Document ID: SEC-2009-0012-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NYSE Alternext US LLC
Posted Date: 2009-01-06T05:00Z

[Federal Register: January 6, 2009 (Volume 74, Number 3)]
[Notices]               
[Page 485-486]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr06ja09-80]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-59169; File No. SR-NYSEALTR-2008-18]

 
Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by NYSE Alternext US LLC Amending 
NYSE Alternext US, LLC Equities Rule 48.10 To Extend the Temporary 
Provisions of the Rule Relating to the Ability of the Exchange To 
Declare an Extreme Market Volatility Condition and Suspend Certain 
Exchange Requirements Relating to the Closing of Securities at the 
Exchange

December 29, 2008.
    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 December 24, 2008, NYSE Alternext US LLC (the 
``Exchange'' or ``NYSE Alternext'') 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 NYSE Alternext US, LLC (``NYSE 
Alternext'' or the ``Exchange'') Equities Rule 48.10 to extend the 
temporary provisions of the rule relating to the ability of the 
Exchange to declare an extreme market volatility condition and suspend 
certain Exchange requirements relating to the closing of securities at 
the Exchange.
    The text of the proposed rule change is available at http://
www.nyse.com, NYSE Alternext, and 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 Exchange proposes to amend NYSE Alternext Equities Rule 48.10 
to temporarily extend the provisions of the rule relating to declaring 
an extreme market volatility condition at the close.
    On November 26, 2008, NYSE Alternext filed a rule proposal to 
conform its rules to those of the New York Stock Exchange LLC 
(``NYSE'').\4\ Among the rules amended in that filing was Rule 48, 
which was previously amended by the NYSE. On October 2, 2008, the NYSE 
filed for immediate effectiveness to amend NYSE Rule 48 to provide the 
NYSE with the ability to suspend certain rules at the close when 
extremely high market volatility could negatively affect the ability to 
ensure a fair and orderly close.\5\ The NYSE amended Rule 48 on an 
immediate effectiveness basis in order to respond swiftly to market 
conditions at that time. Those amendments were adopted on a temporary 
basis with the understanding that if the NYSE would like to adopt the 
closing provisions on a permanent basis, such proposal must be filed 
under Section 19(b)(2) of the Act.\6\
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    \4\ See Securities Exchange Act Release No. 34-59022 (Nov. 26, 
2008), 73 FR 73683 (Dec. 3, 2008) (SR-NYSEALTR-2008-10).
    \5\ See SEC Release No. 34-58743 (Oct. 7, 2008), 73 FR 60742 
(Oct. 14, 2008) (SR-NYSE-2008-102).
    \6\ 15 U.S.C. 78s(b)(2).
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    The Exchange intends soon to file a rule proposal to amend NYSE 
Alternext Equities Rules 48 and 123C to delete from Rule 48 the 
provisions relating to declaring an extreme market volatility condition 
at the close and add them in modified form to Rule 123C (the ``Rule 48/
123C filing''). That rule proposal would be filed under Section 
19(b)(2) of the Securities Exchange Act of 1934 (the ``Act'').\7\ The 
Exchange now proposes to temporarily extend the NYSE Alternext Equities 
Rule 48 at-the-close provisions pending the outcome of the Rule 48/123C 
filing. Accordingly, the Exchange proposes to amend Rule 48.10 to 
provide that the provisions of that rule relating to declaring an 
extreme market volatility condition at the close will end on March 27, 
2009.
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    \7\ Id.
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2. Statutory Basis
    The basis under the Act for this proposed rule change is the 
requirement under Section 6(b)(5) \8\ 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.
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    \8\ 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: (1) Does not 
significantly affect the protection of investors or the public 
interest; (2) does not impose any

[[Page 486]]

significant burden on competition; and (3) by its terms, 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, the proposed rule change has 
become effective pursuant to Section 19(b)(3)(A) of the Act \9\ and 
Rule 19b-4(f)(6) thereunder.\10\
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    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 17 CFR 240.19b-4(f)(6).
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    A proposed rule change filed under Rule 19b-4(f)(6) normally does 
not become operative for 30 days after the date of filing.\11\ However, 
Rule 19b-4(f)(6)(iii) permits the Commission to designate a shorter 
time if such action is consistent with the protection of investors and 
the public interest. NYSE Alternext requested that the Commission waive 
the 30-day operative delay, as specified in Rule 19b-4(f)(6)(iii),\12\ 
which would make the rule change effective and operative upon filing.
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    \11\ 17 CFR 240.19b-4(f)(6)(iii). 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. The Exchange has satisfied this requirement.
    \12\ 17 CFR 240.19b-4(f)(6)(iii).
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    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 extend without interruption the 
provisions of Rule 48 regarding the Exchange's ability to declare an 
extreme market volatility condition at the close and suspend certain 
rules relating to closing of securities on the Exchange. These 
provisions are currently scheduled to expire on December 31, 2008. The 
Commission notes the Exchange's representation that it soon intends to 
file a proposal to establish permanent rules regarding closing of 
securities subject to an extreme order imbalance at the close. In light 
of the foregoing, the Commission designates the proposal operative upon 
filing.\13\
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    \13\ 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 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.\14\
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    \14\ 15 U.S.C. 78s(b)(3)(C).
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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-2008-18 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities 
and Exchange Commission, 100 F Street, NE., Washington, DC 20549-1090.

All submissions should refer to File Number SR-NYSEALTR-2008-18. 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 available publicly. All 
submissions should refer to File Number SR-NYSEALTR-2008-18 and should 
be submitted on or before January 27, 2009.
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    \15\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\15\
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-31349 Filed 1-5-09; 8:45 am]

BILLING CODE 8011-01-P