Self-Regulatory Organizations; New York Stock Exchange, Inc.; Order Approving Proposed Rule Change To Amend NYSE Rule 80A (Index Arbitrage Trading Restrictions) To Calculate Limitations on Index Arbitrage Trading Based on the NYSE Composite Index, 51398 [E5-4724]
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51398
Federal Register / Vol. 70, No. 167 / Tuesday, August 30, 2005 / Notices
arbitrators. Although it is clear under
NASD rules that persons who are
registered through a broker or a dealer
are associated persons of that brokerdealer, is this amendment helpful?
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–2005–094 on the
subject line.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–52328; File No. SR–NYSE–
2005–45]
Self-Regulatory Organizations; New
York Stock Exchange, Inc.; Order
Approving Proposed Rule Change To
Amend NYSE Rule 80A (Index
Arbitrage Trading Restrictions) To
Calculate Limitations on Index
Arbitrage Trading Based on the NYSE
Composite Index
August 24, 2005.
On June 28, 2005, the New York Stock
Exchange, Inc. (‘‘NYSE’’ or ‘‘Exchange’’)
filed with the Securities and Exchange
• Send paper comments in triplicate
Commission (‘‘Commission’’), pursuant
to Jonathan G. Katz, Secretary,
to Section 19(b)(1) of the Securities
Securities and Exchange Commission,
Exchange Act of 1934 (‘‘Act’’),1 and
100 F Street, NE., Washington, DC
Rule 19b–4 thereunder,2 a proposed rule
20549–2001.
change to amend NYSE Rule 80A (Index
All submissions should refer to File
Arbitrage Trading Restrictions) relating
Number SR–NASD–2005–094. This file
to limitations on index arbitrage trading.
number should be included on the
subject line if e-mail is used. To help the The proposed rule change was
published for comment in the Federal
Commission process and review your
Register on July 25, 2005.3 The
comments more efficiently, please use
only one method. The Commission will Commission received no comments on
post all comments on the Commission’s the proposal. This order approves the
proposed rule change.
Internet Web site (https://www.sec.gov/
Current NYSE Rule 80A provides for
rules/sro.shtml). Copies of the
limitations on index arbitrage trading in
submission, all subsequent
any component stock of the S&P 500
amendments, all written statements
Stock Price Index on any day that the
with respect to the proposed rule
Dow Jones Industrial Average (‘‘DJIA’’) 4
change that are filed with the
advances or declines at least 2% 5 from
Commission, and all written
its previous day’s closing value.6 The
communications relating to the
NYSE proposes to amend NYSE Rule
proposed rule change between the
Commission and any person, other than 80A to calculate the limitations on
index arbitrage trading as provided in
those that may be withheld from the
the rule based on the average closing
public in accordance with the
value of the NYSE Composite Index
provisions of 5 U.S.C. 552, will be
(‘‘NYA’’), replacing the current usage of
available for inspection and copying at
the DJIA.
the Commission’s Public Reference
The Commission finds that the
Room. Copies of such filing also will be
proposed rule change is consistent with
available for inspection and copying at
the requirements of the Act and the
the principal office of NASD. All
rules and regulations thereunder
comments received will be posted
applicable to a national securities
without change; the Commission does
not edit personal identifying
1 15 U.S.C. 78s(b)(1).
information from submissions. You
2 17 CFR 240.19b–4.
should submit only information that
3 Securities Exchange Act Release No. 52051 (July
you wish to make available publicly. All 18, 2005), 70 FR 42608.
submissions should refer to the File
4 ‘‘Dow Jones Industrial Average’’ is a service
mark of Dow Jones & Company, Inc.
Number SR–NASD–2005–094 and
5 Current NYSE Rule 80A provides that collars are
should be submitted on or before
based on a quarterly calculation of ‘‘two percent
September 20, 2005.
Paper Comments
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.11
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5–4726 Filed 8–29–05; 8:45 am]
BILLING CODE 8010–01–P
11 17
CFR 200.30–3(a)(12).
VerDate Aug<18>2005
15:17 Aug 29, 2005
Jkt 205001
value,’’ which is 2%, rounded down to the nearest
ten points, of the average closing value of the DJIA
for the last month of the previous calendar quarter.
6 NYSE Rule 80A’s current limitations on index
arbitrage trading provide that if the market
advances by 2% or more, all index arbitrage orders
to buy must be stabilizing (buy minus); similarly,
if the market declines by 2% or more, all index
arbitrage orders to sell must be stabilizing (sell
plus). The stabilizing requirements are removed if
the DJIA moves back to or within 1% of its closing
value.
PO 00000
Frm 00071
Fmt 4703
Sfmt 4703
exchange 7 and, in particular, the
requirements of Section 6 of the Act 8
and the rules and regulations
thereunder. Specifically, the
Commission finds the proposal to be
consistent with Section 6(b)(5) of the
Act,9 in that it is 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. According to the
Exchange, the NYA is a better reflection
of market activity with respect to the
S&P 500 and thus, a better indicator as
to when the restrictions on index
arbitrage trading provided by NYSE
Rule 80A should be triggered. Therefore,
the Commission believes that it is
consistent with the Act for the NYSE to
amend NYSE Rule 80A to calculate
limitations on index arbitrage trading
based on the NYA.10
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,11 that the
proposed rule change (SR–NYSE–2005–
45) be, and it hereby is, approved.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.12
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5–4724 Filed 8–29–05; 8:45 am]
BILLING CODE 8010–01–P
UNITED STATES SENTENCING
COMMISSION
Sentencing Guidelines for United
States Courts
United States Sentencing
Commission.
ACTION: Notice of final priorities.
AGENCY:
7 In approving this proposed rule change, the
Commission has considered the proposed rule’s
impact on efficiency, competition and capital
formation. See 15 U.S.C. 78c(f).
8 15 U.S.C. 78f.
9 15 U.S.C. 78f(b)(5).
10 The Commission notes that approval of the
proposed rule change is based, in part, on the fact
that NYSE Rule 80A affects only certain types of
trading by NYSE members trading on the floor of
the Exchange. The rule’s cross-market implications
are minimal. The Commission, therefore, believes
that the NYSE should have considerable discretion
in determining which index to apply under this
rule. The Commission’s approval of the proposed
rule change should in no way be interpreted as an
indication that a similar change to NYSE Rule 80B
(Trading Halts Due to Extraordinary Market
Volatility), which is integral to the cross-market
trading halt procedures known as ‘‘Circuit
Breakers,’’ would be subject to the same analysis or
similarly approved by the Commission.
11 15 U.S.C. 78s(b)(2).
12 17 CFR 200.30–3(a)(12).
E:\FR\FM\30AUN1.SGM
30AUN1
]]>Agencies
[Federal Register Volume 70, Number 167 (Tuesday, August 30, 2005)]
[Notices]
[Page 51398]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-4724]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-52328; File No. SR-NYSE-2005-45]
Self-Regulatory Organizations; New York Stock Exchange, Inc.;
Order Approving Proposed Rule Change To Amend NYSE Rule 80A (Index
Arbitrage Trading Restrictions) To Calculate Limitations on Index
Arbitrage Trading Based on the NYSE Composite Index
August 24, 2005.
On June 28, 2005, the New York Stock Exchange, Inc. (``NYSE'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission''), pursuant to Section 19(b)(1) of the Securities
Exchange Act of 1934 (``Act''),\1\ and Rule 19b-4 thereunder,\2\ a
proposed rule change to amend NYSE Rule 80A (Index Arbitrage Trading
Restrictions) relating to limitations on index arbitrage trading. The
proposed rule change was published for comment in the Federal Register
on July 25, 2005.\3\ The Commission received no comments on the
proposal. This order approves the proposed rule change.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ Securities Exchange Act Release No. 52051 (July 18, 2005),
70 FR 42608.
---------------------------------------------------------------------------
Current NYSE Rule 80A provides for limitations on index arbitrage
trading in any component stock of the S&P 500 Stock Price Index on any
day that the Dow Jones Industrial Average (``DJIA'') \4\ advances or
declines at least 2% \5\ from its previous day's closing value.\6\ The
NYSE proposes to amend NYSE Rule 80A to calculate the limitations on
index arbitrage trading as provided in the rule based on the average
closing value of the NYSE Composite Index[supreg] (``NYA''), replacing
the current usage of the DJIA.
---------------------------------------------------------------------------
\4\ ``Dow Jones Industrial Average'' is a service mark of Dow
Jones & Company, Inc.
\5\ Current NYSE Rule 80A provides that collars are based on a
quarterly calculation of ``two percent value,'' which is 2%, rounded
down to the nearest ten points, of the average closing value of the
DJIA for the last month of the previous calendar quarter.
\6\ NYSE Rule 80A's current limitations on index arbitrage
trading provide that if the market advances by 2% or more, all index
arbitrage orders to buy must be stabilizing (buy minus); similarly,
if the market declines by 2% or more, all index arbitrage orders to
sell must be stabilizing (sell plus). The stabilizing requirements
are removed if the DJIA moves back to or within 1% of its closing
value.
---------------------------------------------------------------------------
The Commission finds that the proposed rule change is consistent
with the requirements of the Act and the rules and regulations
thereunder applicable to a national securities exchange \7\ and, in
particular, the requirements of Section 6 of the Act \8\ and the rules
and regulations thereunder. Specifically, the Commission finds the
proposal to be consistent with Section 6(b)(5) of the Act,\9\ in that
it is 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. According to the Exchange, the NYA
is a better reflection of market activity with respect to the S&P 500
and thus, a better indicator as to when the restrictions on index
arbitrage trading provided by NYSE Rule 80A should be triggered.
Therefore, the Commission believes that it is consistent with the Act
for the NYSE to amend NYSE Rule 80A to calculate limitations on index
arbitrage trading based on the NYA.\10\
---------------------------------------------------------------------------
\7\ In approving this proposed rule change, the Commission has
considered the proposed rule's impact on efficiency, competition and
capital formation. See 15 U.S.C. 78c(f).
\8\ 15 U.S.C. 78f.
\9\ 15 U.S.C. 78f(b)(5).
\10\ The Commission notes that approval of the proposed rule
change is based, in part, on the fact that NYSE Rule 80A affects
only certain types of trading by NYSE members trading on the floor
of the Exchange. The rule's cross-market implications are minimal.
The Commission, therefore, believes that the NYSE should have
considerable discretion in determining which index to apply under
this rule. The Commission's approval of the proposed rule change
should in no way be interpreted as an indication that a similar
change to NYSE Rule 80B (Trading Halts Due to Extraordinary Market
Volatility), which is integral to the cross-market trading halt
procedures known as ``Circuit Breakers,'' would be subject to the
same analysis or similarly approved by the Commission.
---------------------------------------------------------------------------
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\11\ that the proposed rule change (SR-NYSE-2005-45) be, and it
hereby is, approved.
---------------------------------------------------------------------------
\11\ 15 U.S.C. 78s(b)(2).
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\12\
---------------------------------------------------------------------------
\12\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5-4724 Filed 8-29-05; 8:45 am]
BILLING CODE 8010-01-P
