Document ID: SEC-2009-0973-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by NYSE Arca, Inc. That Extends the Suspension of NYSE Arca's Stock Price Continued Listing Standard to July 31, 2009
Posted Date: 2009-07-16T04:00Z

[Federal Register: July 16, 2009 (Volume 74, Number 135)]
[Notices]               
[Page 34603-34604]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr16jy09-84]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-60272; File No. SR-NYSEArca-2009-64]

 
Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by NYSE Arca, Inc. That Extends 
the Suspension of NYSE Arca's Stock Price Continued Listing Standard to 
July 31, 2009

July 9, 2009.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Exchange Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby 
given that on July 2, 2009, NYSE Arca, Inc. (``NYSE Arca'' or the 
``Exchange'') filed with the Securities and Exchange Commission 
(``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, through Its wholly owned subsidiary NYSE Arca 
Equities, Inc. (``NYSE Arca Equities''), proposes to amend its rules 
governing NYSE Arca, LLC (also referred to as the ``NYSE Arca 
Marketplace'') by extending through July 31, 2009, the suspension of 
the application of its price criteria for capital and common stock set 
forth in NYSE Arca Equities Rule 5.5(b)(2).\3\ 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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    \3\ The Commission notes that the suspension period under this 
filing commenced at the time that the proposed rule change was filed 
on July 2, 2009 and will continue through July 31, 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 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
    From mid-2008 through the first quarter of 2009, the U.S. and 
global equities markets experienced extreme volatility and a 
precipitous decline in trading prices of many securities. In response 
to these conditions, the Exchange suspended through June 30, 2009, 
application of the $1.00 price requirement for capital and common stock 
set forth in NYSE Arca Equities Rule 5.5(b)(2).\4\\\ A listed company 
falls below compliance with NYSE Arca Equities Rule 5.5(b)(2) if the 
average closing price of its stock falls below $1.00 over a consecutive 
30 trading-day period (the Exchange's ``dollar price continued listing 
standard''). This suspension provided temporary relief to companies in 
response to the extreme volatility and a precipitous decline in trading 
prices of many securities experienced in the U.S. and global equities 
markets, which the Commission had acknowledged constituted a threat to 
the fair and orderly functioning of the securities markets and could 
lead to a crisis of confidence among investors regarding the viability 
of companies whose stock prices have declined significantly.\5\\\ The 
Exchange now proposes to extend its suspension of the dollar stock 
price continued listing standard through July 31, 2009.\6\
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    \4\ See Securities Exchange Act Release No. 59854 (May 1, 2009), 
74 FR 21730 (May 8, 2009) (NYSEArca-2009-29).
    \5\ See, e.g., Securities Exchange Act Release No. 58588 
(September 18, 2008), 73 FR 55174 (September 24, 2008) (``The 
Commission is aware of the continued potential of sudden and 
excessive fluctuations of securities prices and disruption in the 
functioning of the securities markets that could threaten fair and 
orderly markets. Given the importance of confidence in our financial 
markets as a whole, we have also become concerned about sudden and 
unexplained declines in the prices of securities. Such price 
declines can give rise to questions about the underlying financial 
condition of an issuer, which in turn can create a crisis of 
confidence without a fundamental underlying basis. This crisis of 
confidence can impair the liquidity and ultimate viability of an 
issuer, with potentially broad market consequences.'').
    \6\ The NYSE has filed an immediately effective rule filing 
extending its suspension of its dollar stock price continued listing 
standard through July 31, 2009 (the ``NYSE Amendment''). See SR-
NYSE-2009-64 (filed July 2, 2009).
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    Under the proposed extended suspension of the Exchange's dollar 
stock price continued listing standard, companies will not be notified 
of new events of noncompliance with that standard during the suspension 
period.\7\ Following the temporary rule suspension, any new events of 
noncompliance with the Exchange's dollar price continued listing 
standard will be determined based on a consecutive 30 trading-day 
period commencing on August 1, 2009.
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    \7\ One NYSE Arca listed company was below compliance with the 
dollar stock price continued listing standard at the time of 
commencement of the suspension. This company has since regained 
compliance.
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    The proposed extended suspension of the Exchange's dollar price 
continued listing standard will enable companies to remain listed in 
the current difficult market conditions with the prospect of a future 
recovery in their stock prices, potentially enabling them to comply 
with the applicable listing requirements upon the standard's 
reinstatement.\8\ During the period between now and July 31, 2009, the 
Exchange will consider whether it is appropriate to propose further 
revisions to these requirements.
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    \8\ A company would continue to be subject to delisting for 
failure to comply with other listing requirements.
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) \9\ of the Act, in general, and furthers the 
objectives of Section 6(b)(5) of the Act \10\\\ in particular in that 
it is designed to promote just and equitable principles of trade, to 
foster cooperation and coordination with persons engaged in regulating, 
clearing, settling, processing information with respect to, and 
facilitating transactions in securities, 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 is designed to remove uncertainty regarding 
the ability of certain companies to remain listed on NYSE Arca during 
the current highly unusual market conditions, thereby protecting 
investors, facilitating transactions in securities, and removing an 
impediment to a free and open market.
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    \9\ 15 U.S.C. 78f(b).
    \10\ 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 that is not

[[Page 34604]]

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

    Because the proposed rule change: (i) Does not significantly affect 
the protection of investors or the public interest; (ii) does not 
impose any significant burden on competition; and (iii) does not become 
operative for 30 days after the date of the filing, 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 \11\ and 
Rule 19b-4(f)(6) thereunder.\12\
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    \11\ 15 U.S.C. 78s(b)(3)(A).
    \12\ 17 CFR 240.19b-4(f)(6). Pursuant to Rule 19b-4(f)(6)(iii) 
under the Act, the Exchange is required to give the Commission 
written notice of its 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 Commission has determined to waive this requirement.
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    A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the 
Act \13\ normally does not become operative for 30 days after the date 
of its filing. However, Rule 19b-4(f)(6)(iii) \14\ permits the 
Commission to designate a shorter time if such action is consistent 
with the protection of investors and the public interest. The Exchange 
has requested that the Commission waive the 30-day operative delay.
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    \13\ 17 CFR 240.19b-4(f)(6).
    \14\ 17 CFR 240.19b-4(f)(6)(iii).
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    The Commission believes that waiving the 30-day operative delay is 
consistent with the protection of investors and the public interest 
because it will allow the Exchange to extend, through July 31, 2009, 
the temporary suspension of its $1.00 price continued listing 
requirement for capital and common stock. The Commission notes that the 
extension of the temporary suspension will continue to provide certain 
companies with temporary relief from receiving a non-compliance or 
delisting notification, or from being delisted, and will provide some 
additional time to allow companies to regain compliance after the 
market volatility and conditions experienced earlier this year and last 
fall. The Commission notes that this action is temporary in nature. 
Further, companies will continue to be subject to delisting for failure 
to comply with other listing requirements during the suspension period. 
For these reasons, the Commission designates that the proposed rule 
change become operative immediately upon filing.\15\
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    \15\ For purposes only of waiving the 30-day operative delay, 
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 the 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 Exchange 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-2009-64 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-2009-64. 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, 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-2009-64 and should be submitted on or before 
August 6, 2009.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\16\
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    \16\ 17 CFR 200.30-3(a)(12).
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Elizabeth M. Murphy,
Secretary.
[FR Doc. E9-16808 Filed 7-15-09; 8:45 am]

BILLING CODE 8010-01-P