Document ID: SEC-2010-0150-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Postponing the Implementation Date of Information Memo 10-03, Which Provides Updated Parameters for, and Guidance on the Application of, the Exchange's Gap Quote Policy
Posted Date: 2010-01-28T05:00Z

[Federal Register: January 28, 2010 (Volume 75, Number 18)]
[Notices]               
[Page 4605-4606]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr28ja10-109]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-61401; File No. NYSE-2010-05]

 
Self-Regulatory Organizations; New York Stock Exchange LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
Postponing the Implementation Date of Information Memo 10-03, Which 
Provides Updated Parameters for, and Guidance on the Application of, 
the Exchange's Gap Quote Policy

January 22, 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 January 19, 2010, New York Stock Exchange LLC (the ``Exchange'' 
or ``NYSE'') 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\ 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 change the implementation date of 
Information Memo 10-03, which provides updated parameters for, and 
guidance on the application of, the Exchange's Gap Quote Policy (the 
``Policy''). 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 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 purpose of the proposed rule changes is to change the 
implementation date of Information Memo 10-03, which provides updated 
parameters for, and guidance on the application of, the Policy.\3\
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    \3\ The Exchange's corporate affiliate, NYSE Amex LLC (``NYSE 
Amex''), has submitted an identical companion filing. See SR-
NYSEAmex-2010-05. Information Memo 10-03 was issued by NYSE 
Regulation, Inc. on behalf of both the Exchange and NYSE Amex.
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    The updated Policy was adopted by the Exchange and approved by the 
Commission in a separate rule filing.\4\ In that filing, the Commission 
approved the changes to the Policy contingent on their implementation 
within 10 business days of the date of the Commission's approval order, 
i.e., by January 19, 2010. On January 7, 2010, the Exchange announced 
these changes to the Policy through the publication of Information Memo 
10-03.
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    \4\ See Securities Exchange Act Release No. 61275 (January 4, 
2010), 75 FR 1438 (January 11, 2010) (SR-NYSE-2009-112) (approving 
Information Memo 10-03).
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    As set forth in Information Memo 10-03, the Exchange proposed to 
implement the changes to the Policy on January 11, 2010. However, 
implementation of the new requirements was delayed and did not occur on 
January 11, 2010, as planned. The Exchange notified the public of the 
implementation delay by a Trader Update Notice issued on January 11, 
2010, and by Information Memo 10-06 published on January 11, 2010.
    Because the Exchange will not be able to implement the changes to 
the Policy described in Information Memo 10-03 by January 19, 2010, the 
Exchange now proposes that the changes to the Policy will be 
implemented on or before February 15, 2010, and that the Exchange will 
notify the public of the specific implementation date by issuing both a 
Trader Update Notice and an Information Memo. In addition, should the 
Exchange again need to change the implementation date, it will do so by 
issuing a Trader Update Notice and an Information Memo.

[[Page 4606]]

2. Statutory Basis
    The Exchange believes that the proposed rule changes are consistent 
with Section 6(b) of the Act,\5\ in general, and further the objectives 
of Section 6(b)(5) of the Act,\6\ in particular, in that they are 
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.
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    \5\ 15 U.S.C. 78f(b).
    \6\ 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 Exchange has filed the proposed rule change pursuant to Section 
19(b)(3)(A)(iii) of the Act \7\ and Rule 19b-4(f)(6) thereunder.\8\ 
Because the proposed rule change does not: (i) Significantly affect the 
protection of investors or the public interest; (ii) impose any 
significant burden on competition; and (iii) become operative prior to 
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, the proposed rule change has become 
effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-
4(f)(6)(iii) thereunder.
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    \7\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \8\ 17 CFR 240.19b-4(f)(6).
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    A proposed rule change filed under Rule 19b-4(f)(6) \9\ normally 
does not become operative prior to 30 days after the date of the 
filing. However, pursuant to Rule 19b4(f)(6)(iii),\10\ 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. The Commission believes 
that waiving the 30-day operative delay is consistent with the 
protection of investors and the public interest so that the Exchange 
may keep the public, including market participants, aware of the 
implementation date for the revised Policy and thereby prevent investor 
confusion. For this reason, the Commission designates the proposed rule 
change to be operative upon filing with the Commission.\11\
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    \9\ 17 CFR 240.19b-4(f)(6).
    \10\ 17 CFR 240.19b-4(f)(6)(iii). In addition, Rule 19b-
4(f)(6)(iii) requires a self-regulatory organization to provide the 
Commission with 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 Exchange has fulfilled this requirement.
    \11\ For the purposes only of waiving the 30-day operative 
delay, 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
     Send an e-mail to rule-comments@sec.gov. Please include 
File Number NYSE-2010-05 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 NYSE-2010-05. 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 the filing will also be available for 
inspection and copying at the principal office of the self-regulatory 
organization. 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 NYSE-
2010-05 and should be submitted on or before February 18, 2010.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12\
Florence E. Harmon,
Deputy Secretary.
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    \12\ 17 CFR 200.30-3(a)(12).
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[FR Doc. 2010-1693 Filed 1-27-10; 8:45 am]
BILLING CODE 8011-01-P