Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Include an Additional 32 Securities in the Current Exchange Pilot Operating in Conjunction With the Implementation of Hybrid Market Phase 3, 65559-65561 [E6-18791]
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Federal Register / Vol. 71, No. 216 / Wednesday, November 8, 2006 / Notices
particularly for retail investors, and
such information does not appear to
contribute to price discovery by market
participants.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
NASD does not believe that the
proposed rule change would impose any
burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
Written comments were neither
solicited nor received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Within 35 days of the date of
publication of this notice in the Federal
Register or within such longer period
(i) as the Commission may designate up
to 90 days of such date if it finds such
longer period to be appropriate and
publishes its reasons for so finding or
(ii) as to which NASD consents, the
Commission will:
(A) By order approve such proposed
rule change, or
(B) institute proceedings to determine
whether the proposed rule change
should be disapproved.
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 NASD. 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–NASD–2006–103 and
should be submitted on or before
November 29, 2006.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.11
Nancy M. Morris,
Secretary.
[FR Doc. E6–18798 Filed 11–7–06; 8:45 am]
BILLING CODE 8011–01–P
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–NASD–2006–103 on the
subject line.
cprice-sewell on PRODPC62 with NOTICES
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–NASD–2006–103. 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
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SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–54685; File No. SR–NYSE–
2006–95]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change to Include an
Additional 32 Securities in the Current
Exchange Pilot Operating in
Conjunction With the Implementation
of Hybrid Market Phase 3
November 1, 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 NYSE. The NYSE
filed the proposal as a ‘‘non11 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
PO 00000
Frm 00109
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65559
controversial’’ 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 proposal effective
upon filing with the Commission.5 The
Commission is publishing this notice to
solicit 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
The Exchange is proposing to include
an additional 32 securities to participate
in the Exchange’s current pilot (‘‘Pilot’’)
program which puts into operation
certain rule changes pending before the
Commission to coincide with the
Exchange’s implementation of NYSE
HYBRID MARKETSM (‘‘Hybrid
Market’’) 6 Phase 3. The additional
securities are identified in Exhibit 3 to
the filing. The text of the proposed rule
change is available on the NYSE’s Web
site (https://www.nyse.com), at the
principal office of the NYSE 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
NYSE included statements concerning
the purpose of, and basis for, the
proposed rule change, and discussed
any comments it received on the
proposal. The text of these statements
may be examined at the places specified
in Item IV below. The Exchange has
prepared summaries, set forth in
Sections A, B, and C below, of the most
significant aspects of such statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
On October 5, 2006 the Commission
approved an Exchange Pilot 7 to, among
other things, put into operation certain
proposed modifications to Exchange
3 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
5 The NYSE has asked the Commission to waive
the 30-day operative delay. See Rule 19b–4(f)(6)(iii),
17 CFR 240.19b–4(f)(6)(iii).
6 The Hybrid Market was approved on March 22,
2006. See Securities Exchange Act Release No.
53539 (March 22, 2006), 71 FR 16353 (March 31,
2006) (SR–NYSE–2004–05).
7 Securities Exchange Act Release No. 54578, 71
FR 60216 (October 12, 2006) (SR–NYSE–2006–82).
See also Securities Exchange Act Release No. 54610
(October 16, 2006), 71 FR 62142 (October 23, 2006)
(SR–NYSE–2006–84) (amending the Pilot).
4 17
E:\FR\FM\08NON1.SGM
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65560
Federal Register / Vol. 71, No. 216 / Wednesday, November 8, 2006 / Notices
cprice-sewell on PRODPC62 with NOTICES
Rules that are currently pending 8 before
the Commission to coincide with the
Exchange’s implementation of the
Hybrid Market Phase 3. The Pilot
commenced on October 6, 2006 9 and is
scheduled to terminate on the close of
business November 30, 2006.10 The
Pilot applies to a group of securities,
known as Phase 3 Pilot securities (‘‘Pilot
securities’’).11
The Exchange is currently in the
process of phasing in the securities
operating under the Pilot. As expected,
the Pilot is operating with minimal
problems and the benefits are proving
invaluable. The Pilot is providing the
Exchange with the opportunity to
identify and address any system
problems. Moreover, the Exchange has
the ability to identify and incorporate
beneficial system changes that become
apparent as a result of usage in real time
and under real market conditions.
The Exchange further has the ability
to have real time user interface that is
proving very useful to the Exchange. In
addition to its usefulness to the
Exchange, the Pilot is providing the
current users with essential practical
experience with the new systems and
processes in a well-modulated way, in
real time and under real market
conditions that cannot be completely
replicated in the mock-trading
environment.
The Exchange therefore seeks through
this filing to include an additional 32
securities for participation in the Pilot.
Among the securities the Exchange
seeks to add to the Pilot is a security
that was not listed on the Exchange
when the Exchange initially sought
approval for the Pilot. Specifically, the
security traded under the symbol SAI
was an initial public offering that
occurred on October 13, 2006
8 See Securities Exchange Act Release No. 54520
(September 27, 2006), 71 FR 57590 (September 29,
2006) (SR–NYSE–2006–65) (proposing to amend
several Exchange Rules to clarify certain definitions
and systemic processes) (‘‘Omnibus Filing’’);
Securities Exchange Act Release No. 54504
(September 26, 2006), 71 FR 57011 (September 28,
2006) (SR–NYSE 2006–76) (proposing to amend the
specialist stabilization requirements set forth in
Exchange Rule 104.10). In addition, in SR–NYSE–
2006–73, filed on September 13, 2006, and
Amendment No. 1 thereto (filed on October 13,
2006), the Exchange proposes to amend Exchange
Rule 127 which governs the execution of a block
cross transaction at a price outside the prevailing
NYSE quotation.
9 The changes related to stop orders and stop
limit orders proposed in the Omnibus Filing were
implemented on October 16, 2006 in order to give
customers and member organizations sufficient
time to make any changes necessary as a result of
the elimination of stop limit orders.
10 See Securities Exchange Act Release No. 54675
(October 31, 2006).
11 Phase 3 Pilot Securities will also be posted on
the Exchange’s Web site.
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15:11 Nov 07, 2006
Jkt 211001
subsequent to the Exchange’s request to
operate the Pilot and thus was not
available to be included at that time.
The Exchange believes that allowing
additional securities to participate in
the Pilot will increase the number of
users that may benefit from the
enhanced educational and supervisory
training experience that the Pilot
provides. Specialist firms will be able to
provide an increased number of
individual specialists with the
educational opportunity of real time
experience under real market conditions
that cannot be completely replicated in
the mock-trading environment. It will
further provide an increased number of
the specialists firms’ supervisory
personnel with additional opportunities
for supervisory training in real time and
under real market conditions.
Accordingly, the Exchange believes
that the inclusion of additional
securities will only further the
Exchange’s ability to identify and
address any system problems and to
identify and incorporate beneficial
system changes while providing the
new users with real time education.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the requirement under Section 6(b)(5) of
the Act 12 that a registered national
securities exchange have rules 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
proposed rule change also is designed to
support the principles of Section
11A(a)(1) of the Act 13 in that it seeks to
assure economically efficient execution
of securities transactions.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange believes that the
proposed rule change will not 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 comments on the proposed
rule change.
12 15
13 15
PO 00000
U.S.C. 78f(b)(5).
U.S.C. 78k–1(a)(1).
Frm 00110
Fmt 4703
Sfmt 4703
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule
change: (1) Does not significantly affect
the protection of investors or the public
interest; (2) does not impose any
significant burden on competition; and
(3) by its terms does not become
operative for 30 days after the date of
this filing, or such shorter time as the
Commission may designate if consistent
with the protection of investors and the
public interest, the proposed rule
change has become effective pursuant to
Section 19(b)(3)(A) of the Act and Rule
19b–4(f)(6) thereunder. The Exchange
has requested that the Commission
waive the 30-day operative delay period
for this ‘‘non-controversial’’ proposal.
The Commission has determined to
waive the 30-day operative delay.14 The
Exchange states that this waiver will
allow the Exchange to immediately
implement this proposal, which will
allow specialist firms to provide more of
their specialists and supervisory
personnel with the educational
opportunity of real-time experience
under real market conditions under the
Pilot program. Inclusion of additional
securities in the Pilot may allow the
Exchange to identify and correct any
system problems 15 and formulate any
necessary corrective changes. Therefore,
the Commission finds that it is
consistent with the protection of
investors and the public interest that the
proposed rule change become effective
and operative upon filing pursuant to
Section 19(b)(3)(A)(iii) of the Act 16 and
Rule 19b–4(f)(6) thereunder.17
At any time within 60-days of the
filing of the proposed rule change, the
Commission may summarily abrogate
such rule change if it appears to the
Commission that such action is
necessary or appropriate in the public
interest, for the protection of investors,
or otherwise in furtherance of the
purposes of the Act.
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:
14 For purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. 15 U.S.C. 78c(f).
15 The Exchange states that, currently, the Pilot is
operating with minimal problems.
16 15 U.S.C. 78s(b)(3)(A)(iii).
17 17 CFR 240.19b–4(f)(6).
E:\FR\FM\08NON1.SGM
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Federal Register / Vol. 71, No. 216 / Wednesday, November 8, 2006 / Notices
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–2006–95 on the
subject line.
Paper Comments
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–54686; File No. SR–
NYSEArca–2006–68]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Relating to the Revision
of Certain Equity Transaction Fees
• Send paper comments in triplicate
to Nancy M. Morris, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
November 1, 2006.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.18
Nancy M. Morris,
Secretary.
[FR Doc. E6–18791 Filed 11–7–06; 8:45 am]
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
cprice-sewell on PRODPC62 with NOTICES
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
September 29, 2006, NYSE Arca, Inc.
(‘‘NYSE Arca’’ or ‘‘Exchange’’) filed
All submissions should refer to File
with the Securities and Exchange
Number SR–NYSE–2006–95. This file
Commission (‘‘Commission’’) the
number should be included on the
subject line if e-mail is used. To help the proposed rule change as described in
Items I, II, and III below, which Items
Commission process and review your
have been substantially prepared by
comments more efficiently, please use
NYSE Arca. The Exchange submitted
only one method. The Commission will the proposed rule change under Section
post all comments on the Commission’s 19(b)(3)(A) of the Act 3 and Rule 19b–
Internet Web site (https://www.sec.gov/
4(f)(2) thereunder,4 which renders the
rules/sro.shtml). Copies of the
proposal effective upon filing with the
submission, all subsequent
Commission. The Commission is
amendments, all written statements
publishing this notice to solicit
with respect to the proposed rule
comments on the proposed rule change
change that are filed with the
from interested persons.
Commission, and all written
I. Self-Regulatory Organization’s
communications relating to the
Statement of the Terms of Substance of
proposed rule change between the
the Proposed Rule Change
Commission and any person, other than
The Exchange proposes to amend the
those that may be withheld from the
section of its Schedule of Fees and
public in accordance with the
Charges for Exchange Services (the ‘‘Fee
provisions of 5 U.S.C. 552, will be
Schedule’’) that applies to ETP Holders 5
available for inspection and copying in
executing certain round-lot transactions
the Commission’s Public Reference
Room. Copies of such filing also will be in NYSE-listed (Tape A) equity
securities (other than Exchange Traded
available for inspection and copying at
Fund (‘‘ETF’’) securities) on the
NYSE’s Office of the Secretary.
Exchange. While changes to the Fee
All comments received will be posted Schedule pursuant to this proposal are
without change; the Commission does
effective upon filing, the new rates
not edit personal identifying
became operative on October 1, 2006.
information from submissions. You
The text of the proposed rule change is
should submit only information that
available on the Exchange’s Web site at
you wish to make available publicly. All https://www.nysearca.com, at the
Exchange’s Office of the Secretary and
submissions should refer to File
Number SR–NYSE–2006–95 and should at the Commission’s Public Reference
be submitted on or before November 29, Room.
2006.
II. Self-Regulatory Organization’s
BILLING CODE 8011–01–P
In its filing with the Commission,
NYSE Arca included statements
concerning the purpose of and basis for
the proposed rule change and discussed
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(2).
5 See NYSE Arca Equities Rule 1.1(n).
2 17
18 17
CFR 200.30–3(a)(12).
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Frm 00111
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65561
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
Exchange has prepared summaries, set
forth in Sections A, B, and C below, of
the most significant aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to amend the
section of its Fee Schedule that applies
to ETP Holders executing certain roundlot transactions in NYSE-listed (Tape A)
equity securities (other than ETF
securities) on the Exchange.
The Fee Schedule currently provides
that no transaction fee will be charged
to ETP Holders for round-lot orders in
NYSE-listed equity securities (other
than ETF securities) that are executed in
the NYSE Arca Book against inbound
orders. The Exchange proposes to
amend the Fee Schedule to provide that
ETP Holders will be entitled to a $0.002
per share credit for such orders. The
Exchange proposes to offer this credit in
order to compete more effectively with
other exchanges that are offering
liquidity rebates in NYSE-listed equity
securities.
The Exchange’s Fee Schedule
currently provides that a transaction fee
of $0.001 per share will be charged to
ETP Holders for round-lot orders in
NYSE-listed equity securities (other
than ETFs) that take liquidity from the
NYSE Arca Book. The Exchange
proposes to amend the Fee Schedule to
provide that ETP Holders will be
charged $0.003 per share for such
orders, including orders received
through the Intermarket Trading System
(‘‘ITS’’).6 In addition, the Exchange
proposes to amend footnote 1 to the Fee
Schedule to note that such fees will
apply to orders received through ITS.
The Exchange proposes to increase this
fee in order to offset the proposed credit
for round-lot orders in NYSE-listed
equity securities (other than ETF
securities) that are executed in the
NYSE Arca Book against inbound
orders, as described above.
6 Since October 1, 2006, the effective date of the
‘‘Plan for the Purpose of Creating and Operating an
Intermarket Communications Linkage Pursuant to
Section 11A(a)(3)(B) of the Securities Exchange Act
of 1934’’ (‘‘Linkage Plan’’), connectivity between
markets is provided pursuant to the Linkage Plan.
The current ITS technology is used to effectuate
both the ITS Plan and Linkage Plan. Therefore, the
term ‘‘ITS’’ applies to the technology used to
effectuate both the ITS Plan and the Linkage Plan.
E:\FR\FM\08NON1.SGM
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]]>Agencies
[Federal Register Volume 71, Number 216 (Wednesday, November 8, 2006)]
[Notices]
[Pages 65559-65561]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-18791]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-54685; File No. SR-NYSE-2006-95]
Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change to
Include an Additional 32 Securities in the Current Exchange Pilot
Operating in Conjunction With the Implementation of Hybrid Market Phase
3
November 1, 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 NYSE. The NYSE filed
the proposal as a ``non-controversial'' 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 proposal effective upon filing with
the Commission.\5\ The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A).
\4\ 17 CFR 240.19b-4(f)(6).
\5\ The NYSE has asked the Commission to waive the 30-day
operative delay. See Rule 19b-4(f)(6)(iii), 17 CFR 240.19b-
4(f)(6)(iii).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange is proposing to include an additional 32 securities to
participate in the Exchange's current pilot (``Pilot'') program which
puts into operation certain rule changes pending before the Commission
to coincide with the Exchange's implementation of NYSE HYBRID
MARKET\SM\ (``Hybrid Market'') \6\ Phase 3. The additional securities
are identified in Exhibit 3 to the filing. The text of the proposed
rule change is available on the NYSE's Web site (https://www.nyse.com),
at the principal office of the NYSE and at the Commission's Public
Reference Room.
---------------------------------------------------------------------------
\6\ The Hybrid Market was approved on March 22, 2006. See
Securities Exchange Act Release No. 53539 (March 22, 2006), 71 FR
16353 (March 31, 2006) (SR-NYSE-2004-05).
---------------------------------------------------------------------------
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the NYSE included statements
concerning the purpose of, and basis for, the proposed rule change, and
discussed any comments it received on the proposal. The text of these
statements may be examined at the places specified in Item IV below.
The Exchange has prepared summaries, set forth in Sections A, B, and C
below, of the most significant aspects of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
On October 5, 2006 the Commission approved an Exchange Pilot \7\
to, among other things, put into operation certain proposed
modifications to Exchange
[[Page 65560]]
Rules that are currently pending \8\ before the Commission to coincide
with the Exchange's implementation of the Hybrid Market Phase 3. The
Pilot commenced on October 6, 2006 \9\ and is scheduled to terminate on
the close of business November 30, 2006.\10\ The Pilot applies to a
group of securities, known as Phase 3 Pilot securities (``Pilot
securities'').\11\
---------------------------------------------------------------------------
\7\ Securities Exchange Act Release No. 54578, 71 FR 60216
(October 12, 2006) (SR-NYSE-2006-82). See also Securities Exchange
Act Release No. 54610 (October 16, 2006), 71 FR 62142 (October 23,
2006) (SR-NYSE-2006-84) (amending the Pilot).
\8\ See Securities Exchange Act Release No. 54520 (September 27,
2006), 71 FR 57590 (September 29, 2006) (SR-NYSE-2006-65) (proposing
to amend several Exchange Rules to clarify certain definitions and
systemic processes) (``Omnibus Filing''); Securities Exchange Act
Release No. 54504 (September 26, 2006), 71 FR 57011 (September 28,
2006) (SR-NYSE 2006-76) (proposing to amend the specialist
stabilization requirements set forth in Exchange Rule 104.10). In
addition, in SR-NYSE-2006-73, filed on September 13, 2006, and
Amendment No. 1 thereto (filed on October 13, 2006), the Exchange
proposes to amend Exchange Rule 127 which governs the execution of a
block cross transaction at a price outside the prevailing NYSE
quotation.
\9\ The changes related to stop orders and stop limit orders
proposed in the Omnibus Filing were implemented on October 16, 2006
in order to give customers and member organizations sufficient time
to make any changes necessary as a result of the elimination of stop
limit orders.
\10\ See Securities Exchange Act Release No. 54675 (October 31,
2006).
\11\ Phase 3 Pilot Securities will also be posted on the
Exchange's Web site.
---------------------------------------------------------------------------
The Exchange is currently in the process of phasing in the
securities operating under the Pilot. As expected, the Pilot is
operating with minimal problems and the benefits are proving
invaluable. The Pilot is providing the Exchange with the opportunity to
identify and address any system problems. Moreover, the Exchange has
the ability to identify and incorporate beneficial system changes that
become apparent as a result of usage in real time and under real market
conditions.
The Exchange further has the ability to have real time user
interface that is proving very useful to the Exchange. In addition to
its usefulness to the Exchange, the Pilot is providing the current
users with essential practical experience with the new systems and
processes in a well-modulated way, in real time and under real market
conditions that cannot be completely replicated in the mock-trading
environment.
The Exchange therefore seeks through this filing to include an
additional 32 securities for participation in the Pilot. Among the
securities the Exchange seeks to add to the Pilot is a security that
was not listed on the Exchange when the Exchange initially sought
approval for the Pilot. Specifically, the security traded under the
symbol SAI was an initial public offering that occurred on October 13,
2006 subsequent to the Exchange's request to operate the Pilot and thus
was not available to be included at that time.
The Exchange believes that allowing additional securities to
participate in the Pilot will increase the number of users that may
benefit from the enhanced educational and supervisory training
experience that the Pilot provides. Specialist firms will be able to
provide an increased number of individual specialists with the
educational opportunity of real time experience under real market
conditions that cannot be completely replicated in the mock-trading
environment. It will further provide an increased number of the
specialists firms' supervisory personnel with additional opportunities
for supervisory training in real time and under real market conditions.
Accordingly, the Exchange believes that the inclusion of additional
securities will only further the Exchange's ability to identify and
address any system problems and to identify and incorporate beneficial
system changes while providing the new users with real time education.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the requirement under Section 6(b)(5) of the Act \12\ that a
registered national securities exchange have rules 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 proposed rule change also is designed to support the principles of
Section 11A(a)(1) of the Act \13\ in that it seeks to assure
economically efficient execution of securities transactions.
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\12\ 15 U.S.C. 78f(b)(5).
\13\ 15 U.S.C. 78k-1(a)(1).
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B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange believes that the proposed rule change will not 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 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: (1) Does not
significantly affect the protection of investors or the public
interest; (2) does not impose any significant burden on competition;
and (3) by its terms does not become operative for 30 days after the
date of this filing, or such shorter time as the Commission may
designate if consistent with the protection of investors and the public
interest, the proposed rule change has become effective pursuant to
Section 19(b)(3)(A) of the Act and Rule 19b-4(f)(6) thereunder. The
Exchange has requested that the Commission waive the 30-day operative
delay period for this ``non-controversial'' proposal.
The Commission has determined to waive the 30-day operative
delay.\14\ The Exchange states that this waiver will allow the Exchange
to immediately implement this proposal, which will allow specialist
firms to provide more of their specialists and supervisory personnel
with the educational opportunity of real-time experience under real
market conditions under the Pilot program. Inclusion of additional
securities in the Pilot may allow the Exchange to identify and correct
any system problems \15\ and formulate any necessary corrective
changes. Therefore, the Commission finds that it is consistent with the
protection of investors and the public interest that the proposed rule
change become effective and operative upon filing pursuant to Section
19(b)(3)(A)(iii) of the Act \16\ and Rule 19b-4(f)(6) thereunder.\17\
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\14\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. 15 U.S.C. 78c(f).
\15\ The Exchange states that, currently, the Pilot is operating
with minimal problems.
\16\ 15 U.S.C. 78s(b)(3)(A)(iii).
\17\ 17 CFR 240.19b-4(f)(6).
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At any time within 60-days of the filing of the proposed rule
change, the Commission may summarily abrogate such rule change if it
appears to the Commission that such action is necessary or appropriate
in the public interest, for the protection of investors, or otherwise
in furtherance of the purposes of the Act.
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:
[[Page 65561]]
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-2006-95 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-2006-95. 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 NYSE's
Office of the Secretary.
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-2006-95
and should be submitted on or before November 29, 2006.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\18\
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\18\ 17 CFR 200.30-3(a)(12).
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Nancy M. Morris,
Secretary.
[FR Doc. E6-18791 Filed 11-7-06; 8:45 am]
BILLING CODE 8011-01-P
