Document ID: SEC-2009-0470-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by NYSE Amex LLC Amending 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
Posted Date: 2009-04-07T04:00Z

[Federal Register: April 7, 2009 (Volume 74, Number 65)]
[Notices]               
[Page 15804-15806]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr07ap09-135]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-59665; File No. SR-NYSEAmex-2009-05]

 
Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by NYSE Amex LLC Amending 
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

March 31, 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 March 23, 2009, NYSE Amex LLC \4\ (the ``Exchange'' or 
``NYSE Amex'') filed with the Securities and Exchange Commission (the 
``SEC'' or ``Commission'') the proposed rule change as described in 
Items I and II below, which Items have been prepared by the self-
regulatory organization. The Exchange filed the proposed rule change 
pursuant to Section 19(b)(3)(A) of the Act \5\ and Rule 19b-4(f)(6) 
thereunder,\6\ 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\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
    \4\ See e-mail from Clare F. Saperstein, Managing Director, 
Office of General Counsel, NYSE Regulation, Inc., to David Liu, 
Assistant Director, Commission, dated March 31, 2009.
    \5\ 15 U.S.C. 78s(b)(3)(A).
    \6\ 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 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 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 NYSE Amex Equities Rule 48.10 to 
temporarily extend the provisions of the rule relating to declaring an 
extreme market volatility condition at the close.\7\
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    \7\ See SR-NYSE-2009-35 (formally submitted on March 23, 2009).
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    On November 26, 2008, NYSE Amex filed a rule proposal to conform 
its rules to those of the New York Stock

[[Page 15805]]

Exchange LLC (``NYSE'').\8\ 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.\9\ 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 for notice and comment.
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    \8\ See Securities Exchange Act Release No. 59022 (Nov. 26, 
2008), 73 FR 73683 (Dec. 3, 2008) (SR-NYSEALTR-2008-10).
    \9\ See SEC Release No. 58743 (Oct. 7, 2008), 73 FR 60742 (Oct. 
14, 2008) (SR-NYSE-2008-102).
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    The Exchange has filed a rule proposal to amend NYSE Amex 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'').\10\ 
That rule proposal has been filed under Section 19(b)(2) of the 
Securities Exchange Act of 1934 (the ``Act'')\11\ and has been noticed 
for public comment. The comment period for that filing ends on March 
31, 2009. In anticipation of the Rule 48/123C filing, the Exchange 
previously amended Rule 48.10 to extend from December 31, 2009 to March 
27, 2009 the temporary time period that the Rule 48 at-the-close 
provisions would be in effect.\12\ The Exchange now proposes to 
temporarily extend the NYSE Amex 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 April 30, 2009.
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    \10\ See SEC Release No. 59488 (Mar. 3, 2009), 74 FR 10334 (Mar. 
10, 2009) (SR-NYSEALTR-2009-15). The NYSE has filed a companion rule 
filing. See SEC Release No. 59489 (Mar. 3, 2009), 74 FR 10330 (Mar. 
10, 2009) (SR-NYSE-2009-18).
    \11\ 15 U.S.C. 78s(b)(2).
    \12\ See SEC Release No. 59169 (Dec. 29, 2008), 74 FR 485 (Jan. 
6, 2009) (SR-NYSEALTR-2008-18). The NYSE also filed a companion rule 
filing. See SEC Release No. 59168 (Dec. 29, 2008), 74 FR 483 (Jan. 
6, 2009) (SR-NYSE-2008-139).
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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)\13\ 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. In particular, this rule proposal 
will permit the temporary provisions of Rule 48 to continue without 
interruption pending the outcome of the Rule 48/123C filing.
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    \13\ 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:
    (i) Does not significantly affect the protection of investors or 
the public interest;
    (ii) Does not impose any significant burden on competition; and
    (iii) By its terms, does not 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 \14\ and Rule 19b-4(f)(6) thereunder.\15\
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    \14\ 15 U.S.C. 78s(b)(3)(A).
    \15\ 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 in order to permit the temporary provisions of NYSE 
Amex Equities Rule 48 to continue without interruption pending the 
outcome of the Rule 48/123C filing. The Commission believes such waiver 
is consistent with the protection of investors and the public 
interest.\16\ Accordingly, the Commission designates the proposed rule 
change operative upon filing with the Commission.
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    \16\ For purposes only of waiving the 30-day operative delay 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-NYSEAmex-2009-05 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-2009-05. 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;

[[Page 15806]]

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-
NYSEAmex-2009-05 and should be submitted on or before April 28, 2009.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\17\
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    \17\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-7732 Filed 4-6-09; 8:45 am]

BILLING CODE 8010-01-P