 6, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.16

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. E9–16808 Filed 7–15–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60268; File No. SR–CHX– 

2009–06] 

Self-Regulatory Organizations; 

Chicago Stock Exchange, Inc.; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change Adding the 

Voluntary De-Registration Rule 

July 9, 2009. 

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

Securities Exchange Act of 1934 

(‘‘Act’’), 1 and Rule 19b–4 2 thereunder, 

notice is hereby given that on July 7, 

2009, the Chicago Stock Exchange, Inc. 

(‘‘CHX’’ 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 CHX. CHX has 

filed this proposal pursuant to Exchange 

Act Rule 19b–4(f)(6) 3 and requests that 

the Commission waive the 30-day preoperative waiting period contained in 

Exchange Act Rule 19b–4(f)(6)(iii).4 If 

such waiver is granted by the 

Commission, this rule proposal, which 

is effective upon filing with the 

Commission, shall become immediately 

operative. 


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Federal Register / Vol. 74, No. 135 / Thursday, July 16, 2009 / Notices 34605 

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

6 15 U.S.C. 78f(b)(5). 

7 15 U.S.C. 78s(b)(3)(A). 

8 17 CFR 240.19b–4(f)(6). When filing a proposed 

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

Act, an Exchange is required to give the 

Commission 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. The Exchange met 

this requirement. 

9 17 CFR 240.19b–4(f)(6)(iii). 

10 Id. 

11For the purposes only of waiving the operative 

date of this proposal, the Commission has 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

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

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

CHX proposes to amend its rules to 

add a rule to Article 17 (governing CHXregistered Institutional Brokers) to 

notify the Exchange when they seek to 

voluntarily deregister as an Institutional 

Broker. The text of this proposed rule 

change is available on the Exchange’s 

Web site at (http://www.chx.com) and in 

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 

CHX included statements concerning 

the purpose of and basis for the 

proposed rule changes and discussed 

any comments it received regarding the 

proposal. The text of these statements 

may be examined at the places specified 

in Item IV below. The CHX has prepared 

summaries, set forth in sections A, B 

and C below, of the most significant 

aspects 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 is proposing to add a 

rule to Article 17, which governs the 

rights and obligations of Participant 

firms registered with the Exchange as 

Institutional Brokers (‘‘Institutional 

Brokers’’). Institutional Brokers utilize a 

trading platform provided for them by 

the Exchange and are entitled to certain 

rebates and credits under the 

Exchange’s fee schedule. The proposed 

addition would require that an 

Institutional Broker notify the Exchange 

of its intent to voluntarily deregister as 

an Institutional Broker by completing 

the proper form and submitting it to the 

Exchange. Such notification would 

ensure that these Participants would not 

have unwarranted access to Exchange 

trading technologies and were being 

billed in an appropriate manner if they 

continue to operate as an Exchange 

Participant in a non-Institutional Broker 

capacity (e.g., as an order sending firm). 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b) of the Act in general,5 and 

furthers the objectives of Section 6(b)(5) 

in particular,6 in that it is designed to 

promote just and equitable principles of 

trade, to foster cooperation and 

coordination with persons engaged in 

facilitating transaction in securities, to 

remove impediments and perfect the 

mechanisms of a free and open market, 

and, in general, to protect investors and 

the public interest by allowing CHX to 

add a rule to Article 17 (governing CHXregistered Institutional Brokers) to 

notify the Exchange they seek to 

voluntarily deregister as an Institutional 

Broker by completing the proper form 

and submitting it to the Exchange. Such 

notification would ensure that these 

Participants would not have 

unwarranted access to Exchange trading 

technologies and were being billed in an 

appropriate manner if they continue to 

operate as an Exchange Participant in a 

non-Institutional Broker capacity (e.g., 

as an order sending firm). 

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 either 

solicited or received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the foregoing proposed rule 

change does not: (1) Significantly affect 

the protection of investors or the public 

interest; (2) impose any significant 

burden on competition; and (3) become 

operative for 30 days from the date on 

which it was filed, or such shorter time 

as the Commission may designate if 

consistent with the protection of 

investors and the public interest, it has 

become effective pursuant to Section 

19(b)(3)(A) of the Act 7 and Rule 19b– 

4(f)(6) thereunder.8

A proposed rule change filed under 

Rule 19b–4(f)(6) normally may not 

become operative prior to 30 days after 

the date of filing.9 However, Rule 19b– 

4(f)(6) 10 permits the Commission to 

designate a shorter time if such action 

is consistent with the protection of 

investors and the public interest. CHX 

has requested that the Commission 

waive the 30-day operative delay. The 

Exchange notes that no rule currently 

requires that a Participant firm notify 

the Exchange of its intent to voluntarily 

de-register as an Institutional Broker. 

The Exchange believes that it is 

important to establish such a 

requirement as soon as practicable to 

prevent unwarranted access to Exchange 

trading technologies. The Commission 

believes that waiving the 30-day 

operative delay is consistent with the 

protection of investors and the public 

interest because it should further the 

Exchange’s ability to determine who no 

longer should have access the 

Exchange’s trading technologies. For 

this reason, the Commission designates 

the proposal to be operative upon filing 

with the Commission.11

At any time within 60 days of the 

filing of such 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 the 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–CHX–2009–06 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–CHX–2009–06. This file 

number should be included on the 

subject line if e-mail is used. To help the 


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34606 Federal Register / Vol. 74, No. 135 / Thursday, July 16, 2009 / Notices 

12 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3 17 CFR 240.19b–4(f)(6). 

4The Commission notes that the suspension 

period under this filing commenced at the time that 

the proposed rule change was filed on July 2, 2009 

and will continue through July 31, 2009. 

5Section 802.01C provides that a company will 

be considered to be below compliance standards if 

the average closing price of a security as reported 

on the consolidated tape is less than $1.00 over a 

consecutive 30 trading day period. Once notified, 

the company must bring its share price and average 

share price back above $1.00 by six months 

following receipt of the notification. A company is 

not eligible to follow the cure procedures outlined 

in Sections 802.02 and 802.03 with respect to this 

criteria. The company must, however, notify the 

Exchange, within 10 business days of receipt of the 

notification, of its intent to cure this deficiency or 

be subject to suspension and delisting procedures. 

In the event that at the expiration of the six-month 

cure period, both a $1.00 share price and a $1.00 

average share price over the preceding 30 trading 

days are not attained, the Exchange will commence 

suspension and delisting procedures. 

Notwithstanding the foregoing, if a company 

determines that, if necessary, it will cure the price 

condition by taking an action that will require 

approval of its shareholders, it must so inform the 

Exchange in the above referenced notification, must 

obtain the shareholder approval by no later than its 

next annual meeting, and must implement the 

action promptly thereafter. The price condition will 

be deemed cured if the price promptly exceeds 

$1.00 per share, and the price remains above the 

level for at least the following 30 trading days. 

6See Securities Exchange Act Release No. 59510 

(March 4, 2009), 74 FR 10636 (March 11, 2009) (SR– 

NYSE–2009–21). 

7See, e.g., Securities Exchange Act Release No. 

58588 (September 18, 2008), 73 FR 55174 

(September 24, 2008) (‘‘The Commission is aware 

of the continued potential of sudden and excessive 

fluctuations of securities prices and disruption in 

the functioning of the securities markets that could 

threaten fair and orderly markets. Given the 

importance of confidence in our financial markets 

as a whole, we have also become concerned about 

sudden and unexplained declines in the prices of 

securities. Such price declines can give rise to 

questions about the underlying financial condition 

of an issuer, which in turn can create a crisis of 

confidence without a fundamental underlying basis. 

This crisis of confidence can impair the liquidity 

and ultimate viability of an issuer, with potentially 

broad market consequences.’’). 

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 also will be available 

for inspection and copying at the 

principal office of the CHX. 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–CHX–2009–06 and should 

be submitted on or before August 6, 

2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. E9–16860 Filed 7–15–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60273; File No. SR–NYSE– 

2009–64] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change by New York 

Stock Exchange LLC To Extend Its 

Suspension of its Dollar Stock Price 

Continued Listing Standard to July 31, 

2009 

July 9, 2009. 

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

Securities Exchange Act of 1934 

(‘‘Exchange Act’’),1 and Rule 19b–4 

thereunder,2 notice is hereby given that 

on July 2, 2009, New York Stock 

Exchange LLC (the ‘‘NYSE’’ 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 Exchange. The Exchange has 

designated this proposal eligible for 

immediate effectiveness pursuant to 

Rule 19b–4(f)(6) 3 under the Exchange 

Act. 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 extend 

through July 31, 2009, the suspension of 

the application of its price criteria for 

capital and common stock set forth in 

Section 802.01C of the Exchange’s 

Listed Company Manual (the 

‘‘Manual’’).4

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 these statements may be examined at 

the places specified in Item IV below. 

The NYSE has prepared summaries, set 

forth in Sections A, B and C below, of 

the most significant aspects of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

From mid-2008 through the first 

quarter of 2009, the U.S. and global 

equities markets experienced extreme 

volatility and a precipitous decline in 

trading prices of many securities. As a 

consequence of these market conditions, 

the Exchange experienced an unusually 

high number (as compared to historical 

levels) of listed companies having stock 

prices that either fell below the 

Exchange’s $1.00 price requirement for 

capital and common stock set forth in 

Section 802.01C of the Manual (i.e., the 

average closing price of their stock has 

fallen below $1.00 over a consecutive 30 

trading day period) (the NYSE’s ‘‘dollar 

price continued listing standard’’).5 In 

response, the Exchange suspended the 

application of the dollar price continued 

listing standard until June 30, 2009.6

This suspension provided temporary 

relief to companies in response to the 

extreme volatility and a precipitous 

decline in trading prices of many 

securities experienced in the U.S. and 

global equities markets, which the 

Commission had acknowledged 

constituted a threat to the fair and 

orderly functioning of the securities 

markets and could lead to a crisis of 

confidence among investors regarding 

the viability of companies whose stock 

prices have declined significantly.7

Since the initial suspension of the 

Exchange’s dollar price continued 

listing standard, market conditions have 

improved somewhat and a significant 

number of companies have cured their 

noncompliance with that standard. 

However, major market indices have 

recovered only a fraction of their losses 

and are still significantly below the 

levels of the first half of 2008. 


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