Document ID: SEC-2010-1395-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NYSE Amex LLC
Posted Date: 2010-09-13T04:00Z

[Federal Register: September 13, 2010 (Volume 75, Number 176)]
[Notices]               
[Page 55622-55623]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr13se10-92]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-62851; File No. SR-NYSEAmex-2010-87]

 
Self-Regulatory Organizations; NYSE Amex LLC; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change Adopting Commentary 
.06 to Rule 935NY Related to the Exposure of Reserve Orders

September 3, 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 August 27, 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 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 adopt Commentary .06 to Rule 935NY related 
to the exposure of Reserve Orders. 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 the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The purpose of the proposal is to adopt a Commentary to NYSE Amex 
Rule 935NY to specify that the exposure

[[Page 55623]]

requirement contained in subsection (i) of the Rule is satisfied with 
respect to the non-displayed reserve portion of a Reserve Order if the 
displayable portion is displayed at its displayable price for one 
second. A Reserve Order is an order where only a portion of the full 
size is included in the Exchange's disseminated quotation.\4\ The 
displayed size is executed according to the Exchange's regular priority 
rules, and is refreshed with additional volume from the non-displayed 
portion of the order. The non-displayed portion of the Reserve Order is 
available for execution only after the Exchange's displayed quote is 
fully exhausted.
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    \4\ NYSE Amex Rule 900.3NY(d)(3).
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    Under the proposed interpretation, after entering a Reserve Order, 
an ATP Holder may enter a contra-side order for its own account or a 
contra-side order that was solicited from another broker-dealer that 
would execute against the displayable and non-displayed portions of the 
order so long as the displayable portion of the order was displayed on 
NYSE Amex (i.e., the price of the order is at the NYSE Amex Best Bid/
Offer) for at least one second. This proposed Commentary is the same as 
an existing Commentary to the rule of the Nasdaq Options Market that 
contains the same exposure requirements as NYSE Amex Rule 935NY.\5\ 
Accordingly, the Commission has previously determined that display of 
the displayable portion of a reserve order is sufficient to satisfy the 
exposure requirements of NYSE Amex Rule 935NY(i).
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    \5\ Nasdaq Rules, Chapter VII, Sec.12 (Order Exposure 
Requirements), Commentary .03.
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2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with 
Section 6(b) of the Act \6\ in general, and furthers the objectives of 
Section 6(b)(5) of the Act, in that it is designed to promote just and 
equitable principles of trade, remove impediments to and perfect the 
mechanisms of a free and open market and a national market system and, 
in general, to protect investors and the public interest. In 
particular, the proposal is the same as an existing rule of another 
exchange,\7\ and will provide ATP Holders with certainty with respect 
to the applicable exposure requirements for reserve orders.
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    \6\ 15 U.S.C. 78f (b).
    \7\ Supra, Note 2 [sic].
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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 \8\ and Rule 19b-4(f)(6) thereunder.\9\ 
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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    \8\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \9\ 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 this requirement.
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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-2010-87 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-2010-87. 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 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-2010-87 and should 
be submitted on or before October 4, 2010.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-22742 Filed 9-10-10; 8:45 am]
BILLING CODE 8010-01-P