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
<![CDATA[
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 (https://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 (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for inspection and copying in
the Commission’s Public Reference
Room. Copies of such filing also will be
available for inspection and copying at
the principal office of the Exchange. All
comments received will be posted
without change; the Commission does
not edit personal identifying
information from submissions. You
should submit only information that
you wish to make available publicly. All
submissions should refer to File
Number SR–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 (https://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 (https://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 (https://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 (https://
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 (https://
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 (https://www.sec.gov/
rules/sro.shtml). Copies of the submission, all subsequent amendments,
all written statements with respect to the proposed rule change that
are filed with the Commission, and all written communications relating
to the proposed rule change between the Commission and any person,
other than those that may be withheld from the public in accordance
with the provisions of 5 U.S.C. 552, will be available for inspection
and copying in the Commission's Public Reference Room. Copies of such
filing also will be available for inspection and copying at the
principal office of the Exchange. All comments received will be posted
without change; the Commission does not edit personal identifying
information from submissions. You should submit only information that
you wish to make available publicly. All submissions should refer to
File Number SR-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
