Self-Regulatory Organizations; New York Stock Exchange LLC; Order Approving a Proposed Rule Change and Amendment No. 1 Relating to NYSE Rule 1300 (Gold Shares) and NYSE Rule 51 (Hours of Business), 2057-2058 [E7-535]
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Federal Register / Vol. 72, No. 10 / Wednesday, January 17, 2007 / Notices
each year. The proposed rule change
was published for comment in the
Federal Register on December 7, 2006.3
The Commission received no comments
on the proposal. This order approves the
proposed rule change.
II. Description of the Proposed Rule
Change
A. Description of the Proposal
1. Background
NYSE Rule 342 requires supervision
of the offices, departments and business
activities of members and member
organizations. NYSE Rule 342.30
requires members and member
organizations to prepare an Annual
Report addressing specified compliance
issues by April 1 of each year. The
Exchange proposed to amend Rule
342.30 to require the report required
pursuant to Rule 342.30(e)(iii) (the
‘‘Process Report’’) in connection with a
member organization’s CEO certification
to be submitted to the member
organization’s board of directors and
audit committee (if such committee
exists) on or before April 1st of each
year. The purpose of the rule change
was to better harmonize the
requirements of Rule 342.30 with those
of NYSE Rule 354 (‘‘Reports to Control
Persons’’).
mstockstill on PROD1PC61 with NOTICES
Background
Rule 342.30
Rule 342.30 requires each member not
associated with a member organization
and each member organization to file
with the Exchange, by April 1st of each
year, a report (the ‘‘Annual Report’’)
outlining its supervision and
compliance efforts in prescribed
regulatory areas during the preceding
year and assessing the adequacy of its
ongoing compliance processes and
procedures. The Annual Report
submitted to the Exchange is also
required to include, pursuant to Rule
342.30(e), a certification by the CEO of
each member organization confirming
that the member organization has in
place processes to:
(A) Establish and maintain policies
and procedures reasonably designed to
achieve compliance with applicable
Exchange rules and Federal securities
laws and regulations;
(B) modify such policies and
procedures as business, regulatory and
legislative changes and events dictate;
and
(C) test the effectiveness of such
policies and procedures on a periodic
3 See Exchange Act Release No. 54847 (November
30, 2006), 71 FR 71012 (December 7, 2006) (the
‘‘Notice’’).
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13:58 Jan 16, 2007
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basis, the timing and extent of which is
reasonably designed to ensure
continuing compliance with Exchange
and Federal securities laws and
regulations.
Subsection (e)(iii) of Rule 342.30
requires these processes to be evidenced
in the Process Report, which is to be
reviewed by the CEO, the Chief
Compliance Officer, and any other
officers that the member organization
may deem necessary to make the
certification. Subsection (e)(iii) also
requires the Process Report to be
submitted to the member organization’s
board of directors and audit committee
(if such committee exists), although the
timing of this submission was not
explicitly stated in the rule. Prior to the
proposed rule change, the Exchange
interpreted the rule to require the
submission prior to CEO certification.
Rule 354
Subsection (a) of Rule 354 requires, in
relevant part, that each member
organization submit, by April 1st of
each year, a copy of the Rule 342.30
Annual Report (also due to the
Exchange by April 1st) to one or more
of its control persons or, if the member
organization has no control person, to
the audit committee of its board of
directors or its equivalent committee or
group.
In order to better harmonize the
Process Report submission requirements
of Rule 342.30(e)(iii) with the Annual
Report submission requirements of Rule
354(a), the Exchange proposed to amend
Rule 342.30(e)(iii) to require each
member organization to submit the
Process Report to its board of directors
and audit committee (if such committee
exists) on or before April 1st of each
year, consistent with the timing
requirements of Rule 354(a) with respect
to submission of the Annual Report. The
Exchange stated that it believed that this
would promote timely submission of the
Process Report to member organizations’
boards of directors and audit
committees, while also serving the
practical purpose of allowing member
organizations to submit the Process
Report together with the Annual Report
so that the two may be reviewed as a
single comprehensive package.
III. Discussion
After careful review, the Commission
finds that the proposed rule change is
consistent with Section 6(b)4 of the Act
in general and Section 6(b)(5) of the
Act‘‘5 in particular, which require that
the rules of the Exchange be designed to
4 15
5 15
PO 00000
U.S.C. 78f(b)
U.S.C. 78f(b)(5)
Frm 00081
Fmt 4703
Sfmt 4703
2057
prevent fraudulent and manipulative
acts and practices, to promote just and
equitable principles of trade and, in
general, to protect investors and the
public interest.6 The proposed rule
change promotes timely submission of
substantive regulatory material to
member organizations’ governing bodies
by coordinating the timing requirements
of Rule 342.30(e)(iii) (Process Report)
and Rule 354(a) (Submission of Annual
Report to Control Persons). This should
promote compliance by allowing
member organizations’ governing bodies
to review both reports at the same time.
The proposed rule change will also
clarify the appropriate timing for
submission of the Process Report and
the Annual Report.
V. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act 7 that the
proposed rule change (SR–NYSE–2006–
97) be, and hereby is, approved.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.8
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–528 Filed 1–16–07; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–55067; File No. SR–NYSE–
2006–80]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Order
Approving a Proposed Rule Change
and Amendment No. 1 Relating to
NYSE Rule 1300 (Gold Shares) and
NYSE Rule 51 (Hours of Business)
January 9, 2007.
I. Introduction
On October 2, 2006, the New York
Stock Exchange LLC (‘‘NYSE’’ or
‘‘Exchange’’) filed with the Securities
and Exchange Commission
‘‘Commission’’), pursuant to Section
19(b)(1) of the Securities Exchange Act
of 1934, as amended (‘‘Act’’)1 and Rule
19b–4 thereunder,2 a proposed rule
change to amend NYSE Rule 1300 (Gold
Shares) and NYSE Rule 51 (Hours for
Business) to allow streetTRACKS Gold
Shares (‘‘Gold Shares’’) to open for
6 In approving this proposed rule change, the
Commission notes that it has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. 15 U.S.C. 78c(f).
7 15 U.S.C. 78s(b)(2).
8 17 CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(l).
2 17 CFR 240.19b–4.
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Federal Register / Vol. 72, No. 10 / Wednesday, January 17, 2007 / Notices
trading at 8:20 a.m. On November 6,
2006, the Exchange filed Amendment
No. 1.3 The proposed rule change, as
amended, was published for comment
in the Federal Register on November 28,
2006.4 The Commission received no
comments on the proposal. This order
approves the proposed rule change, as
modified by Amendment No. 1.
II. Description of the Proposal
The Exchange proposed to amend
NYSE Rule 1300 (Gold Shares) and
NYSE Rule 51 (Hours for Business) to
allow Gold Shares to open for trading at
8:20 a.m.5 Gold Shares represent units
of fractional undivided interest in and
ownership of the streetTRACKS Gold
Trust (the ‘‘Trust’’). The Trust holds
gold bullion and the investment
objective of the Trust is to reflect the
performance of the price of gold bullion,
less the Trust’s expenses.
Except for the new opening time,
trading in Gold Shares will operate as it
does today. The current assigned
specialist will continue as the assigned
specialist and the stock will continue to
trade at its current post and panel. All
Exchange systems will be operative
beginning at 8:20 a.m. and throughout
the trading day including those systems
that provide audit trail information. The
Exchange surveillances that currently
operate during market hours will be in
place to coincide with the 8:20 a.m.
opening. Further, either a Floor
Governor or two Floor Officials will be
available upon the 8:20 a.m. opening.
All Exchange Rules will apply upon the
open at 8:20 a.m. and throughout the
trading day.
The Exchange represented that the
updated spot price of gold and the
Intraday Indicative Value (‘‘IIV’’) for
Gold Shares would be available at 8:20
a.m. on the Trust’s Web site
(www.streettracksgoldshares.com). The
IIV is calculated by the Trust’s Sponsor,
World Trust Gold Services, LLC. The
Exchange’s Web site (https://
www.nyse.com) provides a link to the
Trust’s Web site. The spot price of gold
and the IIV on the Trust’s Web site are
subject to a 5 to 10 second delay.
with the requirements of the Act and the
rules and regulations thereunder
applicable to a national securities
exchange.6 In particular, the
Commission finds that the proposed
rule change is consistent with Section
6(b)(5) of the Act,7 which requires that
an exchange have rules designed, among
other things, 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 Exchange stated that it proposes
to amend its Rules 1300 and 51 to allow
the opening of Gold Shares for trading
at 8:20 a.m. in order to remain
competitive and in light of the fact that
interest in commodity-based securities
has increased. An 8:20 a.m. opening
would coincide with the opening of
COMEX trading in gold futures and
gold options and thus permit trading in
Gold Shares to start at the same time as
other gold-based instruments. The
Commission believes that an 8:20 a.m.
opening would give customers the
opportunity to trade an equity product
based on the price of gold from the time
that gold futures and options on gold
futures begin trading on the COMEX
and would, therefore, provide the
Exchange customers with better
opportunities for exercising their
investment choices.
IV. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,8 that the
proposed rule change (SR–NYSE–2006–
80), as modified by Amendment No. 1,
be, and it hereby is, approved.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.9
Nancy M. Morris,
Secretary.
[FR Doc. E7–535 Filed 1–16–07; 8:45 am]
BILLING CODE 8011–01–P
mstockstill on PROD1PC61 with NOTICES
III. Discussion and Commission
Findings
After careful consideration, the
Commission finds that the proposed
rule change, as amended, is consistent
3 See Form 19b–4 dated November 6, 2006
(‘‘Amendment No. 1’’). Amendment No. 1 replaced
the original filing in its entirety.
4 See Securities Exchange Act Release No. 54801
(November 21, 2006), 71 FR 68870 (SR–NYSE–
2006–80).
5 Trading in Gold Shares has been offered on the
Exchange since 2004.
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13:58 Jan 16, 2007
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6 In approving this rule change, the Commission
notes that it has considered the proposed rule’s
impact on efficiency, competition, and capital
formation. See 15 U.S.C. 78c(f).
7 15 U.S.C. 78f(b)(5).
8 15 U.S.C. 78s(b)(2).
9 17 CFR 200.30–3(a)(12).
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SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–55072; File Nos. SR–NYSE–
2006–78; SR–NASD–2006–113]
Self-Regulatory Organizations; New
York Stock Exchange LLC and the
National Association of Securities
Dealers, Inc.; Notice of Filing of
Proposed Rule Changes To Amend
NYSE Rules 472 and 344, and NASD
Rules 1050 and 2711 Relating to
Research Analyst Conflicts of Interest
January 9, 2007.
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 27, 2006, the New York
Stock Exchange LLC (‘‘NYSE’’ or the
‘‘Exchange’’) filed with the Securities
and Exchange Commission (‘‘SEC’’ or
‘‘Commission’’) the proposed rule
change. On December 20, 2006, NYSE
filed Amendment No. 1 to its proposed
rule change.3
On September 27, 2006, the National
Association of Securities Dealers, Inc.
(‘‘NASD’’) filed with the Commission
the proposed rule change. On November
17, 2006, NASD filed Amendment No.
1 to its proposed rule change.4
The proposed rule changes are
described in Items I, II, and III below,
which Items have substantially been
prepared by the NYSE and NASD (the
‘‘SROs’’). The Commission is publishing
this notice to solicit comments on the
proposed rule changes, as amended,
from interested persons.
I. Self-Regulatory Organizations’
Statements of the Terms of Substance of
the Proposed Rule Changes
The Exchange proposes to amend
certain provisions of NYSE Rules 472
and 344. These amendments eliminate
the exception for pre-publication factual
verification review of research reports
by non-research personnel; change the
quiet periods surrounding securities
offerings and the release of lock-up
agreements; allow member
organizations to develop policies and
procedures if they choose to prohibit
research analysts from holding
securities for companies they cover;
alter the format for certain disclosures
in research reports; and extend the antiretaliation prohibitions to all employees
of a member organization, not just
investment banking.
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 NYSE Amendment No. 1 makes minor revisions
to the original filing.
4 NASD Amendment No. 1 makes minor revisions
to the original filing.
2 17
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]]>Agencies
[Federal Register Volume 72, Number 10 (Wednesday, January 17, 2007)]
[Notices]
[Pages 2057-2058]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-535]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-55067; File No. SR-NYSE-2006-80]
Self-Regulatory Organizations; New York Stock Exchange LLC; Order
Approving a Proposed Rule Change and Amendment No. 1 Relating to NYSE
Rule 1300 (Gold Shares) and NYSE Rule 51 (Hours of Business)
January 9, 2007.
I. Introduction
On October 2, 2006, the New York Stock Exchange LLC (``NYSE'' or
``Exchange'') filed with the Securities and Exchange Commission
``Commission''), pursuant to Section 19(b)(1) of the Securities
Exchange Act of 1934, as amended (``Act'')\1\ and Rule 19b-4
thereunder,\2\ a proposed rule change to amend NYSE Rule 1300 (Gold
Shares) and NYSE Rule 51 (Hours for Business) to allow
streetTRACKS[supreg] Gold Shares (``Gold Shares'') to open for
[[Page 2058]]
trading at 8:20 a.m. On November 6, 2006, the Exchange filed Amendment
No. 1.\3\ The proposed rule change, as amended, was published for
comment in the Federal Register on November 28, 2006.\4\ The Commission
received no comments on the proposal. This order approves the proposed
rule change, as modified by Amendment No. 1.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(l).
\2\ 17 CFR 240.19b-4.
\3\ See Form 19b-4 dated November 6, 2006 (``Amendment No. 1'').
Amendment No. 1 replaced the original filing in its entirety.
\4\ See Securities Exchange Act Release No. 54801 (November 21,
2006), 71 FR 68870 (SR-NYSE-2006-80).
---------------------------------------------------------------------------
II. Description of the Proposal
The Exchange proposed to amend NYSE Rule 1300 (Gold Shares) and
NYSE Rule 51 (Hours for Business) to allow Gold Shares to open for
trading at 8:20 a.m.\5\ Gold Shares represent units of fractional
undivided interest in and ownership of the streetTRACKS[supreg] Gold
Trust (the ``Trust''). The Trust holds gold bullion and the investment
objective of the Trust is to reflect the performance of the price of
gold bullion, less the Trust's expenses.
---------------------------------------------------------------------------
\5\ Trading in Gold Shares has been offered on the Exchange
since 2004.
---------------------------------------------------------------------------
Except for the new opening time, trading in Gold Shares will
operate as it does today. The current assigned specialist will continue
as the assigned specialist and the stock will continue to trade at its
current post and panel. All Exchange systems will be operative
beginning at 8:20 a.m. and throughout the trading day including those
systems that provide audit trail information. The Exchange
surveillances that currently operate during market hours will be in
place to coincide with the 8:20 a.m. opening. Further, either a Floor
Governor or two Floor Officials will be available upon the 8:20 a.m.
opening. All Exchange Rules will apply upon the open at 8:20 a.m. and
throughout the trading day.
The Exchange represented that the updated spot price of gold and
the Intraday Indicative Value (``IIV'') for Gold Shares would be
available at 8:20 a.m. on the Trust's Web site
(www.streettracksgoldshares.com). The IIV is calculated by the Trust's
Sponsor, World Trust Gold Services, LLC. The Exchange's Web site
(https://www.nyse.com) provides a link to the Trust's Web site. The spot
price of gold and the IIV on the Trust's Web site are subject to a 5 to
10 second delay.
III. Discussion and Commission Findings
After careful consideration, the Commission finds that the proposed
rule change, as amended, is consistent with the requirements of the Act
and the rules and regulations thereunder applicable to a national
securities exchange.\6\ In particular, the Commission finds that the
proposed rule change is consistent with Section 6(b)(5) of the Act,\7\
which requires that an exchange have rules designed, among other
things, 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.
---------------------------------------------------------------------------
\6\ In approving this rule change, the Commission notes that it
has considered the proposed rule's impact on efficiency,
competition, and capital formation. See 15 U.S.C. 78c(f).
\7\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
The Exchange stated that it proposes to amend its Rules 1300 and 51
to allow the opening of Gold Shares for trading at 8:20 a.m. in order
to remain competitive and in light of the fact that interest in
commodity-based securities has increased. An 8:20 a.m. opening would
coincide with the opening of COMEX[supreg] trading in gold futures and
gold options and thus permit trading in Gold Shares to start at the
same time as other gold-based instruments. The Commission believes that
an 8:20 a.m. opening would give customers the opportunity to trade an
equity product based on the price of gold from the time that gold
futures and options on gold futures begin trading on the COMEX[supreg]
and would, therefore, provide the Exchange customers with better
opportunities for exercising their investment choices.
IV. Conclusion
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\8\ that the proposed rule change (SR-NYSE-2006-80), as modified by
Amendment No. 1, be, and it hereby is, approved.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78s(b)(2).
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\9\
---------------------------------------------------------------------------
\9\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Nancy M. Morris,
Secretary.
[FR Doc. E7-535 Filed 1-16-07; 8:45 am]
BILLING CODE 8011-01-P
