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 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 (http://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 (http://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 (http://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 (http://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 (http://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]


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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).
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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 (http://
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 (http://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