Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change and Amendment No. 1 Thereto Relating To Extending the Time Period by Which the Exchange Will Amend the NASD-PCX Agreement Pursuant to Rule 17d-2, 16183-16185 [E6-4612]
Download as PDF
<![CDATA[
cprice-sewell on PROD1PC66 with NOTICES
Federal Register / Vol. 71, No. 61 / Thursday, March 30, 2006 / Notices
requests for approval of extension on
the following rule: Rule 15c2–1.
Rule 15c2–1 under the Securities
Exchange Act of 1934 (17 CFR
240.15c2–1) prohibits the commingling
under the same lien of securities of
margin customers (a) with other
customers without their written consent
and (b) with the broker or dealer. The
rule also prohibits the rehypothecation
of customers’ margin securities for a
sum in excess of the customer’s
aggregate indebtedness. See Securities
Exchange Act Release No. 2690
(November 15, 1940); Securities
Exchange Act Release No. 9428
(December 29, 1971). Pursuant to Rule
15c2–1, respondents must collect
information necessary to prevent the
rehypothecation of customer securities
in contravention of the rule, issue and
retain copies of notices of hypothecation
of customer securities in accordance
with the rule, and collect written
consents from customers in accordance
with the rule. The information is
necessary to ensure compliance with the
rule and to advise customers of the
rule’s protections.
There are approximately 145
respondents (i.e., broker-dealers that
carry or clear customer accounts that
also have bank loans) that require an
aggregate total of 3263 hours to comply
with the rule. Each of these
approximately 145 registered brokerdealers makes an estimated 45 annual
responses. Each response takes
approximately 0.5 hours to complete.
Thus, the total compliance burden per
year is 3263 burden hours.
An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
unless it displays a currently valid
control number.
Comments regarding the estimated
burden hours should be directed to: (i)
The Desk Officer for the Securities and
Exchange Commission, Office of
Information and Regulatory Affairs,
Office of Management and Budget,
Room 10102, New Executive Office
Building, Washington, DC 20503 or by
sending an e-mail to
David_Rostker@omb.eop.gov; and (ii) R.
Corey Booth, Director/Chief Information
Officer, Securities and Exchange
Commission, C/O Shirley Martinson,
6432 General Green Way, Alexandria,
Virginia 22312 or send an e-mail to:
PRA_Mailbox@sec.gov. Comments must
be submitted to OMB within 30 days of
this notice.
VerDate Aug<31>2005
15:32 Mar 29, 2006
Jkt 208001
Dated: March 23, 2006.
Nancy M. Morris,
Secretary.
[FR Doc. E6–4624 Filed 3–29–06; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
Submission for OMB Review;
Comment Request
Upon written request, copies available
from: Securities and Exchange
Commission, Office of Filings and
Information Services, Washington, DC
20549.
Extension: Rule 15c2–7; SEC File No. 270–
420; OMB Control No. 3235–0479.
Notice is hereby given that pursuant
to the Paperwork Reduction Act of 1995
(44 U.S.C. 3501 et seq.), the Securities
and Exchange Commission
(‘‘Commission’’) has submitted to the
Office of Management and Budget
(‘‘OMB’’) a request for extension of the
previously approved collection of
information discussed below.
• Rule 15c2–7, Identification of
Quotations
Rule 15c2–7 under the Securities
Exchange Act of 1934 (17 CFR
240.15c2–7) enumerates the
requirements with which brokers and
dealers must comply when submitting a
quotation for a security (other than a
municipal security) to an inter-dealer
quotation system.
It is estimated that there are 8,500
brokers and dealers. Industry personnel
estimate that approximately 900 notices
are filed pursuant to Rule 15c2–7
annually. Based on industry estimates
that respondents complying with Rule
15c2–7 spend 30 seconds to add notice
of an arrangement and 1 minute to
delete notice of an arrangement, the staff
estimates that, on an annual basis,
respondents spend a total of 11.25 hours
to comply with Rule 15c2–7, based
upon past submissions. The average cost
per hour is approximately $35.
Therefore, the total cost of compliance
for brokers and dealers is approximately
$393.75
The retention period for the
recordkeeping requirement under Rule
15c2–7 is three years following the date
a quotation is submitted. The
recordkeeping requirement under this
Rule is mandatory to assist the
Commission with monitoring brokers
and dealers who submit quotations to an
inter-dealer quotation system. This rule
does not involve the collection of
confidential information. Please note
that an agency may not conduct or
sponsor, and a person is not required to
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16183
respond to, a collection of information
unless it displays a currently valid
control number.
General comments regarding the
estimated burden hours should be
directed to the following persons: (i)
Desk Officer for the Securities and
Exchange Commission, Office of
Information and Regulatory Affairs,
Office of Management and Budget,
Room 10102, New Executive Office
Building, Washington, DC 20503 or by
sending an e-mail to
David_Rostker@omb.eop.gov; and (ii) R.
Corey Booth, Director/Chief Information
Officer, C/O Shirley Martinson, 6432
General Green Way, Alexandria,
Virginia 22312 or send an e-mail to:
PRA_Mailbox@sec.gov. Comments must
be submitted to OMB within 30 days of
this notice.
Dated: March 23, 2006.
Nancy M. Morris,
Secretary.
[FR Doc. E6–4625 Filed 3–29–06; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–53545; File No. SR–
NYSEArca–2006–06]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change and Amendment No. 1
Thereto Relating To Extending the
Time Period by Which the Exchange
Will Amend the NASD–PCX Agreement
Pursuant to Rule 17d–2
March 23, 2006.
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 March 21,
2006, NYSE Arca, Inc. (‘‘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. On
March 23, 2006, the Exchange filed
Amendment No. 1 to the proposed rule
change.3 The Exchange filed the
proposal as a ‘‘non-controversial’’ rule
change pursuant to Section 19(b)(3)(A)
of the Act 4 and Rule 19b–4(f)(6)
thereunder,5 which renders the proposal
effective upon filing with the
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 In Amendment No. 1, the Exchange revised the
statutory basis section of the filing.
4 15 U.S.C. 78s(b)(3)(A).
5 17 CFR 240.19b–4(f)(6).
2 17
E:\FR\FM\30MRN1.SGM
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16184
Federal Register / Vol. 71, No. 61 / Thursday, March 30, 2006 / Notices
Commission.6 The Commission is
publishing this notice, as amended, 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 Exchange is proposing to amend
its undertaking 7 to extend for 90 days
from the date of this filing the time
period by which the Exchange will
amend and restate the agreement
between the National Association of
Securities Dealers, Inc. (‘‘NASD’’) and
the Exchange currently in place
pursuant to Rule 17d–2 under the Act 8
(the ‘‘NASD–PCX Agreement’’ or the
‘‘Agreement’’). As described in more
detail below, the revisions to the
NASD–PCX Agreement will expand the
scope of the NASD’s regulatory
responsibility.
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
cprice-sewell on PROD1PC66 with NOTICES
1. Purpose
On September 22, 2005, the
Commission approved a proposed rule
change submitted by the Exchange
relating to the acquisition of PCX
Holdings, Inc. (now known as NYSE
Arca Holdings, Inc.) 9 by Archipelago
Holdings, Inc.10 In that filing, the
Exchange (formerly known as the
Pacific Exchange, Inc.) committed to
amend the NASD–PCX Agreement
6 The Exchange has asked the Commission to
waive the 5-day pre-filing notice requirement and
the 30-day operative delay. See Section 19(b)(3)(A)
of the Act, and Rule 19b–4(f)(6)(iii) thereunder. 15
U.S.C. 78s(b)(3)(A), 17 CFR 240.19b–4(f)(6)(iii).
7 See Securities Exchange Act Release No. 52497
(September 22, 2005), 70 FR 56949 (September 29,
2005) (approving SR–PCX–2005–90, as amended).
8 17 CFR 240.17d–2. See Securities Exchange Act
Release No. 16858 (May 30, 1980), 45 FR 37927
(June 5, 1980) (File No. 4–267).
9 See SR–PCX–2006–24.
10 See Securities Exchange Act Release No. 52497,
supra note 7.
VerDate Aug<31>2005
15:32 Mar 29, 2006
Jkt 208001
within 90 days of the Commission’s
approval of SR–PCX–2005–90 to expand
the scope of the NASD’s regulatory
functions under the NASD–PCX
Agreement so as to encompass all of the
regulatory oversight and enforcement
responsibilities with respect to the
broker-dealer affiliate of Archipelago
Holdings, Inc., Archipelago Securities,
L.L.C. (‘‘Archipelago Securities’’).11 The
Exchange submitted a subsequent filing
on December 21, 2005 requesting a 90day extension with respect to the
requirements discussed above.12 The
Exchange and the NASD (collectively,
the ‘‘Parties’’) have executed an
amended and restated agreement and,
on January 20, 2006, the Parties filed the
amended and restated agreement with
the Commission but have not yet
received Commission approval of the
amended and restated agreement.
The Exchange believes that an
extension of time for an additional 90
days from the date of this filing to
amend the NASD–PCX Agreement will
give the Commission staff sufficient
time to publish and take action on the
proposal. There is currently a plan in
place (i.e., the NASD–PCX Agreement)
allocating to the NASD the
responsibility to receive regulatory
reports from Archipelago Securities, to
examine Archipelago Securities for
compliance and to enforce compliance
by Archipelago Securities with the Act,
the rules and regulations thereunder
and the rules of the NASD, and to carry
out other specified regulatory functions
with respect to Archipelago Securities.
The Exchange notes that the current
NASD–PCX Agreement will remain in
full force and effect during the interim
period, and the Exchange will continue
to abide by the terms of the agreement.
The Exchange believes, therefore, that
the requested extension of time is
consistent with the Act and the rules
and regulations thereunder, and will not
significantly affect the protection of
investors or the public interest and does
not impose any significant burden on
competition.
2. Statutory Basis
The Exchange believes that the
proposed rule change, as amended, is
consistent with Section 6(b) 13 of the
Act, in general, and furthers the
11 Archipelago Securities acts as the outbound
order router for the NYSE Arca Marketplace and, as
such, is regulated as an exchange ‘‘facility’’ of the
Exchange and NYSE Arca Equities, Inc.
12 See Securities Exchange Act Release No. 52995
(December 21, 2005), 70 FR 77232 (December 29,
2005) (notice of filing and immediate effectiveness
of SR–PCX–2005–140, as amended). This 90-day
extension period expired on March 21, 2006.
13 15 U.S.C. 78f(b).
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Frm 00072
Fmt 4703
Sfmt 4703
objectives of Section 6(b)(5) 14 of the
Act, in particular, in that it is designed
to prevent fraudulent and manipulative
acts and practices, 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, as amended,
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
Written comments on the proposed
rule change, as amended, were neither
solicited nor received by the Exchange.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing rule: (i) Does
not significantly affect the protection of
investors or the public interest; (ii) does
not impose any significant burden on
competition; and (iii) by its terms, does
not become operative for 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,15 the proposed rule change has
become effective pursuant to Section
19(b)(3)(A) of the Act 16 and Rule 19b–
4(f)(6) thereunder.17
The Exchange has requested that the
Commission waive the 30-day operative
delay, which would make the rule
change effective and operative upon
filing. The Commission believes that
waiving the 30-day operative delay is
consistent with the protection of
investors and the public interest.
14 15
U.S.C. 78f(b)(5).
to Rule 19b–4(f)(6)(iii) under the Act,
the Exchange is required 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 requested that the
Commission waive the 5-day pre-filing notice
requirement. The Commission has determined to
waive this requirement.
16 15 U.S.C. 78s(b)(3)(A).
17 CFR 240.19b–4(f)(6).
15 Pursuant
E:\FR\FM\30MRN1.SGM
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Federal Register / Vol. 71, No. 61 / Thursday, March 30, 2006 / Notices
Because the current time period expired
on March 21, 2006, such waiver will
allow the Exchange to remain in
compliance with its undertaking made
in connection with the Commission’s
approval of SR–PCX–2005–90 to amend
the NASD–PCX Agreement. The
Commission notes that the Exchange
has filed with the Commission, on
January 20, 2006, an executed amended
and restated agreement. Extending the
compliance date for the Exchange’s
undertaking by an additional 90 days
will provide time for the Exchange to
respond to any comments from the
Commission’s staff on the amended and
restated agreement, as well as provide
time for publication of, and action on,
the amended and restated agreement.
The Commission further notes that the
current Commission-approved NASD–
PCX Agreement will remain in full force
and effect during the interim period,
and the Exchange will continue to abide
by the terms of that Agreement. For
these reasons, the Commission
designates the proposal to be effective
and operative upon filing with the
Commission.18
At any time within 60 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.19
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
cprice-sewell on PROD1PC66 with NOTICES
18 For the purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. 15 U.S.C. 78c(f).
19 For purposes of calculating the 60-day period
within which the Commission may summarily
abrogate the proposed rule change under Section
19(b)(3)(C) of the Act, the Commission considers
the period to commence on March 23, 2006, the
date on which the Exchange filed Amendment No.
1. See 15 U.S.C. 78s(b)(3)(C).
VerDate Aug<31>2005
15:32 Mar 29, 2006
Paper Comments
2681, et seq.; 22 U.S.C. 6501 note, et
seq.), Delegation of Authority No. 234 of
• Send paper comments in triplicate
October 1, 1999, Delegation of Authority
to Nancy M. Morris, Secretary,
No. 236 of October 19, 1999, as
Securities and Exchange Commission,
amended, and Delegation of Authority
100 F Street, NE., Washington, DC
No. 257 of April 15, 2003 [68 FR 19875],
20549–1090.
I hereby determine that the objects to be
All submissions should refer to File
included in the exhibition ‘‘The Gospel
Number NYSEArca–2006–06. This file
of Judas,’’ imported from abroad for
number should be included on the
temporary exhibition within the United
subject line if e-mail is used. To help the States, are of cultural significance. The
Commission process and review your
objects are imported pursuant to loan
comments more efficiently, please use
agreements with the foreign owners or
only one method. The Commission will custodians. I also determine that the
post all comments on the Commission’s exhibition or display of the exhibit
Internet Web site (https://www.sec.gov/
objects at the National Geographic
rules/sro.shtml). Copies of the
Society, Washington, DC, from on or
submission, all subsequent
about April 6, 2006, until on or about
amendments, all written statements
October 6, 2006, and possibly at other
with respect to the proposed rule
venues yet to be determined, is in the
change that are filed with the
national interest. Public Notice of these
Commission, and all written
Determinations is ordered to be
communications relating to the
published in the Federal Register.
proposed rule change between the
FOR FURTHER INFORMATION CONTACT: For
Commission and any person, other than
further information, including a list of
those that may be withheld from the
the exhibit objects, contact Julianne
public in accordance with the
Simpson, Attorney-Adviser, Office of
provisions of 5 U.S.C. 552, will be
the Legal Adviser, U.S. Department of
available for inspection and copying in
State (telephone: 202/453–8049). The
the Commission’s Public Reference
address is U.S. Department of State, SA–
Room. Copies of the filing also will be
44, 301 4th Street, SW., Room 700,
available for inspection and copying at
Washington, D.C. 20547–0001.
the principal office of the Exchange. All
Dated: March 27, 2006.
comments received will be posted
C. Miller Crouch,
without change; the Commission does
Principal Deputy Assistant Secretary for
not edit personal identifying
Educational and Cultural Affairs, Department
information from submissions. You
of State.
should submit only information that
you wish to make available publicly. All [FR Doc. E6–4635 Filed 3–29–06; 8:45 am]
BILLING CODE 4710–05–P
submissions should refer to File
Number NYSEArca–2006–06 and
should be submitted on or before April
DEPARTMENT OF TRANSPORTATION
20, 2006.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.20
Nancy M. Morris,
Secretary.
[FR Doc. E6–4612 Filed 3–29–06; 8:45 am]
BILLING CODE 8010–01–P
• 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 NYSEArca–2006–06 on the
subject line.
Jkt 208001
16185
DEPARTMENT OF STATE
[Public Notice 5357]
Culturally Significant Objects Imported
for Exhibition Determinations: ‘‘The
Gospel of Judas’’
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.
2459), Executive Order 12047 of March
27, 1978, the Foreign Affairs Reform and
Restructuring Act of 1998 (112 Stat.
20 17
PO 00000
CFR 200.30–3(a)(12).
Frm 00073
Fmt 4703
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Office of the Secretary
Aviation Proceedings, Agreements
Filed the Week Ending March 10, 2006
The following Agreements were filed
with the Department of Transportation
under the Sections 412 and 414 of the
Federal Aviation Act, as amended (49
U.S.C. 1382 and 1384) and procedures
governing proceedings to enforce these
provisions. Answers may be filed within
21 days after the filing of the
application.
Docket Number: OST–2006–24132.
Date Filed: March 7, 2006.
Parties: Members of the International
Air Transport Association.
Subject: PTC2 Mail Vote 475; Special
Amending Resolution 010f Between
Germany and Europe.
Intended effective date: 1 April 2006.
Docket Number: OST–2006–24136.
Date Filed: March 8, 2006.
Parties: Members of the International
Air Transport Association.
E:\FR\FM\30MRN1.SGM
30MRN1
]]>Agencies
[Federal Register Volume 71, Number 61 (Thursday, March 30, 2006)]
[Notices]
[Pages 16183-16185]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-4612]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-53545; File No. SR-NYSEArca-2006-06]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change and Amendment No. 1
Thereto Relating To Extending the Time Period by Which the Exchange
Will Amend the NASD-PCX Agreement Pursuant to Rule 17d-2
March 23, 2006.
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 March 21, 2006, NYSE Arca, Inc. (``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. On March 23, 2006, the Exchange filed
Amendment No. 1 to the proposed rule change.\3\ The Exchange filed the
proposal as a ``non-controversial'' rule change pursuant to Section
19(b)(3)(A) of the Act \4\ and Rule 19b-4(f)(6) thereunder,\5\ which
renders the proposal effective upon filing with the
[[Page 16184]]
Commission.\6\ The Commission is publishing this notice, as amended, 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\ In Amendment No. 1, the Exchange revised the statutory basis
section of the filing.
\4\ 15 U.S.C. 78s(b)(3)(A).
\5\ 17 CFR 240.19b-4(f)(6).
\6\ The Exchange has asked the Commission to waive the 5-day
pre-filing notice requirement and the 30-day operative delay. See
Section 19(b)(3)(A) of the Act, and Rule 19b-4(f)(6)(iii)
thereunder. 15 U.S.C. 78s(b)(3)(A), 17 CFR 240.19b-4(f)(6)(iii).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange is proposing to amend its undertaking \7\ to extend
for 90 days from the date of this filing the time period by which the
Exchange will amend and restate the agreement between the National
Association of Securities Dealers, Inc. (``NASD'') and the Exchange
currently in place pursuant to Rule 17d-2 under the Act \8\ (the
``NASD-PCX Agreement'' or the ``Agreement''). As described in more
detail below, the revisions to the NASD-PCX Agreement will expand the
scope of the NASD's regulatory responsibility.
---------------------------------------------------------------------------
\7\ See Securities Exchange Act Release No. 52497 (September 22,
2005), 70 FR 56949 (September 29, 2005) (approving SR-PCX-2005-90,
as amended).
\8\ 17 CFR 240.17d-2. See Securities Exchange Act Release No.
16858 (May 30, 1980), 45 FR 37927 (June 5, 1980) (File No. 4-267).
---------------------------------------------------------------------------
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
On September 22, 2005, the Commission approved a proposed rule
change submitted by the Exchange relating to the acquisition of PCX
Holdings, Inc. (now known as NYSE Arca Holdings, Inc.) \9\ by
Archipelago Holdings, Inc.\10\ In that filing, the Exchange (formerly
known as the Pacific Exchange, Inc.) committed to amend the NASD-PCX
Agreement within 90 days of the Commission's approval of SR-PCX-2005-90
to expand the scope of the NASD's regulatory functions under the NASD-
PCX Agreement so as to encompass all of the regulatory oversight and
enforcement responsibilities with respect to the broker-dealer
affiliate of Archipelago Holdings, Inc., Archipelago Securities, L.L.C.
(``Archipelago Securities'').\11\ The Exchange submitted a subsequent
filing on December 21, 2005 requesting a 90-day extension with respect
to the requirements discussed above.\12\ The Exchange and the NASD
(collectively, the ``Parties'') have executed an amended and restated
agreement and, on January 20, 2006, the Parties filed the amended and
restated agreement with the Commission but have not yet received
Commission approval of the amended and restated agreement.
---------------------------------------------------------------------------
\9\ See SR-PCX-2006-24.
\10\ See Securities Exchange Act Release No. 52497, supra note
7.
\11\ Archipelago Securities acts as the outbound order router
for the NYSE Arca Marketplace and, as such, is regulated as an
exchange ``facility'' of the Exchange and NYSE Arca Equities, Inc.
\12\ See Securities Exchange Act Release No. 52995 (December 21,
2005), 70 FR 77232 (December 29, 2005) (notice of filing and
immediate effectiveness of SR-PCX-2005-140, as amended). This 90-day
extension period expired on March 21, 2006.
---------------------------------------------------------------------------
The Exchange believes that an extension of time for an additional
90 days from the date of this filing to amend the NASD-PCX Agreement
will give the Commission staff sufficient time to publish and take
action on the proposal. There is currently a plan in place (i.e., the
NASD-PCX Agreement) allocating to the NASD the responsibility to
receive regulatory reports from Archipelago Securities, to examine
Archipelago Securities for compliance and to enforce compliance by
Archipelago Securities with the Act, the rules and regulations
thereunder and the rules of the NASD, and to carry out other specified
regulatory functions with respect to Archipelago Securities. The
Exchange notes that the current NASD-PCX Agreement will remain in full
force and effect during the interim period, and the Exchange will
continue to abide by the terms of the agreement. The Exchange believes,
therefore, that the requested extension of time is consistent with the
Act and the rules and regulations thereunder, and will not
significantly affect the protection of investors or the public interest
and does not impose any significant burden on competition.
2. Statutory Basis
The Exchange believes that the proposed rule change, as amended, is
consistent with Section 6(b) \13\ of the Act, in general, and furthers
the objectives of Section 6(b)(5) \14\ of the Act, in particular, in
that it is designed to prevent fraudulent and manipulative acts and
practices, 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.
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\13\ 15 U.S.C. 78f(b).
\14\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change, as
amended, 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
Written comments on the proposed rule change, as amended, were
neither solicited nor received by the Exchange.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing rule: (i) Does not significantly affect the
protection of investors or the public interest; (ii) does not impose
any significant burden on competition; and (iii) by its terms, does not
become operative for 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,\15\ the proposed
rule change has become effective pursuant to Section 19(b)(3)(A) of the
Act \16\ and Rule 19b-4(f)(6) thereunder.\17\
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\15\ Pursuant to Rule 19b-4(f)(6)(iii) under the Act, the
Exchange is required 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 requested that the Commission waive the 5-day pre-
filing notice requirement. The Commission has determined to waive
this requirement.
\16\ 15 U.S.C. 78s(b)(3)(A).
\17\ CFR 240.19b-4(f)(6).
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The Exchange has requested that the Commission waive the 30-day
operative delay, which would make the rule change effective and
operative upon filing. The Commission believes that waiving the 30-day
operative delay is consistent with the protection of investors and the
public interest.
[[Page 16185]]
Because the current time period expired on March 21, 2006, such waiver
will allow the Exchange to remain in compliance with its undertaking
made in connection with the Commission's approval of SR-PCX-2005-90 to
amend the NASD-PCX Agreement. The Commission notes that the Exchange
has filed with the Commission, on January 20, 2006, an executed amended
and restated agreement. Extending the compliance date for the
Exchange's undertaking by an additional 90 days will provide time for
the Exchange to respond to any comments from the Commission's staff on
the amended and restated agreement, as well as provide time for
publication of, and action on, the amended and restated agreement. The
Commission further notes that the current Commission-approved NASD-PCX
Agreement will remain in full force and effect during the interim
period, and the Exchange will continue to abide by the terms of that
Agreement. For these reasons, the Commission designates the proposal to
be effective and operative upon filing with the Commission.\18\
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\18\ For the purposes only of waiving the 30-day operative
delay, the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. 15 U.S.C. 78c(f).
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At any time within 60 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.\19\
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\19\ For purposes of calculating the 60-day period within which
the Commission may summarily abrogate the proposed rule change under
Section 19(b)(3)(C) of the Act, the Commission considers the period
to commence on March 23, 2006, the date on which the Exchange filed
Amendment No. 1. See 15 U.S.C. 78s(b)(3)(C).
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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 rule-comments@sec.gov. Please include
File Number NYSEArca-2006-06 on the subject line.
Paper Comments
Send paper comments in triplicate to Nancy M. Morris,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number NYSEArca-2006-06. 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 Number
NYSEArca-2006-06 and should be submitted on or before April 20, 2006.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\20\
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\20\ 17 CFR 200.30-3(a)(12).
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Nancy M. Morris,
Secretary.
[FR Doc. E6-4612 Filed 3-29-06; 8:45 am]
BILLING CODE 8010-01-P
