Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to NYSE Rule 36 To Allow a Registered Competitive Market Maker To Call To and Receive Calls From the Booth, 43551-43553 [E6-12322]
Download as PDF
<![CDATA[
Federal Register / Vol. 71, No. 147 / Tuesday, August 1, 2006 / Notices
Government Securities Principals and
Representatives), as well as to remove
the section on NASD Certificate of
Incorporation.
NASD is proposing these changes to
the entire content of the Series 22
examination, including the selection
specifications and question bank. The
number of questions on each section of
the Series 22 examination will remain
the same. In addition, the number of
questions on the examination will
remain at 100, and candidates will
continue to have 21⁄4 hours (135
minutes) to complete the exam. Also,
each question will continue to count
one point, and each candidate must
correctly answer 70 percent of the
questions to receive a passing grade.
At any time within 60 days of the
filing of such proposed rule change, the
Commission may summarily abrogate
such rule change if it appears to the
Commission that such action is
necessary or appropriate in the public
interest, for the protection of investors,
or otherwise in furtherance of the
purposes of the Act.
should be submitted on or before
August 22, 2006.
IV. Solicitation of Comments
BILLING CODE 8010–01–P
2. Statutory Basis
• 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
No. SR–NASD–2006–082 on the subject
line.
NASD believes that the proposed
revisions to the Series 22 examination
program are consistent with the
provisions of Sections 15A(b)(6) 11 and
15A(g)(3) of the Act,12 which authorize
NASD to prescribe standards of training,
experience, and competence for persons
associated with NASD members.
rwilkins on PROD1PC63 with NOTICES
43551
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.15
Jill M. Peterson,
Assistant Secretary.
[FR Doc. E6–12320 Filed 7–31–06; 8:45 am]
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–54215; File No. SR–NYSE–
2006–51]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change Relating to
NYSE Rule 36 To Allow a Registered
Competitive Market Maker To Call To
and Receive Calls From the Booth
July 26, 2006.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
• Send paper comments in triplicate
B. Self-Regulatory Organization’s
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
to Nancy M. Morris, Secretary,
Statement on Burden on Competition
notice is hereby given that on July 3,
Securities and Exchange Commission,
2006, the New York Stock Exchange
NASD does not believe that the
Station Place, 100 F Street, NE.,
LLC (‘‘NYSE’’ or ‘‘Exchange’’) filed with
proposed rule change will result in any
Washington, DC 20549–1090.
the Securities and Exchange
burden on competition that is not
All submissions should refer to File
Commission (‘‘Commission’’) the
necessary or appropriate in furtherance
Number SR–NASD–2006–082. This file
proposed rule change as described in
of the purposes of the Act.
number should be included on the
subject line if e-mail is used. To help the Items I and II below, which Items have
C. Self-Regulatory Organization’s
been prepared by the Exchange. The
Commission process and review your
Statement on Comments on the
Exchange filed the proposed rule change
comments more efficiently, please use
Proposed Rule Change Received From
only one method. The Commission will pursuant to Section 19(b)(3)(A) of the
Members, Participants or Others
3
4
post all comments on the Commission’s Act and Rule 19b–4(f)(6) thereunder,
Written comments were neither
which renders the proposal effective
Internet Web site (https://www.sec.gov/
solicited nor received.
upon filing with the Commission. The
rules/sro.shtml). Copies of the
Commission is publishing this notice to
submission, all subsequent
III. Date of Effectiveness of the
solicit comments on the proposed rule
amendments, all written statements
Proposed Rule Change and Timing for
change from interested persons.
with respect to the proposed rule
Commission Action
The proposed rule change has become change that are filed with the
I. Self-Regulatory Organization’s
Commission, and all written
effective pursuant to Section
Statement of the Terms of Substance of
communications relating to the
19(b)(3)(A)(i) of the Act 13 and Rule 19b–
the Proposed Rule Change
proposed rule change between the
4(f)(1) thereunder,14 in that the
Commission and any person, other than
NYSE is proposing to amend NYSE
proposed rule change constitutes a
Rule 36 (Communication Between
stated policy, practice, or interpretation those that may be withheld from the
public in accordance with the
Exchange and Members’ Offices) to
with respect to the meaning,
provisions of 5 U.S.C. 552, will be
administration, or enforcement of an
allow a Registered Competitive Market
available for inspection and copying in
existing rule of the self-regulatory
Maker (‘‘RCMM’’) to use an Exchange
the Commission’s Public Reference
organization. NASD proposes to
authorized and provided portable
Room. Copies of such filing also will be
implement the revised Series 22
telephone on the Exchange Floor to call
available for inspection and copying at
examination program on August 15,
to and receive calls from his or her
the principal office of NASD. All
2006. NASD will announce the
booth on the Floor, provided certain
comments received will be posted
implementation date in a Notice to
conditions are met.
without change; the Commission does
Members to be published on the same
not edit personal identifying
date as this filing.
15 17 CFR 200.30–3(a)(12).
information from submissions. You
1 15 U.S.C.78s(b)(1).
should submit only information that
11 15 U.S.C. 78o–3(b)(6).
2 17 CFR 240.19b–4.
you wish to make available publicly. All
12 15 U.S.C. 78o–3(g)(3).
3 15 U.S.C. 78s(b)(3)(A).
13 15 U.S.C. 78s(b)(3)(A)(i).
submissions should refer to File
14 17 CFR 240.19b–4(f)(1).
4 17 CFR 240.19b–4(f)(6).
Number SR–NASD–2006–082 and
VerDate Aug<31>2005
20:04 Jul 31, 2006
Jkt 208001
Paper Comments
PO 00000
Frm 00119
Fmt 4703
Sfmt 4703
E:\FR\FM\01AUN1.SGM
01AUN1
43552
Federal Register / Vol. 71, No. 147 / Tuesday, August 1, 2006 / 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
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
NYSE Rule 36
NYSE Rule 36 governs the
establishment of telephone or electronic
communications between the
Exchange’s Trading Floor and any other
location. Currently, NYSE Rules 36.20
through 36.22 provide that, subject to
certain restrictions, Floor brokers and
RCMMs are allowed to use Exchange
authorized and provided portable
phones on the Exchange Floor.5
Under the existing Pilot, subject to
certain restrictions, RCMMs are allowed
to use an Exchange authorized and
provided portable phone solely to
communicate with their or their
member organizations’ off-Floor office
and the off-Floor office of their clearing
member organization to enter off-Floor
orders and to discuss matters related to
the clearance and settlement of
transactions, provided the off-Floor
office uses a wired telephone line for
these discussions. RCMMs are not
allowed to use a portable phone to
conduct any agency business.6
Proposed Amendment to NYSE Rule
36.22
rwilkins on PROD1PC63 with NOTICES
The Exchange proposes to amend
NYSE Rule 36.22 to allow RCMMs to
call their booths on the Floor for
business-related purposes, including
discussing trade reporting and
executions and clearance and settlement
of trades, much as they do today by
calling their upstairs office personnel
and their clearing member
5 The Exchange has authorized the use of portable
phones by Floor brokers and RCMMs pursuant to
a series of pilots. The current pilot is scheduled to
expire July 31, 2006 (‘‘Pilot’’). See Securities
Exchange Act Release No. 53277 (February 13,
2006), 71 FR 8877 (February 21, 2006) (SR–NYSE–
2006–03).
6 See Securities Exchange Act Release No. 53213
(February 2, 2006), 71 FR 7103 (February 10, 2006)
(SR–NYSE–2005–80).
VerDate Aug<31>2005
20:04 Jul 31, 2006
Jkt 208001
organization’s upstairs offices. Booth
personnel would also be allowed to call
their RCMMs’ Exchange authorized and
provided portable phones for businessrelated purposes. In turn, all booth
phones on the Floor which are used to
make calls to and receive calls from
RCMMs’ Exchange authorized and
provided portable phones would be
systemically blocked by the Exchange
from call-forwarding and conference
calling.7 By allowing RCMMs to
communicate with their booths on the
Floor, NYSE believes that the proposed
rule change would increase the
efficiency of trading on the Floor.
In addition, all Exchange authorized
and provided portable phones used by
Floor brokers and RCMMs do not have
call-forwarding or conference calling
capabilities and would continue to not
have such capabilities.8 The Exchange
would issue a revised Member
Education Bulletin outlining the
amendment to the Pilot.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b)(5) of the Act 9 in that it is
designed 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. NYSE believes that the
amendment to NYSE Rule 36 supports
the mechanism of free and open markets
by providing for increased means by
which communications on the Floor of
the Exchange may take place.10
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change would 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.
proposed NYSE Rule 36.22(c)(ii).
proposed NYSE Rules 36.21(a)(v) and
36.22(c)(iii).
9 15 U.S.C. 78f(b)(5).
10 Telephone conversation between David Matta,
Principal Rule Counsel, NYSE, and Molly M. Kim,
Special Counsel, Division of Market Regulation,
Commission, on July 11, 2006.
PO 00000
7 See
8 See
Frm 00120
Fmt 4703
Sfmt 4703
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule
change does not: (i) Significantly affect
the protection of investors or the public
interest; (ii) impose any significant
burden on competition; and (iii) become
operative for 30 days from the date on
which it was filed, or such shorter time
as the Commission may designate if
consistent with the protection of
investors and the public interest, it has
become effective pursuant to Section
19(b)(3)(A) of the Act 11 and Rule 19b–
4(f)(6) thereunder.12 At any time within
60 days of the filing of the proposed rule
change, the Commission may summarily
abrogate such rule change if it appears
to the Commission that such action is
necessary or appropriate in the public
interest, for the protection of investors,
or otherwise in furtherance of the
purposes of the Act.
The Exchange has requested that the
Commission waive the 30-day operative
period under Rule 19b-4(f)(6)(iii) of the
Act.13 The Commission believes that it
is consistent with the protection of
investors and the public interest to
waive the 30-day operative delay and
make this proposed rule change
immediately effective upon filing. The
Commission believes that the waiver of
the 30-day operative delay may increase
the efficiency of the Exchange by
providing immediate use of Exchange
authorized and portable phones to
RCMMs to communicate with their
booths on the Floor. For this reason, the
Commission designates the proposal to
be effective and operative upon filing
with the Commission.14
The Commission notes that proper
surveillance is an essential component
of any telephone access policy to an
exchange trading floor. Surveillance
procedures should help to ensure that
RCMMs use portable phones as
authorized by NYSE Rule 36. The
Commission expects the Exchange to
actively review these procedures and
address any potential concerns that
arises. In this regard, the Commission
notes that the Exchange should address
whether telephone records are adequate
for surveillance purposes. The
Commission also requests that the
Exchange report any problems,
surveillance, or enforcement matters
11 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
13 17 CFR 240.19b–4(f)(6)(iii).
14 For purposes only of waiving the operative
delay for this proposal, the Commission has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. 15
U.S.C. 78c(f).
12 17
E:\FR\FM\01AUN1.SGM
01AUN1
Federal Register / Vol. 71, No. 147 / Tuesday, August 1, 2006 / Notices
associated with RCMMs’ use of an
Exchange authorized and provided
portable telephone on the Exchange
Floor. Furthermore, in any future
additional filings on the Pilot, the
Commission would expect that the
Exchange submit information
documenting the usage of the Exchange
authorized and portable phones and any
problem that have occurred, including,
among other things, any regulatory
actions or concerns.
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:
rwilkins on PROD1PC63 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–NYSE–2006–51 on the
subject line.
submissions should refer to File number
SR-NYSE–2006–51 and should be
submitted on or before August 22, 2006.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.15
J. Lynn Taylor,
Assistant Secretary.
[FR Doc. E6–12322 Filed 7–31–06; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–54220; File No. SR–NYSE–
2006–52]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change by New York
Stock Exchange LLC Relating to
Amendments to Exchange Rule 629—
Schedule of Fees
July 26, 2006.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (the
Paper Comments
‘‘Act’’) 2 and Rule 19b–4 3 thereunder,
• Send paper comments in triplicate
notice is hereby given that on July 21,
to Nancy M. Morris, Secretary,
2006, New York Stock Exchange LLC
Securities and Exchange Commission,
(‘‘NYSE’’) filed with the Securities and
100 F Street, NE., Washington, DC
Exchange Commission (‘‘Commission’’)
20549–1090.
the proposed rule change as described
All submissions should refer to File
in Items I, II, and III below, which Items
Number SR–NYSE–2006–51. This file
have been prepared by the NYSE. NYSE
number should be included on the
has filed the proposal as a ‘‘nonsubject line if e-mail is used. To help the
controversial’’ proposed rule change
Commission process and review your
pursuant to Section 19(b)(3)(A) 4 of the
comments more efficiently, please use
Act, and Rule 19b–4(f)(6) 5 thereunder,
only one method. The Commission will
which renders the proposal as effective
post all comments on the Commission’s
immediately upon filing. The
Internet Web site (https://www.sec.gov/
Commission is publishing this notice to
rules/sro/shtml). Copies of the
solicit comments on the proposed rule
submission, all subsequent
change from interested persons.
amendments, all written statements
with respect to the proposed rule
I. Self-Regulatory Organization’s
change that are filed with the
Statement of the Terms of Substance of
Commission, and all written
the Proposed Rule Change
communications relating to the
NYSE is proposing an amendment to
proposed rule change between the
Commission and any person, other than Rule 629 to clarify the hearing deposits
required for customer counterclaims,
those that may be withheld from the
public in accordance with the
third party claims, and cross-claims.
provisions of 5 U.S.C. 552, will be
The text of the proposed rule change
available for inspection and copying in
is available on NYSE’s Web site
the Commission’s Public Reference
(https://www.nyse.com), at the NYSE’s
Room. Copies of such filing will also be Office of the Secretary, and at the
available for inspection and copying at
Commission’s Public Reference Room.
the principal office of the NYSE. All
comments received will be posted
15 17 CFR 200.30–3(a)(12).
without change; the Commission does
1 15 U.S.C.78s(b)(1).
not edit personal identifying
2 15 U.S.C. 78a.
information from submissions. You
3 17 CFR 240.19b–4.
4 15 U.S.C. 78s(b)(3)(A).
should submit only information that
5 17 CFR 240.19b–4(f)(6).
you wish to make available publicly. All
VerDate Aug<31>2005
20:04 Jul 31, 2006
Jkt 208001
PO 00000
Frm 00121
Fmt 4703
Sfmt 4703
43553
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
NYSE 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 NYSE 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
NYSE Rule 629 (‘‘Rule 629’’) sets forth
the schedules of fees for hearing
deposits required by the parties when
filing claims, counterclaims, third party
claims and cross-claims. The hearing
deposits differ for customer and
industry claimants.
NYSE proposes to amend Rule 629 to
clarify that the hearing deposits
required of customers who file
counterclaims, third party claims and
cross-claims [in an industry initiated
dispute] are the same as the hearing
deposits for matters in which a
customer is the claimant.
2. Statutory Basis
NYSE believes the proposed changes
are consistent with Section 6(b)(4) 6 of
the Act, which requires that an
exchange have rules that provide for the
equitable allocation of reasonable dues,
fees, and other charges among its
members and other persons using its
facilities.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The NYSE 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 NYSE 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 foregoing proposed rule
change does not: (i) Significantly affect
6 15
E:\FR\FM\01AUN1.SGM
U.S.C. 78f(b)(4).
01AUN1
]]>Agencies
[Federal Register Volume 71, Number 147 (Tuesday, August 1, 2006)]
[Notices]
[Pages 43551-43553]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-12322]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-54215; File No. SR-NYSE-2006-51]
Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Relating to NYSE Rule 36 To Allow a Registered Competitive Market Maker
To Call To and Receive Calls From the Booth
July 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 July 3, 2006, the New York Stock Exchange LLC (``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
filed the proposed rule change pursuant to Section 19(b)(3)(A) of the
Act \3\ and Rule 19b-4(f)(6) \4\ thereunder, 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).
\4\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
NYSE is proposing to amend NYSE Rule 36 (Communication Between
Exchange and Members' Offices) to allow a Registered Competitive Market
Maker (``RCMM'') to use an Exchange authorized and provided portable
telephone on the Exchange Floor to call to and receive calls from his
or her booth on the Floor, provided certain conditions are met.
[[Page 43552]]
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
NYSE Rule 36
NYSE Rule 36 governs the establishment of telephone or electronic
communications between the Exchange's Trading Floor and any other
location. Currently, NYSE Rules 36.20 through 36.22 provide that,
subject to certain restrictions, Floor brokers and RCMMs are allowed to
use Exchange authorized and provided portable phones on the Exchange
Floor.\5\
---------------------------------------------------------------------------
\5\ The Exchange has authorized the use of portable phones by
Floor brokers and RCMMs pursuant to a series of pilots. The current
pilot is scheduled to expire July 31, 2006 (``Pilot''). See
Securities Exchange Act Release No. 53277 (February 13, 2006), 71 FR
8877 (February 21, 2006) (SR-NYSE-2006-03).
---------------------------------------------------------------------------
Under the existing Pilot, subject to certain restrictions, RCMMs
are allowed to use an Exchange authorized and provided portable phone
solely to communicate with their or their member organizations' off-
Floor office and the off-Floor office of their clearing member
organization to enter off-Floor orders and to discuss matters related
to the clearance and settlement of transactions, provided the off-Floor
office uses a wired telephone line for these discussions. RCMMs are not
allowed to use a portable phone to conduct any agency business.\6\
---------------------------------------------------------------------------
\6\ See Securities Exchange Act Release No. 53213 (February 2,
2006), 71 FR 7103 (February 10, 2006) (SR-NYSE-2005-80).
---------------------------------------------------------------------------
Proposed Amendment to NYSE Rule 36.22
The Exchange proposes to amend NYSE Rule 36.22 to allow RCMMs to
call their booths on the Floor for business-related purposes, including
discussing trade reporting and executions and clearance and settlement
of trades, much as they do today by calling their upstairs office
personnel and their clearing member organization's upstairs offices.
Booth personnel would also be allowed to call their RCMMs' Exchange
authorized and provided portable phones for business-related purposes.
In turn, all booth phones on the Floor which are used to make calls to
and receive calls from RCMMs' Exchange authorized and provided portable
phones would be systemically blocked by the Exchange from call-
forwarding and conference calling.\7\ By allowing RCMMs to communicate
with their booths on the Floor, NYSE believes that the proposed rule
change would increase the efficiency of trading on the Floor.
---------------------------------------------------------------------------
\7\ See proposed NYSE Rule 36.22(c)(ii).
---------------------------------------------------------------------------
In addition, all Exchange authorized and provided portable phones
used by Floor brokers and RCMMs do not have call-forwarding or
conference calling capabilities and would continue to not have such
capabilities.\8\ The Exchange would issue a revised Member Education
Bulletin outlining the amendment to the Pilot.
---------------------------------------------------------------------------
\8\ See proposed NYSE Rules 36.21(a)(v) and 36.22(c)(iii).
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b)(5) of the Act \9\ in that it is designed 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.
NYSE believes that the amendment to NYSE Rule 36 supports the mechanism
of free and open markets by providing for increased means by which
communications on the Floor of the Exchange may take place.\10\
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78f(b)(5).
\10\ Telephone conversation between David Matta, Principal Rule
Counsel, NYSE, and Molly M. Kim, Special Counsel, Division of Market
Regulation, Commission, on July 11, 2006.
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change would
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 foregoing proposed rule change does not: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate if consistent with
the protection of investors and the public interest, it has become
effective pursuant to Section 19(b)(3)(A) of the Act \11\ and Rule 19b-
4(f)(6) thereunder.\12\ At any time within 60 days of the filing of the
proposed rule change, the Commission may summarily abrogate such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act.
---------------------------------------------------------------------------
\11\ 15 U.S.C. 78s(b)(3)(A).
\12\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
The Exchange has requested that the Commission waive the 30-day
operative period under Rule 19b-4(f)(6)(iii) of the Act.\13\ The
Commission believes that it is consistent with the protection of
investors and the public interest to waive the 30-day operative delay
and make this proposed rule change immediately effective upon filing.
The Commission believes that the waiver of the 30-day operative delay
may increase the efficiency of the Exchange by providing immediate use
of Exchange authorized and portable phones to RCMMs to communicate with
their booths on the Floor. For this reason, the Commission designates
the proposal to be effective and operative upon filing with the
Commission.\14\
---------------------------------------------------------------------------
\13\ 17 CFR 240.19b-4(f)(6)(iii).
\14\ For purposes only of waiving the operative delay for this
proposal, the Commission has considered the proposed rule's impact
on efficiency, competition, and capital formation. 15 U.S.C. 78c(f).
---------------------------------------------------------------------------
The Commission notes that proper surveillance is an essential
component of any telephone access policy to an exchange trading floor.
Surveillance procedures should help to ensure that RCMMs use portable
phones as authorized by NYSE Rule 36. The Commission expects the
Exchange to actively review these procedures and address any potential
concerns that arises. In this regard, the Commission notes that the
Exchange should address whether telephone records are adequate for
surveillance purposes. The Commission also requests that the Exchange
report any problems, surveillance, or enforcement matters
[[Page 43553]]
associated with RCMMs' use of an Exchange authorized and provided
portable telephone on the Exchange Floor. Furthermore, in any future
additional filings on the Pilot, the Commission would expect that the
Exchange submit information documenting the usage of the Exchange
authorized and portable phones and any problem that have occurred,
including, among other things, any regulatory actions or concerns.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://
www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-NYSE-2006-51 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-2006-51. 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 will also be available for inspection and copying at the
principal office of the NYSE. 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-2006-51 and should be submitted on or before August
22, 2006.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\15\
---------------------------------------------------------------------------
\15\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
J. Lynn Taylor,
Assistant Secretary.
[FR Doc. E6-12322 Filed 7-31-06; 8:45 am]
BILLING CODE 8010-01-P
