Order Exempting Certain Sub-Penny Trade-Throughs From Rule 611 of Regulation NMS Under the Securities Exchange Act of 1934, 65018-65019 [E6-18635]
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Federal Register / Vol. 71, No. 214 / Monday, November 6, 2006 / Notices
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Decommissioning and Uranium
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and State Materials and Environmental
Management Programs.
[FR Doc. E6–18624 Filed 11–3–06; 8:45 am]
BILLING CODE 7590–01–P
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[FR Doc. 06–9096 Filed 11–2–06; 8:45 am]
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DATE:
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PLACE:
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Appointments to Performance Review
Boards for Senior Executive Service
Nuclear Regulatory
Commission.
ACTION: Appointment to Performance
Review Boards for Senior Executive
Service.
AGENCY:
SUMMARY: The U.S. Nuclear Regulatory
Commission (NRC) has announced the
following appointments to the NRC
Performance Review Boards.
The following individuals are
appointed as members of the NRC
Performance Review Board (PRB)
responsible for making
recommendations to the appointing and
awarding authorities on performance
appraisal ratings and performance
awards for Senior Executives and Senior
Level employees:
Bruce A. Boger, Associate Director for
Operating Reactor Oversight and Licensing,
Office of Nuclear Reactor Regulation.
R. William Borchardt, Deputy Director,
Office of Nuclear Security and Incident
Response.
Samuel J. Collins, Regional Administrator,
Region I.
Karen D. Cyr, General Counsel.
Jesse L. Funches, Chief Financial Officer.
William F. Kane, Deputy Executive
Director for Reactor and Preparedness
Programs, Office of the Executive Director for
Operations.
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Bruce S. Mallett, Regional Administrator,
Region IV.
Luis A. Reyes, Executive Director for
Operations.
Jacqueline E. Silber, Deputy Executive
Director for Information Services and
Administration and Chief Information
Officer.
Jack R. Strosnider, Director, Office of
Nuclear Material Safety and Safeguards.
Annette L. Vietti-Cook, Secretary of the
Commission.
Martin J. Virgilio, Deputy Executive
Director for Materials, Research, State and
Compliance Programs.
James T. Wiggins, Deputy Director, Office
of Nuclear Regulatory Research.
The following individuals will serve
as members of the NRC PRB Panel that
was established to review appraisals
and make recommendations to the
appointing and awarding authorities for
NRC PRB members:
Stephen G. Burns, Deputy General
Counsel, Office of the General Counsel.
Brian W. Sheron, Director, Office of
Nuclear Regulatory Research.
Roy P. Zimmerman, Director, Office of
Nuclear Security and Incident Response.
All appointments are made pursuant
to Section 4314 of Chapter 43 of Title
5 of the United States Code.
DATES: Effective Date: November 6,
2006.
FOR FURTHER INFORMATION CONTACT:
Secretary, Executive Resources Board,
U.S. Nuclear Regulatory Commission,
Washington, DC 20555; (301) 415–7530.
Dated at Rockville, Maryland, this 14th day
of August, 2006.
For the Nuclear Regulatory Commission.
Carolyn J. Swanson,
Secretary, Executive Resources Board.
[FR Doc. E6–18630 Filed 11–3–06; 8:45 am]
BILLING CODE 7590–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–54678]
Order Exempting Certain Sub-Penny
Trade-Throughs From Rule 611 of
Regulation NMS Under the Securities
Exchange Act of 1934
October 31, 2006.
I. Introduction
Pursuant to Rule 611(d) 1 of
Regulation NMS 2 under the Securities
Exchange Act of 1934 (‘‘Exchange Act’’),
the Securities and Exchange
Commission (‘‘Commission’’), by order,
may exempt from the provisions of Rule
1 17
2 17
CFR 242.611(d).
CFR 242.600 et seq.
E:\FR\FM\06NON1.SGM
06NON1
Federal Register / Vol. 71, No. 214 / Monday, November 6, 2006 / Notices
611 of Regulation NMS (‘‘Rule 611’’ or
‘‘Rule’’), either unconditionally or on
specified terms and conditions, any
person, security, transaction, quotation,
or order, or any class or classes of
persons, securities, quotations, or
orders, if the Commission determines
that such exemption is necessary or
appropriate in the public interest, and is
consistent with the protection of
investors.3 As discussed below, the
Commission is exempting from Rule 611
trading centers executing transactions
that trade through a low-priced
protected quotation by less than $0.01
per share. The exemption is designed to
promote more workable and efficient
intermarket price priority in NMS stocks
with quoted prices of $1.00 or less per
share that can be quoted in increments
as small as $0.0001.
II. Background
rwilkins on PROD1PC63 with NOTICES
The Commission adopted Regulation
NMS in June 2005.4 Rule 611(a)(1)
requires a trading center to establish,
maintain, and enforce written policies
and procedures that are reasonably
designed to prevent trade-throughs on
that trading center of protected
quotations in NMS stocks that do not
fall within an exception set forth in the
Rule. Rule 611(b)(6) provides an
exception for a trade-through
transaction effected by a trading center
that simultaneously routes an
intermarket sweep order (‘‘ISO’’) to
execute against the full displayed size of
any protected quotation in the NMS that
was traded through.
Rule 612(a) of Regulation NMS
prohibits, among other things, the
display of quotations priced in an
increment smaller than $0.01 if the
quotation is priced equal to or greater
than $1.00 per share.5 Under Rule
612(b), however, it is permissible to
display quotations in increments as
small as $0.0001 if the quotation is
priced less than $1.00 per share. As a
result, quotations priced in increments
as small as $0.0001 could qualify as
‘‘protected quotations’’ under Rule
600(b)(58).6
3 See also 15 U.S.C. 78mm(a)(1) (providing
general authority for Commission to grant
exemptions from provisions of Exchange Act and
rules thereunder).
4 See Securities Exchange Act Release No. 51808
(June 9, 2005), 70 FR 37496 (June 29, 2005)
(‘‘Regulation NMS Adopting Release’’).
5 17 CFR 242.612(a).
6 17 CFR 242.600(b)(58). A ‘‘protected quotation’’
is defined as a protected bid or protected offer.
Under Rule 600(b)(57), a ‘‘protected bid’’ or
‘‘protected offer’’ means a quotation in an NMS
stock that: (i) is displayed by an automated trading
center; (ii) is disseminated pursuant to an effective
national market system plan; and (iii) is an
automated quotation that is the best bid or best offer
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17:31 Nov 03, 2006
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III. Discussion
The Commission has decided to
exempt trading centers from the
requirement in Rule 611(a) to establish,
maintain, and enforce written policies
and procedures that are reasonably
designed to prevent trade-throughs
when: (1) The price of the protected
quotation that is traded through is $1.00
or less; and (2) the price of the tradethrough transaction is less than $0.01
away from the price of the protected
quotation that was traded through
(‘‘Sub-Penny Trade-Throughs’’).
The Commission believes that
granting an exemption for Sub-Penny
Trade-Throughs will promote a more
workable and efficient trade-through
rule in NMS stocks that can be priced
in very small increments of less than
$0.01. The Regulation NMS Adopting
Release notes that implementation of
the Rule 611 trade-through provisions is
likely to present the greatest challenge
for agency markets trading active stocks
that handle a large volume of buy and
sell orders.7 These trading centers must
assure that such orders interact in an
orderly and efficient manner in
compliance with all applicable priority
rules. The Rule 611(a) requirement of
written policies and procedures is
designed to achieve the objective of
eliminating all trade-throughs that
reasonably can be prevented, while also
acknowledging the inherent difficulties
of eliminating trade-through
transactions in active stocks with
quotations that change rapidly.8
Consistent with this approach, the
Commission is adopting an exemption
for Sub-Penny Trade-Throughs,
particularly to allow active agency
trading centers that continuously
display quotations and execute orders
against such quotations to operate their
trading systems efficiently in stocks that
can be quoted in increments of as small
as $0.0001. Given these small quoting
increments for protected quotations
priced at less than $1.00 per share, the
Commission does not believe it is
appropriate to require trading centers to
prevent trade-throughs of less than
$0.01. In the absence of an exemption,
trading centers generally would be
required to prevent the execution of
incoming orders against their own
displayed quotations with prices that
could be only $0.0001 away from a
protected quotation displayed by
another trading center. The Commission
does not believe that the very small
economic benefit to be gained by
of a national securities exchange or a national
securities association.
7 70 FR at 37524.
8 70 FR at 37534.
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65019
protecting such a quotation would
justify the practical difficulties faced by
trading centers in operating their trading
systems efficiently.
For the foregoing reasons, the
Commission finds that granting an
exemption for Sub-Penny TradeThroughs is necessary and appropriate
in the public interest, and is consistent
with the protection of investors.
IV. Conclusion
It is hereby ordered, pursuant to Rule
611(d) of Regulation NMS, that trading
centers shall be exempt from the
requirement in Rule 611(a) to establish,
maintain, and enforce written policies
and procedures that are reasonably
designed to prevent trade-throughs
when: (1) The price of the protected
quotation that is traded through is $1.00
or less; and (2) the price of the tradethrough transaction is less than $0.01
away from the price of the protected
quotation that was traded through.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.9
Nancy M. Morris,
Secretary.
[FR Doc. E6–18635 Filed 11–3–06; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–54675; File No. SR–NYSE–
2006–96]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change Relating to a
Request to Extend the Pilot Operating
During the Exchange’s Implementation
of NYSE Hybrid Market Phase 3 Until
November 30, 2006
October 31, 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
26, 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
97
CFR 200.30–3(a)(82).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
1 15
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]]>Agencies
[Federal Register Volume 71, Number 214 (Monday, November 6, 2006)]
[Notices]
[Pages 65018-65019]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-18635]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-54678]
Order Exempting Certain Sub-Penny Trade-Throughs From Rule 611 of
Regulation NMS Under the Securities Exchange Act of 1934
October 31, 2006.
I. Introduction
Pursuant to Rule 611(d) \1\ of Regulation NMS \2\ under the
Securities Exchange Act of 1934 (``Exchange Act''), the Securities and
Exchange Commission (``Commission''), by order, may exempt from the
provisions of Rule
[[Page 65019]]
611 of Regulation NMS (``Rule 611'' or ``Rule''), either
unconditionally or on specified terms and conditions, any person,
security, transaction, quotation, or order, or any class or classes of
persons, securities, quotations, or orders, if the Commission
determines that such exemption is necessary or appropriate in the
public interest, and is consistent with the protection of investors.\3\
As discussed below, the Commission is exempting from Rule 611 trading
centers executing transactions that trade through a low-priced
protected quotation by less than $0.01 per share. The exemption is
designed to promote more workable and efficient intermarket price
priority in NMS stocks with quoted prices of $1.00 or less per share
that can be quoted in increments as small as $0.0001.
---------------------------------------------------------------------------
\1\ 17 CFR 242.611(d).
\2\ 17 CFR 242.600 et seq.
\3\ See also 15 U.S.C. 78mm(a)(1) (providing general authority
for Commission to grant exemptions from provisions of Exchange Act
and rules thereunder).
---------------------------------------------------------------------------
II. Background
The Commission adopted Regulation NMS in June 2005.\4\ Rule
611(a)(1) requires a trading center to establish, maintain, and enforce
written policies and procedures that are reasonably designed to prevent
trade-throughs on that trading center of protected quotations in NMS
stocks that do not fall within an exception set forth in the Rule. Rule
611(b)(6) provides an exception for a trade-through transaction
effected by a trading center that simultaneously routes an intermarket
sweep order (``ISO'') to execute against the full displayed size of any
protected quotation in the NMS that was traded through.
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release No. 51808 (June 9,
2005), 70 FR 37496 (June 29, 2005) (``Regulation NMS Adopting
Release'').
---------------------------------------------------------------------------
Rule 612(a) of Regulation NMS prohibits, among other things, the
display of quotations priced in an increment smaller than $0.01 if the
quotation is priced equal to or greater than $1.00 per share.\5\ Under
Rule 612(b), however, it is permissible to display quotations in
increments as small as $0.0001 if the quotation is priced less than
$1.00 per share. As a result, quotations priced in increments as small
as $0.0001 could qualify as ``protected quotations'' under Rule
600(b)(58).\6\
---------------------------------------------------------------------------
\5\ 17 CFR 242.612(a).
\6\ 17 CFR 242.600(b)(58). A ``protected quotation'' is defined
as a protected bid or protected offer. Under Rule 600(b)(57), a
``protected bid'' or ``protected offer'' means a quotation in an NMS
stock that: (i) is displayed by an automated trading center; (ii) is
disseminated pursuant to an effective national market system plan;
and (iii) is an automated quotation that is the best bid or best
offer of a national securities exchange or a national securities
association.
---------------------------------------------------------------------------
III. Discussion
The Commission has decided to exempt trading centers from the
requirement in Rule 611(a) to establish, maintain, and enforce written
policies and procedures that are reasonably designed to prevent trade-
throughs when: (1) The price of the protected quotation that is traded
through is $1.00 or less; and (2) the price of the trade-through
transaction is less than $0.01 away from the price of the protected
quotation that was traded through (``Sub-Penny Trade-Throughs'').
The Commission believes that granting an exemption for Sub-Penny
Trade-Throughs will promote a more workable and efficient trade-through
rule in NMS stocks that can be priced in very small increments of less
than $0.01. The Regulation NMS Adopting Release notes that
implementation of the Rule 611 trade-through provisions is likely to
present the greatest challenge for agency markets trading active stocks
that handle a large volume of buy and sell orders.\7\ These trading
centers must assure that such orders interact in an orderly and
efficient manner in compliance with all applicable priority rules. The
Rule 611(a) requirement of written policies and procedures is designed
to achieve the objective of eliminating all trade-throughs that
reasonably can be prevented, while also acknowledging the inherent
difficulties of eliminating trade-through transactions in active stocks
with quotations that change rapidly.\8\
---------------------------------------------------------------------------
\7\ 70 FR at 37524.
\8\ 70 FR at 37534.
---------------------------------------------------------------------------
Consistent with this approach, the Commission is adopting an
exemption for Sub-Penny Trade-Throughs, particularly to allow active
agency trading centers that continuously display quotations and execute
orders against such quotations to operate their trading systems
efficiently in stocks that can be quoted in increments of as small as
$0.0001. Given these small quoting increments for protected quotations
priced at less than $1.00 per share, the Commission does not believe it
is appropriate to require trading centers to prevent trade-throughs of
less than $0.01. In the absence of an exemption, trading centers
generally would be required to prevent the execution of incoming orders
against their own displayed quotations with prices that could be only
$0.0001 away from a protected quotation displayed by another trading
center. The Commission does not believe that the very small economic
benefit to be gained by protecting such a quotation would justify the
practical difficulties faced by trading centers in operating their
trading systems efficiently.
For the foregoing reasons, the Commission finds that granting an
exemption for Sub-Penny Trade-Throughs is necessary and appropriate in
the public interest, and is consistent with the protection of
investors.
IV. Conclusion
It is hereby ordered, pursuant to Rule 611(d) of Regulation NMS,
that trading centers shall be exempt from the requirement in Rule
611(a) to establish, maintain, and enforce written policies and
procedures that are reasonably designed to prevent trade-throughs when:
(1) The price of the protected quotation that is traded through is
$1.00 or less; and (2) the price of the trade-through transaction is
less than $0.01 away from the price of the protected quotation that was
traded through.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\9\
Nancy M. Morris,
Secretary.
---------------------------------------------------------------------------
\9\ 7 CFR 200.30-3(a)(82).
---------------------------------------------------------------------------
[FR Doc. E6-18635 Filed 11-3-06; 8:45 am]
BILLING CODE 8011-01-P
