Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Reflect the Trading Sessions and Trading Halt Procedures for Certain Securities Trading on NYSE Arca, LLC, 78501-78503 [E6-22396]
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Federal Register / Vol. 71, No. 250 / Friday, December 29, 2006 / Notices
with Section 6(b)(4) 9 of the Act
requiring exchanges to have rules that
provide for the equitable allocation of
reasonable dues, fees, and other charges
among its members and other persons
using its facilities, and Section 6(b)(5) 10
of the Act requiring exchanges to have
rules designed to protect investors and
the public interest.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The NYSE 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.
The NYSE has neither solicited nor
received written comments on the
proposed rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
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 the self-regulatory
organization consents, the Commission
will:
(A) By order approve the proposed
rule change, or
(B) Institute proceedings to determine
whether the proposed rule change
should be disapproved.
pwalker on PROD1PC69 with NOTICES
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views and
arguments concerning the foregoing,
including whether the proposed rule
change, as amended, is consistent with
the Act. The proposed rule change, as
amended, is based on, but not identical
to, the Uniform Code of Arbitration
(‘‘SICA Uniform Code’’) adopted by the
Securities Industry Conference on
Arbitration (‘‘SICA’’).
The Commission requests comments
on the differences between the NYSE
proposal and the SICA Uniform Code. In
particular, under SICA Uniform Code
Section 16(a), one arbitrator hears
claims up to $100,000; whereas the
NYSE proposes that one arbitrator
would hear claims not exceeding
$200,000. Should NYSE’s proposed rule
U.S.C. 78f(b)(4).
U.S.C. 78f(b)(5).
10 15
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Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send e-mail to rulecomments@sec.gov. Please include File
Number SR–NYSE–2006–61 on the
subject line.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
9 15
be consistent with the SICA Uniform
Code and only permit matters to be
resolved by one arbitrator if they
involve claims of $100,000 or less? In
the alternative, should customers or
non-members be able to request one
arbitrator for claims exceeding
$200,000? In addition, the SICA
Uniform Code does not contain
provisions similar to the amendments
proposed to NYSE Rules 601(d)(2) and
612(c)(1), as discussed above
Comments may be submitted by any
of the following methods:
78501
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.11
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E6–22401 Filed 12–28–06; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–54997; File No. SR–
NYSEArca–2006–77]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Reflect the Trading
Sessions and Trading Halt Procedures
for Certain Securities Trading on NYSE
Arca, LLC
December 21, 2006.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
Paper Comments
notice is hereby given that on December
• Send paper comments in triplicate
20, 2006, NYSE Arca, Inc. (‘‘NYSE
Arca’’ or ‘‘Exchange’’) through its
to Nancy M. Morris, Secretary,
wholly owned subsidiary NYSE Arca
Securities and Exchange Commission,
Equities, Inc. (‘‘NYSE Arca Equities’’),
100 F Street, NE., Washington, DC
filed with the Securities and Exchange
20549–1090.
Commission (‘‘Commission’’) the
All submissions should refer to File
proposed rule change as described in
Number SR–NYSE–2006–61. This file
Items I and II below, which Items have
number should be included on the
been substantially prepared by the
subject line if e-mail is used. To help the
Exchange. The Exchange filed the
Commission process and review your
proposal pursuant to Section 19(b)(3)(A)
comments more efficiently, please use
of the Act 3 and Rule 19b–4(f)(6)
only one method. The Commission will thereunder,4 which renders the proposal
post all comments on the Commission’s effective upon filing with the
Internet Web site (https://www.sec.gov/
Commission.
rules/sro/shtml). Copies of the
I. Self-Regulatory Organization’s
submission, all subsequent
Statement of the Terms of Substance of
amendments, all written statements
the Proposed Rule Change
with respect to the proposed rule
change that are filed with the
The Exchange, through NYSE Arca
Commission, and all written
Equities, is proposing to amend NYSE
communications relating to the
Arca Equities Rule 7.34 to reflect the
proposed rule change between the
trading sessions during which certain
Commission and any person, other than securities are eligible to trade on NYSE
Arca, LLC (‘‘NYSE Arca Marketplace’’),
those that may be withheld from the
the equities facility of NYSE Arca
public in accordance with the
Equities, and to provide that the
provisions of 5 U.S.C. 552, will be
Exchange shall maintain a list on its
available for inspection and copying in
Internet Web site that identifies all
the Commission’s Public Reference
Room. Copies of such filing also will be securities traded on the NYSE Arca
Marketplace that do not trade for the
available for inspection and copying at
duration of each of the three trading
the principal office of the NYSE. All
sessions specified in this rule. The text
comments received will be posted
of the proposed rule change is available
without change; the Commission does
on the Exchange’s Web site (https://
not edit personal identifying
www.nysearca.com/regulations/rules),
information from submissions. You
should submit only information that
11 17 CFR 200.30–3(a)(12).
you wish to make available publicly. All
1 15 U.S.C. 78s(b)(1).
submissions should refer to File number
2 17 CFR 240.19b–4.
SR–NYSE–2006–61 and should be
3 15 U.S.C. 78s(b)(3)(A).
submitted on or before January 19, 2007.
4 17 CFR 240.19b–4(f)(6).
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78502
Federal Register / Vol. 71, No. 250 / Friday, December 29, 2006 / Notices
at the principal office of the Exchange,
and at the Commission’s Public
Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of, and basis for,
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item III 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
pwalker on PROD1PC69 with NOTICES
1. Purpose
NYSE Arca Equities Rule 7.34
currently provides, in part, that the
NYSE Arca Marketplace shall have three
trading sessions each day: an Opening
Session (1 a.m. Pacific Time to 6:30 a.m.
Pacific Time), a Core Trading Session
(6:30 a.m. Pacific Time to 1 p.m. Pacific
Time), and a Late Trading Session (1
p.m. Pacific Time to 5 p.m. Pacific
Time), and that the Core Trading
Session for Exchange Traded Funds
defined in NYSE Arca Equities Rules
5.1(b)(13), 5.2(j)(3), and 8.100 shall
conclude at 1:15 p.m. Pacific Time.5
This filing proposes that the Core
Trading Session, for the securities
described in NYSE Arca Equities Rules,
8.200, 8.201, 8.202, 8.203, and 8.300
shall conclude at 1:15 p.m. Pacific Time
to reflect the recent adoption of these
rules.6 This is in addition to securities
described in NYSE Arca Equities Rules
5.1(b)(13), 5.2(j)(3), and 8.100. In
addition, this filing proposes to add
securities described in NYSE Arca
Equities Rule 5.1(b)(18) (defining
‘‘Exchange-Traded Funds’’) to securities
traded in the Core Trading Session.
The Exchange also proposes to
include in Rule 7.34 a list of those
securities which are eligible to trade in
one or more, but not all three, of these
trading sessions, and to maintain on its
Internet Web site (https://
5 NYSE Arca Equities Rules 5.1(b)(13), 5.2(j)(3),
and 8.100 relate to Unit Investment Trusts,
Investment Company Units, and Portfolio
Depositary Receipts, respectively.
6 NYSE Arca Equities Rules 8.200, 8.201, 8.202,
8.203, and 8.300 relate to Trust Issued Receipts,
Commodity-Based Trust Shares, Currency Trust
Shares, Commodity Index Trust Shares, and
Partnership Units, respectively.
VerDate Aug<31>2005
18:15 Dec 28, 2006
Jkt 211001
www.nysearca.com) a list that identifies
all securities traded on the NYSE Arca
Marketplace that do not trade for the
duration of each of the three sessions
specified in Rule 7.34.7 The purpose of
this proposed rule change is to provide
transparency with respect to the trading
hours eligibility of certain derivative
securities products.
Finally, the Exchange proposes to add
trading halt procedures applicable to
trading the securities described in NYSE
Arca Equities Rules 5.1(b)(13),
5.1(b)(18), 5.2(j)(3), 8.100, 8.200, 8.201,
8.202, 8.203, and 8.300 (each referred to
in proposed Rule 7.34 as ‘‘Derivative
Securities Product’’) on an unlisted
trading privileges (‘‘UTP’’) basis in the
Opening, Core, and Late Trading
Sessions.
The proposed amendment to Rule
7.34 provides that, in the Opening
Session, if a Derivative Securities
Product begins UTP trading on the
NYSE Arca Marketplace in the Opening
Session and subsequently a temporary
interruption occurs in the calculation or
wide dissemination of the Intraday
Indicative Value (‘‘IIV’’) or the value of
the underlying index, as applicable, to
such product, by a major market data
vendor, NYSE Arca may continue to
trade such product for the remainder of
the Opening Session.
During the Core Trading Session, if a
temporary interruption occurs in the
calculation or wide dissemination of the
applicable IIV or value of the underlying
index by a major market data vendor
and the listing market halts trading in
the product, NYSE Arca, upon
notification by the listing market of such
halt due to such temporary interruption,
also shall immediately halt trading in
the Derivative Securities Product on the
NYSE Arca Marketplace.
If the IIV or the value of the
underlying index continues not to be
calculated or widely available after the
close of the Core Trading Session, NYSE
Arca may trade the Derivative Securities
Product in the Late Trading Session
only if the listing market traded such
securities until the close of its regular
trading session without a halt. Finally,
if the IIV or the value of the underlying
index continues not to be calculated or
widely available as of the
commencement of the Opening Session
on the next business day, NYSE Arca
shall not commence trading of the
Derivative Securities Product in the
Opening Session that day. If an
interruption in the calculation or wide
7 The Exchange currently disseminates on https://
www.nysearca.com a list of derivative securities
products that trade only in the Core Trading
Session and those that also trade in the Opening
Session and/or the Late Trading Session.
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Sfmt 4703
dissemination of the IIV or the value of
the underlying index continues, NYSE
Arca may resume trading in the product
only if calculation and wide
dissemination of the IIV or the value of
the underlying index resumes or trading
in the product resumes in the listing
market.
2. Statutory Basis
The proposal is consistent with
Section 6(b) of the Act 8 in general and
Section 6(b)(5) of the Act 9 in particular
in that it is designed to promote just and
equitable principles of trade, to foster
cooperation and coordination with
persons engaged in facilitating
transactions in securities, to remove
impediments to and perfect the
mechanisms of a free and open market,
and 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 proposed rule
change does not:
(i) Significantly affect the protection
of investors or the public interest;
(ii) Impose any significant burden on
competition; and
(iii) Become operative for 30 days
from the date on which it was filed, or
such shorter time as the Commission
may designate if consistent with the
protection of investors and the public
interest, it has become effective
pursuant to Section 19(b)(3)(A) of the
Act 10 and Rule 19b–4(f)(6)
thereunder.11 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,
8 15
U.S.C. 78s(b).
U.S.C. 78s(b)(5).
10 15 U.S.C. 78s(b)(3)(A).
11 17 CFR 240.19b–4(f)(6).
9 15
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Federal Register / Vol. 71, No. 250 / Friday, December 29, 2006 / Notices
or otherwise in furtherance of the
purposes of the Act.
A proposed rule change filed under
Rule 19b–4(f)(6)12 normally does not
become operative prior to 30 days after
the date of filing. However, pursuant to
Rule 19b–4(f)(6)(iii), the Commission
may designate a shorter time if such
action is consistent with the protection
of investors and the public interest. The
Exchange has asked the Commission to
waive the 30-day operative delay.13 The
Commission believes that such waiver is
consistent with the protection of
investors and the public interest
because the proposed rule change
should provide transparency and more
clarity with respect to the trading hours
eligibility of certain derivative securities
products and should promote
consistency in the trading halts of
derivative securities. For these reasons,
the Commission designates the
proposed rule change as operative
immediately.14
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 e-mail to rulecomments@sec.gov. Please include File
Number SR–NYSEArca–2006–77 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–NYSEArca–2006–77. 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
pwalker on PROD1PC69 with NOTICES
12 Id.
13 17 CFR 240.19b–4(f)(6)(iii). In addition, Rule
19b–4(f)(6) requires an exchange 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
days prior to the date of filing of the proposed rule
change, or such shorter time as designated by the
Commission. The Commission has determined to
waive the five-day pre-filing notice requirement in
this case.
14 For purposes only of accelerating the operative
date of this proposal, the Commission has
considered the rule’s impact on efficiency,
competition and capital formation. See 15 U.S.C.
78c(f).
VerDate Aug<31>2005
18:15 Dec 28, 2006
Jkt 211001
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 offices of the Exchange.
All comments received will be posted
without change; the Commission does
not edit personal identifying
information from submissions. You
should submit only information that
you wish to make available publicly. All
submissions should refer to File
Number SR–NYSEArca–2006–77 and
should be submitted on or before
January 19, 2007.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.15
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E6–22396 Filed 12–28–06; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–55002; File No. SR–
NYSEArca–2006–32]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and Order
Granting Accelerated Approval of
Proposed Rule Change to Trade
Various iShares MSCI Index Funds
Pursuant to Unlisted Trading
Privileges
December 21, 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
18, 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
substantially prepared by the Exchange.
The Commission is publishing this
notice and order to solicit comments on
15 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
PO 00000
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78503
the proposed rule change from
interested persons and to approve the
proposed rule change on an accelerated
basis.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange, through its wholly
owned subsidiary NYSE Arca Equities,
Inc. (‘‘NYSE Arca Equities’’), proposes
to trade shares (‘‘Shares’’) of the
following Index Funds (‘‘Funds’’)
pursuant to unlisted trading privileges
(‘‘UTP’’) based on NYSE Arca Rule
5.2(j)(3):
• iShares MSCI Brazil (Symbol: EWZ)
• iShares MSCI South Africa (EZA)
• iShares MSCI South Korea (EWY)
• iShares MSCI Taiwan (EWT)
The text of the proposed rule change
is available on the Exchange’s Web site
(https://www.nysearca.com), at the
principal office of the Exchange, and at
the Commission’s Public Reference
Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of, and basis for,
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item III 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 is proposing to trade
the Shares of the Funds pursuant to
UTP. Each Fund seeks investment
results that correspond generally to the
price and yield performance, before fees
and expenses, of the applicable
underlying index (‘‘Index’’). Each Index
is calculated by Morgan Stanley Capital
Investment (‘‘MSCI’’) for each trading
day based on official closing prices of
the Index components in the applicable
foreign markets. Each Index consists of
stocks traded primarily on the
respective country’s stock exchange.
Each Fund utilizes a passive or indexing
investment approach, which attempts to
approximate the investment
performance of its benchmark index
through quantitative analytical
E:\FR\FM\29DEN1.SGM
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]]>Agencies
[Federal Register Volume 71, Number 250 (Friday, December 29, 2006)]
[Notices]
[Pages 78501-78503]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-22396]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-54997; File No. SR-NYSEArca-2006-77]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Reflect the
Trading Sessions and Trading Halt Procedures for Certain Securities
Trading on NYSE Arca, LLC
December 21, 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 December 20, 2006, NYSE Arca, Inc. (``NYSE Arca'' or ``Exchange'')
through its wholly owned subsidiary NYSE Arca Equities, Inc. (``NYSE
Arca Equities''), filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I and
II below, which Items have been substantially prepared by the Exchange.
The Exchange filed the proposal 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.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A).
\4\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange, through NYSE Arca Equities, is proposing to amend
NYSE Arca Equities Rule 7.34 to reflect the trading sessions during
which certain securities are eligible to trade on NYSE Arca, LLC
(``NYSE Arca Marketplace''), the equities facility of NYSE Arca
Equities, and to provide that the Exchange shall maintain a list on its
Internet Web site that identifies all securities traded on the NYSE
Arca Marketplace that do not trade for the duration of each of the
three trading sessions specified in this rule. The text of the proposed
rule change is available on the Exchange's Web site (https://
www.nysearca.com/regulations/rules),
[[Page 78502]]
at the principal office of the Exchange, and at the Commission's Public
Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of, and basis for, the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item III 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
NYSE Arca Equities Rule 7.34 currently provides, in part, that the
NYSE Arca Marketplace shall have three trading sessions each day: an
Opening Session (1 a.m. Pacific Time to 6:30 a.m. Pacific Time), a Core
Trading Session (6:30 a.m. Pacific Time to 1 p.m. Pacific Time), and a
Late Trading Session (1 p.m. Pacific Time to 5 p.m. Pacific Time), and
that the Core Trading Session for Exchange Traded Funds defined in NYSE
Arca Equities Rules 5.1(b)(13), 5.2(j)(3), and 8.100 shall conclude at
1:15 p.m. Pacific Time.\5\
---------------------------------------------------------------------------
\5\ NYSE Arca Equities Rules 5.1(b)(13), 5.2(j)(3), and 8.100
relate to Unit Investment Trusts, Investment Company Units, and
Portfolio Depositary Receipts, respectively.
---------------------------------------------------------------------------
This filing proposes that the Core Trading Session, for the
securities described in NYSE Arca Equities Rules, 8.200, 8.201, 8.202,
8.203, and 8.300 shall conclude at 1:15 p.m. Pacific Time to reflect
the recent adoption of these rules.\6\ This is in addition to
securities described in NYSE Arca Equities Rules 5.1(b)(13), 5.2(j)(3),
and 8.100. In addition, this filing proposes to add securities
described in NYSE Arca Equities Rule 5.1(b)(18) (defining ``Exchange-
Traded Funds'') to securities traded in the Core Trading Session.
---------------------------------------------------------------------------
\6\ NYSE Arca Equities Rules 8.200, 8.201, 8.202, 8.203, and
8.300 relate to Trust Issued Receipts, Commodity-Based Trust Shares,
Currency Trust Shares, Commodity Index Trust Shares, and Partnership
Units, respectively.
---------------------------------------------------------------------------
The Exchange also proposes to include in Rule 7.34 a list of those
securities which are eligible to trade in one or more, but not all
three, of these trading sessions, and to maintain on its Internet Web
site (https://www.nysearca.com) a list that identifies all securities
traded on the NYSE Arca Marketplace that do not trade for the duration
of each of the three sessions specified in Rule 7.34.\7\ The purpose of
this proposed rule change is to provide transparency with respect to
the trading hours eligibility of certain derivative securities
products.
---------------------------------------------------------------------------
\7\ The Exchange currently disseminates on https://
www.nysearca.com a list of derivative securities products that trade
only in the Core Trading Session and those that also trade in the
Opening Session and/or the Late Trading Session.
---------------------------------------------------------------------------
Finally, the Exchange proposes to add trading halt procedures
applicable to trading the securities described in NYSE Arca Equities
Rules 5.1(b)(13), 5.1(b)(18), 5.2(j)(3), 8.100, 8.200, 8.201, 8.202,
8.203, and 8.300 (each referred to in proposed Rule 7.34 as
``Derivative Securities Product'') on an unlisted trading privileges
(``UTP'') basis in the Opening, Core, and Late Trading Sessions.
The proposed amendment to Rule 7.34 provides that, in the Opening
Session, if a Derivative Securities Product begins UTP trading on the
NYSE Arca Marketplace in the Opening Session and subsequently a
temporary interruption occurs in the calculation or wide dissemination
of the Intraday Indicative Value (``IIV'') or the value of the
underlying index, as applicable, to such product, by a major market
data vendor, NYSE Arca may continue to trade such product for the
remainder of the Opening Session.
During the Core Trading Session, if a temporary interruption occurs
in the calculation or wide dissemination of the applicable IIV or value
of the underlying index by a major market data vendor and the listing
market halts trading in the product, NYSE Arca, upon notification by
the listing market of such halt due to such temporary interruption,
also shall immediately halt trading in the Derivative Securities
Product on the NYSE Arca Marketplace.
If the IIV or the value of the underlying index continues not to be
calculated or widely available after the close of the Core Trading
Session, NYSE Arca may trade the Derivative Securities Product in the
Late Trading Session only if the listing market traded such securities
until the close of its regular trading session without a halt. Finally,
if the IIV or the value of the underlying index continues not to be
calculated or widely available as of the commencement of the Opening
Session on the next business day, NYSE Arca shall not commence trading
of the Derivative Securities Product in the Opening Session that day.
If an interruption in the calculation or wide dissemination of the IIV
or the value of the underlying index continues, NYSE Arca may resume
trading in the product only if calculation and wide dissemination of
the IIV or the value of the underlying index resumes or trading in the
product resumes in the listing market.
2. Statutory Basis
The proposal is consistent with Section 6(b) of the Act \8\ in
general and Section 6(b)(5) of the Act \9\ in particular in that it is
designed to promote just and equitable principles of trade, to foster
cooperation and coordination with persons engaged in facilitating
transactions in securities, to remove impediments to and perfect the
mechanisms of a free and open market, and to protect investors and the
public interest.
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\8\ 15 U.S.C. 78s(b).
\9\ 15 U.S.C. 78s(b)(5).
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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 proposed rule change does not:
(i) Significantly affect the protection of investors or the public
interest;
(ii) Impose any significant burden on competition; and
(iii) Become operative for 30 days from the date on which it was
filed, or such shorter time as the Commission may designate if
consistent with the protection of investors and the public interest, it
has become effective pursuant to Section 19(b)(3)(A) of the Act \10\
and Rule 19b-4(f)(6) thereunder.\11\ 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,
[[Page 78503]]
or otherwise in furtherance of the purposes of the Act.
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\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 17 CFR 240.19b-4(f)(6).
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A proposed rule change filed under Rule 19b-4(f)(6)\12\ normally
does not become operative prior to 30 days after the date of filing.
However, pursuant to Rule 19b-4(f)(6)(iii), the Commission may
designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has asked
the Commission to waive the 30-day operative delay.\13\ The Commission
believes that such waiver is consistent with the protection of
investors and the public interest because the proposed rule change
should provide transparency and more clarity with respect to the
trading hours eligibility of certain derivative securities products and
should promote consistency in the trading halts of derivative
securities. For these reasons, the Commission designates the proposed
rule change as operative immediately.\14 \
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\12\ Id.
\13\ 17 CFR 240.19b-4(f)(6)(iii). In addition, Rule 19b-4(f)(6)
requires an exchange 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 days
prior to the date of filing of the proposed rule change, or such
shorter time as designated by the Commission. The Commission has
determined to waive the five-day pre-filing notice requirement in
this case.
\14\ For purposes only of accelerating the operative date of
this proposal, the Commission has considered the rule's impact on
efficiency, competition and capital formation. See 15 U.S.C. 78c(f).
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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 e-mail to rule-comments@sec.gov. Please include File
Number SR-NYSEArca-2006-77 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-NYSEArca-2006-77.
This file number should be included on the subject line if e-mail is
used. To help the Commission process and review your comments more
efficiently, please use only one method. The Commission will post all
comments on the Commission's Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the submission, all subsequent amendments,
all written statements with respect to the proposed rule change that
are filed with the Commission, and all written communications relating
to the proposed rule change between the Commission and any person,
other than those that may be withheld from the public in accordance
with the provisions of 5 U.S.C. 552, will be available for inspection
and copying in the Commission's Public Reference Room. Copies of such
filing also will be available for inspection and copying at the
principal offices of the Exchange. All comments received will be posted
without change; the Commission does not edit personal identifying
information from submissions. You should submit only information that
you wish to make available publicly. All submissions should refer to
File Number SR-NYSEArca-2006-77 and should be submitted on or before
January 19, 2007.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\15\
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\15\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E6-22396 Filed 12-28-06; 8:45 am]
BILLING CODE 8011-01-P
