Document ID: SEC-2009-1431-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by NYSE Amex LLC Amending NYSE Amex Equities Rule 128 Governing Clearly Erroneous Executions for NYSE Amex Equities
Posted Date: 2009-10-08T04:00Z

[Federal Register: October 8, 2009 (Volume 74, Number 194)]
[Notices]               
[Page 51921-51926]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr08oc09-103]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-60782; File No. SR-NYSEAmex-2009-69]

 
Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by NYSE Amex LLC Amending NYSE 
Amex Equities Rule 128 Governing Clearly Erroneous Executions for NYSE 
Amex Equities

October 2, 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 October 2, 2009, NYSE Amex LLC (``Exchange'' or ``NYSE Amex'') 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 Exchange. NYSE Amex has designated the 
proposed rule change as constituting a rule change under Rule

[[Page 51922]]

19b-4(f)(6) under the Act,\3\ which renders the proposal effective upon 
filing with the Commission. 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\ 17 CFR 240.19b-4.
    \3\ 17 CFR 240.19b-4(f)(6).
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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 NYSE Amex Equities Rule 128 (Clearly 
Erroneous Executions for NYSE Amex Equities) governing clearly 
erroneous executions for NYSE Amex equities. 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 proposes to amend Rule 128 in order to improve the 
Exchange's policies and procedures regarding clearly erroneous 
executions that occur on the NYSE Amex equities and on other national 
market centers. The proposed changes are part of a market-wide effort 
designed to provide transparency and finality with respect to clearly 
erroneous executions. This effort seeks to achieve consistent results 
for participants across U.S. equities exchanges while maintaining a 
fair and orderly market, protecting investors and protecting the public 
interest. The proposed changes are more fully discussed below.
Definition
    The Exchange will maintain the meaning of the definition of a 
clearly erroneous execution, but proposes to add clarifying language 
with respect to cancelled trades. The proposed change identifies that 
when a clearly erroneous execution occurs and both parties agree to 
cancel the execution and when a trade is determined by the Exchange to 
be clearly erroneous such executions will be removed ``from the 
Consolidated Tape.'' \4\ A trade will be removed from the Consolidated 
Tape only when the determination is deemed final and any applicable 
appeals have been exhausted.
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    \4\ For purposes of this Rule, ``removed from the Consolidate 
Tape'' means that a subsequent message will be sent to the 
Consolidated Tape indicating that a previously executed trade has 
been cancelled.
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Member or Member Organization Initiated Review Requests
    The Exchange proposes to amend Rule 128 to update the procedures 
for requesting a review of a clearly erroneous execution. First, and 
throughout Rule 128, the term ``Officer'' will be defined as an Officer 
of the Exchange or such other senior level employee designee. Next, the 
proposed rule will require that requests for review be made by 
electronic mail (``e-mail'') or other electronic means specified from 
time to time by the Exchange, except for market participants who trade 
on the Floor of the Exchange, who will continue to be permitted to make 
such requests for review in person on the Floor of the Exchange. 
Requiring requests for review to be made electronically, except those 
requests made in person on the Floor of the Exchange, creates a 
standard format that can easily be logged and tracked. The Exchange 
will continue to publish the e-mail address and other electronic means 
to be used for all clearly erroneous filings in a circular distributed 
to members and member organizations.
    The Exchange further proposes that requests for review must be 
received by the Exchange within thirty (30) minutes of the execution 
time for orders initially routed to and executed on the Exchange. The 
Exchange proposes that members and member organizations submit certain 
essential identifying information with the request including the time 
of the execution(s), security symbol(s), number of shares, price(s), 
side (bought or sold), and factual basis for believing that the trade 
is clearly erroneous. The current rule requires requests for review to 
be received within fifteen (15) minutes of the execution and does not 
specify what information is required. The Exchange believes that thirty 
(30) minutes is an appropriate time frame that offers the requesting 
party sufficient time to gather and submit all required information.
    The proposed rule also requires the Exchange to notify the 
counterparty to a trade upon receipt of a timely filed request for 
review that satisfies the Numerical Guidelines set forth within the 
rule. This proposed language eliminates the requirement that 
counterparties be notified of every request for a ruling and instead 
requires notice only when a request is filed in a timely manner and 
satisfies the Numerical Guidelines. This change alleviates the burden 
on the Exchange of notifying the counterparty when a request for review 
does not merit a ruling.
    The Exchange proposes to amend Rule 128 to allow an Officer to 
request additional information from each party to an execution under 
review. Parties to an execution under review will have thirty (30) 
minutes from the time of the request to provide additional supporting 
information.
Routed Executions
    The Exchange proposes to give other market centers an additional 
thirty (30) minutes from the receipt of their participant's timely 
filing to request a ruling, but no longer than sixty (60) minutes from 
the time of the execution under review. This provision accounts for 
those executions initially directed to an away market center and 
subsequently routed by that away market center to the Exchange.
    For example, assume an order is initially routed by a participant 
to Market Center A and subsequently routed to the NYSE Amex where the 
order is executed at a price outside of the Numerical Guidelines. This 
provision generally requires Market Center A to file with the Exchange 
within thirty (30) minutes from the time it receives its participant's 
timely filed request for review. This provision caps the filing 
deadline for an away market center at sixty (60) minutes from the time 
of the execution under review.
Threshold Factors
    Currently, the Exchange's Clearly Erroneous Execution rule does not 
identify specific numeric guidelines for determining what constitutes a 
clearly erroneous execution. The current rule simply provides that ``an 
Officer of the Exchange * * * shall review the transaction * * * and 
determine whether it is clearly erroneous, with a view toward 
maintaining a fair and orderly market and the protection of investors 
and the public interest.'' \5\ In practice, the Exchange currently 
incorporates the internal guidelines in the Exchange's Clearly 
Erroneous Execution policy. The Exchange proposes adding certain 
numerical

[[Page 51923]]

thresholds to the Rule that explicitly state what constitutes, among 
other factors, a possible clearly erroneous execution.
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    \5\ NYSE Amex Equities Rule 128(b).
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Numerical Guidelines
    The proposed Numerical Guidelines state that an execution executed 
during the regular trading hours and after hours of the Exchange may be 
found to be clearly erroneous only if the price of the execution to buy 
is greater, or less in the case of a sale, than the Reference Price by 
an amount that equals or exceeds the numerical guidelines for a 
particular execution category. The execution time of the transaction 
under review determines whether the Numerical Guideline applied is for 
the regular trading hours or the after hours of the Exchange. The 
Reference Price shall be equal to the Consolidated Last Sale 
immediately prior to the execution under review, unless unusual 
circumstances are present. The proposed guidelines for sales greater 
than $0.00 up to and including $25.00 are 10% for the regular trading 
hours and 20% for the after hours of the Exchange. The proposed 
guidelines for sales greater than $25.00 up to and including $50.00 are 
5% for the regular trading hours and 10% for the after hours of the 
Exchange. The proposed guidelines for sales greater than $50.00 are 3% 
for the regular trading hours and 6% for the after hours of the 
Exchange. A filing involving five or more securities by the same member 
or member organization will be aggregated into a single filing called a 
``Multi-Stock Event.'' In the case of a Multi-Stock Event, the proposed 
guidelines are 10% per security for the regular trading hours and after 
hours of the Exchange. In the case of Leveraged ETF/ETN securities, the 
above guidelines are to be multiplied by the leverage multiplier of the 
security. Executions that do not meet or exceed the Numerical 
Guidelines will not be eligible for review under this section. The 
following chart summarizes the proposed Numerical Guidelines.

------------------------------------------------------------------------
                                   Regular  trading
                                     hours of the     After hours of the
                                  exchange numerical  exchange numerical
                                      guidelines           guidelines
  Reference price: Consolidated        (subject            (subject
            last sale                execution's %       execution's %
                                    difference from     difference from
                                   the consolidated    the consolidated
                                      last sale)          last sale)
------------------------------------------------------------------------
Greater than $0.00 up to and      10%...............  20%.
 including $25.00.
Greater than $25.00 up to and     5%................  10%.
 including $50.00.
Greater than $50.00.............  3%................  6%.
Multi-Stock Event--Filings        10%...............  10%.
 involving five or more
 securities by the same member
 or member organization will be
 aggregated into a single filing.
Leveraged ETF/ETN securities....  Regular Trading     After Hours of the
                                   Hours of the        Exchange
                                   Exchange            Numerical
                                   Numerical           Guidelines
                                   Guidelines          multiplied by the
                                   multiplied by the   leverage
                                   leverage            multiplier (i.e.
                                   multiplier (i.e.    2x).
                                   2x).
------------------------------------------------------------------------

    Establishing Numerical Guidelines within the Rule brings regulatory 
transparency and consistency in the application of the rules of the 
Exchange. These Numerical Guidelines represent the general consensus 
approach and were developed based on the collective experiences of a 
market-wide group. The Exchange believes that the thresholds 
established are fair and appropriate and apply evenly to all 
participants.
Unusual Circumstances
    The Exchange further proposes that in Unusual Circumstances the 
Exchange may, in its discretion and with a view toward maintaining a 
fair and orderly market and the protection of investors and the public 
interest, use a Reference Price other than the consolidated last sale. 
Unusual Circumstances may include periods of extreme market volatility, 
sustained illiquidity, or widespread system issues. Other Reference 
Prices that the Exchange may use would include the consolidated inside 
price, the consolidated opening price, the consolidated prior close, or 
the consolidated last sale prior to a series of executions.
    The following example explains the use of a Reference Price equal 
to the consolidated last sale prior to a series of executions.
    ABC has a consolidated last sale of $10.00. During the regular 
trading hours of the Exchange Customer A enters a market order to buy 
10,000 shares, although it had intended a market order for 1,000 
shares. The size of the order is such that the order sweeps the NYSE 
Amex Display Book, which reflects 1,000 shares of liquidity offered at 
each of following prices. Executions occur, moving through the depth of 
Book, as follows:

Trade 1-1,000 shares @ $10.00 (9,000 remaining)
Trade 2-1,000 shares @ $10.20 (8,000 remaining)
Trade 3-1,000 shares @ $10.40 (7,000 remaining)
Trade 4-1,000 shares @ $10.60 (6,000 remaining)
Trade 5-1,000 shares @ $10.80 (5,000 remaining)
Trade 6-1,000 shares @ $11.00 (4,000 remaining)
Trade 7-1,000 shares @ $11.20 (3,000 remaining)
Trade 8-1,000 shares @ $11.40 (2,000 remaining)
Trade 9-1,000 shares @ $11.60 (1,000 remaining)
Trade 10-1,000 shares @ $11.80 (complete)

    Thus, to be eligible for review, an execution must be at a price 
that is at least 10% higher than the consolidated last sale prior to 
the series of executions. Customer A could request a ruling for trades 
6 through 10, priced at $11.00 and above, but trades 
1 through 5 would not be eligible for review.
    Under the proposed rule the Exchange may also use a higher 
Numerical Guideline if, after market participants have been alerted to 
erroneous activity, the price of the security returns toward its prior 
trading range but continues to trade at a price beyond the Numerical 
Guidelines.
Joint Market Rulings
    In the interest of achieving consistency across markets, the 
Exchange proposes that, in events that involve other markets, the 
Exchange would have the ability to use a different Reference Price and/
or Numerical Guideline. In these instances the Reference Price would be 
determined based on a consensus among the Exchanges where the 
executions occurred. Furthermore, when a ruling is made across markets, 
the Exchange may determine that the ruling is not eligible

[[Page 51924]]

for appeal because immediate finality is necessary to maintain a fair 
and orderly market and to protect investors and the public interest. 
While the Exchange will coordinate its review of a clearly erroneous 
execution with other affected market centers with the goal of rendering 
consistent results across the market, the Exchange is not bound by 
joint market rulings when such rulings would violate other NYSE Amex 
equities rules or are inconsistent with internal policies of the 
Exchange.
Additional Factors
    The proposed amendments to Rule 128 also enumerate some additional 
factors that an Officer may consider when determining whether an 
execution is clearly erroneous. These factors include, but are not 
limited to, system malfunctions or disruptions, volume and volatility 
for the security, derivative securities products that correspond to 
greater than 100% in the direction of a tracking index, news released 
for the security, whether trading in the security was recently halted/
resumed, whether the security is an IPO, whether the security was 
subject to a stock-split, reorganization, or other corporate action, 
overall market conditions, Opening and Late Session executions, 
validity of the consolidated tape's trades and quotes, consideration of 
primary market indications, Liquidity Replenishment Points (``LRPs''), 
Depth Guidelines and executions inconsistent with the trading pattern 
in the stock. Each additional factor shall be considered with a view 
toward maintaining a fair and orderly market, the protection of 
investors and the public interest.
Numerical Guidelines Applicable to Volatile Market Opens
    The Exchange proposes to give the Exchange the ability to expand 
the Numerical Guidelines applicable to executions occurring between 
9:30 a.m. and 10 a.m. based on the disseminated value of the S&P 500 
Futures at 9:15 a.m. When the S&P Futures are up or down 3% up to but 
not including 5% at 9:15 a.m., the Numerical Guidelines are doubled. 
When the S&P Futures are up or down 5% or greater at 9:15 a.m., the 
Numerical Guidelines are tripled. The Exchange believes that the S&P 
500 futures contract is an appropriate and reliable barometer of market 
activity prior to the market opening due to its broad based market 
coverage and deep liquidity. Using the S&P 500 Futures disseminated 
value at 9:15 a.m. as the barometer of market activity, the Exchange is 
providing a transparent means of offering adjusted guidelines in times 
of volatile market activity.
Outlier Executions
    The proposed amendments to Rule 128 provide that the Officer may 
consider requests for review received after thirty (30) minutes, but 
not longer than sixty (60) minutes after the execution in question in 
the case of an Outlier Execution. An Outlier Execution is an execution 
where, (1) the execution price of the security is greater than three 
times the current Numerical Guidelines, or (2) the execution price of 
the security breaches the 52-week high or low, in which case the 
Exchange may consider Additional Factors to determine if the execution 
qualifies for review or if the Exchange shall decline to act.
Review Procedures
Initial Determination
    Under the current rule, if the Officer determines that the 
execution is not clearly erroneous, the Officer shall not take any 
action in connection with the completed execution. In the event that 
the Officer determines that the execution in dispute is clearly 
erroneous, the Officer shall either declare the execution null and void 
or modify one or more of the terms of the transaction to achieve an 
equitable rectification of the error that would place the parties in 
the same position, or as close as possible to the same position that 
they would have been in, had the error not occurred. In the proposed 
rule, in the event the Officer determines there is a clearly erroneous 
execution, the Officer may declare the execution null and void or, if 
such transaction occurred only on the Exchange and no contemporaneous 
transaction(s) occurred on another market center(s) at a price that 
meets or exceeds the applicable Numerical Guidelines and if the 
Exchange has no actual knowledge of a clearly erroneous execution 
review of a contemporaneous transaction of the subject security on 
another market center, modify one or more of the terms of the 
transaction to achieve an equitable rectification of the error that 
would place the parties in the same position, or as close as possible 
to the same position that they would have been in, had the error not 
occurred.
    For purposes of the proposed Rule, a transaction will be considered 
to have been contemporaneous if it was reported to the Consolidated 
Tape within a reasonable time frame of the transaction under review. 
Such time frame shall be determined by the Officer at the time of the 
clearly erroneous determination based on the liquidity of the relevant 
security, but shall in no case be less than one (1) second before or 
after the time of execution on the Exchange. In assessing whether there 
was a contemporaneous transaction on another market center, the 
Exchange will consider the existence of any clearly erroneous review of 
a transaction in the subject security on another market center of which 
it has actual knowledge, which may be indicative that the transaction 
under review on such other market center was contemporaneous with the 
transaction under review on the Exchange. However, the Exchange will 
not be required to initiate communication with other market centers to 
determine the existence of any such review(s).
    For purposes of the proposed rule, whenever the rule provides 
authority for the Officer to modify or adjust a clearly erroneous 
execution, in addition to the Officer's ability to declare a clearly 
erroneous execution null and void, the Officer's authority to modify or 
adjust the clearly erroneous execution is subject to the conditions 
that there were no contemporaneous transactions on other markets and 
that the Exchange had no actual knowledge of a clearly erroneous 
execution review of a contemporaneous transaction of the subject 
security on another market center, as described above.
    The Exchange also proposes adding language stating that a 
determination shall be made generally within thirty (30) minutes of 
receipt of the complaint, but in no case later than the start of the 
regular trading hours of the Exchange on the following trading day. 
Rulings made outside of thirty (30) minutes by an Officer will not fail 
for lack of timeliness. The guideline simply provides participants an 
appropriate expectation that a ruling will generally be made within 
thirty (30) minutes and in no case later than the start of the regular 
trading hours of the Exchange on the following trading day.
Appeals
    The Exchange proposes to amend the appeals procedure for trades 
that are deemed to be clearly erroneous. First, the Exchange will no 
longer accept appeal requests via facsimile. Similar to the proposed 
language for an initial request for a ruling, all appeal requests must 
be made via e-mail, except for those requests for appeals from Exchange 
members who trade on the Floor of the Exchange. Members who trade on 
the Floor of the Exchange may also submit requests for appeals in 
person from the Floor.
    The current rule provides that the Exchange shall review and render 
a

[[Page 51925]]

decision upon an appeal within a timeframe provided by the Exchange. 
The proposed rule offers more definite guidelines to ensure the 
expedient resolution of appeals. It requires the Exchange to review 
appeals as soon as practicable, but generally on the same day as the 
executions under review. Appeal requests received between 3 ET and the 
close of trading should be made as soon as practicable, but in no case 
later than the trading day following the date of the execution under 
review. Appeal decisions will not fail for lack of timeliness. This 
revised provision provides participants a reasonable expectation of 
when a ruling on appeal will generally be made.
    Further, the proposed rule declares that any determination made by 
an Officer or by the CEE Panel shall be rendered without prejudice as 
to the right of the parties to the execution to submit their dispute to 
arbitration. This provision simply clarifies the fact that nothing in 
the proposed rule limits or impedes the rights of the parties to 
arbitrate their dispute.
System Disruption and Malfunctions
    Currently, within the System Disruptions and Malfunctions section 
of the Rule, after an Officer determines that a trade was clearly 
erroneous he may declare the execution null and void or modify the 
trade to attempt to achieve an equitable rectification of the error. 
Under the proposed rule, when the Office determines that an execution 
is clearly erroneous, the officer shall either declare the transaction 
null and void or, if such transaction occurred only on the Exchange and 
no contemporaneous transaction(s) occurred on another market center(s) 
at a price that meets or exceeds the applicable Numerical Guidelines 
and if the Exchange has no actual knowledge of a clearly erroneous 
execution review of a contemporaneous transaction of the subject 
security on another market center, modify one or more of the terms of 
the transaction to achieve an equitable rectification of the error that 
would place the parties in the same position, or as close as possible 
to the same position that they would have been in, had the error not 
occurred. This rule change supports the goal to provide market-wide 
consistency to the resolution of clearly erroneous executions that 
occur on multiple markets.
    The proposed rule also provides that, in the event of a disruption 
or a malfunction, the Officer will rely on the proposed Numerical 
Guidelines in determining whether an execution is clearly erroneous. 
However, the Officer may also use a lower Numerical Guideline if 
necessary to maintain a fair and orderly market, protect investors, and 
protect the public interest. The proposed rule also adds that actions 
taken under these circumstances must be taken within thirty (30) 
minutes of detection of the erroneous execution in the ordinary case, 
and by no later than the start of the regular trading hours of the 
Exchange on the day following the date of the execution under review 
when extraordinary circumstances exist.
Officers Acting on Their Own Motion
    The Exchange proposes to add a section to the Rule that will grant 
an Officer the ability to act on his or her own motion to review 
potentially erroneous executions. Under the current rule, an Officer 
has the ability to act upon his or her own motion only in the event of 
a System Disruption or Malfunction. The proposed rule would allow an 
Officer to review executions and rely on the Numerical Guidelines under 
any circumstance.
    Under the proposed rule, an Officer acting on its own motion, may 
review potentially erroneous executions that occur on the Exchange and 
shall either declare the transaction null and void or, if such 
transaction occurred only on the Exchange and no contemporaneous 
transaction(s) occurred on another market center(s) at a price that 
meets or exceeds the applicable Numerical Guidelines and if the 
Exchange has no actual knowledge of a clearly erroneous execution 
review of a contemporaneous transaction of the subject security on 
another market center, modify one or more of the terms of the 
transaction to achieve an equitable rectification of the error that 
would place the parties in the same position, or as close as possible 
to the same position that they would have been in, had the error not 
occurred. This rule change supports the goal to provide market-wide 
consistency to the resolution of clearly erroneous executions that 
occur on multiple markets.
    In extraordinary circumstances an Officer may apply a lower 
Numerical Guideline to review a trade if it is determined that such 
action is necessary to maintain a fair and orderly market or protect 
investors and the public interest. In some instances the Exchange may 
detect a single execution that breaches the Numerical Guidelines but is 
not the subject of a ruling request. This provision gives the Exchange 
the ability to review such executions. Additionally, in practice 
clearly erroneous executions may involve multiple parties and multiple 
executions. The Exchange proposes this provision to permit an Officer 
to rule on a group of executions related to the same occurrence or 
event as a whole, with or without a formal request for a ruling from an 
affected party.
Trade Nullification and Price Adjustments for UTP Securities That Are 
the Subject of Initial Public Offerings
    The proposed Rule also modifies the Exchange's policy on trade 
nullification and UTP securities that are subject to initial public 
offerings. Under the current Rule, a clearly erroneous execution may be 
deemed to have occurred in the opening execution of the subject 
security if the execution price of the opening execution on the 
Exchange is the lesser of $1.00 or 10% away from the opening price on 
the listing exchange or association. Under the proposed rule, in such 
circumstances, the Officer shall either decline to take action in 
connection with the completed transaction, declare the transaction null 
and void or, if such transaction occurred only on the Exchange and no 
contemporaneous transaction(s) occurred on another market center(s) at 
a price that meets or exceeds the applicable Numerical Guidelines and 
if the Exchange has no actual knowledge of a clearly erroneous 
execution review of a contemporaneous transaction of the subject 
security on another market center, adjust the transaction price to the 
opening price on the listing exchange or association.
    Pursuant to the proposed rule, clearly erroneous executions of 
subsequent executions of the subject security will be reviewed in the 
same manner as the procedure set forth in (e)(1). Absent extraordinary 
circumstances, action of the Officer must be taken in a timely fashion, 
generally within thirty (30) minutes of the detection of the erroneous 
execution. In extraordinary circumstances, the reviewing Officer may 
take action by no later than the start of the regular trading hours of 
the Exchange on the day following the date of the execution under 
review.
2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) \6\ of the 
Securities Exchange Act of 1934 (the ``Exchange Act''), in general, and 
furthers the objectives of Section 6(b)(5) \7\ 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

[[Page 51926]]

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 provides transparency and finality for participants and creates 
consistent results across U.S. equities exchanges with respect to 
clearly erroneous executions. This proposed change further promotes the 
maintenance of a fair and orderly market, the protection of investors 
and the protection of the public interest.
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    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f(b)(5).
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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 from the date on which it was filed, or 
such shorter time as the Commission may designate, it has become 
effective pursuant to Section 19(b)(3)(A) of the Act \8\ and Rule 19b-
4(f)(6) thereunder.\9\
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    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 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.
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    A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the 
Act \10\ normally does not become operative for 30 days after the date 
of its filing. However, Rule 19b-4(f)(6) \11\ permits the Commission to 
designate a shorter time if such action is consistent with the 
protection of investors and the public interest. The Exchange requests 
that the Commission waive the 30-day operative delay so that it may 
implement the new rule on October 5, 2009, the same date as the other 
equities exchanges. The Commission believes that waiving the 30-day 
operative delay is consistent with the protection of investors and the 
public interest because it will allow the Exchange to begin applying 
the new rule on the same date as the other equities exchanges.\12\ 
Application of the new rule on this date should help foster 
transparency and consistency among those exchanges that adopt clearly 
erroneous execution rules substantially similar to those previously 
approved by the Commission.\13\ For these reasons, the Commission 
designates that the proposed rule change become operative on October 5, 
2009.
---------------------------------------------------------------------------

    \10\ 17 CFR 240.19b-4(f)(6).
    \11\ 17 CFR 240.19b-4(f)(6).
    \12\ For purposes only of waiving the 30-day operative delay, 
the Commission has considered the proposal's impact on efficiency, 
competition, and capital formation. 15 U.S.C. 78c(f).
    \13\ See Securities Exchange Act Release No. 60706 (September 
22, 2009), 74 FR 49416 (September 28, 2009) (NYSEArca-2009-36).
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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 Comments

     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-2009-69 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-2009-69. 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 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 publicly available. All 
submissions should refer to File Number SR-NYSEAmex-2009-69 and should 
be submitted on or before October 29, 2009.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\14\
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    \14\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-24246 Filed 10-7-09; 8:45 am]

BILLING CODE 8011-01-P