Document ID: SEC-2009-1195-0001
Agency: sec
Document Type: Notice
Title: Joint Industry Plan:  Summary Effectiveness on a Temporary Basis of Joint Amendment No. 1 to the Options Order Protection, etc.
Posted Date: 2009-08-24T04:00Z

[Federal Register: August 24, 2009 (Volume 74, Number 162)]
[Notices]               
[Page 42709-42710]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr24au09-112]                         

[[Page 42709]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-60507; File No. 4-546]

 
Joint Industry Plan; Notice of Summary Effectiveness on a 
Temporary Basis of Joint Amendment No. 1 to the Options Order 
Protection and Locked/Crossed Market Plan, and Notice of Filing of Such 
Amendment

August 14, 2009.

I. Introduction

    Pursuant to Section 11A of the Securities Exchange Act of 1934 (the 
``Act'') \1\ and Rule 608 of Regulation NMS thereunder (``Rule 
608''),\2\ notice is hereby given that on August 7, 2009, August 7, 
2009, August 7, 2009, August 7, 2009, August 11, 2009, August 11, 2009, 
and August 11, 2009, NYSE Arca, Inc. (``NYSE Arca''), NYSE Amex, LLC 
(``NYSE Amex''), International Securities Exchange, LLC (``ISE''), 
NASDAQ OMX BX, Inc. (``BOX''), Chicago Board Options Exchange, 
Incorporated (``CBOE''), NASDAQ OMX PHLX, Inc. (``Phlx''), and The 
NASDAQ Stock Market LLC (``Nasdaq'') (collectively, 
``Participants''),\3\ respectively, filed with the Securities and 
Exchange Commission (``Commission'') an amendment to the Options Order 
Protection and Locked/Crossed Market Plan (``Plan'') \4\ (``Joint 
Amendment No. 1''). In Joint Amendment No. 1, the Participants propose 
to modify Section 5(b) of the Plan to eliminate the requirement that 
policies and procedures be submitted to the Commission for approval. 
This order summarily puts into effect Joint Amendment No. 1 on a 
temporary basis not to exceed 120 days and solicits comment on Joint 
Amendment No. 1 from interested persons.\5\
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    \1\ U.S.C. 78k-1.
    \2\ 17 CFR 242.608.
    \3\ See letter from Peter G. Armstrong, NYSE Arca, to Elizabeth 
Murphy, Secretary, Commission, dated August 6, 2009; letter from 
Michael Babel, NYSE Amex, to Elizabeth Murphy, Secretary, 
Commission, dated August 6, 2009; letter from Michael J. Simon, ISE, 
to Elizabeth Murphy, Secretary, Commission, dated August 6, 2009; 
letter from Maura A. Looney, Associate Vice President, BX, to 
Elizabeth Murphy, Secretary, Commission, dated August 6, 2009; 
letter from Edward J. Joyce, CBOE, to Elizabeth Murphy, Secretary, 
Commission, dated August 10, 2009; letter from Richard S. Rudolph, 
Assistant General Counsel, Phlx, to Elizabeth Murphy, Secretary, 
Commission, dated August 10, 2009; and letter from Jeffrey S. Davis, 
Vice President and Deputy General Counsel, Nasdaq, to Elizabeth 
Murphy, Secretary, Commission, dated August 10, 2009. On August 12, 
2009, Nasdaq and Phlx submitted letters correcting technical errors 
in their letters to Elizabeth Murphy, Secretary, Commission, dated 
August 10, 2009.
    \4\ On July 30, 2009, the Commission approved a national market 
system plan relating to Options Order Protection and Locked/Crossed 
Markets proposed by CBOE, ISE, Nasdaq, BOX, Phlx, NYSE Amex, and 
NYSE Arca. See Securities Exchange Act Release No. 60405 (July 30, 
2009), 74 FR 39362 (August 6, 2009).
    \5\ A proposed amendment may be put into effect summarily upon 
publication of notice of such amendment, on a temporary basis not to 
exceed 120 days, if the Commission finds that such action is 
necessary or appropriate in the public interest, for the protection 
of investors or the maintenance of fair and orderly markets, to 
remove impediments to, and perfect mechanisms of, a national market 
system or otherwise in furtherance of the purposes of the Act. See 
17 CFR 242.608(b)(4).
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II. Description of the Proposed Amendment

    The purpose of Joint Amendment No. 1 is to clarify that, while each 
Participant is required under the Plan to establish, maintain and 
enforce written policies and procedures that are reasonably designed to 
prevent Trade-Throughs, there would not be a requirement that these 
policies and procedures be submitted to the Commission for approval. 
The Plan requires, and each Participant has represented, that its 
policies and procedures will be reasonably designed to prevent Trade-
Throughs in the Exchange's market in Eligible Options Classes, unless 
they fall within an exception set forth in Section 5(b) of the Plan. If 
relying on such exception, the policies and procedures will be 
reasonably designed to assure compliance with the terms of the 
exception.
    The Participants request that the Commission provide summary 
effectiveness pursuant to Rule 608(b)(4) of the Act for the purpose of 
effecting Joint Amendment No. 1 on a temporary basis for 120 days.

III. Discussion

    After careful consideration, the Commission finds that the proposed 
amendment to the Plan is consistent with the requirements of the Act 
and the rules and regulations thereunder.\6\ Specifically, the 
Commission finds that the proposed amendment to the Plan is consistent 
with Section 11A of the Act \7\ and Rule 608 of Regulation NMS 
thereunder \8\ in that it is appropriate in the public interest, for 
the protection of investors and the maintenance of fair and orderly 
markets. The Commission notes that, as a general matter, it does not 
approve specific policies and procedures that exchanges use to ensure 
compliance with their rules or NMS Plan provisions. Rather, the 
Commission uses its authority to review and examine exchanges to ensure 
that exchanges are meeting their regulatory obligations.
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    \6\ In summarily putting into effect this Joint Amendment No. 1, 
the Commission has considered its impact on efficiency, competition, 
and capital formation.
    \7\ 15 U.S.C. 78k-1.
    \8\ 17 CFR 242.608.
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    In addition, the Commission finds that it is appropriate to 
summarily put into effect Joint Amendment No. 1 upon publication of 
this notice on a temporary basis for 120 days. The Commission believes 
that such action is appropriate in the public interest, for the 
protection of investors and the maintenance of fair and orderly markets 
because it would allow the amendment to become effective prior to the 
anticipated implementation date of the Plan.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the Joint 
Amendment No. 1 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 4-546 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 4-546. 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 Joint Amendment that are filed 
with the Commission, and all written communications relating to the 
proposed Joint Amendment 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 Com mission'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 the proposed Joint Amendment also will be 
available for inspection and copying at the respective

[[Page 42710]]

principal office of CBOE, ISE, Nasdaq, BOX, Phlx, NYSE Amex, and NYSE 
Arca. 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 4-546 
and should be submitted on or before September 14, 2009.

IV. Conclusion

    It is therefore ordered, pursuant to Section 11A of the Act \9\ and 
Rule 608 of Regulation NMS,\10\ that the proposed Joint Amendment No. 1 
is summarily put into effect until December 22, 2009.
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    \9\ 15 U.S.C. 78k-1.
    \10\ 17 CFR 242.608.

    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)(29).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-20191 Filed 8-21-09; 8:45 am]

BILLING CODE 8010-01-P