Federal Register / Vol. 74, No. 137 / Monday, July 20, 2009 / Notices 35221 

16 15 U.S.C. 78s(b)(3)(A). 

17 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. 

18 17 CFR 240.19b–4(f)(6). 

19 17 CFR 240.19b–4(f)(6)(iii). 

20See supra note 7. 

21See The NASDAQ Stock Market LLC Rule 

5450. 

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). 

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

2 17 CFR 240.19b–4. 

open market and a national market 

system, and, in general, to protect 

investors and the public interest. The 

NYSE’s continued listing requirements 

as amended by the proposed rule 

change remain at least as stringent as 

those of any other national securities 

exchange and, consequently, the 

proposed amendment is consistent with 

the protection of investors and the 

public interest. 

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 Exchange Act. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

Written comments were neither 

solicited nor received. 

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 16 and Rule 19b– 

4(f)(6) thereunder.17

A proposed rule change filed 

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

Act 18 normally does not become 

operative for 30 days after the date of its 

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

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 the proposal will return the 

Exchange’s market capitalization 

continued listing standard to the same 

level that it was in 2004 to $15 

million.20 In addition, the Commission 

notes that the $15 million market 

capitalization standard, which 

immediately subjects a company failing 

to meet this standard to the Exchange’s 

delisting procedures in Section 804 of 

the Manual, is at least as stringent as the 

continued listing requirements of 

another national securities exchange.21

For these reasons, the Commission 

believes that the proposed rule change 

does not raise any new regulatory 

issues. Accordingly, the Commission 

designates that the proposed rule 

change become operative immediately 

upon filing.22

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–NYSE–2009–66 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–2009–66. 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– 

2009–66 and should be submitted on or 

before August 10, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.23

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–17139 Filed 7–17–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60304; File No. SR–DTC– 

2009–11] 

Self-Regulatory Organizations; the 

Depository Trust Company; Notice of 

Filing of Proposed Rule Change To 

Eliminate One of the Indemnity Surety 

Programs in the Profile Modification 

System 

July 14, 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 11, 

2009, The Depository Trust Company 

(‘‘DTC’’) filed with the Securities and 

Exchange Commission (‘‘Commission’’) 

the proposed rule change described in 

Items I, II, and III below, which items 

have been prepared primarily by DTC. 

The Commission is publishing this 

notice to solicit comments on the 


erowe on DSK5CLS3C1PROD with NOTICES
35222 Federal Register / Vol. 74, No. 137 / Monday, July 20, 2009 / Notices 

3 DTC has created a Profile Indemnity Insurance 

Program (‘‘PIP II’’) to replace the PSP II. Securities 

Exchange Act Release No. 60036 (Jun. 3, 2009), 74 

FR 28085 (Jun. 12, 2009) [File No. SR–DTC–2009– 

09]. 

4The Commission has modified the text of the 

summaries prepared by DTC. 

5Securities Exchange Act Release No. 42704 

(Apr. 19, 2000), 65 FR 24242 (Apr. 25, 2000) [File 

No. SR–DTC–2000–04]. 

6Securities Exchange Act Release No. 43586 

(Nov. 17, 2000), 65 FR 70745 (Nov. 27, 2000) [File 

No. SR–DTC–2000–09]. 

7Securities Exchange Act Release No. 52422 (Sep. 

14, 2005), 70 FR 55196 (Sep. 20, 2005) [File No. SR– 

DTC–2005–11]. 

8Securities Exchange Act Release No. 58042 (Jun. 

26, 2008), 73 FR 39067 (July 8, 2008) [File No. SR– 

DTC–2008–04]. 

9Securities Exchange Act Release No. 60036 (Jun. 

3, 2009) 74 FR 28085 (Jun. 12, 2009) [File No. DTC– 

2009–09. 10 15 U.S.C. 78q–1. 

proposed rule change from interested 

parties. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The proposed rule change seeks to 

eliminate one of the Indemnity Surety 

Programs (‘‘PSP II’’) of DTC’s Profile 

Modification System (‘‘Profile’’).3

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, 

DTC 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. DTC has prepared 

summaries, set forth in sections (A), (B), 

and (C) below, of the most significant 

aspects of these statements.4

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

Current MMI Maturity Payment 

Procedure 

On April 19, 2000, the Commission 

approved a DTC rule filing to establish 

Profile,5 an electronic communication 

medium between transfer agents that are 

DRS Limited Participants (‘‘Limited 

Participants’’) and brokers that are DRS 

Participants (‘‘Participants’’). In May 

2000, DTC implemented Profile. Profile 

allows Participants to submit 

electronically an investor’s instruction 

to move a share position from the 

investor’s Limited Participant account 

to the investor’s Participant account at 

DTC (‘‘Electronic Participant 

Instruction’’). Profile also allows 

Limited Participants to submit an 

investor’s instruction for the movement 

of its share positions from the investor’s 

Participant account at DTC to an 

account maintained by the Limited 

Participant (‘‘Electronic Limited 

Participant Instruction’’ and, together 

with Electronic Participant Instruction, 

‘‘Electronic Instruction’’). A user 

submitting an Electronic Instruction 

through Profile is required to agree to a 

Participant Terminal System (‘‘PTS’’) 

screen indemnity (‘‘Screen Indemnity’’). 

On November 17, 2000, the 

Commission approved a DTC rule filing 

to establish the Profile Indemnity Surety 

Program (‘‘PSP’’).6 Under PSP, all users 

of Profile who agree to the Screen 

Indemnity as part of their use of Profile 

must procure a surety bond (‘‘Surety 

Bond’’) to back the representations 

under the Screen Indemnity. 

Participation in PSP requires the 

payment of an annual premium of 

$3,150 to a surety provider and an 

administration fee of $250 to DTC. The 

PSP surety provider provides for a 

coverage limit of $3 million per 

transaction with an annual aggregate 

limit of $6 million. 

On September 14, 2005, the 

Commission approved a DTC rule filing 

to establish the Profile Indemnity 

Insurance Program (‘‘PIP’’),7 which 

serves as an alternative to PSP. PIP 

allows users of Profile who agree to the 

Screen Indemnity to have the option to 

procure insurance relating to a 

particular securities transaction 

according to the value of the securities 

transaction. PIP provides a coverage 

limit of $25 million per transaction with 

an annual aggregate limit of $100 

million. In addition to any pass-through 

fee from the insurer, DTC charges users 

participating in PIP an annual 

administration fee of $250 and a per 

transaction fee of $27.50. 

On June 26, 2008, the Commission 

approved a DTC rule filing to establish 

PSP II,8 which provides for a coverage 

limit of $7.5 million per transaction 

with an annual aggregate limit of $15 

million. Users of PSP II are required to 

pay an annual premium of $6,000 to a 

surety provider and a DTC 

administration fee of $250. 

On June 3, 2009, the Commission 

approved a DTC rule filing to establish 

a new Profile Indemnity Insurance 

Program (‘‘PIP II’’).9 The intent of PIP II 

is to account for the additional, larger 

value Profile transactions that DRS 

currently handles and to serve as a 

replacement for PSP II. PIP II provides 

the same coverage limits as PSP II, a 

coverage limit of $7.5 million per 

transaction with an annual aggregate 

limit of $15 million, and requires 

payment of the same fees, an annual 

premium of $6,000 to an insurance 

provider and a DTC administration fee 

of $250. PIP II does not require users of 

Profile to procure a surety bond. 

DTC believes that the proposed rule 

change is consistent with the 

requirements of Section 17A of the 

Act 10 and the rules and regulations 

thereunder because the proposed 

change will modify an existing DTC 

service in order to provide a more 

suitable choice of insurance and surety 

policies. As such, it is a change to an 

existing service that does not adversely 

affect the safeguarding of securities and 

funds in DTC’s custody or control. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

DTC does not believe that the 

proposed rule change will have any 

impact or impose any burden on 

competition. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

Written comments relating to the 

proposed rule change have not yet been 

solicited or received. DTC will notify 

the Commission of any written 

comments received by DTC. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Within thirty-five days of the date of 

publication of this notice in the Federal 

Register or within such longer period: 

(i) As the Commission may designate up 

to ninety days of such date if it finds 

such longer period to be appropriate 

and publishes its reasons for so finding 

or (ii) as to which the self-regulatory 

organization consents, the Commission 

will: 

(A) By order approve such proposed 

rule change or 

(B) Institute proceedings to determine 

whether the proposed rule change 

should be disapproved. 

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 


erowe on DSK5CLS3C1PROD with NOTICES
Federal Register / Vol. 74, No. 137 / Monday, July 20, 2009 / Notices 35223 

11 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3They are also defined to be consistent with the 

proposed exemption described in the Proposed 

Options Order Protection and Locked/Crossed 

Market Plan (File No. 4–546, Exchange Act Release 

No. 34–59647). 

• Send an e-mail to rulecomments@sec.gov. Please include File 

Number SR–DTC–2009–11 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–DTC–2009–11. 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 

Section, 100 F Street, NE., Washington, 

DC 20549, on official business days 

between the hours of 10 a.m. and 3 p.m. 

Copies of such filings also will be 

available for inspection and copying at 

the principal office of DTC and on 

DTC’s Web site at http://dtcc.com/ 

downloads/legal/rule_filings/2009/dtc/ 

2009-11.pdf. 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–DTC– 

2009–11 and should be submitted on or 

before August 10, 2009. 

For the Commission by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–17138 Filed 7–17–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60297; File No. SR–NYSE 

Amex–2009–42] 

Self-Regulatory Organizations; NYSE 

Amex LLC; Notice of Filing of 

Proposed Rule Change To Propose 

New Rules To Govern Electronic 

Complex Order Trading 

July 13, 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 July 9, 

2009, NYSE Amex LLC (‘‘NYSE Amex’’ 

or ‘‘Exchange’’) 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 the Exchange. 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 new rules to 

govern Electronic Complex Order 

trading. 

The text of the proposed rule change 

is available on the Exchange’s Internet 

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 

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 aspects of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

NYSE Amex proposes new rules that 

describe Electronic Complex Order 

Trading. Electronic Complex Orders are 

Complex Orders and Stock/option 

Orders that are entered electronically 

into the NYSE Amex System. 

Proposed Rule 980NY describes the 

entry of Electronic Complex Orders in 

the Consolidated Book and the 

operation of a Complex Matching 

Engine. The Complex Matching Engine 

is the mechanism in which Electronic 

Complex Orders are executed against 

each other or against individual quotes 

and orders in the Consolidated Book. 

Electronic Complex Orders in the 

Consolidated Book will be available to 

all market participants via an electronic 

interface. NYSE Amex proposes that 

Electronic Complex Orders be ranked in 

the Consolidated Book in price/time 

priority based on the strategy and the 

total or net debit or credit, provided that 

Electronic Complex Orders on behalf of 

Customers shall be ranked ahead of 

same price Electronic Complex Orders 

for non-Customers. 

Electronic Complex Orders eligible for 

execution in the Complex Matching 

Engine are defined to be consistent with 

the Linkage Plan Trade Through 

exemption; 3 they therefore may report 

execution prices for the individual legs 

of a Complex Trade that are outside of 

the National Best Bid or Offer. However, 

the Complex Matching Engine will 

never execute any of the legs of a 

Complex Trade at a price outside of the 

NYSE Amex best bid/offer for that leg. 

NYSE Amex also proposes that 

Electronic Complex Orders attempt to 

execute against other Electronic 

Complex Orders in the Consolidated 

Book, before attempting to execute 

against the individual leg markets in the 

Consolidated Book, provided that for 

purposes of priority, where the total or 

net debit or credit derived from 

Customer orders in the individual leg 

market is better than or equal to the 

price of the Electronic Complex Order, 

the Customer orders in the individual 

leg markets will maintain priority. 

NYSE Amex notes that the various 

options exchange rule sets recognize 

that investors wishing to complete a 

complex strategy should not be 

encumbered by orders for a single leg. 

For instance, the markets for two call 

series is as follows: 

XYZ July 30: 2.20–2.40 10 × 10 

XYZ July 35: 1.10–1.25 10 × 10 

An Electronic Complex Order is 

entered to Buy 10 July 30/Sell 10 July 

35 for a Net Debit of 1.30. The Complex 

Matching Engine checks the 

Consolidated Book, and seeing there are 


erowe on DSK5CLS3C1PROD with NOTICES