Self-Regulatory Organizations; New York Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Interpretation of Exchange Rules, 32391-32392 [E5-2809]

Download as PDF Federal Register / Vol. 70, No. 105 / Thursday, June 2, 2005 / Notices publishes its reasons for so finding or (ii) as to which the self-regulatory organization consents, the Commission will: A. By order approve such proposed rule change, as amended, or B. Institute proceedings to determine whether the proposed rule change, as amended, should be disapproved. should be submitted on or before June 23, 2005. BILLING CODE 8010–01–P the proposed rule change and discussed any comments it received on the proposed rule change. The text of these 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 aspects of such statements. SECURITIES AND EXCHANGE COMMISSION A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change For the Commission, by the Division of Market Regulation, pursuant to delegated authority.18 Margaret H. McFarland, Deputy Secretary. [FR Doc. E5–2810 Filed 6–1–05; 8:45 am] IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change, as amended, is consistent with the Act. Comments may be submitted by any of the following methods: Electronic Comments • Use the Commission’s Internet comment form (https://www.sec.gov/ rules/sro.shtml); or • Send an e-mail to rulecomments@sec.gov. Please include File Number SR–NASD–2005–030 on the subject line. [Release No. 34–51744; File No. SR–NYSE– 2005–31] Self-Regulatory Organizations; New York Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Interpretation of Exchange Rules May 25, 2005. 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 April 29, 2005 the New York Stock Exchange, Inc. Paper Comments (‘‘NYSE’’ or the ‘‘Exchange’’) filed with the Securities and Exchange Send paper comments in triplicate to Commission (the ‘‘Commission’’) the Jonathan G. Katz, Secretary, Securities proposed rule change as described in and Exchange Commission, 450 Fifth Items I, II and III below, which Items Street, NW., Washington, DC 20549– have been prepared by the Exchange. 0609. The Commission is publishing this All submissions should refer to File notice to solicit comments on the Number SR–NASD–2005–030. This file proposed rule change from interested number should be included on the subject line if e-mail is used. To help the persons. Commission process and review your I. Self-Regulatory Organization’s comments more efficiently, please use Statement of the Terms of Substance of only one method. The Commission will the Proposed Rule Change post all comments on the Commission’s The proposed rule change is an Internet Web site (https://www.sec.gov/ Information Memo providing certain rules/sro.shtml). Copies of the interpretations of Exchange rules submission, all subsequent concerning the application of those amendments, all written statements rules in connection with the Pilot with respect to the proposed rule Program established by the Commission change that are filed with the under Rule 202T 3 of Regulation SHO Commission, and all written (the ‘‘Pilot’’).4 The text of the proposed communications relating to the rule change is available on the proposed rule change between the Commission and any person, other than Exchange’s Internet Web site (https:// www.nyse.com), at the Exchange’s those that may be withheld from the Office of the Secretary, and at the places public in accordance with the specified in Item IV below. provisions of 5 U.S.C. 552, will be available for inspection and copying in the Commission’s Public Reference Room. Copies of the filing also will be available for inspection and copying at the principal office of the NASD. 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–NASD–2005–030 and VerDate jul<14>2003 16:54 Jun 01, 2005 Jkt 205001 32391 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 Exchange included statements concerning the purpose of and basis for PO 00000 18 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 17 CFR 242.202T. 4 17 CFR 242.200 through 203. 1 15 Frm 00103 Fmt 4703 Sfmt 4703 1. Purpose The Exchange is issuing an Information Memo to provide guidance to its members and member organizations that are engaged in trading on the floor of the Exchange concerning the impact the Pilot will have with respect to certain rules of the Exchange governing such trading. The Information Memo reminds members and member organizations that, even though tick tests will not apply to short sales in Pilot securities, short sales in these securities must still be conducted in a manner consistent with all other applicable Exchange rules and Federal securities laws regarding market manipulation, fraud, market maintenance and other violative trading situations. The Information Memo also identifies specific Exchange rules, which have tick-sensitive components, but which are not affected by the suspension of tick tests for short sales outlined in the Pilot. For example, Exchange Rule 80A (Index Arbitrage Trading Restrictions) requires in certain circumstances that index arbitrage orders in certain stocks be entered on the Exchange as ‘‘sell plus,’’ meaning the orders must be executed on a plus or zero-plus tick. This requirement will continue to apply even if the order is a short sale entered in a stock that is part of the Pilot. The Exchange identifies several other tick-sensitive rules that will not be affected by the Pilot. The Exchange is alerting specialists and other floor members as to the manner in which it is interpreting certain provisions of Exchange Rule 104 (Dealings by Specialists) once the Pilot begins. As the Exchange anticipates that trading in certain stocks may see an increase in speed and volatility, the Exchange is advising specialists that, in such circumstances, Floor Official approval required under the Rule may be sought after a trade has taken place, but, in any case, as soon as possible. The Exchange is advising Floor Officials in these situations to review requests for approval as quickly as possible, and that they should complete their review and E:\FR\FM\02JNN1.SGM 02JNN1 32392 Federal Register / Vol. 70, No. 105 / Thursday, June 2, 2005 / Notices make a decision before the close of trading on the same day. The Exchange is also providing guidance to Floor Officials with respect to reviewing approval requests involving specialist short sale proprietary trades against the existing bid in a declining market. Here the Exchange is advising Floor Officials to use the same considerations to reach a decision as to whether to give approval as they would use in evaluating specialist proprietary trades against existing offers in a rising market. Floor Officials must promptly report to the Exchange’s On Floor Surveillance Unit instances where they have declined to give approval to a transaction. The Information Memo also highlights the application of depth guidelines in certain stocks. Depth guidelines specify what are considered general tolerances for price movements per trading sequence of 3,000 shares or less based on a stock’s current price range and the prior month’s adjusted average daily volume, which excluded trades of 25,000 shares or more. The Exchange reminds Floor Officials that requests to widen or suspend depth guidelines should continue to be evaluated based on what is reasonable given the relevant facts and circumstances in the market at the time of the request. The Exchange believes that the guidance offered in the Information Memo will help the membership in facing any challenges offered by new market dynamics that could result from trading after the Pilot has begun. 2. Statutory Basis The basis under the Act for this proposed rule change is the requirement under Section 6(b)(5) 5 of the Act that an Exchange have rules that are designed 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. B. Self-Regulatory Organization’s Statement on Burden on Competition The Exchange believes that the proposed change will not 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 The Exchange has neither solicited nor received comments on the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing proposed rule change has become effective pursuant to Section 19(b)(3)(A)(i) 6 of the Act and subparagraph (f)(1) of Rule 19b–4 7 thereunder. The proposed rule change is a stated policy, practice or interpretation with respect to the meaning, administration or enforcement of existing rules of the Exchange. At any time within 60 days of the filing of such 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 (https://www.sec.gov/ rules/sro.shtml); or • Send an e-mail to rulecomments@sec.gov. Please include File Number SR–NYSE–2005–31 on the subject line. U.S.C. 78f(b)(5). VerDate jul<14>2003 16:54 Jun 01, 2005 7 17 Jkt 205001 For the Commission, by the Division of Market Regulation, pursuant to delegated authority.8 Margaret H. McFarland, Deputy Secretary. [FR Doc. E5–2809 Filed 6–1–05; 8:45 am] BILLING CODE 8010–01–P DEPARTMENT OF STATE [Public Notice 5093] Culturally Significant Objects Imported for Exhibition Determinations: Assorted Egyptian Treasures for Public Exhibition Department of State. Notice. AGENCY: ACTION: SUMMARY: Notice is hereby given of the following determinations: Pursuant to the authority vested in me by the Act of October 19, 1965 (79 Stat. 985; 22 U.S.C. Paper Comments 2459), Executive Order 12047 of March 27, 1978, the Foreign Affairs Reform and • Send paper comments in triplicate Restructuring Act of 1998 (112 Stat. to Jonathan G. Katz, Secretary, 2681, et seq.; 22 U.S.C. 6501 note, et Securities and Exchange Commission, seq.), Delegation of Authority No. 234 of 450 Fifth Street, NW., Washington, DC October 1, 1999, Delegation of Authority 20549–0609. No. 236 of October 19, 1999, as All submissions should refer to File amended, and Delegation of Authority Number SR–NYSE–2005–31. This file No. 257 of April 15, 2003 [68 FR 19875], number should be included on the subject line if e-mail is used. To help the I hereby determine that the objects covered by this Notice, imported from Commission process and review your abroad for temporary exhibition within comments more efficiently, please use only one method. The Commission will the United States, are of cultural post all comments on the Commission’s significance. The objects are imported pursuant to loan agreements with the Internet Web site (https://www.sec.gov/ foreign owners. I also determine that the rules/sro.shtml). Copies of the exhibition or display of the exhibit submission, all subsequent objects as part of the exhibition amendments, all written statements ‘‘Mummy: the inside story’’, at the 6 15 5 15 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 Room. Copies of such filing also will be available for inspection and copying at the principal office of the NYSE. 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–NYSE–2005–31 and should be submitted on or before June 23, 2005. PO 00000 U.S.C. 78s(b)(3)(A)(i). CFR 240.19b–4(f)(1). Frm 00104 Fmt 4703 Sfmt 4703 8 17 E:\FR\FM\02JNN1.SGM CFR 200.30–3(a)(12). 02JNN1

Agencies

[Federal Register Volume 70, Number 105 (Thursday, June 2, 2005)]
[Notices]
[Pages 32391-32392]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-2809]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-51744; File No. SR-NYSE-2005-31]


Self-Regulatory Organizations; New York Stock Exchange, Inc.; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
Relating to Interpretation of Exchange Rules

May 25, 2005.
    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 April 29, 2005 the New York Stock Exchange, Inc. (``NYSE'' 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. 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 proposed rule change is an Information Memo providing certain 
interpretations of Exchange rules concerning the application of those 
rules in connection with the Pilot Program established by the 
Commission under Rule 202T \3\ of Regulation SHO (the ``Pilot'').\4\ 
The text of the proposed rule change is available on the Exchange's 
Internet Web site (https://www.nyse.com), at the Exchange's Office of 
the Secretary, and at the places specified in Item IV below.
---------------------------------------------------------------------------

    \3\ 17 CFR 242.202T.
    \4\ 17 CFR 242.200 through 203.
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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 Exchange 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 these 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 aspects of such 
statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange is issuing an Information Memo to provide guidance to 
its members and member organizations that are engaged in trading on the 
floor of the Exchange concerning the impact the Pilot will have with 
respect to certain rules of the Exchange governing such trading. The 
Information Memo reminds members and member organizations that, even 
though tick tests will not apply to short sales in Pilot securities, 
short sales in these securities must still be conducted in a manner 
consistent with all other applicable Exchange rules and Federal 
securities laws regarding market manipulation, fraud, market 
maintenance and other violative trading situations. The Information 
Memo also identifies specific Exchange rules, which have tick-sensitive 
components, but which are not affected by the suspension of tick tests 
for short sales outlined in the Pilot. For example, Exchange Rule 80A 
(Index Arbitrage Trading Restrictions) requires in certain 
circumstances that index arbitrage orders in certain stocks be entered 
on the Exchange as ``sell plus,'' meaning the orders must be executed 
on a plus or zero-plus tick. This requirement will continue to apply 
even if the order is a short sale entered in a stock that is part of 
the Pilot. The Exchange identifies several other tick-sensitive rules 
that will not be affected by the Pilot.
    The Exchange is alerting specialists and other floor members as to 
the manner in which it is interpreting certain provisions of Exchange 
Rule 104 (Dealings by Specialists) once the Pilot begins. As the 
Exchange anticipates that trading in certain stocks may see an increase 
in speed and volatility, the Exchange is advising specialists that, in 
such circumstances, Floor Official approval required under the Rule may 
be sought after a trade has taken place, but, in any case, as soon as 
possible. The Exchange is advising Floor Officials in these situations 
to review requests for approval as quickly as possible, and that they 
should complete their review and

[[Page 32392]]

make a decision before the close of trading on the same day. The 
Exchange is also providing guidance to Floor Officials with respect to 
reviewing approval requests involving specialist short sale proprietary 
trades against the existing bid in a declining market. Here the 
Exchange is advising Floor Officials to use the same considerations to 
reach a decision as to whether to give approval as they would use in 
evaluating specialist proprietary trades against existing offers in a 
rising market. Floor Officials must promptly report to the Exchange's 
On Floor Surveillance Unit instances where they have declined to give 
approval to a transaction.
    The Information Memo also highlights the application of depth 
guidelines in certain stocks. Depth guidelines specify what are 
considered general tolerances for price movements per trading sequence 
of 3,000 shares or less based on a stock's current price range and the 
prior month's adjusted average daily volume, which excluded trades of 
25,000 shares or more. The Exchange reminds Floor Officials that 
requests to widen or suspend depth guidelines should continue to be 
evaluated based on what is reasonable given the relevant facts and 
circumstances in the market at the time of the request.
    The Exchange believes that the guidance offered in the Information 
Memo will help the membership in facing any challenges offered by new 
market dynamics that could result from trading after the Pilot has 
begun.
2. Statutory Basis
    The basis under the Act for this proposed rule change is the 
requirement under Section 6(b)(5) \5\ of the Act that an Exchange have 
rules that are designed 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.
---------------------------------------------------------------------------

    \5\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange believes that the proposed change will not 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

    The Exchange has neither solicited nor received comments on the 
proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The foregoing proposed rule change has become effective pursuant to 
Section 19(b)(3)(A)(i) \6\ of the Act and subparagraph (f)(1) of Rule 
19b-4 \7\ thereunder. The proposed rule change is a stated policy, 
practice or interpretation with respect to the meaning, administration 
or enforcement of existing rules of the Exchange. At any time within 60 
days of the filing of such 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.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78s(b)(3)(A)(i).
    \7\ 17 CFR 240.19b-4(f)(1).
---------------------------------------------------------------------------

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 (https://
www.sec.gov/rules/sro.shtml); or
     Send an e-mail to rule-comments@sec.gov. Please include 
File Number SR-NYSE-2005-31 on the subject line.

Paper Comments

     Send paper comments in triplicate to Jonathan G. Katz, 
Secretary, Securities and Exchange Commission, 450 Fifth Street, NW., 
Washington, DC 20549-0609.
    All submissions should refer to File Number SR-NYSE-2005-31. 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 (https://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 Room. Copies of such 
filing also will be available for inspection and copying at the 
principal office of the NYSE. 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-NYSE-2005-31 and should be submitted on or before June 
23, 2005.
---------------------------------------------------------------------------

    \8\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\8\
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5-2809 Filed 6-1-05; 8:45 am]
BILLING CODE 8010-01-P
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