Document ID: SEC-2009-0285-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NYSE Alternext US LLC
Posted Date: 2009-03-04T05:00Z

[Federal Register: March 4, 2009 (Volume 74, Number 41)]
[Notices]               
[Page 9461-9463]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr04mr09-101]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-59454; File No. SR-NYSEALTR-2009-17]

 
Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by NYSE Alternext U.S. LLC To 
Delete Certain Rules Governing the Trading of Listed Options

February 25, 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 February 23, 2009, NYSE Alternext US LLC (the ``Exchange'' or ``NYSE 
Alternext'') 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. The Exchange 
filed the proposed rule change pursuant to Section 19(b)(3)(A) of the 
Act \3\ and Rule 19b-4(f)(6) thereunder,\4\ which renders it 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\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 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 delete old rules governing the trading of 
listed

[[Page 9462]]

options which are being replaced by rules identified in a separate 
filing, SR-NYSEALTR-2008-14, which proposes new Section 900NY. The old 
rules will no longer apply upon a) the implementation of a new trading 
platform for options, NYSE Amex System (``System'') and b) relocation 
of the Trading Floor to 11 Wall Street, New York, NY. The text of the 
proposed rule change 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
    In a separate filing, SR-NYSEALTR-2008-14, the Exchange has 
proposed rules to introduce a modern electronic trading platform to 
support options trading, and in addition, proposes to update and 
reorganize open outcry trading at the time of the migration to the new 
platform and the move to a new Options Trading Floor at 11 Wall Street, 
New York, NY. The new rule set is proposed as Section 900NY.
    Rule Section 900NY will replace certain existing NYSE Alternext 
Rules. These are, under General Rules, Rule 1, Hours of Business; Rule 
2, Visitors; Rule 21, Appointment of the Senior Supervisory Officer, 
Senior Floor Officials, Exchange Officials and Floor Officials; Rule 
21, Authority of Floor Officials; Rule 27A, Allocation of Options; Rule 
170, Registration and Functions of Specialists; Rule 171, Specialist 
Financial Requirements; Rule 172, Relief and Temporary Specialists; 
Rule 173, Relief and Temporary Specialist Financial Requirements; Rule 
174, Disclosures by Specialists Prohibited; Rule 175, Specialist 
Prohibitions. Under Trading of Options Contracts, the superseded Rules 
are, in Section 1, Rule 900, Applicability Definitions and References; 
in Section 2, Rule 918, Trading Rotations, Halts, and Suspensions; in 
Section 3, Rule 933, Automatic Execution of Options Orders; Rule 934, 
Limitation on Orders; Rule 936, Cancellation and Adjustment of Equity 
Options Transactions; in Section 4, Rule 941, Operation of the Linkage; 
Rule 942, Order Protection; Rule 943, Locked Markets; Rule 944, 
Limitation on Principal Order Access.
    Additionally, Section 900NY will replace, in Section 5--Floor Rules 
Applicable to Options, Rule 950, Rules of General Applicability; Rule 
951, Premium Bids and Offers; Rule 952, Minimum Price Variations; Rule 
953, Acceptance of Bid or Offer; Rule 954, Units of Trading; Rule 955, 
Floor Reports of Exchange Options Transactions; Rule 956, Open Orders 
on ``Ex Date''; Rule 957, Accounts, Orders and Records of Registered 
Traders, Designated NYSE Alternext Remote Traders, Specialists and 
Associated Persons; Rule 958, Options Transactions of Registered 
Traders; Rule 958A, Application of the Firm Quote Rule, Rule 959, 
Accommodation Transactions; in Section 9, Rule 992, Exchange Options 
Market Data System; in Section 11--Stock Index Options, Rule 918C, 
Trading Rotations, Halts and Suspensions; and in ANTE Rules, all Rules 
(Rule 900 -ANTE through Rule 997-ANTE).
    This filing seeks to remove these replaced Rules from the NYSE 
Alternext US LLC Rulebook upon implementation of the new NYSE Amex 
Options trading system and the opening of the new Trading Floor at 11 
Wall Street.
2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) \5\ of the 
Securities Exchange Act of 1934 (the ``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 mechanisms of 
a free and open market and a national market system.
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    \5\ 15 U.S.C. 78f(b).
    \6\ 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, 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\
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    \7\ 15 U.S.C. 78s(b)(3)(A).
    \8\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii) 
requires the self-regulatory organization to submit to the 
Commission written notice of its intent to file the proposed rule 
change, along with a brief description and text of 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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    The Exchange has requested that the Commission waive the 30-day 
operative delay to the extent that such action is necessary to make the 
proposed rule change operative upon implementation of the new NYSE Amex 
Options trading system and the opening of the new Options Trading Floor 
at 11 Wall Street.\9\ The Commission hereby grants the Exchange's 
request and believes that such action is consistent with the protection 
of investors and the public interest.\10\ If the Commission approves 
SR-NYSEALTR-2008-14, it will be necessary for this proposed rule change 
to become operative simultaneously with the operative date of the new 
rules proposed in SR-NYSEALTR-2008-14. Otherwise, the Exchange would 
have conflicting rules on its books. Therefore, the Commission waives 
any part of the 30-day period in connection with this filing that is 
necessary to make the two filings operative simultaneously. The

[[Page 9463]]

Commission notes, however, that its action in this matter is without 
prejudice to any action it may take with respect to SR-NYSEALTR-2008-
14.
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    \9\ The implementation of the new trading system and opening of 
the new Options Trading Floor are currently scheduled for March 2, 
2009, pending approval of SR-NYSEALTR-2008-14.
    \10\ For purposes only of waiving the operative date 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).
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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-NYSEALTR-2009-17 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-NYSEALTR-2009-17. 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-NYSEALTR-2009-17 and should be submitted on or before 
March 25, 2009.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-4562 Filed 3-3-09; 8:45 am]

BILLING CODE 8011-01-P