[Federal Register Volume 75, Number 187 (Tuesday, September 28, 2010)]
[Notices]
[Pages 59772-59773]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-24261]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-62971; File No. SR-NYSEAmex-2010-95]
Self-Regulatory Organizations; NYSE Amex LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Clarify the
Requirement for Floor Official Approval for Certain Halts of Nasdaq
Securities Traded via UTP
September 22, 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 September 16, 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.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend Rule 515--NYSE Amex Equities. The
text of the proposed rule change is available at the Exchange's
principal office, the Commission's Public Reference Room, the
Commission's Web site (http://www.sec.gov), and http://www.nyse.com.
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
The purpose of the proposed rule change is to amend Rule 515--NYSE
Amex Equities.
a. Background
On July 9, 2010, the Exchange received approval from the Commission
to begin trading, as a pilot program, securities listed on the Nasdaq
Stock Market pursuant to unlisted trading privileges (``Nasdaq
Securities''). The Nasdaq Securities program commenced on July 13,
2010.\3\
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release No. 62479 (July 9,
2010), 75 FR 41264 (July 15, 2010) (order approving SR-NYSEAmex-
2010-31 and the adoption of the NYSE Amex Equities Rule 500 Series).
The pilot program is scheduled to run until September 30, 2010, the
expiration date of the New York Stock Exchange LLC's (``NYSE'') and
the Exchange's New Market Model (``NMM'') pilot program, on which
the Nasdaq Securities program relies. See Securities Exchange Act
Release Nos. 61274 (March 17, 2010), 75 FR 14221 (March 24,
2010)(SR-NYSE-2010-25) and 61275 (March 17, 2010), 75 FR 14223
(March 24, 2010)(SR-NYSEAmex-2010-28) (extending operation of the
NMM pilot program on NYSE and NYSE Amex until the earlier of the
Commission's approval to make the program permanent or September 30,
2010). For more information on the NMM pilot program, see Securities
Exchange Act Release No.58845 (October 24, 2008), 73 FR 64379
(October 29, 2008)(SR-NYSE-2008-46).
---------------------------------------------------------------------------
b. Proposed Amendments to Rule 515--NYSE Amex Equities
The Exchange proposes to amend Rule 515--NYSE Amex Equities dealing
with trading halts. In its filing adopting the Nasdaq Securities
program, the Exchange included a provision in Rule 515(a)(1)--NYSE Amex
Equities that DMM Units did not need to obtain Floor Official approval
in order to halt trading in a Nasdaq Security pursuant to Rule 123D--
NYSE Amex Equities. Upon further review of the operation of this
provision and the Nasdaq Securities program, the Exchange believes it
should revise this provision to clarify that the DMM does not need to
obtain Floor Official approval if a Nasdaq Security is halted,
suspended, or paused pursuant to section (a)(2)-(4) of the Rule.
Accordingly, if a Nasdaq Security is halted, suspended or paused from
trading by the UTP Listing Market for regulatory purposes in accordance
with its rules and/or the UTP Plan, or if the authority to trade the
Nasdaq Security on the Exchange is revoked, Floor Official approval to
halt trading on the Exchange is not required. However, if the Exchange
halts trading of a Nasdaq Security pursuant to Rule 123D--NYSE Amex
Equities for non-regulatory purposes, such as an imbalance halt or an
equipment changeover halt, the DMM must obtain prior Floor Official
approval as provided for in that rule. The proposed provision would be
consistent with the manner by which Rule 123D--NYSE Amex Equities
operates for listed securities when a non-regulatory halt is invoked on
the Exchange.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\4\ in general, and furthers the
objectives of Section 6(b)(5) of the Act,\5\ 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.
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78f(b).
\5\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
The Exchange believes that the proposed rule change supports the
objectives of the Act by harmonizing the procedures for implementing
non-regulatory trading halts under Rule 123D--NYSE Amex Equities for
both its listed securities and Nasdaq 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 \6\ and Rule 19b-4(f)(6) thereunder.\7\
Because the
[[Page 59773]]
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 and Rule 19b-4(f)(6)(iii) thereunder.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78s(b)(3)(A)(iii).
\7\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give 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.
---------------------------------------------------------------------------
The Exchange has requested that the Commission waive the 30-day
operative delay so that the proposal may become operative immediately
upon filing. The Commission believes that waiving the 30-day operative
delay is consistent with the protection of investors and the public
interest, because such waiver will promote consistency between the
rules governing the trading of Nasdaq Securities and listed securities
on the Exchange. Accordingly, the Commission waives the 30-day
operative delay requirement and designates the proposed rule change as
operative upon filing with the Commission.
At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend 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 [email protected]. Please include
File Number SR-NYSEAmex-2010-95 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-2010-95. 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, on
official business days between the hours of 10 a.m. and 3 p.m. Copies
of the 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-2010-95 and should be submitted on or before
October 19, 2010.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\8\
---------------------------------------------------------------------------
\8\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-24261 Filed 9-27-10; 8:45 am]
BILLING CODE 8010-01-P