Document ID: SEC-2009-1169-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NYSE Amex LLC
Posted Date: 2009-08-18T04:00Z

[Federal Register: August 18, 2009 (Volume 74, Number 158)]
[Notices]
[Page 41778-41780]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr18au09-91]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-60458; File No. SR-NYSEAMEX-2009-52]

Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by NYSE Amex LLC Deleting Rule
409A--NYSE Amex Equities and Adopting New Rule 2266--NYSE Amex Equities
To Conform to Proposed Rule Changes Submitted in a Companion Filing by
the New York Stock Exchange LLC

August 7, 2009.
    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 July 28, 2009, 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, formerly the American Stock Exchange LLC and NYSE
Alternext US LLC,\4\ proposes to delete Rule 409A--NYSE Amex Equities
and to adopt new Rule 2266--NYSE Amex Equities to conform to proposed
rule changes submitted in a companion filing by the New York Stock
Exchange LLC (``NYSE'').\5\ 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\ The Exchange changed its name to NYSE Amex in March 2009.
See Securities Exchange Act Release No. 59575 (March 13, 2009), 74
FR 11803 (March 19, 2009) (SR-NYSEALTR-2009-24).
    \5\ See SR-NYSE-2009-76, formally submitted on July 28, 2009.
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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.

[[Page 41779]]

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 delete Rule 409A--
NYSE Amex Equities and to adopt new Rule 2266--NYSE Amex Equities to
conform to proposed rule changes submitted in a companion filing by the
NYSE.
Background
    As described more fully in a related rule filing,\6\ NYSE Euronext
acquired The Amex Membership Corporation (``AMC'') pursuant to an
Agreement and Plan of Merger, dated January 17, 2008 (the ``Merger'').
In connection with the Merger, the Exchange's predecessor, the American
Stock Exchange LLC, a subsidiary of AMC, became a subsidiary of NYSE
Euronext called NYSE Alternext US LLC, and continues to operate as a
national securities exchange registered under Section 6 of the Act.\7\
The effective date of the Merger was October 1, 2008.
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    \6\ See Securities Exchange Act Release No. 58673 (September 29,
2008), 73 FR 57707 (October 3, 2008) (SR-NYSE-2008-60 and SR-Amex
2008-62) (approving the Merger).
    \7\ 15 U.S.C. 78f.
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    In connection with the Merger, on December 1, 2008, the Exchange
relocated all equities trading conducted on the Exchange legacy trading
systems and facilities located at 86 Trinity Place, New York, New York,
to trading systems and facilities located at 11 Wall Street, New York,
New York (the ``Equities Relocation''). The Exchange's equity trading
systems and facilities at 11 Wall Street (the ``NYSE Amex Trading
Systems'') are operated by the NYSE on behalf of the Exchange.\8\
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    \8\ See Securities Exchange Act Release No. 58705 (October 1,
2008), 73 FR 58995 (October 8, 2008) (SR-Amex 2008-63) (approving
the Equities Relocation).
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    As part of the Equities Relocation, NYSE Amex adopted NYSE Rules 1-
1004, subject to such changes as necessary to apply the Rules to the
Exchange, as the NYSE Amex Equities Rules to govern trading on the NYSE
Amex Trading Systems.\9\ The NYSE Amex Equities Rules, which became
operative on December 1, 2008, are substantially identical to the
current NYSE Rules 1-1004 and the Exchange continues to update the NYSE
Amex Equities Rules as necessary to conform with rule changes to
corresponding NYSE Rules filed by the NYSE.
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    \9\ See Securities Exchange Act Release Nos. 58705 (October 1,
2008), 73 FR 58995 (October 8, 2008) (SR-Amex 2008-63); 58833
(October 22, 2008), 73 FR 64642 (October 30, 2008) (SR-NYSE-2008-
106); 58839 (October 23, 2008), 73 FR 64645 (October 30, 2008) (SR-
NYSEALTR-2008-03); 59022 (November 26, 2008), 73 FR 73683 (December
3, 2008) (SR-NYSEALTR-2008-10); and 59027 (November 28, 2008), 73 FR
73681 (December 3, 2008) (SR-NYSEALTR-2008-11).
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Proposed Conforming Amendments to NYSE Amex Equities Rules
    As noted above, the Exchange proposes to delete Rule 409A--NYSE
Amex Equities and to adopt new Rule 2266--NYSE Amex Equities to conform
to proposed rule changes submitted in a companion filing by the NYSE.
As discussed in more detail below, the NYSE is filing the proposed rule
changes to harmonize these NYSE Rules with changes to corresponding
Incorporated NYSE Rules filed by the Financial Industry Regulatory
Authority, Inc. (``FINRA'') and approved by the Commission.\10\ Unless
specifically noted, the Exchange is proposing to adopt the NYSE's
proposed rule changes in the form that they have been approved for
filing by the Commission, subject to such technical changes as are
necessary to apply the changes to the Exchange. The Exchange further
proposes that the operative date of these rule changes be the same as
the operative date of the NYSE's proposed rule changes on which this
filing is based.
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    \10\ See Securities Exchange Act Release No. 59987 (May 27,
2009), 74 FR 26902 (June 4, 2009) (order approving FINRA 2009-016).
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    In relevant part, FINRA adopted NASD Rule 2342 (SIPC Information)
as consolidated FINRA Rule 2266 and, because it is substantively
similar to this new rule, deleted FINRA Incorporated NYSE Rule 409A
(SIPC Disclosures).\11\ FINRA Rule 2266 requires all FINRA members,
except for those members that are not Securities Investor Protection
Corporation (``SIPC'') members or whose business consists exclusively
of the sale of investments that are not subject to SIPC protection, to
advise all new customers in writing at the time they open an account
that they may obtain information about SIPC by contacting SIPC and to
provide such customers with SIPC's contact information.\12\ Such
information must also be provided annually to all existing customers.
Where both an introducing firm and a clearing firm service the same
account, the firms may assign these requirements to one or the other
firm.\13\
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    \11\ In its filing, FINRA also adopted NASD Rules 2130
(Obtaining an Order of Expungement of Customer Dispute Information
from the Central Registration Depository (CRD System)), 2810 (Direct
Participation Programs) and 3115 (Requirements for Alternative
Trading Systems to Record and Transmit Order and Execution
Information for Security Futures) as consolidated FINRA Rules 2080,
2310 and 4551, respectively. See Securities Exchange Act Release No.
59987 (May 27, 2009), 74 FR 26902 (June 4, 2009). Neither the
Exchange nor NYSE is adopting these FINRA Rules.
    \12\ FINRA Incorporated NYSE Rule 409A did not contain these
exclusions. See Securities Exchange Act Release No. 59987 (May 27,
2009), 74 FR 26902 (June 4, 2009).
    \13\ See Securities Exchange Act Release No. 59987 (May 27,
2009), 74 FR 26902 (June 4, 2009).
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    NYSE correspondingly proposes to delete NYSE Rule 409A and to adopt
new Rule 2266 to conform to FINRA's approved amendments to its Rules.
As proposed, NYSE Rule 2266 adopts the same language as FINRA Rule
2266, except for substituting for or adding to, as needed, the term
``member organization'' for the term ``member'', and making
corresponding technical changes. As with the consolidated FINRA Rule,
under proposed NYSE Rule 2266 Exchange members and member organizations
will be required to provide SIPC disclosures to all new customers upon
opening an account and to existing customers on an annual basis.
    The Exchange proposes to correspondingly delete Rule 409A--NYSE
Amex Equities and to adopt new Rule 2266--NYSE Amex Equities in the
form proposed by the NYSE, subject to adding ``-NYSE Amex Equities'' to
the title of the Rule.
2. Statutory Basis
    The Exchange believes that the proposed rule changes are consistent
with Section 6(b) of the Act,\14\ in general, and further the
objectives of Section 6(b)(5) of the Act,\15\ 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. The proposed rule changes also support the principles
of Section 11A(a)(1) \16\ of the Act in that they seek to ensure the
economically efficient execution of securities transactions and fair
competition among brokers and dealers and among exchange markets.
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    \14\ 15 U.S.C. 78f(b).
    \15\ 15 U.S.C. 78f(b)(5).
    \16\ 15 U.S.C. 78k-1(a)(1).
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    The Exchange believes that the proposed rule changes support the
objectives of the Act by providing greater harmonization among NYSE
Rules, NYSE Amex Equities Rules and

[[Page 41780]]

FINRA Rules of similar purpose, resulting in less burdensome and more
efficient regulatory compliance for their common members and member
organizations. To the extent the Exchange has proposed changes that
differ from the NYSE version of these 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

    The Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \17\ and Rule 19b-4(f)(6) thereunder.\18\
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.\19\
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    \17\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \18\ 17 CFR 240.19b-4(f)(6).
    \19\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give the Commission
written notice of its intent to file 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 requirement.
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    A proposed rule change filed under Rule 19b-4(f)(6) \20\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\21\ 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
waiving the 30-day operative delay is consistent with the protection of
investors and the public interest. Acceleration of the operative date
will allow the immediate change of the NYSE Amex's rule to make it
consistent with the FINRA rule, thereby making compliance for dual
members less burdensome. For these reasons, the Commission designates
the proposal to be effective and operative upon filing.\22\
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    \20\ 17 CFR 240.19b-4(f)(6).
    \21\ 17 CFR 240.19b-4(f)(6)(iii).
    \22\ For purposes only of waiving the 30-day operative delay of
the proposal, the Commission has considered the proposed rule's
impact on efficiency, competition and capital formation. 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 SR-NYSEAMEX-2009-52 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-2009-52. 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 also will be available for
inspection and copying at the principal office of NYSE.
    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-2009-
52 and should be submitted on or before September 8, 2009.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\23\
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    \23\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-19731 Filed 8-17-09; 8:45 am]

BILLING CODE 8010-01-P