Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Order Granting Accelerated Approval of Proposed Rule Change and Amendment Nos. 1 and 2 Thereto To Establish a Public Disclosure Program, 32622-32626 [E6-8716]
Download as PDF
32622
Federal Register / Vol. 71, No. 108 / Tuesday, June 6, 2006 / Notices
general to protect investors and the
public interest.
• Send paper comments in triplicate
The Commission believes that the
to Nancy M. Morris, Secretary,
proposal to institute the Public
Securities and Exchange Commission,
Disclosure Program, which is
Station Place, 100 F Street, NE.,
substantially based on NASD Rule 8310
Washington, DC 20549–1090.
and IM–8310–2,8 serves the interest of
investor protection because it allows
All submissions should refer to File
NYSE Arca members and the general
Number SR–NYSEArca–2006–03. This
public to promptly learn of final
file number should be included on the
disciplinary decisions involving its
subject line if e-mail is used. To help the
broker-dealer members or associated
Commission process and review your
persons of such members. By notifying
comments more efficiently, please use
the public of a final decision issued by
only one method. The Commission will
the Exchange or any committee of the
post all comments on the Commission’s Exchange that results in the suspension,
Internet Web site (https://www.sec.gov/
cancellation, expulsion, and/or barring
rules/sro.shtml). Copies of the
of an OTP Holder or OTP Firm or the
submission, all subsequent
imposition of monetary sanctions of
amendments, all written statements
$10,000 or more, for example, the
with respect to the proposed rule
Commission believes that the Public
change that are filed with the
Disclosure Program should provide
Commission, and all written
important information to the public,
communications relating to the
create additional incentives for
proposed rule change between the
members of the Exchange to comply
Commission and any person, other than with its rules, and help investors make
those that may be withheld from the
informed choices and decisions about
public in accordance with the
the individuals and firms with whom
provisions of 5 U.S.C. 552, will be
they may wish to conduct business. As
available for inspection and copying in
such, the Commission finds that the
the Commission’s Public Reference
proposed program promotes just and
Room. Copies of such filing also will be equitable principles of trade, encourages
available for inspection and copying at
the prevention of fraudulent and
the principal office of the Exchange. All manipulative acts and practices, and
comments received will be posted
seeks to perfect the mechanism of a free
without change; the Commission does
and open market.
not edit personal identifying
The Commission finds good cause for
approving this proposed rule change, as
information from submissions. You
amended, before the thirtieth day after
should submit only information that
you wish to make available publicly. All the publication of notice thereof in the
Federal Register. As noted earlier,
submissions should refer to File
prompt disclosure of final disciplinary
Number SR–NYSEArca–2006–03 and
decisions serves the interest of
should be submitted on or before June
protecting investors and the general
27, 2006.
public.9 Therefore, accelerating
IV. Commission’s Findings and Order
approval of the proposed rule change
Granting Accelerated Approval of
should benefit investors because they
Proposed Rule Change
will have access to the NYSE Arca
disciplinary information sooner. The
The Commission finds that the
Public Disclosure Program should foster
proposed rule change, as amended, is
compliance with NYSE Arca rules,
consistent with the requirements of the
heighten awareness of the public
Act and the rules and regulations
investor with respect to the conduct of
thereunder applicable to a national
business on the Exchange, and, in
securities exchange.6 In particular, the
general, improve the overall integrity of
Commission finds that the proposed
the market center.
rule change is consistent with section
7 which requires that
V. Conclusion
6(b)(5) of the Act,
an exchange have rules designed, among
It is therefore ordered, pursuant to
other things, to promote just and
section 19(b)(2) of the Act, that the
equitable principles of trade, to remove
proposed rule change (SR–NYSEArca–
impediments to and perfect the
2006–03), as amended, is hereby
mechanism of a free and open market
approved on an accelerated basis.10
and a national market system, and in
sroberts on PROD1PC70 with NOTICES
Paper Comments
8 See
6 In
approving this proposed rule change, the
Commission has considered the proposed rule’s
impact on efficiency, competition, and capital
formation. See 15 U.S.C. 78c(f).
7 15 U.S.C. 78f(b)(5).
VerDate Aug<31>2005
17:06 Jun 05, 2006
Jkt 208001
Securities Exchange Act Release No. 35138
(December 22, 1994), 59 FR 67362 (December 29,
1994) (approving the NASD program to publish
final disciplinary decisions involving its members).
9 See id.
10 15 U.S.C. 78s(b)(2).
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Fmt 4703
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For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.11
Nancy M. Morris,
Secretary.
[FR Doc. E6–8700 Filed 6–5–06; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–53878; File No. SR–
NYSEArca–2006–02]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and Order
Granting Accelerated Approval of
Proposed Rule Change and
Amendment Nos. 1 and 2 Thereto To
Establish a Public Disclosure Program
May 26, 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 April 6,
2006, NYSE Arca, Inc. (‘‘NYSE Arca’’ or
‘‘Exchange’’), through its subsidiary,
NYSE Arca Equities, Inc. (‘‘NYSE Arca
Equities’’), 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 May 9, 2006, NYSE Arca filed
Amendment No. 1 to the proposed rule
change. On May 17, 2006, NYSE Arca
filed Amendment No. 2 to the proposed
rule change. The Commission is
publishing this notice to solicit
comments on the proposed rule change,
as amended, from interested persons
and is approving the proposal on an
accelerated basis.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
NYSE Arca, through its subsidiary,
NYSE Arca Equities, proposes to
implement a new rule, NYSE Arca
Equities Rule 10.15, that would institute
and govern a program (‘‘Public
Disclosure Program’’) in which certain
disciplinary actions involving Equity
Trading Permit Holders (‘‘ETP Holders’’)
and associated persons thereof would be
publicized. The text of the proposed
rule change is below. Proposed new
language is in italics.
NYSE Arca Equities Rules
*
*
*
11 17
*
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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*
Federal Register / Vol. 71, No. 108 / Tuesday, June 6, 2006 / Notices
RULE 10 DISCIPLINARY
PROCEEDINGS, OTHER HEARINGS,
AND APPEALS
*
*
*
*
*
sroberts on PROD1PC70 with NOTICES
Release of Disciplinary Information
Through the Public Disclosure Program
Rule 10.15(a) The Corporation shall,
in response to a request, release a copy
of any identified disciplinary decision
issued by the Corporation or any
Committee thereof; provided, however,
that each copy of:
(1) a decision that is released prior to
the expiration of the time period
provided under NYSE Arca Equities
Rule 10.8 for appeal or while such an
appeal is pending shall be accompanied
by a statement that the findings and
sanctions imposed in the decision may
be increased, decreased, modified, or
reversed by the Corporation;
(2) a final decision of the Corporation
that is released prior to the time period
provided under the Securities Exchange
Act of 1934 for appeal to the Securities
and Exchange Commission or while
such an appeal is pending shall be
accompanied by a statement that the
findings and sanctions of the
Corporation are subject to review and
modification by the Securities and
Exchange Commission; and
(3) a final decision of the Corporation
that is released after the decision is
appealed to the Securities and
Exchange Commission shall be
accompanied by a statement as to
whether the effectiveness of the
sanctions has been stayed pending the
outcome of proceedings before the
Securities and Exchange Commission.
(b)(1) The Corporation shall release to
the public information with respect to
any disciplinary decision issued
pursuant to NYSE Arca Equities Rule 10
imposing: (i) a suspension, cancellation
or expulsion upon an ETP Holder; or (ii)
suspension or revocation of the
registration of an associated person of
an ETP Holder; or (iii) suspension or
barring of an ETP Holder or associated
person from association with all ETP
Holders; or (iv) imposition of monetary
sanctions of $10,000 or more upon an
ETP Holder or associated person; or (v)
containing an allegation of a violation
of a Designated Rule; and may also
release to the public such information
with respect to any disciplinary decision
or group of decisions that involve a
significant policy or enforcement
determination where the release of
information is deemed by the President
of the Corporation to be in the public
interest. The Corporation may, in its
discretion, determine to waive the
requirement to release information with
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17:06 Jun 05, 2006
Jkt 208001
respect to a disciplinary decision under
those extraordinary circumstances
where the release of such information
would violate fundamental notions of
fairness or work as an injustice. The
Corporation may release to the public
information on any disciplinary or other
decision issued pursuant to NYSE Arca
Equities Rule 10 not specifically
enumerated in this paragraph,
regardless of sanctions imposed, so long
as the names of the parties and other
identifying information is redacted.
A ‘‘Designated Rule’’ means (i) SEC
Rule 10b–5, (ii) NYSE Arca Equities
Rule 6.5, or (iii) NYSE Arca Equities
Rule 6.2.
(A) The Corporation shall release to
the public, in unredacted form,
information with respect to any
disciplinary decision issued pursuant to
NYSE Arca Equities Rule 10.8 that does
not meet one or more of the criteria in
section (b)(1) for the release of
information to the public, provided that
the underlying decision issued pursuant
to NYSE Arca Equities Rule 10.7 meets
one or more of the criteria in section
(b)(1) for the release of information to
the public, and information regarding
such decision has been released to the
public in unredacted form.
(B) In the event there is more than one
respondent in a disciplinary decision
issued pursuant to NYSE Arca Equities
Rule 10 and sanctions imposed on one
or more, but not all, of the respondents
meets one or more of the criteria in
section (b)(1) for the release of
information to the public, the
Corporation shall release to the public,
in unredacted form, information with
respect to the respondent(s) who meet
such criteria, and may release to the
public, in redacted form, information
with respect to the respondent(s) who do
not meet such criteria. Notwithstanding
the foregoing, the Corporation shall
release to the public, in unredacted
form, information with respect to any
respondent in a disciplinary decision
issued pursuant to NYSE Arca Equities
Rule 10.8 if the sanctions imposed on
such respondent in the underlying
decision issued pursuant to NYSE Arca
Equities Rule 10.7 meet one or more of
the criteria for release of information to
the public, and information with respect
to that respondent has been released in
unredacted form.
(2) Information released to the public
pursuant to subparagraph (b)(1) shall be
accompanied by a statement to the
extent required for that type of
information under subparagraphs
(a)(1)–(3).
(c) Information regarding any
sanctions imposed pursuant to NYSE
Arca Equities Rule 10.6 shall be
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32623
released to the public pursuant to
paragraph (b) immediately upon such
approval.
(d) If a decision of the Corporation
imposing monetary sanctions of $10,000
or more or a penalty of expulsion,
revocation, suspension and/or barring of
an ETP Holder from being associated
with all ETP Holders is appealed to the
Securities and Exchange Commission,
notice thereof shall be given to all ETP
Holders and to the press as soon as
possible after receipt by the Corporation
of notice from the Securities and
Exchange Commission of such appeal
and the Corporation’s notice shall state
whether the effectiveness of the
Corporation’s decision has been stayed
pending the outcome of proceedings
before the Securities and Exchange
Commission.
(e) In the event an appeal to the
federal courts is filed from a decision by
the Securities and Exchange
Commission in a case previously
appealed to it from a decision of the
Corporation, involving the imposition of
monetary sanctions of $10,000 or more
or a penalty of expulsion, revocation,
suspension and/or barring of an ETP
Holder from being associated with all
ETP Holders, notice thereof shall be
given to the ETP Holders as soon as
possible after receipt by the Corporation
of a formal notice of appeal. Such
notice shall include a statement whether
the order of the Securities and Exchange
Commission has been stayed.
(f) Any order issued by the Securities
and Exchange Commission of (i)
revocation or suspension of an ETP
Holder’s broker/dealer registration with
the Securities and Exchange
Commission; or (ii) the suspension or
expulsion of an ETP Holder from the
Corporation; or (iii) the suspension or
barring of an ETP Holder or an
associated person from association with
all broker/dealers or ETP Holders; or (iv)
the imposition of monetary sanctions of
$10,000 or more shall be released to the
public through a notice containing the
effective date thereof sent as soon as
possible after receipt by the Corporation
of the order of the Securities and
Exchange Commission.
(g) Cancellations of Equity Trading
Permits or registration pursuant to the
Corporation’s Rules and interpretative
material shall be released to the public
as soon after the effective date of the
cancellation as possible.
(h) Releases to the public referred to
in paragraph (b) above shall identify the
Corporation’s Rule(s) or the SEC Rule(s)
violated, and shall describe the conduct
constituting such violation. Releases
may also identify the ETP Holder with
which an individual was associated at
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06JNN1
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Federal Register / Vol. 71, No. 108 / Tuesday, June 6, 2006 / Notices
the time the violations occurred if such
identification is determined by the
Corporation to be in the public interest.
*
*
*
*
*
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
NYSE Arca 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 III below,
and is set forth in Sections A, B, and C
below.
sroberts on PROD1PC70 with NOTICES
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
Under the proposed Public Disclosure
Program, NYSE Arca Equities would
release to the public certain information
concerning the disciplinary history of
ETP Holders and associated persons.
NYSE Arca Equities is instituting such
procedures in order to provide investors
with information regarding final
disciplinary decisions related to ETP
Holders and associated persons. The
primary purpose of the Public
Disclosure Program is to help investors
make informed choices about the
individuals and firms with whom they
may wish to do business. Currently,
NYSE Arca Equities does not have rules
related to the release of disciplinary
decisions to members of the public.
Proposed NYSE Arca Equities Rule
10.15 would allow NYSE Arca Equities
to release such information upon
request and when certain other
circumstances exist, as explained in
greater detail below.
Disciplinary Decisions. If a member of
the public requests a copy of an
identified disciplinary decision issued
by NYSE Arca Equities or any
committee thereof, a copy of the
decision will be provided to the
requesting member of the public. NYSE
Arca Equities’ practice will be to
provide such information on a per-ETP
Holder or associated person basis. NYSE
Arca Equities will not charge the public
for this service.
NYSE Arca Equities will also release
information to the public with respect to
disciplinary decisions that: (i) Impose a
suspension, cancellation, or expulsion
of an ETP Holder; (ii) impose the
suspension or revocation of the
registration of an associated person of
an ETP Holder; (iii) impose the
suspension or barring of an ETP Holder
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17:06 Jun 05, 2006
Jkt 208001
or associated person from association
with all ETP Holders; (iv) impose
monetary sanctions of $10,000 or more
upon an ETP Holder or associated
person; or (v) contain an allegation of a
violation of a Designated Rule.3 NYSE
Arca Equities will release unredacted
information concerning decisions issued
by the Board Appeals Committee that do
not meet one or more of the criteria in
proposed NYSE Arca Equities Rule
10.15(b)(1), provided that the
underlying decision meets one or more
of the criteria in proposed NYSE Arca
Equities Rule 10.15(b)(1), and the
information regarding the underlying
decision was released to the public in
unredacted form.
In the event that there is more than
one respondent in a disciplinary
decision and sanctions are imposed on
one or more of the respondents, but not
all of the respondents meet one or more
of the criteria in proposed NYSE Arca
Equities Rule 10.15(b)(1) for the release
of information, NYSE Arca Equities will
release to the public unredacted
information with respect to the
respondents who meet such criteria. In
addition, NYSE Arca Equities may
release redacted information to the
public with respect to the respondents
who do not meet the criteria in
proposed NYSE Arca Equities Rule
10.15(b)(1).
NYSE Arca Equities may release
information to the public concerning
disciplinary decisions that involve
significant policy or enforcement
determinations where the release of
such information is deemed by the
President of NYSE Arca Equities to be
in the public interest. In addition, NYSE
Arca Equities may exercise its discretion
and waive the requirement to release
information with respect to a
disciplinary decision under
extraordinary circumstances where the
release of the information would violate
fundamental notions of fairness or work
as an injustice. Finally, NYSE Arca
Equities may release public information
concerning any disciplinary or other
decision issued pursuant to NYSE Arca
Equities Rule 10 that is not specifically
enumerated in proposed NYSE Arca
Equities Rule 10.15(b)(1), regardless of
the sanctions imposed, so long as the
names of the parties and other
identifying information are redacted.
Notices. Decisions that are released to
a member of the public must include
certain notices. Decisions that are
released prior to the period in which a
3 A ‘‘Designated Rule’’ means (i) Commission
Rule 10b–5 under the Act, (ii) NYSE Arca Equities
Rule 6.5 (Manipulation), or (iii) NYSE Arca Equities
Rule 6.2 (Prohibited Acts). See proposed NYSE
Arca Equities Rule 10.15(b)(1).
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Frm 00121
Fmt 4703
Sfmt 4703
respondent may request an appeal
pursuant to NYSE Arca Equities Rule
10.8 (Review) or while an appeal is
pending must include a statement that
the findings and sanctions imposed in
the decision may be increased,
decreased, modified, or reversed by
NYSE Arca Equities. In addition, a final
decision by NYSE Arca Equities that is
released prior to the period in which a
respondent may appeal to the
Commission or while such appeal is
pending will include a statement that
the findings and sanctions of NYSE
Arca Equities are subject to review and
modification by the Commission. Lastly,
a final decision of NYSE Arca Equities
that is released after the decision is
appealed to the Commission will
include a statement as to whether the
effectiveness of the sanctions has been
stayed pending the outcome of
proceedings before the Commission.
Appeals. In the instance that NYSE
Arca Equities’ decisions are appealed to
the Commission or the federal courts,
NYSE Arca Equities will notify all ETP
Holders and the press. This includes all
NYSE Arca Equities decisions imposing
monetary sanctions of $10,000 or more
or a penalty of expulsion, revocation,
suspension, and/or barring of an ETP
Holder from being associated with all
ETP Holders.
Commission Orders. NYSE Arca
Equities will release through a notice to
the public information with respect to
any order issued by the Commission: (i)
Revoking or suspending an ETP
Holder’s broker-dealer registration; (ii)
suspending or expelling an ETP Holder
from NYSE Arca Equities; (iii)
suspending or barring an ETP Holder or
an associated person from associating
with all broker-dealers or ETP Holders;
or (iv) imposing monetary sanctions of
$10,000 or more.
Offers of Settlement. NYSE Arca
Equities will release information
regarding sanctions imposed pursuant
to NYSE Arca Equities Rule 10.6 (Offers
of Settlement) upon the approval of
offers of settlement.
Cancellation of Equity Trading
Permits. In cases where NYSE Arca
Equities cancels an Equity Trading
Permit or registration, NYSE Arca
Equities will notify the public as soon
after the effective date of the
cancellation as possible.
While proposed NYSE Arca Equities
Rule 10.15 is based substantially on
NASD Rule 8310 (Sanctions for
Violation of the Rules) and IM–8310–2
(Release of Disciplinary and Other
Information Through the Public
Disclosure Program), it does not
incorporate all aspects of such NASD
Rule. For example, proposed NYSE Arca
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Federal Register / Vol. 71, No. 108 / Tuesday, June 6, 2006 / Notices
Equities Rule 10.15 excludes public
disclosure of disciplinary complaints
and arbitrations. NYSE Arca Equities’s
intention is for public disclosure not to
apply to disciplinary complaints that
involve undecided issues or arbitrations
between parties. NYSE Arca Equities
plans to notify ETP Holders and
associated persons of the effectiveness
of this proposed rule change through
NYSE Arca Equities’ Internet Web site
and a regulatory bulletin.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act 4 in general, and
furthers the objectives of Section
6(b)(5) 5 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 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
No written comments were solicited
or received with respect to the proposed
rule change.
III. 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:
sroberts on PROD1PC70 with 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–NYSEArca–2006–02 on the
subject line.
4 15
5 15
U.S.C. 78s(b).
U.S.C. 78s(b)(5).
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17:06 Jun 05, 2006
Jkt 208001
32625
Paper Comments
general to protect investors and the
public interest.
• Send paper comments in triplicate
The Commission believes that the
to Nancy M. Morris, Secretary,
proposal to institute the Public
Securities and Exchange Commission,
Disclosure Program, which is
Station Place, 100 F Street, NE.,
substantially based on NASD Rule 8310
Washington, DC 20549–1090.
and IM–8310–2,8 serves the interest of
All submissions should refer to File
investor protection because it allows
Number SR–NYSEArca–2006–02. This
NYSE Arca Equities members and the
file number should be included on the
general public to promptly learn of final
subject line if e-mail is used. To help the disciplinary decisions involving its
Commission process and review your
broker-dealer members or associated
comments more efficiently, please use
persons of such members. By notifying
only one method. The Commission will the public of a final decision issued by
post all comments on the Commission’s the Exchange or any committee of the
Internet Web site (https://www.sec.gov/
Exchange that results in the suspension,
rules/sro.shtml). Copies of the
cancellation, expulsion, and/or barring
submission, all subsequent
of an ETP Holder or the imposition of
amendments, all written statements
monetary sanctions of $10,000 or more,
with respect to the proposed rule
for example, the Commission believes
change that are filed with the
that the Public Disclosure Program
Commission, and all written
should provide important information
communications relating to the
to the public, create additional
proposed rule change between the
incentives for members of the Exchange
Commission and any person, other than to comply with its rules, and help
those that may be withheld from the
investors make informed choices and
public in accordance with the
decisions about the individuals and
provisions of 5 U.S.C. 552, will be
firms with whom they may wish to
available for inspection and copying in
conduct business. As such, the
the Commission’s Public Reference
Commission finds that the proposed
Room. Copies of such filing also will be program promotes just and equitable
available for inspection and copying at
principles of trade, encourages the
the principal office of the Exchange. All prevention of fraudulent and
comments received will be posted
manipulative acts and practices, and
without change; the Commission does
seeks to perfect the mechanism of a free
not edit personal identifying
and open market.
information from submissions. You
The Commission finds good cause for
should submit only information that
you wish to make available publicly. All approving this proposed rule change, as
amended, before the thirtieth day after
submissions should refer to File
the publication of notice thereof in the
Number SR–NYSEArca–2006–02 and
Federal Register. As noted earlier,
should be submitted on or before June
prompt disclosure of final disciplinary
27, 2006.
decisions serves the interest of
IV. Commission’s Findings and Order
protecting investors and the general
Granting Accelerated Approval of
public.9 Therefore, accelerating
Proposed Rule Change
approval of the proposed rule change
should benefit investors because they
The Commission finds that the
will have access to the NYSE Arca
proposed rule change, as amended, is
Equities disciplinary information
consistent with the requirements of the
sooner. The Public Disclosure Program
Act and the rules and regulations
should foster compliance with NYSE
thereunder applicable to a national
Arca Equities rules, heighten awareness
securities exchange.6 In particular, the
of the public investor with respect to the
Commission finds that the proposed
conduct of business on the Exchange,
rule change is consistent with Section
and, in general, improve the overall
7 which requires that
6(b)(5) of the Act,
an exchange have rules designed, among integrity of the market center.
other things, to promote just and
V. Conclusion
equitable principles of trade, to remove
It is therefore ordered, pursuant to
impediments to and perfect the
Section 19(b)(2) of the Act, that the
mechanism of a free and open market
proposed rule change (SR–NYSEArca–
and a national market system, and in
6 In approving this proposed rule change, the
Commission has considered the proposed rule’s
impact on efficiency, competition, and capital
formation. See 15 U.S.C. 78c(f).
7 15 U.S.C. 78f(b)(5).
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Frm 00122
Fmt 4703
Sfmt 4703
8 See Securities Exchange Act Release No. 35138
(December 22, 1994), 59 FR 67362 (December 29,
1994) (approving the NASD program to publish
final disciplinary decisions involving its members).
9 See id.
E:\FR\FM\06JNN1.SGM
06JNN1
32626
Federal Register / Vol. 71, No. 108 / Tuesday, June 6, 2006 / Notices
2006–02), as amended, is hereby
approved on an accelerated basis.10
Percent
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.11
Nancy M. Morris,
Secretary.
[FR Doc. E6–8716 Filed 6–5–06; 8:45 am]
BILLING CODE 8010–01–P
SMALL BUSINESS ADMINISTRATION
[Disaster Declaration #10480 and #10479]
Maine Disaster #ME–00004
U.S. Small Business
Administration.
ACTION: Notice.
AGENCY:
sroberts on PROD1PC70 with NOTICES
SUMMARY: This is a Notice of the
Presidential declaration of a major
disaster for the State of Maine (FEMA–
1644–DR), dated May 25, 2006.
Incident: Severe Storms and Flooding.
Incident Period: May 13, 2006 and
continuing.
Effective Date: May 25, 2006.
Physical Loan Application Deadline
Date: July 24, 2006.
Economic Injury (EIDL) Loan
Application Deadline Date: February 26,
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
May 25, 2006, applications for disaster
loans may be filed at the address listed
above or other locally announced
locations.
The following areas have been
determined to be adversely affected by
the disaster:
Primary Counties (Physical Damage and
Economic Injury Loans):
York.
Contiguous Counties (Economic Injury
Loans Only):
Maine, Cumberland, Oxford
New Hampshire, Carroll,
Rockingham, and Strafford.
The Interest Rates are:
Percent
For Physical Damage:
10 15
11 17
U.S.C. 78s(b)(2).
CFR 200.30–3(a)(12).
VerDate Aug<31>2005
17:06 Jun 05, 2006
Jkt 208001
Homeowners with Credit Available Elsewhere ......................
Homeowners without Credit
Available Elsewhere ..............
Businesses with Credit Available Elsewhere ......................
Businesses and Non-Profit Organizations without Credit
Available Elsewhere ..............
Other (Including Non-Profit Organizations) with Credit Available Elsewhere ......................
For Economic Injury:
Businesses & Small Agricultural
Cooperatives without Credit
Available Elsewhere ..............
5.875
2.937
7.763
4.000
5.000
Percent
4.000
The number assigned to this disaster
for physical damage is 104806 and for
economic injury is 104790.
(Catalog of Federal Domestic Assistance
Numbers 59002 and 59008)
Herbert L. Mitchell,
Associate Administrator for Disaster
Assistance.
[FR Doc. E6–8693 Filed 6–5–06; 8:45 am]
BILLING CODE 8025–01–P
SMALL BUSINESS ADMINISTRATION
[Disaster Declaration #10482 and #10481]
Massachusetts Disaster #MA–00006
Small Business Administration.
ACTION: Notice.
AGENCY:
SUMMARY: This is a Notice of the
Presidential declaration of a major
disaster for the Commonwealth of
Masschusetts (FEMA–1642–DR), dated
05/25/2006.
Incident: Severe Storms and Flooding.
Incident Period: 05/12/2006 and
continuing.
Effective Date: 05/25/2006.
Physical Loan Application Deadline
Date: 07/24/2006.
Economic Injury (EIDL) Loan
Application Deadline Date: 02/26/2007.
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
05/25/2006, applications for disaster
loans may be filed at the address listed
above or other locally announced
locations.
PO 00000
Frm 00123
Fmt 4703
Sfmt 4703
The following areas have been
determined to be adversely affected by
the disaster:
Primary Counties (Physical Damage and
Economic Injury Loans):
Essex, Middlesex, Suffolk.
Contiguous Counties (Economic Injury
Loans Only):
Massachusetts: Norfolk, Worcester.
New Hampshire: Hillsborough,
Rockingham.
The Interest Rates are:
For Physical Damage:
Homeowners with Credit Available Elsewhere ......................
Homeowners without Credit
Available Elsewhere ..............
Businesses with Credit Available Elsewhere ......................
Businesses and Non-Profit Organizations without Credit
Available Elsewhere ..............
Other (Including Non-Profit Organizations) with Credit Available Elsewhere ......................
For Economic Injury:
Businesses & Small Agricultural
Cooperatives without Credit
Available Elsewhere ..............
5.875
2.937
7.763
4.000
5.000
4.000
The number assigned to this disaster
for physical damage is 104826 and for
economic injury is 104810.
(Catalog of Federal Domestic Assistance
Numbers 59002 and 59008)
Herbert L. Mitchell,
Associate Administrator for Disaster
Assistance.
[FR Doc. E6–8686 Filed 6–5–06; 8:45 am]
BILLING CODE 8025–01–P
SMALL BUSINESS ADMINISTRATION
[Disaster Declaration #10478 and #10477]
New Hampshire Disaster # NH–00002
Small Business Administration.
Notice.
AGENCY:
ACTION:
SUMMARY: This is a Notice of the
Presidential declaration of a major
disaster for the State of New Hampshire
(FEMA–1643–DR), dated 05/25/2006.
Incident: Severe Storms and Flooding.
Incident Period: 05/12/2006 and
continuing.
Effective Date: 05/25/2006.
Physical Loan Application Deadline
Date: 07/24/2006.
Economic Injury (EIDL) Loan
Application Deadline Date: 02/26/2007.
ADDRESSES: Submit completed loan
applications to: U.S. Small Business
Administration, National Processing
and Disbursement Center, 14925
Kingsport Road, Fort Worth, TX 76155.
E:\FR\FM\06JNN1.SGM
06JNN1
Agencies
[Federal Register Volume 71, Number 108 (Tuesday, June 6, 2006)]
[Notices]
[Pages 32622-32626]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-8716]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-53878; File No. SR-NYSEArca-2006-02]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Order Granting Accelerated Approval of Proposed Rule Change and
Amendment Nos. 1 and 2 Thereto To Establish a Public Disclosure Program
May 26, 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 April 6, 2006, NYSE Arca, Inc. (``NYSE Arca'' or ``Exchange''),
through its subsidiary, NYSE Arca Equities, Inc. (``NYSE Arca
Equities''), 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 May 9,
2006, NYSE Arca filed Amendment No. 1 to the proposed rule change. On
May 17, 2006, NYSE Arca filed Amendment No. 2 to the proposed rule
change. The Commission is publishing this notice to solicit comments on
the proposed rule change, as amended, from interested persons and is
approving the proposal on an accelerated basis.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
NYSE Arca, through its subsidiary, NYSE Arca Equities, proposes to
implement a new rule, NYSE Arca Equities Rule 10.15, that would
institute and govern a program (``Public Disclosure Program'') in which
certain disciplinary actions involving Equity Trading Permit Holders
(``ETP Holders'') and associated persons thereof would be publicized.
The text of the proposed rule change is below. Proposed new language is
in italics.
NYSE Arca Equities Rules
* * * * *
[[Page 32623]]
RULE 10 DISCIPLINARY PROCEEDINGS, OTHER HEARINGS, AND APPEALS
* * * * *
Release of Disciplinary Information Through the Public Disclosure
Program
Rule 10.15(a) The Corporation shall, in response to a request,
release a copy of any identified disciplinary decision issued by the
Corporation or any Committee thereof; provided, however, that each copy
of:
(1) a decision that is released prior to the expiration of the time
period provided under NYSE Arca Equities Rule 10.8 for appeal or while
such an appeal is pending shall be accompanied by a statement that the
findings and sanctions imposed in the decision may be increased,
decreased, modified, or reversed by the Corporation;
(2) a final decision of the Corporation that is released prior to
the time period provided under the Securities Exchange Act of 1934 for
appeal to the Securities and Exchange Commission or while such an
appeal is pending shall be accompanied by a statement that the findings
and sanctions of the Corporation are subject to review and modification
by the Securities and Exchange Commission; and
(3) a final decision of the Corporation that is released after the
decision is appealed to the Securities and Exchange Commission shall be
accompanied by a statement as to whether the effectiveness of the
sanctions has been stayed pending the outcome of proceedings before the
Securities and Exchange Commission.
(b)(1) The Corporation shall release to the public information with
respect to any disciplinary decision issued pursuant to NYSE Arca
Equities Rule 10 imposing: (i) a suspension, cancellation or expulsion
upon an ETP Holder; or (ii) suspension or revocation of the
registration of an associated person of an ETP Holder; or (iii)
suspension or barring of an ETP Holder or associated person from
association with all ETP Holders; or (iv) imposition of monetary
sanctions of $10,000 or more upon an ETP Holder or associated person;
or (v) containing an allegation of a violation of a Designated Rule;
and may also release to the public such information with respect to any
disciplinary decision or group of decisions that involve a significant
policy or enforcement determination where the release of information is
deemed by the President of the Corporation to be in the public
interest. The Corporation may, in its discretion, determine to waive
the requirement to release information with respect to a disciplinary
decision under those extraordinary circumstances where the release of
such information would violate fundamental notions of fairness or work
as an injustice. The Corporation may release to the public information
on any disciplinary or other decision issued pursuant to NYSE Arca
Equities Rule 10 not specifically enumerated in this paragraph,
regardless of sanctions imposed, so long as the names of the parties
and other identifying information is redacted.
A ``Designated Rule'' means (i) SEC Rule 10b-5, (ii) NYSE Arca
Equities Rule 6.5, or (iii) NYSE Arca Equities Rule 6.2.
(A) The Corporation shall release to the public, in unredacted
form, information with respect to any disciplinary decision issued
pursuant to NYSE Arca Equities Rule 10.8 that does not meet one or more
of the criteria in section (b)(1) for the release of information to the
public, provided that the underlying decision issued pursuant to NYSE
Arca Equities Rule 10.7 meets one or more of the criteria in section
(b)(1) for the release of information to the public, and information
regarding such decision has been released to the public in unredacted
form.
(B) In the event there is more than one respondent in a
disciplinary decision issued pursuant to NYSE Arca Equities Rule 10 and
sanctions imposed on one or more, but not all, of the respondents meets
one or more of the criteria in section (b)(1) for the release of
information to the public, the Corporation shall release to the public,
in unredacted form, information with respect to the respondent(s) who
meet such criteria, and may release to the public, in redacted form,
information with respect to the respondent(s) who do not meet such
criteria. Notwithstanding the foregoing, the Corporation shall release
to the public, in unredacted form, information with respect to any
respondent in a disciplinary decision issued pursuant to NYSE Arca
Equities Rule 10.8 if the sanctions imposed on such respondent in the
underlying decision issued pursuant to NYSE Arca Equities Rule 10.7
meet one or more of the criteria for release of information to the
public, and information with respect to that respondent has been
released in unredacted form.
(2) Information released to the public pursuant to subparagraph
(b)(1) shall be accompanied by a statement to the extent required for
that type of information under subparagraphs (a)(1)-(3).
(c) Information regarding any sanctions imposed pursuant to NYSE
Arca Equities Rule 10.6 shall be released to the public pursuant to
paragraph (b) immediately upon such approval.
(d) If a decision of the Corporation imposing monetary sanctions of
$10,000 or more or a penalty of expulsion, revocation, suspension and/
or barring of an ETP Holder from being associated with all ETP Holders
is appealed to the Securities and Exchange Commission, notice thereof
shall be given to all ETP Holders and to the press as soon as possible
after receipt by the Corporation of notice from the Securities and
Exchange Commission of such appeal and the Corporation's notice shall
state whether the effectiveness of the Corporation's decision has been
stayed pending the outcome of proceedings before the Securities and
Exchange Commission.
(e) In the event an appeal to the federal courts is filed from a
decision by the Securities and Exchange Commission in a case previously
appealed to it from a decision of the Corporation, involving the
imposition of monetary sanctions of $10,000 or more or a penalty of
expulsion, revocation, suspension and/or barring of an ETP Holder from
being associated with all ETP Holders, notice thereof shall be given to
the ETP Holders as soon as possible after receipt by the Corporation of
a formal notice of appeal. Such notice shall include a statement
whether the order of the Securities and Exchange Commission has been
stayed.
(f) Any order issued by the Securities and Exchange Commission of
(i) revocation or suspension of an ETP Holder's broker/dealer
registration with the Securities and Exchange Commission; or (ii) the
suspension or expulsion of an ETP Holder from the Corporation; or (iii)
the suspension or barring of an ETP Holder or an associated person from
association with all broker/dealers or ETP Holders; or (iv) the
imposition of monetary sanctions of $10,000 or more shall be released
to the public through a notice containing the effective date thereof
sent as soon as possible after receipt by the Corporation of the order
of the Securities and Exchange Commission.
(g) Cancellations of Equity Trading Permits or registration
pursuant to the Corporation's Rules and interpretative material shall
be released to the public as soon after the effective date of the
cancellation as possible.
(h) Releases to the public referred to in paragraph (b) above shall
identify the Corporation's Rule(s) or the SEC Rule(s) violated, and
shall describe the conduct constituting such violation. Releases may
also identify the ETP Holder with which an individual was associated at
[[Page 32624]]
the time the violations occurred if such identification is determined
by the Corporation to be in the public interest.
* * * * *
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, NYSE Arca 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 III below, and is set forth in Sections A, B, and C below.
A. Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule Change
1. Purpose
Under the proposed Public Disclosure Program, NYSE Arca Equities
would release to the public certain information concerning the
disciplinary history of ETP Holders and associated persons. NYSE Arca
Equities is instituting such procedures in order to provide investors
with information regarding final disciplinary decisions related to ETP
Holders and associated persons. The primary purpose of the Public
Disclosure Program is to help investors make informed choices about the
individuals and firms with whom they may wish to do business.
Currently, NYSE Arca Equities does not have rules related to the
release of disciplinary decisions to members of the public. Proposed
NYSE Arca Equities Rule 10.15 would allow NYSE Arca Equities to release
such information upon request and when certain other circumstances
exist, as explained in greater detail below.
Disciplinary Decisions. If a member of the public requests a copy
of an identified disciplinary decision issued by NYSE Arca Equities or
any committee thereof, a copy of the decision will be provided to the
requesting member of the public. NYSE Arca Equities' practice will be
to provide such information on a per-ETP Holder or associated person
basis. NYSE Arca Equities will not charge the public for this service.
NYSE Arca Equities will also release information to the public with
respect to disciplinary decisions that: (i) Impose a suspension,
cancellation, or expulsion of an ETP Holder; (ii) impose the suspension
or revocation of the registration of an associated person of an ETP
Holder; (iii) impose the suspension or barring of an ETP Holder or
associated person from association with all ETP Holders; (iv) impose
monetary sanctions of $10,000 or more upon an ETP Holder or associated
person; or (v) contain an allegation of a violation of a Designated
Rule.\3\ NYSE Arca Equities will release unredacted information
concerning decisions issued by the Board Appeals Committee that do not
meet one or more of the criteria in proposed NYSE Arca Equities Rule
10.15(b)(1), provided that the underlying decision meets one or more of
the criteria in proposed NYSE Arca Equities Rule 10.15(b)(1), and the
information regarding the underlying decision was released to the
public in unredacted form.
---------------------------------------------------------------------------
\3\ A ``Designated Rule'' means (i) Commission Rule 10b-5 under
the Act, (ii) NYSE Arca Equities Rule 6.5 (Manipulation), or (iii)
NYSE Arca Equities Rule 6.2 (Prohibited Acts). See proposed NYSE
Arca Equities Rule 10.15(b)(1).
---------------------------------------------------------------------------
In the event that there is more than one respondent in a
disciplinary decision and sanctions are imposed on one or more of the
respondents, but not all of the respondents meet one or more of the
criteria in proposed NYSE Arca Equities Rule 10.15(b)(1) for the
release of information, NYSE Arca Equities will release to the public
unredacted information with respect to the respondents who meet such
criteria. In addition, NYSE Arca Equities may release redacted
information to the public with respect to the respondents who do not
meet the criteria in proposed NYSE Arca Equities Rule 10.15(b)(1).
NYSE Arca Equities may release information to the public concerning
disciplinary decisions that involve significant policy or enforcement
determinations where the release of such information is deemed by the
President of NYSE Arca Equities to be in the public interest. In
addition, NYSE Arca Equities may exercise its discretion and waive the
requirement to release information with respect to a disciplinary
decision under extraordinary circumstances where the release of the
information would violate fundamental notions of fairness or work as an
injustice. Finally, NYSE Arca Equities may release public information
concerning any disciplinary or other decision issued pursuant to NYSE
Arca Equities Rule 10 that is not specifically enumerated in proposed
NYSE Arca Equities Rule 10.15(b)(1), regardless of the sanctions
imposed, so long as the names of the parties and other identifying
information are redacted.
Notices. Decisions that are released to a member of the public must
include certain notices. Decisions that are released prior to the
period in which a respondent may request an appeal pursuant to NYSE
Arca Equities Rule 10.8 (Review) or while an appeal is pending must
include a statement that the findings and sanctions imposed in the
decision may be increased, decreased, modified, or reversed by NYSE
Arca Equities. In addition, a final decision by NYSE Arca Equities that
is released prior to the period in which a respondent may appeal to the
Commission or while such appeal is pending will include a statement
that the findings and sanctions of NYSE Arca Equities are subject to
review and modification by the Commission. Lastly, a final decision of
NYSE Arca Equities that is released after the decision is appealed to
the Commission will include a statement as to whether the effectiveness
of the sanctions has been stayed pending the outcome of proceedings
before the Commission.
Appeals. In the instance that NYSE Arca Equities' decisions are
appealed to the Commission or the federal courts, NYSE Arca Equities
will notify all ETP Holders and the press. This includes all NYSE Arca
Equities decisions imposing monetary sanctions of $10,000 or more or a
penalty of expulsion, revocation, suspension, and/or barring of an ETP
Holder from being associated with all ETP Holders.
Commission Orders. NYSE Arca Equities will release through a notice
to the public information with respect to any order issued by the
Commission: (i) Revoking or suspending an ETP Holder's broker-dealer
registration; (ii) suspending or expelling an ETP Holder from NYSE Arca
Equities; (iii) suspending or barring an ETP Holder or an associated
person from associating with all broker-dealers or ETP Holders; or (iv)
imposing monetary sanctions of $10,000 or more.
Offers of Settlement. NYSE Arca Equities will release information
regarding sanctions imposed pursuant to NYSE Arca Equities Rule 10.6
(Offers of Settlement) upon the approval of offers of settlement.
Cancellation of Equity Trading Permits. In cases where NYSE Arca
Equities cancels an Equity Trading Permit or registration, NYSE Arca
Equities will notify the public as soon after the effective date of the
cancellation as possible.
While proposed NYSE Arca Equities Rule 10.15 is based substantially
on NASD Rule 8310 (Sanctions for Violation of the Rules) and IM-8310-2
(Release of Disciplinary and Other Information Through the Public
Disclosure Program), it does not incorporate all aspects of such NASD
Rule. For example, proposed NYSE Arca
[[Page 32625]]
Equities Rule 10.15 excludes public disclosure of disciplinary
complaints and arbitrations. NYSE Arca Equities's intention is for
public disclosure not to apply to disciplinary complaints that involve
undecided issues or arbitrations between parties. NYSE Arca Equities
plans to notify ETP Holders and associated persons of the effectiveness
of this proposed rule change through NYSE Arca Equities' Internet Web
site and a regulatory bulletin.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act \4\ in general, and furthers the
objectives of Section 6(b)(5) \5\ 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.
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78s(b).
\5\ 15 U.S.C. 78s(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
No written comments were solicited or received with respect to the
proposed rule change.
III. 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 SR-NYSEArca-2006-02 on the subject line.
Paper Comments
Send paper comments in triplicate to Nancy M. Morris,
Secretary, Securities and Exchange Commission, Station Place, 100 F
Street, NE., Washington, DC 20549-1090.
All submissions should refer to File Number SR-NYSEArca-2006-02. 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 such
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-NYSEArca-2006-02 and should be submitted on or before
June 27, 2006.
IV. Commission's Findings and Order Granting Accelerated Approval of
Proposed Rule Change
The Commission finds that the proposed rule change, as amended, is
consistent with the requirements of the Act and the rules and
regulations thereunder applicable to a national securities exchange.\6\
In particular, the Commission finds that the proposed rule change is
consistent with Section 6(b)(5) of the Act,\7\ which requires that an
exchange have rules designed, among other things, to promote just and
equitable principles of trade, to remove impediments to and perfect the
mechanism of a free and open market and a national market system, and
in general to protect investors and the public interest.
---------------------------------------------------------------------------
\6\ In approving this proposed rule change, the Commission has
considered the proposed rule's impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
\7\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
The Commission believes that the proposal to institute the Public
Disclosure Program, which is substantially based on NASD Rule 8310 and
IM-8310-2,\8\ serves the interest of investor protection because it
allows NYSE Arca Equities members and the general public to promptly
learn of final disciplinary decisions involving its broker-dealer
members or associated persons of such members. By notifying the public
of a final decision issued by the Exchange or any committee of the
Exchange that results in the suspension, cancellation, expulsion, and/
or barring of an ETP Holder or the imposition of monetary sanctions of
$10,000 or more, for example, the Commission believes that the Public
Disclosure Program should provide important information to the public,
create additional incentives for members of the Exchange to comply with
its rules, and help investors make informed choices and decisions about
the individuals and firms with whom they may wish to conduct business.
As such, the Commission finds that the proposed program promotes just
and equitable principles of trade, encourages the prevention of
fraudulent and manipulative acts and practices, and seeks to perfect
the mechanism of a free and open market.
---------------------------------------------------------------------------
\8\ See Securities Exchange Act Release No. 35138 (December 22,
1994), 59 FR 67362 (December 29, 1994) (approving the NASD program
to publish final disciplinary decisions involving its members).
---------------------------------------------------------------------------
The Commission finds good cause for approving this proposed rule
change, as amended, before the thirtieth day after the publication of
notice thereof in the Federal Register. As noted earlier, prompt
disclosure of final disciplinary decisions serves the interest of
protecting investors and the general public.\9\ Therefore, accelerating
approval of the proposed rule change should benefit investors because
they will have access to the NYSE Arca Equities disciplinary
information sooner. The Public Disclosure Program should foster
compliance with NYSE Arca Equities rules, heighten awareness of the
public investor with respect to the conduct of business on the
Exchange, and, in general, improve the overall integrity of the market
center.
---------------------------------------------------------------------------
\9\ See id.
---------------------------------------------------------------------------
V. Conclusion
It is therefore ordered, pursuant to Section 19(b)(2) of the Act,
that the proposed rule change (SR-NYSEArca-
[[Page 32626]]
2006-02), as amended, is hereby approved on an accelerated basis.\10\
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78s(b)(2).
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\11\
---------------------------------------------------------------------------
\11\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Nancy M. Morris,
Secretary.
[FR Doc. E6-8716 Filed 6-5-06; 8:45 am]
BILLING CODE 8010-01-P