Document ID: SEC-2010-0225-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NYSE Amex LLC
Posted Date: 2010-02-10T05:00Z

[Federal Register: February 10, 2010 (Volume 75, Number 27)]
[Notices]               
[Page 6738-6739]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr10fe10-128]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-61499; File No. SR-NYSEAmex-2010-04]

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

February 4, 2010.
    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 January 13, 2010, NYSE Amex LLC (``NYSE Amex'' or the 
``Exchange'') filed with the Securities and Exchange Commission (the 
``Commission'') the proposed rule change as described in Items I, II, 
and III below, which Items have been substantially 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 its option trading rules pertaining 
to its advertising, branch officer examination requirement, and 
assuming customer loss policies to harmonize these policies with those 
of the Financial Industry Regulatory Authority (``FINRA''). 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 the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    Pursuant to Rule 17d-2 under the Act, the American Stock Exchange, 
LLC, the Boston Stock Exchange, Inc., the Chicago Board Options 
Exchange, Inc., the International Securities Exchange, LLC, Financial 
Industry Regulatory Authority, Inc., The NASDAQ Stock Market LLC, the 
New York Stock Exchange, LLC, NYSE Arca, Inc., and the Philadelphia 
Stock Exchange, Inc. (collectively, the ``Options Self Regulatory 
Council''), entered into an agreement dated June 5, 2008 (the ``17d-2 
Agreement'') to allocate regulatory responsibility for common rules. 
The Exchange is currently in the process of recertifying this 17d-2 
Agreement.
    In order to continue this successful regulatory agreement, the 
Exchange proposes to harmonize the following option trading rules with 
comparable FINRA rules: NYSE Amex Rule 991, Communications to Customers 
and NYSE Amex Rule 1106, Prior Approval of Certain Communications to 
Customers.

Options Communications

    In furtherance of the 17d-2 Agreement, and in order to maintain 
substantial similarity with FINRA rules, the Exchange proposes to amend 
NYSE Amex Rule 991, Communications to Customers, to correspond to FINRA 
Rule 2220, Options Communications. Many elements of current NYSE Amex 
Rule 991 are identical to FINRA Rule 2220. However, FINRA 2220 contains 
a more comprehensive definition section and approval process for 
advertisements, correspondence, and institutional sales material. The 
Exchange believes it is in the best interest of its Members to adopt 
FINRA's more comprehensive requirements. To the extent that other FINRA 
rules are incorporated into FINRA 2220 by reference, the Exchange 
proposes to add such language directly into the corresponding sections 
of proposed Rule 991.
    For instance, FINRA Rule 2357 makes the provisions of FINRA 2220 
applicable to index warrants, currency index warrants and currency 
warrants. As stated above, the Exchange proposes to amend NYSE Amex 
Rule 991 to correspond to FINRA Rule 2220. Thus, to harmonize its rules 
with FINRA's, the Exchange proposes to amend NYSE Amex Rule 1106 to 
correspond to FINRA Rule 2357, so that proposed NYSE Amex Rule 1106 
will make the

[[Page 6739]]

provisions of proposed NYSE Amex Rule 991 applicable to index warrants, 
currency index warrants and currency warrants.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) \4\ of the Act, in general, and furthers the 
objectives of Section 6(b)(5),\5\ 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. Specifically, the 
proposed rule changes would provide NYSE Amex Members with a clearer, 
more consistent, and more comprehensive regulatory scheme, by 
harmonizing NYSE Amex rules with FINRA rules. The Exchange further 
notes that the proposed changes are neither novel nor controversial and 
are modeled on existing FINRA rules.
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    \4\ 15 U.S.C. 78f(b).
    \5\ 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 Exchange has filed the proposed rule change pursuant to Section 
19(b)(3)(A)(iii) of the Act \6\ and Rule 19b-4(f)(6) thereunder.\7\ 
Because the 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 prior to 
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, the proposed rule change has become 
effective pursuant to Section 19(b)(3)(A) of the Act \8\ and Rule 19b-
4(f)(6)(iii) thereunder.\9\
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    \6\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \7\ 17 CFR 240.19b-4(f)(6).
    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii) 
requires the Exchange to give the Commission written notice of the 
Exchange's 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 the pre-filing requirement.
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    A proposed rule change filed under Rule 19b-4(f)(6) \10\ normally 
does not become operative prior to 30 days after the date of the 
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\11\ the Commission 
may designate a shorter time if such action is consistent with the 
protection of investors and the public interest. The Exchange has asked 
the Commission to waive the 30-day operative delay so that the proposal 
may become operative immediately upon filing. The Commission notes that 
the proposed rule change is consistent with existing FINRA rules, and 
does not raise any new substantive issues. For these reasons, the 
Commission believes that waiver of the 30-day operative delay is 
consistent with the protection of investors and the public interest 
because it will promote greater harmonization between NYSE Amex Option 
Communication rules and the related FINRA rules. Therefore, the 
Commission designates the proposed rule change effective and operative 
upon filing.\12\
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    \10\ 17 CFR 240.19b-4(f)(6).
    \11\ 17 CFR 240.19b-4(f)(6)(iii).
    \12\ 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 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-2010-04 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-2010-04. 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 Web site 
viewing and printing in the Commission's Public Reference Section, 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 Exchange's principal office 
and on its Internet Web site at http://www.nyse.com. 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-NYSEAmex-2010-04 and 
should be submitted on or before March 3, 2010.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\13\
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    \13\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-2943 Filed 2-9-10; 8:45 am]
BILLING CODE 8011-01-P