Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change and Amendment No. 1 Thereto Relating to Rule 13 (Definitions of Orders) To Establish the New Order Type Called Do Not Ship, 28532-28533 [E7-9667]
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28532
Federal Register / Vol. 72, No. 97 / Monday, May 21, 2007 / Notices
III. Discussion
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.5 Specifically, the
Commission finds that the proposal is
consistent with Section 6(b)(5) of the
Act,6 which requires, among other
things, that the rules of a national
securities exchange be designed to
prevent fraudulent and manipulative
acts and practices, 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. Specifically, the
proposal will allow the ISE to make
available to all ISE members
information regarding customer interest
at the ISE’s BBO that currently is
available only to PMMs. In addition, the
proposal will allow the ISE to provide
its members with the same customer
interest information that CBOE
currently makes available to its
members.
IV. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,7 that the
proposed rule change (SR–ISE–2007–18)
is approved.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.8
Jill M. Peterson,
Assistant Secretary.
[FR Doc. E7–9664 Filed 5–18–07; 8:45 am]
pwalker on PROD1PC71 with NOTICES
BILLING CODE 8010–01–P
5 In approving this proposed rule change the
Commission has considered the proposed rule’s
impact on efficiency, competition, and capital
formation. 15 U.S.C. 78c(f).
6 15 U.S.C. 78f(b)(5).
7 15 U.S.C. 78s(b)(2).
8 17 CFR 200.30–3(a)(12).
VerDate Aug<31>2005
15:57 May 18, 2007
Jkt 211001
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–55768; File No. SR–NYSE–
2007–24]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change and
Amendment No. 1 Thereto Relating to
Rule 13 (Definitions of Orders) To
Establish the New Order Type Called
Do Not Ship
May 15, 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 April 20,
2007, the New York Stock Exchange
LLC (‘‘NYSE’’ or ‘‘Exchange’’) filed with
the Securities and Exchange
Commission (‘‘Commission’’) a
proposed rule change. The Exchange
filed Amendment No. 1 to the proposed
rule change on May 11, 2007. The
proposed rule change, as amended, is
described in Items I and II below, which
Items have been substantially prepared
by the NYSE. The Exchange filed the
proposal pursuant to Section 19(b)(3)(A)
of the Act 3 and Rule 19b–4(f)(6)
thereunder,4 which renders the proposal
effective upon filing with the
Commission. The Commission is
publishing this notice to solicit
comments on the proposed rule change,
as amended, from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend its
Rule 13 (Definitions of Orders) to
establish the new order type called Do
Not Ship (‘‘DNS’’). The text of the
proposed rule change is available at the
Exchange, on the Exchange’s Web site at
http://www.nyse.com, and at the
Commission’s Public Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of, and basis for,
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(6).
forth in Sections A, B, and C below, of
the most significant aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange is amending Rule 13 to
adopt a Do Not Ship, or ‘‘DNS,’’ order.
A DNS order will be a limit order to buy
or sell that is to be quoted and/or
executed in whole or in part only on the
Exchange. In the event the order would
require routing to another market center
pursuant to Exchange rules or federal
securities laws, it would be immediately
cancelled by Exchange systems.
The proposed DNS order provides an
alternative for market participants who
are seeking to have their order quoted
and executed solely on the Exchange.
The Exchange states that the DNS order
provides the market participant with
control over execution costs and where
the order will be handled.
Regulation National Market System
(‘‘Reg. NMS’’) requires, among other
things, that with limited exceptions,
trading centers have policies and
procedures reasonably designed to
prevent the execution of trades at prices
inferior to protected quotations
displayed by other market centers.5 The
Exchange states that, in this context,
orders that are routed away to other
market center(s) in compliance with
Reg. NMS may cause the market
participant to incur multiple fees
because the customer has to pay a
separate fee each time the order is
routed to other market center(s) during
the course of its execution. The DNS
order enables a market participant to
control the costs associated with order
execution by limiting the execution of
the order in whole or in part, to the
Exchange.
Similarly, a market participant who
desires to have its order executed in
whole or in part solely on the Exchange
will also benefit from the DNS order
which, by its terms, will immediately
and automatically cancel if it is required
to be routed away to another market
center.
Generally, a DNS order can quote and
trade on the Exchange. Where the bid or
offer on the Exchange matches the bid
or offer at another market center, an
incoming DNS order that is eligible to
quote and trade will do so first at the
Exchange. However, if quoting the DNS
order will cause the locking or crossing
1 15
2 17
PO 00000
Frm 00071
Fmt 4703
5 See 17 CFR 242.611. See also Securities
Exchange Act Release No. 51808 (June 9, 2005), 70
FR 37496 (June 29, 2005).
Sfmt 4703
E:\FR\FM\21MYN1.SGM
21MYN1
Federal Register / Vol. 72, No. 97 / Monday, May 21, 2007 / Notices
of another market center in violation of
Exchange Rule 19 (Locking or Crossing
Protected Quotations in NMS Stocks),
the DNS order will cancel. If all or part
of a DNS order would have been
required, pursuant to Federal securities
laws, to be routed to another market
center upon entry at the Exchange, it
will immediately and automatically
cancel. When a DNS order is not eligible
to be traded, it will be placed on the
Display Book system at its limit price.
The Commission has previously
approved the use of order types
substantially similar to the DNS on
other exchanges.6 The Exchange
believes that the DNS order will not
only give the market participant greater
flexibility in terms of execution costs
and where the order will be handled,
but it will also allow the Exchange a
greater opportunity to compete in the
current market landscape.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the requirement under Section 6(b)(5) of
the Act 7 that the rules of an Exchange
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.
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.
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Jkt 211001
Electronic Comments
• Use the Commission’s Internet
comment form (http://www.sec.gov/
rules/sro.shtml); or
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
10 17 CFR 240.19b–4(f)(6)(iii). Rule 19b–4(f)(6)
also requires the self-regulatory organization to give
the Commission notice of its intent to file the
proposed rule change, along with a brief description
and text of the proposed rule change, at least five
business days prior to the date of filing of the
proposed rule change, or such shorter time as
designated by the Commission. The Exchange has
satisfied the five-day pre-filing requirement.
11 See supra at note 6.
12 The Exchange represents that it seeks the
requested waivers to allow for the immediate
implementation of this new order type upon the
operability of the Exchange’s systems on or about
May 18, 2007.
13 For the purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
14 The Commission considers the 60-day
abrogation period to have commenced on May 11,
2007, the date the Exchange filed Amendment No.
1.
9 17
6 See NYSE Arca, Inc. Equities Rule 7.31 (Orders
and Modifiers) subsection (w) PNP Order (Post No
Preference); Securities Exchange Act Release No.
44983 (October 25, 2001), 66 FR 55225 (November
1, 2001) (SR–PCX–00–25). See also Philadelphia
Stock Exchange, Inc. Rules of the Board of
Governors Rule 185 (Orders and Order Execution)
subsection (b) (Limited Price Orders) subparagraphs
(1)(D); Securities Exchange Release No. 54538
(September 28, 2006), 71 FR 59184 (October 6,
2006) (SR–Phlx–2006–43).
7 15 U.S.C. 78f(b)(5).
15:57 May 18, 2007
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:
8 15
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing rule change
does not: (1) Significantly affect the
VerDate Aug<31>2005
protection of investors or the public
interest; (2) impose any significant
burden on competition; and (3) become
operative for 30 days after the date on
which it was filed, or such shorter time
as the Commission may designate, it has
become effective pursuant to Section
19(b)(3)(A) of the Act 8 and Rule 19b–
4(f)(6) thereunder.9
NYSE has requested that the
Commission waive the 30-day operative
delay.10 The Commission believes that
waiver of the 30-day operative delay is
consistent with the protection of
investors and the public interest
because the Commission has previously
approved similar order types for other
exchanges,11 and waiver will allow the
Exchange to implement this order type
as soon as its systems are modified to
recognize it.12 For this reason, the
Commission designates the proposed
rule change to be effective and operative
upon filing with the Commission.13
At any time within 60 days of the
filing of such proposed rule change the
Commission may summarily abrogate
such rule change if it appears to the
Commission that such action is
necessary or appropriate in the public
interest, for the protection of investors
or otherwise in furtherance of the
purposes of the Act.14
PO 00000
Frm 00072
Fmt 4703
Sfmt 4703
28533
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–NYSE–2007–24 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–2007–24. 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 the 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
submissions should refer to File
Number SR–NYSE–2007–24 and should
be submitted on or before June 11, 2007.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.15
Jill M. Peterson,
Assistant Secretary.
[FR Doc. E7–9667 Filed 5–18–07; 8:45 am]
BILLING CODE 8010–01–P
15 17
E:\FR\FM\21MYN1.SGM
CFR 200.30–3(a)(12).
21MYN1
]]>Agencies
[Federal Register Volume 72, Number 97 (Monday, May 21, 2007)]
[Notices]
[Pages 28532-28533]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-9667]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-55768; File No. SR-NYSE-2007-24]
Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
and Amendment No. 1 Thereto Relating to Rule 13 (Definitions of Orders)
To Establish the New Order Type Called Do Not Ship
May 15, 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 April 20, 2007, the New York Stock Exchange LLC (``NYSE'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') a proposed rule change. The Exchange filed Amendment
No. 1 to the proposed rule change on May 11, 2007. The proposed rule
change, as amended, is described in Items I and II below, which Items
have been substantially prepared by the NYSE. The Exchange filed the
proposal pursuant to Section 19(b)(3)(A) of the Act \3\ and Rule 19b-
4(f)(6) thereunder,\4\ which renders the proposal effective upon filing
with the Commission. The Commission is publishing this notice to
solicit comments on the proposed rule change, as amended, 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 amend its Rule 13 (Definitions of Orders)
to establish the new order type called Do Not Ship (``DNS''). The text
of the proposed rule change is available at the Exchange, on the
Exchange's Web site at http://www.nyse.com, and at the Commission's
Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of, and basis for, the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
Sections A, B, and C below, of the most significant aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange is amending Rule 13 to adopt a Do Not Ship, or
``DNS,'' order. A DNS order will be a limit order to buy or sell that
is to be quoted and/or executed in whole or in part only on the
Exchange. In the event the order would require routing to another
market center pursuant to Exchange rules or federal securities laws, it
would be immediately cancelled by Exchange systems.
The proposed DNS order provides an alternative for market
participants who are seeking to have their order quoted and executed
solely on the Exchange. The Exchange states that the DNS order provides
the market participant with control over execution costs and where the
order will be handled.
Regulation National Market System (``Reg. NMS'') requires, among
other things, that with limited exceptions, trading centers have
policies and procedures reasonably designed to prevent the execution of
trades at prices inferior to protected quotations displayed by other
market centers.\5\ The Exchange states that, in this context, orders
that are routed away to other market center(s) in compliance with Reg.
NMS may cause the market participant to incur multiple fees because the
customer has to pay a separate fee each time the order is routed to
other market center(s) during the course of its execution. The DNS
order enables a market participant to control the costs associated with
order execution by limiting the execution of the order in whole or in
part, to the Exchange.
---------------------------------------------------------------------------
\5\ See 17 CFR 242.611. See also Securities Exchange Act Release
No. 51808 (June 9, 2005), 70 FR 37496 (June 29, 2005).
---------------------------------------------------------------------------
Similarly, a market participant who desires to have its order
executed in whole or in part solely on the Exchange will also benefit
from the DNS order which, by its terms, will immediately and
automatically cancel if it is required to be routed away to another
market center.
Generally, a DNS order can quote and trade on the Exchange. Where
the bid or offer on the Exchange matches the bid or offer at another
market center, an incoming DNS order that is eligible to quote and
trade will do so first at the Exchange. However, if quoting the DNS
order will cause the locking or crossing
[[Page 28533]]
of another market center in violation of Exchange Rule 19 (Locking or
Crossing Protected Quotations in NMS Stocks), the DNS order will
cancel. If all or part of a DNS order would have been required,
pursuant to Federal securities laws, to be routed to another market
center upon entry at the Exchange, it will immediately and
automatically cancel. When a DNS order is not eligible to be traded, it
will be placed on the Display Book system at its limit price.
The Commission has previously approved the use of order types
substantially similar to the DNS on other exchanges.\6\ The Exchange
believes that the DNS order will not only give the market participant
greater flexibility in terms of execution costs and where the order
will be handled, but it will also allow the Exchange a greater
opportunity to compete in the current market landscape.
---------------------------------------------------------------------------
\6\ See NYSE Arca, Inc. Equities Rule 7.31 (Orders and
Modifiers) subsection (w) PNP Order (Post No Preference); Securities
Exchange Act Release No. 44983 (October 25, 2001), 66 FR 55225
(November 1, 2001) (SR-PCX-00-25). See also Philadelphia Stock
Exchange, Inc. Rules of the Board of Governors Rule 185 (Orders and
Order Execution) subsection (b) (Limited Price Orders) subparagraphs
(1)(D); Securities Exchange Release No. 54538 (September 28, 2006),
71 FR 59184 (October 6, 2006) (SR-Phlx-2006-43).
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the requirement under Section 6(b)(5) of the Act \7\ that the
rules of an Exchange 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.
---------------------------------------------------------------------------
\7\ 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 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 rule change does not: (1) Significantly
affect the protection of investors or the public interest; (2) impose
any significant burden on competition; and (3) become operative for 30
days after the date on which it was filed, or such shorter time as the
Commission may designate, it has become effective pursuant to Section
19(b)(3)(A) of the Act \8\ and Rule 19b-4(f)(6) thereunder.\9\
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
NYSE has requested that the Commission waive the 30-day operative
delay.\10\ The Commission believes that waiver of the 30-day operative
delay is consistent with the protection of investors and the public
interest because the Commission has previously approved similar order
types for other exchanges,\11\ and waiver will allow the Exchange to
implement this order type as soon as its systems are modified to
recognize it.\12\ For this reason, the Commission designates the
proposed rule change to be effective and operative upon filing with the
Commission.\13\
---------------------------------------------------------------------------
\10\ 17 CFR 240.19b-4(f)(6)(iii). Rule 19b-4(f)(6) also requires
the self-regulatory organization to give the Commission notice of
its intent to file the proposed rule change, along with a brief
description and text of the proposed rule change, at least five
business days prior to the date of filing of the proposed rule
change, or such shorter time as designated by the Commission. The
Exchange has satisfied the five-day pre-filing requirement.
\11\ See supra at note 6.
\12\ The Exchange represents that it seeks the requested waivers
to allow for the immediate implementation of this new order type
upon the operability of the Exchange's systems on or about May 18,
2007.
\13\ For the purposes only of waiving the 30-day operative
delay, 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 such proposed rule
change the Commission may summarily abrogate such rule change if it
appears to the Commission that such action is necessary or appropriate
in the public interest, for the protection of investors or otherwise in
furtherance of the purposes of the Act.\14\
---------------------------------------------------------------------------
\14\ The Commission considers the 60-day abrogation period to
have commenced on May 11, 2007, the date the Exchange filed
Amendment No. 1.
---------------------------------------------------------------------------
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-2007-24 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-2007-24. 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 the
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 submissions should refer to
File Number SR-NYSE-2007-24 and should be submitted on or before June
11, 2007.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\15\
---------------------------------------------------------------------------
\15\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Jill M. Peterson,
Assistant Secretary.
[FR Doc. E7-9667 Filed 5-18-07; 8:45 am]
BILLING CODE 8010-01-P
