Federal Register / Vol. 74, No. 141 / Friday, July 24, 2009 / Notices 36797 

11For purposes only of waiving the 30-day 

operative delay 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). 

12 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

Commission believes such waiver is 

consistent with the protection of 

investors and the public interest.11

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–NYSEArca–2009–65 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–2009–65. 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– 

NYSEArca–2009–65 and should be 

submitted on or before August 14, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–17631 Filed 7–23–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60318; File No. SR–NYSE– 

2009–63] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of a Proposed Rule Change by New 

York Stock Exchange LLC Amending 

NYSE Rule 2 To Redefine the Term 

‘‘Member Organization’’ 

July 16, 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 June 30, 

2009, New York Stock Exchange LLC 

(‘‘NYSE’’ or ‘‘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 Rule 2 to redefine the term 

‘‘member organization.’’ 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 

The Exchange is proposing to amend 

its rules to broaden the definition of a 

‘‘member organization’’ to include a 

registered broker or dealer that is not a 

member of the Financial Industry 

Regulatory Authority (‘‘FINRA’’) so long 

as the broker or dealer is a member of 

another registered securities exchange. 

However, member organizations that 

transact business with public customers 

or conduct business on the Floor of the 

Exchange must at all times be members 

of FINRA. The revised definition as 

proposed is consistent with the rules of 

other national securities exchanges that 

have been approved by the Commission. 

Under current NYSE Rule 2(b)(i), a 

registered broker or dealer must be a 

member of FINRA in order to qualify as 

a ‘‘member organization’’ of the 

Exchange and to be eligible for an NYSE 

trading license. Under this arrangement, 

FINRA is the DEA for all NYSE member 

organizations. Similarly, NYSE Rule 

2(b)(ii) provides that a registered broker 

or dealer can become a member 

organization, even though it does not 

own an NYSE trading license, if it 

agrees to be regulated as such by the 

Exchange, but only if it is a member of 

FINRA. The Exchange proposes to make 

membership more broadly available to 

other registered brokers or dealers who 

are not FINRA members but who are 

members of another registered securities 

exchange and do not transact business 

with public customers or conduct 

business on the Floor of the Exchange. 

The Exchange believes that this change 

can be made without any sacrifice of 

regulatory rigor. 

Under the proposed rule change, 

those NYSE member organizations that 

are also members of FINRA will 

continue to be regulated pursuant to the 

terms of the existing allocation plan 

pursuant to Rule 17d–2 of the Act 

among FINRA, NYSE, and NYSE 

Regulation, Inc. (‘‘NYSE Regulation’’), 

and FINRA will continue to be the DEA 

for these member organizations. For 

those NYSE member organizations that 

are not members of FINRA, but are 


srobinson on DSKHWCL6B1PROD with NOTICES
36798 Federal Register / Vol. 74, No. 141 / Friday, July 24, 2009 / Notices 

3Because the new class of member organization 

proposed in this rule filing would not be FINRA 

members, they would not be covered under an 

existing allocation plan among NYSE, NYSE 

Regulation, and NASD (k/n/a FINRA) pursuant to 

Rule 17d–2 under the Securities Exchange Act of 

1934, as amended (the ‘‘17d–2 Agreement’’). See 

Securities Exchange Act Release No. 56148 (July 26, 

2007), 72 FR 42146 (August 1, 2007) (Notice of 

Filing and Order Approving and Declaring Effective 

a Plan for the Allocation of Regulatory 

Responsibilities). Accordingly, pursuant to an 

amendment to an existing regulatory services 

agreement, NYSE Regulation will retain FINRA to 

provide regulatory services for certain NYSE rules 

defined as ‘‘Common Rules’’ under the 17d–2 

Agreement for any NYSE member organization that 

is not a FINRA member, starting from the effective 

date of this filing. 

4See BATS Rule 2.3. 

5See NSX Rules 2.3 and 2.4. 

6See Nasdaq Rule 1002(e). See also Nasdaq Rule 

1014(a)(3). 

7See Nasdaq Rule 0120(g). 

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

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

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

11 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6) requires a self-regulatory organization to give 

the Commission written notice of its intent to file 

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 has satisfied this 

requirement. 

12See, e.g., Securities Exchange Act Release Nos. 

58375 (August 18, 2008), 73 FR 49498 (August 21, 

2008) (order approving rules of BATs Exchange); 

53128 (January 13, 2006), 71 FR 3550 (January 23, 

2006) (order approving rules of the Nasdaq Stock 

Market LLC). 

13For 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). 

members of another registered securities 

exchange, NYSE Regulation will 

provide for the exercise of certain of its 

regulatory responsibilities with respect 

to these member organizations pursuant 

to an amendment to an existing 

regulatory services agreement among 

NYSE, NYSE Regulation, and FINRA.3

The Exchange believes that the 

proposed rule change is consistent with 

the rules of other registered national 

securities exchanges that have 

previously been approved by the 

Commission. For example, the rules of 

BATS Exchange, Inc. (‘‘BATS’’) provide 

that ‘‘any registered broker or dealer 

which is a member of another registered 

national securities exchange or 

association or any person associated 

with such a registered broker or dealer 

shall be eligible’’ to be a member of that 

exchange.4 Stated otherwise, to be 

eligible for BATS membership, a firm 

must be a member of either FINRA or 

another registered national securities 

exchange. Similarly, the rules of 

National Stock Exchange, Inc. (‘‘NSX’’) 

contain no requirement for FINRA 

membership in its eligibility 

requirements and restrictions applicable 

to a registered broker or dealer that 

seeks to become an ETP Holder on that 

Exchange.5

Finally, the rules of The NASDAQ 

Stock Market LLC (‘‘Nasdaq’’) provide 

for membership in Nasdaq of a 

registered broker or dealer that is either 

a member of FINRA or a member of 

another registered securities exchange, 

with the additional requirement (also 

being proposed herein by the Exchange) 

that ‘‘Nasdaq members that transact 

business with customers shall at all 

times be members of FINRA.’’ 6 The 

term ‘‘customers’’ in the foregoing 

sentence refers to public customers and 

does not include brokers or dealers.7

2. Statutory Basis 

The proposed rule change is 

consistent with Section 6(b) 8 of the Act, 

in general, and furthers the objectives of 

Section 6(b)(5) 9 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 cooperation and 

coordination with persons engaged in 

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. More specifically, the 

NYSE believes that, by (i) expanding the 

number of registered brokers and 

dealers that are eligible to become NYSE 

member organizations and trade on the 

Exchange, while maintaining high 

regulatory standards with respect to 

such firms, and (ii) aligning NYSE 

membership requirements more closely 

with those of other registered securities 

exchanges, the proposed rule change 

will contribute to perfecting the 

mechanism of a free and open market 

and a national market system, which 

outcomes are also 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 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 foregoing proposed rule 

change does not: (i) Significantly affect 

the protection of investors or the public 

interest; (ii) impose any significant 

burden on competition; and (iii) 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, it has 

become effective pursuant to 19(b)(3)(A) 

of the Act 10 and Rule 19b–4(f)(6) 

thereunder.11

The Exchange has requested that the 

Commission waive the 30-day operative 

delay so that the Exchange may expand 

the number of registered brokers and 

dealers that are eligible to become NYSE 

member organizations and trade on the 

Exchange without delay. The 

Commission has determined that 

waiving the 30-day operative delay of 

the Exchange’s proposal is consistent 

with the protection of investors and the 

public interest because such waiver will 

enable the Exchange to extend Exchange 

membership to registered broker-dealers 

that are members of other exchanges in 

a manner that is consistent with the 

rules of other exchanges, which 

previously were approved by the 

Commission.12 Therefore, the 

Commission designates the proposal 

operative upon filing.13

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–NYSE–2009–63 on the 

subject line. 


srobinson on DSKHWCL6B1PROD with NOTICES
Federal Register / Vol. 74, No. 141 / Friday, July 24, 2009 / Notices 36799 

14 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3As part of the relocation of NYSE Amex equities 

trading to trading systems and facilities located at 

11 Wall Street, New York, New York, NYSE Amex 

adopted NYSE Rules 1–1004, subject to such 

changes as necessary to apply the Rules to the 

Exchange, as the NYSE Amex Equities Rules to 

govern trading on the NYSE Amex Trading 

Systems. The NYSE Amex Equities Rules, which 

became operative on December 1, 2008, are 

substantially identical to the current NYSE Rules 

1–1004 and the Exchange continues to update the 

NYSE Amex Equities Rules as necessary to conform 

with rule changes to corresponding NYSE Rules 

filed by the New York Stock Exchange LLC 

(‘‘NYSE’’). See Securities Exchange Act Release 

Nos. 58705 (Oct. 1, 2008), 73 FR 58995 (Oct. 8, 

2008) (SR–Amex–2008–63); 58833 (Oct. 22, 2008), 

73 FR 64642 (Oct. 30, 2008) (SR–NYSE–2008–106); 

58839 (Oct. 23, 2008), 73 FR 64645 (Oct. 30, 2008) 

(SR–NYSEALTR–2008–03); 59022 (Nov. 26, 2008), 

73 FR 73683 (Dec. 3, 2008) (SR–NYSEALTR–2008– 

10); and 59027 (Nov. 28, 2008), 73 FR 73681 (Dec. 

3, 2008) (SR–NYSEALTR–2008–11). The Exchange 

is filing this rule proposal as a companion filing to 

a rule proposal filed by the NYSE. See SR–NYSE– 

2009–63. 

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–2009–63. 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, 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–NYSE–2009–63 and should 

be submitted on or before August 14, 

2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.14

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–17630 Filed 7–23–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60317; File No. SR– 

NYSEAmex–2009–36] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of a Proposed Rule Change by NYSE 

Amex LLC Amending NYSE Amex 

Equities Rule 2 To Redefine the Term 

‘‘Member Organization’’ 

July 16, 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 June 30, 

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 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 Amex Equities Rule 2 to redefine 

the term ‘‘member organization.’’ 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 

The Exchange is proposing to amend 

its rules to broaden the definition of a 

‘‘member organization’’ to include a 

registered broker or dealer that is not a 

member of the Financial Industry 

Regulatory Authority (‘‘FINRA’’) so long 

as the broker or dealer is a member of 

another registered securities exchange. 

However, member organizations that 

transact business with public customers 

or conduct business on the Floor of the 

Exchange must at all times be members 

of FINRA. The revised definition as 

proposed is consistent with the rules of 

other national securities exchanges that 

have been approved by the 

Commission.3

Under current NYSE Amex Equities 

Rule 2(b)(i), a registered broker or dealer 

must be a member of FINRA in order to 

qualify as a ‘‘member organization’’ of 

the Exchange and to be eligible for an 

NYSE Amex equities trading license. 

Under this arrangement, FINRA is the 

DEA for all NYSE Amex equities 

member organizations. Similarly, NYSE 

Amex Equities Rule 2(b)(ii) provides 

that a registered broker or dealer can 

become a member organization, even 

though it does not own an NYSE Amex 

equities trading license, if it agrees to be 

regulated as such by the Exchange, but 

only if it is a member of FINRA. The 

Exchange proposes to make membership 

more broadly available to other 

registered brokers or dealers who are not 

FINRA members but who are members 

of another registered securities exchange 

and do not transact business with public 

customers or conduct business on the 

Floor of the Exchange. The Exchange 

believes that this change can be made 

without any sacrifice of regulatory rigor. 

Under the proposed rule change, 

those NYSE Amex equities member 

organizations that are also members of 

FINRA will be regulated pursuant to the 

terms of an allocation plan pursuant to 

Rule 17d–2 of the Act among FINRA, 

New York Stock Exchange LLC 

(‘‘NYSE’’), NYSE Amex, and NYSE 

Regulation, Inc. (‘‘NYSE Regulation’’), 


srobinson on DSKHWCL6B1PROD with NOTICES