Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Adding a New Order Type Known as PNP Blind, 66013-66015 [E7-22898]
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Federal Register / Vol. 72, No. 226 / Monday, November 26, 2007 / Notices
mstockstill on PROD1PC66 with NOTICES
authorization is required by their
constitutive documents or the laws of
their jurisdictions of incorporation. As
such, they would need to obtain the
resolution solely to comply with section
806.02.
As obtaining these resolutions would
be burdensome for the issuers involved
and the transfers of the securities to
NYSE Arca are being effectuated at the
request of the Exchange, NYSE believes
it is appropriate to waive this
requirement specifically for the nine
affected securities. NYSE proposes a
waiver of this requirement applicable
only to the voluntary withdrawal from
listing of index-linked notes that are
being transferred to another national
securities exchange. In lieu of the board
resolution, the issuer will be required to
provide a letter signed by an authorized
executive officer setting forth the
reasons for the proposed withdrawal.
The Exchange believes that this
narrowly tailored exception to the
requirements of section 806.02 is
justified because of the unique
circumstance that the withdrawal from
listing is occurring at the Exchange’s
request to further an NYSE Euronext
business objective.
The Exchange also proposes to amend
section 806.02 to delete the rule text
that applied prior to April 24, 2006. On
that date, the revised text of section
806.02 became effective to comply with
the requirements of Rule 12d2–2 under
the Act.4 On July 14, 2005, the
Commission adopted amendments to
Rule 12d2–2 under the Act. Rule 12d2–
2 under the Act, as amended, required
all national securities exchanges,
including the Exchange, to amend their
delisting rules to conform with certain
requirements set forth in new Rule
12d2–2. The Exchange amended section
806.02 in light of these requirements
and its new delisting procedures
superseded the old procedures on April
24, 2006. As such, the old procedures
have no further application and, to
avoid confusion, the Exchange proposes
to delete them from section 806.02 in
their entirety.
2. Statutory Basis
The proposed rule change is
consistent with section 6(b) of the Act,5
in general, and furthers the objectives of
section 6(b)(5) of the Act,6 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
4 17
CFR 240.12d2–2.
U.S.C. 78f(b).
6 15 U.S.C. 78f(b)(5).
5 15
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22:03 Nov 23, 2007
Jkt 214001
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
Written comments were neither
solicited nor received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Within 35 days of the date of
publication of this notice in the Federal
Register or within such longer period (i)
as the Commission may designate up to
90 days of such date if it finds such
longer period to be appropriate and
publishes its reasons for so finding or
(ii) as to which the self-regulatory
organization consents, the Commission
will:
(A) By order approve such proposed
rule change, or
(B) Institute proceedings to determine
whether the proposed rule change
should be disapproved.
IV. Solicitation of Comments
66013
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, 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–NYSE–2007–99 and should
be submitted on or before December 17,
2007.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.7
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–22944 Filed 11–23–07; 8:45 am]
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:
BILLING CODE 8011–01–P
Electronic Comments
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Adding a New Order Type
Known as PNP Blind
• 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–2007–99 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–2007–99. This file
number should be included on the
subject line if e-mail is used. To help the
Commission process and review your
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SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–56810; File No. SR–
NYSEArca–2007–117]
November 19, 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
13, 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 and II
below, which Items have been
7 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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66014
Federal Register / Vol. 72, No. 226 / Monday, November 26, 2007 / Notices
substantially prepared by the Exchange.
NYSE Arca has designated the proposed
rule change as ‘‘non-controversial’’
under Section 19(b)(3)(A)(iii) 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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange, through its wholly
owned subsidiary, NYSE Arca Equities,
Inc. (‘‘NYSE Arca Equities’’), proposes
to amend NYSE Arca Equities Rule 7.31
in order to add a new order type known
as PNP Blind. The changes described in
this rule proposal would add new
Exchange Rule 7.31(mm). The text of the
proposed rule change is available on the
Exchange’s Web site at https://
www.nyse.com, at the Exchange’s Office
of the Secretary, 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,
NYSE Arca 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. NYSE
Arca has prepared summaries, set forth
in Sections A, B, and C below, of the
most significant aspects of such
statements.
mstockstill on PROD1PC66 with NOTICES
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
In order to provide additional
flexibility and increased functionality to
its system and its Users,5 the Exchange
proposes to add a new variation upon
an existing order type. The existing
order type, the PNP Order (Post No
Preference),6 is a limit order to buy or
sell that is executed in whole or in part
on the Exchange, with any unexecuted
portion displayed and ranked in the
NYSE Arca book. The proposed
corollary to this order type, PNP Blind,
is a PNP order that is priced at or
3 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
5 See NYSE Arca Equities Rule 1.1(yy) for the
definition of ‘‘User.’’
6 See NYSE Arca Equities Rule 7.31(w).
4 17
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22:03 Nov 23, 2007
Jkt 214001
through the Best Protected Bid or Best
Protected Offer (‘‘PBBO’’) 7 and is
displayed on the NYSE Arca book at the
price of the contra quote. The limit price
of the PNP Blind order shall be
undisplayed (e.g., blind).
PNP Blind
The limit price of the PNP Blind order
shall remain undisplayed while its
tradable price may be adjusted in
certain circumstances. Where the PBBO
adjusts away from the price of the PNP
Blind and the prices continue to
overlap, the limit price of the PNP Blind
will remain undisplayed but its tradable
price shall be adjusted to the contra side
of the PBBO. Similarly, in instances
where the PBBO moves into the price of
the PNP Blind, the limit price remains
undisplayed and the tradable price is
adjusted to the contra side of the PBBO.
In certain circumstances, the PNP
Blind order will convert to a displayed
PNP limit order. Where the PBBO
moves away from the price of the PNP
Blind order and the prices no longer
overlap, the PNP Blind will convert to
a displayed PNP order and once
displayed it may become the new PBBO.
Once converted, the order never reverts
to an undisplayed PNP Blind order.
This order type is similar in nature to
an existing order type, the Passive
Liquidity Order (‘‘PLO’’).8 The PLO
allows Users to post undisplayed limit
orders on the NYSE Arca book, which
do not route to away market centers.
However, the PLO is exclusive to Lead
Market Makers in issues where the
Exchange is the primary listings market
and there is a Lead Market Maker. PNP
Blind orders are available to all Users
for all securities and never route to
away market centers. Unlike the PLO
which remains undisplayed, the PNP
Blind will convert to a displayed limit
order under the circumstances
described above.
PNP Blind orders, therefore, will offer
all Users the ability to post an
undisplayed limit order priced at or
through the PBBO, with a tradable price
set at the contra side of the PBBO. The
tradable price will adjust until such
time as the PBBO either moves away
from the limit price of the PNP Blind
order and the prices no longer overlap,
or moves into the price of the PNP Blind
order, whereupon it will then convert to
7 Pursuant to NYSE Arca Equities Rule 1.1(dd),
the term ‘‘NBBO’’ refers to the National best bid or
offer and the term ‘‘PBBO’’ refers to the Best
Protected Bid and the Best Protected Offer on NYSE
Arca. PNP Blind orders will be priced in relation
to the PBBO and orders placed on NYSE Arca
cannot trade-through Protected Quotations on away
markets except as allowed under NYSE Arca
Equities Rule 7.37(g).
8 See NYSE Arca Equities Rule 7.3(h)(4).
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a displayed PNP order. The entry time
of a PNP Blind order is not refreshed or
updated with each adjustment to its
price.9
PNP Blind Examples
The following examples demonstrate
how a PNP Blind order operates.
Example 1:
If the price of the PNP Blind order is at or
through a protected quote, the order will go
blind (undisplayed) and will be placed on
the book at the price of the contra quote of
the PBBO.
PBBO: 15.00 to 15.05.
PNP Blind: Buy 1000 @ 15.10.
Result: PNP Blind goes blind (undisplayed)
and is placed on the bid side of the book
at 15.05.
Example 2:
If the PBBO moves away from the price of
the PNP Blind, but the prices continue to
overlap, the PNP Blind remains undisplayed
and adjusts its tradable price on the book to
the new price of the contra quote of the
PBBO.
PBBO: 15.00 to 15.05.
PNP Blind: Buy 1000 @ 15.10.
Result: PNP B goes blind (undisplayed) and
is placed on the bid side of the book at
15.05.
PBO: Updates from 15.05 to 15.07.
Result: PNP Blind remains blind
(undisplayed) but adjusts in price to 15.07.
Example 3:
If the PBBO moves away from the price of
the PNP Blind and the prices no longer
overlap, the PNP Blind converts to a
displayed PNP limit order.
PBBO: 15.05 to 15.07.
PNP Blind: Buy 1000 @ 15.10.
Result: PNP B goes blind (undisplayed) and
is placed on the bid side of the book at
15.07.
PBO: Updates from 15.07 to 15.15.
Result: PNP Blind converts to PNP limit
order and displays a bid of 15.10, setting
an updated PBBO of 15.10 to 15.15.
Example 4:
If the PBBO moves into the price of the
PNP Blind, the PNP Blind will adjust its
tradable price on the book to the new price
of the contra quote of the PBBO or remains
displayed if it never went blind or had
previously converted to a PNP limit order.
PBBO: 15.00 to 15.05.
PNP Blind: Buy 1000 @ 15.10.
Result: PNP Blind goes blind (undisplayed)
and is placed on the bid side of the book
at 15.05.
PBBO: Updates to 15.00 to 15.03.
Result: PNP Blind remains blind
(undisplayed) and its tradeable price
adjusts to 15.03.
PBBO: 15.00 to 15.05.
PNP Blind: Buy 1000 @ 15.03.
Result: PNP Blind is displayed at 15.03.
9 If a PNP Blind order reaches its limit price and
becomes displayed, such PNP Blind order would
become the only displayed order in the NYSE Arca
book at that price.
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Federal Register / Vol. 72, No. 226 / Monday, November 26, 2007 / Notices
Update: PBBO resets to 15.03 to 15.05.
Result: PNP Blind remains displayed at
15.03.
Display Order Process
PNP Blind orders fall within the
Exchange’s Display Order Process set forth in
NYSE Arca Equities Rule 7.36. Accordingly,
as described above, PNP Blind orders follow
a strict price/time priority.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act,10 in general, and
furthers the objectives of Section 6(b)(5)
of the Act,11 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 for 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.
mstockstill on PROD1PC66 with NOTICES
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.
IV. Solicitation of Comments
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
Section 19(b)(3)(A) of the Act 12 and
subparagraph (f)(6) of Rule 19b–4
thereunder.13 As required under Rule
19b–4(f)(6)(iii),14 NYSE Arca provided
the Commission with written notice of
its intent to file the proposed rule
change, along with a brief description
U.S.C. 78f(b).
11 15 U.S.C. 78f(b)(5).
12 15 U.S.C. 78s(b)(3)(A).
13 17 CFR 240.19b–4(f)(6).
14 17 CFR 240.19b–4(f)(6)(iii).
22:03 Nov 23, 2007
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
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.19
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–22898 Filed 11–23–07; 8:45 am]
BILLING CODE 8011–01–P
Paper Comments
Self-Regulatory Organizations; The
Options Clearing Corporation; Notice
of Filing and Immediate Effectiveness
of a Proposed Rule Change Relating to
the Fees Charged to Clearing Members
and Non-Clearing Members for
Theoretical Profit and Loss Values
• 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. 34–56800; File No. SR–OCC–
2007–10]
15 Id.
November 16, 2007.
16 Id.
Pursuant to section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 notice is hereby given that on
18 For purposes only of waiving the 30-day
operative delay, the Commission has considered the
impact of the proposed rule on efficiency,
competition, and capital formation. See 15 U.S.C.
78c(f)
Jkt 214001
All submissions should refer to File
Number SR–NYSEArca–2007–117. 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, 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 NYSE Arca. 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–2007–117 and
should be submitted on or before
December 17, 2007.
• 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–2007–117 on
the subject line.
17 Id.
10 15
VerDate Aug<31>2005
and text of the proposed rule change, at
least five business days prior to the date
of the filing of the proposed rule change.
A proposed rule change filed under
Rule 19b–4(f)(6) normally may not
become operative prior to 30 days after
the date of filing.15 However, Rule 19b–
4(f)(6)(iii)16 permits the Commission to
designate a shorter time if such action
is consistent with the protection of
investors and the public interest. NYSE
Arca requests that the Commission
waive the 30-day operative delay period
for ‘‘non-controversial’’ proposals under
Rule 19b–4(f)(6) 17 and make the
proposed rule change effective and
operative upon filing. The Commission
believes that waiving the 30-day
operative delay is consistent with the
protection of investors and the public
interest because it would permit the
Exchange to offer the PNP Blind order
type without delay. Accordingly, the
Commission designates the proposed
rule change operative upon filing with
the Commission.18
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.
66015
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19 17
1 15
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
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]]>Agencies
[Federal Register Volume 72, Number 226 (Monday, November 26, 2007)]
[Notices]
[Pages 66013-66015]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-22898]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-56810; File No. SR-NYSEArca-2007-117]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change Adding a New Order
Type Known as PNP Blind
November 19, 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 13, 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 and II below, which Items
have been
[[Page 66014]]
substantially prepared by the Exchange. NYSE Arca has designated the
proposed rule change as ``non-controversial'' under Section
19(b)(3)(A)(iii) \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)(iii).
\4\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange, through its wholly owned subsidiary, NYSE Arca
Equities, Inc. (``NYSE Arca Equities''), proposes to amend NYSE Arca
Equities Rule 7.31 in order to add a new order type known as PNP Blind.
The changes described in this rule proposal would add new Exchange Rule
7.31(mm). The text of the proposed rule change is available on the
Exchange's Web site at https://www.nyse.com, at the Exchange's Office of
the Secretary, 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, NYSE Arca 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. NYSE Arca 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
In order to provide additional flexibility and increased
functionality to its system and its Users,\5\ the Exchange proposes to
add a new variation upon an existing order type. The existing order
type, the PNP Order (Post No Preference),\6\ is a limit order to buy or
sell that is executed in whole or in part on the Exchange, with any
unexecuted portion displayed and ranked in the NYSE Arca book. The
proposed corollary to this order type, PNP Blind, is a PNP order that
is priced at or through the Best Protected Bid or Best Protected Offer
(``PBBO'') \7\ and is displayed on the NYSE Arca book at the price of
the contra quote. The limit price of the PNP Blind order shall be
undisplayed (e.g., blind).
---------------------------------------------------------------------------
\5\ See NYSE Arca Equities Rule 1.1(yy) for the definition of
``User.''
\6\ See NYSE Arca Equities Rule 7.31(w).
\7\ Pursuant to NYSE Arca Equities Rule 1.1(dd), the term
``NBBO'' refers to the National best bid or offer and the term
``PBBO'' refers to the Best Protected Bid and the Best Protected
Offer on NYSE Arca. PNP Blind orders will be priced in relation to
the PBBO and orders placed on NYSE Arca cannot trade-through
Protected Quotations on away markets except as allowed under NYSE
Arca Equities Rule 7.37(g).
---------------------------------------------------------------------------
PNP Blind
The limit price of the PNP Blind order shall remain undisplayed
while its tradable price may be adjusted in certain circumstances.
Where the PBBO adjusts away from the price of the PNP Blind and the
prices continue to overlap, the limit price of the PNP Blind will
remain undisplayed but its tradable price shall be adjusted to the
contra side of the PBBO. Similarly, in instances where the PBBO moves
into the price of the PNP Blind, the limit price remains undisplayed
and the tradable price is adjusted to the contra side of the PBBO.
In certain circumstances, the PNP Blind order will convert to a
displayed PNP limit order. Where the PBBO moves away from the price of
the PNP Blind order and the prices no longer overlap, the PNP Blind
will convert to a displayed PNP order and once displayed it may become
the new PBBO. Once converted, the order never reverts to an undisplayed
PNP Blind order.
This order type is similar in nature to an existing order type, the
Passive Liquidity Order (``PLO'').\8\ The PLO allows Users to post
undisplayed limit orders on the NYSE Arca book, which do not route to
away market centers. However, the PLO is exclusive to Lead Market
Makers in issues where the Exchange is the primary listings market and
there is a Lead Market Maker. PNP Blind orders are available to all
Users for all securities and never route to away market centers. Unlike
the PLO which remains undisplayed, the PNP Blind will convert to a
displayed limit order under the circumstances described above.
---------------------------------------------------------------------------
\8\ See NYSE Arca Equities Rule 7.3(h)(4).
---------------------------------------------------------------------------
PNP Blind orders, therefore, will offer all Users the ability to
post an undisplayed limit order priced at or through the PBBO, with a
tradable price set at the contra side of the PBBO. The tradable price
will adjust until such time as the PBBO either moves away from the
limit price of the PNP Blind order and the prices no longer overlap, or
moves into the price of the PNP Blind order, whereupon it will then
convert to a displayed PNP order. The entry time of a PNP Blind order
is not refreshed or updated with each adjustment to its price.\9\
---------------------------------------------------------------------------
\9\ If a PNP Blind order reaches its limit price and becomes
displayed, such PNP Blind order would become the only displayed
order in the NYSE Arca book at that price.
---------------------------------------------------------------------------
PNP Blind Examples
The following examples demonstrate how a PNP Blind order operates.
Example 1:
If the price of the PNP Blind order is at or through a protected
quote, the order will go blind (undisplayed) and will be placed on
the book at the price of the contra quote of the PBBO.
PBBO: 15.00 to 15.05.
PNP Blind: Buy 1000 @ 15.10.
Result: PNP Blind goes blind (undisplayed) and is placed on the bid
side of the book at 15.05.
Example 2:
If the PBBO moves away from the price of the PNP Blind, but the
prices continue to overlap, the PNP Blind remains undisplayed and
adjusts its tradable price on the book to the new price of the
contra quote of the PBBO.
PBBO: 15.00 to 15.05.
PNP Blind: Buy 1000 @ 15.10.
Result: PNP B goes blind (undisplayed) and is placed on the bid side
of the book at 15.05.
PBO: Updates from 15.05 to 15.07.
Result: PNP Blind remains blind (undisplayed) but adjusts in price
to 15.07.
Example 3:
If the PBBO moves away from the price of the PNP Blind and the
prices no longer overlap, the PNP Blind converts to a displayed PNP
limit order.
PBBO: 15.05 to 15.07.
PNP Blind: Buy 1000 @ 15.10.
Result: PNP B goes blind (undisplayed) and is placed on the bid side
of the book at 15.07.
PBO: Updates from 15.07 to 15.15.
Result: PNP Blind converts to PNP limit order and displays a bid of
15.10, setting an updated PBBO of 15.10 to 15.15.
Example 4:
If the PBBO moves into the price of the PNP Blind, the PNP Blind
will adjust its tradable price on the book to the new price of the
contra quote of the PBBO or remains displayed if it never went blind
or had previously converted to a PNP limit order.
PBBO: 15.00 to 15.05.
PNP Blind: Buy 1000 @ 15.10.
Result: PNP Blind goes blind (undisplayed) and is placed on the bid
side of the book at 15.05.
PBBO: Updates to 15.00 to 15.03.
Result: PNP Blind remains blind (undisplayed) and its tradeable
price adjusts to 15.03.
PBBO: 15.00 to 15.05.
PNP Blind: Buy 1000 @ 15.03.
Result: PNP Blind is displayed at 15.03.
[[Page 66015]]
Update: PBBO resets to 15.03 to 15.05.
Result: PNP Blind remains displayed at 15.03.
Display Order Process
PNP Blind orders fall within the Exchange's Display Order
Process set forth in NYSE Arca Equities Rule 7.36. Accordingly, as
described above, PNP Blind orders follow a strict price/time
priority.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\10\ in general, and furthers the
objectives of Section 6(b)(5) of the Act,\11\ 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 for a free and open market and a national market system.
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\10\ 15 U.S.C. 78f(b).
\11\ 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 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 Section 19(b)(3)(A) of the Act \12\ and subparagraph (f)(6) of Rule
19b-4 thereunder.\13\ As required under Rule 19b-4(f)(6)(iii),\14\ NYSE
Arca provided the Commission with written notice of its intent to file
the proposed rule change, along with a brief description and text of
the proposed rule change, at least five business days prior to the date
of the filing of the proposed rule change.
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\12\ 15 U.S.C. 78s(b)(3)(A).
\13\ 17 CFR 240.19b-4(f)(6).
\14\ 17 CFR 240.19b-4(f)(6)(iii).
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A proposed rule change filed under Rule 19b-4(f)(6) normally may
not become operative prior to 30 days after the date of filing.\15\
However, Rule 19b-4(f)(6)(iii)\16\ permits the Commission to designate
a shorter time if such action is consistent with the protection of
investors and the public interest. NYSE Arca requests that the
Commission waive the 30-day operative delay period for ``non-
controversial'' proposals under Rule 19b-4(f)(6) \17\ and make the
proposed rule change effective and operative upon filing. The
Commission believes that waiving the 30-day operative delay is
consistent with the protection of investors and the public interest
because it would permit the Exchange to offer the PNP Blind order type
without delay. Accordingly, the Commission designates the proposed rule
change operative upon filing with the Commission.\18\
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\15\ Id.
\16\ Id.
\17\ Id.
\18\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the impact of the proposed rule on
efficiency, competition, and capital formation. See 15 U.S.C. 78c(f)
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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 (https://
www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-NYSEArca-2007-117 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-2007-117. 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, 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 NYSE Arca. 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-2007-117 and should
be submitted on or before December 17, 2007.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\19\
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\19\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-22898 Filed 11-23-07; 8:45 am]
BILLING CODE 8011-01-P
