36794 Federal Register / Vol. 74, No. 141 / Friday, July 24, 2009 / Notices 

10 17 CFR 240.19b–4(f)(6)(iii). 

11 Id. 

12For purposes only of waiving the operative 

delay for this proposal, the Commission has 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

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

13 17 CFR 200.30–3(a)(12). 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4 15 U.S.C. 78s(b)(3)(A). 

5 17 CFR 240.19b–4(f)(2). 

6See Securities and Exchange Act Release No. 

60191 (June 30, 2009), 74 FR 32660 (July 8, 

2009)(Notice of Filing and Immediate Effectiveness 

for NYSEArca–2009–58). 

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 

ISE requests that the Commission waive 

the 30-day operative delay, as specified 

in Rule 19b–4(f)(6)(iii),11 which would 

make the rule change operative upon 

filing. The Commission believes that 

waiving the 30-day operative delay is 

consistent with the protection of 

investors and the public interest 

because such waiver will allow the pilot 

periods to continue without 

interruption.12 Accordingly, the 

Commission designates the proposed 

rule change operative upon filing with 

the Commission. 

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 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–ISE–2009–52 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–2009–52. 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–ISE–2009–52 and should be 

submitted on or before August 14, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–17634 Filed 7–23–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60322; File No. SR– 

NYSEArca–2009–68] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Implementing the 

Schedule of Fees and Charges for 

Exchange Services 

July 16, 2009. 

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

Securities Exchange Act of 1934 (the 

‘‘Act’’) 2 and Rule 19b–4 thereunder,3

notice is hereby given that, on July 10, 

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, II, and 

III below, which Items have been 

prepared by the self-regulatory 

organization. NYSE Arca filed the 

proposal pursuant to Section 

19(b)(3)(A) 4 of the Act and Rule 19b– 

4(f)(2) 5 thereunder. 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 the 

Schedule of Fees and Charges for 

Exchange Services (the ‘‘Schedule’’). 

While changes to the Schedule pursuant 

to this proposal will be effective upon 

filing, the changes will become 

operative on July 13, 2009. 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 

On June 30, 2009 the Exchange filed 

with the Commission a rule change 

adding four new Self Trade Prevention 

(‘‘STP’’) Modifiers.6 The new STP 

functionality allows Equity Trading 

Permit (‘‘ETP’’) Holders entering orders 

into the system to elect to prevent those 

orders from executing against other 

orders entered into the System by the 

same ETP Holder. Pursuant to this 

proposal the Exchange seeks to add to 

the Schedule a credit and fee for orders 

returned to an ETP Holder using the 

STP Modifiers. 

ETP Holders entering an incoming 

order with either the STP Cancel Both 

(‘‘STPC’’) or the STP Decrement and 

Cancel (‘‘STPD’’) Modifier will be 

charged $0.0030 per share for orders 


srobinson on DSKHWCL6B1PROD with NOTICES
Federal Register / Vol. 74, No. 141 / Friday, July 24, 2009 / Notices 36795 

7 15 U.S.C. 78f(b). 

8 15 U.S.C. 78f(b)(4). 

9 15 U.S.C. 78s(b)(3)(A). 

10 17 CFR 240.19b–4(f)(2). 

returned to the ETP Holder. The ETP 

Holders [sic] corresponding resting 

order marked with any of the STP 

Modifiers that interacts with an 

incoming STPC or STPD Modifier will 

be credited $0.0029 per share for orders 

returned to the ETP Holder. ETP 

Holders entering an incoming order 

with either the STP Cancel Newest 

(‘‘STPN’’) or the STP Cancel Oldest 

(‘‘STPO’’) Modifier will not be credited 

or charged any fees. Similar to the way 

in which STP Modifiers interact, the 

incoming order with an STP Modifier 

controls the fees charged. 

Example 1: 

—A STPN (or STPO) Order is entered by 

an ETP Holder and is resting in the 

NYSE Arca Book. 

—A STPC (or STPD) Order is 

subsequently entered by the same ETP 

Holder and is marketable against the 

STPN (or STPO) Order. 

—The ETP Holder is credited $0.0029 

per share for the resting STP Order 

and charged $0.0030 per share for the 

incoming STPC (or STPD) Order. 

Example 2: 

—A STPC (or STPD) Order is entered by 

an ETP Holder and is resting in the 

NYSE Arca Book [sic]. 

—A STPN (or STPO) Order is 

subsequently entered by the same ETP 

Holder and is marketable against the 

STPC (or STPD) Order. 

—The ETP Holder is not credited or 

charged a fee for either order returned 

back to the ETP Holder. 

On incoming orders marked with the 

STPD Modifier, both orders will be 

cancelled back to the ETP Holder if the 

orders are equivalent in size. If the 

orders are not equivalent in size, the 

equivalent size will be cancelled back to 

the ETP Holder and the larger order will 

be decremented by the size of the 

smaller order with the balance 

remaining on the NYSE Arca Book. For 

billing purposes, only the size of the 

portion of the orders cancelled back to 

the ETP Holder will be charged or 

credited. For example, if an incoming 

1000 share STPD Order interacts with a 

resting 200 share STP Order from the 

same ETP ID, the ETP Holder will be 

credited and charged for the 200 shares 

that were cancelled back. 

On incoming orders marked with the 

STPC Modifier, the entire size of both 

orders will be cancelled back to ETP 

Holder. However, for billing purposes, 

incoming orders marked with the STPC 

Modifier will only be charged or 

credited up to the equivalent size of 

both orders. For example, if an 

incoming 200 share STPC Order 

interacts with a resting 1000 share STP 

Order, the ETP Holder will only be 

charged and credited for the equivalent 

size, which is 200 shares. Similarly, if 

an incoming 1000 share STPC Order 

interacts with a 200 share resting STP 

Order, the ETP Holder will only be 

charged and credited for 200 shares. 

The Exchange plans to implement 

these new fees and credits in 

conjunction with the implementation of 

this STP functionality scheduled for 

July 13, 2009. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the provisions of Section 6 of the 

Securities Exchange Act of 1934 (the 

‘‘Act’’),7 in general, and Section 6(b)(4) 

of the Act,8 in particular, in that it is 

designed to provide for the equitable 

allocation of reasonable dues, fees, and 

other charges among its members and 

other persons using its facilities. 

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 

The foregoing proposed rule change is 

effective upon filing pursuant to Section 

19(b)(3)(A) 9 of the Act and 

subparagraph (f)(2) of Rule 19b–4 10

thereunder, because it establishes a due, 

fee, or other charge imposed by NYSE 

Arca. 

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–2009–68 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–2009–68. 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–NYSEArca–2009–68 and 

should be submitted on or before 

August 14, 2009. 


srobinson on DSKHWCL6B1PROD with NOTICES
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