Document ID: SEC-2010-1458-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: New York Stock Exchange LLC
Posted Date: 2010-09-24T04:00Z

[Federal Register: September 24, 2010 (Volume 75, Number 185)]
[Notices]               
[Page 58452-58453]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr24se10-149]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-62940; File No. SR-NYSE-2010-66]

 
Self-Regulatory Organizations; New York Stock Exchange 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, New York Stock Exchange LLC (``NYSE'' 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 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 Rule 476A to add certain rules 
to its 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 Rule 476A to add certain rules 
to 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, NYSE Amex LLC (``NYSE 
Amex''), submitted a companion rule filing proposing corresponding 
amendments to NYSE Amex Disciplinary Rule 476A. See SR-NYSEAmex-
2010-94.
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    In connection with the harmonization process, the Exchange adopted 
the following new NYSE Rules, which correspond with the same-numbered 
consolidated FINRA Rules, and which replaced prior Exchange rules:
     Rule 2150 (Improper Use of Customers' Securities or Funds; 
Prohibition Against Guarantees and Sharing in Accounts) replaced old 
Rules 352(a)-(d);
     Rule 3130 (Annual Certification of Compliance and 
Supervisory Processes) replaced, in relevant part, old Rules 342.30(d) 
and (e) and Rule Interpretation 311(b)(5);
     Rule 3310 (Anti-Money Laundering Compliance Program) 
replaced old Rule 445;
     Rule 4110 (Capital Compliance) replaced, in relevant part, 
old Rules 312(h) and 313;

[[Page 58453]]

     Rule 4521 (Notifications, Questionnaires and Reports) 
replaced, in relevant part, old Rule 421;
     Rule 4560 (Short-Interest Reporting) replaced old Rules 
421(1) and 421.10; and
     Rule 5190 (Notification Requirements for Offering 
Participants) replaced old Rule 392.\4\
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    \4\ See Securities Exchange Act Release Nos. 59965 (May 21, 
2009), 74 FR 25783 (May 29, 2009) (SR-NYSE-2009-25) (adopting, inter 
alia, NYSE Rules 3130, 4560, 5190); 61158 (December 11, 2009), 74 FR 
67942 (December 21, 2009) (SR-NYSE-2009-123) (adopting NYSE Rule 
2150); 61273 (December 31, 2009), 75 FR 1091 (January 8, 2010) (SR-
NYSE-2009-134) (adopting NYSE Rule 3310); 61557 (February 22, 2010), 
75 FR 9472 (March 2, 2010) (SR-NYSE-2010-10) (adopting, inter alia, 
NYSE 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 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 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-NYSE-2010-66 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-NYSE-2010-66. 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-NYSE-2010-66 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\
Florence E. Harmon,
Deputy Secretary.
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    \9\ 17 CFR 200.30-3(a)(12); 200.30-3(a)(44).
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[FR Doc. 2010-23908 Filed 9-23-10; 8:45 am]
BILLING CODE 8010-01-P