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]

Download as PDF 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 (http://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 (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. 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\
---------------------------------------------------------------------------

    \11\ 15 U.S.C. 78s(b)(3)(A).
    \12\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

    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\
---------------------------------------------------------------------------

    \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).
---------------------------------------------------------------------------

    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 (http://
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 (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. 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\
---------------------------------------------------------------------------

    \15\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-2406 Filed 2-12-07; 8:45 am]
BILLING CODE 8010-01-P