Document ID: SEC-2010-1014-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NYSE Amex LLC
Posted Date: 2010-07-08T04:00Z

[Federal Register: July 8, 2010 (Volume 75, Number 130)]
[Notices]               
[Page 39305-39306]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr08jy10-134]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-62405; File No. SR-NYSEAmex-2010-59]

 
Self-Regulatory Organizations; NYSE Amex LLC; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change, as Modified by 
Amendment No. 1, Relating to Market Maker Authorized Traders

June 30, 2010.
    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 June 14, 2010, 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, II, 
and III below, which Items have been prepared by the Exchange. On June 
29, 2010, the Exchange filed Amendment No. 1 to the proposed rule 
change.\3\ The Commission is publishing this notice to solicit comments 
on the proposed rule change, as amended, from interested persons.
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    \1\ 15 U.S.C.78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Amendment No. 1 clarified the proposal by making an 
additional revision to the current text of Rule 921.1NY(a).
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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 921.1NY-Market Maker Authorized 
Traders. The text of the proposed rule change is available on NYSE 
Amex's Web site at http://www.nyse.com, on the Commission's Web site at 
http://www.sec.gov, at the principal office of NYSE Amex, 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 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    Presently, Market Maker Authorized Traders (``MMAT'') may submit 
electronic quotes and orders on behalf of an ATP Holder registered as a 
Remote Market Maker. The purpose of the proposed rule change is to 
amend Rule 921.1NY in order to allow MMATs to submit electronic quotes 
and orders on behalf of any type of Market Maker. Rules changes 
proposed in this filing are consistent with rules governing MMATs on 
NYSE Arca, Inc.
    An MMAT is either a Market Maker, or an officer, partner, employee 
or associated person of an ATP Holder. MMATs act in a trading capacity 
by submitting electronic quotes and orders on behalf of the account of 
a Remote Market Maker. Remote Market Makers make transactions from a 
location off the trading floor.
    A Market Maker on NYSE Amex can either be a Remote Market Maker, a 
Floor Market Maker, a Specialist or an e-Specialist. Unless otherwise 
specified, the term Market Maker refers to Remote Market Makers, Floor 
Market Makers, Specialists and e-Specialists.\4\
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    \4\ See NYSE Amex Rule 920NY(a).
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    Market Makers are permitted to trade all issues listed on the 
Exchange, and are not limited to the number of issues they may include 
in their Appointment. Utilizing an electronic execution and quoting 
system, Market Makers are able to make markets and trade in hundreds, 
or sometimes thousands of securities simultaneously. Market maker 
proprietary systems may allow for the trading of a large number issues, 
however market making still requires a certain level of human 
interaction in order to effectively monitor trading, manage open 
positions and enter quotes and orders, and while certain support 
personnel may monitor trading and or manage positions, only a Market 
Maker or MMAT is permitted to electronically submit quotes and/or 
orders to NYSE Amex.
    As previously stated, MMATs submit electronic quotes and orders on 
behalf of Remote Market Makers, but it is not only Remote Market Makers 
that are required to quote electronically; all Market Makers, 
regardless of their registration status, must meet certain minimum 
quoting obligations for all issues within their Appointment.\5\ The 
Exchange believes that by restricting the use of MMATs to just Remote 
Market Makers, other Market Makers may be limited in the number of 
securities that they can effectively trade. The Exchange now proposes 
to allow all types of registered Market Makers on NYSE Amex to utilize 
registered MMATs to submit electronic quotes and orders on their 
behalf.
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    \5\ See NYSE Amex Rule 925.1NY.
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    As is the case now, an MMAT will only be permitted to enter 
electronic quotes and orders on behalf of the Market Maker with which 
he is associated.\6\ MMATs that are associated with Floor Market Makers 
and Specialists will not be permitted to execute trades in open outcry 
on the floor of the Exchange. They will however be able to submit 
electronic quotes and orders in issues included as part of a Floor 
Market Maker's Appointment.
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    \6\ See NYSE Amex Rule 921.1(a).
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    In addition to the changes proposed to Rule 921.1NY, the Exchange 
proposes to amend the definition of Market Maker Authorized Trader 
contained in Rule 900.1NY(37).
    These rule changes do not in any way revise or amend any other 
Exchange

[[Page 39306]]

rule, including those rules pertaining to qualifications, obligations 
and rights of Market Makers.
    As previously stated, this proposed rule change is consistent with 
rules governing MMATs on NYSE Arca, Inc. Other rules related to MMATs 
on NYSE Amex and NYSE Arca are substantially similar. This rule change 
which authorizes MMATs to submit electronic quotes and orders on behalf 
of all types of Market Makers will further harmonize the rules of the 
two exchanges.
2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with 
Section 6(b) \7\ of the Securities Exchange Act of 1934 (the ``Act''), 
in general, and furthers the objectives of Section 6(b)(5) \8\ in 
particular, in that it is 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.
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    \7\ 15 U.S.C. 78f(b).
    \8\ 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 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: (i) Does not 
significantly affect the protection of investors or the public 
interest; (ii) does not impose any significant burden on competition; 
and (iii) by its terms, does not 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 \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). 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 satisfied this requirement.
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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-2010-59 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-2010-59. 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 Web site 
viewing and printing 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-
NYSEAmex-2010-59 and should be submitted on or before July 29, 2010.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-16536 Filed 7-7-10; 8:45 am]
BILLING CODE 8010-01-P