[Federal Register Volume 75, Number 150 (Thursday, August 5, 2010)]
[Notices]
[Pages 47333-47335]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-19262]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-62599; File No. SR-NYSEAmex-2010-75]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by NYSE Amex LLC To Amend Certain
of Its Rules in Connection With the Decommissioning of the Odd-Lot
System
July 29, 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 July 29, 2010, NYSE Amex LLC (the ``Exchange'' or ``NYSE
Amex'') 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 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 proposes to amend certain of its NYSE Amex Equities
Rule 500 Series to correspond with rule changes filed by the Exchange
and approved by the Commission.\3\ The text of the proposed rule change
is available at the Exchange's principal office, from the Commission's
Public Reference Room, on the Commission's Web site at http://www.sec.gov, and at http://www.nyse.com.
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\3\ See Securities Exchange Act Release No. 62578 (July 27,
2010) (order approving SR-NYSE-2010-43 and SR-NYSEAmex-2010-53).
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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 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.
[[Page 47334]]
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The purpose of the proposed rule change is to amend certain of the
NYSE Amex Equities Rule 500 Series to correspond with rule changes
filed by the Exchange and approved by the Commission.
a. Background
On July 27, 2010, the Commission approved amendments to certain
Exchange rules relating to the receipt and execution of odd-lot
interest into the round-lot market and to decommission the use of the
odd-lot system.\4\ The Exchange proposes to implement these changes on
a stock-by-stock basis beginning on July 30, 2010.
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\4\ See Securities Exchange Act Release No. 62578 (July 27,
2010). The New York Stock Exchange LLC (``NYSE'') submitted, and
received SEC approval of, a companion rule filing adopting trading-
in-shares. See id.
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As approved, the Exchange will no longer trade odd-lot sized
(generally, less than 100 shares) orders in a separate, dedicated
system, but will trade them on the Display Book system, which the
Exchange uses for round-lot sized orders. As part of these changes, the
new unit of trading on the Exchange will be one share. However, quotes
of less than one round-lot (generally, 100 shares) will not be
displayed as the Exchange quotation and odd-lot sized transactions will
not be published to the Consolidated Tape.
b. Proposed Amendments to Rules 501-, 506- and 508- NYSE Amex Equities
In conjunction with the Exchange's decommissioning of its odd-lot
system, the Exchange proposes conforming amendments to Rules 501-, 506-
and 508- NYSE Amex Equities governing the trading of Nasdaq Securities.
In Rule 501(a)--NYSE Amex Equities, the Exchange proposes to amend
the definition of the term ``Closing Price'' to mean the last
transaction in a Nasdaq Security on the Exchange reported to the
Consolidated Tape. This change is necessary because, under the current
Rule, a last transaction on the Exchange in a Nasdaq Security could be
an odd-lot sized transaction, which would not be reported to the
Consolidated Tape. The proposed change makes clear that only
transactions reported to the Consolidated Tape would be considered for
the Closing Price. In paragraph (e)(1) of Rule 501--NYSE Amex Equities,
the Exchange further proposes to add language to conform the definition
of a ``Stop Order'' for Nasdaq Securities with that for the Exchange's
listed securities in accordance with Rule 13--NYSE Amex Equities.
The Exchange proposes to amend Rule 506(a)--NYSE Amex Equities to
conform with the approved changes to Rules 55- and 56- NYSE Amex
Equities. Thus, the minimum unit of trading for Nasdaq Securities will
be one share and Nasdaq Securities will be quoted in round-lots of 100
shares, unless the UTP Listing Market determines otherwise, in which
case the provisions of Rule 64--NYSE Amex Equities shall apply.
Correspondingly, the Exchange further proposes to delete the provisions
of Rule 506(b)(1)(A)- and (B)- NYSE Amex Equities related to odd-lots
and partial round-lots, and the cross-reference to Rule 65--NYSE Amex
Equities in paragraph (b)(3)(A) of Rule 506--NYSE Amex Equities.
The Exchange further proposes to delete the provisions of Rule
508(a)(1)(A)--NYSE Amex Equities. Because odd-lot sized orders will no
longer trade on their own system, but will instead trade with all other
interest in Display Book, odd-lot sized orders in Nasdaq Securities
will not be accepted by the Exchange before trading opens and will be
rejected by Exchange systems.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\5\ in general, and furthers the
objectives of Section 6(b)(5) of the Act,\6\ 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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\5\ 15 U.S.C. 78f(b).
\6\ 15 U.S.C. 78f(b)(5).
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The Exchange believes that the proposed rule change supports the
objectives of the Act by conforming, as needed, its rules governing the
trading of Nasdaq Securities with the rules for trading its listed
securities.
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
The Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \7\ and Rule 19b-4(f)(6) thereunder.\8\
Because the 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 prior to
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, 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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\7\ 15 U.S.C. 78s(b)(3)(A)(iii).
\8\ 17 CFR 240.19b-4(f)(6).
\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 Exchange to give the Commission written notice of the
Exchange's 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 waived the five-day pre-filing requirement in this
case.
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The Exchange has requested that the Commission waive the 30-day
operative delay. The Commission believes that waiver of the operative
delay is consistent with the protection of investors and the public
interest because the proposal is substantially similar to another
proposal that was approved by the Commission.\11\ In addition, waiver
of the operative delay will allow the proposed rule changes to become
operative before the existing odd-lot system is decommissioned on July
30, 2010, and thus will ensure consistency between the rules governing
trading of Nasdaq Securities and listed securities. Therefore, the
Commission designates the proposal operative upon filing.\12\
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\11\ See Securities Exchange Act Release No. 62578 (July 27,
2010) (SR-NYSEAmex-2010-53).
\12\ 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 the 60-day period beginning on the date of
filing of the proposed rule change, the Commission summarily may
temporarily suspend
[[Page 47335]]
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 e-mail to [email protected]. Please include File
Number SR-NYSEAmex-2010-75 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-2010-75. 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-2010-75 and should be submitted on or before August 26, 2010.
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\13\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-19262 Filed 8-4-10; 8:45 am]
BILLING CODE 8010-01-P