Document ID: SEC-2009-1409-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NYSE AMEX LLC
Posted Date: 2009-10-06T04:00Z

[Federal Register: October 6, 2009 (Volume 74, Number 192)]
[Notices]               
[Page 51351-51352]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr06oc09-115]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-60744; File No. SR-NYSEAmex-2009-62]

 
Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by NYSE Amex LLC Amending Rule 
900.3NY

September 29, 2009.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(the ``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given 
that on September 14, 2009, NYSE Amex LLC (``NYSE Amex'' or the 
``Exchange'') 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 Exchange. The Exchange 
filed the proposed rule change pursuant to Section 19(b)(3)(A) of the 
Act \3\ and Rule 19b-4(f)(6) thereunder,\4\ which renders it effective 
upon filing with the Commission. 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.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend Rule 900.3NY to (i) offer PNP Blind 
orders to its Participants and (ii) make technical corrections to the 
numbering of Rule 900.3NY. The text of the proposed rule change is 
attached as Exhibit 5 to the 19b-4 form. A copy of this filing is 
available on the Exchange's Web site at http://www.nyse.com, at the 
Exchange's principal office and at 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 the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    NYSE Amex has an existing order type known as PNP (Post No 
Preference) \5\ which is a limit order that is only to be executed on 
the Exchange, and may be ranked in the Consolidated Book if not 
marketable, but is never to be routed. A PNP order that is marketable 
against the NBBO when entered is cancelled back to the entering ATP 
Holder.
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    \5\ See NYSE Amex Rule 900.3NY(p).
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    Certain ATP Holders have asked for a similar order type that will 
also not route if marketable against the NBBO, but, unlike a PNP order, 
will not be cancelled if similarly marketable.
    A PNP Blind order is a limit order that is to be executed on the 
Exchange, but never routed to another market. The

[[Page 51352]]

unexecuted portion of a PNP Blind order is to be ranked in the 
Consolidated Book. Unlike a conventional PNP order, a PNP Blind Order 
that is marketable against the NBBO will not be cancelled; however, the 
price and size will not be disseminated to OPRA. If the NBBO moves so 
that the PNP Blind Order no longer locks or crosses the NBBO, the 
order's price and size will be disseminated. When a PNP Blind order is 
not displayed, it provides price improvement to any incoming contra-
side order. A PNP Blind order will be executed at its limit price, if 
displayed, or at a price that matches the contra side of the NBBO, if 
undisplayed.
    The Exchange believes that the implementation of the aforementioned 
rule change modifying NYSE Amex order entry options will preserve order 
execution opportunities on the NYSE Amex market, provide greater 
control over the circumstances of executions, and provide an 
opportunity for enhanced executions.
    The Exchange is also making technical corrections to the numbering 
of the subparagraphs in Rule 900.3NY.
2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with 
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, by providing investors with additional order types 
that allow greater flexibility in maintaining compliance with the 
rules, or providing an opportunity for enhanced executions, or managing 
the circumstances in which their orders are executed.

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 does not:
    (i) Significantly affect the protection of investors or the public 
interest;
    (ii) Impose any significant burden on competition; and
    (iii) Become operative for 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, it 
has become effective pursuant to Section 19(b)(3)(A) of the Act \6\ and 
Rule 19b-4(f)(6) thereunder.\7\
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    \6\ 15 U.S.C. 78s(b)(3)(A).
    \7\ 17 CFR 240.19b 4(f)(6). In addition, Rule 19b 4(f)(6)(iii) 
requires the self-regulatory organization to submit to 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 Exchange has provided such a notice.
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    The Exchange has asked the Commission to waive the 30-day operative 
delay. The Commission hereby grants the Exchange's request.\8\ The 
proposed rule is identical to that in use by NYSE Arca, Inc. (``NYSE 
Arca'') \9\ and does not raise any novel or significant issues. 
Therefore, the Commission believes that waiving the 30-day period to 
allow the proposed rule change to become operative upon filing is 
consistent with the protection of investors and the public interest and 
designates the proposal as operative upon filing.
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    \8\ 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).
    \9\ See NYSE Arca Rule 6.62(u); see also Securities Exchange Act 
Release No. 59603 (March 19, 2009), 74 FR 13279 (March 26, 2009) 
(amending Rule 6.62 to provide additional order types).
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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-2009-62 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-2009-62. 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 Section, 100 F Street, 
NE., Washington, DC 20549-1090 on official business days between the 
hours of 10 a.m. and 3 p.m. Copies of the filing will also be available 
for inspection and copying at the NYSE Amex'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-2009-62 and should be submitted 
on or before October 27, 2009.

    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. E9-23994 Filed 10-5-09; 8:45 am]

BILLING CODE 8011-01-P