Document ID: SEC-2010-1067-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NYSE Amex LLC
Posted Date: 2010-07-14T04:00Z

[Federal Register: July 14, 2010 (Volume 75, Number 134)]
[Notices]               
[Page 40860-40861]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr14jy10-116]                         

[[Page 40860]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-62462; File No. SR-NYSEAmex-2010-65]

 
Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by NYSE Amex LLC Amending Rule 
46--NYSE Amex Equities To Permit the Exchange Chairman To Designate 
More or Less Than Twenty (20) Floor Governors, as Needed

July 7, 2010.
    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 June 25, 2010, NYSE Amex LLC (the ``Exchange'' or ``NYSE 
Amex'') 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.
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    \1\ 15 U.S.C.78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend Rule 46--NYSE Amex Equities to 
permit the Exchange Chairman to designate more or less than twenty (20) 
Floor Governors, as needed. The text of the proposed rule change is 
available at the Exchange, the Commission's Web site at http://
www.sec.gov, 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 the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to amend Rule 46--NYSE Amex Equities (Floor 
Officials--Appointment) to permit the Exchange Chairman to designate 
more or less than twenty (20) Floor Governors, as needed.\4\
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    \4\ The Exchange's corporate affiliate, New York Stock Exchange 
LLC (``NYSE''), submitted a companion rule filing proposing 
corresponding amendments to NYSE Rule 46. See SR-NYSE-2010-50.
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    Current Rule 46--NYSE Amex Equities:
    NYSE Amex Equities Rule 46 permits the Chairman of the Exchange to, 
in consultation with the Executive Floor Governors of the Exchange and 
the NYSE Regulation (``NYSER'') Board of Directors, designate twenty 
(20) individual members as Floor Governors, subject to approval by the 
Exchange's Board of Directors.
    Pursuant to NYSE Amex Equities Rules 46 and 46A, Floor Governors 
are one of several ranks of the broader category of Floor Officials, 
including, in order of increasing seniority, Floor Officials, Senior 
Floor Officials, Executive Floor Officials, Floor Governors and 
Executive Floor Governors. As such, Floor Governors are drawn from the 
ranks of experienced NYSE Amex Equities Floor members.\5\
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    \5\ See Securities Exchange Act Release No. 57627 (April 4, 
2008), 73 FR 19919 (April 11, 2008) (SR-NYSE-2008-19, describing 
amendments to NYSE Rule 46, on which NYSE Amex Equities Rule 46 is 
based).
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    As part of the NYSER Board's advisory function, NYSER staff examine 
the fitness of the individuals designated as prospective Floor 
Officials and administer a mandatory education program, which all 
candidates for Floor Official, including Floor Governor, must complete. 
NYSER also administers a qualifying examination to newly-named Floor 
Officials, who must pass the exam prior to being recommended by the 
NYSER Board for appointment; however, upon being named as a Floor 
Governor, an individual does not need to retake the exam.\6\
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    \6\ See Securities Exchange Act Release No. 57627 (April 4, 
2008), 73 FR 19919 (April 11, 2008).
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    In addition to their regular obligations as either Floor brokers or 
Designated Market Makers, Floor Governors, who serve as volunteers, are 
empowered to perform such duties as are prescribed to them under the 
Rules of the Exchange. As noted above, under Rule 46--NYSE Amex 
Equities Floor Governors are also considered Floor Officials and may 
perform such duties as are prescribed to Floor Officials under Exchange 
Rules. In addition, Floor Governors may, as needed, perform any duty, 
make any decision, or take any action assigned to or required of an 
Executive Floor Governor in accordance with Exchange Rules, or as may 
be designated by the Exchange Board.
    For example, Floor Governors play a role in managing the Exchange's 
Trading Floor during unusual or volatile market situations. Under Rule 
123D--NYSE Amex Equities, members are to consult with a Floor Governor 
when the opening (reopening) price in a stock is anticipated to be at a 
significant disparity from the prior close. In addition, under Rule 
123D--NYSE Amex Equities an intra-day trading halt requires approval 
from a Floor Governor (or two Floor Officials). Under Rule 18--NYSE 
Amex Equities, Floor Governors are part of the Compensation Review 
Panel for resolving claims due to Exchange system failures. Pursuant to 
Rule 75--NYSE Amex Equities, Floor Governors are sometimes involved in 
the resolution of certain trade disputes. And, pursuant to Rule 
123C(9)--NYSE Amex Equities, a Floor Governor is sometimes also needed 
to supervise extreme order imbalances at the Close of trading when an 
Executive Floor Governor is unavailable.
    Proposed Amendments to Rule 46--NYSE Amex Equities:
    The Exchange proposes to amend Rule 46--NYSE Amex Equities to 
permit the Chairman of the Exchange to appoint more or less than twenty 
(20) Floor Governors, as needed.
    Currently, the Exchange has seventeen (17) Floor Governors. At the 
present time, the Exchange believes that adding more Floor Governors, 
as needed, will help the Exchange to manage the Trading Floor more 
effectively and, consequently, to better serve investors and the public 
interest. As the recent market events of May 6, 2010, demonstrated, 
swift response to unusual and volatile market events on the Trading 
Floor helped to limit the disruption of the market for Exchange-listed 
securities and the harm to Exchange customers, as well as the market as 
a whole, and Floor Governors were involved in this process.
    Notwithstanding the foregoing, removing the requirement to appoint 
a specific number of Floor Governors will not change the Exchange's 
goal of having, at all times, enough personnel on the Trading Floor, 
including Floor Officials, Senior Floor Officials, Executive Floor 
Officials, Floor Governors and Executive Floor Governors, as well as 
Exchange officers

[[Page 40861]]

and staff, to properly oversee the NYSE Amex Equities market.\7\ In 
addition, the Exchange does not propose to change in any way the nature 
of Floor Governor duties or responsibilities.
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    \7\ While the Exchange currently seeks the ability to appoint 
more than 20 Floor Governors, it reserves the right to have fewer 
than 20 Floor Governors as conditions warrant.
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Securities Exchange Act of 1934, as amended 
(the ``Act''),\8\ in general, and furthers the objectives of Section 
6(b)(5) of the Act,\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 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.
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    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(5).
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    The Exchange believes that the proposed rule change supports the 
objectives of the Act and will provide a benefit to the market while 
also protecting investors and the public interest. By having more Floor 
Governors, as currently needed, the Exchange believes it will be better 
able to manage the Trading Floor, particularly in unusual market 
conditions. In addition, while the Exchange currently seeks the ability 
to appoint more than 20 Floor Governors, it reserves the right to have 
fewer than 20 Floor Governors as conditions warrant and as required to 
protect 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)\11\ thereunder.
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    \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 Commission is waiving this five-day pre-filing requirement.
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    The Exchange has asked the Commission to waive the five-day 
prefiling requirement and the 30-day operative delay so that the 
proposal may become operative immediately upon filing. The Exchange has 
stated that it is requesting these waivers in light of recent market 
events and in connection with the Russell rebalancing on June 25, 2010, 
on which day the Exchange has stated that it expects an increase in 
trading volume and market volatility. 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 enable the 
Exchange to appoint more than twenty (20) Floor Governors to help the 
Exchange to manage the Trading Floor more effectively in time for the 
Russell rebalancing on June 25, 2010. For this reason, the Commission 
hereby waives the 30-day operative delay requirement and designates the 
proposed rule change as operative upon filing.\12\
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    \12\ For 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).
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    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 Comment

     Use the Commission's Internet comment form (http://
www.sec.gov/rules/sro.shtml); or
     Send an e-mail to rule-comments@sec.gov. Please include 
File Number SR-NYSEAmex-2010-65 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-NYSEAmex-2010-65. 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 Web site 
viewing and printing 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-NYSEAmex-2010-65 and should be submitted on or before 
August 4, 2010.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\13\
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    \13\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-17113 Filed 7-13-10; 8:45 am]
BILLING CODE 8010-01-P