Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to the Mid-Point Passive Liquidity Order, 65797-65798 [E7-22778]

Download as PDF Federal Register / Vol. 72, No. 225 / Friday, November 23, 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–2007–102 and should be submitted on or before December 14, 2007. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.20 Florence E. Harmon, Deputy Secretary. [FR Doc. E7–22782 Filed 11–21–07; 8:45 am] BILLING CODE 8011–01–P [Release No. 34–56790; File No. SR– NYSEArca–2007–113] Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to the Mid-Point Passive Liquidity Order mstockstill on PROD1PC66 with NOTICES November 15, 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 November 5, 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’’) the proposed rule change as described in Items I and II below, which Items have been substantially prepared by the Exchange. The Exchange filed the proposed rule change as a ‘‘non-controversial’’ proposed rule change pursuant to Section 19(b)(3)(A) 3 of the Act and Rule 19b–4(f)(6) thereunder,4 which renders the proposal effective upon filing with the Commission. The Commission is II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the Exchange included statements concerning the purpose of, and basis for the proposed rule change, and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has substantially prepared summaries, set forth in Sections A, B, and C below, of the most significant aspects of such statements. 1. Purpose As part of its continuing efforts to provide additional flexibility and increased functionality to its system and its Users,5 the Exchange proposes to amend Rule 7.31(h)(5) in order to reduce the MPL Order’s minimum order entry size and minimum executable size from 1000 to 100. The MPL Order 6 is a version of the NYSE Arca Passive Liquidity Order,7 except that it is executable only at the midpoint of the Protected Best Bid and Offer (‘‘PBBO’’). Presently, the MPL Order’s minimum order entry and execution size is 1000. The Exchange represents that this MPL Order type was initially designed to accommodate larger customer transactions. However, since its inception, it has become clear that Users with a typical order flow less than this threshold are frequently unable to use it. This proposed reduction of the order entry and execution size from 1000 to 100 will allow all Users the same flexibility in using this order type. The Exchange is not proposing any other changes or amendments to the 5 See NYSE Arca Rule 1.1(yy) for the definition of ‘‘User.’’ 6 See Securities Exchange Act Release No. 56072 (July 13, 2007), 72 FR 39867 (July 20, 2007) (SR– NYSEArca–2007–61). 7 See NYSE Arca Rule 7.31(h)(4). 20 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). 1 15 16:16 Nov 21, 2007 I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend NYSE Arca Rule 7.31(h)(5) in order to reduce the Mid-Point Passive Liquidity Order’s (‘‘MPL Order’’) minimum order entry size and minimum executable size from 1000 to 100. A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change SECURITIES AND EXCHANGE COMMISSION VerDate Aug<31>2005 publishing this notice to solicit comments on the proposed rule change from interested persons. Jkt 214001 PO 00000 Frm 00100 Fmt 4703 Sfmt 4703 65797 MPL order. The Exchange intends to offer this functionality in concert with other planned technological upgrades presently scheduled to be implemented on November 19, 2007, or such later date as communicated to its Users through a customer notice. The Exchange believes that reducing the minimum order entry size and the minimum execution size will further enhance order entry and execution opportunities on the Exchange. Retail customers, whose orders are typically smaller than 1000, will particularly benefit from this reduction and thus the proposed rule change will allow those Users the same opportunities as larger institutional customers. 2. Statutory Basis 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, in that 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 mechanisms of a free and open market and a national market system. 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 does not: (i) Significantly affect the protection of investors or the public interest; (ii) impose any significant burden on competition; and (iii) become operative for 30 days after the date of 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 8 15 9 15 U.S.C. 78f(b). U.S.C. 78f(b)(5). E:\FR\FM\23NON1.SGM 23NON1 65798 Federal Register / Vol. 72, No. 225 / Friday, November 23, 2007 / Notices Section 19(b)(3)(A) of the Act 10 and subparagraph (f)(6) of Rule 19b–4(f)(6) thereunder.11 A proposed rule change filed under 19b–4(f)(6) normally may not become operative prior to 30 days after the date of filing.12 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 Exchange has satisfied the five-day prefiling requirement. In addition, the Exchange has requested that the Commission waive the 30-day preoperative delay and designate the proposed rule change to become 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 reducing the MPL Order’s minimum size from 1000 to 100 will provide greater potential for all Users to be able to use this MPL Order type without delay. Further, the Commission believes that this change to an existing order type does not impose any burden on competition or significantly affect the protection of investors. Therefore, the Commission designates the proposal to become operative upon filing.13 At any time within 60 days of the filing of the proposed rule change, the Commission may summarily abrogate such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in the 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 mstockstill on PROD1PC66 with NOTICES • 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–NYSEArca–2007–113 on the subject line. U.S.C. 78s(b)(3)(A). 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 of this proposal, the Commission has considered the proposed rule’s impact on efficiency, competition, and capital formation. 15 U.S.C. 78c(f). 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. 34–56797; File No. SR– NYSEArca–2007–106] Self-Regulatory Organizations; NYSEArca, Inc.; Notice of Filing and Order Granting Accelerated Approval All submissions should refer to File Number SR–NYSEArca–2007–113. This of a Proposed Rule Change, as Modified by Amendment No. 1, To List file number should be included on the subject line if e-mail is used. To help the and Trade Options Already Listed on Another National Securities Exchange Commission process and review your comments more efficiently, please use November 15, 2007. only one method. The Commission will Pursuant to section 19(b)(1) 1 of the post all comments on the Commission’s Securities Exchange Act of 1934 (‘‘Act’’) 2 and Rule 19b–4 thereunder,3 Internet Web site (http://www.sec.gov/ notice is hereby given that on October rules/sro.shtml). Copies of the 9, 2007, NYSE Arca, Inc. (‘‘NYSE Arca’’ submission, all subsequent or ‘‘Exchange’’) filed with the Securities amendments, all written statements and Exchange Commission with respect to the proposed rule (‘‘Commission’’) the proposed rule change that are filed with the change as described in Items I, II and III Commission, and all written below, which Items have been prepared communications relating to the by the Exchange. On November 6, 2007, proposed rule change between the the Exchange filed Amendment No. 1 to Commission and any person, other than the proposed rule change.4 This order those that may be withheld from the provides notice of the proposal, as public in accordance with the amended, and approves the proposal, as provisions of 5 U.S.C. 552, will be amended, on an accelerated basis. available for inspection and copying in I. Self-Regulatory Organization’s the Commission’s Public Reference Statement of the Terms of Substance of Room, 100 F Street, NE., Washington, the Proposed Rule Change DC 20549–1090, on official business NYSE Arca proposes to revise the days between the hours of 10 a.m. and options original listing guidelines so 3 p.m. Copies of such filing also will be that as long as the continued listing available for inspection and copying at the principal office of the Exchange. All standards set forth in NYSE Arca Rule 5.4 are met and the option is listed and comments received will be posted traded on another national securities without change; the Commission does exchange, the Exchange would be able not edit personal identifying to list and trade the option. The text of information from submissions. You the proposed rule change is available at should submit only information that you wish to make available publicly. All on NYSE Arca’s Web site (http:// www.nyse.com), at NYSE’s principal submissions should refer to File office and at the Commission’s Public Number SR–NYSE–2007–113 and Reference Room. should be submitted on or before II. Self-Regulatory Organization’s December 14, 2007. Statement of the Purpose of, and For the Commission, by the Division of Statutory Basis for, the Proposed Rule Trading and Markets, pursuant to delegated Change 14 authority. In its filing with the Commission, the Florence E. Harmon, Exchange included statements Deputy Secretary. concerning the purpose of, and basis for, [FR Doc. E7–22778 Filed 11–21–07; 8:45 am] the proposed rule change and discussed BILLING CODE 8011–01–P any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item III below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of 10 15 1 15 11 17 VerDate Aug<31>2005 16:16 Nov 21, 2007 Jkt 214001 U.S.C. 78s(b)(1). U.S.C. 78a. 3 17 CFR 240.19b–4. 4 In Amendment No. 1, the Exchange corrected typographical errors in the rule text and the purpose section where NYSE Arca Rule 5.4 was incorrectly referenced as NYSE Arca Rule 5.6. 2 15 14 17 PO 00000 CFR 200.30–3(a)(12). Frm 00101 Fmt 4703 Sfmt 4703 E:\FR\FM\23NON1.SGM 23NON1

Agencies

[Federal Register Volume 72, Number 225 (Friday, November 23, 2007)]
[Notices]
[Pages 65797-65798]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-22778]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-56790; File No. SR-NYSEArca-2007-113]


 Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing 
and Immediate Effectiveness of a Proposed Rule Change Relating to the 
Mid-Point Passive Liquidity Order

November 15, 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 November 5, 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'') the proposed rule change as 
described in Items I and II below, which Items have been substantially 
prepared by the Exchange. The Exchange filed the proposed rule change 
as a ``non-controversial'' proposed rule change pursuant to Section 
19(b)(3)(A) \3\ of the Act and Rule 19b-4(f)(6) thereunder,\4\ 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)(6).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend NYSE Arca Rule 7.31(h)(5) in order 
to reduce the Mid-Point Passive Liquidity Order's (``MPL Order'') 
minimum order entry size and minimum executable size from 1000 to 100.

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

    In its filing with the Commission, the Exchange included statements 
concerning the purpose of, and basis for the proposed rule change, and 
discussed any comments it received on the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item IV below. The Exchange has 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
    As part of its continuing efforts to provide additional flexibility 
and increased functionality to its system and its Users,\5\ the 
Exchange proposes to amend Rule 7.31(h)(5) in order to reduce the MPL 
Order's minimum order entry size and minimum executable size from 1000 
to 100. The MPL Order \6\ is a version of the NYSE Arca Passive 
Liquidity Order,\7\ except that it is executable only at the midpoint 
of the Protected Best Bid and Offer (``PBBO'').
---------------------------------------------------------------------------

    \5\ See NYSE Arca Rule 1.1(yy) for the definition of ``User.''
    \6\ See Securities Exchange Act Release No. 56072 (July 13, 
2007), 72 FR 39867 (July 20, 2007) (SR-NYSEArca-2007-61).
    \7\ See NYSE Arca Rule 7.31(h)(4).
---------------------------------------------------------------------------

    Presently, the MPL Order's minimum order entry and execution size 
is 1000. The Exchange represents that this MPL Order type was initially 
designed to accommodate larger customer transactions. However, since 
its inception, it has become clear that Users with a typical order flow 
less than this threshold are frequently unable to use it. This proposed 
reduction of the order entry and execution size from 1000 to 100 will 
allow all Users the same flexibility in using this order type.
    The Exchange is not proposing any other changes or amendments to 
the MPL order. The Exchange intends to offer this functionality in 
concert with other planned technological upgrades presently scheduled 
to be implemented on November 19, 2007, or such later date as 
communicated to its Users through a customer notice.
    The Exchange believes that reducing the minimum order entry size 
and the minimum execution size will further enhance order entry and 
execution opportunities on the Exchange. Retail customers, whose orders 
are typically smaller than 1000, will particularly benefit from this 
reduction and thus the proposed rule change will allow those Users the 
same opportunities as larger institutional customers.
2. Statutory Basis
    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, in that 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 mechanisms of a free and open 
market and a national market system.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78f(b).
    \9\ 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 does not: (i) Significantly affect 
the protection of investors or the public interest; (ii) impose any 
significant burden on competition; and (iii) become operative for 30 
days after the date of 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

[[Page 65798]]

Section 19(b)(3)(A) of the Act \10\ and subparagraph (f)(6) of Rule 
19b-4(f)(6) thereunder.\11\
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    \10\ 15 U.S.C. 78s(b)(3)(A).
    \11\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

    A proposed rule change filed under 19b-4(f)(6) normally may not 
become operative prior to 30 days after the date of filing.\12\ 
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 Exchange has satisfied the five-
day pre-filing requirement. In addition, the Exchange has requested 
that the Commission waive the 30-day pre-operative delay and designate 
the proposed rule change to become 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 reducing the MPL Order's minimum size from 1000 to 100 will 
provide greater potential for all Users to be able to use this MPL 
Order type without delay. Further, the Commission believes that this 
change to an existing order type does not impose any burden on 
competition or significantly affect the protection of investors. 
Therefore, the Commission designates the proposal to become operative 
upon filing.\13\
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    \12\ 17 CFR 240.19b-4(f)(6)(iii).
    \13\ For purposes only of waiving the 30-day operative delay of 
this proposal, 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 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 the 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-NYSEArca-2007-113 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-2007-113. 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 20549-1090, on official business days between the 
hours of 10 a.m. and 3 p.m. Copies of such filing also will be 
available for inspection and copying at the principal office of the 
Exchange. All comments received will be posted without change; the 
Commission does not edit personal identifying information from 
submissions. You should submit only information that you wish to make 
available publicly. All submissions should refer to File Number SR-
NYSE-2007-113 and should be submitted on or before December 14, 2007.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\14\
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    \14\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E7-22778 Filed 11-21-07; 8:45 am]
BILLING CODE 8011-01-P