Self-Regulatory Organizations; Pacific Exchange, Inc. (n/k/a NYSE Arca, Inc.); Order Granting Approval of Proposed Rule Change Relating to Clearly Erroneous Executions, 19781 [E6-5609]
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Federal Register / Vol. 71, No. 73 / Monday, April 17, 2006 / Notices
Accordingly, the Commission finds
good cause for approving this proposed
rule change prior to the thirtieth day
after the date of publication of notice
thereof in the Federal Register.
Specifically, the Commission believes
that it is consistent with Section 19(b)(2)
of the Act 48 to approve the Exchange’s
proposed rule change prior to the
thirtieth day after publication of the
notice of filing thereof in the Federal
Register.
V. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,49 that the
proposed rule change (File No. SR–
CBOT–2006–01) is approved on an
accelerated basis.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.50
Nancy M. Morris,
Secretary.
[FR Doc. E6–5650 Filed 4–14–06; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–53610; File No. SR–PCX–
2006–12]
Self-Regulatory Organizations; Pacific
Exchange, Inc. (n/k/a NYSE Arca, Inc.);
Order Granting Approval of Proposed
Rule Change Relating to Clearly
Erroneous Executions
April 6, 2006.
On February 23, 2006, the Pacific
Exchange, Inc. (n/k/a NYSE Arca, Inc.)
(‘‘Exchange’’) 1 filed with the Securities
and Exchange Commission
(‘‘Commission’’) a proposed rule change
pursuant to section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),2 and Rule 19b-4 thereunder,3 to
amend PCX Equities, Inc. (n/k/a NYSE
Arca Equities, Inc.) (‘‘NYSE Arca
Equities’’) Rule 7.10(e) pertaining to
clearly erroneous executions of
securities issued in initial public
offerings (‘‘IPOs’’). The proposed rule
change was published for comment in
48 15
U.S.C. 78s(b)(2).
49 Id.
50 17
CFR 200.30–3(a)(12).
March 6, 2006, the Exchange filed with the
Commission a proposed rule change, which was
effective upon filing, to change the name of the
Exchange, as well as several other related entities,
to reflect the recent acquisition of PCX by
Archipelago Holdings, Inc. (‘‘Archipelago’’) and the
merger of NYSE with Archipelago. See File No. SR–
PCX–2006–24. All references herein have been
changed to reflect the aforementioned rule change.
2 15 U.S.C. 78s(b)(1).
3 17 CFR 240.19b–4.
dsatterwhite on PROD1PC76 with NOTICES
1 On
VerDate Aug<31>2005
15:16 Apr 14, 2006
Jkt 208001
the Federal Register on March 3, 2006.4
The Commission received no comments
on the proposal. This order approves the
proposed rule change.
The proposed rule change would
revise the procedures in NYSE Arca
Equities Rule 7.10(e) relating to trade
nullifications (‘‘busts’’) and price
adjustments (‘‘adjusts’’) of the initial
trade of securities issued in IPOs that
are traded on the Archipelago Exchange
(n/k/a NYSE Arca Marketplace) on an
unlisted trading privileges basis.
Currently, initial trades on NYSE Arca
Marketplace of these securities that are
executed at prices of $1.00 or 10%
(whichever is lesser) away from the
primary listing exchange’s opening
price are automatically busted or
adjusted to the opening price of the
security on the primary listing
exchange. Under the proposed rule
change, NYSE Arca Equities staff would
have the discretion to bust or adjust
initial trades in IPO securities that are
executed at $1.00 or 10% (whichever is
lesser) away from the opening price on
the primary listing exchange. The
Exchange states that this discretion is
necessary because the primary listing
exchange often has multiple prices for
an IPO security during the first
moments that the IPO security begins to
trade.
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.5 In particular, the
Commission believes that the proposal
is consistent with section 6(b)(5) of the
Act,6 which requires that the rules of an
exchange be 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 facilitating transactions in securities,
and to remove impediments to and
perfect the mechanism of a free and
open market and a national market
system.
The Commission believes that the
proposed rule change, by granting NYSE
Arca Equities staff the discretion to bust
or adjust initial trades for IPO securities
that are executed at $1.00 or 10%
(whichever is lesser) away from the
primary listed exchange’s opening price,
and thus no longer require NYSE Arca
Equities staff to automatically bust or
adjust such trades, is designed to help
4 See Securities Exchange Act Release No. 53376
(February 27, 2006), 71 FR 11008 (‘‘Notice’’).
5 In approving this proposal, the Commission has
considered its impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
6 15 U.S.C. 78f(b)(5).
PO 00000
Frm 00100
Fmt 4703
Sfmt 4703
19781
ensure that the Exchange’s clearly
erroneous execution rule is exercised in
a fair and reasonable manner. As the
Exchange noted, the primary listing
exchange’s opening price for an IPO
security may not necessarily be
indicative of the actual trading price of
the security, and, thus the Commission
believes that it is fair and reasonable for
NYSE Arca Equities staff to have the
discretion to review all prices at the
time the IPO security first trades on the
primary listing exchange to determine
whether it is appropriate to adjust or
bust the trade at issue.
It is therefore ordered, pursuant to
section 19(b)(2) of the Act,7 that the
proposed rule change (SR–PCX–2006–
12) is approved.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.8
Nancy M. Morris,
Secretary.
[FR Doc. E6–5609 Filed 4–14–06; 8:45 am]
BILLING CODE 8010–01–P
SMALL BUSINESS ADMINISTRATION
[Disaster Declaration # 10442 and # 10443]
Missouri Disaster #MO–00003
U.S. Small Business
Administration.
ACTION: Notice.
AGENCY:
SUMMARY: This is a Notice of the
Presidential declaration of a major
disaster for the State of Missouri
(FEMA–1635–DR), dated 04/05/2006.
Incident: Severe Storms, Tornadoes,
and Flooding.
Incident Period: 03/30/2006 through
04/03/2006.
Effective Date: 04/05/2006.
Physical Loan Application Deadline
Date: 06/05/2006.
Economic Injury (EIDL) Loan
Application Deadline Date: 01/05/2007.
ADDRESSES: Submit completed loan
applications to: U.S. Small Business
Administration, National Processing
and Disbursement Center, 14925
Kingsport Road, Fort Worth, TX 76155.
FOR FURTHER INFORMATION CONTACT: A.
Escobar, Office of Disaster Assistance,
U.S. Small Business Administration,
409 3rd Street, SW., Suite 6050,
Washington, DC 20416.
SUPPLEMENTARY INFORMATION: Notice is
hereby given that as a result of the
President’s major disaster declaration on
04/05/2006, applications for disaster
loans may be filed at the address listed
7 15
8 17
E:\FR\FM\17APN1.SGM
U.S.C. 78s(b)(2).
CFR 200.30–3(a)(12).
17APN1
Agencies
[Federal Register Volume 71, Number 73 (Monday, April 17, 2006)]
[Notices]
[Page 19781]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-5609]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-53610; File No. SR-PCX-2006-12]
Self-Regulatory Organizations; Pacific Exchange, Inc. (n/k/a NYSE
Arca, Inc.); Order Granting Approval of Proposed Rule Change Relating
to Clearly Erroneous Executions
April 6, 2006.
On February 23, 2006, the Pacific Exchange, Inc. (n/k/a NYSE Arca,
Inc.) (``Exchange'') \1\ filed with the Securities and Exchange
Commission (``Commission'') a proposed rule change pursuant to section
19(b)(1) of the Securities Exchange Act of 1934 (``Act''),\2\ and Rule
19b-4 thereunder,\3\ to amend PCX Equities, Inc. (n/k/a NYSE Arca
Equities, Inc.) (``NYSE Arca Equities'') Rule 7.10(e) pertaining to
clearly erroneous executions of securities issued in initial public
offerings (``IPOs''). The proposed rule change was published for
comment in the Federal Register on March 3, 2006.\4\ The Commission
received no comments on the proposal. This order approves the proposed
rule change.
---------------------------------------------------------------------------
\1\ On March 6, 2006, the Exchange filed with the Commission a
proposed rule change, which was effective upon filing, to change the
name of the Exchange, as well as several other related entities, to
reflect the recent acquisition of PCX by Archipelago Holdings, Inc.
(``Archipelago'') and the merger of NYSE with Archipelago. See File
No. SR-PCX-2006-24. All references herein have been changed to
reflect the aforementioned rule change.
\2\ 15 U.S.C. 78s(b)(1).
\3\ 17 CFR 240.19b-4.
\4\ See Securities Exchange Act Release No. 53376 (February 27,
2006), 71 FR 11008 (``Notice'').
---------------------------------------------------------------------------
The proposed rule change would revise the procedures in NYSE Arca
Equities Rule 7.10(e) relating to trade nullifications (``busts'') and
price adjustments (``adjusts'') of the initial trade of securities
issued in IPOs that are traded on the Archipelago Exchange (n/k/a NYSE
Arca Marketplace) on an unlisted trading privileges basis. Currently,
initial trades on NYSE Arca Marketplace of these securities that are
executed at prices of $1.00 or 10% (whichever is lesser) away from the
primary listing exchange's opening price are automatically busted or
adjusted to the opening price of the security on the primary listing
exchange. Under the proposed rule change, NYSE Arca Equities staff
would have the discretion to bust or adjust initial trades in IPO
securities that are executed at $1.00 or 10% (whichever is lesser) away
from the opening price on the primary listing exchange. The Exchange
states that this discretion is necessary because the primary listing
exchange often has multiple prices for an IPO security during the first
moments that the IPO security begins to trade.
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.\5\ In
particular, the Commission believes that the proposal is consistent
with section 6(b)(5) of the Act,\6\ which requires that the rules of an
exchange be 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 facilitating
transactions in securities, and to remove impediments to and perfect
the mechanism of a free and open market and a national market system.
---------------------------------------------------------------------------
\5\ In approving this proposal, the Commission has considered
its impact on efficiency, competition, and capital formation. See 15
U.S.C. 78c(f).
\6\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
The Commission believes that the proposed rule change, by granting
NYSE Arca Equities staff the discretion to bust or adjust initial
trades for IPO securities that are executed at $1.00 or 10% (whichever
is lesser) away from the primary listed exchange's opening price, and
thus no longer require NYSE Arca Equities staff to automatically bust
or adjust such trades, is designed to help ensure that the Exchange's
clearly erroneous execution rule is exercised in a fair and reasonable
manner. As the Exchange noted, the primary listing exchange's opening
price for an IPO security may not necessarily be indicative of the
actual trading price of the security, and, thus the Commission believes
that it is fair and reasonable for NYSE Arca Equities staff to have the
discretion to review all prices at the time the IPO security first
trades on the primary listing exchange to determine whether it is
appropriate to adjust or bust the trade at issue.
It is therefore ordered, pursuant to section 19(b)(2) of the
Act,\7\ that the proposed rule change (SR-PCX-2006-12) is approved.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78s(b)(2).
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\8\
---------------------------------------------------------------------------
\8\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Nancy M. Morris,
Secretary.
[FR Doc. E6-5609 Filed 4-14-06; 8:45 am]
BILLING CODE 8010-01-P