Document ID: SEC-2009-0913-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by New York Stock Exchange LLC Extending the Moratorium Related to the Qualification and Registration of Registered Competitive Market Makers Pursuant to NYSE Rule 107A and Competitive Traders Pursuant to NYSE Rule 110 to the Earlier of the Approval of SR-NYSE-2009-08 or July 24, 2009
Posted Date: 2009-07-08T04:00Z

[Federal Register: July 8, 2009 (Volume 74, Number 129)]
[Notices]               
[Page 32663-32664]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr08jy09-119]                         

[[Page 32663]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-60197; File No. SR-NYSE-2009-62]

 
Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by New York Stock Exchange LLC 
Extending the Moratorium Related to the Qualification and Registration 
of Registered Competitive Market Makers Pursuant to NYSE Rule 107A and 
Competitive Traders Pursuant to NYSE Rule 110 to the Earlier of the 
Approval of SR-NYSE-2009-08 or July 24, 2009

June 30, 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 June 26, 2009, New York Stock Exchange LLC (``NYSE'' 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.
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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 extend the moratorium related to the 
qualification and registration of Registered Competitive Market Makers 
(``RCMMs'') pursuant to NYSE Rule 107A and Competitive Traders 
(``CTs'') pursuant to NYSE Rule 110 to the earlier of the approval of 
SR-NYSE-2009-08 or July 24, 2009. 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 New York Stock Exchange LLC (``Exchange'' or ``NYSE'') proposes 
to extend the moratorium related to the qualification and registration 
of Registered Competitive Market Makers (``RCMMs'') pursuant to NYSE 
Rule 107A and Competitive Traders (``CTs'') pursuant to NYSE Rule 110 
to the earlier of the approval of SR-NYSE-2009-08 \4\ or July 24, 2009.
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    \4\ See Securities Exchange Act Release No. 59746 (April 10, 
2009), 74 FR 17702 (April 16, 2009) (SR-NYSE-2009-08).
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    On September 22, 2005, the Exchange filed SR-NYSE-2005-63 \5\ with 
the Securities and Exchange Commission (``Commission'') proposing to 
implement a moratorium on the qualification and registration of new 
RCMMS and CTs (``Moratorium'').\6\ The Moratorium allowed the Exchange 
to review the viability of RCMMs and CTs in the Exchange's evolving 
more electronic market.
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    \5\ See Securities Exchange Act Release No. 52648 (October 21, 
2005), 70 FR 62155 (October 28, 2005) (SR-NYSE-2005-63).
    \6\ See Securities Exchange Act Release Numbers 54140 (July 13, 
2006), 71 FR 41491 (July 21, 2006) (SR-NYSE-2006-48); 54985 
(December 21, 2006), 72 FR 171 (January 3, 2007) (SR-NYSE-2006-113); 
55992 (June 29, 2007), 72 FR 37289 (July 9, 2007) (SR-NYSE-2007-57); 
56556 (September 27, 2007), 72 FR 56421 (October 3, 2007) (SR-NYSE-
2007-86); 57072 (December 31, 2007), 73 FR 1252 (January 7, 2008) 
(SR-NYSE-2007-125); 57601 (April 2, 2008), 73 FR 19123 (April 8, 
2008) (SR-NYSE-2008-22); 58033 (June 26, 2008), 73 FR 38265 (July 3, 
2008) (SR-NYSE-2008-49); 58713 (October 2, 2008), 73 FR 59024 
(October 8, 2008) (SR-NYSE-2008-96); 59069 (December 8, 2008); 73 FR 
76081 (December 15, 2008) (SR-NYSE-2008-124); 59551 (March 10, 
2009), 74 FR 11624 (March 18, 2009) (SR-NYSE-2009-24), 60062 (June 
8, 2009), 74 FR 28297 (June 15, 2009) (SR-NYSE-2009-53).
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    During the Moratorium, the Exchange reviewed the quarterly volume 
data of RCMM and CT trading data to determine the average trading 
volume of RCMMs.
    As a result of its review, the Exchange concluded that RCMMs and 
CTs no longer serve as viable supplemental market makers. Accordingly, 
the Exchange determined that RCMMs and CTs should no longer be viable 
classes of traders on the Exchange. On April 10, 2009, the Exchange 
filed a separate proposed rule change, SR-NYSE-2009-08 (``2009-08'') 
with the Commission to eliminate RCMMs and CTs as viable classes of 
NYSE traders.\7\
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    \7\ See Securities Exchange Act Release No. 59746 (April 10, 
2009), 74 FR 17702 (April 16, 2009) (SR-NYSE-2009-08).
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    The Exchange proposes to extend the Moratorium as amended \8\ to 
the earlier of the approval of proposed rule change 2009-08 or July 24, 
2009 to allow 2009-08 to complete the rule filing process pursuant to 
Rule 19b-4.\9\
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    \8\ See Securities Exchange Act Release No. 53549 (March 24, 
2006), 71 FR 16388 (March 31, 2006) (SR-NYSE-2006-11) (making 
certain amendments to the Moratorium).
    \9\ 17 CFR 240.19b-4.
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    The Exchange will issue an Information Memo announcing the 
extension of the Moratorium.
2. Statutory Basis
    The basis under the Securities Exchange Act of 1934 (the ``Act'') 
for this proposed rule change is the requirement under Section 6(b)(5) 
that an exchange have rules that are designed 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. The Exchange 
believes that the instant filing is consistent with these principles. 
Based on its review of data associated with RCMM and CT trading, the 
Exchange has concluded that RCMMs and CTs no longer serve as viable 
supplemental market makers. In this instant filing, the Exchange seeks 
an extension of the Moratorium to complete the 19b-4 rule filing 
process following its proposed rule filing to eliminate RCMMs and CTs 
as viable classes of NYSE traders.

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 proposed rule change has become effective pursuant to Section 
19(b)(3)(A) of the Act \10\ and Rule 19b-4(f)(6)

[[Page 32664]]

thereunder \11\ because the foregoing proposed rule: (i) Does not 
significantly affect the protection of investors or the public 
interest; (ii) does not impose any significant burden on competition; 
and (iii) does not become operative for 30 days after the date of 
filing, or such shorter time as the Commission may designate if 
consistent with the protection of investors and the public 
interest.\12\
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    \10\ 15 U.S.C. 78s(b)(3)(A).
    \11\ 17 CFR 240.19b-4(f)(6).
    \12\ In addition, Rule 19b-4(f)(6)(iii) requires the self-
regulatory organization to give the Commission 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. NYSE has satisfied this 
requirement.
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    A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the 
Act \13\ normally does not become operative for 30 days after the date 
of its filing. However, Rule 19b-4(f)(6)(iii) \14\ permits the 
Commission to designate a shorter time if such action is consistent 
with the protection of investors and the public interest. The NYSE has 
requested that the Commission waive the 30-day operative delay. The 
Commission believes that waiving the 30-day operative delay is 
consistent with the protection of investors and the public interest 
because it would allow the Moratorium to continue without interruption 
while awaiting the completion of the rule filing process with respect 
to SR-NYSE-2009-08. Therefore, the Commission designates that the 
proposed rule change become operative immediately.\15\
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    \13\ 17 CFR 240.19b-4(f)(6).
    \14\ 17 CFR 240.19b-4(f)(6)(iii).
    \15\ 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. 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-NYSE-2009-62 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-NYSE-2009-62. 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 will also be available for 
inspection and copying at the principal office of the self-regulatory 
organization. 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-
NYSE-2009-62 and should be submitted on or before July 29, 2009.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\16\
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    \16\ 17 CFR 200.30-3(a)(12).
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Elizabeth M. Murphy,
Secretary.
[FR Doc. E9-15994 Filed 7-7-09; 8:45 am]

BILLING CODE 8010-01-P