Document ID: SEC-2009-1513-0001
Agency: sec
Document Type: Notice
Title: Joint Industry Plan: Order Approving Joint Amendment No. 1 to the Options Order Protection and Locked/Crossed Market Plan
Posted Date: 2009-10-26T04:00Z

[Federal Register: October 26, 2009 (Volume 74, Number 205)]
[Notices]               
[Page 55077-55078]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr26oc09-129]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-60841; File No. 4-546]

 
Joint Industry Plan; Order Approving Joint Amendment No. 1 to the 
Options Order Protection and Locked/Crossed Market Plan

October 20, 2009.

I. Introduction

    On August 7, 2009, August 7, 2009, August 7, 2009, August 7, 2009, 
August 11, 2009, August 11, 2009, and August 11, 2009, NYSE Arca, Inc. 
(``NYSE Arca''), NYSE Amex, LLC (``NYSE Amex''), International 
Securities Exchange, LLC (``ISE''), NASDAQ OMX BX, Inc. (``BOX''), 
Chicago Board Options Exchange, Incorporated

[[Page 55078]]

(``CBOE''), NASDAQ OMX PHLX, Inc. (``Phlx''), and The NASDAQ Stock 
Market LLC (``Nasdaq'') (collectively, ``Participants''), respectively, 
filed with Securities and Exchange Commission (``Commission'') pursuant 
to Section 11A of the Securities Exchange Act of 1934 (``Act'') \1\ and 
Rule 608 thereunder \2\ an amendment (``Joint Amendment No. 1'') to the 
Options Order Protection and Locked/Crossed Market Plan (``Plan'').\3\ 
In Joint Amendment No. 1, the Participants proposed to modify Section 
5(b) of the Plan to eliminate the requirement that policies and 
procedures be submitted to the Commission for approval. On August 14, 
2009, the Commission summarily put into effect Joint Amendment No. 1 on 
a temporary basis not to exceed 120 days and solicited comment on Joint 
Amendment No. 1 from interested persons.\4\ The Commission received no 
comments on Joint Amendment No. 1. This order approves Joint Amendment 
No. 1.
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    \1\ 15 U.S.C. 78k-1.
    \2\ 17 CFR 242.608.
    \3\ On July 30, 2009, the Commission approved a national market 
system plan relating to Options Order Protection and Locked/Crossed 
Markets proposed by CBOE, ISE, Nasdaq, BOX, Phlx, NYSE Amex, and 
NYSE Arca. See Securities Exchange Act Release No. 60405 (July 30, 
2009), 74 FR 39362 (August 6, 2009).
    \4\ See Securities Exchange Act Release No. 60507 (August 14, 
2009), 74 FR 42709 (August 24, 2009) (File No. 4-546).
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II. Description of Proposed Amendment

    In Joint Amendment No. 1, the Participants proposed to clarify 
that, while each Participant is required under the Plan to establish, 
maintain and enforce written policies and procedures that are 
reasonably designed to prevent Trade-Throughs, there would not be a 
requirement that these policies and procedures be submitted to the 
Commission for approval. The Plan requires, and each Participant has 
represented, that its policies and procedures will be reasonably 
designed to prevent Trade-Throughs in the Exchange's market in Eligible 
Options Classes, unless they fall within an exception set forth in 
Section 5(b) of the Plan. If relying on such exception, the policies 
and procedures will be reasonably designed to assure compliance with 
the terms of the exception.

III. Discussion and Commission Findings

    The Commission previously determined, pursuant to Rule 608 under 
the Act,\5\ to put into effect summarily on a temporary basis not to 
exceed 120 days, the change to the Plan detailed above in Joint 
Amendment No. 1.\6\ After careful consideration of Joint Amendment No. 
1, the Commission finds that approving Joint Amendment No. 1 is 
consistent with the requirements of the Act and the rules and 
regulations thereunder.\7\ Specifically, the Commission finds that 
Joint Amendment No. 1 is consistent with Section 11A of the Act \8\ and 
Rule 608 of Regulation NMS thereunder \9\ in that it is in the public 
interest, for the protection of investors, and the maintenance of fair 
and orderly markets.
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    \5\ 17 CFR 242.608.
    \6\ See supra note 4.
    \7\ In approving this Joint Amendment No. 1, the Commission has 
considered its impact on efficiency, competition, and capital 
formation. 15 U.S.C. 78c(f).
    \8\ 15 U.S.C. 78k-1.
    \9\ 17 CFR 242.608.
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    In so finding, the Commission notes that the Commission generally 
does not approve, pursuant to Section 19(b), surveillance policies and 
procedures of national securities exchanges, though they may be 
reviewed by Commission staff, for example, pursuant to inspections and 
examinations.

IV. Conclusion

    It is therefore ordered, pursuant to Section 11A of the Act \10\ 
and Rule 608 thereunder,\11\ that Joint Amendment No. 1 is approved.
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    \10\ 15 U.S.C. 78k 1.
    \11\ 17 CFR 242.608.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12\
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    \12\ 17 CFR 200.30-3(a)(29).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-25709 Filed 10-23-09; 8:45 am]

BILLING CODE 8011-01-P