Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing of Proposed Rule Change as Modified by Amendment No. 1 Thereto Relating to Rule 103B (“Specialist Stock Allocation”), 44601-44603 [E7-15432]
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44601
Federal Register / Vol. 72, No. 152 / Wednesday, August 8, 2007 / Notices
(A) Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
The purpose of the proposed rule
change is to reduce the fees that NSCC
charges for its POV service effective July
1, 2007.
The transaction fees schedule for the
IPS POV service is tiered according to
the numbers of transaction processed.
The following chart shows the current
fees and the proposed reduced fees.
Current
(items)
POV position records
From 0 to 500,000 items per month .......................................................................................................
From 500,001 to 2,000,000 items per month .........................................................................................
From 2,000,001 to 4,000,000 items per month ......................................................................................
For 4,000,001 or more items per month ................................................................................................
These fees are being reduced due to
an increase in volume and revenue in
NSCC’s IPS over recent years which has
resulted in excess revenue for these
services.
The proposed rule change is
consistent with the requirements of
Section 17A of the Act 6 and the rules
and regulations thereunder applicable to
NSCC because the proposed change
provides for the equitable allocation of
dues fees and other charges among
NSCC members and aligns fees for
services with the associated cost to
deliver the service.
(B) Self-Regulatory Organization’s
Statement on Burden on Competition
NSCC does not believe that the
proposed rule change will have any
impact or impose any burden on
competition.
(C) Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
Written comments relating to the
proposed rule change have not yet been
solicited or received. NSCC will notify
the Commission of any written
comments received by NSCC.
sroberts on PROD1PC70 with NOTICES
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective upon filing pursuant to section
19(b)(3)(A)(ii) of the Act 7 and Rule 19b–
4(f)(2) 8 thereunder because the rule
establishes a due, fee, or other charge.
At any time within sixty days of the
filing of the proposed rule change, the
Commission could have summarily
abrogated such rule change if it
appeared to the Commission that such
action was necessary or appropriate in
the public interest, for the protection of
6 15
U.S.C. 78q–1.
U.S.C. 78s(b)(3)(A)(ii).
8 17 CFR 240.19b–4(f)(2).
7 15
VerDate Aug<31>2005
19:14 Aug 07, 2007
Jkt 211001
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–NSCC–2007–10 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–NSCC–2007–10. 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, 100 F Street, NE., Washington,
DC 20549, on official business days
between the hours of 10 a.m. and 3 p.m.
PO 00000
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Fmt 4703
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$8.00
$4.50
$3.75
$3.50
per
per
per
per
1,000
1,000
1,000
1,000
Proposed
(items)
.....
.....
.....
.....
$ no change.
$4.00 per 1,000.
$3.00 per 1,000.
$2.00 per 1,000.
The text of the proposed rule change is
available at NSCC, the Commission’s
Public Reference Room, and https://
www.nscc.com/legal/2007/2007–10.pdf.
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–NSCC–2007–10 and should
be submitted on or before August 29,
2007.
For the Commission by the Division of
Market Regulation, pursuant to delegated
authority.9
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–15433 Filed 8–7–07; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–56183; File No. SR–NYSE–
2007–42]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing of Proposed Rule Change as
Modified by Amendment No. 1 Thereto
Relating to Rule 103B (‘‘Specialist
Stock Allocation’’)
August 2, 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’’) the
proposed rule change as described in
Items I, II, and III below, which Items
have been substantially prepared by
NYSE. NYSE filed Amendment No. 1 to
the proposed rule change on July 20,
9 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
E:\FR\FM\08AUN1.SGM
08AUN1
44602
Federal Register / Vol. 72, No. 152 / Wednesday, August 8, 2007 / Notices
2007. 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 is filing with the
Commission an amendment to Rule
103B (‘‘Specialist Stock Allocation’’) to
permit specialist member organizations
to trade Exchange-Traded Funds
(‘‘ETFs’’) in a specialist capacity while
at the same time registered as a
specialist in securities which are a
component thereof, subject to Exchange
approval of policies and procedures
demonstrably isolating information
regarding the respective issues. The text
of the proposed rule change is available
on the Exchange’s Web site (https://
www.nyse.com), at the principal office
of the Exchange, 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
sroberts on PROD1PC70 with NOTICES
1. Purpose
When approved by the Commission
on May 7, 2001,3 section VIII of Rule
103B prohibited member organizations
from applying for allocation of an ETF
where such member organization was
already registered as a specialist in any
component security of such ETF, and
conversely that where a member
organization is already registered as a
specialist in an ETF and a security in
which it is also registered as a specialist
becomes a component security of such
ETF, the member organization must
withdraw one or the other of such
registrations or establish a separate
member organization for the ETF. The
3 See Securities Exchange Act Release No. 44272
(May 7, 2001), 66 FR 26898 (May 15, 2001) (SR–
NYSE–2001–07).
VerDate Aug<31>2005
19:14 Aug 07, 2007
Jkt 211001
Exchange explained the reason for this
separation:
This restriction is necessary to avoid the
possibility of ‘‘wash sales’’ in a situation
where the specialist in the ETF needs to
hedge by buying or selling component stock
of the ETF, and could inadvertently be
trading with a proprietary bid or offer made
by a specialist in the same member
organization who is making a market in the
component security.4
The rule amendment proposed a
solution to the problem by providing
that member organizations could
conduct the ETF activities in a separate
member organization. The Exchange
states that, while concerns regarding
wash sales in the context of ETF and
component security trading remain real,
the costs and expenses of maintaining
two separate member organizations,
both to the member organization 5 and
to the Exchange,6 are seen to strongly
recommend a second resolution of this
problem.
Accordingly, the Exchange is
proposing to permit member
organizations, subject to Exchange
approval, to establish policies and
procedures to isolate 7 the activities of
such member organization in the trading
of ETFs and any component securities
in which it may be registered, thus
eliminating the required redundancies
and attendant expense inherent in the
current rule requirement for separate
firms. Such policies and procedures
must, at a minimum, include
information barriers that prevent the
flow of non-public information between
a member organization’s ETF specialist
on the one hand and the member
organization’s specialist in an associated
component security on the other hand.
The Exchange states that its Division
of Member Firm Regulation has a
Chinese Wall examination program to
evaluate the integrity of information
barriers to ensure confidentiality of
trading information among the various
4 Id.
at 26900.
of the requirement for two separate
organizations, firms are required to have two
broker-dealer registrations, file separate monthly
financial reports, support two accounting and
compliance departments, and maintain separate
management and reporting structures.
6 In 2005, the Exchange estimated that
approximately 2,100 examiner hours were devoted
to the examination of ETF specialists. Such
numbers would be sharply reduced if member
organizations were allowed, as proposed, to include
such functions within the same organization, as the
combination of activities in one entity instead of
two would, by its nature, reduce the member
organizations examined and eliminate review of
duplicative functions.
7 See, for example, comparable provisions of
NYSE Information Memo 91–22 (June 21, 1991), the
NASD/NYSE Joint Memo on Chinese Wall Policies
and Procedures for procedural structures to assure
the effective containment of trading information.
5 Because
PO 00000
Frm 00120
Fmt 4703
Sfmt 4703
trading departments at its member firms
and their approved persons and will
adapt it to the review of specialist firms
also trading ETFs along with component
securities. These information barriers
are, and will continue to be, tested and
reviewed on site for breaches and
weaknesses by Exchange examination
staff on an annual basis and for cause,
when warranted. To determine whether
the firm has developed and
implemented adequate information
barriers between its Specialist Equity
and ETF Trading Operations, examiners
will review, on-site, the combined
specialist firm’s written policies and
procedures and physical layout for
adequacy. In addition, appropriate
individuals both within the affected
departments as well as other areas of the
specialist firm will be interviewed to
determine whether firm policies have
been appropriately disseminated and
implemented. Also, the examiners will
test member organization controls and
will determine, based upon their
review, whether the firm’s relevant
information barriers and related policies
and procedures are adequate to preclude
the improper sharing of trading
information (both equity and ETF) and
whether there have been any apparent
breaches of those barriers. In addition,
the Exchange will periodically assess its
surveillance and examination
procedures to determine whether they
are adequate to assure that member
organizations and market participants
do not engage in manipulative or
improper trading. The Exchange
believes that these measures will assure
the adequate and appropriate
surveillance of the single member
organization permitted by the proposed
amendments.
The isolation of trading activities acts
to address the issue of ‘‘wash sales’’ in
the context of ETF and component
securities. The rule does not, however,
prohibit usual and customary sharing of
information regarding trades after the
fact, and so allows appropriate risk and
hedging activity, treasury management
and other such similar activities.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the provisions of section 6(b)(5) of the
Act 8 because it is 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.
8 15
E:\FR\FM\08AUN1.SGM
U.S.C. 78f(b)(5).
08AUN1
Federal Register / Vol. 72, No. 152 / Wednesday, August 8, 2007 / Notices
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
Within 35 days of the date of
publication of this notice in the Federal
Register or within such longer period (i)
as the Commission may designate up to
90 days of such date if it finds such
longer period to be appropriate and
publishes its reasons for so finding or
(ii) as to which the self-regulatory
organization consents, the Commission
will:
A. By order approve such proposed
rule change; or
B. institute proceedings to determine
whether the proposed rule change
should be disapproved.
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:
sroberts on PROD1PC70 with NOTICES
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–2007–42 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Nancy M. Morris, Secretary,
Securities and Exchange Commission,
Station Place, 100 F Street, NE.,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–NYSE–2007–42. 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
VerDate Aug<31>2005
19:14 Aug 07, 2007
Jkt 211001
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for inspection and copying in
the Commission’s Public Reference
Room, 100 F. Street, NE., Washington,
DC 20549, on official business days
between the hours of 10 a.m. and 3 p.m.
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
submissions should refer to File
Number SR–NYSE–2007–42 and should
be submitted on or before August 29,
2007.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.9
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–15432 Filed 8–7–07; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–56178; File No. SR–OC–
2007–03]
Self-Regulatory Organizations;
OneChicago, LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Relating To Block Trade
and EFP Transaction Reporting
Procedures
August 1, 2007.
Pursuant to section 19(b)(7) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–7 thereunder,2
notice is hereby given that on July 20,
2007, OneChicago, LLC (‘‘OneChicago’’
or ‘‘Exchange’’) filed with the Securities
and Exchange Commission (‘‘SEC’’ or
‘‘Commission’’) the proposed rule
change described in Items I, II and III
below, which Items have been
substantially prepared by the Exchange.
The Commission is publishing this
notice to solicit comments on the
proposed rule change from interested
persons. The Exchange has also filed the
proposed rule change with the
Commodity Futures Trading
Commission (‘‘CFTC’’), together with a
written certification under Section 5c(c)
of the Commodity Exchange Act
(‘‘CEA’’),3 on July 19, 2007.
I. Self-Regulatory Organization’s
Description of the Proposed Rule
Change
OneChicago is proposing to amend its
policies and procedures relating to the
reporting of block trades and Exchange
of Futures for Physical (‘‘EFP’’)
transactions. The text of the proposed
rule change is available on
OneChicago’s Web site (https://
onechicago.com), at OneChicago’s
principal office, and at the
Commission’s Public Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
The Exchange has prepared
statements concerning the purpose of,
and basis for, the proposed rule change,
burdens on competition, and comments
received from its members, participants,
and others. 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, Proposed Rule
Change
1. Purpose
OneChicago proposes to amend its
Block Trade Reporting Procedures
(‘‘Block Reporting Procedures’’) and its
EFP Transactions: Guidelines and
Reporting Procedures (‘‘EFP Reporting
Procedures’’) to permit reporting of
block trades and EFP transactions
through the OneChicago Block & EFP
Trading System (‘‘OneChicago BETS’’).
In addition, OneChicago proposes to
make conforming changes to
OneChicago Policies: Block Trades, PreExecution Discussions and Cross Trades
(‘‘Block Trade Policy’’).
OneChicago BETS permits authorized
traders to trade and report block trades,
as well as match and report EFP
transactions electronically.4 The
proposed rule change would add
language to the Block Reporting
Procedures that would permit those
37
U.S.C. 7a–2(c).
BETS also permits electronic
trading and reporting of Block Roll trades, a block
trade where a trader enters into a calendar spread.
9 17
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(7).
2 17 CFR 240.19b–7.
PO 00000
Frm 00121
Fmt 4703
44603
4 OneChicago
Sfmt 4703
E:\FR\FM\08AUN1.SGM
08AUN1
Agencies
[Federal Register Volume 72, Number 152 (Wednesday, August 8, 2007)]
[Notices]
[Pages 44601-44603]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-15432]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-56183; File No. SR-NYSE-2007-42]
Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing of Proposed Rule Change as Modified by Amendment No. 1
Thereto Relating to Rule 103B (``Specialist Stock Allocation'')
August 2, 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'') the proposed rule change as described in Items I, II,
and III below, which Items have been substantially prepared by NYSE.
NYSE filed Amendment No. 1 to the proposed rule change on July 20,
[[Page 44602]]
2007. 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.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange is filing with the Commission an amendment to Rule
103B (``Specialist Stock Allocation'') to permit specialist member
organizations to trade Exchange-Traded Funds (``ETFs'') in a specialist
capacity while at the same time registered as a specialist in
securities which are a component thereof, subject to Exchange approval
of policies and procedures demonstrably isolating information regarding
the respective issues. The text of the proposed rule change is
available on the Exchange's Web site (https://www.nyse.com), at the
principal office of the Exchange, 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
When approved by the Commission on May 7, 2001,\3\ section VIII of
Rule 103B prohibited member organizations from applying for allocation
of an ETF where such member organization was already registered as a
specialist in any component security of such ETF, and conversely that
where a member organization is already registered as a specialist in an
ETF and a security in which it is also registered as a specialist
becomes a component security of such ETF, the member organization must
withdraw one or the other of such registrations or establish a separate
member organization for the ETF. The Exchange explained the reason for
this separation:
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release No. 44272 (May 7, 2001),
66 FR 26898 (May 15, 2001) (SR-NYSE-2001-07).
This restriction is necessary to avoid the possibility of ``wash
sales'' in a situation where the specialist in the ETF needs to
hedge by buying or selling component stock of the ETF, and could
inadvertently be trading with a proprietary bid or offer made by a
specialist in the same member organization who is making a market in
the component security.\4\
---------------------------------------------------------------------------
\4\ Id. at 26900.
The rule amendment proposed a solution to the problem by providing
that member organizations could conduct the ETF activities in a
separate member organization. The Exchange states that, while concerns
regarding wash sales in the context of ETF and component security
trading remain real, the costs and expenses of maintaining two separate
member organizations, both to the member organization \5\ and to the
Exchange,\6\ are seen to strongly recommend a second resolution of this
problem.
---------------------------------------------------------------------------
\5\ Because of the requirement for two separate organizations,
firms are required to have two broker-dealer registrations, file
separate monthly financial reports, support two accounting and
compliance departments, and maintain separate management and
reporting structures.
\6\ In 2005, the Exchange estimated that approximately 2,100
examiner hours were devoted to the examination of ETF specialists.
Such numbers would be sharply reduced if member organizations were
allowed, as proposed, to include such functions within the same
organization, as the combination of activities in one entity instead
of two would, by its nature, reduce the member organizations
examined and eliminate review of duplicative functions.
---------------------------------------------------------------------------
Accordingly, the Exchange is proposing to permit member
organizations, subject to Exchange approval, to establish policies and
procedures to isolate \7\ the activities of such member organization in
the trading of ETFs and any component securities in which it may be
registered, thus eliminating the required redundancies and attendant
expense inherent in the current rule requirement for separate firms.
Such policies and procedures must, at a minimum, include information
barriers that prevent the flow of non-public information between a
member organization's ETF specialist on the one hand and the member
organization's specialist in an associated component security on the
other hand.
---------------------------------------------------------------------------
\7\ See, for example, comparable provisions of NYSE Information
Memo 91-22 (June 21, 1991), the NASD/NYSE Joint Memo on Chinese Wall
Policies and Procedures for procedural structures to assure the
effective containment of trading information.
---------------------------------------------------------------------------
The Exchange states that its Division of Member Firm Regulation has
a Chinese Wall examination program to evaluate the integrity of
information barriers to ensure confidentiality of trading information
among the various trading departments at its member firms and their
approved persons and will adapt it to the review of specialist firms
also trading ETFs along with component securities. These information
barriers are, and will continue to be, tested and reviewed on site for
breaches and weaknesses by Exchange examination staff on an annual
basis and for cause, when warranted. To determine whether the firm has
developed and implemented adequate information barriers between its
Specialist Equity and ETF Trading Operations, examiners will review,
on-site, the combined specialist firm's written policies and procedures
and physical layout for adequacy. In addition, appropriate individuals
both within the affected departments as well as other areas of the
specialist firm will be interviewed to determine whether firm policies
have been appropriately disseminated and implemented. Also, the
examiners will test member organization controls and will determine,
based upon their review, whether the firm's relevant information
barriers and related policies and procedures are adequate to preclude
the improper sharing of trading information (both equity and ETF) and
whether there have been any apparent breaches of those barriers. In
addition, the Exchange will periodically assess its surveillance and
examination procedures to determine whether they are adequate to assure
that member organizations and market participants do not engage in
manipulative or improper trading. The Exchange believes that these
measures will assure the adequate and appropriate surveillance of the
single member organization permitted by the proposed amendments.
The isolation of trading activities acts to address the issue of
``wash sales'' in the context of ETF and component securities. The rule
does not, however, prohibit usual and customary sharing of information
regarding trades after the fact, and so allows appropriate risk and
hedging activity, treasury management and other such similar
activities.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the provisions of section 6(b)(5) of the Act \8\ because it is
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.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
[[Page 44603]]
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
Within 35 days of the date of publication of this notice in the
Federal Register or within such longer period (i) as the Commission may
designate up to 90 days of such date if it finds such longer period to
be appropriate and publishes its reasons for so finding or (ii) as to
which the self-regulatory organization consents, the Commission will:
A. By order approve such proposed rule change; or
B. institute proceedings to determine whether the proposed rule
change should be disapproved.
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-2007-42 on the subject line.
Paper Comments
Send paper comments in triplicate to Nancy M. Morris,
Secretary, Securities and Exchange Commission, Station Place, 100 F
Street, NE., Washington, DC 20549-1090.
All submissions should refer to File Number SR-NYSE-2007-42. 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, 100 F. Street, NE.,
Washington, DC 20549, on official business days between the hours of 10
a.m. and 3 p.m. 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
submissions should refer to File Number SR-NYSE-2007-42 and should be
submitted on or before August 29, 2007.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\9\
Florence E. Harmon,
Deputy Secretary.
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\9\ 17 CFR 200.30-3(a)(12).
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[FR Doc. E7-15432 Filed 8-7-07; 8:45 am]
BILLING CODE 8010-01-P