Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Rule 13 (“Definitions of Orders “) To Clarify That an Immediate or Cancel Order Must Be Designated “Regulation NMS-compliant Immediate or Cancel” in Order To Be so Executed, and To Modify the Definition of an “At the Opening” or “At the Opening Only” Order To Ensure That It Complies With the Securities and Exchange Commission's Regulation NMS, 62143-62145 [E6-17674]

Download as PDF Federal Register / Vol. 71, No. 204 / Monday, October 23, 2006 / Notices Section 11A(a)(1) of the Act 11 in that it seeks to assure economically efficient execution of securities transactions. B. Self-Regulatory Organization’s Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants or Others The Exchange has neither solicited nor received written comments on the proposed rule change.12 mstockstill on PROD1PC76 with NOTICES 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) by its terms, 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 13 and Rule 19b–4(f)(6) thereunder.14 A proposed rule change filed under Rule 19b–4(f)(6) normally may not become operative prior to 30 days after the date of filing. However, Rule 19b– 4(f)(6)(iii) 15 permits the Commission to designate a shorter time if such action is consistent with the protection of investors and the public interest. The Exchange has requested that the Commission waive the five-day prefiling requirement and the 30-day operative delay and designate the proposed rule change immediately operative upon filing. The Commission is exercising its authority to waive the five-day pre-filing requirement and believes that waiver of the 30-day operative delay is consistent with the protection of investors and the public interest. Specifically, the Commission believes that the correction of the rule reference as a Pilot rule should provide clarity as to which rules are applicable to the Pilot securities. Further, the Commission believes that adding A.WD 11 15 U.S.C. 78k–1(a)(1). Commission notes that it has received comments on the Omnibus Filing and the Stabilization Filing. 13 15 U.S.C. 78s(b)(3)(A). 14 17 CFR 240.19b–4(f)(6). 15 17 CFR 240.19b–4(f)(6)(iii). as a Pilot security is appropriate so that it and its related security, A, are traded in a similar manner on the Exchange. Accordingly, the Commission designates the proposal to be effective and operative upon filing with the Commission.16 At any time within 60 days of the filing of the proposed rule change, the Commission may summarily abrogate such proposed rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. IV. Solicitation of Comments Interested persons are invited to submit written data, views and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: 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–2006–84 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–2006–84. 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 also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR–NYSE–2006–84 and should be submitted on or before November 13, 2006. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.17 Nancy M. Morris, Secretary. [FR Doc. E6–17673 Filed 10–20–06; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–54611; File No. SR–NYSE– 2006–86] Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Rule 13 (‘‘Definitions of Orders ‘‘) To Clarify That an Immediate or Cancel Order Must Be Designated ‘‘Regulation NMS-compliant Immediate or Cancel’’ in Order To Be so Executed, and To Modify the Definition of an ‘‘At the Opening’’ or ‘‘At the Opening Only’’ Order To Ensure That It Complies With the Securities and Exchange Commission’s Regulation NMS October 16, 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 October 16, 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. NYSE filed the proposed rule change pursuant to Section 19(b)(3)(A) of the Act 3 and Rule 19b–4(f)(6) thereunder,4 which renders the proposed rule change effective upon filing with the Commission. The Commission is publishing this notice to solicit 12 The VerDate Aug<31>2005 15:50 Oct 20, 2006 Jkt 211001 16 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. See 15 U.S.C. 78c(f). PO 00000 Frm 00064 Fmt 4703 Sfmt 4703 62143 17 17 CFR 200.30–3(a)(12). 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). 1 15 E:\FR\FM\23OCN1.SGM 23OCN1 62144 Federal Register / Vol. 71, No. 204 / Monday, October 23, 2006 / Notices comments on the proposed rule change from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change NYSE proposes to amend Exchange Rule 13 (‘‘Definitions of Orders ‘‘) to clarify that an Immediate or Cancel order must be designated ‘‘Regulation NMS-compliant Immediate or Cancel’’ in order to be so executed, and to modify the definition of an ‘‘At the Opening’’ or ‘‘At the Opening Only’’ order to ensure that it complies with the Commission’s Regulation NMS (‘‘Reg. NMS’’).5 The text of the proposed rule change is available on the Exchange’s Web site (http://www.nyse.com), at the Exchange’s Office of the Secretary, and at the Commission’s Public Reference Room. 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 and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The self-regulatory organization 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 mstockstill on PROD1PC76 with NOTICES The Exchange proposes to amend certain rules governing the NYSE HYBRID MARKETSM (‘‘Hybrid Market’’) in order to clarify the definition of a Regulation NMS-compliant Immediate or Cancel order. In the Hybrid Market, the Exchange created two types of Immediate or Cancel (‘‘IOC’’) orders which are defined in Exchange Rule 13. The first type is an IOC order that complies with Reg. NMS.6 A Reg. NMS IOC order will not be routed during an Exchange sweep, if any, to satisfy better priced protected bids or offers 7 displayed by other market centers; rather, a Reg. NMS 5 See Securities Exchange Act Release No. 51808 (June 9, 2005), 70 FR 37496 (June 29, 2005). See also 17 CFR 242.600(b)(3). 6 See id. 7 A protected bid and offer is one that meets the definition set forth in Section 242.600(b)(57) of Regulation NMS. VerDate Aug<31>2005 15:50 Oct 20, 2006 Jkt 211001 IOC order will be cancelled and the Exchange sweep will end. The second type of IOC order is a ‘‘NYSE IOC’’ order. Unlike a Reg. NMS IOC order, a NYSE IOC order permits portions to be routed during a sweep, if any, to other markets to satisfy better priced protected bids or offers and cancels only when once it is no longer able to receive an execution. In this filing, the Exchange proposes to amend the definition of a Reg. NMS IOC order to clarify that all Reg. NMS IOC orders submitted to the Exchange for execution must be appropriately designated. Therefore, if an IOC order is submitted to the Exchange without the appropriate designation for a Reg. NMS IOC order, said order will be handled as a NYSE IOC order. In addition, in order to comply with Reg. NMS,8 the Exchange proposes to amend the definition of an ‘‘At the Opening’’ or ‘‘At the Opening Only’’ order to provide that all or part of such order may be executed as part of the opening transaction on another market center if compliance with Reg. NMS requires that the order, or part thereof, be routed to another market center. If the possibility of a NYSE-only opening execution is sought, an ‘‘At the Opening’’ or ‘‘At the Opening Only’’ order must be designated as a ‘‘Reg. NMS-compliant immediate or cancel’’ order in the manner directed by the Exchange. As noted above, such orders will not be routed to other markets. Therefore, if such orders are unable to trade on the Exchange, they will be cancelled immediately and automatically. Accordingly, if the Exchange opens on a quote, such orders will be immediately and automatically cancelled. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with Section 6(b) of the Act 9 in general, and furthers the objectives of Section 6(b)(5) of the Act 10 in particular, 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. The Exchange believes that the proposed rule change is also designed to support the principles of Section 11A(a)(1) of the Act 11 in that it seeks to assure economically efficient execution of securities transactions, the 8 See note 5, supra. U.S.C. 78f(b). 10 15 U.S.C. 78f(b)(5). 11 15 U.S.C. 78k–1(a)(1). 9 15 PO 00000 Frm 00065 Fmt 4703 Sfmt 4703 practicability of brokers executing investors’ orders in the best market, and an opportunity for investors’ orders to be executed without the participation of a dealer. B. Self-Regulatory Organization’s Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants or Others The Exchange has neither solicited nor received written comments on the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the 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) by its terms, 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 12 and Rule 19b–4(f)(6) thereunder.13 A proposed rule change filed under Rule 19b–4(f)(6) normally may not become operative prior to 30 days after the date of filing. However, Rule 19b– 4(f)(6)(iii) 14 permits the Commission to designate a shorter time if such action is consistent with the protection of investors and the public interest. The Exchange has requested that the Commission waive the 30-day operative delay and designate the proposed rule change immediately operative upon filing. The Commission believes that waiver of the 30-day operative delay is consistent with the protection of investors and the public interest because it would allow the Exchange to meet the Reg. NMS compliance dates.15 At any time within 60 days of the filing of the proposed rule change the Commission may summarily abrogate such proposed rule change if it appears 12 15 U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(6). 14 17 CFR 240.19b–4(f)(6)(iii). 15 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. See 15 U.S.C. 78c(f). 13 17 E:\FR\FM\23OCN1.SGM 23OCN1 Federal Register / Vol. 71, No. 204 / Monday, October 23, 2006 / Notices 62145 For the Commission, by the Division of Market Regulation, pursuant to delegated authority.16 Nancy M. Morris, Secretary. [FR Doc. E6–17674 Filed 10–20–06; 8:45 am] Percent to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. IV. Solicitation of Comments BILLING CODE 8011–01–P 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: [Disaster Declaration # 10640 and # 10641] Indiana Disaster # IN–00008 Small Business Administration. Notice. AGENCY: 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–2006–86 on the subject line. mstockstill on PROD1PC76 with NOTICES SMALL BUSINESS ADMINISTRATION ACTION: SUMMARY: This is a notice of the Presidential declaration of a major disaster for the State of Indiana (FEMA– 1662–DR), dated 10/06/2006. Incident: Severe storms and flooding. Incident Period: 09/12/2006 through 09/14/2006. Paper Comments DATES: Effective Date: 10/10/2006. Physical Loan Application Deadline • Send paper comments in triplicate Date: 12/05/2006. to Nancy M. Morris, Secretary, Economic Injury (EIDL) Loan Securities and Exchange Commission, Application Deadline Date: 07/06/2007. 100 F Street, NE., Washington, DC ADDRESSES: Submit completed loan 20549–1090. applications to: U.S. Small Business All submissions should refer to File Administration, Processing And Number SR–NYSE–2006–86. This file Disbursement Center, 14925 Kingsport number should be included on the subject line if e-mail is used. To help the Road, Fort Worth, TX 76155. FOR FURTHER INFORMATION CONTACT: A. Commission process and review your Escobar, Office of Disaster Assistance, comments more efficiently, please use only one method. The Commission will U.S. Small Business Administration, post all comments on the Commission’s 409 3rd Street, SW., Suite 6050, Washington, DC 20416. Internet Web site (http://www.sec.gov/ rules/sro.shtml). Copies of the SUPPLEMENTARY INFORMATION: Notice is submission, all subsequent hereby given that as a result of the amendments, all written statements President’s major disaster declaration on with respect to the proposed rule 10/10/2006, applications for disaster change that are filed with the loans may be filed at the address listed Commission, and all written above or other locally announced communications relating to the locations. The following areas have been proposed rule change between the Commission and any person, other than determined to be adversely affected by the disaster: those that may be withheld from the public in accordance with the Primary Counties (Physical Damage and provisions of 5 U.S.C. 552, will be Economic Injury Loans): Lake, available for inspection and copying in Vanderburgh. the Commission’s Public Reference Contiguous Counties (Economic Injury Room. Copies of such filing also will be Loans Only): Indiana: Gibson, Jasper, Newton, available for inspection and copying at Porter, Posey, Warrick. the principal office of the Exchange. All Illinois: Cook, Kankakee, Will. comments received will be posted Kentucky: Henderson. without change; the Commission does not edit personal identifying The Interest Rates are: information from submissions. You Percent should submit only information that you wish to make available publicly. All For Physical Damage: submissions should refer to File Homeowners with credit availNumber SR–NYSE–2006–86 and should able elsewhere ...................... 6.250 be submitted on or before November 13, Homeowners without credit 2006. available elsewhere ............... 3.125 16 17 Businesses with credit available elsewhere .............................. CFR 200.30–3(a)(12). VerDate Aug<31>2005 15:50 Oct 20, 2006 Jkt 211001 PO 00000 Frm 00066 Fmt 4703 Sfmt 4703 7.934 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 ............... 4.000 5.000 4.000 The number assigned to this disaster for physical damage is 106406 and for economic injury is 106410. (Catalog of Federal Domestic Assistance Numbers 59002 and 59008) Herbert L. Mitchell, Associate Administrator for Disaster Assistance. [FR Doc. E6–17654 Filed 10–20–06; 8:45 am] BILLING CODE 8025–01–P SMALL BUSINESS ADMINISTRATION [Disaster Declaration # 10642 and # 10643] Indiana Disaster # IN–00009 Small Business Administration. Notice. AGENCY: ACTION: SUMMARY: This is a notice of an Administrative declaration of a disaster for the State of Indiana dated 10/16/ 2006. Incident: Severe Storms and Flooding. Incident Period: 09/22/2006 through 09/23/2006. DATES: Effective Date: 10/16/2006. Physical Loan Application Deadline Date: December 15, 2006. Economic Injury (EIDL) Loan Application Deadline Date: July 16, 2007. Submit completed loan applications to: U.S. Small Business Administration, 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 Administrator’s disaster declaration, 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: Clark; Floyd. Contiguous Counties: Indiana; Harrison; Jefferson; Scott Washington; ADDRESSES: E:\FR\FM\23OCN1.SGM 23OCN1

Agencies

[Federal Register Volume 71, Number 204 (Monday, October 23, 2006)]
[Notices]
[Pages 62143-62145]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-17674]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-54611; File No. SR-NYSE-2006-86]


Self-Regulatory Organizations; New York Stock Exchange LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
Relating to Rule 13 (``Definitions of Orders ``) To Clarify That an 
Immediate or Cancel Order Must Be Designated ``Regulation NMS-compliant 
Immediate or Cancel'' in Order To Be so Executed, and To Modify the 
Definition of an ``At the Opening'' or ``At the Opening Only'' Order To 
Ensure That It Complies With the Securities and Exchange Commission's 
Regulation NMS

October 16, 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 October 16, 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. NYSE filed 
the proposed rule change pursuant to Section 19(b)(3)(A) of the Act \3\ 
and Rule 19b-4(f)(6) thereunder,\4\ which renders the proposed rule 
change effective upon filing with the Commission. The Commission is 
publishing this notice to solicit

[[Page 62144]]

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 proposes to amend Exchange Rule 13 (``Definitions of Orders 
``) to clarify that an Immediate or Cancel order must be designated 
``Regulation NMS-compliant Immediate or Cancel'' in order to be so 
executed, and to modify the definition of an ``At the Opening'' or ``At 
the Opening Only'' order to ensure that it complies with the 
Commission's Regulation NMS (``Reg. NMS'').\5\ The text of the proposed 
rule change is available on the Exchange's Web site (http://
www.nyse.com), at the Exchange's Office of the Secretary, and at the 
Commission's Public Reference Room.
---------------------------------------------------------------------------

    \5\ See Securities Exchange Act Release No. 51808 (June 9, 
2005), 70 FR 37496 (June 29, 2005). See also 17 CFR 242.600(b)(3).
---------------------------------------------------------------------------

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 and 
discussed any comments it received on the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item IV below. The self-regulatory organization has prepared summaries, 
set forth in Sections A, B, and C below, of the most significant 
aspects of such statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to amend certain rules governing the NYSE 
HYBRID MARKET\SM\ (``Hybrid Market'') in order to clarify the 
definition of a Regulation NMS-compliant Immediate or Cancel order.
    In the Hybrid Market, the Exchange created two types of Immediate 
or Cancel (``IOC'') orders which are defined in Exchange Rule 13. The 
first type is an IOC order that complies with Reg. NMS.\6\ A Reg. NMS 
IOC order will not be routed during an Exchange sweep, if any, to 
satisfy better priced protected bids or offers \7\ displayed by other 
market centers; rather, a Reg. NMS IOC order will be cancelled and the 
Exchange sweep will end.
---------------------------------------------------------------------------

    \6\ See id.
    \7\ A protected bid and offer is one that meets the definition 
set forth in Section 242.600(b)(57) of Regulation NMS.
---------------------------------------------------------------------------

    The second type of IOC order is a ``NYSE IOC'' order. Unlike a Reg. 
NMS IOC order, a NYSE IOC order permits portions to be routed during a 
sweep, if any, to other markets to satisfy better priced protected bids 
or offers and cancels only when once it is no longer able to receive an 
execution.
    In this filing, the Exchange proposes to amend the definition of a 
Reg. NMS IOC order to clarify that all Reg. NMS IOC orders submitted to 
the Exchange for execution must be appropriately designated. Therefore, 
if an IOC order is submitted to the Exchange without the appropriate 
designation for a Reg. NMS IOC order, said order will be handled as a 
NYSE IOC order.
    In addition, in order to comply with Reg. NMS,\8\ the Exchange 
proposes to amend the definition of an ``At the Opening'' or ``At the 
Opening Only'' order to provide that all or part of such order may be 
executed as part of the opening transaction on another market center if 
compliance with Reg. NMS requires that the order, or part thereof, be 
routed to another market center. If the possibility of a NYSE-only 
opening execution is sought, an ``At the Opening'' or ``At the Opening 
Only'' order must be designated as a ``Reg. NMS-compliant immediate or 
cancel'' order in the manner directed by the Exchange. As noted above, 
such orders will not be routed to other markets. Therefore, if such 
orders are unable to trade on the Exchange, they will be cancelled 
immediately and automatically. Accordingly, if the Exchange opens on a 
quote, such orders will be immediately and automatically cancelled.
---------------------------------------------------------------------------

    \8\ See note 5, supra.
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act \9\ in general, and furthers the 
objectives of Section 6(b)(5) of the Act \10\ in particular, 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. The Exchange believes that the 
proposed rule change is also designed to support the principles of 
Section 11A(a)(1) of the Act \11\ in that it seeks to assure 
economically efficient execution of securities transactions, the 
practicability of brokers executing investors' orders in the best 
market, and an opportunity for investors' orders to be executed without 
the participation of a dealer.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78f(b).
    \10\ 15 U.S.C. 78f(b)(5).
    \11\ 15 U.S.C. 78k-1(a)(1).
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition that is not necessary or appropriate 
in furtherance of the purposes of the Act.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants or Others

    The Exchange has neither solicited nor received written comments on 
the proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Because the 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) 
by its terms, 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 \12\ 
and Rule 19b-4(f)(6) thereunder.\13\
---------------------------------------------------------------------------

    \12\ 15 U.S.C. 78s(b)(3)(A).
    \13\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

    A proposed rule change filed under Rule 19b-4(f)(6) normally may 
not become operative prior to 30 days after the date of filing. 
However, Rule 19b-4(f)(6)(iii) \14\ permits the Commission to designate 
a shorter time if such action is consistent with the protection of 
investors and the public interest. The Exchange has requested that the 
Commission waive the 30-day operative delay and designate the proposed 
rule change immediately operative upon filing. The Commission believes 
that waiver of the 30-day operative delay is consistent with the 
protection of investors and the public interest because it would allow 
the Exchange to meet the Reg. NMS compliance dates.\15\
---------------------------------------------------------------------------

    \14\ 17 CFR 240.19b-4(f)(6)(iii).
    \15\ 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. See 15 U.S.C. 
78c(f).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of the proposed rule 
change the Commission may summarily abrogate such proposed rule change 
if it appears

[[Page 62145]]

to the Commission that such action is necessary or appropriate in the 
public interest, for the protection of investors, or otherwise in 
furtherance of the purposes of the Act.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

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-2006-86 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-2006-86. 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 also will be available for inspection and copying at the 
principal office of the Exchange. All comments received will be posted 
without change; the Commission does not edit personal identifying 
information from submissions. You should submit only information that 
you wish to make available publicly. All submissions should refer to 
File Number SR-NYSE-2006-86 and should be submitted on or before 
November 13, 2006.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\16\
---------------------------------------------------------------------------

    \16\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Nancy M. Morris,
Secretary.
 [FR Doc. E6-17674 Filed 10-20-06; 8:45 am]
BILLING CODE 8011-01-P