Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to NYSE Rule 124 (Odd-Lot Orders), 68935-68937 [E7-23651]
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Federal Register / Vol. 72, No. 234 / Thursday, December 6, 2007 / Notices
with Section 6(b)(4) of the Act 5 in
particular, in that it is designed to
provide for the equitable allocation of
reasonable dues, fees, and other charges
among its members and other persons
using its facilities.
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
The foregoing proposed rule change
has become effective upon filing
pursuant to Section 19(b)(3)(A) of the
Act 6 and Rule 19b–4(f)(2) 7 thereunder,
because it establishes or changes a due,
fee, or other charge imposed by the
Exchange.
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 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 rulecomments@sec.gov. Please include File
Number SR–NYSE–2007–105 on the
subject line.
mstockstill on PROD1PC66 with NOTICES
Paper Comments
• Send paper comments in triplicate
to Nancy M. Morris, Secretary,
Securities and Exchange Commission,
U.S.C. 78f(b)(4).
U.S.C. 78s(b)(3)(A).
7 17 CFR 240.19b–4(f)(2).
100 F Street, NE., Washington, DC
20549–1090.
All submissions should refer to File
Number SR–NYSE–2007–105. 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. 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–2007–105 and
should be submitted on or before
December 27, 2007.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.8
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–23599 Filed 12–5–07; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–56858; File No. SR–NYSE–
2007–103]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change Relating to
NYSE Rule 124 (Odd-Lot Orders)
November 28, 2007.
Pursuant to section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
5 15
8 17
6 15
1 15
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18:57 Dec 05, 2007
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
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68935
notice is hereby given that on November
14, 2007, the New York Stock Exchange
LLC (‘‘NYSE’’ or ‘‘Exchange’’), filed
with the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I, II, and III below, which Items
have been substantially prepared by the
NYSE. The Exchange has filed the
proposal pursuant to section 19(b)(3)(A)
of the Act,3 and Rule 19b–4(f)(5)
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 proposes to amend
Exchange Rule 124 (Odd-Lot Orders) to
clarify the manner in which Exchange
systems price and execute odd-lot
orders 5 at the opening and at the reopening after a halt in trading on the
Exchange. The text of the proposed rule
change is available on the Exchange’s
Web site (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 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
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
This filing is submitted to amend
Exchange Rule 124 in order to clarify
that for the opening transaction in a
subject security, odd-lot market orders
and all odd-lot limit orders that are
eligible to receive an execution based on
3 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(5).
5 Odd-lot orders are orders for a size less than the
standard unit (roundlot) of trading, which is 100
shares for most stocks, although some stocks trade
in 10 share units.
4 17
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Federal Register / Vol. 72, No. 234 / Thursday, December 6, 2007 / Notices
mstockstill on PROD1PC66 with NOTICES
the price of the opening transaction 6
shall be executed at the price of the
opening transaction. Similarly, in the
event of a halt in trading on the
Exchange in the subject security, odd-lot
market orders and all odd-lot limit
orders eligible to receive an execution
based on the re-opening price that are
accepted by Exchange systems prior to
the halt in trading or are received during
the halt in trading shall be executed at
the price of the re-opening transaction.
On September 6, 2007, the Exchange
amended Exchange Rule 124 to modify
the way in which Exchange systems
priced and executed odd-lot orders (the
‘‘Odd-lot Filing’’).7 As it pertains to
openings and halts in trading, the Oddlot Filing was intended to provide that
odd-lot orders entered into the
Exchange systems before the opening
transaction of the subject security that
would be eligible for execution based on
the price of the opening transaction
would be executed at the price of the
opening transaction.8 With respect to
halts in trading on the Exchange, the
Odd-lot Filing was also to provide that
odd-lot orders accepted by Exchange
systems prior to, or during, a halt in
trading that are subsequently eligible to
receive an execution based on the reopening price would be executed at the
price of the re-opening transaction.9
Currently, Exchange systems handle
odd-lot orders at the opening and reopening after a halt in trading as
intended and as described above.
However, the Exchange states that the
use of the word ‘‘marketable’’ 10 in the
rule text of subsections (c)(vi) and
(c)(vii) is not accurate. Specifically as it
pertains to the open, an order is neither
marketable or non-marketable until the
specialist determines the opening price.
As such, the rule text of subsection
(c)(vi) and (c)(vii) should not include
6 Pursuant to Exchange Rule 124(b), an odd-lot
limit order is considered marketable when its limit
price is at or higher than the current National best
offer (in the case of an odd-lot limit to buy) and
when its limit price is at or lower than the current
National best bid (in the case of an odd-lot limit to
sell).
7 See Securities Exchange Act Release No. 56551
(September 27, 2007), 72 FR 56415 (October 3,
2007) (SR–NYSE–2007–82).
8 See Exchange Rule 124 subsections (c)(vi)
(relating to openings) and (c)(vii) (relating to trading
halts).
9 The Commission made minor clarifications to
this paragraph pursuant to a telephone call with the
Exchange. See telephone call among Jennifer Dodd,
Special Counsel, Division of Trading and Markets,
Commission, Rahman Harrison, Special Counsel,
Division of Trading and Markets, Commission, and
Gillian Rowe, Principal Rule Counsel, NYSE, on
November 19, 2007.
10 See Exchange Rule 124(c) which defines
‘‘marketable odd-lot orders’’ as odd-lot market
orders and odd-lot limit orders that are marketable
upon receipt.
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the word marketable. Moreover, the use
of the term marketable in (c)(vii)
technically excludes non-marketable
odd-lot limit orders accepted by
Exchange systems prior to a halt in
trading that are subsequently eligible to
receive an execution based on the reopening price from receiving an
execution.11 This would occur because
the definition of marketable in the rule
requires the odd-lot limit order to have
been marketable ‘‘upon receipt by the
system.’’
Accordingly, the Exchange proposes
in this filing to amend subsection (c)(vi)
of Exchange Rule 124 to clarify that
odd-lot orders entered into the
Exchange systems before the opening
transaction of the subject security that
would be eligible for execution based on
the price of the opening transaction
shall be executed at the price of the
opening transaction. The Exchange
further proposes to amend subsection
(c)(vii) to clarify that, in the event of a
halt in trading on the Exchange, odd-lot
orders accepted by Exchange systems
prior to, or during, a halt in trading that
are subsequently eligible to receive an
execution based on the re-opening price
shall be executed at the price of the reopening transaction.
The Exchange believes these
amendments will accurately align the
rule text with the operation of Exchange
systems in the handling of odd-lot
orders under these specific
circumstances. However, the Exchange
will continue to monitor the recent
changes to the processing of odd-lots
and confer with our constituents in
order to evaluate whether further
change is necessary.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the provisions of section 6(b) of the
Act,12 in general, and with section
6(b)(5) of the Act,13 in particular, in that
it is designed to promote just and
equitable principles of trade, to remove
impediments to and perfect the
mechanism of a free and open market
and a national market system, and, in
general, to protect investors and the
public interest. The Exchange also states
that the proposed rule change also is
designed to support the principles of
section 11A(a)(1) 14 in that it seeks to
assure economically efficient execution
of securities transactions, make it
practicable for brokers to execute
11 Exchange Rule 124(d) governs the execution
and pricing of odd-lot limit orders that are nonmarketable upon receipt that become marketable.
12 15 U.S.C. 78f(b).
13 15 U.S.C. 78f(b)(5).
14 15 U.S.C. 78k–1(a)(1).
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investors’ orders in the best market and
provide an opportunity for investors’
orders to be executed without the
participation of a dealer.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
The Exchange has neither solicited
nor received written comments on the
proposed rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule
change effects a change in an existing
order-entry or trading system of a selfregulatory organization that does not (1)
Significantly affect the protection of
investors of the public interest, (2)
impose any significant burden on
competition, and (3) have the effect of
limiting the access to or availability of
the system, it has become effective
pursuant to section 19(b)(3)(A)(iii) of the
Act 15 and Rule 19b–4(f)(5)
thereunder.16
At any time within 60 days of the
filing of such proposed rule change, the
Commission may summarily abrogate
such rule change if it appears to the
Commission that such action is
necessary or appropriate in the public
interest, for the protection of investors
or otherwise in furtherance of the
purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–NYSE–2007–103 on the
subject line.
15 15
16 17
E:\FR\FM\06DEN1.SGM
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(5).
06DEN1
Federal Register / Vol. 72, No. 234 / Thursday, December 6, 2007 / Notices
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. 34–56856; File No. SR–OCC–
2007–13]
Self-Regulatory Organizations; The
Options Clearing Corporation; Notice
of Filing and Order Granting
All submissions should refer to File
Accelerated Approval of a Proposed
Number SR–NYSE–2007–103. This file
Rule Change Relating to Delayed Start
number should be included on the
subject line if e-mail is used. To help the Options
Commission process and review your
November 28, 2007.
comments more efficiently, please use
Pursuant to Section 19(b)(1) of the
only one method. The Commission will Securities Exchange Act of 1934
post all comments on the Commission’s (‘‘Act’’),1 notice is hereby given that on
Internet Web site (https://www.sec.gov/
October 9, 2007, The Options Clearing
rules/sro.shtml). Copies of the
Corporation (‘‘OCC’’) filed with the
submission, all subsequent
Securities and Exchange Commission
amendments, all written statements
(‘‘Commission’’) the proposed rule
with respect to the proposed rule
change described in Items I, II, and III
below, which items have been prepared
change that are filed with the
primarily by OCC. The Commission is
Commission, and all written
publishing this notice and order to
communications relating to the
solicit comments from interested
proposed rule change between the
Commission and any person, other than persons and to grant approval of the
proposal.
those that may be withheld from the
public in accordance with the
I. Self-Regulatory Organization’s
provisions of 5 U.S.C. 552, will be
Statement of the Terms of Substance of
available for inspection and copying in
the Proposed Rule Change
the Commission’s Public Reference
The proposed rule change would
Room, 100 F Street NE., Washington, DC permit OCC to clear and settle delayed
20549, on official business days
start options (‘‘DSOs’’) by the Chicago
between the hours of 10 a.m. and 3 p.m. Board Options Exchange (‘‘CBOE’’).
Copies of the filing also will be available
II. Self-Regulatory Organization’s
for inspection and copying at the
Statement of the Purpose of, and
principal office of the NYSE. All
Statutory Basis for, the Proposed Rule
comments received will be posted
Change
without change; the Commission does
In its filing with the Commission,
not edit personal identifying
OCC included statements concerning
information from submissions. You
the purpose of and basis for the
should submit only information that
you wish to make available publicly. All proposed rule change and discussed any
comments it received on the proposed
submissions should refer to File
rule change. The text of these statements
Number SR–NYSE–2007–103 and
may be examined at the places specified
should be submitted on or before
in Item IV below. OCC has prepared
December 27, 2007.
summaries, set forth in sections (A), (B),
For the Commission, by the Division of
and (C) below, of the most significant
Trading and Markets, pursuant to delegated
aspects of these statements.2
authority.17
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–23651 Filed 12–5–07; 8:45 am]
mstockstill on PROD1PC66 with NOTICES
BILLING CODE 8011–01–P
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change—Purpose of Rule Change
The purpose of the proposed rule
change is to accommodate the
introduction of DSOs by the CBOE.
Initially CBOE proposes to list DSOs
only on indexes.3
1 15
17 17
U.S.C. 78s(b)(1).
2 The Commission has modified the text of the
summaries prepared by OCC.
3 File No. SR–CBOE–2007–26. The Commission
recently issued an order granting approval of SR–
CBOE–2007–26 that allows CBOE to list and trade
DSOs. Securities Exchange Act Release No. 56855
(November 28, 2007).
CFR 200.30–3(a)(12).
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18:57 Dec 05, 2007
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68937
Description of Product
As described by CBOE, a DSO is
identical to existing standardized
options with one exception: at the
commencement of trading in a series,
DSOs of that series will not have a set
exercise price. Instead, a DSO will
commence trading with a preestablished
formula that the listing exchange will
use to fix the exercise price for the DSO
on a specified date prior to the DSO’s
expiration date (‘‘exercise price setting
date’’). The CBOE is currently proposing
that an ‘‘at-the-money’’ DSO on an
index will be assigned an exercise price
equal to the closing value of the
underlying index on the exercise price
setting date, rounded to the increment
established by CBOE at the time the
DSO commences trading. CBOE has also
indicated that it may introduce in- or
out-of-the-money DSOs. Those DSOs
would, according to CBOE, have the
same terms as at-the-money DSOs
except that the exercise price would be
set at a specified percentage either in- or
out-of-the-money on the exercise price
setting date (e.g., 5% in-the-money or
5% out-of-the-money).
The listing exchange will specify the
exercise price setting date prior to the
opening of each series of DSOs.
According to CBOE, the exercise price
setting date for each series of DSOs
traded on CBOE will initially be three
months prior to the DSO’s expiration
date. In other words, each series of
DSOs will trade without an exercise
price until three months prior to
expiration. From the exercise price
setting date forward, all options terms
will be fixed, and DSOs will be fungible
with any other option on the same
underlying interest having the same
terms such as exercise price, expiration
date, etc. An exchange may determine to
issue series of DSOs with more or less
than three months between the exercise
price setting date and the expiration
date.
A DSO will not have an exercise price
until the exercise price setting date, and
it will not be exerciseable until after that
date. Thus, an ‘‘American-style’’ DSO
would be exerciseable only between the
exercise price setting date and the
expiration date. A ‘‘European-style’’
DSO, like any other European-style
option, would be exercised only on or
near the expiration date.
Proposed Changes to OCC’s By-Laws
and Rules
In order to issue and clear DSOs, OCC
needs to make several definitional
changes in its By-Laws. A definition of
DSO would be added to Article I of the
By-Laws. OCC is also proposing to
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]]>Agencies
[Federal Register Volume 72, Number 234 (Thursday, December 6, 2007)]
[Notices]
[Pages 68935-68937]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-23651]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-56858; File No. SR-NYSE-2007-103]
Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Relating to NYSE Rule 124 (Odd-Lot Orders)
November 28, 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 14, 2007, the New York Stock Exchange LLC (``NYSE'' or
``Exchange''), filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I, II,
and III below, which Items have been substantially prepared by the
NYSE. The Exchange has filed the proposal pursuant to section
19(b)(3)(A) of the Act,\3\ and Rule 19b-4(f)(5) 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)(5).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend Exchange Rule 124 (Odd-Lot Orders)
to clarify the manner in which Exchange systems price and execute odd-
lot orders \5\ at the opening and at the re-opening after a halt in
trading on the Exchange. The text of the proposed rule change is
available on the Exchange's Web site (https://www.nyse.com), at the
Exchange's Office of the Secretary, and at the Commission's Public
Reference Room.
---------------------------------------------------------------------------
\5\ Odd-lot orders are orders for a size less than the standard
unit (roundlot) of trading, which is 100 shares for most stocks,
although some stocks trade in 10 share units.
---------------------------------------------------------------------------
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 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 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
This filing is submitted to amend Exchange Rule 124 in order to
clarify that for the opening transaction in a subject security, odd-lot
market orders and all odd-lot limit orders that are eligible to receive
an execution based on
[[Page 68936]]
the price of the opening transaction \6\ shall be executed at the price
of the opening transaction. Similarly, in the event of a halt in
trading on the Exchange in the subject security, odd-lot market orders
and all odd-lot limit orders eligible to receive an execution based on
the re-opening price that are accepted by Exchange systems prior to the
halt in trading or are received during the halt in trading shall be
executed at the price of the re-opening transaction.
---------------------------------------------------------------------------
\6\ Pursuant to Exchange Rule 124(b), an odd-lot limit order is
considered marketable when its limit price is at or higher than the
current National best offer (in the case of an odd-lot limit to buy)
and when its limit price is at or lower than the current National
best bid (in the case of an odd-lot limit to sell).
---------------------------------------------------------------------------
On September 6, 2007, the Exchange amended Exchange Rule 124 to
modify the way in which Exchange systems priced and executed odd-lot
orders (the ``Odd-lot Filing'').\7\ As it pertains to openings and
halts in trading, the Odd-lot Filing was intended to provide that odd-
lot orders entered into the Exchange systems before the opening
transaction of the subject security that would be eligible for
execution based on the price of the opening transaction would be
executed at the price of the opening transaction.\8\ With respect to
halts in trading on the Exchange, the Odd-lot Filing was also to
provide that odd-lot orders accepted by Exchange systems prior to, or
during, a halt in trading that are subsequently eligible to receive an
execution based on the re-opening price would be executed at the price
of the re-opening transaction.\9\
---------------------------------------------------------------------------
\7\ See Securities Exchange Act Release No. 56551 (September 27,
2007), 72 FR 56415 (October 3, 2007) (SR-NYSE-2007-82).
\8\ See Exchange Rule 124 subsections (c)(vi) (relating to
openings) and (c)(vii) (relating to trading halts).
\9\ The Commission made minor clarifications to this paragraph
pursuant to a telephone call with the Exchange. See telephone call
among Jennifer Dodd, Special Counsel, Division of Trading and
Markets, Commission, Rahman Harrison, Special Counsel, Division of
Trading and Markets, Commission, and Gillian Rowe, Principal Rule
Counsel, NYSE, on November 19, 2007.
---------------------------------------------------------------------------
Currently, Exchange systems handle odd-lot orders at the opening
and re-opening after a halt in trading as intended and as described
above. However, the Exchange states that the use of the word
``marketable'' \10\ in the rule text of subsections (c)(vi) and
(c)(vii) is not accurate. Specifically as it pertains to the open, an
order is neither marketable or non-marketable until the specialist
determines the opening price. As such, the rule text of subsection
(c)(vi) and (c)(vii) should not include the word marketable. Moreover,
the use of the term marketable in (c)(vii) technically excludes non-
marketable odd-lot limit orders accepted by Exchange systems prior to a
halt in trading that are subsequently eligible to receive an execution
based on the re-opening price from receiving an execution.\11\ This
would occur because the definition of marketable in the rule requires
the odd-lot limit order to have been marketable ``upon receipt by the
system.''
---------------------------------------------------------------------------
\10\ See Exchange Rule 124(c) which defines ``marketable odd-lot
orders'' as odd-lot market orders and odd-lot limit orders that are
marketable upon receipt.
\11\ Exchange Rule 124(d) governs the execution and pricing of
odd-lot limit orders that are non-marketable upon receipt that
become marketable.
---------------------------------------------------------------------------
Accordingly, the Exchange proposes in this filing to amend
subsection (c)(vi) of Exchange Rule 124 to clarify that odd-lot orders
entered into the Exchange systems before the opening transaction of the
subject security that would be eligible for execution based on the
price of the opening transaction shall be executed at the price of the
opening transaction. The Exchange further proposes to amend subsection
(c)(vii) to clarify that, in the event of a halt in trading on the
Exchange, odd-lot orders accepted by Exchange systems prior to, or
during, a halt in trading that are subsequently eligible to receive an
execution based on the re-opening price shall be executed at the price
of the re-opening transaction.
The Exchange believes these amendments will accurately align the
rule text with the operation of Exchange systems in the handling of
odd-lot orders under these specific circumstances. However, the
Exchange will continue to monitor the recent changes to the processing
of odd-lots and confer with our constituents in order to evaluate
whether further change is necessary.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the provisions of section 6(b) of the Act,\12\ in general, and
with section 6(b)(5) of the Act,\13\ in particular, in that it is
designed to promote just and equitable principles of trade, to remove
impediments to and perfect the mechanism of a free and open market and
a national market system, and, in general, to protect investors and the
public interest. The Exchange also states that the proposed rule change
also is designed to support the principles of section 11A(a)(1) \14\ in
that it seeks to assure economically efficient execution of securities
transactions, make it practicable for brokers to execute investors'
orders in the best market and provide an opportunity for investors'
orders to be executed without the participation of a dealer.
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\12\ 15 U.S.C. 78f(b).
\13\ 15 U.S.C. 78f(b)(5).
\14\ 15 U.S.C. 78k-1(a)(1).
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B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants or Others
The Exchange has neither solicited nor received written comments on
the proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule change effects a change in an
existing order-entry or trading system of a self-regulatory
organization that does not (1) Significantly affect the protection of
investors of the public interest, (2) impose any significant burden on
competition, and (3) have the effect of limiting the access to or
availability of the system, it has become effective pursuant to section
19(b)(3)(A)(iii) of the Act \15\ and Rule 19b-4(f)(5) thereunder.\16\
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\15\ 15 U.S.C. 78s(b)(3)(A)(iii).
\16\ 17 CFR 240.19b-4(f)(5).
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At any time within 60 days of the filing of such proposed rule
change, the Commission may summarily abrogate such rule change if it
appears to the Commission that such action is necessary or appropriate
in the public interest, for the protection of investors or otherwise in
furtherance of the purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://
www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-NYSE-2007-103 on the subject line.
[[Page 68937]]
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-2007-103. 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 the 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-2007-103 and should be
submitted on or before December 27, 2007.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\17\
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\17\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-23651 Filed 12-5-07; 8:45 am]
BILLING CODE 8011-01-P
