Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Extending the Time Period by Which the Exchange Will Amend the NASD-NYSE Arca Options Agreement Pursuant to Rule 17d-2, 66211-66213 [E6-19063]
Download as PDF
<![CDATA[
Federal Register / Vol. 71, No. 218 / Monday, November 13, 2006 / Notices
Replaced Portfolios, their advisers or
underwriters (or their affiliates),
including without limitation 12b–l,
shareholder service, administration or
other service fees, revenue sharing or
other arrangements in connection with
such assets. Annuity Investors
represents that the Substitutions and the
selection of the Replacement Portfolios
were not motivated by any financial
consideration paid or to be paid by the
Replacement Portfolios, their advisers or
underwriters, or their respective
affiliates.
Conclusion
For the reasons and upon the facts set
forth above, Applicants submit that the
requested order meets the standards set
forth in Section 26(c). Applicants
request an order of the Commission,
pursuant to Section 26(c) of the Act,
approving the Substitutions.
For the Commission, by the Division of
Investment Management, pursuant to
delegated authority.
Nancy M. Morris,
Secretary.
[FR Doc. E6–19075 Filed 11–9–06; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[File No. 500–1]
In the Matter of FuelNation, Inc. and
Sytron, Inc.; Order of Suspension of
Trading
cprice-sewell on PROD1PC66 with NOTICES
November 8, 2006.
It appears to the Securities and
Exchange Commission that there is a
lack of current and accurate information
concerning the securities of FuelNation,
Inc. because it has not filed any periodic
reports since it filed a Form 10–QSB for
the period ended March 31, 2004.
It appears to the Securities and
Exchange Commission that there is a
lack of current and accurate information
concerning the securities of Sytron, Inc.
because it has not filed any periodic
reports since it filed a Form 10–SB on
February 1, 2000.
The Commission is of the opinion that
the public interest and the protection of
investors require a suspension of trading
in the securities of the above-listed
companies.
Therefore, it is ordered, pursuant to
Section 12(k) of the Securities Exchange
Act of 1934, that trading in the abovelisted companies is suspended for the
period from 9:30 a.m. EST on November
8, 2006, through 11:59 p.m. EST on
November 21, 2006.
VerDate Aug<31>2005
15:22 Nov 09, 2006
Jkt 211001
By the Commission.
Nancy M. Morris,
Secretary.
[FR Doc. 06–9189 Filed 11–8–06; 11:55 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–54690; File No. SR–
NYSEArca–2006–79]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Relating to Extending the
Time Period by Which the Exchange
Will Amend the NASD–NYSE Arca
Options Agreement Pursuant to Rule
17d–2
November 2, 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
25, 2006, NYSE Arca, Inc. (‘‘NYSE
Arca’’ 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. The Exchange filed the
proposal as a ‘‘non-controversial’’ 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 amend
its undertaking 6 to extend for 90 days
from the date of this filing the time
period by which the Exchange will enter
into an agreement with the National
Association of Securities Dealers, Inc.
(‘‘NASD’’) pursuant to Rule 17d–2
under the Act 7 (the ‘‘NASD / NYSE
Arca Options Agreement’’ or
‘‘Agreement’’). The Agreement would
expand the allocation to NASD of
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)(6).
5 The Exchange has asked the Commission to
waive the 5-day pre-filing notice requirement and
the 30-day operative delay. See 15 U.S.C.
78s(b)(3)(A), 17 CFR 240.19b–4(f)(6)(iii).
6 See Securities Exchange Act Release No. 54238
(July 28, 2006), 71 FR 44758 (August 7, 2006) (SR–
NYSEArca–2006–13) (OX Approval Order).
7 17 CFR 240.17d–2.
2 17
PO 00000
Frm 00056
Fmt 4703
Sfmt 4703
66211
regulatory responsibility to encompass
all the regulatory oversight and
enforcement responsibilities with
respect to the options activities of
Archipelago Securities, L.L.C.
(‘‘Archipelago Securities’’),8 except for
‘‘real-time market surveillance.’’
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
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
In connection with the Commission’s
approval of the Exchange’s new
electronic options trading platform, OX,
Archipelago Securities became a routing
broker for OX options orders on the
Exchange.9 In Amendment No. 3 to its
filing seeking approval of the OX
platform,10 the Exchange proposed to
clarify that NASD, a self-regulatory
organization unaffiliated with the
Exchange or any of its affiliates, would
continue to carry out oversight and
enforcement responsibilities as the
Designated Examining Authority
designated by the Commission pursuant
to Rule 17d–1 under the Act 11 with the
8 Archipelago Securities, a wholly-owned
subsidiary of Archipelago Holdings, Inc. and a
registered broker-dealer, acts as the outbound order
router for the NYSE Arca Marketplace (formerly
known as the Archipelago Exchange) and, as such,
is regulated as an exchange ‘‘facility’’ of NYSE Arca
and NYSE Arca Equities, Inc. See 15 U.S.C.
78c(a)(2). As such, any proposed rule change
relating to Archipelago Securities’ order-routing
function must be filed with the Commission, and
must operate in a manner that is consistent with the
provisions of the Act applicable to exchanges and
with NYSE Arca rules.
9 See OX Approval Order, supra note 6. Pursuant
to NYSE Arca Rule 6.1A(a)(15), which was adopted
in connection with the establishment of the new OX
trading platform, the term ‘‘OX Routing Broker’’
refers to the broker-dealer affiliate of the Exchange
that acts as agent for routing orders entered into OX
of OTP Holders, OTP Firms and OTP Firms’
Sponsored Participants to other Market Centers for
execution whenever such routing is permitted by
Exchange Rules. Archipelago Securities is the
Exchange’s only OX Routing Broker.
10 See OX Approval Order, supra note 6.
11 17 CFR 240.17d–1.
E:\FR\FM\13NON1.SGM
13NON1
66212
Federal Register / Vol. 71, No. 218 / Monday, November 13, 2006 / Notices
cprice-sewell on PROD1PC66 with NOTICES
responsibility for examining
Archipelago Securities for compliance
with the applicable financial
responsibility rules. Furthermore, the
Exchange represented that it would
enter into the NASD/NYSE Arca
Options Agreement pursuant to Rule
17d–2 under the Act,12 to expand the
allocation to NASD of regulatory
responsibility to encompass all the
regulatory oversight and enforcement
responsibilities with respect to the
options activities of Archipelago
Securities, except for ‘‘real-time market
surveillance.’’ 13 The Exchange agreed to
submit the NASD / NYSE Arca Options
Agreement to the Commission under
Rule 17d–2 within 90 days of the date
of the Commission’s approval of the OX
trading platform.14 The 90 day period
elapsed on October 26, 2006.
On October 20, 2006, the Exchange
submitted to the Commission a draft
NASD/NYSE Arca Options Agreement,
but has not yet received Commission
approval. The Exchange believes that an
extension of time for an additional 90
days from the date of this filing to enter
into the NASD/NYSE Arca Options
Agreement will give the Commission
staff sufficient time to publish and take
action on the proposal.
The Exchange believes that the
requested extension of time is consistent
with the Act and the rules and
regulations thereunder, will not
significantly affect the protection of
investors or the public interest, and
does not impose any significant burden
on competition. The Exchange notes
that NASD already carries out oversight
and enforcement responsibilities as the
Designated Examining Authority
designated by the Commission pursuant
to Rule 17d–1 under the Act 15 with the
responsibility for examining
Archipelago Securities for compliance
with the applicable financial
responsibility rules.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act,16 in general, and
furthers the objectives of Section 6(b)(5)
of the Act,17 in particular, in that it is
designed to prevent fraudulent and
manipulative acts and practices, to
promote just and equitable principles of
trade, to foster cooperation and
coordination with persons engaged in
regulating clearing, settling, processing
12 17
CFR 240.17d–2.
OX Approval Order, supra note 6.
13 See
14 Id.
15 17
CFR 240.17d–1.
16 15 U.S.C. 78f(b).
17 15 U.S.C. 78f(b)(5).
VerDate Aug<31>2005
15:22 Nov 09, 2006
Jkt 211001
information with respect to, and
facilitating transactions in securities, 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.
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
Written comments on the proposed
rule change were neither solicited nor
received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing rule: (i) Does
not significantly affect the protection of
investors or the public interest; (ii) does
not impose any significant burden on
competition; and (iii) by its terms, does
not 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,18 the proposed rule change has
become effective pursuant to Section
19(b)(3)(A) of the Act 19 and Rule 19b–
4(f)(6) thereunder.20
The Exchange has requested that the
Commission waive the 30-day operative
delay, which would make the rule
change effective and operative upon
filing. The Commission believes that
waiving the 30-day operative delay is
consistent with the protection of
investors and the public interest. Such
waiver will allow the Exchange to
comply with its undertaking made in
connection with the OX Approval Order
to submit the NASD/NYSE Arca
Options Agreement to the Commission.
The Exchange requests a waiver of the
30-day period on the basis that the
current deadline for entering into the
18 Pursuant to Rule 19b–4(f)(6)(iii) under the Act,
the Exchange is required to give the Commission
written notice of its intent to file the proposed rule
change, along with a brief description and text of
the proposed rule change, at least five business days
prior to the date of filing of the proposed rule
change, or such shorter time as designated by the
Commission. The Exchange has requested that the
Commission waive the 5-day pre-filing notice
requirement. The Commission has determined to
waive this requirement for this filing.
19 15 U.S.C. 78s(b)(3)(A).
20 17 CFR 240.19b–4(f)(6).
PO 00000
Frm 00057
Fmt 4703
Sfmt 4703
NASD/NYSE Arca Options Agreement
was October 26, 2006, and a delay of 30
days would place the Exchange out of
compliance with its undertaking.
Extending the compliance date for the
Exchange’s undertaking by an
additional 90 days will provide time for
the Exchange to finalize and file the
Agreement. For these reasons, the
Commission designates the proposal to
be effective and operative upon filing
with the Commission.21
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:
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 NYSEArca–2006–79 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 NYSEArca–2006–79. 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
21 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).
E:\FR\FM\13NON1.SGM
13NON1
Federal Register / Vol. 71, No. 218 / Monday, November 13, 2006 / Notices
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 the 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 NYSEArca–2006–79 and
should be submitted on or before
December 4, 2006.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.22
Nancy M. Morris,
Secretary.
[FR Doc. E6–19063 Filed 11–9–06; 8:45 am]
BILLING CODE 8011–01–P
SMALL BUSINESS ADMINISTRATION
[Disaster Declaration #10640 and #10641]
Indiana Disaster Number IN–00008
U.S. Small Business
Administration.
ACTION: Amendment 1.
AGENCY:
This is an amendment of the
Presidential declaration of a major
disaster for the State of Indiana (FEMA–
1662–DR), dated 10/10/2006.
Incident: Severe Storms and Flooding.
Incident Period: 09/12/2006 through
09/14/2006.
EFFECTIVE DATE: 11/01/2006.
Physical Loan Application Deadline
Date: 12/05/2006.
EIDL Loan Application Deadline Date:
07/06/2007.
ADDRESSES: 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: The notice
of the Presidential disaster declaration
for the State of Indiana, dated 10/10/
2006 is hereby amended to include the
following areas as adversely affected by
the disaster:
Primary Counties: Warrick.
cprice-sewell on PROD1PC66 with NOTICES
SUMMARY:
22 17
CFR 200.30–3(a)(12).
VerDate Aug<31>2005
15:22 Nov 09, 2006
Jkt 211001
Contiguous Counties:
Indiana: Dubois, Pike, Spencer.
Kentucky: Daviess.
All other information in the original
declaration remains unchanged.
Arkansas: Ashley, Chicot, Union.
Mississippi: Warren.
Texas: Newton, Sabine, Shelby.
The Interest Rates are:
(Catalog of Federal Domestic Assistance
Numbers 59002 and 59008).
Roger B. Garland,
Acting Associate Administrator for Disaster
Assistance.
[FR Doc. E6–19053 Filed 11–9–06; 8:45 am]
BILLING CODE 8025–01–P
SMALL BUSINESS ADMINISTRATION
[Disaster Declaration # 10701 and # 10702]
Louisiana Disaster # LA–00007
U.S. Small Business
Administration.
ACTION: Notice.
AGENCY:
This is a Notice of the
Presidential declaration of a major
disaster for the State of Louisiana
(FEMA–1668–DR), dated 11/02/2006.
Incident: Severe Storms and Flooding.
Incident Period: 10/16/2006 and
continuing.
Effective Date: 11/02/2006.
Physical Loan Application Deadline
Date: 01/02/2007.
Economic Injury (EIDL) Loan
Application Deadline Date: 08/02/2007.
ADDRESSES: 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
President’s major disaster declaration on
11/02/2006, 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 Parishes (Physical Damage and
Economic Injury Loans):
Caldwell, Franklin, Grant, La Salle,
Madison, Morehouse, Natchitoches,
Richland, Sabine, Vernon, Winn.
Contiguous Parishes / Counties
(Economic Injury Loans Only):
Louisiana: Allen, Avoyelles,
Beauregard, Bienville, Catahoula,
De Soto, East Carroll, Jackson,
Ouachita, Rapides, Red River,
Tensas Union, West Carroll.
66213
Percent
For Physical Damage:
Homeowners With Credit Available Elsewhere ......................
Homeowners Without Credit
Available Elsewhere ..............
Businesses With Credit Available Elsewhere ......................
Other (Including Non-Profit Organizations)
With
Credit
Available Elsewhere ..............
Businesses And Non-Profit Organizations Without Credit
Available Elsewhere ..............
For Economic Injury:
Businesses & Small Agricultural
Cooperatives Without Credit
Available Elsewhere ..............
6.250
3.125
7.934
5.000
4.000
4.000
SUMMARY:
PO 00000
Frm 00058
Fmt 4703
Sfmt 4703
The number assigned to this disaster
for physical damage is 10701 6 and for
economic injury is 10702 0.
(Catalog of Federal Domestic Assistance
Numbers 59002 and 59008)
James E. Rivera,
Acting Associate Administrator for Disaster
Assistance.
[FR Doc. E6–19055 Filed 11–9–06; 8:45 am]
BILLING CODE 8025–01–P
SMALL BUSINESS ADMINISTRATION
National Small Business Development
Center Advisory Board; Public Meeting
The U.S. Small Business
Administration, National Small
Business Development Centers Advisory
Board will be conducting a conference
call to discuss such matters that may be
presented by members, and the staff of
the U.S. Small Business Administration.
The conference call will be held on
Tuesday, November 21, 2006 at 1 p.m.
eastern standard time.
The purpose of the meeting is to
discuss internal board matters such as
the status of proposed new Board
members, administrative issues, the
marketing of the SBDC Program, and to
follow up with the ‘‘Dialogue with the
State Directors’’ meeting held at the
ASBDC Conference in September.
Anyone wishing to make an oral
presentation to the Board must contact
Erika Fischer, Senior Program Analyst,
U.S. Small Business Administration,
Office of Small Business Development
Centers, 409 3rd Street, SW.,
E:\FR\FM\13NON1.SGM
13NON1
]]>Agencies
[Federal Register Volume 71, Number 218 (Monday, November 13, 2006)]
[Notices]
[Pages 66211-66213]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-19063]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-54690; File No. SR-NYSEArca-2006-79]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change Relating to
Extending the Time Period by Which the Exchange Will Amend the NASD-
NYSE Arca Options Agreement Pursuant to Rule 17d-2
November 2, 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 25, 2006, NYSE Arca, Inc. (``NYSE Arca'' 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. The Exchange filed the proposal as
a ``non-controversial'' 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 Exchange has asked the Commission to waive the 5-day
pre-filing notice requirement and the 30-day operative delay. See 15
U.S.C. 78s(b)(3)(A), 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 amend its undertaking \6\ to extend
for 90 days from the date of this filing the time period by which the
Exchange will enter into an agreement with the National Association of
Securities Dealers, Inc. (``NASD'') pursuant to Rule 17d-2 under the
Act \7\ (the ``NASD / NYSE Arca Options Agreement'' or ``Agreement'').
The Agreement would expand the allocation to NASD of regulatory
responsibility to encompass all the regulatory oversight and
enforcement responsibilities with respect to the options activities of
Archipelago Securities, L.L.C. (``Archipelago Securities''),\8\ except
for ``real-time market surveillance.''
---------------------------------------------------------------------------
\6\ See Securities Exchange Act Release No. 54238 (July 28,
2006), 71 FR 44758 (August 7, 2006) (SR-NYSEArca-2006-13) (OX
Approval Order).
\7\ 17 CFR 240.17d-2.
\8\ Archipelago Securities, a wholly-owned subsidiary of
Archipelago Holdings, Inc. and a registered broker-dealer, acts as
the outbound order router for the NYSE Arca Marketplace (formerly
known as the Archipelago Exchange) and, as such, is regulated as an
exchange ``facility'' of NYSE Arca and NYSE Arca Equities, Inc. See
15 U.S.C. 78c(a)(2). As such, any proposed rule change relating to
Archipelago Securities' order-routing function must be filed with
the Commission, and must operate in a manner that is consistent with
the provisions of the Act applicable to exchanges and with NYSE Arca
rules.
---------------------------------------------------------------------------
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 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
In connection with the Commission's approval of the Exchange's new
electronic options trading platform, OX, Archipelago Securities became
a routing broker for OX options orders on the Exchange.\9\ In Amendment
No. 3 to its filing seeking approval of the OX platform,\10\ the
Exchange proposed to clarify that NASD, a self-regulatory organization
unaffiliated with the Exchange or any of its affiliates, would continue
to carry out oversight and enforcement responsibilities as the
Designated Examining Authority designated by the Commission pursuant to
Rule 17d-1 under the Act \11\ with the
[[Page 66212]]
responsibility for examining Archipelago Securities for compliance with
the applicable financial responsibility rules. Furthermore, the
Exchange represented that it would enter into the NASD/NYSE Arca
Options Agreement pursuant to Rule 17d-2 under the Act,\12\ to expand
the allocation to NASD of regulatory responsibility to encompass all
the regulatory oversight and enforcement responsibilities with respect
to the options activities of Archipelago Securities, except for ``real-
time market surveillance.'' \13\ The Exchange agreed to submit the NASD
/ NYSE Arca Options Agreement to the Commission under Rule 17d-2 within
90 days of the date of the Commission's approval of the OX trading
platform.\14\ The 90 day period elapsed on October 26, 2006.
---------------------------------------------------------------------------
\9\ See OX Approval Order, supra note 6. Pursuant to NYSE Arca
Rule 6.1A(a)(15), which was adopted in connection with the
establishment of the new OX trading platform, the term ``OX Routing
Broker'' refers to the broker-dealer affiliate of the Exchange that
acts as agent for routing orders entered into OX of OTP Holders, OTP
Firms and OTP Firms' Sponsored Participants to other Market Centers
for execution whenever such routing is permitted by Exchange Rules.
Archipelago Securities is the Exchange's only OX Routing Broker.
\10\ See OX Approval Order, supra note 6.
\11\ 17 CFR 240.17d-1.
\12\ 17 CFR 240.17d-2.
\13\ See OX Approval Order, supra note 6.
\14\ Id.
---------------------------------------------------------------------------
On October 20, 2006, the Exchange submitted to the Commission a
draft NASD/NYSE Arca Options Agreement, but has not yet received
Commission approval. The Exchange believes that an extension of time
for an additional 90 days from the date of this filing to enter into
the NASD/NYSE Arca Options Agreement will give the Commission staff
sufficient time to publish and take action on the proposal.
The Exchange believes that the requested extension of time is
consistent with the Act and the rules and regulations thereunder, will
not significantly affect the protection of investors or the public
interest, and does not impose any significant burden on competition.
The Exchange notes that NASD already carries out oversight and
enforcement responsibilities as the Designated Examining Authority
designated by the Commission pursuant to Rule 17d-1 under the Act \15\
with the responsibility for examining Archipelago Securities for
compliance with the applicable financial responsibility rules.
---------------------------------------------------------------------------
\15\ 17 CFR 240.17d-1.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\16\ in general, and furthers the
objectives of Section 6(b)(5) of the Act,\17\ in particular, in that it
is designed to prevent fraudulent and manipulative acts and practices,
to promote just and equitable principles of trade, to foster
cooperation and coordination with persons engaged in regulating
clearing, settling, processing information with respect to, and
facilitating transactions in securities, 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.
---------------------------------------------------------------------------
\16\ 15 U.S.C. 78f(b).
\17\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
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
Written comments on the proposed rule change were neither solicited
nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing rule: (i) Does not significantly affect the
protection of investors or the public interest; (ii) does not impose
any significant burden on competition; and (iii) by its terms, does not
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,\18\ the proposed
rule change has become effective pursuant to Section 19(b)(3)(A) of the
Act \19\ and Rule 19b-4(f)(6) thereunder.\20\
---------------------------------------------------------------------------
\18\ Pursuant to Rule 19b-4(f)(6)(iii) under the Act, the
Exchange is required to give the Commission written notice of its
intent to file the proposed rule change, along with a brief
description and text of the proposed rule change, at least five
business days prior to the date of filing of the proposed rule
change, or such shorter time as designated by the Commission. The
Exchange has requested that the Commission waive the 5-day pre-
filing notice requirement. The Commission has determined to waive
this requirement for this filing.
\19\ 15 U.S.C. 78s(b)(3)(A).
\20\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
The Exchange has requested that the Commission waive the 30-day
operative delay, which would make the rule change effective and
operative upon filing. The Commission believes that waiving the 30-day
operative delay is consistent with the protection of investors and the
public interest. Such waiver will allow the Exchange to comply with its
undertaking made in connection with the OX Approval Order to submit the
NASD/NYSE Arca Options Agreement to the Commission. The Exchange
requests a waiver of the 30-day period on the basis that the current
deadline for entering into the NASD/NYSE Arca Options Agreement was
October 26, 2006, and a delay of 30 days would place the Exchange out
of compliance with its undertaking. Extending the compliance date for
the Exchange's undertaking by an additional 90 days will provide time
for the Exchange to finalize and file the Agreement. For these reasons,
the Commission designates the proposal to be effective and operative
upon filing with the Commission.\21\
---------------------------------------------------------------------------
\21\ 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).
---------------------------------------------------------------------------
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:
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 NYSEArca-2006-79 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 NYSEArca-2006-79. 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
[[Page 66213]]
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 the 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
NYSEArca-2006-79 and should be submitted on or before December 4, 2006.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\22\
---------------------------------------------------------------------------
\22\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Nancy M. Morris,
Secretary.
[FR Doc. E6-19063 Filed 11-9-06; 8:45 am]
BILLING CODE 8011-01-P
