Self-Regulatory Organizations; NYSEArca, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rules 7.34 and 7.35, 56425-56427 [E7-19535]
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Federal Register / Vol. 72, No. 191 / Wednesday, October 3, 2007 / Notices
rwilkins on PROD1PC63 with NOTICES
participants to effectively execute largesized orders. The Commission will
analyze the information provided in the
Exchange’s reports, in conjunction with
the information provided by other
exchanges and market participants, to
inform its evaluation and consideration
of any exchange’s proposed further
expansion of the Pilot.
The commenter further noted, to the
extent that additional size may be
available below the best bid or offer,25
options market participants discount the
value of such liquidity because it is
generally not transparent to the market
and is not easily accessible even if
displayed.26 The commenter noted that,
unlike in the equities markets, market
participants cannot quickly sweep
multiple markets through multiple price
levels to reach such additional liquidity.
The Commission encourages the
exchanges to consider measures that
would facilitate access to depth of book
quotes.
Finally, the commenter recommends
removing the poorest performing single
stock names from the Pilot and
replacing them with liquid index or
sector products.27 The Commission
agrees that there should be a mechanism
for removing option classes from the
Pilot. The Commission specifically
requested comment in the notice of
NYSE Arca’s proposal on: (1) Whether
there are circumstances under which
classes included in the Pilot should be
removed; (2) if so, what factors should
be considered in making the
determination to remove a class from
the Pilot, specifically whether an
objective standard should be used or
whether a more subjective analysis
should be allowed; (3) what concerns
might arise by removing a class from the
Pilot, and how could such concerns be
ameliorated; (4) how frequently should
such an analysis be undertaken, or
should the evaluation be automated;
25 Only two exchanges provided information on
‘‘depth of book’’ on their markets in the Pilot
classes. See NYSE Arca Report at 8–10, supra note
14, and ISE Report, supra note 14, at 9. ISE reported
that the average total size of all quotes on its book
at all price levels, weighted for volume, for all
thirteen Pilot classes was reduced by 61%. See ISE
Report, supra note 14, at 9. NYSE Arca compared
liquidity resident in its book within the legacy
minimum price variation to pre-Pilot top of book
liquidity and reported that volume weighted
liquidity across all thirteen Pilot classes decreased
1%. See NYSE Arca Report, supra note 14, at 8.
26 The Commission notes that currently only
NYSE Arca makes available quotes and orders on
its book below the NBBO. See https://
www.nysedata.com/nysedata/InformationProducts/
ArcaBook/tabid/293/Default.aspx. The Commission
anticipates that to the extent this display of
information proves to be valuable to the options
market as a whole, other exchanges may choose to
make this information available as well.
27 See supra, note 22.
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and (5) if a class is to be removed from
the Pilot, how much notice should be
given to market participants that the
quoting increment will change, but did
not receive any comments. The
Commission will continue to consider
comments on how to fairly and
objectively determine if a class should
be removed from the Pilot. Finally, to
the extent that the Exchange files a
proposed rule change to further expand
the Pilot, the Commission urges it to
include in any such proposal a
methodology for removing classes from
the Pilot.
For the reasons discussed above, the
Commission believes that the proposed
rule change is consistent with the Act.
IV. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,28 that the
proposed rule change (SR–NYSEArca–
2007–88) be, and hereby is, approved on
a pilot basis, which will end on March
27, 2009.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.29
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–19498 Filed 10–2–07; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–56545; File No. SR–
NYSEArca–2007–95]
Self-Regulatory Organizations;
NYSEArca, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Amend Rules 7.34 and
7.35
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 17, 2007, NYSE Arca, Inc.
(‘‘NYSE Arca’’ or ‘‘Exchange’’), through
its wholly owned subsidiary, NYSE
Arca Equities, Inc. (‘‘NYSE Arca
Equities’’ or ‘‘Corporation’’), filed with
the Securities and Exchange
Commission (‘‘Commission’’ or ‘‘SEC’’)
the proposed rule change as described
in Items I, II and III below, which Items
have been substantially prepared by the
Exchange. NYSE Arca has designated
this proposal pursuant to Section
28 15
U.S.C. 78s(b)(2).
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
29 17
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56425
19(b)(3)(A) of the Act 3 and Rule 19b–
4(f)(5) 4 thereunder, which renders the
proposal 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 Exchange proposes, among other
minor changes, to amend NYSE Arca
Equities Rule 7.35 in order to reduce the
Opening, Market Order, and Closing
auction lock-out period to one minute.
The text of the proposed rule change is
available at the Exchange, the
Commission’s Public Reference Room,
and 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. The text of
these statements may be examined at
the places specified in Item IV below.
The Exchange has substantially
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 proposes to amend
NYSE Arca Equities Rule 7.35 in order
to reduce the Opening, Market Order,
and Closing Auction lock-out periods to
one minute.5 The Exchange believes
that compressing the lock-out periods
will offer its Users 6 greater order entry
or cancellation flexibility and more
informed market participation by
allowing its Users to benefit from the
dissemination of auction related
information for an additional minute
prior to the lock-out periods.
Opening Auction
Pursuant to NYSE Arca Rule
7.35(a)(4), Users are currently prevented
from cancelling orders that are eligible
3 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(5).
5 NYSE Arca Equities Rule 7.34(a) provides for
three equities trading sessions on the Exchange: The
Opening Session (4 a.m. to 9:30 a.m. Eastern Time
(‘‘E.T.’’)), the Core Trading Session (9:30 a.m. to 4
p.m. E.T.), and the Late Trading Session (4 p.m. to
8 p.m. E.T.).
6 See NYSE Arca Rule 1.1(yy) for the definition
of ‘‘User.’’
4 17
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Federal Register / Vol. 72, No. 191 / Wednesday, October 3, 2007 / Notices
for the Opening Auction in the last two
minutes prior to the Opening Session
until the conclusion of the Opening
Auction. The Exchange proposes to
reduce this freeze or lock-out period to
one minute.
rwilkins on PROD1PC63 with NOTICES
Market Order Auction
Pursuant to NYSE Arca Rule
7.35(c)(2), Users are also currently
prevented from entering certain orders
for the final two minutes before the
Opening Auction and the Start of the
Exchange’s Core Trading Session.
Specifically, Market Orders and
Auction-Only Limit Orders may not be
entered on the same side as the
imbalance between 6:28 a.m. (Pacific
Time) and the conclusion of the Market
Order Auction. Also, Limited Price
Orders not eligible for the Opening
Session, Market Orders, Auction-Only
Limit Orders, and Cleanup Orders may
not be cancelled between 6:28 a.m.
(Pacific Time) and the conclusion of the
Market Order Auction. The Exchange
proposes herein to amend NYSE Arca
Rule 7.35(c)(2)(A)(1)(iii) and NYSE Arca
Rules 7.35(c)(2)(A)(2) & (3) to compress
these freeze or lock-out periods to one
minute. In addition, the Exchange
proposes to amend NYSE Arca Rules
7.35(d)(1) & (2) in order to compress the
lock-out periods governing the
execution eligibility of Limit Price
Orders and Market Orders entered
before the Market Order Auction to one
minute, from 6:28 a.m. (Pacific Time) to
6:29 a.m. (Pacific Time). Similarly, the
Exchange proposes amending Rule
7.34(d)(1)(H) to permit Limit Price
Orders designated for the Core Trading
Session, entered for an additional
minute up until 6:29 a.m. (Pacific Time)
(instead of 6:28 a.m. Pacific Time), to
participate in the Market Order Auction.
Closing Auction
Further, according to NYSE Arca Rule
7.35(e)(2)(B), Market-on-Close Orders
and Limit-on-Close Orders may not be
cancelled between 12:58 p.m. (Pacific
Time) and the conclusion of the Closing
Auction. In addition, according to NYSE
Arca Rule 7.35(e)(2)(C), Market-on-Close
Orders and Limit-on-Close Orders may
not be entered on the same side as the
imbalance between 12:58 p.m. (Pacific
Time) and the conclusion of the Closing
Auction. The Exchange proposes to
compress the lock-out periods for either
entering or cancelling certain orders
preceding the Closing Auction, as
described above, from two minutes to
one minute.
Exchange Traded Funds
The Closing Auction for Exchange
Traded Funds (‘‘ETFs’’) commences at
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1:15 p.m. (Pacific Time). Pursuant to
NYSE Arca Rule 7.35(e)(3)(E), Closing
Auctions for ETFs follow the same twominute freeze or lock-out limitations
described above. Specifically, Marketon-Close Orders and Limit-on-Close
Orders may not be cancelled, and
Market-on-Close Orders and Limit-onClose Orders may not be entered on the
same side as the imbalance between
1:13 p.m. (Pacific Time) and the
conclusion of the Closing Auction.7
Consistent with the above described
rule change pertaining to Closing
Auctions, the Exchange proposes
reducing this lock-out period to one
minute.
By compressing the lock-out periods
to one minute as described above, Users
will benefit from the dissemination of
auction related information for an
additional minute resulting in greater
order entry or cancellation flexibility
and more informed market
participation. The Exchange intends this
system change to be effective on filing
and operative on September 17, 2007.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule
change effects a change in an existing
order-entry or trading system of a selfregulatory organization that: (i) Does not
significantly affect the protection of
investors or the public interest; (ii) does
not impose any significant burden on
competition; and (iii) does not have the
effect of limiting the access to or
availability of the system, it has become
effective pursuant to Section
19(b)(3)(A) 10 of the Act and Rule 19b–
4(f)(5) 11 thereunder. 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.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act 8 in general, and
furthers the objectives of Section 6(b)(5)
of the Act 9 in particular, because it is
designed to prevent fraudulent and
manipulative acts and practices, to
promote just and equitable principles of
trade, to foster cooperation and
coordination with persons engaged in
facilitating transactions in securities,
and to remove impediments to and
perfect the mechanism of a free and
open market and a national market
system.
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–NYSEArca–2007–95 on the
subject line.
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.
7 Pursuant to telephone conversation between
Hong-Anh Tran, Special Counsel, Division of
Market Regulation, and Andrew Stevens, Assistant
General Counsel, Exchange, dated September 19,
2007.
8 15 U.S.C. 78f(b).
9 15 U.S.C. 78f(b)(5).
PO 00000
Frm 00096
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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–NYSEArca–2007–95. 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
10 15
11 17
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U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(5).
03OCN1
Federal Register / Vol. 72, No. 191 / Wednesday, October 3, 2007 / Notices
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–NYSEArca–2007–95 and
should be submitted on or before
October 24, 2007.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.12
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–19535 Filed 10–2–07; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–56541; File No. SR–Phlx–
2007–63]
Self-Regulatory Organizations;
Philadelphia Stock Exchange, Inc.;
Notice of Filing of Proposed Rule
Change Relating to Short Interest
Reporting
rwilkins on PROD1PC63 with NOTICES
September 26, 2007.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1, and Rule 19b–4 2 thereunder,
notice is hereby given that on August
16, 2007, the Philadelphia Stock
Exchange, Inc. (‘‘Phlx’’ or ‘‘Exchange’’)
filed with the Securities and Exchange
Commission (‘‘SEC’’ or ‘‘Commission’’),
and on September 20, 2007 amended,
the proposed rule change as described
in Items I, II, and III below, which Items
have been substantially prepared by the
Phlx. The Commission is publishing
this notice to solicit comments on the
proposed rule change, as amended, from
interested persons.
CFR 200.30–3(a)(12).
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 Phlx, pursuant to Section 19(b)(1)
of the Act 3 and Rule 19b–4 thereunder,4
proposes to make a technical
amendment to the text of Phlx Rule 786,
Supplementary Material .01, changing
the reference to Rule 200 of Regulation
SHO to Rule 200(a) of Regulation SHO.
In addition, Phlx proposes to add a new
Supplementary Material section to Rule
786 to amend the exceptions to the short
interest reporting requirement for
certain transactions.
The text of the amended Phlx Rule is
set forth below. Underlining indicates
additions; brackets indicate deletions.
*
*
*
*
*
Rule 786.
Periodic Reports
Member organizations shall submit, as
required by the Exchange, periodic
reports with respect to short positions in
securities.
Supplementary Material: * * *
.01 Short Positions—Member
organizations for which the Exchange is
the designated examining authority
(‘‘DEA’’) are required to report short
positions, including odd-lots, in each
stock or warrant traded on the
Exchange, and in each other stock or
warrant not traded on the Exchange for
which short positions are not otherwise
reported to another United States
securities exchange or association, using
such automated format and methods as
prescribed by the Exchange. Such
reports must include customer and
proprietary positions and must be made
at such times and covering such time
period as may be designated by the
Exchange. Member organizations whose
short positions have properly been
reported to, and are carried by, a nonmember clearing organization will be in
compliance with this rule if adequate
arrangements have been made providing
for the clearing organization to properly
report such positions to the Exchange or
to another United States securities
exchange or association.
• ‘‘Short’’ positions to be reported are
those resulting from ‘‘short’’ sales as
defined in Securities and Exchange
Commission Rule 200(a) of Regulation
SHO, but excluding sales that meet an
exception in .02 below[marked ‘‘sell
short exempt’’ pursuant to Rule 200(g)
of Regulation SHO]. Also, to be
excluded are ‘‘short’’ positions carried
for other members and member
organizations reporting for themselves.
12 17
1 15
VerDate Aug<31>2005
19:10 Oct 02, 2007
3 15
4 17
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U.S.C. 78s(b)(1).
CFR 240.19b–4.
Frm 00097
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56427
Only one report should be made for
each stock or warrant for which there is
a short position, if more than one
‘‘account’’ has a short position in the
same stock or warrant, the combined
aggregate should be reported.
Member organizations for which the
Exchange is not the DEA must report
short positions to its DEA if such DEA
has a requirement for such reports. If the
DEA does not have such a reporting
requirement, then such member
organization must comply with the
provisions of this rule.
.02 Exceptions
(a) Any sale by any person, for an
account in which he has an interest, if
such person owns the security sold and
intends to deliver such security as soon
as is possible without undue
inconvenience or expense.
(b) Any sale of a security covered by
a short sale rule on a national securities
exchange (except a sale to a stabilizing
bid complying with Rule 104 of
Regulation M) effected with the
approval of such exchange which is
necessary to equalize the price of such
security thereon with the current price
of such security on another national
securities exchange which is the
principal exchange market for such
security.
(c) Any sale of a security for a special
arbitrage account by a person who then
owns another security by virtue of which
he is, or presently will be, entitled to
acquire an equivalent number of
securities of the same class as the
securities sold; provided such sale, or
the purchase which such sale offsets, is
effected for the bona fide purpose of
profitting from a current difference
between the price of security sold and
the security owned and that such right
of acquisition was originally attached to
or represented by another security or
was issued to all the holders of any such
class of securities of the issuer.
(d) Any sale of a security registered
on, or admitted to unlisted trading
privileges on, a national securities
exchange effected for a special
international arbitrage account for the
bona fide purpose of profitting from a
current difference between the price of
such security on a securities market not
within or subject to the jurisdiction of
the United States and on a securities
market subject to the jurisdiction of the
United States; provided the seller at the
time of such sale knows or, by virtue of
information currently received, has
reasonable grounds to believe that an
offer enabling him to cover such sale is
then available to him such foreign
securities market and intends to accept
such offer immediately.
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]]>Agencies
[Federal Register Volume 72, Number 191 (Wednesday, October 3, 2007)]
[Notices]
[Pages 56425-56427]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-19535]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-56545; File No. SR-NYSEArca-2007-95]
Self-Regulatory Organizations; NYSEArca, Inc.; Notice of Filing
and Immediate Effectiveness of a Proposed Rule Change To Amend Rules
7.34 and 7.35
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 17, 2007, NYSE Arca, Inc. (``NYSE Arca'' or
``Exchange''), through its wholly owned subsidiary, NYSE Arca Equities,
Inc. (``NYSE Arca Equities'' or ``Corporation''), filed with the
Securities and Exchange Commission (``Commission'' or ``SEC'') the
proposed rule change as described in Items I, II and III below, which
Items have been substantially prepared by the Exchange. NYSE Arca has
designated this proposal pursuant to Section 19(b)(3)(A) of the Act \3\
and Rule 19b-4(f)(5) \4\ thereunder, which renders the proposal
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)(5).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes, among other minor changes, to amend NYSE
Arca Equities Rule 7.35 in order to reduce the Opening, Market Order,
and Closing auction lock-out period to one minute. The text of the
proposed rule change is available at the Exchange, the Commission's
Public Reference Room, and 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. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has substantially 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 proposes to amend NYSE Arca Equities Rule 7.35 in
order to reduce the Opening, Market Order, and Closing Auction lock-out
periods to one minute.\5\ The Exchange believes that compressing the
lock-out periods will offer its Users \6\ greater order entry or
cancellation flexibility and more informed market participation by
allowing its Users to benefit from the dissemination of auction related
information for an additional minute prior to the lock-out periods.
---------------------------------------------------------------------------
\5\ NYSE Arca Equities Rule 7.34(a) provides for three equities
trading sessions on the Exchange: The Opening Session (4 a.m. to
9:30 a.m. Eastern Time (``E.T.'')), the Core Trading Session (9:30
a.m. to 4 p.m. E.T.), and the Late Trading Session (4 p.m. to 8 p.m.
E.T.).
\6\ See NYSE Arca Rule 1.1(yy) for the definition of ``User.''
---------------------------------------------------------------------------
Opening Auction
Pursuant to NYSE Arca Rule 7.35(a)(4), Users are currently
prevented from cancelling orders that are eligible
[[Page 56426]]
for the Opening Auction in the last two minutes prior to the Opening
Session until the conclusion of the Opening Auction. The Exchange
proposes to reduce this freeze or lock-out period to one minute.
Market Order Auction
Pursuant to NYSE Arca Rule 7.35(c)(2), Users are also currently
prevented from entering certain orders for the final two minutes before
the Opening Auction and the Start of the Exchange's Core Trading
Session. Specifically, Market Orders and Auction-Only Limit Orders may
not be entered on the same side as the imbalance between 6:28 a.m.
(Pacific Time) and the conclusion of the Market Order Auction. Also,
Limited Price Orders not eligible for the Opening Session, Market
Orders, Auction-Only Limit Orders, and Cleanup Orders may not be
cancelled between 6:28 a.m. (Pacific Time) and the conclusion of the
Market Order Auction. The Exchange proposes herein to amend NYSE Arca
Rule 7.35(c)(2)(A)(1)(iii) and NYSE Arca Rules 7.35(c)(2)(A)(2) & (3)
to compress these freeze or lock-out periods to one minute. In
addition, the Exchange proposes to amend NYSE Arca Rules 7.35(d)(1) &
(2) in order to compress the lock-out periods governing the execution
eligibility of Limit Price Orders and Market Orders entered before the
Market Order Auction to one minute, from 6:28 a.m. (Pacific Time) to
6:29 a.m. (Pacific Time). Similarly, the Exchange proposes amending
Rule 7.34(d)(1)(H) to permit Limit Price Orders designated for the Core
Trading Session, entered for an additional minute up until 6:29 a.m.
(Pacific Time) (instead of 6:28 a.m. Pacific Time), to participate in
the Market Order Auction.
Closing Auction
Further, according to NYSE Arca Rule 7.35(e)(2)(B), Market-on-Close
Orders and Limit-on-Close Orders may not be cancelled between 12:58
p.m. (Pacific Time) and the conclusion of the Closing Auction. In
addition, according to NYSE Arca Rule 7.35(e)(2)(C), Market-on-Close
Orders and Limit-on-Close Orders may not be entered on the same side as
the imbalance between 12:58 p.m. (Pacific Time) and the conclusion of
the Closing Auction. The Exchange proposes to compress the lock-out
periods for either entering or cancelling certain orders preceding the
Closing Auction, as described above, from two minutes to one minute.
Exchange Traded Funds
The Closing Auction for Exchange Traded Funds (``ETFs'') commences
at 1:15 p.m. (Pacific Time). Pursuant to NYSE Arca Rule 7.35(e)(3)(E),
Closing Auctions for ETFs follow the same two-minute freeze or lock-out
limitations described above. Specifically, Market-on-Close Orders and
Limit-on-Close Orders may not be cancelled, and Market-on-Close Orders
and Limit-on-Close Orders may not be entered on the same side as the
imbalance between 1:13 p.m. (Pacific Time) and the conclusion of the
Closing Auction.\7\ Consistent with the above described rule change
pertaining to Closing Auctions, the Exchange proposes reducing this
lock-out period to one minute.
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\7\ Pursuant to telephone conversation between Hong-Anh Tran,
Special Counsel, Division of Market Regulation, and Andrew Stevens,
Assistant General Counsel, Exchange, dated September 19, 2007.
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By compressing the lock-out periods to one minute as described
above, Users will benefit from the dissemination of auction related
information for an additional minute resulting in greater order entry
or cancellation flexibility and more informed market participation. The
Exchange intends this system change to be effective on filing and
operative on September 17, 2007.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act \8\ in general, and furthers the
objectives of Section 6(b)(5) of the Act \9\ in particular, because it
is designed to prevent fraudulent and manipulative acts and practices,
to promote just and equitable principles of trade, to foster
cooperation and coordination with persons engaged in facilitating
transactions in securities, and to remove impediments to and perfect
the mechanism of a free and open market and a national market system.
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\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C. 78f(b)(5).
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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 effects a change in an
existing order-entry or trading system of a self-regulatory
organization that: (i) Does not significantly affect the protection of
investors or the public interest; (ii) does not impose any significant
burden on competition; and (iii) does not have the effect of limiting
the access to or availability of the system, it has become effective
pursuant to Section 19(b)(3)(A) \10\ of the Act and Rule 19b-4(f)(5)
\11\ thereunder. 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.
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\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 17 CFR 240.19b-4(f)(5).
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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-NYSEArca-2007-95 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-NYSEArca-2007-95. 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
[[Page 56427]]
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-NYSEArca-2007-95 and should be submitted on or before
October 24, 2007.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\12\
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\12\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-19535 Filed 10-2-07; 8:45 am]
BILLING CODE 8011-01-P
