Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to NYSE Rule 104.10(6) (Dealings With Specialists), 56419-56421 [E7-19490]

Download as PDF Federal Register / Vol. 72, No. 191 / Wednesday, October 3, 2007 / Notices Commission that such action is necessary or appropriate in the public interest, for the protection of investors or otherwise in furtherance of the purposes of the Act. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: rwilkins on PROD1PC63 with NOTICES Electronic Comments • Use the Commission’s Internet comment form (http://www.sec.gov/ rules/sro.shtml); or • Send an e-mail to rulecomments@sec.gov. Please include File Number SR–NYSE–2007–82 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–2007–82. 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, 100 F Street, NE., Washington, DC 20549, on official business days between the hours of 10 a.m. and 3 p.m. Copies of the filing also will be available for inspection and copying at the principal office of the NYSE. 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–2007–82 and should be submitted on or before October 24, 2007. VerDate Aug<31>2005 18:31 Oct 02, 2007 Jkt 211001 For the Commission, by the Division of Market Regulation, pursuant to delegated authority.34 Florence E. Harmon, Deputy Secretary. [FR Doc. E7–19488 Filed 10–2–07; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–56554; File No. SR–NYSE– 2007–84] Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to NYSE Rule 104.10(6) (Dealings With Specialists) September 27, 2007. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the ‘‘Act’’),1 and Rule 19b–4 thereunder,2 notice is hereby given that on September 25, 2007, the New York Stock Exchange LLC (‘‘NYSE’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’) the proposed rule change as described in Items I and II below, which Items have been substantially prepared by the NYSE. The NYSE has designated the proposed rule change as a ‘‘non-controversial’’ rule change pursuant to Section 19(b)(3)(A) of the Act 3 and Rule 19b– 4(f)(6) thereunder,4 which renders the proposed rule change effective upon filing with the Commission. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The NYSE is proposing to extend for three (3) months the current pilot related to specialist stabilization requirements operating pursuant to NYSE Rule 104.10(6) (Specialist Transactions in Active Securities that Establish or Increase the Specialist’s Position) (‘‘Stabilization Pilot’’),5 that is scheduled to terminate on September 30, 2007. The text of the proposed rule change is available on NYSE’s Web site at http://www.nyse.com, at NYSE’s 34 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 15 U.S.C. 78s(b)(3)(A). 4 17 CFR 240.19b–4(f)(6). 5 See Securities Exchange Act Release No. 54860 (December 1, 2006), 71 FR 71221 (December 8, 2006) (SR–NYSE 2006–76). 1 15 PO 00000 Frm 00089 Fmt 4703 Sfmt 4703 56419 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 In its filing with the Commission, the NYSE 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 NYSE 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 proposing to extend the operation of the Stabilization Pilot pursuant to NYSE Rule 104.10(6) from September 30, 2007 to the earlier of December 31, 2007 or such time as the Commission approves a proposal by the Exchange to modify the current Pilot.6 a. Stabilization Pilot On December 1, 2006, the Commission approved changes to NYSE Rules 104.10(5) and 104.10(6) governing specialist stabilization requirements.7 The amendments to the Rule moved away from defining stabilization in terms of the last sale to focus on market conditions, the type of trade in question and the specialist’s existing position. The amendments to NYSE Rule 104.10(6) govern Conditional Transactions (as defined below) in active securities (‘‘Stabilization Pilot’’).8 Pursuant to the Stabilization Pilot, specialists can trade in active securities that establish or increase a position by reaching across the market to trade in 6 On September 14, 2007, the Exchange filed SR– NYSE–2007–83 in order to amend NYSE Rule 104.10 to (i) extend the duration of the Stabilization Pilot to March 31, 2008; (ii) remove the ‘‘active securities’’ limitation on Conditional Transactions that establish or increase a specialist’s position and reach across the market to transact with the Exchange’s published quote; and (iii) make certain conforming changes to NYSE Rule 104.10(5). See Securities Exchange Act Release No. 56455 (September 18, 2007), 72 FR 54499 (September 25, 2007) (SR–NYSE–2007–83). 7 See Securities Exchange Act Release No. 54860, supra note 5. 8 ‘‘Active’’ securities are: (a) securities comprising the S&P 500 Stock Index; (b) securities trading on the Exchange during the first five trading days following their initial public offering of such securities; and (c) securities that have been designated as ‘‘active’’ by a Floor Official subject to the provisions of the Rule. E:\FR\FM\03OCN1.SGM 03OCN1 56420 Federal Register / Vol. 72, No. 191 / Wednesday, October 3, 2007 / Notices the Exchange published bid (in the case of a specialist’s sale) or offer (in the case of a specialist’s purchase) when such bid (offer) is priced below (above) the last differently priced published bid (offer) (‘‘Conditional Transaction’’). A specialist is allowed to execute Conditional Transactions without restriction as to price provided the specialist follows said transaction with an appropriate transaction on the opposite side of the market commensurate with the size of the specialist’s transaction, which is referred to as ‘‘appropriate re-entry.’’ 9 The Exchange states that the Stabilization Pilot provides the specialist with the ability to effect transactions for its dealer account to provide support to the Hybrid Market. The Exchange believes that the specialists have a greater ability to position themselves to provide more liquidity against market trend and thus moderate volatility. The Exchange, therefore, requests that the Stabilization Pilot be extended for three (3) months to continue to afford specialists this needed flexibility to continue their adaptation to the new challenges of the Hybrid Market. The Exchange believes that extension of the Stabilization Pilot will continue to allow specialists to effectively manage their inventory in order to provide liquidity during times of market volatility. As such, the Exchange requests that the Commission extend the Stabilization Pilot to December 31, 2007, or such earlier time that the Commission approves the expansion of the Stabilization Pilot as discussed above. rwilkins on PROD1PC63 with NOTICES 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with the requirement under Section 6(b)(5) 10 of the Act that an Exchange have rules that are designed to promote just and equitable principles of trade, to remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general, to protect investors and the public interest. The Exchange also believes that the proposed rule change also is designed to support the 9 ‘‘Appropriate re-entry’’ for Conditional Transactions shall mean the specialist’s stabilization obligation to re-enter a transaction on the opposite side of the market at or before the price participation point (‘‘PPP’’). The PPP is an Exchange-issued minimum guideline that identifies the price at or before which a specialist is expected to re-enter the market after effecting a Conditional Transaction. PPPs are only minimum guidelines and compliance with them does not guarantee a specialist is meeting his or her obligation. 10 15 U.S.C. 78f(b)(5). VerDate Aug<31>2005 18:31 Oct 02, 2007 Jkt 211001 principles of Section 11A(a)(1) 11 in that it seeks to assure economically efficient execution of securities transactions. B. Self-Regulatory Organization’s Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants or Others The Exchange has neither solicited nor received written comments on the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the foregoing proposed rule change: (1) Does not significantly affect the protection of investors or the public interest; (2) does not impose any significant burden on competition; and (3) by its terms does not become operative for 30 days after the date of this filing, or such shorter time as the Commission may designate if consistent with the protection of investors and the public interest, the proposed rule change has become effective pursuant to Section 19(b)(3)(A) 12 of the Act and Rule 19b–4(f)(6) thereunder.13 As required under Rule 19b–4(f)(6)(iii),14 the Exchange provided the Commission with written 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 the filing of the proposed rule change. A proposed rule change filed under Rule 19b–4(f)(6) normally may not become operative prior to 30 days after the date of filing. However, Rule 19b– 4(f)(6)(iii) permits the Commission to designate a shorter time if such action is consistent with the protection of investors and the public interest. The NYSE requests that the Commission waive the 30-day operative delay, as specified in Rule 19b–4(f)(6)(iii), which would make the rule change effective and operative upon filing. The Commission believes that waiving the 30-day operative delay is consistent with the protection of investors and the public interest because such waiver would allow the Stabilization Pilot to continue without interruption through 11 15 U.S.C. 78k–1(a)(1). U.S.C. 78s(b)(3)(A). 13 17 CFR 240.19b–4(f)(6). 14 17 CFR 240.19b–4(f)(6)(iii). 12 15 PO 00000 Frm 00090 Fmt 4703 Sfmt 4703 the earlier of (i) December 30, 2007 or (ii) when the Commission acts on a corresponding proposed rule change,15 and provide the Exchange and the Commission additional time to evaluate the pilot.16 Accordingly, the Commission designates that the proposed rule change effective and operative upon filing with the Commission. 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. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic Comments • Use the Commission’s Internet comment form (http://www.sec.gov/ rules/sro.shtml); or • Send an e-mail to rulecomments@sec.gov. Please include File Number SR–NYSE–2007–84 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–2007–84. 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 15 See Securities Exchange Act Release No. 56455, supra note 6. 16 For purposes only of waiving the operative delay for this proposal, the Commission has considered the proposed rule’s impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). E:\FR\FM\03OCN1.SGM 03OCN1 Federal Register / Vol. 72, No. 191 / Wednesday, October 3, 2007 / Notices 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 NYSE. 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–2007–84 and should be submitted on or before October 24, 2007. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.17 Florence E. Harmon, Deputy Secretary. [FR Doc. E7–19490 Filed 10–2–07; 8:45 am] BILLING CODE 8011–01–P [Release No. 34–56556; File No. SR–NYSE– 2007–86] Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Extend the Moratorium on the Qualification and Registration of New Registered Competitive Market Makers and New Competitive Traders, Governed by Rules 107A and 110, Respectively, for an Additional Three Months rwilkins on PROD1PC63 with NOTICES September 27, 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 September 27, 2007, the New York Stock Exchange LLC (‘‘NYSE’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’) the proposed rule change as described in Items I and II below, which Items have been substantially prepared by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 VerDate Aug<31>2005 18:31 Oct 02, 2007 Jkt 211001 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. 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 SECURITIES AND EXCHANGE COMMISSION 17 17 I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The NYSE proposes to extend for three months the moratorium related to the qualification and registration of Registered Competitive Market Makers (‘‘RCMMs’’) pursuant to Exchange Rule 107A and Competitive Traders (‘‘CTs’’) pursuant to Exchange Rule 110. The text of the proposed rule change is available on the NYSE’s Web site (http:// www.nyse.com), at the NYSE, and at the Commission’s Public Reference Room. 1. Purpose The Exchange proposes to extend for three months the current moratorium related to the qualification and registration of RCMMs pursuant to Exchange Rule 107A and CTs pursuant to Exchange Rule 110. On September 22, 2005, the Exchange filed SR–NYSE–2005–63 3 with the Commission proposing to implement a moratorium on the qualification and registration of new RCMMs and CTs (‘‘Moratorium’’). The purpose of the Moratorium was to allow the Exchange an opportunity to review the viability of RCMMs and CTs in the NYSE HYBRID MARKETSM (‘‘Hybrid Market’’).4 The phased-in implementation of the Hybrid Market required the Exchange to extend the Moratorium an additional three times over the next fifteen (15) months.5 During each phase of the 3 See Securities Exchange Act Release No. 52648 (October 21, 2005), 70 FR 62155 (October 28, 2005) (SR–NYSE–2005–63). 4 See Securities Exchange Act Release No. 53539 (March 22, 2006), 71 FR 16353 (March 31, 2006) (SR–NYSE–2004–05) (establishing the Hybrid Market). 5 See Securities Exchange Act Release Nos. 54140 (July 13, 2006), 71 FR 41491 (July 21, 2006) (SR– NYSE–2006–48); 54985 (December 21, 2006), 72 FR 171 (January 3, 2007) (SR–NYSE–2006–113); and 55992 (June 29, 2007), 72 FR 37289 (July 9, 2007) (SR–NYSE–2007–57). PO 00000 Frm 00091 Fmt 4703 Sfmt 4703 56421 Hybrid Market, new system functionality was included in the operation of Exchange systems and new data was generated. As a result, the Exchange was unable to make an informed decision as to the viability of RCMMs and CTs in the Hybrid Market. The Exchange continued to review the data related to RCMMs and CTs generated during the phasing-in of the Hybrid Market. Based on its review, the Exchange believes that it now has the requisite data to decide what roles, if any, RCMMs and CTs should perform in the current Hybrid Market. The Exchange now proposes to extend the Moratorium, as amended,6 for an additional three months to December 31, 2007 in order to finalize its determination as to the roles of RCMMs and CTs in the Exchange’s Hybrid Market and to formally submit a proposal to the Commission outlining these roles. The Exchange will issue an Information Memo announcing the extension of the Moratorium. 2. Statutory Basis The basis under the Act 7 for this proposed rule change is the requirement under Section 6(b)(5) 8 that an exchange have rules that are designed to promote just and equitable principles of trade, to remove impediments to and perfect the mechanism of a free and open market and a national market system and, in general, to protect investors and the public interest. 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 proposed rule change: (i) Does not significantly affect the protection of investors or the public interest; (ii) does not impose any 6 See Securities Exchange Act Release No.53549 (2006), 71 FR 16388 (March 31, 2006) (SR–NYSE– 2006–11) (making certain amendments to the Moratorium). 7 15 U.S.C. 78a. 8 15 U.S.C. 78f(b)(5). E:\FR\FM\03OCN1.SGM 03OCN1

Agencies

[Federal Register Volume 72, Number 191 (Wednesday, October 3, 2007)]
[Notices]
[Pages 56419-56421]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-19490]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-56554; File No. SR-NYSE-2007-84]


Self-Regulatory Organizations; New York Stock Exchange LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
Relating to NYSE Rule 104.10(6) (Dealings With Specialists)

September 27, 2007.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given 
that on September 25, 2007, the New York Stock Exchange LLC (``NYSE'' 
or ``Exchange'') filed with the Securities and Exchange Commission 
(``Commission'') the proposed rule change as described in Items I and 
II below, which Items have been substantially prepared by the NYSE. The 
NYSE has designated the proposed rule change as a ``non-controversial'' 
rule change pursuant to Section 19(b)(3)(A) of the Act \3\ and Rule 
19b-4(f)(6) thereunder,\4\ which renders the proposed rule change 
effective upon filing with the Commission. The Commission is publishing 
this notice to solicit comments on the proposed rule change from 
interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The NYSE is proposing to extend for three (3) months the current 
pilot related to specialist stabilization requirements operating 
pursuant to NYSE Rule 104.10(6) (Specialist Transactions in Active 
Securities that Establish or Increase the Specialist's Position) 
(``Stabilization Pilot''),\5\ that is scheduled to terminate on 
September 30, 2007. The text of the proposed rule change is available 
on NYSE's Web site at http://www.nyse.com, at NYSE's principal office, 
and at the Commission's Public Reference Room.
---------------------------------------------------------------------------

    \5\ See Securities Exchange Act Release No. 54860 (December 1, 
2006), 71 FR 71221 (December 8, 2006) (SR-NYSE 2006-76).
---------------------------------------------------------------------------

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 NYSE 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 NYSE 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 proposing to extend the operation of the 
Stabilization Pilot pursuant to NYSE Rule 104.10(6) from September 30, 
2007 to the earlier of December 31, 2007 or such time as the Commission 
approves a proposal by the Exchange to modify the current Pilot.\6\
---------------------------------------------------------------------------

    \6\ On September 14, 2007, the Exchange filed SR-NYSE-2007-83 in 
order to amend NYSE Rule 104.10 to (i) extend the duration of the 
Stabilization Pilot to March 31, 2008; (ii) remove the ``active 
securities'' limitation on Conditional Transactions that establish 
or increase a specialist's position and reach across the market to 
transact with the Exchange's published quote; and (iii) make certain 
conforming changes to NYSE Rule 104.10(5). See Securities Exchange 
Act Release No. 56455 (September 18, 2007), 72 FR 54499 (September 
25, 2007) (SR-NYSE-2007-83).
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a. Stabilization Pilot
    On December 1, 2006, the Commission approved changes to NYSE Rules 
104.10(5) and 104.10(6) governing specialist stabilization 
requirements.\7\ The amendments to the Rule moved away from defining 
stabilization in terms of the last sale to focus on market conditions, 
the type of trade in question and the specialist's existing position. 
The amendments to NYSE Rule 104.10(6) govern Conditional Transactions 
(as defined below) in active securities (``Stabilization Pilot'').\8\
---------------------------------------------------------------------------

    \7\ See Securities Exchange Act Release No. 54860, supra note 5.
    \8\ ``Active'' securities are: (a) securities comprising the S&P 
500[reg] Stock Index; (b) securities trading on the Exchange during 
the first five trading days following their initial public offering 
of such securities; and (c) securities that have been designated as 
``active'' by a Floor Official subject to the provisions of the 
Rule.
---------------------------------------------------------------------------

    Pursuant to the Stabilization Pilot, specialists can trade in 
active securities that establish or increase a position by reaching 
across the market to trade in

[[Page 56420]]

the Exchange published bid (in the case of a specialist's sale) or 
offer (in the case of a specialist's purchase) when such bid (offer) is 
priced below (above) the last differently priced published bid (offer) 
(``Conditional Transaction''). A specialist is allowed to execute 
Conditional Transactions without restriction as to price provided the 
specialist follows said transaction with an appropriate transaction on 
the opposite side of the market commensurate with the size of the 
specialist's transaction, which is referred to as ``appropriate re-
entry.'' \9\
---------------------------------------------------------------------------

    \9\ ``Appropriate re-entry'' for Conditional Transactions shall 
mean the specialist's stabilization obligation to re-enter a 
transaction on the opposite side of the market at or before the 
price participation point (``PPP''). The PPP is an Exchange-issued 
minimum guideline that identifies the price at or before which a 
specialist is expected to re-enter the market after effecting a 
Conditional Transaction. PPPs are only minimum guidelines and 
compliance with them does not guarantee a specialist is meeting his 
or her obligation.
---------------------------------------------------------------------------

    The Exchange states that the Stabilization Pilot provides the 
specialist with the ability to effect transactions for its dealer 
account to provide support to the Hybrid Market. The Exchange believes 
that the specialists have a greater ability to position themselves to 
provide more liquidity against market trend and thus moderate 
volatility. The Exchange, therefore, requests that the Stabilization 
Pilot be extended for three (3) months to continue to afford 
specialists this needed flexibility to continue their adaptation to the 
new challenges of the Hybrid Market.
    The Exchange believes that extension of the Stabilization Pilot 
will continue to allow specialists to effectively manage their 
inventory in order to provide liquidity during times of market 
volatility. As such, the Exchange requests that the Commission extend 
the Stabilization Pilot to December 31, 2007, or such earlier time that 
the Commission approves the expansion of the Stabilization Pilot as 
discussed above.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the requirement under Section 6(b)(5) \10\ of the Act that an 
Exchange have rules that are designed to promote just and equitable 
principles of trade, to remove impediments to and perfect the mechanism 
of a free and open market and a national market system, and, in 
general, to protect investors and the public interest. The Exchange 
also believes that the proposed rule change also is designed to support 
the principles of Section 11A(a)(1) \11\ in that it seeks to assure 
economically efficient execution of securities transactions.
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78f(b)(5).
    \11\ 15 U.S.C. 78k-1(a)(1).
---------------------------------------------------------------------------

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

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition that is not necessary or appropriate 
in furtherance of the purposes of the Act.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants or Others

    The Exchange has neither solicited nor received written comments on 
the proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Because the foregoing proposed rule change: (1) Does not 
significantly affect the protection of investors or the public 
interest; (2) does not impose any significant burden on competition; 
and (3) by its terms does not become operative for 30 days after the 
date of this filing, or such shorter time as the Commission may 
designate if consistent with the protection of investors and the public 
interest, the proposed rule change has become effective pursuant to 
Section 19(b)(3)(A) \12\ of the Act and Rule 19b-4(f)(6) 
thereunder.\13\ As required under Rule 19b-4(f)(6)(iii),\14\ the 
Exchange provided the Commission with written 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 the filing of the proposed rule change.
---------------------------------------------------------------------------

    \12\ 15 U.S.C. 78s(b)(3)(A).
    \13\ 17 CFR 240.19b-4(f)(6).
    \14\ 17 CFR 240.19b-4(f)(6)(iii).
---------------------------------------------------------------------------

    A proposed rule change filed under Rule 19b-4(f)(6) normally may 
not become operative prior to 30 days after the date of filing. 
However, Rule 19b-4(f)(6)(iii) permits the Commission to designate a 
shorter time if such action is consistent with the protection of 
investors and the public interest. The NYSE requests that the 
Commission waive the 30-day operative delay, as specified in Rule 19b-
4(f)(6)(iii), which would make the rule change effective and operative 
upon filing. The Commission believes that waiving the 30-day operative 
delay is consistent with the protection of investors and the public 
interest because such waiver would allow the Stabilization Pilot to 
continue without interruption through the earlier of (i) December 30, 
2007 or (ii) when the Commission acts on a corresponding proposed rule 
change,\15\ and provide the Exchange and the Commission additional time 
to evaluate the pilot.\16\ Accordingly, the Commission designates that 
the proposed rule change effective and operative upon filing with the 
Commission.
---------------------------------------------------------------------------

    \15\ See Securities Exchange Act Release No. 56455, supra note 
6.
    \16\ For purposes only of waiving the operative delay for this 
proposal, the Commission has considered the proposed rule's impact 
on efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of 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.

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-2007-84 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-2007-84. 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

[[Page 56421]]

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 NYSE. 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-2007-84 and should be 
submitted on or before October 24, 2007.
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    \17\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\17\
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-19490 Filed 10-2-07; 8:45 am]
BILLING CODE 8011-01-P