Self-Regulatory Organizations; New York Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to a Modification to the Existing Moratorium on the Qualification and Registration of Registered Competitive Market Makers, 16388-16389 [E6-4674]
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Federal Register / Vol. 71, No. 62 / Friday, March 31, 2006 / Notices
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–53549; File No. SR–NYSE–
2006–11]
Self-Regulatory Organizations; New
York Stock Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of
a Proposed Rule Change Relating to a
Modification to the Existing
Moratorium on the Qualification and
Registration of Registered Competitive
Market Makers
March 24, 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 February
24, 2006, 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 ‘‘noncontroversial’’ rule change under
Section 19(b)(3)(A)(iii) of the Act,3 and
Rule 19b–4(f)(6) thereunder,4 which
renders the proposal effective upon
filing with 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
This Exchange is proposing a
modification to the recently
implemented moratorium on the
qualification and registration of new
Registered Competitive Market Makers
(‘‘RCMMs’’) covered in NYSE Rule
107A.5 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.
dsatterwhite on PROD1PC76 with NOTICES
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
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(iii).
4 17 CFR 240.19b–4(f)(6).
5 See Securities Exchange Act Release No. 52648
(October 21, 2005), 70 FR 62155 (October 28, 2005)
(SR–NYSE–2005–63) (the ‘‘Release’’).
2 17
VerDate Aug<31>2005
16:35 Mar 30, 2006
Jkt 208001
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 recently implemented a
moratorium on the qualification and
registration of new Competitive Traders
(‘‘CTs’’) and RCMMs while the
Exchange conducts a study on their
future viability.6 In this filing, the
Exchange seeks to modify the
moratorium in order to permit the
registration of a replacement of a firm’s
existing RCMM, should such employee
cease being an RCMM.
The Exchange noted in the Release
that the moratorium on registrations
would not impact existing RCMMs and
CTs.7 In furtherance of this goal, the
Exchange proposes to allow any firm
that loses a registered RCMM during the
moratorium because such person ceases
being an RCMM, to replace him or her
by registering a new RCMM. Any
RCMM working with a firm continues to
be free to transfer to another firm or to
become independent, but the firm he/
she is leaving will not have the right of
replacing him/her by registering a new
RCMM unless the existing RCMM gives
up his or her registration. Any RCMM
firm will continue to have the choice to
hire an existing RCMM as a
replacement.
As noted in the Release,8 the
Exchange will promptly file for
approval with the Commission any
changes to its rules that the Exchange
determines are warranted upon
completion of its review of the future
viability of CTs and RCMMs. The
review is currently estimated to be
completed on or about June 30, 2006.
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
6 See
supra note 5.
7 Id.
8 See
9 15
PO 00000
id.
U.S.C. 78f(b)(5).
Frm 00109
Fmt 4703
Sfmt 4703
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
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 the proposed rule change, the
Commission may summarily abrogate
such proposed 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:
10 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). 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.
11 17
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16389
Federal Register / Vol. 71, No. 62 / Friday, March 31, 2006 / Notices
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–2006–11 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.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–53548; File No. SR–Phlx–
2005–42]
Self-Regulatory Organizations;
Philadelphia Stock Exchange, Inc.;
Notice of Filing of Proposed Rule
Change and Amendment Nos. 1, 2 and
3 Thereto Relating to Establishment of
a Neutral ‘‘Referee’’
March 24, 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 June 10,
2005, the Philadelphia Stock Exchange,
All submissions should refer to File
Inc. (‘‘Phlx’’ or ‘‘Exchange’’) filed with
Number SR–NYSE–2006–11. This file
the Securities and Exchange
number should be included on the
Commission (‘‘SEC’’ or ‘‘Commission’’)
subject line if e-mail is used. To help the the proposed rule change as described
Commission process and review your
in Items I, II, and III below, which Items
comments more efficiently, please use
have been prepared by the Phlx. On
only one method. The Commission will June 20, 2005, the Phlx filed
post all comments on the Commission’s Amendment No. 1 to the proposed rule
Internet Web site (https://www.sec.gov/
change.3 On February 16, 2006, the Phlx
rules/sro.shtml). Copies of the
filed Amendment No. 2 to the proposed
rule change.4 On March 10, 2006, the
submission, all subsequent
Phlx filed Amendment No. 3 to the
amendments, all written statements
proposed rule change.5 The Commission
with respect to the proposed rule
is publishing this notice to solicit
change that are filed with the
comments on the proposed rule change,
Commission, and all written
as amended, from interested persons.
communications relating to the
proposed rule change between the
I. Self-Regulatory Organization’s
Commission and any person, other than Statement of the Terms of Substance of
those that may be withheld from the
the Proposed Rule Change
public in accordance with the
The Phlx proposes to amend: (1)
provisions of 5 U.S.C. 552, will be
Exchange By-Law Article X, Section 10–
available for inspection and copying in
9, Audit Committee; (2) Exchange Rule
the Commission’s Public Reference
124, Disputes; Exchange Rule 1092,
Room. Copies of the filing also will be
Obvious Errors; (3) Option Floor
available for inspection and copying at
Procedure Advice (‘‘OFPA’’) F–27, Floor
the principal office of the Exchange. All Official Rulings—Options; OFPA G–2,
Trading Rotations, Halts or Reopenings;
comments received will be posted
and (4) Equity Floor Procedure Advice
without change; the Commission does
(‘‘EFPA’’) F–27, Floor Official Rulings—
not edit personal identifying
Equity. The proposal would establish a
information from submissions. You
neutral ‘‘Referee,’’ an Exchange
should submit only information that
you wish to make available publicly. All employee or independent contractor
who would have authority to review
submissions should refer to File
Number SR–NYSE–2006–11 and should and rule on appeals from Floor Official
rulings concerning the nullification and
be submitted on or before April 21,
adjustment of trades, and authorize the
2006.
Referee to make other initial rulings
For the Commission, by the Division of
currently made only by Floor Officials.
dsatterwhite on PROD1PC76 with NOTICES
Market Regulation, pursuant to delegated
authority.12
Nancy M. Morris,
Secretary.
[FR Doc. E6–4674 Filed 3–30–06; 8:45 am]
BILLING CODE 8010–01–P
12 17
CFR 200.30–3(a)(12).
VerDate Aug<31>2005
16:35 Mar 30, 2006
Jkt 208001
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 In Amendment No. 1, the Phlx indicated that the
Exchange’s Board of Governors approved the
proposed amendment to Exchange By-Law Article
X, Section 10–9 for filing with the Commission on
June 15, 2005.
4 Amendment No. 2 superseded and replaced in
their entirety the orginal filing and Amendment No.
1 thereto.
5 In Amendment No. 3, the Phlx made minor
changes to the purpose section and rule text of the
proposed rule change.
2 17
PO 00000
Frm 00110
Fmt 4703
Sfmt 4703
The text of the proposed rule change is
set forth below. [Brackets] indicate
deletions; italics indicate new text.
PHILADELPHIA STOCK EXCHANGE,
INC. BY-LAWS
*
*
*
*
*
Article X
Standing Committees
Sec. 10–1.–10–8. No change.
Audit Committee
Sec. 10–9. (a)–(c) No change.
(d) The Audit Committee shall
recommend for appointment by the
Board of Governors a qualified
Exchange employee or independent
contractor, the Referee, to review Floor
Official rulings concerning the
nullification and/or adjustment of
transactions, and to act in the capacity
of a Floor Official respecting initial
rulings concerning requests for relief
from the requirements of certain
Exchange rules, Equity Floor Procedure
Advices and Option Floor Procedure
Advices. The Audit Committee shall
determine that the Referee has sufficient
expertise in the area of securities
trading to act in the capacity of a Floor
Official respecting initial rulings
concerning requests for relief and to
conduct reviews of Floor Official
rulings, and possesses sufficient
knowledge of Exchange rules and the
relevant sections of the Securities
Exchange Act of 1934, as amended, and
the rules thereunder.
*
*
*
*
*
PHILADELPHIA STOCK EXCHANGE,
INC. RULES OF THE BOARD OF
GOVERNORS
*
*
*
*
*
Disputes
Rule 124. (a) Disputes occurring on
and relating to the trading floor, if not
settled by agreement between the
members interested, shall be settled, if
practicable, by vote of the members
knowing of the transaction in question;
if not so settled, they shall be settled by
a Floor Official [summoned to the
trading crowd] designated by Market
Surveillance to rule on the dispute.
In issuing decisions for the resolution
of trading disputes, Floor Officials [may]
shall institute the course of action
deemed to be most fair to all parties
under the circumstances at the time. A
Floor Official may direct the execution
of an order on the floor, or adjust the
transaction terms or participants to an
executed order on the floor. However,
two Option Floor Officials may nullify
a transaction if they determine the
transaction to have been in violation of
E:\FR\FM\31MRN1.SGM
31MRN1
]]>Agencies
[Federal Register Volume 71, Number 62 (Friday, March 31, 2006)]
[Notices]
[Pages 16388-16389]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-4674]
[[Page 16388]]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-53549; File No. SR-NYSE-2006-11]
Self-Regulatory Organizations; New York Stock Exchange, Inc.;
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change
Relating to a Modification to the Existing Moratorium on the
Qualification and Registration of Registered Competitive Market Makers
March 24, 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 February 24, 2006, 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 Rule 19b-4(f)(6) thereunder,\4\ which renders the proposal
effective upon filing with 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
This Exchange is proposing a modification to the recently
implemented moratorium on the qualification and registration of new
Registered Competitive Market Makers (``RCMMs'') covered in NYSE Rule
107A.\5\ 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.
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 52648 (October 21,
2005), 70 FR 62155 (October 28, 2005) (SR-NYSE-2005-63) (the
``Release'').
---------------------------------------------------------------------------
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 recently implemented a moratorium on the qualification
and registration of new Competitive Traders (``CTs'') and RCMMs while
the Exchange conducts a study on their future viability.\6\ In this
filing, the Exchange seeks to modify the moratorium in order to permit
the registration of a replacement of a firm's existing RCMM, should
such employee cease being an RCMM.
---------------------------------------------------------------------------
\6\ See supra note 5.
---------------------------------------------------------------------------
The Exchange noted in the Release that the moratorium on
registrations would not impact existing RCMMs and CTs.\7\ In
furtherance of this goal, the Exchange proposes to allow any firm that
loses a registered RCMM during the moratorium because such person
ceases being an RCMM, to replace him or her by registering a new RCMM.
Any RCMM working with a firm continues to be free to transfer to
another firm or to become independent, but the firm he/she is leaving
will not have the right of replacing him/her by registering a new RCMM
unless the existing RCMM gives up his or her registration. Any RCMM
firm will continue to have the choice to hire an existing RCMM as a
replacement.
---------------------------------------------------------------------------
\7\ Id.
---------------------------------------------------------------------------
As noted in the Release,\8\ the Exchange will promptly file for
approval with the Commission any changes to its rules that the Exchange
determines are warranted upon completion of its review of the future
viability of CTs and RCMMs. The review is currently estimated to be
completed on or about June 30, 2006.
---------------------------------------------------------------------------
\8\ See id.
---------------------------------------------------------------------------
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\
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 17 CFR 240.19b-4(f)(6). 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.
---------------------------------------------------------------------------
At any time within 60 days of the filing of the proposed rule
change, the Commission may summarily abrogate such proposed 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:
[[Page 16389]]
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-2006-11 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 SR-NYSE-2006-11. 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
SR-NYSE-2006-11 and should be submitted on or before April 21, 2006.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\12\
---------------------------------------------------------------------------
\12\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Nancy M. Morris,
Secretary.
[FR Doc. E6-4674 Filed 3-30-06; 8:45 am]
BILLING CODE 8010-01-P
