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, 56421-56422 [E7-19537]

Download as PDF 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 (https:// 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 56422 Federal Register / Vol. 72, No. 191 / Wednesday, October 3, 2007 / Notices significant burden on competition; and (iii) does not become operative for 30 days after the date of the 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) of the Act 9 and Rule 19b– 4(f)(6) thereunder.10 A proposed rule change filed pursuant to Rule 19b–4(f)(6) under the Act 11 normally does not become operative for 30 days after the date of its filing. However, Rule 19b–4(f)(6)(iii)12 permits the Commission to designate a shorter time if such action is consistent with the protection of investors and the public interest. The NYSE has requested that the Commission waive the 30-day operative delay. The Commission believes that waiving the 30-day operative delay is consistent with the protection of investors and the public interest because it would allow the moratorium to continue without interruption so that the Exchange may have additional time to make a final determination as to the future roles of RCMMs and CTs in the Hybrid Market, if any, and to file with the Commission a proposed rule change outlining such roles. For these reasons, the Commission designates that the proposed rule change become operative immediately.13 At any time within 60 days of the filing of the proposed rule change, the Commission may summarily abrogate the 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: 9 15 U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(6). Pursuant to Rule 19b– 4(f)(6)(iii) under the Act, the Exchange is required to give the Commission 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 filing of the proposed rule change, or such shorter time as designated by the Commission. The Exchange has satisfied the five-day pre-filing requirement. 11 17 CFR 240.19b–4(f)(6). 12 17 CFR 240.19b–4(f)(6)(iii). 13 For purposes only of waiving the 30-day operative delay, the Commission has considered the proposed rule’s impact on efficiency, competition, and capital formation. 15 U.S.C. 78c(f). rwilkins on PROD1PC63 with NOTICES 10 17 VerDate Aug<31>2005 18:31 Oct 02, 2007 Jkt 211001 Electronic Comments • Use the Commission’s Internet comment form (https://www.sec.gov/ rules/sro.shtml ); or • Send an e-mail to rulecomments@sec.gov. Please include File Number SR–NYSE–2007–86 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. SECURITIES AND EXCHANGE COMMISSION [Release No. 34–56568; File No. SR– NYSEArca–2007–88] Self-Regulatory Organizations; NYSE Arca, Inc.; Order Granting Approval to a Proposed Rule Change Relating to an Extension and Expansion of the Penny Pilot Program September 27, 2007. I. Introduction On August 16, 2007, NYSE Arca, Inc. (‘‘NYSE Arca’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’), pursuant All submissions should refer to File to Section 19(b)(1) of the Securities Number SR–NYSE–2007–86. This file Exchange Act of 1934 (‘‘Act’’),1 and number should be included on the Rule 19b–4 thereunder,2 a proposed rule subject line if e-mail is used. To help the change to extend and expand a pilot Commission process and review your program to quote certain options in comments more efficiently, please use smaller increments (‘‘Pilot Program’’ or only one method. The Commission will ‘‘Pilot’’). The proposed rule change was post all comments on the Commission’s published for comment in the Federal Register on August 24, 2007.3 The Internet Web site (https://www.sec.gov/ Commission received one comment rules/sro.shtml ). Copies of the letter on the proposed rule change.4 submission, all subsequent This order approves the proposed rule amendments, all written statements change. with respect to the proposed rule change that are filed with the II. Description of the Proposal Commission, and all written Currently, the six options exchanges, communications relating to the including NYSE Arca, participate in the proposed rule change between the thirteen class Pilot Program,5 which is Commission and any person, other than scheduled to expire on September 27, those that may be withheld from the 2007.6 The Exchange proposes to extend public in accordance with the and expand the Pilot Program to include provisions of 5 U.S.C. 552, will be fifty additional classes, in two phases. available for inspection and copying in Phase One will begin on September the Commission’s Public Reference 28, 2007 and will continue for six Room, on official business days between months, until March 27, 2008. Phase One will add the following twenty-two the hours of 10 a.m. and 3 p.m. Copies options classes to the Pilot: SPDRs of the filing also will be available for inspection and copying at the principal 1 15 U.S.C. 78s(b)(1). office of the Exchange. All comments 2 17 CFR 240.19b–4. received will be posted without change; 3 See Securities Exchange Act Release No. 56280 the Commission does not edit personal (August 17, 2007), 72 FR 48717. 4 See letter to Nancy Morris, Secretary, identifying information from Commission, from John C. Nagel, Director & submissions. You should submit only Associate General Counsel, Citadel, dated information that you wish to make September 12, 2007 (‘‘Citadel Letter’’). available publicly. All submissions 5 The thirteen option classes currently in the Pilot should refer to File Number SR–NYSE– are: Ishares Russell 2000 (IWM); NASDAQ–100 2007–86 and should be submitted on or Index Tracking Stock (QQQQ); SemiConductor Holders Trust (SMH); General Electric Company before October 24, 2007. (GE); Advanced Micro Devices, Inc. (AMD), For the Commission, by the Division of Market Regulation, pursuant to delegated authority.14 Florence E. Harmon, Deputy Secretary. [FR Doc. E7–19537 Filed 10–2–07; 8:45 am] BILLING CODE 8011–01–P 14 17 PO 00000 CFR 200.30–3(a)(12). Frm 00092 Fmt 4703 Sfmt 4703 Microsoft Corporation (MSFT); Intel Corporation (INTC); Caterpillar, Inc. (CAT); Whole Foods Market, Inc. (WFMI); Texas Instruments, Inc. (TXN); Flextronics International Ltd. (FLEX); Sun Microsystems, Inc. (JAVA); and Agilent Technologies, Inc. (A). 6 The Pilot Program began on January 26, 2007 and is currently set to expire on September 27, 2007. See Securities Exchange Act Release No. 56150 (July 26, 2007), 72 FR 42460 (August 2, 2007) (SR–NYSEArca–2007–56). See also Securities Exchange Act Release No. 55156 (January 23, 2007), 72 FR 4759 (February 1, 2007) (SR–NYSEArca– 2006–73) (‘‘Original Pilot Program Approval Order’’). E:\FR\FM\03OCN1.SGM 03OCN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 72, Number 191 (Wednesday, October 3, 2007)]
[Notices]
[Pages 56421-56422]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-19537]


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

SECURITIES AND EXCHANGE COMMISSION

[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

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.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The 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 (https://
www.nyse.com), at the NYSE, and at the Commission's Public Reference 
Room.

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

    In its filing with the Commission, the Exchange included statements 
concerning the purpose of, and basis for, the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item IV below. The Exchange has prepared summaries, set forth in 
Sections A, B, and C below, of the most significant aspects of such 
statements.

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

1. Purpose
    The Exchange 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 MARKET^SM 
(``Hybrid Market'').\4\
---------------------------------------------------------------------------

    \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).
---------------------------------------------------------------------------

    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 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.
---------------------------------------------------------------------------

    \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).
---------------------------------------------------------------------------

    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.
---------------------------------------------------------------------------

    \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).
---------------------------------------------------------------------------

    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.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78a.
    \8\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

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

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

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

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

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

    Because the proposed rule change: (i) Does not significantly affect 
the protection of investors or the public interest; (ii) does not 
impose any

[[Page 56422]]

significant burden on competition; and (iii) does not become operative 
for 30 days after the date of the 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) of the Act \9\ and Rule 19b-4(f)(6) 
thereunder.\10\
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 17 CFR 240.19b-4(f)(6). Pursuant to Rule 19b-4(f)(6)(iii) 
under the Act, the Exchange is required to give the Commission 
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 filing of the proposed 
rule change, or such shorter time as designated by the Commission. 
The Exchange has satisfied the five-day pre-filing requirement.
---------------------------------------------------------------------------

    A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the 
Act \11\ normally does not become operative for 30 days after the date 
of its filing. However, Rule 19b-4(f)(6)(iii)\12\ permits the 
Commission to designate a shorter time if such action is consistent 
with the protection of investors and the public interest. The NYSE has 
requested that the Commission waive the 30-day operative delay. The 
Commission believes that waiving the 30-day operative delay is 
consistent with the protection of investors and the public interest 
because it would allow the moratorium to continue without interruption 
so that the Exchange may have additional time to make a final 
determination as to the future roles of RCMMs and CTs in the Hybrid 
Market, if any, and to file with the Commission a proposed rule change 
outlining such roles. For these reasons, the Commission designates that 
the proposed rule change become operative immediately.\13\
---------------------------------------------------------------------------

    \11\ 17 CFR 240.19b-4(f)(6).
    \12\ 17 CFR 240.19b-4(f)(6)(iii).
    \13\ For purposes only of waiving the 30-day operative delay, 
the Commission has considered the proposed rule'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 the 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 (https://
www.sec.gov/rules/sro.shtml ); or
     Send an e-mail to rule-comments@sec.gov. Please include 
File Number SR-NYSE-2007-86 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-2007-86. 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, 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 
Exchange. All comments received will be posted without change; the 
Commission does not edit personal identifying information from 
submissions. You should submit only information that you wish to make 
available publicly. All submissions should refer to File Number SR-
NYSE-2007-86 and should be submitted on or before October 24, 2007.

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

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

Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E7-19537 Filed 10-2-07; 8:45 am]
BILLING CODE 8011-01-P

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