Document ID: SEC-2010-0707-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NYSE Arca, Inc.
Posted Date: 2010-05-12T04:00Z

[Federal Register: May 12, 2010 (Volume 75, Number 91)]
[Notices]               
[Page 26832-26837]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr12my10-129]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-62052; File No. SR-NYSEArca-2010-38]

 
Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by NYSE Arca, Inc. to Clarify, 
Eliminate, Revise, or Delete Certain Out-Dated or Obsolete Rules

May 6, 2010.
    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 April 28, 2010, NYSE Arca, Inc. (``NYSE Arca'' or ``Exchange'') 
filed with the Securities and Exchange Commission (the ``Commission'') 
the proposed rule change as described in Items I, II, and III 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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[[Page 26833]]

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to revise its rules by clarifying existing 
provisions, eliminating superfluous provisions, and revising or 
deleting certain out-dated or obsolete rules. The text of the proposed 
rule change is available on the Exchange's Web site at http://
www.nyse.com, at the principal office of the Exchange, on the 
Commission's Web site at http://www.sec.gov, and at the Commission's 
Public Reference Room.

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 these 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 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 purpose of this filing is to revise certain Exchange rules in 
order to clarify existing provisions, eliminate superfluous provisions, 
delete certain out-dated or obsolete rules and to incorporate current 
policies and procedures applicable to existing rules. A description of 
each of the proposed rules changes is shown below.
    Rule 2.12--OTP Holders and OTP Firms:
    Rule 2.12(a) requires that each OTP Firm and OTP Holder shall be 
fully qualified to do business in California. This rule dates back to 
when NYSE Arca (f/k/a The Pacific Exchange) was headquartered in 
California and all business on the Exchange was conducted on the 
physical trading floor.
    While the Exchange still operates a trading floor in California, 
OTP Holders and OTP Firms are not required to have a floor presence. 
OTP Holders and OTP Firms are able to conduct business from remote 
locations throughout the country.
    NYSE Arca proposes to remove this outdated and obsolete requirement 
that OTP Holders and OTP Firms be fully qualified to conduct business 
in California.
    Rule 2.24--Floor Employees of OTP Firms:
    Rule 2.24(d) states that an OTP Firm or OTP Holder with an employee 
on the options trading floor of the Exchange must have at least one OTP 
Holder or nominee present on the floor at all times, and that such OTP 
Holders or nominees shall be responsible for all floor employees of the 
OTP Firm. The rationale for this rule is to help ensure that there is 
adequate supervision of all firm employees while on the options trading 
floor.
    With the advent of remote market making and electronic access, NYSE 
Arca no longer requires that all OTP Holders, or nominees thereof, be 
physically present on the floor. However, there could be occasions 
where an OTP Firm does have employees on the floor, but the actual 
person designated as the OTP Holder works from a remote location. These 
employees would typically operate in a trade support, technical or 
clearing capacity, but would not be directly involved in the trading of 
options.
    Pursuant to Rule 11.18, OTP Holders or OTP Firms must establish and 
maintain a system to supervise the activities of its associated persons 
and the operations of its business. Such system must be reasonably 
designed to ensure compliance with applicable federal securities laws 
and regulations and the rulers [sic] of NYSE Arca. In addition, OTP 
Holders and OTP Firms must designate a person with authority to 
reasonably discharge his/her duties and obligations in connection with 
supervision and control of the activities of the associated persons of 
the OTP Holder or OTP Firm. In addition, the OTP Holder or OTP Firm 
must undertake reasonable efforts to determine that all supervisory 
personnel are qualified by virtue of experience or training to carry 
out their assigned responsibilities.
    The Exchange now proposes to revise Rule 2.24 so that an OTP Holder 
or OTP Firm with employees on the options trading floor, none of which 
are directly involved in the trading of options, will no longer be 
required to have an OTP Holder, or Nominee thereof, present on the 
options trading floor at all times. Instead, the Exchange proposes that 
in keeping with the supervisory obligations contained in rule 11.18, 
OTP Holders and OTP Firms with non-trading employees on the options 
floor, must have at least one employee with supervisory 
responsibilities present on the trading floor. Each OTP Holder or OTP 
Firm must designate and specifically identify to the Exchange one or 
more persons who will be responsible for supervision and control of the 
activities of the associated persons of the OTP Holder or OTP Firm.
    This rule change does not in any way affect the obligation of OTP 
Holders and OTP Firms to properly supervise their floor employees. The 
proposed rule change is simply designed to offer flexibility to OTP 
Holders and OTP Firms when establishing their supervisory systems in 
accordance with Rule 11.18.
    Rule 3.1--Overview:
    Rule 3.1 Commentary .01 contains an outdated provision related to 
the demutualization of The Pacific Exchange (n/k/a NYSE Arca). 
Commentary .01 states that rule changes regarding demutualization in 
SR-PCX-2004-08 would become effective once the appropriate federal and 
state regulatory approvals were received and NYSE Arca filed the 
applicable documentation with the State of Delaware. All approvals 
pertaining to the demutualization of the Pacific Exchange were 
received, and all applicable documentation was filed with the State of 
Delaware. The Exchange now proposes to delete Rule 3.1 Commentary .01, 
in its entirety.
    Rule 6.17--Verification of Compared Trades and Reconciliation of 
Uncompared Trades:
    Rule 6.17 Commentary .01 states that OTP Holders and OTP Firms that 
are clearing members of the Options Clearing Corporation must have a 
representative physically present on the trading floor to reconcile 
uncompared trades. In addition, Rule 6.17 Commentary .01 contains 
guidelines for how long such representative must remain on the floor 
after the close of trading.
    The Exchange realizes that it is no longer necessary for a 
representative of an OTP Holder or OTP Firm to be physically present on 
the trading floor in order to reconcile uncompared trades. Thus, the 
Exchange proposes to revise Rule 6.17, Commentary .01 by adding 
language stating that in addition to being physically present on the 
floor, such representative may be accessible via telephone or e-
mail.\3\ In addition, the Exchange proposes to remove the specific 
guidelines for how long a representative must remain available after 
the close of trading and instead state that a representative of an OTP 
Holder or OTP Firm must be available to resolve unmatched trades until 
the

[[Page 26834]]

final trade transmission is sent to The Options Clearing Corporation 
(``OCC'').\4\
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    \3\ OTP Holders and OTP Firms are required to keep a current e-
mail address on file with the Exchange. In addition, the NYSE Arca 
Trade Processing Department maintains contact names and phone 
numbers for all OTP Holders.
    \4\ This requirement is based on Rule 6.61(a) of The Chicago 
Board Options Exchange.
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    Rule 6.17 also states that OTP Holders and OTP Firms, that are 
clearing members of the Options Clearing Corporation, must have a 
representative present on the floor each Saturday immediately following 
expiration, and that it is the responsibility of the Exchange staff 
member to determine that such representative is present. The Exchange 
now proposes to add language stating that an alternative to being 
physically present on the floor, such representative may be accessible 
via telephone or e-mail.
    In addition, Exchange staff will no longer make a determination as 
to whether representatives are present on the Trading Floor, or 
otherwise accessible. However, it will be considered a violation of 
Rule 6.17 if the responsible OTP Holder or OTP Firm is not available to 
reconcile an uncompared trade when contacted by NYSE Arca Trade 
Processing Department.
    Currently, OTP Holders that fail to remain accessible for a 
specified amount of time after trade processing are subject to 
disciplinary action pursuant to the NYSE Arca Minor Rule Plan. The 
Exchange proposes to revise the text in Rule 10.12(h)(9) and Rule 
10.12(k)(9) of the Minor Rule Plan to state that it will be a violation 
if an OTP Holder is not available when contacted by the Exchange to 
reconcile an uncompared trade.
    Rule 6.29--Payment for Floor Brokerage Services:
    When an OTP Holder acts as a Floor Broker for another OTP Holder 
they may receive remuneration for such brokerage services. Rule 6.29 
states that payment of brokerage commissions to Floor Brokers shall be 
made no later than the thirtieth day of the month provided that an 
invoice detailing the brokerage charges for the services performed is 
delivered to the OTP Holder or OTP Firm receiving such brokerage 
services no later than the tenth day of that month.
    The terms of floor brokerage remuneration is generally spelled out 
in a contractual agreement between OTP Holders. The Exchange does not 
set commission rates for brokerage services, nor is the Exchange a 
party to any contractual agreements between OTP Holders, nor is the 
Exchange involved in the billing and collecting of such commissions. 
All terms related to the payment of brokerage commissions are between 
OTP Holders, and do not in any way involve the Exchange.\5\ Therefore, 
NYSE Arca does not believe there is cause for an Exchange rule that 
specifies when payment for brokerage services is payable by OTP 
Holders.
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    \5\ The Exchange notes that books and records pertaining to 
brokerage commissions may be requested by the Exchange during the 
course of an examination or investigation of OTP Holders and OTP 
Firms.
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    The Exchange proposes to delete the text of Rule 6.29 in its 
entirety and reserve the rule number for future use.
Rule 6.32--Market Maker Defined
    6.32A--Market Maker Defined--OX:
    Rule 6.32(a) defines a Market Maker as an individual who is 
registered with the Exchange for the purpose of making transactions as 
a dealer-specialist on the Floor of the Exchange or for the purpose of 
submitting quotes electronically and making transactions as a dealer-
specialist through the NYSE Arca OX electronic trading system.
    Rule 6.32A defines a Market Maker as an OTP Holder or OTP Firm that 
is registered with the Exchange for the purpose of submitting quotes 
electronically and making transactions as a dealer-specialist through 
the OX trading platform from on the trading floor or remotely from off 
the trading floor.
    Both 6.32(a) and 6.32A also contain additional descriptive language 
regarding Market Makers, and Lead Market Makers. This language is 
virtually identical in both rules. In addition, Rule 6.32A contains a 
provision that states that a Market Maker submitting quotes remotely is 
not eligible to participate in trades effected in open outcry except to 
the extent that such Market Maker's quotation represents the BBO.
    Given that the two rules described above are vastly similar, the 
Exchange now proposes to delete Rule 6.32A in its entirety while 
incorporating a portion of it into Rule 6.32(a). Since most of Rule 
6.32A is already included in Rule 6.32(a), Rule 6.32(a) will remain 
virtually unchanged except for the addition of a new subsection (2) 
which will contain the provision from Rule 6.32A regarding a remote 
Market Maker's ability to participate in trades effected in open 
outcry.
    This proposal is intended to simplify existing rules regarding the 
definition of a Market Maker by deleting the duplicative text contained 
in Rule 6.32A, while incorporating the still relevant portions into 
Rule 6.32(a). This rule change will not in any way affect the rights or 
obligations of Market Makers.
    The Exchange also proposes to make technical revisions to rule 
reference contained in Rule 6.1A(a)(8) and Rule 6.87 Commentary .05 to 
reflect the proposed change to Rule 6.32A.
Rule 6.36--Letters of Guarantee
    Rule 6.45--Letters of Authorization:
    Rule 6.36(c) addresses Letters of Guarantee for Market Makers and 
states that a Letter of Guarantee shall remain in effect until a final 
written notice of revocation has been filed with the Exchange and 
posted on the bulletin board of the Options Trading Floor. If such 
final written notice has not been posted for at least one hour prior to 
the opening of trading on a particular business day, such revocation 
shall not become effective until the close of trading on such day.
    Rule 6.45(c) addresses Letters of Authorization for Floor Brokers 
and states that a Letter of Authorization shall remain in effect until 
a written notice of revocation has been filed with the Exchange and 
posted on the bulletin board of the Options Trading Floor. If such 
written notice has not been posted for at least one hour prior to the 
opening of trading on a particular business day, such revocation shall 
not become effective until the close of trading on such day.
    NYSE Arca believes that the posting of notices of revocation on a 
bulletin board is simply an administrative function of the Exchange and 
should not actually define when a notice of revocation should be 
effective. The Exchange does not believe that it is necessary to 
require the actual posting of notices of revocations in order for them 
to be effective, provided the Exchange does receive notification at 
least one hour prior to the opening of trading.
    The Exchange now proposes to revise Rule 6.36(c) and Rule 6.45(c) 
by removing the requirement that the Exchange post the Letter of 
Revocation on the bulletin board on the floor one hour before the 
opening of business in order for the revocation to be effective. 
Instead, pursuant to the proposed rule change, Letters of Guarantee and 
Letters of Authorization will remain in effect until a final written 
notice of revocation has been filed via e-mail with the Exchange. If 
such final written notice has not been received via e-mail by the 
Exchange at least one hour prior to the opening of trading on a 
particular business day, such revocation shall not become effective 
until the close of trading on such day.
    Making notices of revocation, filed one hour before the opening of 
trading, effective without posting on a bulletin

[[Page 26835]]

board is consistent with rules regarding notices of revocation 
presently in place at NASDAQ OMX PHLX, and NYSE Amex.\6\
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    \6\ See NASDAQ PHLX OMX Rule 1062(c), NYSE Amex Rule 924NY(c).
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    The Exchange recognizes that posting notices on the bulletin board 
also serves as a way to communicate membership information to OTP 
Holders. Accordingly, NYSE Arca will continue to publish the names of 
all terminated Market Makers and Floor Brokers in the Weekly Bulletin. 
The Weekly Bulletin is distributed via e-mail to all OTP Holders and is 
also posted on the Exchange Web site.\7\
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    \7\ NYSE Arca Weekly Bulletins can be found at http://
www.nyx.com/regulation, under ``Public Information.''
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Rule 6.37--Obligations of Market Makers
    Rule 6.37A--Obligations of Market Makers--OX:
    NYSE Arca proposes to amend Rules 6.37 and 6.37A by eliminating 
provisions in each rule that provide for bids/offers to be no higher/
lower than the last preceding transaction plus or minus the aggregate 
change in the last sale price of the underlying security (``one point 
rule'').
    Specifically, Rule 6.37(b)(2) and Rule 6.37A(b)(6) both provide 
that Market Makers are expected ordinarily not to bid more than $1 
lower or offer more than $1 higher than the last preceding transaction 
price for the particular option contract plus or minus the aggregate 
change in the last sale price of the underlying security since the time 
of the last preceding transaction for the particular option contract.
    The Exchange now proposes to eliminate the one point rule. The one 
point rule was first established when NYSE Arca (f/k/a The Pacific 
Exchange) started trading listed options in 1976. Since that time 
various market changes have rendered the rule obsolete and unnecessary. 
For example, market makers are now subject to various quotation 
requirements, including bid/ask quote width requirements contained 
elsewhere in Rules 6.37 and 6.37A. The Exchange also has an obvious 
error rule that contains provisions on erroneous pricing errors (e.g., 
Rule 6.87). In addition, the NYSE Arca automated trading system has in 
place certain price check parameters that will not permit the automatic 
execution of certain orders if the execution would take place at prices 
inferior to the national best bid/offer.
    The text of Rule 6.37(b)(2) and Rule 6.37A(b)(6) will be deleted; 
however the Exchange proposes to designate the rule numbers as 
``reserved'' for possible future use.
    The elimination of the NYSE Arca one point rule is consistent with 
similar rule changes by the Chicago Board Options Exchange (``CBOE'') 
and the International Securities Exchange (``ISE'').\8\
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    \8\ See Securities Exchange Act Release No. 60295 (July 13, 
2009), 74 FR 35215 (July 20, 2009) (SR-CBOE-2009-49) and Securities 
Exchange Act Release No. 60897 (October 28, 2009) 74 FR 57217 
(November 4, 2009) (SR-ISE-2009-85).
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    NYSE Arca is also proposing to make non-substantive changes to 
certain provisions of Rules 6.37 and 6.37A containing references to the 
proposed rule deletions.
    Rule 6.60--Order Service Firms:
    An Order Service Firm is an OTP Holder or OTP Firm that is 
registered with the Exchange for the purpose of accepting orders for 
the purchase or sale of stocks or commodity futures contracts from 
Market Makers on the Floor of the Exchange, and forwarding such orders 
for execution.
    Prior to the advent of electronic access to the equities markets, 
Market Makers on the floor of the Exchange would use Order Service 
Firms to place stock orders used in hedging options trades. All Market 
Makers now have electronic access to the equities markets, rendering 
the use of an Order Service Firm obsolete. There are presently no Order 
Service Firms operating on the floor,\9\ nor does the Exchange 
anticipate ever having the need for them in the future. Therefore, NYSE 
Arca proposes to delete the language from Rule 6.60 in its entirety, 
and reserve the rule number for possible future use.
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    \9\ The last Order Service Firm ceased operations on the floor 
of the Exchange in 2005.
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    Rule 6.66--Order Identification:
    Rule 6.66 deals with order identification and a Floor Broker's 
responsibility to disclose certain information pertaining to the party 
for whom they are acting as agent.
    Rule 6.66 Commentary .01 requires a Floor Broker, when requesting a 
market and size, to disclose the name of the OTP Holder or OTP Firm for 
whom he is acting. Commentary .01 goes on to say a Floor Broker must, 
upon request, disclose the name of such OTP Holder or OTP Firm 
immediately upon effecting any transaction.
    NYSE Arca no longer believes that it is necessarily in the best 
interest of the marketplace to require Floor Brokers to supply such 
information when requesting quotations or effecting transactions. The 
Exchange feels that disclosing the name of the OTP Holder or OTP Firm 
when asking for a market and size could lead to disparate treatment on 
the part of trading crowd participants. Furthermore, requiring a Floor 
Broker to disclose the name of the OTP Holder or OTP Firm participating 
on a trade is not in keeping with an effort to provide anonymity when 
trading on NYSE Arca.
    While these provisions may have had merit when initially enacted, 
they have become outdated by today's standards. There are other 
provisions within Exchange rules requiring a Floor Broker to disclose 
when they are trading on behalf of a BD or Market Maker, without 
compromising the anonymity of the market. Therefore, the Exchange 
proposes to eliminate Commentary .01 in its entirety.
    Rule 6.68--Record of Orders:
    Rule 6.68(a) requires OTP Holder and OTP Firms to maintain and 
preserve a record of every order and of any other instruction given or 
received for the purchase or sale of option contracts for the period 
specified under SEC Rule 17a-4. Rule 6.68(a) also states that the 
Exchange shall maintain and preserve all electronic orders on behalf of 
OTP Holders and OTP Firms.
    The maintenance and preservation of electronic orders by the 
Exchange, on behalf of OTP Holders and OTP Firms, came about in 2004 
when the Exchange introduced the Electronic Order Capture (``EOC'') 
System.\10\ The EOC system is the Exchange's electronic audit trail and 
order tracking system designed to provide an accurate time-sequenced 
record of all orders and transactions on the Exchange. Prior to the 
introduction of the EOC system, all orders were written on paper 
tickets, the maintenance of which was the responsibility of OTP Holders 
and OTP Firms. The EOC system is an Exchange proprietary system and at 
the time it was introduced OTP Holders and OTP Firms did not have 
access to historic order records contained in the system. In order to 
allow OTP Holders and OTP Firms to remain in compliance with their own 
books and records requirements, the Exchange preserved and maintained 
all records of electronic orders on their behalf. In the event an OTP 
Holder or OTP Firm needed access to these order records, the Exchange 
would furnish such records upon request.
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    \10\ See SR-PCX-2004-122 (December 14, 2004), Securities 
Exchange Act Release No. 50854 (December 14, 2004), 72 FR 76808 
(December 22, 2004).
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    Beginning in 2007, the Exchange made electronic order records 
available to OTP Holders and OTP Firms via an electronic file. OTP 
Holders and OTP Firms are able to download this file on

[[Page 26836]]

a daily basis and store the information on their own proprietary 
systems. The information contained in the daily report is identical to 
the information that the Exchange kept on behalf of OTP Holders and OTP 
Firms. Each daily trade report remains available on-line for a period 
of thirty days. Since OTP Holders and OTP Firms can now access this 
information themselves, there is no longer an ongoing need for the 
Exchange to maintain such records on behalf of OTP Holders and OTP 
Firms. The Exchange now proposes to remove the provision in Rule 
6.68(a) that states that the Exchange shall maintain and preserve all 
electronic orders on behalf of OTP Holders and OTP Firms.
    NYSE Arca notes that this proposed rule change only affects the 
Exchange's maintenance and preservation of electronic order records on 
behalf of OTP Holders and OTP Firms. The proposed rule change does not 
in any way alter the Exchange's obligation to maintain and preserve 
order records pursuant to its own books and records requirements.
    Rule 6.70--Price Binding Despite Erroneous Report:
    Rule 6.70 states that the price at which an order is executed shall 
be binding notwithstanding that an erroneous report in respect thereto 
may have been rendered, or no report rendered. In addition, Rule 6.70 
contains commentary pertaining to erroneous prints and trades in 
securities underlying options traded on the Exchange.
    At the time this rule was adopted in 1999,\11\ all trading was 
conducted on the floor of the Exchange via open outcry. Since that 
time, the Exchange has introduced electronic options trading, along 
with associated rules governing such trading. Specifically, erroneous 
transactions in the electronic market are governed by Rule 6.87. The 
Exchange now proposes to add commentary to Rule 6.70 stating that the 
rule is applicable only to non-electronic orders and transactions. The 
proposed rule change does not alter existing Exchange procedures 
pertaining to erroneous transactions, but simply serves to offer 
clarity on the applicability of Rule 6.70 to open outcry transactions 
only.
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    \11\ See SR-PCX-1999-44 (October 29, 1999), Securities Exchange 
Act Release No. 43149 (August 11, 2000), 65 FR 51392 (August 23, 
2000) (File No. SR-PCX-99-44).
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act \12\ in general, and furthers the 
objectives of Section 6(b)(5) of the Act \13\ in particular, because 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 facilitating 
transactions in securities, and to remove impediments to and perfect 
the mechanism of a free and open market and a national market system. 
The changes proposed in this filing are simply designed to eliminate or 
revise outdated or obsolete rules and practices on NYSE Arca.
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    \12\ 15 U.S.C. 78f(b).
    \13\ 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 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 either 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 \14\ and Rule 19b-4(f)(6) thereunder.\15\ 
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 \16\ and Rule 19b-
4(f)(6)(iii) thereunder.\17\
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    \14\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \15\ 17 CFR 240.19b-4(f)(6).
    \16\ 15 U.S.C. 78s(b)(3)(A).
    \17\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii) 
requires the Exchange to give the Commission written notice of the 
Exchange's 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 the pre-filing requirement.
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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 SR-NYSEArca-2010-38 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-2010-38. 
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, 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-NYSEArca-2010-38 and should be submitted on or before 
June 2, 2010.

[[Page 26837]]

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\18\
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    \18\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-11253 Filed 5-11-10; 8:45 am]
BILLING CODE 8010-01-P