Document ID: SEC-2009-1482-0001
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 14 To Be Consistent With the New System Capability To Receive Orders for Execution on the Exchange Containing Settlement Instructions of "Cash," "Next Day" and "Seller's Option" Directly to a Floor Broker's Hand-Held Device
Posted Date: 2009-10-19T04:00Z

[Federal Register: October 19, 2009 (Volume 74, Number 200)]
[Notices]               
[Page 53537-53539]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr19oc09-102]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-60811; File No. SR-NYSEAmex-2009-68]

 
Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by NYSE Amex LLC Amending NYSE 
Amex Equities Rule 14 To Be Consistent With the New System Capability 
To Receive Orders for Execution on the Exchange Containing Settlement 
Instructions of ``Cash,'' ``Next Day'' and ``Seller's Option'' Directly 
to a Floor Broker's Hand-Held Device

October 9, 2009.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 
1934 (``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given 
that on October 1, 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, II, and

[[Page 53538]]

III 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 Amex Equities Rule 14 (``Non-
Regular Way Settlement Instructions for Orders'') to be consistent with 
the new system capability to receive orders for execution on the 
Exchange containing settlement instructions of ``cash,'' ``next day'' 
and ``seller's option'' directly to a Floor broker's hand-held device. 
The text of the proposed rule change is available at the Exchange, the 
Commission's Public Reference Room, and 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 NYSE Amex Equities Rule 14 (``Non-
Regular Way Settlement Instructions for Orders'') to be consistent with 
its new system capability to receive orders containing settlement 
instructions of ``cash,'' ``next day'' and ``seller's option'' 
(collectively referred to herein as ``non-regular way settlement'' \4\) 
directly to a Floor broker's hand-held device.\5\
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    \4\ Orders indicating cash settlement instructions require 
delivery of the securities on the same day as the trade date. Next 
day settlement instructions require delivery of the securities on 
the first business day following the trade date. Orders that have 
settlement instructions of seller's option afford the seller the 
right to deliver the security or bond at any time within a specified 
period, ranging from not less than two business days to not more 
than sixty days for securities and not less than two business days 
and no more than sixty days for U.S. government securities.
    Odd-lot orders containing non-regular way settlement 
instructions are not permitted.
    \5\ The Exchange notes that parallel changes are proposed to be 
made to the rules of New York Stock Exchange LLC. See SR-NYSE-2009-
102.
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    Currently, Designated Market Maker units do not have order handling 
responsibility for orders containing non-regular way settlement 
instructions. Moreover, Exchange systems that route orders to the 
Display Book do not accept orders containing non-regular way 
instructions. Routing orders directly to a Floor broker booth location 
via the Broker Booth Support System (``BBSS'') for representation on 
the Floor is the only acceptable way for orders with non-regular way 
settlement instructions to be transmitted to the Exchange.
    Pursuant to NYSE Amex Equities Rule 14 customers that seek to 
execute orders containing non-regular way settlement instructions must 
directly transmit those orders via BBSS directly to a Floor broker for 
representation in the trading crowd because at the time the Exchange 
established this capability, BBSS was the only Exchange system capable 
of accepting such orders. As a result customers are currently 
prohibited from transmitting orders containing non-regular settlement 
instructions directly to a Floor broker's hand-held device.
    The Exchange has currently enhanced its systems to enable hand-held 
devices to receive and process orders containing non-regular way 
settlement instructions.\6\ As such, through this filing the Exchange 
seeks to provide its customers that seek to execute orders containing 
non-regular way settlement instructions with an additional systemic 
option for transmitting such orders to a Floor broker for 
representation on the Floor. The Exchange therefore proposes to amend 
NYSE Amex Equities Rule 14(a)(ii) to remove the words ``booth system'' 
and permit customers to transmit orders containing non-regular way 
settlement instructions to a Floor broker via either BBSS or a Floor 
broker's hand-held device.
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    \6\ Orders sent directly to the hand-held device, including 
those containing non-regular way settlement instructions, are 
systemically transmitted to the ``Front End Systemic Capture'' 
(``FESC'') consistent with the requirements of NYSE Amex Equities 
Rule 123, which requires floor brokers to enter the details of an 
order, including any modification or cancellation, into a system 
which electronically timestamps the time of entry prior to 
representing or executing that order on the Floor.
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    The Exchange believes that the instant proposal better facilitates 
the needs of its customers to submit orders containing instructions for 
non-regular way settlement and maintains effective representation of 
such customer orders in the Exchange's current market.
    The Exchange will commence installation of the new technology in 
Floor broker hand-held devices on or about October 5, 2009, with 
expected completion no later than October 30, 2009.
2. Statutory Basis
    The basis under the Securities Exchange Act of 1934 (the ``Act'') 
[sic] for this proposed rule change is the requirement under Section 
6(b)(5) \7\ 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 instant filing accomplishes these goals by providing its customers 
with an additional method to enter orders containing non-regular way 
settlement instructions, without changing the ability of such orders to 
be represented at the point of sale in the Exchange's auction market.
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    \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

    The proposed rule change is filed pursuant to paragraph (A) of 
Section 19(b)(3) \8\ and Rule 19b-4(f)(5).\9\ This proposed rule change 
effects a change in an existing order entry or trading system of a 
self-regulatory organization that: (A) Does not significantly affect 
the

[[Page 53539]]

protection of investors or the public interest; (B) does not impose any 
significant burden on competition, and (C) does not have the effect of 
limiting the access to or availability of the system. The Exchange 
believes that the instant proposal is consistent with these provisions 
in that the enhancements to Exchange systems allow Floor broker hand-
held devices to receive and process orders containing non-regular way 
instruction and do not change the operation of the rule in any other 
way.
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    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 17 CFR 240.19b-4(f)(5).
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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.

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-2009-68 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-2009-68. 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-2009-68 and should 
be submitted on or before November 9, 2009.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-25112 Filed 10-16-09; 8:45 am]

BILLING CODE 8011-01-P