Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Rule 122 (Orders With More Than One Broker) Until the Availability of Full d-Quote Functions in a Particular Security or March 5, 2007, Whichever Comes First, 6799-6801 [E7-2406]
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Federal Register / Vol. 72, No. 29 / Tuesday, February 13, 2007 / Notices
III. Discussion
Section 17A(b)(3)(F) of the Act
requires that the rules of a clearing
agency be designed to assure the
safeguarding of securities and funds
which are in the custody or control of
the clearing agency or for which it is
responsible. The Commission first
approved Rule 30 to permit DTC to
provide the Canadian-Link Service in
2005.4 In its order granting approval of
Rule 30, the Commission found that rule
satisfies the requirements of Section
17A of the Act because while
streamlining the clearance and
settlement of Canadian Dollar
transactions at DTC, it includes
sufficient procedures to assure the
safeguarding of securities and funds
which are in DTC’s custody or control
or for which it is responsible.
The proposed rule change, by adding
to the transactions that are eligible to be
cleared and settled through the
Canadian-Link Service, is designed to
encourage more CDS-Link Participants
to use and to benefit from the
operational and cost efficiencies of the
Canadian-Link Service. We are satisfied
with DTC’s description of the rule
change as an enhancement that does not
otherwise affect the operation of the
Canadian-Link Service as it was
previously approved by the
Commission. In addition, the
corresponding changes made to DTC’s
risk management procedures and the
clarifying amendments made to the
terminology in Rule 30 should assure
that DTC can offer U.S. Dollar
settlement for the Canadian-Link
Service without affecting DTC’s ability
to safeguard securities and funds which
are in its custody or control or for which
it is responsible.
IV. Conclusion
jlentini on PROD1PC65 with NOTICES
Jkt 211001
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–55244; File No. SR–NYSE–
2007–11]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change Relating to
Rule 122 (Orders With More Than One
Broker) Until the Availability of Full dQuote Functions in a Particular
Security or March 5, 2007, Whichever
Comes First
February 5, 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 February
5, 2007, the New York Stock Exchange
LLC (‘‘NYSE’’ or ‘‘Exchange’’) filed with
the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I and II below, which Items have
been substantially prepared by the selfregulatory organization. NYSE filed the
proposed rule change pursuant to
Section 19(b)(3) of the Act 3 and Rule
19b–4(f)(6) thereunder,4 which renders
the proposed rule change effective upon
filing with the Commission. 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
6 17
CFR 200.30–3(a)(12).
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 See Securities Exchange Act Release No. 54577
(October 5, 2006), 71 FR 60208 (October 12, 2006)
(SR–NYSE–2006–36).
6 See Exchange Rules 13 and 123A.30(a).
Exchange Rule 123A.30(a) describes a CAP–DI
order as: ‘‘The elected or converted portion of a
‘percentage order that is convertible on a
destabilizing tick and designated immediate
execution or cancel election’ (‘‘CAP–DI order’’) may
be automatically executed and may participate in a
sweep.’’
1 15
4 Securities Exchange Act Release No. 52784
(November 16, 2005), 71 FR 70902 (November 23,
2005) (File No. SR–DTC–2005–08).
5 In approving the proposed rule change, the
Commission considered the proposal’s impact on
efficiency, competition and capital formation. 15
U.S.C. 78c(f).
16:55 Feb 12, 2007
BILLING CODE 8010–01–P
The Exchange proposes to continue
the Floor brokers’ ability to maintain
discretionary e-Quotes (‘‘d-Quotes’’) 5
and CAP–DI orders 6 in a security on the
same side of the market for the same
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 Section 17A of the Act and
the rules and regulations thereunder.5
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act, that the
proposed rule change (File No. SR–
DTC–2006–15) be and hereby is
approved.
VerDate Aug<31>2005
For the Commission by the Division of
Market Regulation, pursuant to delegated
authority.6
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–2419 Filed 2–12–07; 8:45 am]
PO 00000
Frm 00092
Fmt 4703
Sfmt 4703
6799
order that are capable of trading at the
same price until the completion of
Phase IV implementation of the HYBRID
MARKETSM (‘‘Hybrid Market’’) in the
relevant security or until March 5, 2007,
whichever comes first. The text of the
proposed rule change is available on the
Exchange’s Web site (www.nyse.com), at
the Exchange’s Office of the Secretary,
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
self-regulatory organization included
statements concerning the purpose of
and basis for the proposed rule change.
The text of these statements may be
examined at the places specified in Item
IV below. The self-regulatory
organization has prepared summaries,
set forth in sections A, B, and C below,
of the most significant aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
On October 25, 2006, the Exchange
filed with the Commission an
amendment to Rule 122 to permit Floor
brokers to enter d-Quotes and CAP–DI
orders in a security on the same side of
the market for the same underlying
order that are capable of trading at the
same price until the implementation of
full d-Quoting functionality in the
relevant security or until February 5,
2007, whichever came first.7
On January 25, 2007, the Exchange
commenced the implementation of
Phase IV of the Hybrid Market, which
includes the remaining d-Quote
functions: (i) The ability to trade against
non-marketable interest within a Floor
broker’s discretionary range and (ii)
routing control for Floor brokers with
respect to d-Quotes.8
The Exchange anticipates that the
implementation of Phase IV will not be
completed as originally anticipated by
February 5, 2007. Through this filing the
Exchange therefore requests to extend
Floor brokers’ ability to enter d-Quotes
and CAP–DI orders in a security on the
same side of the market for the same
orders that are capable of trading at the
same price until the implementation of
7 See Securities Exchange Act Release No. 54653
(October 26, 2006), 71 FR 64594 (November 2, 2006)
(SR–NYSE–2006–94).
8 Other d-Quote functions were implemented in
Phase III.
E:\FR\FM\13FEN1.SGM
13FEN1
6800
Federal Register / Vol. 72, No. 29 / Tuesday, February 13, 2007 / Notices
full d-Quoting functionality in the
relevant security or until March 5, 2007
whichever comes first.
The Exchange believes that extending
the time period in which Floor brokers
have this capability is necessary in
order to ensure that Floor brokers
remain competitive. Currently, the
specialist can send electronically a ‘‘hit
bid’’ or ‘‘take offer’’ message based on
an incoming order that would create a
new best bid or best offer; thus allowing
the specialist to trade electronically
with the newly published bid or offer.
Without complete d-Quote
functionality, a Floor broker only has
the ability to interact manually with
such new bid or offer. As a result, the
speed disparity between a manual
action and an electronic one places the
Floor broker at a competitive
disadvantage.
While a Floor broker can seek to trade
at the bid or offer price by manually
‘‘hitting the bid’’ or ‘‘taking the offer’’
the Floor broker can also send a CAP–
DI order to the specialist for conversion
or election at that price. Marketable
CAP–DI orders are automatically
converted and trade along with
specialist proprietary executions.
Accordingly, by allowing Floor brokers
to have CAP–DI orders and d-Quotes,
they retain the ability to compete with
specialist algorithmic trading for
executions involving marketable
incoming orders via discretionary
pricing instructions, but do not miss
participating in executions when
specialists algorithmically hit a bid or
take an offer.
jlentini on PROD1PC65 with NOTICES
2. Statutory Basis
The basis under the Act for this
proposed rule change is the requirement
under Section 6(b)(5) of the Act 9 that an
Exchange have rules that are designed to
promote just and equitable principles of
trade, to remove impediments to and
perfect the mechanism of a free and
open market and a national market
system and, in general, to protect
investors and the public interest. The
proposed rule change also is designed to
support the principles of Section
11A(a)(1) of the Act 10 in that it seeks to
assure economically efficient execution
of securities transactions, make it
practicable for brokers to execute
investors’ orders in the best market and
provide an opportunity for investors’
orders to be executed without the
participation of a dealer.
9 15
U.S.C. 78f(b)(5).
U.S.C. 78k–1(a)(1).
10 15
VerDate Aug<31>2005
16:55 Feb 12, 2007
Jkt 211001
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
The Exchange 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
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) by its
terms, 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 11 and Rule 19b–4(f)(6)
thereunder.12
A proposed rule change filed under
Rule 19b–4(f)(6) normally may not
become operative prior to 30 days after
the date of filing. However, Rule 19b–
4(f)(6)(iii) 13 permits the Commission to
designate a shorter time if such action
is consistent with the protection of
investors and the public interest. The
Exchange has requested that the
Commission waive the 30-day operative
delay and designate the proposed rule
change immediately operative upon
filing. The Commission believes that
waiver of the 30-day operative delay is
consistent with the protection of
investors and the public interest.
Specifically, the Commission believes
that the proposal would enable floor
brokers to continue to compete with
specialists in certain trades on behalf of
their customers, while the Exchange is
in the process of implementing the dQuote functions. Accordingly, the
Commission designates the proposal to
be effective and operative upon filing
with the Commission until the
availability of full d-Quote functions in
a particular security or March 5, 2007,
whichever comes first.14
11 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
13 17 CFR 240.19b–4(f)(6)(iii).
14 For purposes only of waiving the operative
delay for this proposal, the Commission has
considered the proposed rule’s impact on
12 17
PO 00000
Frm 00093
Fmt 4703
Sfmt 4703
At any time within 60 days of the
filing of the proposed rule change, the
Commission may summarily abrogate
such proposed 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 SR–NYSE–2007–11 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Nancy M. Morris, Secretary,
Securities and Exchange Commission,
100 F Street, NE, Washington, DC
20549–1090.
All submissions should refer to File
Number SR–NYSE–2007–11. 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 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
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
E:\FR\FM\13FEN1.SGM
13FEN1
Federal Register / Vol. 72, No. 29 / Tuesday, February 13, 2007 / Notices
submissions should refer to File
Number SR–NYSE–2007–11 and should
be submitted on or before March 6,
2007.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.15
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–2406 Filed 2–12–07; 8:45 am]
Percent
Other (Including Non-Profit Organizations) With Credit Available
Elsewhere: ................................
Businesses And Non-Profit Organizations Without Credit Available Elsewhere: ........................
5.250
4.000
The number assigned to this disaster
for physical damage is 10799 5 and for
economic injury is 10800 0.
The State which received an EIDL
Declaration # is Colorado
BILLING CODE 8010–01–P
SMALL BUSINESS ADMINISTRATION
[Disaster Declaration # 10799 and # 10800]
(Catalog of Federal Domestic Assistance
Numbers 59002 and 59008)
AGENCY:
Steven C. Preston,
Administrator.
[FR Doc. E7–2460 Filed 2–12–07; 8:45 am]
ACTION:
BILLING CODE 8025–01–P
Colorado Disaster # CO–00014
Small Business Administration.
Notice.
jlentini on PROD1PC65 with NOTICES
SUMMARY: This is a notice of an
Administrative declaration of a disaster
for the State of COLORADO dated 02/
07/2007.
Incident: Fire.
Incident Period: 01/16/2007.
Effective Date: 02/07/2007.
Physical Loan Application Deadline
Date: 04/09/2007.
Economic Injury (EIDL) Loan
Application Deadline Date: 11/07/2007.
ADDRESSES: Submit completed loan
applications to: 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
Administrator’s disaster declaration,
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 Counties: El Paso.
Contiguous Counties:
Colorado: Crowley; Douglas; Elbert;
Fremont; Lincoln; Pueblo; Teller.
The Interest Rates are:
Homeowners With Credit Available Elsewhere: ........................
Homeowners
Without
Credit
Available Elsewhere: .................
Businesses With Credit Available
Elsewhere: ................................
Businesses & Small Agricultural
Cooperatives Without Credit
Available Elsewhere: .................
15 17
CFR 200.30–3(a)(12).
VerDate Aug<31>2005
16:55 Feb 12, 2007
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
Notice of Intent To Rule on Request To
Release Airport Property at the
Tillamook Airport, Tillamook, OR
Federal Aviation
Administration (FAA), DOT.
ACTION: Notice of Request to Release
Airport Property.
AGENCY:
SUMMARY: The FAA proposes to rule and
invite public comment on the release of
land at Tillamook Airport under the
provisions of Section 125 of the
Wendell H. Ford Aviation Investment
Reform Act for the 21st Century (AIR
21), now 49 U.S.C. 47107(h)(2).
DATES: Comments must be received on
or before March 15, 2007.
ADDRESSES: Comments on this
application may be mailed or delivered
to the FAA at the following address: Mr.
J. Wade Bryant, Manager, Federal
Aviation Administration, Northwest
Mountain Region, Airports Division,
Seattle Airports District Office, 1601
Lind Avenue, SW., Suite 250, Renton,
Washington 98057–3356.
In addition, one copy of any
comments submitted to the FAA must
be mailed or delivered to Mr. Jack
Crider, Port Manager of the Port of
Percent
Tillamook Bay, at the following address:
Mr. Jack Crider, Port Manager, Port of
6.000 Tillamook Bay, 4000 Blimp Blvd.,
Tillamook, OR 97141.
3.000
FOR FURTHER INFORMATION CONTACT: Mr.
8.000 William L. Watson, OR/ID Section
Supervisor, Federal Aviation
Administration, Northwest Mountain
4.000 Region, Seattle Airports District Office,
1601 Lind Avenue, SW., Suite 250,
Renton, Washington 98057–3356.
Jkt 211001
PO 00000
Frm 00094
Fmt 4703
Sfmt 4703
6801
The request to release property may
be reviewed, by appointment, in person
at this same location.
SUPPLEMENTARY INFORMATION: The FAA
invites public comment on the request
to release property at the Tillamook
Airport under the provisions of the AIR
21 (49 U.S.C. § 47107(h)(2)).
On January 31, 2007, the FAA
determined that the request to release
property at Tillamook Airport submitted
by the airport meets the procedural
requirements of the Federal Aviation
Administration. The FAA may approve
the request, in whole or in part, no later
than March 15, 2007.
The following is a brief overview of
the request:
Tillamook Airport is proposing the
release of approximately 19,144 square
feet of airport property to the Oregon
Department of Transportation for turn
lane improvements to reduce traffic
congestion. The revenue made from this
sale will be used toward Airport Capital
Improvement.
Any person may inspect, by
appointment, the request in person at
the FAA office listed above under FOR
FURTHER INFORMATION CONTACT.
In addition, any person may, upon
appointment and request, inspect the
application, notice and other documents
germane to the application in person at
Tillamook Airport.
Issued in Renton, Washington on January
31, 2007.
J. Wade Bryant,
Manager, Seattle Airports District Office.
[FR Doc. 07–626 Filed 2–12–07; 8:45 am]
BILLING CODE 4910–13–M
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
Eleventh Meeting: RTCA Special
Committee 207/Airport Security
Access Control Systems
Federal Aviation
Administration (FAA), DOT.
ACTION: Notice of RTCA Special
Committee 207 Meeting, Airport
Security Access Control Systems.
AGENCY:
SUMMARY: The FAA is issuing this notice
to advise the public of a meeting of
RTCA Special Committee 207, Airport
Security Access Control Systems.
DATES: The meeting will be held March
8, 2007 from 9:30 a.m.–4 p.m.
ADDRESSES: The meeting will be held at
RTCA, Inc., Conference Rooms, 1828 L
Street, NW., Suite 805, Washington, DC
20036.
FOR FURTHER INFORMATION CONTACT: (1)
RTCA Secretariat, 1828 L Street, NW.,
E:\FR\FM\13FEN1.SGM
13FEN1
]]>Agencies
[Federal Register Volume 72, Number 29 (Tuesday, February 13, 2007)]
[Notices]
[Pages 6799-6801]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-2406]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-55244; File No. SR-NYSE-2007-11]
Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Relating to Rule 122 (Orders With More Than One Broker) Until the
Availability of Full d-Quote Functions in a Particular Security or
March 5, 2007, Whichever Comes First
February 5, 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 February 5, 2007, the New York Stock Exchange LLC (``NYSE'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I and
II below, which Items have been substantially prepared by the self-
regulatory organization. NYSE filed the proposed rule change pursuant
to Section 19(b)(3) of the Act \3\ and Rule 19b-4(f)(6) thereunder,\4\
which renders the proposed rule change effective upon filing with the
Commission. 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).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to continue the Floor brokers' ability to
maintain discretionary e-Quotes (``d-Quotes'') \5\ and CAP-DI orders
\6\ in a security on the same side of the market for the same order
that are capable of trading at the same price until the completion of
Phase IV implementation of the HYBRID MARKETSM (``Hybrid
Market'') in the relevant security or until March 5, 2007, whichever
comes first. The text of the proposed rule change is available on the
Exchange's Web site (www.nyse.com), at the Exchange's Office of the
Secretary, and at the Commission's Public Reference Room.
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 54577 (October 5,
2006), 71 FR 60208 (October 12, 2006) (SR-NYSE-2006-36).
\6\ See Exchange Rules 13 and 123A.30(a). Exchange Rule
123A.30(a) describes a CAP-DI order as: ``The elected or converted
portion of a `percentage order that is convertible on a
destabilizing tick and designated immediate execution or cancel
election' (``CAP-DI order'') may be automatically executed and may
participate in a sweep.''
---------------------------------------------------------------------------
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 self-regulatory organization
included statements concerning the purpose of and basis for the
proposed rule change. The text of these statements may be examined at
the places specified in Item IV below. The self-regulatory organization
has prepared summaries, set forth in sections A, B, and C below, of the
most significant aspects of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
On October 25, 2006, the Exchange filed with the Commission an
amendment to Rule 122 to permit Floor brokers to enter d-Quotes and
CAP-DI orders in a security on the same side of the market for the same
underlying order that are capable of trading at the same price until
the implementation of full d-Quoting functionality in the relevant
security or until February 5, 2007, whichever came first.\7\
---------------------------------------------------------------------------
\7\ See Securities Exchange Act Release No. 54653 (October 26,
2006), 71 FR 64594 (November 2, 2006) (SR-NYSE-2006-94).
---------------------------------------------------------------------------
On January 25, 2007, the Exchange commenced the implementation of
Phase IV of the Hybrid Market, which includes the remaining d-Quote
functions: (i) The ability to trade against non-marketable interest
within a Floor broker's discretionary range and (ii) routing control
for Floor brokers with respect to d-Quotes.\8\
---------------------------------------------------------------------------
\8\ Other d-Quote functions were implemented in Phase III.
---------------------------------------------------------------------------
The Exchange anticipates that the implementation of Phase IV will
not be completed as originally anticipated by February 5, 2007. Through
this filing the Exchange therefore requests to extend Floor brokers'
ability to enter d-Quotes and CAP-DI orders in a security on the same
side of the market for the same orders that are capable of trading at
the same price until the implementation of
[[Page 6800]]
full d-Quoting functionality in the relevant security or until March 5,
2007 whichever comes first.
The Exchange believes that extending the time period in which Floor
brokers have this capability is necessary in order to ensure that Floor
brokers remain competitive. Currently, the specialist can send
electronically a ``hit bid'' or ``take offer'' message based on an
incoming order that would create a new best bid or best offer; thus
allowing the specialist to trade electronically with the newly
published bid or offer. Without complete d-Quote functionality, a Floor
broker only has the ability to interact manually with such new bid or
offer. As a result, the speed disparity between a manual action and an
electronic one places the Floor broker at a competitive disadvantage.
While a Floor broker can seek to trade at the bid or offer price by
manually ``hitting the bid'' or ``taking the offer'' the Floor broker
can also send a CAP-DI order to the specialist for conversion or
election at that price. Marketable CAP-DI orders are automatically
converted and trade along with specialist proprietary executions.
Accordingly, by allowing Floor brokers to have CAP-DI orders and d-
Quotes, they retain the ability to compete with specialist algorithmic
trading for executions involving marketable incoming orders via
discretionary pricing instructions, but do not miss participating in
executions when specialists algorithmically hit a bid or take an offer.
2. Statutory Basis
The basis under the Act for this proposed rule change is the
requirement under Section 6(b)(5) of the Act \9\ that an Exchange have
rules that are designed to promote just and equitable principles of
trade, to remove impediments to and perfect the mechanism of a free and
open market and a national market system and, in general, to protect
investors and the public interest. The proposed rule change also is
designed to support the principles of Section 11A(a)(1) of the Act \10\
in that it seeks to assure economically efficient execution of
securities transactions, make it practicable for brokers to execute
investors' orders in the best market and provide an opportunity for
investors' orders to be executed without the participation of a dealer.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78f(b)(5).
\10\ 15 U.S.C. 78k-1(a)(1).
---------------------------------------------------------------------------
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
The Exchange 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
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)
by its terms, 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 \11\
and Rule 19b-4(f)(6) thereunder.\12\
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\11\ 15 U.S.C. 78s(b)(3)(A).
\12\ 17 CFR 240.19b-4(f)(6).
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A proposed rule change filed under Rule 19b-4(f)(6) normally may
not become operative prior to 30 days after the date of filing.
However, Rule 19b-4(f)(6)(iii) \13\ permits the Commission to designate
a shorter time if such action is consistent with the protection of
investors and the public interest. The Exchange has requested that the
Commission waive the 30-day operative delay and designate the proposed
rule change immediately operative upon filing. The Commission believes
that waiver of the 30-day operative delay is consistent with the
protection of investors and the public interest. Specifically, the
Commission believes that the proposal would enable floor brokers to
continue to compete with specialists in certain trades on behalf of
their customers, while the Exchange is in the process of implementing
the d-Quote functions. Accordingly, the Commission designates the
proposal to be effective and operative upon filing with the Commission
until the availability of full d-Quote functions in a particular
security or March 5, 2007, whichever comes first.\14\
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\13\ 17 CFR 240.19b-4(f)(6)(iii).
\14\ For purposes only of waiving the operative delay for this
proposal, the Commission has considered the proposed rule's impact
on efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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At any time within 60 days of the filing of the proposed rule
change, the Commission may summarily abrogate such proposed 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 SR-NYSE-2007-11 on the subject line.
Paper Comments
Send paper comments in triplicate to Nancy M. Morris,
Secretary, Securities and Exchange Commission, 100 F Street, NE,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-NYSE-2007-11. 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 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
[[Page 6801]]
submissions should refer to File Number SR-NYSE-2007-11 and should be
submitted on or before March 6, 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. E7-2406 Filed 2-12-07; 8:45 am]
BILLING CODE 8010-01-P
