Self-Regulatory Organizations; National Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to the Amendment of Its Rules in Light of Amendments to SEC Rule 10a-1 and Regulation SHO, 50429-50431 [E7-17228]

Download as PDF 50429 Federal Register / Vol. 72, No. 169 / Friday, August 31, 2007 / Notices delay, to permit the Exchange to list options on the Fund immediately. The Commission believes that waiving the 30-day operative delay is consistent with the protection of investors and the public interest. The proposal is substantially similar to proposals previously submitted by Amex and CBOE. Also, the Exchange has agreed to use its best efforts to obtain a comprehensive surveillance agreement with Bolsa during a six month pilot period in which the Exchange will rely on the MOU for purposes of satisfying its surveillance and regulatory responsibilities with respect to the Fund components trading on Bolsa. The Exchange represents that it will regularly update the Commission on the status of its negotiations with Bolsa. The Exchange further represents that it is currently engaged in discussions to enter into information sharing agreements with certain other exchanges, and that upon signing such agreements, ISE will no longer need to rely on the Commission’s MOU with the CNBV. The Commission notes that ISE currently has in place surveillance agreements with foreign exchanges that cover 45.97% of the securities in the Fund, and that the Index upon which the Fund is based appears to be a broad based-index. For these reasons, the Commission designates the proposed rule change to be operative upon filing with the Commission for a six month pilot period until February 27, 2008.20 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. sroberts on PROD1PC70 with NOTICES 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: 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–ISE–2007–72. 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 am and 3 pm. Copies of the filing also will be available for inspection and copying at the principal office of ISE. 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–ISE– 2007–72 and should be submitted on or before September 21, 2007. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.21 Nancy M. Morris, Secretary. [FR Doc. E7–17355 Filed 8–30–07; 8:45 am] BILLING CODE 8010–01–P 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–ISE–2007–72 on the subject line. SECURITIES AND EXCHANGE COMMISSION [Release No. 34–56305; File No. SR–NSX– 2007–09] Self-Regulatory Organizations; National Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to the Amendment of Its Rules in Light of Amendments to SEC Rule 10a–1 and Regulation SHO August 22, 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 July 3, 2007 and July 6, 2007, National Stock Exchange, Inc. (‘‘NSX’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’ or ‘‘SEC’’) the proposed rule change and their corresponding amendments, as described in Items I and II below, which Items have been substantially prepared by the Exchange. NSX has designated the proposed rule change as constituting a ‘‘non-controversial’’ rule change under paragraph (f)(6) of Rule 19b–4 under the Act,3 which renders the proposal effective upon receipt of this filing by the Commission. The Commission is publishing this notice to solicit comment on the proposed rule change from interested parties. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange is proposing to amend NSX Rules 11.21and 14.2(b)(7) in light of the Commission’s short sale regulation, Regulation SHO under the Securities Exchange Act of 1934. Certain provisions of Regulation SHO adopted in the Commission’s 2007 release regarding the price test 4 supercede the above NSX Rules related to short sales. As a result, the Exchange is filing this rule change to bring those rules in line with Regulation SHO, as now in effect. The text of the proposed rule change is below. Additions are italicized and deletions are bracketed. RULES OF NATIONAL STOCK EXCHANGE, INC. * * * 1 15 VerDate Aug<31>2005 00:43 Aug 31, 2007 Jkt 211001 21 17 PO 00000 CFR 200.30–3(a)(12). Frm 00108 Fmt 4703 Sfmt 4703 * U.S.C. 78s(b)(1). CFR 240.19b–4. 3 17 CFR 240.19b–4(f)(6). 4 Securities Exchange Act Release No. 55970 (June 28, 2007), 72 FR 36348 (July 3, 2007) (‘‘Price Test Adopting Release’’). 2 17 20 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). * E:\FR\FM\31AUN1.SGM 31AUN1 50430 Federal Register / Vol. 72, No. 169 / Friday, August 31, 2007 / Notices A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change CHAPTER XI Trading Rules * * * Rule 11.21 * * Short Sales All short sale orders shall be identified as [either] a short sale [or short sale exempt] when entered into the System. [Any marketable order entered in the System that, if matched for execution, would violate the short sale provisions of the Act or the rules and regulations thereunder should be cancelled. The foregoing shall not be in limitation of the Exchange’s ability to adopt additional Rules, interpretations or policies relating to short sales.] * * * * * CHAPTER XIV Intermarket Trading System Plan * * * * * Rule 14.2 Intermarket Trading System Application (a) No change. (b) Any commitment to trade which is transmitted to a User to another participating market center shall be firm and irrevocable for the period of time following transmission as was chosen by the sender of the commitment, and shall, at a minimum: (1)–(6) No change. (7) Reserved. [designate the commitment ‘‘short’’ or ‘‘short exempt’’ whenever it is a commitment to sell short which, if it should result in an execution in the market of the receiving market center, would result in a short sale to which the provisions of paragraph (a) of Rule 10a–1 under the Act would apply]; and (8) No change. (c)–(j) No change. * * * * * sroberts on PROD1PC70 with NOTICES 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 parts of such statements. VerDate Aug<31>2005 00:43 Aug 31, 2007 Jkt 211001 1. Purpose On July 28, 2004, the Commission adopted certain provisions of a new short sale regulation, designated Regulation SHO. On June 28, 2007, the Commission amended Regulation SHO and also repealed Rule 10a–1 under the Act.5 We have reviewed the NSX Rules to eliminate those rules which we believe are duplicative of, inconsistent with, or otherwise superceded by, Regulation SHO and the repeal of Rule 10a–1 under the Act.6 Therefore, the Exchange is filing this proposed rule change to amend those NSX rules that are affected by the Commission’s amended approach to short sale regulation. First, in addition to the repeal of Rule 10a–1 under the Act, the Commission added Rule 201(b) to Regulation SHO, prohibiting any SRO from having a short sale price test. The Commission also amended Rule 200(g) of Regulation SHO to remove the requirement that a brokerdealer mark a sell order of an equity security as ‘‘short exempt,’’ if the seller is relying on an exception from a price test. Accordingly, the Exchange proposes to amend NSX Rule 11.21 to remove the reference to ‘‘short exempt.’’ Additionally, the Exchange proposes to remove the second sentence respecting the cancellation of violative orders because there would be no ability to violate a rule that no longer exists. Finally, the Exchange is eliminating the savings clause as duplicative and restating an inherent authority of the Exchange. Further, the Exchange notes that NSX Rule 14.2(b)(7) regarding the Intermarket Trading System Plan (the ‘‘ITS Plan’’) describes marking requirements necessary to comply with Rule 10a–1 under the Act.7 In light of the repeal of Rule 10a–1, the Exchange proposes to eliminate this provision from its Rules. As noted below, the Exchange is filing the proposed rule change for immediate effectiveness, with an operative date of July 6, 2007, which is the same date as the effective date of Rule 201 and 5 Price Test Adopting Release. note that NSX does not have any ETP Holder that is not a member of another selfregulatory organization nor is NSX a designated examining authority or a designated self-regulatory organization for any ETP Holder. Accordingly, it does not subject its members to short interest reporting that is mandated by the other markets. 7 The Exchange will be filing a separate rule change to eliminate the entire chapter respecting the ITS Plan. 6 Please PO 00000 Frm 00109 Fmt 4703 Sfmt 4703 revised Rule 200(g) of Regulation SHO as well as the elimination of Rule 10a–1 under the Act.8 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with the provisions of section 6(b) of the Act 9 in general and furthers the objectives of section 6(b)(5) 10 in particular in that it is designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, and, in general, to protect investors and the public interest. NSX believes that the proposed rule change is necessary and appropriate to comply with the amendments to SEC Rule 10a–1 and Regulation SHO. B. Self-Regulatory Organization’s Statement on Burden on Competition The Exchange does not believe that 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) become operative 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) 12 thereunder. NSX has asked the Commission to waive the 30-day operative delay. The Commission believes such waiver is consistent with the protection of investors and the public interest because it would allow the proposed rule change to be effective on July 6, 2007, the compliance date for the amendments to Rule 10a–1 and 8 See Price Test Adopting Release. U.S.C. 78f(b). 10 15 U.S.C. 78f(b)(5). 11 15 U.S.C. 78s(b)(3)(A). 12 17 CFR 19b–4(f)(6). 9 15 E:\FR\FM\31AUN1.SGM 31AUN1 Federal Register / Vol. 72, No. 169 / Friday, August 31, 2007 / Notices Regulation SHO.13 For this reason, the Commission designates the proposal to be operative upon filing with the Commission. At any time within 60 days of the filing of the 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 protection of investors, or otherwise in furtherance of the purposes of the Act. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic Comments • Use the Commission’s Internet comment form (https://www.sec.gov/ rules/sro.shtml); or • Send an e-mail to rulecomments@sec.gov. Please include File Number SR–NSX–2007–09 on the subject line. sroberts on PROD1PC70 with NOTICES Paper Comments • Send paper comments in triplicate to Nancy Morris, Secretary, Securities and Exchange Commission, 100 F. Street, NE., Washington, DC 20549– 1090. All submissions should refer to File Number SR–NSX–2007–09. This file number should be included in the subject line if e-mail is used. To help the Commission process and review 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 statement 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 filings will also be 13 For purposes only of waiving the 30-day preoperative period, the Commission has considered the proposed rule change’s impact on efficiency, competition and capital formation. 15 U.S.C. 78c(f). VerDate Aug<31>2005 00:43 Aug 31, 2007 Jkt 211001 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–NSX–2007–09 and should be submitted on or before September 21, 2007. For the Commission by the Division of Market Regulation, pursuant to delegated authority.14 Nancy M. Morris, Secretary. [FR Doc. E7–17228 Filed 8–30–07; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–56329; File No. SR– NYSEArca–2007–75] Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing of Proposed Rule Change and Amendment No. 1 Thereto to Expand the Trading Hours of Certain Exchange-Traded Funds August 28, 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 July 30, 2007, NYSE Arca, Inc. (‘‘NYSE Arca’’ or ‘‘Exchange’’), through its wholly owned subsidiary NYSE Arca Equities, Inc. (‘‘NYSE Arca Equities’’), 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 the Exchange. On August 22, 2007, the Exchange submitted Amendment No. 1 to the proposed rule change. 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 expand the trading hours of securities of certain exchange-traded funds (‘‘ETFs’’) identified herein to include all three Exchange trading sessions (Opening, Core Trading, and Late Trading Sessions). The text of the proposed rule change is available at the Exchange, the 14 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 PO 00000 Frm 00110 Fmt 4703 Sfmt 4703 50431 Commission’s Public Reference Room, and https://www.nyse.com. 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 NYSE Arca Equities Rule 7.34 provides for three trading sessions on the NYSE Arca Marketplace each day that NYSE Arca Equities is open for business: (1) An Opening Session (4 a.m. to 9:30 a.m. Eastern Time or ‘‘ET’’); (2) a Core Trading Session (9:30 a.m. to 4 p.m. ET); and (3) a Late Trading Session (4 p.m. to 8 p.m. ET). The Core Trading Session for securities described in NYSE Arca Equities Rules 5.2(j)(3), 8.100, 8.200, 8.201, 8.202, 8.203, 8.300, and 8.400 currently concludes at 4:15 p.m. ET. 3 NYSE Arca proposes to expand the trading hours of securities of the ETFs identified below to include all three Exchange trading sessions. The Commission previously approved proposals to list and trade and to trade pursuant to unlisted trading privileges (‘‘UTP’’) the securities of such ETFs. The following ETFs are listed in reverse chronological order based on the dates of the Commission’s approval orders, in one, but not all three, of the Exchange’s trading sessions: • the PowerShares DB U.S. Dollar Index Bullish Fund and the PowerShares DB U.S. Dollar Index Bearish Fund; 4 3 NYSE Arca Equities Rules 5.2(j)(3), 8.100, 8.200, 8.201, 8.202, 8.203, 8.300, and 8.400 relate to Investment Company Units, Portfolio Depositary Receipts, Trust Issued Receipts, Commodity-Based Trust Shares, Currency Trust Shares, Commodity Index Trust Shares, Partnership Units, and Paired Trust Shares, respectively. See Securities Exchange Act Release No. 54997 (December 21, 2006), 71 FR 78501 (December 29, 2006) (SR–NYSEArca–2006– 77) (establishing hours of trading for securities of certain ETFs). 4 These ETFs were approved for trading on the Exchange pursuant to UTP under Commentary .02 Continued E:\FR\FM\31AUN1.SGM 31AUN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 72, Number 169 (Friday, August 31, 2007)]
[Notices]
[Pages 50429-50431]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-17228]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-56305; File No. SR-NSX-2007-09]


Self-Regulatory Organizations; National Stock Exchange, Inc.; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
Relating to the Amendment of Its Rules in Light of Amendments to SEC 
Rule 10a-1 and Regulation SHO

August 22, 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 July 3, 2007 and July 6, 2007, National Stock Exchange, Inc. 
(``NSX'' or ``Exchange'') filed with the Securities and Exchange 
Commission (``Commission'' or ``SEC'') the proposed rule change and 
their corresponding amendments, as described in Items I and II below, 
which Items have been substantially prepared by the Exchange. NSX has 
designated the proposed rule change as constituting a ``non-
controversial'' rule change under paragraph (f)(6) of Rule 19b-4 under 
the Act,\3\ which renders the proposal effective upon receipt of this 
filing by the Commission. The Commission is publishing this notice to 
solicit comment on the proposed rule change from interested parties.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3 \ 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 is proposing to amend NSX Rules 11.21and 14.2(b)(7) in 
light of the Commission's short sale regulation, Regulation SHO under 
the Securities Exchange Act of 1934. Certain provisions of Regulation 
SHO adopted in the Commission's 2007 release regarding the price test 
\4\ supercede the above NSX Rules related to short sales. As a result, 
the Exchange is filing this rule change to bring those rules in line 
with Regulation SHO, as now in effect. The text of the proposed rule 
change is below. Additions are italicized and deletions are bracketed.
---------------------------------------------------------------------------

    \4\ Securities Exchange Act Release No. 55970 (June 28, 2007), 
72 FR 36348 (July 3, 2007) (``Price Test Adopting Release'').
---------------------------------------------------------------------------

RULES OF NATIONAL STOCK EXCHANGE, INC.

* * * * *

[[Page 50430]]

CHAPTER XI

Trading Rules
* * * * *

Rule 11.21 Short Sales

    All short sale orders shall be identified as [either] a short sale 
[or short sale exempt] when entered into the System. [Any marketable 
order entered in the System that, if matched for execution, would 
violate the short sale provisions of the Act or the rules and 
regulations thereunder should be cancelled. The foregoing shall not be 
in limitation of the Exchange's ability to adopt additional Rules, 
interpretations or policies relating to short sales.]
* * * * *

CHAPTER XIV

Intermarket Trading System Plan
* * * * *

Rule 14.2 Intermarket Trading System Application

    (a) No change.
    (b) Any commitment to trade which is transmitted to a User to 
another participating market center shall be firm and irrevocable for 
the period of time following transmission as was chosen by the sender 
of the commitment, and shall, at a minimum:
    (1)-(6) No change.
    (7) Reserved. [designate the commitment ``short'' or ``short 
exempt'' whenever it is a commitment to sell short which, if it should 
result in an execution in the market of the receiving market center, 
would result in a short sale to which the provisions of paragraph (a) 
of Rule 10a-1 under the Act would apply]; and
    (8) No change.
    (c)-(j) No change.
* * * * *

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 parts of such 
statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    On July 28, 2004, the Commission adopted certain provisions of a 
new short sale regulation, designated Regulation SHO. On June 28, 2007, 
the Commission amended Regulation SHO and also repealed Rule 10a-1 
under the Act.\5\ We have reviewed the NSX Rules to eliminate those 
rules which we believe are duplicative of, inconsistent with, or 
otherwise superceded by, Regulation SHO and the repeal of Rule 10a-1 
under the Act.\6\ Therefore, the Exchange is filing this proposed rule 
change to amend those NSX rules that are affected by the Commission's 
amended approach to short sale regulation.
---------------------------------------------------------------------------

    \5\ Price Test Adopting Release.
    \6\ Please note that NSX does not have any ETP Holder that is 
not a member of another self-regulatory organization nor is NSX a 
designated examining authority or a designated self-regulatory 
organization for any ETP Holder. Accordingly, it does not subject 
its members to short interest reporting that is mandated by the 
other markets.
---------------------------------------------------------------------------

    First, in addition to the repeal of Rule 10a-1 under the Act, the 
Commission added Rule 201(b) to Regulation SHO, prohibiting any SRO 
from having a short sale price test. The Commission also amended Rule 
200(g) of Regulation SHO to remove the requirement that a broker-dealer 
mark a sell order of an equity security as ``short exempt,'' if the 
seller is relying on an exception from a price test. Accordingly, the 
Exchange proposes to amend NSX Rule 11.21 to remove the reference to 
``short exempt.'' Additionally, the Exchange proposes to remove the 
second sentence respecting the cancellation of violative orders because 
there would be no ability to violate a rule that no longer exists. 
Finally, the Exchange is eliminating the savings clause as duplicative 
and restating an inherent authority of the Exchange.
    Further, the Exchange notes that NSX Rule 14.2(b)(7) regarding the 
Intermarket Trading System Plan (the ``ITS Plan'') describes marking 
requirements necessary to comply with Rule 10a-1 under the Act.\7\ In 
light of the repeal of Rule 10a-1, the Exchange proposes to eliminate 
this provision from its Rules.
---------------------------------------------------------------------------

    \7\ The Exchange will be filing a separate rule change to 
eliminate the entire chapter respecting the ITS Plan.
---------------------------------------------------------------------------

    As noted below, the Exchange is filing the proposed rule change for 
immediate effectiveness, with an operative date of July 6, 2007, which 
is the same date as the effective date of Rule 201 and revised Rule 
200(g) of Regulation SHO as well as the elimination of Rule 10a-1 under 
the Act.\8\
---------------------------------------------------------------------------

    \8\ See Price Test Adopting Release.
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the provisions of section 6(b) of the Act \9\ in general and 
furthers the objectives of section 6(b)(5) \10\ in particular in that 
it is designed to prevent fraudulent and manipulative acts and 
practices, to promote just and equitable principles of trade, and, in 
general, to protect investors and the public interest. NSX believes 
that the proposed rule change is necessary and appropriate to comply 
with the amendments to SEC Rule 10a-1 and Regulation SHO.
---------------------------------------------------------------------------

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

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that 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) 
become operative 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) \12\ thereunder.
---------------------------------------------------------------------------

    \11\ 15 U.S.C. 78s(b)(3)(A).
    \12\ 17 CFR 19b-4(f)(6).
---------------------------------------------------------------------------

    NSX has asked the Commission to waive the 30-day operative delay. 
The Commission believes such waiver is consistent with the protection 
of investors and the public interest because it would allow the 
proposed rule change to be effective on July 6, 2007, the compliance 
date for the amendments to Rule 10a-1 and

[[Page 50431]]

Regulation SHO.\13\ For this reason, the Commission designates the 
proposal to be operative upon filing with the Commission.
---------------------------------------------------------------------------

    \13\ For purposes only of waiving the 30-day pre-operative 
period, the Commission has considered the proposed rule change's 
impact on efficiency, competition and capital formation. 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 rule change if it 
appears to the Commission that such action is necessary or appropriate 
in the public interest, for protection of investors, or otherwise in 
furtherance of the purposes of the Act.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (https://
www.sec.gov/rules/sro.shtml); or
     Send an e-mail to rule-comments@sec.gov. Please include 
File Number SR-NSX-2007-09 on the subject line.

Paper Comments

     Send paper comments in triplicate to Nancy Morris, 
Secretary, Securities and Exchange Commission, 100 F. Street, NE., 
Washington, DC 20549-1090.

All submissions should refer to File Number SR-NSX-2007-09. This file 
number should be included in the subject line if e-mail is used. To 
help the Commission process and review 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 statement 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 filings will also 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-NSX-2007-09 and should be 
submitted on or before September 21, 2007.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\14\
---------------------------------------------------------------------------

    \14\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Nancy M. Morris,
Secretary.
 [FR Doc. E7-17228 Filed 8-30-07; 8:45 am]
BILLING CODE 8010-01-P

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