Document ID: SEC-2009-1759-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Suspend Certain Provisions of NYSE
Posted Date: 2009-12-14T05:00Z

[Federal Register: December 14, 2009 (Volume 74, Number 238)]
[Notices]               
[Page 66182-66184]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr14de09-103]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-61125; File No. SR-NYSE-2009-122]

 
Self-Regulatory Organizations; New York Stock Exchange LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Suspend Certain Provisions of NYSE Rules 116 and 123C Relating to the 
Requirement That the Closing Transaction Be Reported to the 
Consolidated Tape as a Single Transaction

December 7, 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 December 4, 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 suspending [sic] the provisions of NYSE 
Rules 116 (``Stop'' Constitutes Guarantee) and 123C (Market On The 
Close Policy And Expiration Procedures) and not require a single 
closing print to be reported to the Consolidated Tape for a closing 
transaction that exceeds 99,999,999 shares. The text of the proposed 
rule

[[Page 66183]]

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
    Through this filing the Exchange seeks to temporarily suspend the 
provisions of NYSE Rules 116.40(c) and 123C(3) that require the closing 
transaction to be reported to the Consolidated Tape last sale reporting 
system as a single transaction. Specifically, in the event a closing 
execution exceeds 99,999,999 shares the Exchange seeks to report the 
transaction to the Consolidated Tape as two prints even though it is a 
single transaction.
    The Exchange currently reports the closing transaction to the 
Consolidated Tape as a single print pursuant to NYSE Rules 116.40(C) 
and 123C(3). As a result of a temporary size limitation in a new market 
data distribution system, Exchange systems currently cannot support 
prints greater than 99,999,999 shares. As a result, executions of 
greater than 99,999,999 shares must be sent to the Consolidated Tape as 
two prints. The two prints together will reflect the cumulative volume 
of the single closing transaction. Because this is inconsistent with 
the provisions of NYSE Rules116.40(C) and 123C(3), the Exchange 
proposes to temporarily suspend the provision of these rules that 
require the reporting of the closing execution as a single print.
    The Exchange believes that reporting two prints will not have any 
detrimental affect [sic] on investors because both prints will be 
marked as the closing print. The Exchange further provides notice to 
its customers through its Trader Alert System.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Securities Exchange Act of 1934 (the ``Act''),\4\ in 
general, and furthers the objectives of Section 6(b)(5) of the Act,\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 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 the proposed rule change will facilitate the timely and 
efficient reporting of the closing transaction on the Exchange and thus 
ultimately serve to protect investors and the public interest.
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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

    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 \6\ and Rule 19b-4(f)(6) thereunder.\7\
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    \6\ 15 U.S.C. 78s(b)(3)(A).
    \7\ 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 Commission has waived this requirement in this case.
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    A proposed rule change filed under Rule 19b-4(f)(6) \8\ normally 
does not become operative prior to 30 days after the date of the 
filing. However, pursuant to Rule 19b4(f)(6)(iii),\9\ 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.
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    \8\ 17 CFR 240.19b-4(f)(6).
    \9\ 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. 
The Commission notes that the proposed waiver of the requirement that 
the closing transaction be reported to the Consolidated Tape as a 
single transaction applies only to cases where the volume of the 
closing transaction in a security exceeds 99,999,999 shares, and that 
NYSE will notify market participants via its Trader Alert System each 
time it makes use of the waiver. The Commission understands that the 
Exchange expects its systems to be upgraded to accept a closing 
transaction whose volume exceeds 99,999,999 shares sometime in the near 
future.
    Finally, the Exchange has also requested that this waiver be made 
operative as of the date of filing of this proposed rule change because 
of market conditions that lead the Exchange to believe that a closing 
print in excess of 99,999,999 shares could occur. Prior to this date, 
no closing transaction exceeded 99,999,999 shares, and the Exchange 
expects such large-sized closing transaction to be rare in the future. 
In light of the foregoing, the Commission designates the proposal 
operative upon filing.\10\
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    \10\ For purposes only of waiving the operative delay for 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

[[Page 66184]]

     Send an e-mail to rule-comments@sec.gov. Please include 
File Number SR-NYSE-2009-122 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-2009-122. 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; 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-2009-122 and should be submitted on or before January 4, 2010.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-29630 Filed 12-11-09; 8:45 am]

BILLING CODE 8011-01-P