Federal Register / Vol. 74, No. 133 / Tuesday, July 14, 2009 / Notices 34065 

10 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. 52497 

(September 22, 2005), 70 FR 56949 (September 29, 

2005) (SR–PCX–2005–90); see also Securities 

Exchange Act Release No. 44983 (October 25, 2001), 

66 FR 55225 (November 1, 2001) (SR–PCX–00–25); 

see also Securities Exchange Act Release No. 58681 

(September 29, 2008), 73 FR 58285 (October 6, 

2008) (order approving NYSEArca–2008–90). See 

Securities Exchange Act Release No. 55590 (April 

5, 2007), 72 FR 18707 (April 13, 2007) (notice of 

immediate effectiveness of SR–NYSE–2007–29); see 

also Securities Exchange Act Release No. 58680 

(September 29, 2008), 73 FR 58283 (October 6, 

2008) (order approving SR–NYSE–2008–76). See 

Securities Exchange Act Release No. 59009 

(November 24, 2008), 73 FR 73363 (December 2, 

2008) (SR–NYSEALTR–2008–07). 

4See Securities Exchange Act Release No. 58680 

(September 29, 2008), 73 FR 58283 (October 6, 

2008) (order approving SR–NYSE–2008–76). 

ArcaSec had been previously authorized to deliver 

inbound routes to the NYSE, acting in its capacity 

as an order routing facility for NYSE Arca. See 

supra note 3. 

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

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

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–ISE–2009–34 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–ISE–2009–34. 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 such 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–ISE– 

2009–34 and should be submitted on or 

before August 4, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. E9–16577 Filed 7–13–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60255; File No. SR–NYSE– 

2009–58] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Notice of 

Filing and Order Granting Accelerated 

Approval of Proposed Rule Change to 

Amend the Scope of the Exchange’s 

Prior Approval to Receive Inbound 

Routes from Archipelago Securities 

LLC (‘‘ArcaSec’’), an Affiliated Member 

July 7, 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 23, 

2009, the New York Stock Exchange 

LLC (‘‘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 substantially prepared by the 

Exchange. The Commission is 

publishing this notice to solicit 

comments on the proposed rule change 

from interested persons, and is 

approving the proposal on an 

accelerated basis. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to amend the 

scope of the Exchange’s prior approval 

to receive inbound routes of PO Plus 

Orders from Archipelago Securities LLC 

(‘‘ArcaSec’’), an NYSE affiliated 

member. 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 

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 

ArcaSec is the approved outbound 

order routing facility of the NYSE, 

NYSE Arca Inc. (‘‘NYSE Arca’’) and 

NYSE Amex LLC.3 In this context, the 

Exchange has been previously 

authorized, on a pilot basis, to receive 

inbound PO Plus Orders from ArcaSec, 

acting in its capacity as the outbound 

order routing facility for NYSE Arca.4

The Exchange hereby proposes that, in 

addition to PO Plus Orders, the 

Commission authorize the NYSE to 

receive all NYSE Arca order types 

approved or implemented on or after the 

date of approval of this proposal. The 

Exchange does not propose any further 

changes to its authorization to receive 

inbound routes from ArcaSec or to the 

term of the pilot period. All existing 

conditions currently in place with 

respect to ArcaSec routing orders to the 

NYSE, in its capacity as an outbound 

order routing facility for NYSE Arca, 

will continue to apply. The Exchange 

believes that this proposal, if approved, 

will authorize the Exchange to receive 

any NYSE Arca order types approved 

subsequent to the approval of this 

proposal and going forward through the 

end of the pilot period. 

2. Statutory Basis 

The proposed rule change is 

consistent with Section 6(b) 5 of the 

Securities Exchange Act of 1934 (the 

‘‘Act’’), in general, and furthers the 

objectives of Section 6(b)(5),6 in 

particular, in that it is designed to 

prevent fraudulent and manipulative 

acts and practices, to promote just and 

equitable principles of trade, to foster 

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34066 Federal Register / Vol. 74, No. 133 / Tuesday, July 14, 2009 / Notices 

7 In approving this proposed rule change, the 

Commission has considered the proposed rule’s 

impact on efficiency, competition, and capital 

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

8 15 U.S.C. 78f(b)(5). 

9See, e.g., Securities Exchange Act Release Nos. 

54170 (July 18, 2006), 71 FR 42149 (July 25, 2006) 

(SR–NASDAQ–2006–006) (order approving 

Nasdaq’s proposal to adopt Nasdaq Rule 2140, 

restricting affiliations between Nasdaq and its 

members); and 53382 (February 27, 2006), 71 FR 

11251 (March 6, 2006) (SR–NYSE–2005–77) (order 

approving the combination of the New York Stock 

Exchange, Inc. and Archipelago Holdings) at 11255; 

see also Securities Exchange Act Release No. 58681, 

supra note 3. 

10See Securities Exchange Act Release No. 58680, 

supra note 4. 

11See id at notes 16–21 and accompanying text. 

ArcaSec’s routing of orders to the NYSE, in its 

capacity as an outbound routing facility for NYSE 

Arca with respect to order types in effect prior to 

the establishment of the pilot program for PO Plus 

Orders, is not subject to the pilot program. 

12See SR–NYSE–2009–58, Item 7. 

13See id. See also SR–NYSEArca–2009–56. 

cooperation and coordination with 

persons engaged in facilitating 

transactions in securities, and to remove 

impediments to and perfect the 

mechanisms of a free and open market 

and a national market system. The 

Exchange believes authorizing the 

Exchange to receive inbound routes, via 

ArcaSec, of all NYSE Arca order types 

approved or implemented on or after the 

date of approval of this proposal reflects 

the Exchange’s ongoing efforts to 

effectively address the concerns 

previously identified by the 

Commission regarding the potential for 

informational advantages favoring 

ArcaSec vis-a`-vis other non-affiliated 

NYSE members. 

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. 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–2009–58 on the 

subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Secretary, Securities and Exchange 

Commission, 100 F Street, NE., 

Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–NYSE–2009–58. 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–NYSE– 

2009–58 and should be submitted on or 

before August 4, 2009. 

IV. Commission’s Findings and Order 

Granting Accelerated Approval of a 

Proposed Rule Change 

The Commission finds that the 

proposed rule change is consistent with 

the requirements of the Act and the 

rules and regulations thereunder 

applicable to a national securities 

exchange.7 In particular, the 

Commission finds that the proposed 

rule change is consistent with Section 

6(b)(5) of the Act,8 which requires, 

among other things, that the rules of a 

national securities exchange be 

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 

regulating, clearing, settling, processing 

information with respect to, and 

facilitating transactions in securities; 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; and are not designed to 

permit unfair discrimination between 

customers, issuers, brokers, or dealers. 

In the past, the Commission has 

expressed concern that the affiliation of 

an exchange with one of its members 

raises potential conflicts of interest, and 

the potential for unfair competitive 

advantage.9Although the Commission 

continues to be concerned about 

potential unfair competition and 

conflicts of interest between an 

exchange’s self-regulatory obligations 

and its commercial interests when the 

exchange is affiliated with one of its 

members, the Commission believes that 

it is consistent with the Act to permit 

ArcaSec to provide inbound routing to 

the NYSE from NYSE Arca for all NYSE 

Arca order types approved or 

implemented on or after the date of this 

approval order on a pilot basis and 

subject to certain conditions. The 

Commission notes that this proposal 

seeks to expand a previously approved 

pilot program that allows the NYSE to 

receive PO Plus Orders from NYSE Arca 

via ArcaSec 10 to include any additional 

order types approved or implemented 

on or after the date of this approval 

order. The Commission also notes that 

all existing conditions currently in place 

with respect to ArcaSec routing orders 

to the NYSE, in its capacity as an 

outbound routing facility for NYSE 

Arca, will continue to apply.11

The NYSE has asked the Commission 

to accelerate approval of the proposed 

rule change. The NYSE notes that the 

proposed rule change reflects the 

Exchange’s efforts to effectively include 

within the pilot program authorizing the 

NYSE to receive certain inbound orders 

routed via ArcaSec, all NYSE Arca order 

types approved or implemented on or 

after the date of approval of this 

proposal.12 NYSE also states that 

accelerated approval will authorize the 

Exchange to receive such order types 

through the end of the pilot period, 

including certain pending NYSE Arca 

proposed order types.13 The 

Commission finds good cause for 

approving the proposed rule change 

before the thirtieth day after the date of 

publication of notice of filing thereof in 

the Federal Register. The Commission 

notes that the protections currently in 

place with respect to ArcaSec routing 

orders to the NYSE, in its capacity as an 

outbound routing facility for NYSE 

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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. 

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