Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Order Granting Accelerated Approval of Proposed Rule Change as Modified by Amendments 1 and 2 Thereto Relating to Arbitration, 3897-3898 [E7-1183]

Download as PDF Federal Register / Vol. 72, No. 17 / Friday, January 26, 2007 / Notices VI. Conclusion On the basis of the foregoing, the Commission finds that the proposed rule change is consistent with the requirements of the Act and in particular with the requirements of Section 6(b)(5) of the Act and the rules and regulations thereunder. It is therefore ordered, pursuant to Section 19(b)(2) of the Act, that the proposed rule change (File No. SR–NYSE–2006– 57) be and hereby is approved.7 For the Commission by the Division of Market Regulation, pursuant to delegated authority.8 Florence E. Harmon Deputy Secretary. [FR Doc. E7–1227 Filed 1–25–07; 8:45 am] SECURITIES AND EXCHANGE COMMISSION [Release No. 34–55141; File No. SR– NYSEArca–2006–55] Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Order Granting Accelerated Approval of Proposed Rule Change as Modified by Amendments 1 and 2 Thereto Relating to Arbitration January 19, 2007. sroberts on PROD1PC70 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 5, 2006, the NYSE Arca, Inc. (‘‘NYSE Arca’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’ or ‘‘SEC’’) the proposed rule as described in Items I, II and III below, which Items have been prepared by NYSE Arca. On December 21, 2006, NYSE Arca amended the proposed rule change (‘‘Amendment 1’’).3 NYSE Arca further amended the proposed rule change on January 5, 2007 (‘‘Amendment 2’’).4 The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons and to 7 In approving the proposed rule change, the Commission considered the proposal’s impact on the efficiency, competition, and capital formation. 15 U.S.C. 78c(f). 8 17 CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 Amendment 1 provided that the NYSE Arbitration Rules would apply to all arbitrations filed with NYSE Arca after December 31, 2006, as well as made minor stylistic changes to the proposed rule change. 4 Amendment 2 provided that the NYSE Arbitration Rules would apply to all arbitrations filed with NYSE Arca after January 31, 2007, as well as made a minor stylistic change to the proposed rule change. 17:19 Jan 25, 2007 Jkt 211001 I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend NYSE Arca Rule 12 to permit the arbitration rules of New York Stock Exchange, L.L.C. (NYSE Arbitration Rules) to govern arbitrations filed with the Exchange. The text of the proposed rule change is available on the Exchange’s Web site (http:// www.nysearca.com), at the Exchange’s principal office, 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 BILLING CODE 8011–01–P VerDate Aug<31>2005 approve the proposal on an accelerated basis. In its filing with the Commission, NYSE Arca included statements concerning the purpose of and basis for the proposed rule and discussed any comments it received on the proposed rule. The text of these statements may be examined at the places specified in Item IV below. The NYSE Arca 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 purpose of this proposed rule change is to amend NYSE Arca Rule 12 to permit all arbitrations filed with NYSE Arca after January 31, 2007, other than those arbitrations proposed to be specifically excepted in the rule, to be governed by the NYSE Arbitration Rules. In general, Rule 12, as proposed to be amended, would provide that any dispute, claim or controversy arising out of or in connection with the business of any Options Trading Permit Holder (‘‘OTP Holders’’) or OTP Firm or arising out of the employment or termination of employment of associated person(s) with any OTP Holder or OTP Firm may be arbitrated under Rule 12 as proposed to be amended. The rule, however, would except: (1) A dispute, claim, or controversy alleging employment discrimination (including a sexual harassment claim) in violation of a statute unless the parties have agreed to arbitrate it after the dispute arose; and (2) any type of dispute, claim, or controversy that is not permitted to be arbitrated under the NYSE Arbitration Rules, such as class action claims. PO 00000 Frm 00119 Fmt 4703 Sfmt 4703 3897 In addition, proposed Rule 12 would provide that the NYSE Arbitration Rules would apply to predispute arbitration agreements between NYSE Arca OTP Holders and OTP Firms and/or associated persons and their customers. Also, proposed Rule 12 would provide that if any matter comes to the attention of an arbitrator during and in connection with the arbitrator’s participation in a proceeding, either from the record of the proceeding or from material or communications related to the proceeding, that the arbitrator has reason to believe may constitute a violation of the Exchange’s rules or the federal securities law, the arbitrator may refer the matter to NYSE Regulation, Inc. for disciplinary investigation. With respect to payment of arbitration awards, proposed Rule 12 would provide that any OTP Holder, OTP Firm or associated person who fails to honor an award of arbitrators appointed will be subject to disciplinary proceedings in accordance with NYSE Arca Rule 10. Finally, proposed Rule 12 would provide that the submission of any matter to arbitration would in no way limit or preclude the right, action or determination by the Exchange that it would otherwise be authorized to adopt, administer or enforce. 2. Statutory Basis The Exchange states that the proposed change is consistent with Section 6(b)(5) of the Act 5 in that it promotes just and equitable principles of trade by ensuring that members and member organizations and the public have a fair and impartial forum for the resolution of their disputes. B. Self-Regulatory Organization’s Statement on Burden on Competition The Exchange does not believe that the proposed rule change, as amended, 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. 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. 5 15 E:\FR\FM\26JAN1.SGM U.S.C. 78f(b)(5). 26JAN1 3898 Federal Register / Vol. 72, No. 17 / Friday, January 26, 2007 / Notices Comments may be submitted by any of the following methods: Electronic Comments • Use the Commission’s Internet comment form (http://www.sec.gov/ rules/sro.shtml); or • Send an e-mail to rulecomments@sec.gov. Please include File No. SR–NYSEArca–2006–55 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 No. SR–NYSEArca–2006–55. 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 (http://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, 100 F Street, NE., Washington, DC 20549–1090. Copies of such filing will also be available for inspection and copying at the principal offices of NYSE Arca. 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 No. SR–NYSEArca–2006–55 and should be submitted on or before February 16, 2007. sroberts on PROD1PC70 with NOTICES IV. Commission’s Findings and Order Granting Accelerated Approval of Proposed Rule Change The Commission finds that the proposed rule change is consistent with the requirements of the Act and the rules and regulations thereunder, applicable to a national securities VerDate Aug<31>2005 17:19 Jan 25, 2007 Jkt 211001 exchange.6 In particular, the Commission finds that the proposed rule change is consistent with Section 6(b)(5) of the Act 7 in that it promotes just and equitable principles of trade by ensuring that members and member organizations and the public have a fair and impartial forum for the resolution of their disputes. The Commission also believes that the proposed rule change raises no issues that have not been previously considered by the Commission. The proposed rule change will merely amend NYSE Arca Rule 12 to permit the NYSE Arbitration Rules to govern the NYSE Arca’s arbitrations, except as specified in amended Rule 12. The NYSE Arbitration Rules have previously been approved by the Commission.8 After careful consideration, the Commission finds good cause, pursuant to Section 19(b)(2) of the Act,9 for approving the proposed rule change prior to the thirtieth day after the date of publication of notice in the Federal Register. Granting accelerated approval will help to expedite the integration of NYSE and NYSE Arca and remove uncertainty that could arise through the application of multiple sets of rules governing arbitrations in the NYSE forum. Accordingly, the Commission believes that there is good cause, consistent with Section 6(b)(5) of the Act,10 to approve the proposal on an accelerated basis. V. Conclusion It is therefore ordered, pursuant to Section 19(b)(2) of the Act,11 that the proposed rule change (SR–NYSEArca– 2006–55), as amended by Amendments 1 and 2, is hereby approved on an accelerated basis. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.12 Florence E. Harmon, Deputy Secretary. [FR Doc. E7–1183 Filed 1–25–07; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–55142; File No. SR– NYSEArca–2006–54] Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Order Granting Accelerated Approval of Proposed Rule Change as Modified by Amendments 1 and 2 Thereto Relating to Arbitration January 19, 2007. Pursuant to Section 19(b)(4) of the Securities Exchange Act of 1934 (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 notice is hereby given that on September 5, 2006, the NYSE Arca, Inc. (‘‘NYSE Arca’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’ or ‘‘SEC’’) the proposed rule as described in Items I, II and III below, which Items have been prepared by NYSE Arca. On December 21, 2006, NYSE Arca amended the proposed rule change (‘‘Amendment 1’’).3 NYSE Arca further amended the proposed rule change on January 5, 2007 (‘‘Amendment 2’’).4 The Commission is publishing this notice to solicit comments on the proposed rule change, as amended, from interested persons and to approve the proposal on an accelerated basis. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes, through its subsidiary, NYSE Arca Equities, Inc. (‘‘NYSE Arca Equities’’ or ‘‘Corporation’’), to amend NYSE Arca Equities Rule 12 to permit the arbitration rules of New York Stock Exchange, L.L.C. (NYSE Arbitration Rules) to govern arbitrations filed with the Corporation. The text of the proposed rule change and all subsequent amendments are available on the Exchange’s Web site (http:// www.nysearca.com), at the Exchange’s principal office, and at the Commission’s Public Reference Room. 1 15 6 In approving this proposal, the Commission has considered its impact on efficiency, competition, and capital formation. 15 U.S.C. 78c(f). 7 15 U.S.C. 78f(b)(5). 8 See 600 Series of the NYSE Rules. 9 15 U.S.C. 78s(b)(2). 10 15 U.S.C. 78f(b)(5). 11 15 U.S.C. 78s(b)(2). 12 17 CFR 200.30–3(a)(12). PO 00000 Frm 00120 Fmt 4703 Sfmt 4703 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 Amendment 1 provided that the NYSE Arbitration Rules would apply to all arbitrations filed with NYSE Arca Equities, Inc. after December 31, 2006, as well as made minor stylistic changes to the proposed rule change. 4 Amendment 2 provided that the NYSE Arbitration Rules would apply to all arbitrations filed with NYSE Arca Equities, Inc. after January 31, 2007. 2 17 E:\FR\FM\26JAN1.SGM 26JAN1

Agencies

[Federal Register Volume 72, Number 17 (Friday, January 26, 2007)]
[Notices]
[Pages 3897-3898]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-1183]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-55141; File No. SR-NYSEArca-2006-55]


Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing 
and Order Granting Accelerated Approval of Proposed Rule Change as 
Modified by Amendments 1 and 2 Thereto Relating to Arbitration

January 19, 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 5, 2006, the NYSE Arca, Inc. (``NYSE Arca'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``Commission'' or ``SEC'') the proposed rule as described in Items I, 
II and III below, which Items have been prepared by NYSE Arca. On 
December 21, 2006, NYSE Arca amended the proposed rule change 
(``Amendment 1'').\3\ NYSE Arca further amended the proposed rule 
change on January 5, 2007 (``Amendment 2'').\4\ The Commission is 
publishing this notice to solicit comments on the proposed rule change 
from interested persons and to approve the proposal on an accelerated 
basis.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Amendment 1 provided that the NYSE Arbitration Rules would 
apply to all arbitrations filed with NYSE Arca after December 31, 
2006, as well as made minor stylistic changes to the proposed rule 
change.
    \4\ Amendment 2 provided that the NYSE Arbitration Rules would 
apply to all arbitrations filed with NYSE Arca after January 31, 
2007, as well as made a minor stylistic change to the proposed rule 
change.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend NYSE Arca Rule 12 to permit the 
arbitration rules of New York Stock Exchange, L.L.C. (NYSE Arbitration 
Rules) to govern arbitrations filed with the Exchange. The text of the 
proposed rule change is available on the Exchange's Web site (http://
www.nysearca.com), at the Exchange's principal office, 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, NYSE Arca included statements 
concerning the purpose of and basis for the proposed rule and discussed 
any comments it received on the proposed rule. The text of these 
statements may be examined at the places specified in Item IV below. 
The NYSE Arca 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 purpose of this proposed rule change is to amend NYSE Arca Rule 
12 to permit all arbitrations filed with NYSE Arca after January 31, 
2007, other than those arbitrations proposed to be specifically 
excepted in the rule, to be governed by the NYSE Arbitration Rules. In 
general, Rule 12, as proposed to be amended, would provide that any 
dispute, claim or controversy arising out of or in connection with the 
business of any Options Trading Permit Holder (``OTP Holders'') or OTP 
Firm or arising out of the employment or termination of employment of 
associated person(s) with any OTP Holder or OTP Firm may be arbitrated 
under Rule 12 as proposed to be amended. The rule, however, would 
except: (1) A dispute, claim, or controversy alleging employment 
discrimination (including a sexual harassment claim) in violation of a 
statute unless the parties have agreed to arbitrate it after the 
dispute arose; and (2) any type of dispute, claim, or controversy that 
is not permitted to be arbitrated under the NYSE Arbitration Rules, 
such as class action claims.
    In addition, proposed Rule 12 would provide that the NYSE 
Arbitration Rules would apply to predispute arbitration agreements 
between NYSE Arca OTP Holders and OTP Firms and/or associated persons 
and their customers. Also, proposed Rule 12 would provide that if any 
matter comes to the attention of an arbitrator during and in connection 
with the arbitrator's participation in a proceeding, either from the 
record of the proceeding or from material or communications related to 
the proceeding, that the arbitrator has reason to believe may 
constitute a violation of the Exchange's rules or the federal 
securities law, the arbitrator may refer the matter to NYSE Regulation, 
Inc. for disciplinary investigation. With respect to payment of 
arbitration awards, proposed Rule 12 would provide that any OTP Holder, 
OTP Firm or associated person who fails to honor an award of 
arbitrators appointed will be subject to disciplinary proceedings in 
accordance with NYSE Arca Rule 10.
    Finally, proposed Rule 12 would provide that the submission of any 
matter to arbitration would in no way limit or preclude the right, 
action or determination by the Exchange that it would otherwise be 
authorized to adopt, administer or enforce.
2. Statutory Basis
    The Exchange states that the proposed change is consistent with 
Section 6(b)(5) of the Act \5\ in that it promotes just and equitable 
principles of trade by ensuring that members and member organizations 
and the public have a fair and impartial forum for the resolution of 
their disputes.
---------------------------------------------------------------------------

    \5\ 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, as 
amended, 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. 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.

[[Page 3898]]

Comments may be submitted by any of the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://
www.sec.gov/rules/sro.shtml); or
     Send an e-mail to rule-comments@sec.gov. Please include 
File No. SR-NYSEArca-2006-55 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 No. SR-NYSEArca-2006-55. 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 (http://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, 100 F Street, NE., 
Washington, DC 20549-1090. Copies of such filing will also be available 
for inspection and copying at the principal offices of NYSE Arca. 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 No. SR-NYSEArca-2006-55 and should be 
submitted on or before February 16, 2007.

IV. Commission's Findings and Order Granting Accelerated Approval of 
Proposed Rule Change

    The Commission finds that the proposed rule change 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\ in that it promotes just 
and equitable principles of trade by ensuring that members and member 
organizations and the public have a fair and impartial forum for the 
resolution of their disputes.
---------------------------------------------------------------------------

    \6\ In approving this proposal, the Commission has considered 
its impact on efficiency, competition, and capital formation. 15 
U.S.C. 78c(f).
    \7\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Commission also believes that the proposed rule change raises 
no issues that have not been previously considered by the Commission. 
The proposed rule change will merely amend NYSE Arca Rule 12 to permit 
the NYSE Arbitration Rules to govern the NYSE Arca's arbitrations, 
except as specified in amended Rule 12. The NYSE Arbitration Rules have 
previously been approved by the Commission.\8\
---------------------------------------------------------------------------

    \8\ See 600 Series of the NYSE Rules.
---------------------------------------------------------------------------

    After careful consideration, the Commission finds good cause, 
pursuant to Section 19(b)(2) of the Act,\9\ for approving the proposed 
rule change prior to the thirtieth day after the date of publication of 
notice in the Federal Register. Granting accelerated approval will help 
to expedite the integration of NYSE and NYSE Arca and remove 
uncertainty that could arise through the application of multiple sets 
of rules governing arbitrations in the NYSE forum. Accordingly, the 
Commission believes that there is good cause, consistent with Section 
6(b)(5) of the Act,\10\ to approve the proposal on an accelerated 
basis.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78s(b)(2).
    \10\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

V. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\11\ that the proposed rule change (SR-NYSEArca-2006-55), as 
amended by Amendments 1 and 2, is hereby approved on an accelerated 
basis.
---------------------------------------------------------------------------

    \11\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\12\
---------------------------------------------------------------------------

    \12\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E7-1183 Filed 1-25-07; 8:45 am]
BILLING CODE 8011-01-P