Self-Regulatory Organizations; NYSEArca, Inc.; Notice of Filing and Order Granting Accelerated Approval of a Proposed Rule Change, as Modified by Amendment No. 1, To List and Trade Options Already Listed on Another National Securities Exchange, 65798-65800 [E7-22781]

Download as PDF 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 Federal Register / Vol. 72, No. 225 / Friday, November 23, 2007 / Notices 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 mstockstill on PROD1PC66 with NOTICES The purpose of this proposed rule change is to revise the options original listing guidelines so that as long as the options maintenance listing standards set forth in NYSE Arca Rule 5.4 are met and the option is listed and traded on another national securities exchange, NYSE Arca would be able to list and trade the option. NYSE Arca Rule 5.3(a)–(c) sets forth the guidelines that an underlying individual equity security must meet before the Exchange may initially list options on that security. These guidelines or requirements are uniform among the options exchanges. NYSE Arca Rule 5.3(a)(4) relates to the minimum market price at which an underlying security must trade for an option to be listed on it. NYSE Arca Rule 5.3(a)(4) permits the listing of individual equity options on both ‘‘covered’’ and ‘‘uncovered’’ underlying securities.5 In the case of an underlying security that is a ‘‘covered security’’ as defined under section 18(b)(1)(A) of the Securities Act of 1933 (‘‘1933 Act’’), the closing market price of the underlying security must be at least $3 per share for the five (5) previous consecutive business days prior to the date on which the Exchange submits an option class certification to The Options Clearing Corporation (‘‘OCC’’). In connection with underlying securities deemed to be ‘‘uncovered,’’ Exchange rules require that such underlying security be at least $7.50 for the majority of business days during the three (3) calendar months preceding the date of selection for such listing. In addition, an alternative listing procedure for ‘‘uncovered’’ securities also permits the listing of such options so long as: (1) The underlying security meets the guidelines for continued listing contained in NYSE Arca Rule 5.4; 6 (2) options on such underlying security are traded on at least one other registered national securities exchange; and (3) the average daily trading volume 5 Section 18(b)(1)(A) of the 1933 Act provides that, ‘‘[a] security is a covered security if such security is-listed, or authorized for listing, on the New York Stock Exchange or the American Stock Exchange, or listed, or authorized for listing, on the National Market System of the Nasdaq Stock Market (or any successor to such entities) * * * ’’ See 15 U.S.C. 77r(b)(1)(A). 6 The rule text of NYSE Arca Rule 5.3 refers to NYSE Arca Rule 5.6 instead of NYSE Arca Rule 5.4, which contains NYSE Arca’s continued listing standards. VerDate Aug<31>2005 16:16 Nov 21, 2007 Jkt 214001 (‘‘ADTV’’) for such options over the last three calendar months preceding the date of selection has been at least 5,000 contracts. Paragraphs (1) through (3) of NYSE Arca Rule 5.3(a) further set forth minimum requirements for an underlying security such as shares outstanding, number of holders and trading volume. The Exchange submits that the alternative listing procedure has limited usefulness. The options exchange (or exchanges) that may be fortunate enough to list an option that at first met the original listing standards but subsequently fails to do so, is provided a trading monopoly inconsistent with the multiple trading of options, fostering competition and the maintenance of a national market system. Under this proposal, an option may be multiplylisted and traded as long as one other options exchange is trading the particular option and such underlying security of the option meets existing continued listing guidelines or requirements. The Exchange notes that the requirements for listing additional series of an existing listed option (i.e., continued listing guidelines) are less stringent, largely because, in total, the Exchange’s guidelines assure that options will be listed and traded on securities of companies that are financially sound and subject to adequate minimum standards. NYSE Arca believes that although the continued listing requirements are uniform among the options exchanges, the application of both the original and continued listing standards in the current market environment has had an anti-competitive effect. Specifically, the Exchange notes that on several occasions it has been unable to list and trade options classes that trade elsewhere because the underlying security of such option did not at that time meet original listing standards. However, the other options exchange(s) may continue to trade such options (and list additional series) based on the lower maintenance listing standards, while NYSE Arca may not list any options on such underlying security. The Exchange believes that this is anti-competitive and inconsistent with the aims and goals of a national market system in options. To address this situation, the Exchange proposes to add new paragraph (6) to NYSE Arca Rule 5.3(a) and amend the alternative original listing requirement set forth in paragraph (4)(b) of NYSE Arca Rule 5.3(a). Specifically, paragraph (6) would be added to provide that notwithstanding that a particular underlying security may not meet the PO 00000 Frm 00102 Fmt 4703 Sfmt 4703 65799 requirements set forth in Paragraphs 1 through 4 of NYSE Arca Rule 5.3(a), the Exchange nonetheless could list and trade an option on such underlying security if (i) the underlying security meets the guidelines for continued listing in NYSE Arca Rule 5.4 and (ii) options on such underlying security are listed and traded on at least one other registered national securities exchange. Paragraph (4)(b) of NYSE Arca Rule 5.3(a) would be amended to delete the reference to the alternative original listing guideline for ‘‘uncovered’’ securities. In connection with the proposed changes, the Exchange represents that the procedures currently employed to determine whether a particular underlying security meets the initial listing criteria will similarly be applied to the continued listing criteria. The Exchange believes that this proposal is narrowly tailored to address the circumstances where an options class is currently ineligible for listing on NYSE Arca while at the same time, such option is trading on another options exchange(s). The Exchange notes that when an underlying security meets the maintenance listing guidelines and at least one other exchange lists and trades options on the underlying security, the option is available to the investing public. Therefore, the Exchange does not believe that the current proposal will introduce any inappropriate additional listed options classes. The Exchange submits that the adoption of the proposal is essential for competitive purposes and to promote a free and open market for the benefit of investors. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with section 6(b) of the Act,7 in general, and furthers the objectives of section 6(b)(5) 8 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 mechanism 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. 7 15 8 15 U.S.C. 78f(b). U.S.C. 78f(b)(5). E:\FR\FM\23NON1.SGM 23NON1 65800 Federal Register / Vol. 72, No. 225 / Friday, November 23, 2007 / Notices C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others Number SR–NYSEArca–2007–106 and should be submitted on or before December 14, 2007. IV. Commission’s Findings and Order Granting Accelerated Approval of the Proposed Rule Change After careful consideration, the Commission finds that the proposed III. Solicitation of Comments rule change is consistent with the Interested persons are invited to requirements of the Act and the submit written data, views, and regulations thereunder applicable to a arguments concerning the foregoing, national securities exchange.9 In including whether the proposed rule particular, the Commission finds that change is consistent with the Act. the proposed rule change is consistent Comments may be submitted by any of with section 6(b)(5) of the Act,10 which the following methods: requires that the rules of an exchange be designed to prevent fraudulent and Electronic Comments manipulative acts and practices, to • Use the Commission’s Internet promote just and equitable principles of comment form (http://www.sec.gov/ trade, to remove impediments to and rules/sro.shtml); or perfect the mechanism of a free and • Send an e-mail to ruleopen market and a national market comments@sec.gov. Please include File system, and, in general, to protect Number SR–NYSEArca–2007–106 on investors and the public interest. The the subject line. proposal is narrowly tailored to address Paper Comments the circumstances where an equity option class is currently ineligible for • Send paper comments in triplicate initial listing on the Exchange even to Nancy M. Morris, Secretary, though it meets the Exchange’s Securities and Exchange Commission, continued listing standards and is 100 F Street, NE., Washington, DC trading on another options exchange. 20549–1090. Allowing NYSE Arca to list and trade All submissions should refer to File options on such underlying securities Number SR–NYSEArca–2007–106. This should help promote competition file number should be included on the among the exchanges that list and trade subject line if e-mail is used. To help the options. The Commission notes, and the Commission process and review your Exchange represents, that the comments more efficiently, please use procedures that the Exchange currently only one method. The Commission will employs to determine whether a post all comments on the Commission’s particular underlying security meets the Internet Web site (http://www.sec.gov/ initial equity option listing criteria for rules/sro.shtml). Copies of the the Exchange will similarly be applied submission, all subsequent when determining whether an amendments, all written statements underlying security meets the with respect to the proposed rule Exchange’s continued listing criteria. change that are filed with the The Commission finds good cause, Commission, and all written pursuant to section 19(b)(2)(B) of the communications relating to the Act,11 for approving the proposed rule proposed rule change between the change prior to the 30th day after the Commission and any person, other than publication of the notice of the filing those that may be withheld from the thereof in the Federal Register. The public in accordance with the Commission notes that the proposed provisions of 5 U.S.C. 552, will be rule change is substantially identical to available for inspection and copying in the proposed rule change submitted by the Commission’s Public Reference American Stock Exchange LLC,12 which Room, 100 F Street, NE., Washington, DC 20549, on official business days 9 In approving this rule change, the Commission between the hours of 10 a.m. and 3 p.m. notes that it has considered the proposed rule’s impact on efficiency, competition, and capital Copies of such filing also will be formation. See 15 U.S.C. 78c(f). available for inspection and copying at 10 15 U.S.C. 78f(b)(5). the principal office of the Exchange. All 11 15 U.S.C. 78s(b)(2)(B). comments received will be posted 12 See Securities Exchange Act Release No. 56598 without change; the Commission does (October 2, 2007), 72 FR 57615 (October 10, 2007) (SR–Amex–2007–48). See also Securities Exchange not edit personal identifying Act Release Nos. 56647 (October 11, 2007), 72 FR information from submissions. You 58702 (October 16, 2007) (SR–ISE–2007–80) should submit only information that (substantially identical proposed rule change you wish to make available publicly. All approved on an accelerated basis); 56717 (October 29, 2007), 72 FR 62508 (November 5, 2007) (SR– submissions should refer to File mstockstill on PROD1PC66 with NOTICES The Exchange has neither solicited nor received written comments on the proposed rule change. VerDate Aug<31>2005 16:16 Nov 21, 2007 Jkt 214001 PO 00000 Frm 00103 Fmt 4703 Sfmt 4703 was previously approved by the Commission after an opportunity for notice and comment, and therefore does not raise any new regulatory issues. V. Conclusion It is therefore ordered, pursuant to section 19(b)(2) of the Act,13 that the proposed rule change (SR–NYSEArca– 2007–106), as amended, be, and it hereby is, approved on an accelerated basis. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.14 Florence E. Harmon, Deputy Secretary. [FR Doc. E7–22781 Filed 11–21–07; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–56799; File No. SR–Phlx– 2007–60] Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; Order Approving a Proposed Rule Change Relating to Structured Equity Products November 15, 2007. On August 14, 2007, the Philadelphia Stock Exchange, Inc. (‘‘Phlx’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 a proposed rule change to update its rules and its fee schedule regarding the listing of equity securities. The proposed rule change was published for comment in the Federal Register on October 16, 2007.3 The Commission received no comments on the proposal. According to the Exchange, currently, the vast majority of equity securities that trade on Phlx are listed on other exchanges and traded on the Phlx pursuant to unlisted trading privileges. Phlx has a series of rules (the ‘‘800 Series’’) that create standards governing both the issuer of the security and the security to be listed and traded on Phlx. To attract the listing of structured equity Phlx–2007–73) (substantially identical proposed rule change approved on an accelerated basis); and 56774 (November 8, 2007) (SR–CBOE–2007–114) (substantially identical proposed rule change approved on an accelerated basis). 13 Id. 14 17 CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 See Securities Exchange Act Release No. 56626 (October 5, 2007), 72 FR 58711 (‘‘Notice’’). E:\FR\FM\23NON1.SGM 23NON1

Agencies

[Federal Register Volume 72, Number 225 (Friday, November 23, 2007)]
[Notices]
[Pages 65798-65800]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-22781]


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

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 of a Proposed Rule Change, as 
Modified by Amendment No. 1, To List and Trade Options Already Listed 
on Another National Securities Exchange

November 15, 2007.
    Pursuant to section 19(b)(1) \1\ of the Securities Exchange Act of 
1934 (``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given 
that on October 9, 2007, NYSE Arca, Inc. (``NYSE Arca'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``Commission'') the proposed rule change as described in Items I, II 
and III below, which Items have been prepared by the Exchange. On 
November 6, 2007, the Exchange filed Amendment No. 1 to the proposed 
rule change.\4\ This order provides notice of the proposal, as amended, 
and approves the proposal, as amended, on an accelerated basis.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 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.
---------------------------------------------------------------------------

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

    NYSE Arca proposes to revise the options original listing 
guidelines so that as long as the continued listing standards set forth 
in NYSE Arca Rule 5.4 are met and the option is listed and traded on 
another national securities exchange, the Exchange would be able to 
list and trade the option. The text of the proposed rule change is 
available at on NYSE Arca's Web site (http://www.nyse.com), at NYSE's 
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 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 III below. The Exchange has prepared summaries, set forth in 
sections A, B, and C below, of

[[Page 65799]]

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 purpose of this proposed rule change is to revise the options 
original listing guidelines so that as long as the options maintenance 
listing standards set forth in NYSE Arca Rule 5.4 are met and the 
option is listed and traded on another national securities exchange, 
NYSE Arca would be able to list and trade the option. NYSE Arca Rule 
5.3(a)-(c) sets forth the guidelines that an underlying individual 
equity security must meet before the Exchange may initially list 
options on that security. These guidelines or requirements are uniform 
among the options exchanges.
    NYSE Arca Rule 5.3(a)(4) relates to the minimum market price at 
which an underlying security must trade for an option to be listed on 
it. NYSE Arca Rule 5.3(a)(4) permits the listing of individual equity 
options on both ``covered'' and ``uncovered'' underlying securities.\5\ 
In the case of an underlying security that is a ``covered security'' as 
defined under section 18(b)(1)(A) of the Securities Act of 1933 (``1933 
Act''), the closing market price of the underlying security must be at 
least $3 per share for the five (5) previous consecutive business days 
prior to the date on which the Exchange submits an option class 
certification to The Options Clearing Corporation (``OCC''). In 
connection with underlying securities deemed to be ``uncovered,'' 
Exchange rules require that such underlying security be at least $7.50 
for the majority of business days during the three (3) calendar months 
preceding the date of selection for such listing. In addition, an 
alternative listing procedure for ``uncovered'' securities also permits 
the listing of such options so long as: (1) The underlying security 
meets the guidelines for continued listing contained in NYSE Arca Rule 
5.4; \6\ (2) options on such underlying security are traded on at least 
one other registered national securities exchange; and (3) the average 
daily trading volume (``ADTV'') for such options over the last three 
calendar months preceding the date of selection has been at least 5,000 
contracts. Paragraphs (1) through (3) of NYSE Arca Rule 5.3(a) further 
set forth minimum requirements for an underlying security such as 
shares outstanding, number of holders and trading volume.
---------------------------------------------------------------------------

    \5\ Section 18(b)(1)(A) of the 1933 Act provides that, ``[a] 
security is a covered security if such security is-listed, or 
authorized for listing, on the New York Stock Exchange or the 
American Stock Exchange, or listed, or authorized for listing, on 
the National Market System of the Nasdaq Stock Market (or any 
successor to such entities) * * * '' See 15 U.S.C. 77r(b)(1)(A).
    \6\ The rule text of NYSE Arca Rule 5.3 refers to NYSE Arca Rule 
5.6 instead of NYSE Arca Rule 5.4, which contains NYSE Arca's 
continued listing standards.
---------------------------------------------------------------------------

    The Exchange submits that the alternative listing procedure has 
limited usefulness. The options exchange (or exchanges) that may be 
fortunate enough to list an option that at first met the original 
listing standards but subsequently fails to do so, is provided a 
trading monopoly inconsistent with the multiple trading of options, 
fostering competition and the maintenance of a national market system. 
Under this proposal, an option may be multiply-listed and traded as 
long as one other options exchange is trading the particular option and 
such underlying security of the option meets existing continued listing 
guidelines or requirements.
    The Exchange notes that the requirements for listing additional 
series of an existing listed option (i.e., continued listing 
guidelines) are less stringent, largely because, in total, the 
Exchange's guidelines assure that options will be listed and traded on 
securities of companies that are financially sound and subject to 
adequate minimum standards.
    NYSE Arca believes that although the continued listing requirements 
are uniform among the options exchanges, the application of both the 
original and continued listing standards in the current market 
environment has had an anti-competitive effect.
    Specifically, the Exchange notes that on several occasions it has 
been unable to list and trade options classes that trade elsewhere 
because the underlying security of such option did not at that time 
meet original listing standards. However, the other options exchange(s) 
may continue to trade such options (and list additional series) based 
on the lower maintenance listing standards, while NYSE Arca may not 
list any options on such underlying security. The Exchange believes 
that this is anti-competitive and inconsistent with the aims and goals 
of a national market system in options.
    To address this situation, the Exchange proposes to add new 
paragraph (6) to NYSE Arca Rule 5.3(a) and amend the alternative 
original listing requirement set forth in paragraph (4)(b) of NYSE Arca 
Rule 5.3(a). Specifically, paragraph (6) would be added to provide that 
notwithstanding that a particular underlying security may not meet the 
requirements set forth in Paragraphs 1 through 4 of NYSE Arca Rule 
5.3(a), the Exchange nonetheless could list and trade an option on such 
underlying security if (i) the underlying security meets the guidelines 
for continued listing in NYSE Arca Rule 5.4 and (ii) options on such 
underlying security are listed and traded on at least one other 
registered national securities exchange. Paragraph (4)(b) of NYSE Arca 
Rule 5.3(a) would be amended to delete the reference to the alternative 
original listing guideline for ``uncovered'' securities. In connection 
with the proposed changes, the Exchange represents that the procedures 
currently employed to determine whether a particular underlying 
security meets the initial listing criteria will similarly be applied 
to the continued listing criteria.
    The Exchange believes that this proposal is narrowly tailored to 
address the circumstances where an options class is currently 
ineligible for listing on NYSE Arca while at the same time, such option 
is trading on another options exchange(s). The Exchange notes that when 
an underlying security meets the maintenance listing guidelines and at 
least one other exchange lists and trades options on the underlying 
security, the option is available to the investing public. Therefore, 
the Exchange does not believe that the current proposal will introduce 
any inappropriate additional listed options classes. The Exchange 
submits that the adoption of the proposal is essential for competitive 
purposes and to promote a free and open market for the benefit of 
investors.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with section 6(b) of the Act,\7\ in general, and furthers the 
objectives of section 6(b)(5) \8\ 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 mechanism of a 
free and open market and a national market system.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78f(b).
    \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.

[[Page 65800]]

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. 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-2007-106 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-2007-106. 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 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-2007-106 and should 
be submitted on or before December 14, 2007.

IV. Commission's Findings and Order Granting Accelerated Approval of 
the Proposed Rule Change

    After careful consideration, the Commission finds that the proposed 
rule change is consistent with the requirements of the Act and the 
regulations thereunder applicable to a national securities exchange.\9\ 
In particular, the Commission finds that the proposed rule change is 
consistent with section 6(b)(5) of the Act,\10\ which requires that the 
rules of an exchange be designed to prevent fraudulent and manipulative 
acts and practices, 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 proposal is narrowly tailored to 
address the circumstances where an equity option class is currently 
ineligible for initial listing on the Exchange even though it meets the 
Exchange's continued listing standards and is trading on another 
options exchange. Allowing NYSE Arca to list and trade options on such 
underlying securities should help promote competition among the 
exchanges that list and trade options. The Commission notes, and the 
Exchange represents, that the procedures that the Exchange currently 
employs to determine whether a particular underlying security meets the 
initial equity option listing criteria for the Exchange will similarly 
be applied when determining whether an underlying security meets the 
Exchange's continued listing criteria.
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    \9\ In approving this rule change, the Commission notes that it 
has considered the proposed rule's impact on efficiency, 
competition, and capital formation. See 15 U.S.C. 78c(f).
    \10\ 15 U.S.C. 78f(b)(5).
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    The Commission finds good cause, pursuant to section 19(b)(2)(B) of 
the Act,\11\ for approving the proposed rule change prior to the 30th 
day after the publication of the notice of the filing thereof in the 
Federal Register. The Commission notes that the proposed rule change is 
substantially identical to the proposed rule change submitted by 
American Stock Exchange LLC,\12\ which was previously approved by the 
Commission after an opportunity for notice and comment, and therefore 
does not raise any new regulatory issues.
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    \11\ 15 U.S.C. 78s(b)(2)(B).
    \12\ See Securities Exchange Act Release No. 56598 (October 2, 
2007), 72 FR 57615 (October 10, 2007) (SR-Amex-2007-48). See also 
Securities Exchange Act Release Nos. 56647 (October 11, 2007), 72 FR 
58702 (October 16, 2007) (SR-ISE-2007-80) (substantially identical 
proposed rule change approved on an accelerated basis); 56717 
(October 29, 2007), 72 FR 62508 (November 5, 2007) (SR-Phlx-2007-73) 
(substantially identical proposed rule change approved on an 
accelerated basis); and 56774 (November 8, 2007) (SR-CBOE-2007-114) 
(substantially identical proposed rule change approved on an 
accelerated basis).
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V. Conclusion

    It is therefore ordered, pursuant to section 19(b)(2) of the 
Act,\13\ that the proposed rule change (SR-NYSEArca-2007-106), as 
amended, be, and it hereby is, approved on an accelerated basis.
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    \13\ Id.

    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. E7-22781 Filed 11-21-07; 8:45 am]
BILLING CODE 8011-01-P