36796 Federal Register / Vol. 74, No. 141 / Friday, July 24, 2009 / Notices 

11 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3NYSE Arca Equities Rule 7.31(w). 

4NYSE Arca Equities Rule 1.1(a). The term 

‘‘NYSE Arca Book’’ shall refer to the NYSE Arca 

Marketplace’s electronic file of orders, which 

contains all the User’s orders in each of the Directed 

Order, Display Order, Working Order and Tracking 

Order Processes. 

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). 

9 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6)(iii) 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 complied with this 

requirement. 

10 Id. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–17632 Filed 7–23–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60321; File No. SR– 

NYSEArca–2009–65] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Amending NYSE Arca 

Equities Rule 7.31(mm) 

July 16, 2009. 

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

Securities Exchange Act of 1934 (the 

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

notice is hereby given that, on June 8, 

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

the ‘‘Exchange’’) 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 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(mm) 

governing the PNP (Post No Preference) 

Blind orders. 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. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The purpose of this rule filing is to 

amend the definition and operation of 

PNP Blind orders under NYSE Arca 

Equities Rule 7.31(mm). A PNP Blind 

order is a PNP Order 3 priced at or 

through the Best Protected Bid or Best 

Protected Offer (‘‘PBBO’’) that is 

displayed on the NYSE Arca Book 4 at 

the price of the contra quote. The 

priority and execution of PNP Blind 

orders are governed by the Exchange’s 

Display Order Process set forth in Rule 

7.36. Presently, pursuant to 

7.31(mm)(4), marketable contra orders 

execute first against PNP Blind orders, 

then the rest of the book. Pursuant to 

this proposal, the Exchange seeks to 

clarify that where a PNP Blind order is 

un-displayed, any displayed order 

priced at or through the PBBO will take 

priority over the un-displayed PNP 

Blind order at the same prices. Of 

course, once a PNP Blind order is 

displayed, it will be ranked in price/ 

time priority with all other orders. 

Example 

10:03:00 PBBO: $15.00 to $15.05 

10:03:30 B1 PNPB Buy 1000 at 15.10 

(order is booked at $15.05, undisplayed) 

10:03:45 B2 PNP ISO Buy 1000 at 

$15.05 (order is immediately 

posted) 

10:04:00 S1 Sell 1000 at $15.05 

Results Currently: S1 interacts with 

un-displayed order B1 

Revised Results: S1 trades with 

displayed order B2. 

The Exchange believes that amending 

this functionality is consistent with its 

Display Order Process which favors 

executing displayed liquidity before undisplayed liquidity. 

2. Statutory Basis 

The proposed rule change is 

consistent with Section 6(b) 5 of the 

Securities Exchange Act of 1934 (the 

‘‘Exchange 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 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. The proposed rule change 

clarifies PNP Blind order functionality 

consistent with its Display Order 

Process. 

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: (i) Does not significantly affect 

the protection of investors or the public 

interest; (ii) does not impose any 

significant burden on competition; and 

(iii) by its terms, does not 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)(iii) 10 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 so that the proposal may become 

operative immediately upon filing. The 


srobinson on DSKHWCL6B1PROD with NOTICES
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