Self-Regulatory Organizations; NYSE Arca, Inc.; Order Approving Proposed Rule Change To Amend NYSE Arca Equities, Inc.'s Clearly Erroneous Executions Rule To Include an Appeal Fee for the NYSE Arca Marketplace (f/k/a the Archipelago Exchange), 64596 [E6-18449]

Download as PDF 64596 Federal Register / Vol. 71, No. 212 / Thursday, November 2, 2006 / Notices 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 For the Commission, by the Division of Market Regulation, pursuant to delegated authority.16 Nancy M. Morris, Secretary. [FR Doc. E6–18450 Filed 11–1–06; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–54655; File No. SR– NYSEArca–2006–48] • 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–2006–94 on the subject line. Self-Regulatory Organizations; NYSE Arca, Inc.; Order Approving Proposed Rule Change To Amend NYSE Arca Equities, Inc.’s Clearly Erroneous Executions Rule To Include an Appeal Fee for the NYSE Arca Marketplace (f/ k/a the Archipelago Exchange) Paper Comments October 26, 2006. mstockstill on PROD1PC61 with NOTICES • Send paper comments in triplicate to Nancy M. Morris, Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549–1090. On August 11, 2006, NYSE Arca, Inc. (‘‘NYSE Arca’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’) a proposed rule change pursuant to Section 19(b)(1) of the Securities All submissions should refer to File Exchange Act of 1934 (‘‘Act’’) 1 and Rule Number SR–NYSE–2006–94. This file 19b–4 thereunder,2 to assess a fee number should be included on the associated with the appeals process of subject line if e-mail is used. To help the NYSE Arca Equities, Inc. (‘‘NYSE Arca Commission process and review your Equities’’) Rule 7.10. The proposed rule comments more efficiently, please use change was published for comment in only one method. The Commission will the Federal Register on September 22, post all comments on the Commission’s 2006.3 The Commission received no comments on the proposal. This order Internet Web site (http://www.sec.gov/ approves the proposed rule change. rules/sro.shtml). Copies of the NYSE Arca proposes to amend NYSE submission, all subsequent Arca Equities Rule 7.10 governing amendments, all written statements clearly erroneous executions (‘‘CEEs’’) with respect to the proposed rule on the NYSE Arca Marketplace (f/k/a change that are filed with the the Archipelago Exchange), the equities Commission, and all written trading facility of NYSE Arca Equities. communications relating to the Specifically, under the proposed rule proposed rule change between the change, if an Equity Trading Permit Commission and any person, other than (‘‘ETP’’) Holder appeals a CEE decision those that may be withheld from the made by an NYSE Arca Equities officer public in accordance with the to the CEE Panel and the CEE Panel provisions of 5 U.S.C. 552, will be subsequently upholds the decision, the available for inspection and copying in ETP Holder would be assessed a the Commission’s Public Reference $500.00 fee. The Exchange believes that Room. Copies of such filing also will be assessing a $500.00 fee against any ETP available for inspection and copying at Holder who appeals a CEE decision that the principal office of the Exchange. All is subsequently upheld by the CEE comments received will be posted Panel would discourage frivolous and without change; the Commission does abusive uses of the CEE appeal process. not edit personal identifying The Exchange noted that some ETP information from submissions. You Holders have taken advantage of the should submit only information that appeals process by appealing all you wish to make available publicly. All decisions in which they are involved, submissions should refer to File 16 17 CFR 200.30–3(a)(12). Number SR–NYSE–2006–94 and should 1 15 U.S.C. 78s(b)(1). be submitted on or before November 24, 2 17 CFR 240.19b–4. 2006. 3 See Securities Exchange Act Release No. 54466 (September 18, 2006), 71 FR 55537. VerDate Aug<31>2005 14:49 Nov 01, 2006 Jkt 211001 PO 00000 Frm 00088 Fmt 4703 Sfmt 4703 including decisions that involve a de minimis value. After careful review, the Commission finds that the proposed rule change is consistent with the requirements of the Act and the rules and regulations thereunder applicable to a national securities exchange.4 In particular, the Commission finds that the proposed rule change is consistent with Section 6(b)(4) of the Act,5 which requires that the rules of an exchange provide for the equitable allocation of reasonable dues, fees, and other charges among its members and issuers and other persons using its facilities, and with Section 6(b)(5) of the Act,6 which requires that the rules of an exchange be designed to promote just and equitable principles of trade, remove impediments to and perfect the mechanism of a free and open market and a national securities system, and, in general, protect investors and the public interest. The Commission believes that the proposed fee is reasonable as a method to discourage frivolous uses by ETP Holders of the Exchange’s CEE appeal process. In addition, the Commission believes that the proposal would not unduly affect the rights of an ETP Holder to appeal to the CEE Panel the decisions of NYSE Arca Equities officers with respect to transactions that are alleged to involve a clearly erroneous execution. It is therefore ordered, pursuant to Section 19(b)(2) of the Act,7 that the proposed rule change (SR–NYSEArca– 2006–48) is approved. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.8 Nancy M. Morris, Secretary. [FR Doc. E6–18449 Filed 11–1–06; 8:45 am] BILLING CODE 8011–01–P 4 In approving this proposed rule change, the Commission has considered the proposed rule’s impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). 5 15 U.S.C. 78f(b)(4). 6 15 U.S.C. 78f(b)(5). 7 15 U.S.C. 78s(b)(2). 8 17 CFR 200.30–3(a)(12). E:\FR\FM\02NON1.SGM 02NON1

Agencies

[Federal Register Volume 71, Number 212 (Thursday, November 2, 2006)]
[Notices]
[Page 64596]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-18449]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-54655; File No. SR-NYSEArca-2006-48]


Self-Regulatory Organizations; NYSE Arca, Inc.; Order Approving 
Proposed Rule Change To Amend NYSE Arca Equities, Inc.'s Clearly 
Erroneous Executions Rule To Include an Appeal Fee for the NYSE Arca 
Marketplace (f/k/a the Archipelago Exchange)

October 26, 2006.
    On August 11, 2006, NYSE Arca, Inc. (``NYSE Arca'' or ``Exchange'') 
filed with the Securities and Exchange Commission (``Commission'') a 
proposed rule change pursuant to Section 19(b)(1) of the Securities 
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ to 
assess a fee associated with the appeals process of NYSE Arca Equities, 
Inc. (``NYSE Arca Equities'') Rule 7.10. The proposed rule change was 
published for comment in the Federal Register on September 22, 2006.\3\ 
The Commission received no comments on the proposal. This order 
approves the proposed rule change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 54466 (September 18, 
2006), 71 FR 55537.
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    NYSE Arca proposes to amend NYSE Arca Equities Rule 7.10 governing 
clearly erroneous executions (``CEEs'') on the NYSE Arca Marketplace 
(f/k/a the Archipelago Exchange), the equities trading facility of NYSE 
Arca Equities. Specifically, under the proposed rule change, if an 
Equity Trading Permit (``ETP'') Holder appeals a CEE decision made by 
an NYSE Arca Equities officer to the CEE Panel and the CEE Panel 
subsequently upholds the decision, the ETP Holder would be assessed a 
$500.00 fee. The Exchange believes that assessing a $500.00 fee against 
any ETP Holder who appeals a CEE decision that is subsequently upheld 
by the CEE Panel would discourage frivolous and abusive uses of the CEE 
appeal process. The Exchange noted that some ETP Holders have taken 
advantage of the appeals process by appealing all decisions in which 
they are involved, including decisions that involve a de minimis value.
    After careful review, the Commission finds that the proposed rule 
change is consistent with the requirements of the Act and the rules and 
regulations thereunder applicable to a national securities exchange.\4\ 
In particular, the Commission finds that the proposed rule change is 
consistent with Section 6(b)(4) of the Act,\5\ which requires that the 
rules of an exchange provide for the equitable allocation of reasonable 
dues, fees, and other charges among its members and issuers and other 
persons using its facilities, and with Section 6(b)(5) of the Act,\6\ 
which requires that the rules of an exchange be designed to promote 
just and equitable principles of trade, remove impediments to and 
perfect the mechanism of a free and open market and a national 
securities system, and, in general, protect investors and the public 
interest. The Commission believes that the proposed fee is reasonable 
as a method to discourage frivolous uses by ETP Holders of the 
Exchange's CEE appeal process. In addition, the Commission believes 
that the proposal would not unduly affect the rights of an ETP Holder 
to appeal to the CEE Panel the decisions of NYSE Arca Equities officers 
with respect to transactions that are alleged to involve a clearly 
erroneous execution.
---------------------------------------------------------------------------

    \4\ In approving this proposed rule change, the Commission has 
considered the proposed rule's impact on efficiency, competition, 
and capital formation. See 15 U.S.C. 78c(f).
    \5\ 15 U.S.C. 78f(b)(4).
    \6\ 15 U.S.C. 78f(b)(5).
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    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\7\ that the proposed rule change (SR-NYSEArca-2006-48) is 
approved.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78s(b)(2).
    \8\ 17 CFR 200.30-3(a)(12).


    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\8\
Nancy M. Morris,
Secretary.
 [FR Doc. E6-18449 Filed 11-1-06; 8:45 am]
BILLING CODE 8011-01-P