Self-Regulatory Organizations; New York Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to the Exchange's Proposal To Place an Immediate Moratorium on the Qualification and Registration of New Competitive Traders and Registered Competitive Market Makers, 62155-62156 [E5-5975]
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Federal Register / Vol. 70, No. 208 / Friday, October 28, 2005 / Notices
19(b)(3)(A)(ii) of the Act 8 and Rule 19b–
4(f)(2) 9 thereunder because the
proposed rule establishes or changes a
due, fee, or other charge. At any time
within sixty 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 (https://www.sec.gov/
rules/sro.shtml) or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–FICC–2005–15 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Jonathan G. Katz, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–9303.
All submissions should refer to File
Number SR–FICC–2005–15. 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
Section, 100 F Street, NE., Washington,
DC 20549. Copies of such filing also will
be available for inspection and copying
at the principal office of FICC and on
FICC’s Web site at https://www.ficc.com.
8 15
9 17
U.S.C. 78s(b)(3)(A)(ii).
CFR 240.19b–4(f)(2).
VerDate Aug<31>2005
18:15 Oct 27, 2005
Jkt 208001
62155
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–FICC–2005–15 and should
be submitted on or before November 18,
2005.
moratorium on the qualification and
registration of new Competitive Traders
(‘‘CTs’’) and Registered Competitive
Market Makers (‘‘RCMMs’’) covered in
Rules 110 and 107A, respectively. The
text of the proposed rule change is
available on the NYSE’s Web site
(https://www.nyse.com), at the NYSE’s
Office of the Secretary, and at the
Commission’s Public Reference Room.
For the Commission by the Division of
Market Regulation, pursuant to delegated
authority.10
Jonathan G. Katz,
Secretary.
[FR Doc. E5–5971 Filed 10–27–05; 8:45 am]
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. 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.
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–52648; File No. SR–NYSE–
2005–63]
Self-Regulatory Organizations; New
York Stock Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change Relating to the
Exchange’s Proposal To Place an
Immediate Moratorium on the
Qualification and Registration of New
Competitive Traders and Registered
Competitive Market Makers
October 21, 2005.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
notice is hereby given that on
September 22, 2005, the New York
Stock Exchange, Inc. (‘‘NYSE’’ or
‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the Exchange. The Exchange has
designated the proposed rule change as
constituting a ‘‘non-controversial’’ rule
change under Section 19(b)(3)(A)(iii) of
the Act,3 and paragraph (f)(6) of Rule
19b-4 under the Act,4 which renders the
proposal effective upon receipt of this
filing by the Commission. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The proposed rule change is an
Information Memo announcing a
10 17
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(iii).
4 17 CFR 240.19b-4(f)(6).
PO 00000
Frm 00066
Fmt 4703
Sfmt 4703
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange has decided to study
the future viability of CTs and RCMMs
in light of the new Hybrid Market
environment. While the Exchange
conducts this study, it considers it
appropriate to place a moratorium on
the qualification and registration of new
CTs and RCMMs.
CTs and RCMMs were first authorized
by the Commission in 1964 5 and 1978,6
respectively, to generate competition to
specialists, add depth and liquidity to
the market and create supplemental
market making traders on the Exchange.
NYSE Rules 110 and 111 govern CTs,
and NYSE Rule 107A governs RCMMs.
CTs and RCMMs can both conduct
proprietary trading under the market
maker exemption found in paragraph
(1)(A) of Section 11(a) of the Act.7 CTs’
trading must be at least 75% stabilizing,
and RCMMs must be ready to enter the
market with one round lot if called
upon by a floor official or broker to
narrow the quotation spread or add
liquidity to the market.
The Exchange’s rules require that
members must be registered by the
Exchange before they are able to
conduct business as a CT or RCMM, and
in order to be registered must, besides
5 NYSE Rule 110 (amended May 21, 1964 and
July 16, 1964, effective August 3, 1964).
6 Securities and Exchange Act Release No. 14718
(May 1, 1978), 43 FR 19738 (May 8, 1978) (SR–
NYSE–78–24).
7 15 U.S.C. 78k(a)(1)(A).
E:\FR\FM\28OCN1.SGM
28OCN1
62156
Federal Register / Vol. 70, No. 208 / Friday, October 28, 2005 / Notices
meeting other requirements, pass an
examination prescribed by the
Exchange.
The volume and speed of the market
has increased dramatically since CTs
and RCMMs were first created, and
significant changes have occurred with
respect to market dynamics. The
Exchange believes that these changes
coupled with the Exchange’s move to a
Hybrid Market makes this review timely
and appropriate. Currently there are
only 11 active RCMMs, and the sole CT
has not been active for several years. As
part of this review, the Exchange will
consider the diminished impact and
usage of RCMMs and the effective nonusage of the CT status, the resources
required to surveil their trading, and the
significant market timing and
informational advantage that they enjoy.
The Exchange will also examine any
regulatory requirements needed to
increase market maker liquidity
obligations.
The Exchange will issue an
Information Memo announcing the
moratorium. The Exchange notes that
the proposed moratorium will not
impact those members currently
registered as CTs and RCMMs.
Accordingly, during the period that the
moratorium is in place, NYSE Rules 110
and 111 and NYSE Rule 107A will
continue to govern the actions of current
CTs and RCMMs, respectively.8 The
Exchange will promptly file for
approval with the Commission any
changes to the existing rules that the
Exchange determines are warranted
upon completion of its review.
2. Statutory Basis
The Exchange believes that the basis
under the Act for this proposed rule
change is the requirement under Section
6(b)(5) 9 that an Exchange have rules
that are designed to promote just and
equitable principles of trade, to foster
cooperation and coordination with
persons engaged in regulating, clearing,
settling, processing information with
respect to, and facilitating transactions
in securities, 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 does not believe that
the proposed rule change will impose
8 Telephone conversation between Donald
Siemer, Director, Market Surveillance, NYSE and
Ronesha Butler, Special Counsel, and Sara Gillis,
Attorney, Division of Market Regulation,
Commission on October 6, 2005.
9 15 U.S.C. 78f(b)(5).
VerDate Aug<31>2005
18:15 Oct 27, 2005
Jkt 208001
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 written comments on the
proposed rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the 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) does not become operative for 30
days after the date of the filing, 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 10 and Rule 19b–
4(f)(6) thereunder.11 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:
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 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 No.
SR–NYSE–2005–63 and should be
submitted on or before November 18,
2005.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority. 12
Jonathan G. Katz,
Secretary.
[FR Doc. E5–5975 Filed 10–27–05; 8:45 am]
BILLING CODE 8010–01–P
SOCIAL SECURITY ADMINISTRATION
Agency Information Collection
Activities: Emergency Consideration
Request
Electronic Comments
The Social Security Administration
(SSA) publishes a list of information
collection packages that will require
clearance by the Office of Management
and Budget (OMB) in compliance with
Pub. L. 104–13, the Paperwork
Reduction Act of 1995, effective October
1, 1995. The information collection
request included in this notice is for
Paper Comments
revisions to an existing information
collection.
• Send paper comments in triplicate
SSA is soliciting comments on the
to Jonathan G. Katz, Secretary,
accuracy of the agency’s burden
Securities and Exchange Commission,
estimate; the need for the information;
100 F Street, NE., Washington, DC
its practical utility; ways to enhance its
20549–9303.
quality, utility, and clarity; and on ways
All submissions should refer to File
to minimize burden on respondents,
Number SR–NYSE–2005–63. This file
including the use of automated
number should be included on the
subject line if e-mail is used. To help the collection techniques or other forms of
information technology. Written
• 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–2005–63 on the
subject line.
10 15
11 17
PO 00000
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
Frm 00067
Fmt 4703
Sfmt 4703
12 17
E:\FR\FM\28OCN1.SGM
CFR 200.30–3(a)(12).
28OCN1
]]>Agencies
[Federal Register Volume 70, Number 208 (Friday, October 28, 2005)]
[Notices]
[Pages 62155-62156]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-5975]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-52648; File No. SR-NYSE-2005-63]
Self-Regulatory Organizations; New York Stock Exchange, Inc.;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Relating to the Exchange's Proposal To Place an Immediate Moratorium on
the Qualification and Registration of New Competitive Traders and
Registered Competitive Market Makers
October 21, 2005.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on September 22, 2005, the New York Stock Exchange, Inc. (``NYSE'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I and
II below, which Items have been prepared by the Exchange. The Exchange
has designated the proposed rule change as constituting a ``non-
controversial'' rule change under Section 19(b)(3)(A)(iii) of the
Act,\3\ and paragraph (f)(6) of Rule 19b-4 under the Act,\4\ which
renders the proposal effective upon receipt of this filing by the
Commission. 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.
\3\ 15 U.S.C. 78s(b)(3)(A)(iii).
\4\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The proposed rule change is an Information Memo announcing a
moratorium on the qualification and registration of new Competitive
Traders (``CTs'') and Registered Competitive Market Makers (``RCMMs'')
covered in Rules 110 and 107A, respectively. The text of the proposed
rule change is available on the NYSE's Web site (https://www.nyse.com),
at the NYSE's Office of the Secretary, 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 Exchange included statements
concerning the purpose of, and basis for, 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 has decided to study the future viability of CTs and
RCMMs in light of the new Hybrid Market environment. While the Exchange
conducts this study, it considers it appropriate to place a moratorium
on the qualification and registration of new CTs and RCMMs.
CTs and RCMMs were first authorized by the Commission in 1964 \5\
and 1978,\6\ respectively, to generate competition to specialists, add
depth and liquidity to the market and create supplemental market making
traders on the Exchange. NYSE Rules 110 and 111 govern CTs, and NYSE
Rule 107A governs RCMMs. CTs and RCMMs can both conduct proprietary
trading under the market maker exemption found in paragraph (1)(A) of
Section 11(a) of the Act.\7\ CTs' trading must be at least 75%
stabilizing, and RCMMs must be ready to enter the market with one round
lot if called upon by a floor official or broker to narrow the
quotation spread or add liquidity to the market.
---------------------------------------------------------------------------
\5\ NYSE Rule 110 (amended May 21, 1964 and July 16, 1964,
effective August 3, 1964).
\6\ Securities and Exchange Act Release No. 14718 (May 1, 1978),
43 FR 19738 (May 8, 1978) (SR-NYSE-78-24).
\7\ 15 U.S.C. 78k(a)(1)(A).
---------------------------------------------------------------------------
The Exchange's rules require that members must be registered by the
Exchange before they are able to conduct business as a CT or RCMM, and
in order to be registered must, besides
[[Page 62156]]
meeting other requirements, pass an examination prescribed by the
Exchange.
The volume and speed of the market has increased dramatically since
CTs and RCMMs were first created, and significant changes have occurred
with respect to market dynamics. The Exchange believes that these
changes coupled with the Exchange's move to a Hybrid Market makes this
review timely and appropriate. Currently there are only 11 active
RCMMs, and the sole CT has not been active for several years. As part
of this review, the Exchange will consider the diminished impact and
usage of RCMMs and the effective non-usage of the CT status, the
resources required to surveil their trading, and the significant market
timing and informational advantage that they enjoy. The Exchange will
also examine any regulatory requirements needed to increase market
maker liquidity obligations.
The Exchange will issue an Information Memo announcing the
moratorium. The Exchange notes that the proposed moratorium will not
impact those members currently registered as CTs and RCMMs.
Accordingly, during the period that the moratorium is in place, NYSE
Rules 110 and 111 and NYSE Rule 107A will continue to govern the
actions of current CTs and RCMMs, respectively.\8\ The Exchange will
promptly file for approval with the Commission any changes to the
existing rules that the Exchange determines are warranted upon
completion of its review.
---------------------------------------------------------------------------
\8\ Telephone conversation between Donald Siemer, Director,
Market Surveillance, NYSE and Ronesha Butler, Special Counsel, and
Sara Gillis, Attorney, Division of Market Regulation, Commission on
October 6, 2005.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that the basis under the Act for this
proposed rule change is the requirement under Section 6(b)(5) \9\ that
an Exchange have rules that are designed to promote just and equitable
principles of trade, to foster cooperation and coordination with
persons engaged in regulating, clearing, settling, processing
information with respect to, and facilitating transactions in
securities, 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.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
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
The Exchange has neither solicited nor received written comments on
the proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the 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) does not become
operative for 30 days after the date of the filing, 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 \10\ and
Rule 19b-4(f)(6) thereunder.\11\ 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.
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
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-2005-63 on the subject line.
Paper Comments
Send paper comments in triplicate to Jonathan G. Katz,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-9303.
All submissions should refer to File Number SR-NYSE-2005-63. 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 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 No. SR-NYSE-2005-63 and should be submitted on or before November
18, 2005.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority. \12\
---------------------------------------------------------------------------
\12\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Jonathan G. Katz,
Secretary.
[FR Doc. E5-5975 Filed 10-27-05; 8:45 am]
BILLING CODE 8010-01-P
