Document ID: SEC-2009-0655-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by NYSE Arca, Inc. Regarding Amendments to NYSE Arca Equities Rule 8.3 ("Listing of Currency and Index Warrants")
Posted Date: 2009-05-14T04:00Z

[Federal Register: May 14, 2009 (Volume 74, Number 92)]
[Notices]               
[Page 22779-22780]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr14my09-79]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-59886; File No. SR-NYSEArca-2009-39]

 
Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by NYSE Arca, Inc. Regarding 
Amendments to NYSE Arca Equities Rule 8.3 (``Listing of Currency and 
Index Warrants'')

May 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 May 1, 2009, NYSE Arca, Inc. (``NYSE Arca'' 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, through its wholly-owned subsidiary NYSE Arca 
Equities, Inc. (``NYSE Arca Equities''), proposes to amend NYSE Arca 
Equities Rule 8.3 (``Listing of Currency and Index Warrants'') to 
include alternate listing standards for currency and index warrants. 
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 Public Reference Room of the Commission.

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 Arca Equities Rule 8.3 to 
include alternate minimum distribution and market value standards for 
currency and index warrants.\4\\\ Under the proposed alternative 
standards, the minimum number of public holders required will not be 
defined, but will be determined on a case by case basis. Other criteria 
will require a minimum of 2,000,000 warrants together with an aggregate 
market value of $12,000,000 and initial price of $6 per warrant.
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    \4\ NYSE Arca Equities Rule 8.3 accommodates listing of 
currency, currency index and stock index warrants.
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    NYSE Arca Equities Rule 8.3 provides listing standards for currency 
and index warrants which includes, among other things, minimum 
distribution and market value standards. Currently, NYSE Arca Equities 
Rule 8.3 requires a minimum public distribution of 1,000,000 warrants 
together with a minimum of 400 public warrant holders, and an aggregate 
market value of $4,000,000.
    The Exchange proposes to add alternative standards to allow the 
Exchange to list warrant issues that it believes are appropriate for 
listing and increase its flexibility in reviewing such issues. The 
proposed alternative standards are similar to those previously approved 
by the Commission for the American Stock Exchange LLC (now known as 
NYSE Amex LLC) and for the Chicago Board Options Exchange 
(``CBOE'').\5\ Accordingly, under the proposed alternative listing 
standards, the minimum number of public holders required will not be 
defined, but will be determined on a case by case basis. Other criteria 
will require a minimum of 2,000,000 warrants together with an aggregate 
market value of $12,000,000 and minimum price of $6 per warrant. 
Because currency and index warrants are in many respects similar to 
currency and index options, which require no minimum number of holders 
upon issuance, the Exchange believes reviewing the number of public 
warrant holders on a case by case basis is appropriate.
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    \5\ See Securities Exchange Act Release No. 43611 (November 22, 
2000), 65 FR 75326 (December 1, 2000 (SR-CBOE-99-14) (order 
approving a proposed rule change relating to listing criteria for 
stock index warrants in CBOE Rule 31.5E); Securities Exchange Act 
Release No. 45036 (November 6, 2001), 66 FR 57760 (November 16, 
2001) (SR-Amex-2001-89) (notice of filing and immediate 
effectiveness of proposed rule change relating to currency and index 
warrant listing standards in Section 106 of the American Stock 
Exchange LLC Company Guide).
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    The Exchange believes the proposed alternative warrant listing 
standards will increase the Exchange's ability to review proposed 
warrant issues on a case by case basis in determining whether it is 
appropriate to list the particular warrant being proposed. Lastly, the 
Exchange believes that the approval of the alternative warrant listing 
standard will help foster competition between the Exchange and other 
national securities exchanges that have implemented the alternative 
warrant listing standards proposed herein.\6\
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    \6\ See note 5, supra.
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2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) \7\ of the 
Act in general and furthers the objectives of Section 6(b)(5) \8\ 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 regulating, clearing, settling, processing 
information with respect to, and facilitating transaction in 
securities,

[[Page 22780]]

and, in general to protect investors and the public interest. The 
proposed rule change will allow the listing and trading of currency and 
index warrants on the Exchange under standards previously implemented 
by other national securities exchanges, which the Exchange believes 
will enhance competition among market participants, to the benefit of 
investors and the marketplace.
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    \7\ 15 U.S.C. 78f(b).
    \8\ 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: (1) Does not 
significantly affect the protection of investors or the public 
interest; (2) does not impose any significant burden on competition; 
and (3) by its terms, does not become operative for 30 days after the 
date of filing, 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 \9\ and Rule 19b-4(f)(6) thereunder.\10\
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    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 17 CFR 240.19b-4(f)(6).
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    A proposed rule change filed under Rule 19b-4(f)(6) normally does 
not become operative for 30 days after the date of filing.\11\ However, 
Rule 19b-4(f)(6)(iii) permits the Commission to designate a shorter 
time if such action is consistent with the protection of investors and 
the public interest. The Exchange requested that the Commission waive 
the 30-day operative delay and designate the proposed rule change 
operative upon filing.
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    \11\ 17 CFR 240.19b-4(f)(6)(iii). In addition, Rule 19b-
4(f)(6)(iii) requires the self-regulatory organization to give the 
Commission 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 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 alternative listing standards 
are substantially identical to rules of other national securities 
exchanges.\12\ Therefore, the Commission designates the proposal 
operative upon filing.\13\
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    \12\ See supra note 5.
    \13\ 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.\14\
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    \14\ 15 U.S.C. 78s(b)(3)(C).
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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-NYSEArca-2009-39 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-NYSEArca-2009-39. 
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-NYSEArca-2009-39 and should be submitted on or before 
June 4, 2009.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\15\
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    \15\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-11163 Filed 5-13-09; 8:45 am]

BILLING CODE 8010-01-P