Document ID: SEC-2010-1460-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NYSE Amex LLC
Posted Date: 2010-09-24T04:00Z

[Federal Register: September 24, 2010 (Volume 75, Number 185)]
[Notices]               
[Page 58464-58465]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr24se10-155]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-62941; File No. SR-NYSEAmex-2010-94]

 
Self-Regulatory Organizations; NYSE Amex LLC; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change to Add Certain 
Rules to the List of Exchange Rule Violations and Fines Applicable 
Thereto

September 20, 2010.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(the ``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given 
that on September 9, 2010, NYSE Amex LLC (the ``Exchange'' or ``NYSE 
Amex'') 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 Exchange. 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.
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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 NYSE Amex Disciplinary Rule 476A to 
add certain rules to Part 1A: List of Exchange Rule Violations and 
Fines Applicable Thereto (``Minor Rule Violation Plan''). 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, at the 
Commission's Public Reference Room, and on the Commission's Web site at 
http://www.sec.gov.

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
    The Exchange proposes to amend NYSE Amex Disciplinary Rule 476A to 
add certain rules to Part 1A of its Minor Rule Violation Plan to 
reflect approved changes to Exchange rules.\3\ Specifically, in 
connection with the Exchange's process to harmonize certain Exchange 
rules with rules of the Financial Industry Regulatory Authority, Inc. 
(``FINRA''), the Exchange has deleted certain Exchange rules and 
replaced them with new rules that have different rule numbers. The 
Exchange proposes this rule filing to add the new rule references to 
the Minor Rule Violation Plan for those rules that have been added as 
part of the FINRA harmonization process. The Exchange will not delete 
the old rule references in the Minor Rule Violation Plan so that 
violations of prior Exchange rules that occurred before the amendments 
described below took effect still fall under the jurisdiction of the 
Minor Rule Violation Plan.
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    \3\ The Exchange's corporate affiliate, New York Stock Exchange 
LLC (``NYSE''), submitted a companion rule filing proposing 
corresponding amendments to NYSE Rule 476A. See SR-NYSE-2010-66.
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    In connection with the harmonization process, the Exchange adopted 
the following new NYSE Amex Equities Rules, which correspond with the 
same-numbered consolidated FINRA Rules, and which replaced prior 
Exchange rules:
     Rule 2150--NYSE Amex Equities (Improper Use of Customers' 
Securities or Funds; Prohibition Against Guarantees and Sharing in 
Accounts) replaced old Rules 352(a)-(d)--NYSE Amex Equities;
     Rule 3130--NYSE Amex Equities (Annual Certification of 
Compliance and Supervisory Processes) replaced, in relevant part, old 
Rules 342.30(d)- and (e)-NYSE Amex Equities and Rule Interpretation 
311(b)(5)--NYSE Amex Equities;
     Rule 3310--NYSE Amex Equities (Anti-Money Laundering 
Compliance Program) replaced old Rule 445--NYSE Amex Equities;
     Rule 4110--NYSE Amex Equities (Capital Compliance) 
replaced, in

[[Page 58465]]

relevant part, old Rules 312(h)- and 313-NYSE Amex Equities;
     Rule 4521--NYSE Amex Equities (Notifications, 
Questionnaires and Reports) replaced, in relevant part, old Rule 421--
NYSE Amex Equities;
     Rule 4560--NYSE Amex Equities (Short-Interest Reporting) 
replaced old Rules 421(1)- and 421.10-NYSE Amex Equities; and
     Rule 5190--NYSE Amex Equities (Notification Requirements 
for Offering Participants) replaced old Rule 392--NYSE Amex 
Equities.\4\
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    \4\ See Securities Exchange Act Release Nos. 59975 (May 26, 
2009), 74 FR 26449 (June 2, 2009) (SR-NYSEAltr-2009-26) (adopting, 
inter alia, NYSE Amex Equities Rules 3130, 4560, 5190); 61157 
(December 11, 2009), 74 FR 67939 (December 21, 2009) (SR-NYSEAmex-
2009-88) (adopting NYSE Amex Equities Rule 2150); 61272 (December 
31, 2009), 75 FR 1099 (January 8, 2010) (SR-NYSEAmex-2009-99) 
(adopting NYSE Amex Equities Rule 3310); 61556 (February 22, 2010), 
75 FR 9468 (March 2, 2010) (SR-NYSEAmex-2010-13) (adopting, inter 
alia, NYSE Amex Equities Rules 4110, 4521). See also NYSE and NYSE 
Amex Information Memoranda 09-24 (June 2, 2009); 10-09 (February 18, 
2010); 10-12 (March 11, 2010).
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    These old Rules, or certain provisions thereof, are subject to the 
Exchange's Minor Rule Violation Plan under NYSE Amex Disciplinary Rule 
476A. At the time the new Rules were adopted to replace the old 
Exchange Rules, however, they were not added to the Exchange's Minor 
Rule Violation Plan. The Exchange therefore proposes to update the 
Exchange's Minor Rule Violation Plan under NYSE Amex Disciplinary Rule 
476A by adding the new rule references identified above.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with, and furthers the objectives of, Section 6(b)(5) of the Act,\5\ 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 proposed rule change also furthers the objectives 
of Section 6(b)(6) of the Act,\6\ in that it provides for appropriate 
discipline for violations of Exchange rules and regulations.
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    \5\ 15 U.S.C. 78f(b)(5).
    \6\ 15 U.S.C. 78f(b)(6).
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    The Exchange believes that the proposed rule change will provide 
the Exchange with greater regulatory flexibility to enforce the 
prescriptions of certain rules in a more informal manner while also 
preserving the Exchange's discretion to seek formal discipline for more 
serious transgressions as warranted.

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) of the Act \7\ and Rule 19b-4(f)(3) thereunder.\8\ Because 
the proposed rule change is concerned solely with the administration of 
the Exchange, the proposed rule change has become immediately effective 
upon filing pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-
4(f)(3) thereunder.
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    \7\ 15 U.S.C. 78s(b)(3)(A).
    \8\ 17 CFR 240.19b-4(f)(3).
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    At any time within 60 days of the filing of the proposed rule 
change, the Commission summarily may temporarily suspend 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-2010-94 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-2010-94. 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 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 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-
NYSEAmex-2010-94 and should be submitted on or before October 15, 2010.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(12); 200.30-3(a)(44).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-23911 Filed 9-23-10; 8:45 am]
BILLING CODE 8010-01-P