Document ID: SEC-2009-0039-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NYSE Alternext US LLC
Posted Date: 2009-01-07T05:00Z

[Federal Register: January 7, 2009 (Volume 74, Number 4)]
[Notices]               
[Page 751-753]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr07ja09-66]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-59176; File No. SR-NYSEALTR-2008-20]

 
Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by NYSE Alternext U.S. LLC 
Extending the Implementation of the NYSE Alternext Book Clerk Program 
From January 1, 2009 Through March 31, 2009

December 30, 2008.
    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 December 29, 2008, NYSE Alternext U.S. LLC (the 
``Exchange'' or ``NYSE Alternext'') 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 
NYSE Alternext. 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 extend the implementation of the NYSE 
Alternext Book Clerk program from January 1, 2009 through March 31, 
2009.
    The text of the proposed rule change is available at http://
www.nyse.com, NYSE Alternext, and the Commission's Public Reference 
Room.

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 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Commission previously approved a proposed rule change by the 
American Stock Exchange (``Amex''), the predecessor of the Exchange 
before Amex's acquisition by NYSE Euronext, Inc. on October 1, 2008 
(the ``Acquisition''), to (1) Eliminate the obligation and ability of 
an Amex options specialist to act as an agent in connection with orders 
in his or her assigned options classes, (2) establish an Amex Book 
Clerk (now NYSE Alternext Book Clerk) program (``ABC program'') to 
designate unaffiliated persons responsible for operating and 
maintaining the customer limit order book and effecting proper 
executions, and (3) amending certain Amex rules relating to the 
operation of the ABC program.\4\
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    \4\ See Securities Exchange Act Release No. 56804 (November 16, 
2007), 72 FR 66002 (November 26, 2007) (SR-Amex-2006-107) (``ABC 
Proposal'').
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    Exchange Rule 995-ANTE originally provided that the roll-out of the 
ABC program would occur over a six-month period ending on May 1, 2008. 
On May 1, 2008, Amex filed a proposal to extend the roll-out of the ABC 
program from May 2, 2008 through December 31, 2008, and that proposal 
was designated by the Commission as operative upon filing.\5\ Due to 
integration activities subsequent to the Acquisition, the Exchange 
seeks an additional extension of the roll-out period from January 1,

[[Page 752]]

2009 through March 31, 2009. The Exchange submits that complexities 
associated with the aforementioned integration activities, including 
plans to replace the Exchange's current technology with NYSE Arca 
electronic trading technology and to move the Exchange's trading floor 
operations to a new options trading floor located at 11 Wall Street in 
February 2009, have caused a delay in the revised ABC program roll-out 
schedule. The Exchange believes that an extension of the roll-out 
period of the ABC program through March 31, 2009 will allow the 
Exchange sufficient time to resolve the integration activity that has 
delayed completion of the roll-out.
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    \5\ See Securities Exchange Act Release No. 57770 (May 2, 2008), 
73 FR 26452 (May 9, 2008) (SR-Amex-2008-37).
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    As set forth in the ABC Proposal and Amex Regulatory Circular 2008-
03 (January 23, 2008), during the roll-out period, options specialists 
who continue to operate the customer limit order book will continue to 
be subject to the same agency obligations as are currently provided 
under Exchange Rules 950-ANTE(l) and 958-ANTE(e).
2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) \6\ of the 
Securities Exchange Act of 1934 (the ``Act''), in general, and furthers 
the objectives of Section 6(b)(5) \7\ in particular in that it is 
designed to prevent fraudulent and manipulative acts and practices, to 
promote just and equitable principles of trade, to foster cooperation 
and coordination with persons engaged in 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. Additionally, the proposed 
rule change is not designed to permit unfair discrimination between 
customers, issuers, brokers and dealers.
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    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f(b)(5).
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    More specifically, the Exchange believes that extending the 
completion date for the roll-out of the ABC program will allow the 
Exchange to keep its primary focus on transitioning options trading to 
the NYSE Arca electronic trading technology. This technology update 
will provide the Exchange's options traders with a faster, more 
transparent marketplace with greater capacity, thereby contributing to 
perfecting the mechanism of a free and open market and a national 
market system, and which is also consistent with the protection of 
investors and the public interest.\8\
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    \8\ The Exchange notes that the new options trading platform 
will have functionality that is similar to the ABC program.
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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

    Because the foregoing proposed rule change: (1) Does not 
significantly affect the protection of investors or the public 
interest; (2) does not impose any significant burden on competition; 
and (3) by its terms, does not become operative for 30 days after the 
date of 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 \9\ and Rule 19b-4(f)(6) thereunder.\10\
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    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 17 CFR 240.19b-4(f)(6).
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    A proposed rule change filed under Rule 19b-4(f)(6) normally does 
not become operative for 30 days after the date of filing.\11\ However, 
Rule 19b-4(f)(6)(iii) permits the Commission to designate a shorter 
time if such action is consistent with the protection of investors and 
the public interest. NYSE Alternext requested that the Commission waive 
the 30-day operative delay, as specified in Rule 19b-4(f)(6)(iii),\12\ 
which would make the rule change effective and operative upon filing. 
The Exchange noted that this proposal merely extends the implementation 
date of the ABC program due to circumstances (i.e., the Acquisition) 
that it did not foresee at the time the previous extension was granted.
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    \11\ 17 CFR 240.19b-4(f)(6)(iii). In addition, Rule 19b-
4(f)(6)(iii) requires the self-regulatory organization to give the 
Commission 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 Exchange has satisfied this requirement.
    \12\ 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 the roll-out of the ABC 
program without interruption.\13\ In particular, prompt effectiveness 
of this extension will allow the Exchange to focus its resources on the 
integration activities resulting from the Acquisition and the upgrading 
of its options trading platforms. Therefore, the Commission designates 
the proposal operative upon filing.
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    \13\ 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. See 15 U.S.C. 
78c(f).
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    At any time within 60 days of the filing of such 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.\14\
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    \14\ 15 U.S.C. 78s(b)(3)(C).
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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-NYSEALTR-2008-20 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities 
and Exchange Commission, 100 F Street, NE., Washington, DC 20549-1090.

All submissions should refer to File Number SR-NYSEALTR-2008-20. 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

[[Page 753]]

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 such 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-NYSEALTR-2008-20 and should be submitted 
on or before January 28, 2009.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\15\
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    \15\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Acting Secretary.
 [FR Doc. E9-2 Filed 1-6-09; 8:45 am]

BILLING CODE 8011-01-P