Document ID: SEC-2010-0461-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NYSE Amex LLC
Posted Date: 2010-03-26T04:00Z

[Federal Register: March 26, 2010 (Volume 75, Number 58)]
[Notices]               
[Page 14648-14650]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr26mr10-107]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-61744; File No. SR-NYSEAMEX-2010-26]

 
Self-Regulatory Organizations; Notice of Filing of Proposed Rule 
Change by NYSE Amex LLC Deleting Rule 446--NYSE Amex Equities and 
Adopting New Rule 4370--NYSE Amex Equities To Correspond With Rule 
Changes Filed by the Financial Industry Regulatory Authority, Inc.

March 19, 2010.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby 
given that, on March 11, 2010, NYSE Amex LLC (``NYSE Amex'' or the 
``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\ 15 U.S.C. 78a.
    \3\ 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 delete Rule 446--NYSE Amex Equities and 
adopt new Rule 4370--NYSE Amex Equities to correspond with rule changes 
filed by the Financial Industry Regulatory Authority, Inc. (``FINRA'') 
and approved by the Commission.\4\ The text of the proposed rule change 
is available at the Exchange, the Commission's Public Reference Room, 
and http://www.nyse.com.
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    \4\ See Securities Exchange Act Release No. 60534 (August 19, 
2009), 74 FR 44410 (August 28, 2009) (order approving SR-FINRA-2009-
036).
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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 purpose of the proposed rule changes is to delete Rule 446--
NYSE Amex Equities (Business Continuity and Contingency Plans) and 
adopt new Rule 4370--NYSE Amex Equities (Business Continuity Plans and 
Emergency Contact Information) to correspond with rule changes filed by 
FINRA and approved by the Commission.

Background

    On July 30, 2007, FINRA's predecessor, the National Association of 
Securities Dealers, Inc. (``NASD''), and NYSE Regulation, Inc. 
(``NYSER'') consolidated their member firm regulation operations into a 
combined organization, FINRA. Pursuant to Rule 17d-2 under the Act, the 
New York Stock Exchange LLC (``NYSE''), NYSER and FINRA entered into an 
agreement (the ``Agreement'') to reduce regulatory duplication for 
their members by allocating to FINRA certain regulatory 
responsibilities for certain NYSE rules and rule interpretations 
(``FINRA Incorporated NYSE Rules''). The Exchange became a party to the 
Agreement effective December 15, 2008.\5\
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    \5\ See Securities Exchange Act Release Nos. 56148 (July 26, 
2007), 72 FR 42146 (August 1, 2007) (order approving the Agreement); 
56147 (July 26, 2007), 72 FR 42166 (August 1, 2007) (SR-NASD-2007-
054) (order approving the incorporation of certain NYSE Rules as 
``Common Rules''); and 60409 (July 30, 2009), 74 FR 39353 (August 6, 
2009) (order approving the amended and restated Agreement, adding 
NYSE Amex LLC as a party). Paragraph 2(b) of the Agreement sets 
forth procedures regarding proposed changes by FINRA, NYSE or NYSE 
Amex to the substance of any of the Common Rules.

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[[Page 14649]]

    As part of its effort to reduce regulatory duplication and relieve 
firms that are members of FINRA, NYSE and NYSE Amex of conflicting or 
unnecessary regulatory burdens, FINRA is now engaged in the process of 
reviewing and amending the NASD and FINRA Incorporated NYSE Rules in 
order to create a consolidated FINRA rulebook.\6\
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    \6\ FINRA's rulebook currently has three sets of rules: (1) NASD 
Rules, (2) FINRA Incorporated NYSE Rules, and (3) consolidated FINRA 
Rules. The FINRA Incorporated NYSE Rules apply only to those members 
of FINRA that are also members of the NYSE, while the consolidated 
FINRA Rules apply to all FINRA members. For more information about 
the FINRA rulebook consolidation process, see FINRA Information 
Notice, March 12, 2008.
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Proposed Conforming Amendments to NYSE Amex Equities Rules

    In 2008, FINRA deleted FINRA Incorporated NYSE Rule 446 (Business 
Continuity and Contingency Plans) as substantively duplicative of NASD 
Rules 3510 (Business Continuity Plans) and 3520 (Emergency Contact 
Information).\7\ Correspondingly, the Exchange amended Rule 446--NYSE 
Amex Equities (Business Continuity and Contingency Plans) to remove the 
existing text and incorporate NASD Rules 3510 and 3520 by reference.\8\ 
Subsequently, FINRA adopted, subject to certain amendments, NASD Rules 
3510 and 3520 as consolidated FINRA Rule 4370 (Business Continuity 
Plans and Emergency Contact Information).\9\
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    \7\ See Securities Exchange Act Release No. 58533 (September 12, 
2008), 73 FR 54652 (September 22, 2008) (order approving SR-FINRA-
2008-036).
    \8\ See Securities Exchange Act Release No. 59022 (November 26, 
2008), 73 FR 73683 (December 3, 2008) (order approving SR-NYSEALTR-
2008-10).
    \9\ See Securities Exchange Act Release No. 60534 (August 19, 
2009), 74 FR 44410 (August 28, 2009).
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    In order to harmonize the NYSE Amex Equities Rules with the 
approved consolidated FINRA Rules, the Exchange correspondingly 
proposes to delete Rule 446--NYSE Amex Equities and replace it with 
proposed Rule 4370--NYSE Amex Equities, which is substantially similar 
to the new FINRA Rule.\10\ As proposed, Rule 4370--NYSE Amex Equities 
adopts the same language as FINRA Rule 4370, except for substituting 
for or adding to, as needed, the term ``member organization'' for the 
term ``member'', and making corresponding technical changes that 
reflect the difference between NYSE Amex's and FINRA's membership 
structures. In addition, in paragraph (f)(2) to proposed Rule 4370--
NYSE Amex Equities, the Exchange added a cross-reference to Rule 416A--
NYSE Amex Equities to ensure that those Exchange members and member 
organizations that are not FINRA members are required to update the 
contact information for emergency personnel in accordance with NYSE 
Amex Equities Rules.
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    \10\ New York Stock Exchange LLC has submitted a companion rule 
filing amending its rules in accordance with FINRA's rule changes. 
See SR-NYSE-2010-23.
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    Finally, in order to ensure that both proposed Rule 4370--NYSE Amex 
Equities and FINRA Rule 4370 are fully harmonized, the Exchange also 
proposes to add Supplementary Material .01 to Rule 4370--NYSE Amex 
Equities to provide that, for the purposes of the rule, the term 
``associated person'' shall have the same meaning as the terms ``person 
associated with a member'' or ``associated person of a member'' as 
defined in Article I (rr) of the FINRA By-Laws.
    In addition, the Exchange respectfully requests that the effective 
date for the proposed rule changes be retroactive to December 14, 2009, 
the same effective date for FINRA's rule changes.\11\ Approval 
retroactively effective to December 14, 2009, would ensure that the 
proposed rule changes are operative and effective at the same time as 
FINRA's rule changes, that there are no regulatory gaps between the 
FINRA and NYSE Amex Equities Rules and that, as applicable, the NYSE 
Amex Equities Rules maintain their status as Common Rules under the 
17d-2 Agreement.\12\
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    \11\ See FINRA Regulatory Notice 09-60 (October 15, 2009).
    \12\ As provided in paragraph 2(b) of the 17d-2 Agreement, FINRA 
and NYSE will amend the list of Common Rules to conform to the rule 
changes proposed herein.
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2. Statutory Basis
    The Exchange believes that the proposed rule changes are consistent 
with Section 6(b) of the Act,\13\ in general, and further the 
objectives of Section 6(b)(5) of the Act,\14\ 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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    \13\ 15 U.S.C. 78f(b).
    \14\ 15 U.S.C. 78f(b)(5).
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    The Exchange believes that the proposed rule changes support the 
objectives of the Act by providing greater harmonization between NYSE 
Amex Equities Rules and FINRA Rules of similar purpose, resulting in 
less burdensome and more efficient regulatory compliance for joint 
members. To the extent the Exchange has proposed changes that differ 
from the FINRA version of the Rules, such changes are technical in 
nature and do not change the substance of the proposed NYSE Amex 
Equities Rules.

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

    Within 35 days of the date of publication of this notice in the 
Federal Register or within such longer period (i) as the Commission may 
designate up to 90 days of such date if it finds such longer period to 
be appropriate and publishes its reasons for so finding or (ii) as to 
which the self-regulatory organization consents, the Commission will:
    (A) By order approve the proposed rule change, or
    (B) Institute proceedings to determine whether the proposed rule 
change should be disapproved.

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-2010-26 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.

[[Page 14650]]

All submissions should refer to File Number SR-NYSEAMEX-2010-26. 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,\15\ 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 Section, 100 F Street, NE., Washington, DC 20549-1090. Copies 
of the filing will also be available for inspection and copying at the 
NYSE's principal office and on its Internet Web site at http://
www.nyse.com. 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-2010-26 and should be submitted on or before April 16, 2010.
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    \15\ The text of the proposed rule change is available on the 
Commission's Web site at http://www.sec.gov/.
    \16\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\16\
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-6678 Filed 3-25-10; 8:45 am]
BILLING CODE 8011-01-P