Document ID: SEC-2009-0880-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Decommissioning the Requirement for Member Organizations To Report Program Trading Activity on the Daily Program Trading Report
Posted Date: 2009-07-02T04:00Z

[Federal Register: July 2, 2009 (Volume 74, Number 126)]
[Notices]               
[Page 31786-31788]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr02jy09-105]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-60179; File No. SR-NYSE-2009-61]

 
Self-Regulatory Organizations; New York Stock Exchange LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
Decommissioning the Requirement for Member Organizations To Report 
Program Trading Activity on the Daily Program Trading Report

June 26, 2009.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that 
on June 24, 2009, the New York Stock Exchange LLC (the ``Exchange'' or 
``NYSE'') filed with the Securities and Exchange Commission 
(``Commission'') the proposed rule change as described in Items I, II, 
and III below, which Items have been prepared by the NYSE. The NYSE has 
filed the proposed rule change pursuant to Section 19(b)(3)(A) of the 
Act \3\ and Rule 19b-4(f)(1) thereunder,\4\ which renders the proposal 
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\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 19b-4(f)(1).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to decommission the requirement for member 
organizations to report program trading activity on the Daily Program 
Trading Report (``DPTR'').
    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 Exchange 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 these statements may be examined at the places specified in 
Item IV below. The self-regulatory organization has prepared summaries, 
set forth in sections A, B, and C below, of the most significant 
aspects 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 implement the previously approved 
decommissioning of the requirement that member organizations report 
program trading activity via the Daily Program Trading Report 
(``DPTR'').\5\ Because certain entities previously used DPTR data, the 
Exchange delayed implementing the decommissioning of the DPTR 
requirement to provide adequate time to coordinate with such entities. 
The Exchange files this rule proposal to announce the stated policy of 
the Exchange that the last trade date for which member organizations 
will be required to file the DPTR with the Exchange will be July 10, 
2009 and therefore the last required date to submit the DPTR will be 
July 14, 2009.
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    \5\ See Securities Exchange Act Release No. 55793 (May 22, 
2007), 72 FR 29567 (May 29, 2007) (SR-NYSE-2007-34).
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Background
    In 2007, the Exchange filed a rule proposal to update the 
definition of program trading and to make certain conforming changes to 
rules governing program trading at the Exchange (the ``2007 rule 
filing'').\6\ In addition to amending the definition of program 
trading, the Exchange proposed to streamline the reporting process that 
member organizations must follow when reporting program trading.\7\
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    \6\ See Securities Exchange Act Release No. 55615 (Apr. 11, 
2007), 72 FR 19225 (Apr. 17, 2007) (SR-NYSE-2007-34).
    \7\ Beginning in 1988, the Exchange required that member 
organizations report program trading by the close of the second 
business day following the trade day on the DPTR.
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    In the 2007 rule filing, the Exchange proposed to eliminate DPTR. 
The 2007 filing noted that there was some duplication between the DPTR 
data and the audit trail information that member organizations provide 
to the Exchange via account-type indicators at the time that they 
submit program trades to the Exchange. The Exchange uses account type 
indicators to capture program trade information for those portions of 
the

[[Page 31787]]

program trades that are submitted to and executed on the Exchange.
    In the 2007 rule filing, the Exchange also proposed to redefine two 
of the existing program trading related account type indicators.
    Following approval of the rule filing and after consultation with 
the Commission the Exchange announced that it would delay 
implementation of the two redefined account type indicators, and 
pending such implementation, member organizations would be required to 
continue filing the DPTR with the Exchange.\8\ The current delayed 
implementation date of the redefined account type indicators is June 
30, 2009. Accordingly, the Exchange still requires member organizations 
to submit DPTR.
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    \8\ See NYSE Information Memos 07-52 (June 11, 2007), 07-88 
(Aug. 31, 2007), 08-4 (Jan. 16, 2008), 08-25 (Apr. 30, 2008), and 
08-64 (Dec. 15, 2008) (extending the reporting requirement changes 
to June 30, 2009).
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Proposed Stated Policy, Practice, and Interpretation of Exchange Rules
    The Exchange proposes to implement the decommissioning of the DPTR 
requirement following the July 10, 2009 trade date. Accordingly, the 
last required submission of the DPTR will be on July 14, 2009, which is 
the second business day after the last trade date for which the DPTR is 
required.
    Separately, the Exchange notes that in connection with this 
proposed stated policy, the Exchange will not be implementing the 
proposed redefined program trading account type indicators (J and K) 
and will continue to use the existing J and K audit trail account 
types. Upon further analysis and based on industry input, the Exchange 
has determined that these redefined account type indicators do not 
enhance the regulatory audit trail because the proposed redefined J and 
K could subsume some of the other, more granular account type 
indicators that the Exchange currently receives. Accordingly, the 
Exchange sees no benefit to changing the current J and K account types.
    In lieu of DPTR, the Exchange will utilize existing account type 
indicator data--which captures program trade information for those 
orders that are submitted to and executed on the Exchange--to report to 
the Commission on a weekly basis the program trading statistics for 
portions of program trades executed on the Exchange. Accordingly, 
beginning on July 23, 2009, the Exchange will provide the Commission 
with its weekly statistics on program trading based on account type 
indicator data rather than DPTR data. Similarly, at the same time, the 
weekly statistics regarding program trades that the Exchange provides 
to media outlets will also be derived from account type indicator data 
rather than the DPTR.
2. Statutory Basis
    The statutory basis for the proposed rule change is Section 6(b)(5) 
of the Act \9\ which requires the rules of an exchange 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, because the Commission has previously approved the 
decommissioning of the DPTR, this rule filing simply implements a 
previously approved change.
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    \9\ 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 foregoing rule change has become effective pursuant to Section 
19(b)(3)(A) of the Act \10\ and Rule 19b-4(f)(1) \11\ thereunder. The 
proposed rule change effects a change that constitutes a stated policy, 
practice, or interpretation with respect to the meaning, 
administration, or enforcement of an existing rule. In particular, the 
Commission previously approved the elimination of the DPTR reporting 
requirements. The Exchange has delayed implementing that prior rule 
change and through this rule filing, announces its stated policy that 
July 10, 2009 will be the last trade date for which member 
organizations will be required to file the DPTR.
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    \10\ 15 U.S.C. 78s(b)(3)(A).
    \11\ 17 CFR 19b-4(f)(1).
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    At any time within 60 days of the filing of such 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-NYSE-2009-61 on the subject line.

Paper Comments

     Send paper comments in triplicate to Elizabeth M. Murphy, 
Secretary, Securities and Exchange Commission, Station Place, 100 F 
Street, NE., Washington, DC 20549-1090.

All submissions should refer to File Number SR-NYSE-2009-61. 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, 100 F Street, NE., 
Washington, DC 20549, 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 NYSE. 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 publicly available. All 
submissions should refer to File Number SR-NYSE-2009-61 and should be 
submitted on or before July 23, 2009.

[[Page 31788]]

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12\
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    \12\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-15613 Filed 7-1-09; 8:45 am]

BILLING CODE 8010-01-P