Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change to the Exchange's NYSE BondsSM, 70362-70363 [E7-23921]
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70362
Federal Register / Vol. 72, No. 237 / Tuesday, December 11, 2007 / Notices
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–56894; File No. SR–NYSE–
2007–107]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change to the
Exchange’s NYSE BondsSM System
and Trade Execution Fees
December 4, 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
27, 2007, the New York Stock Exchange
LLC (‘‘NYSE’’ or the ‘‘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 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 implement
a four-month pilot program, effective
December 1, 2007, that will issue
liquidity providers a $20 credit for
certain bond trades executed on the
NYSE BondsSM system (‘‘NYSE Bonds’’)
with an execution size of less than 20
bonds. This pilot program will
terminate on the close of business
March 31, 2008, and will apply to all
orders. The text of the proposed rule
change is available at the Exchange’s
principal office, in the Commission’s
Public Reference Room, and at https://
www.nyse.com.
pwalker on PROD1PC71 with NOTICES
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. NYSE has prepared
summaries, set forth in Sections A, B,
and C below, of the most significant
aspects of such statements.
1 15
2 17
U.S.C. 78s(b)(1).
CFR 240.19b–4.
VerDate Aug<31>2005
19:12 Dec 10, 2007
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to implement
a four-month pilot program pursuant to
which it will issue liquidity providers a
$20 credit for every execution on NYSE
Bonds that is less than 20 bonds. This
pilot program will commence on
December 1, 2007 and will terminate at
the close of business March 31, 2008.
A liquidity provider is one who posts
liquidity to the system. During the
course of clearing their bond trades,
liquidity providers absorb clearing
costs. To offset these clearing costs,
liquidity providers may increase the
offer price or decrease the bid price of
the bond. In doing so, the best execution
of a bond order may be compromised as
clearing costs increase with smaller
orders.
Accordingly, the Exchange proposes
that liquidity providers be issued a $20
credit for executions of bond orders
with an execution size of less than 20
bonds. For a liquidity provider to be
eligible to receive this $20 credit, the
original order posted by the liquidity
provider must be for 20 bonds or more.
For example, if a liquidity provider
posts an order for 100 bonds and a
contra side order comes in for 50 bonds,
the liquidity provider will not receive a
$20 credit. However, if a contra side
order comes in for 10 bonds against the
liquidity provider’s original posted
order of 100 bonds, the liquidity
provider will receive a credit of $20 for
that execution from the Exchange.
NYSE Bonds, which was
implemented in March 2007, will
continue to update its functionality to
provide competitive bond trading for
customers. The Exchange believes that
this $20 credit will incentivize the
liquidity provider to display the best
price available on NYSE Bonds.
2. Statutory Basis
NYSE believes that the proposed rule
change is consistent with the provisions
of Section 6 of the Act,3 in general, and
furthers the objectives of Section 6(b)(4)
of the Act 4 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.
3 15
4 15
Jkt 214001
PO 00000
U.S.C. 78f.
U.S.C. 78f(b)(4).
Frm 00074
Fmt 4703
B. Self-Regulatory Organization’s
Statement on Burden on Competition
NYSE does not believe that the
proposed rule change will impose any
burden on competition that is not
necessary or appropriate in furtherance
of 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
Because the foregoing rule change
establishes or changes a due, fee, or
other charge imposed by the Exchange,
it has become effective pursuant to
Section 19(b)(3)(A) of the Act 5 and
subparagraph (f)(2) of Rule 19b–4
thereunder.6 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–2007–107 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–2007–107. 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
5 15
6 17
Sfmt 4703
E:\FR\FM\11DEN1.SGM
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(2).
11DEN1
Federal Register / Vol. 72, No. 237 / Tuesday, December 11, 2007 / Notices
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–2007–107 and
should be submitted on or before
January 2, 2008.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.7
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–23921 Filed 12–10–07; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–56895; File No. SR–NYSE–
2007–109]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change Relating to the
NYSE Rule 98 Guidelines for Approved
Persons Associated With a Specialist’s
Member Organization
pwalker on PROD1PC71 with NOTICES
December 4, 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
28, 2007, the New York Stock Exchange
LLC (‘‘NYSE’’ or ‘‘Exchange’’) filed with
the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I and II below, which Items have
been prepared substantially by the
7 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
VerDate Aug<31>2005
19:12 Dec 10, 2007
Jkt 214001
70363
registered broker-dealer organizations.
Pursuant to the proposed rule change,
while NYSE Regulation would be
permitted to grant a temporary
exemption from section (b)(i), specialist
firms and their approved persons would
still be required to comply with sections
(b)(ii) through (b)(x) of the Rule 98
Guidelines and thus maintain the
functional separation contemplated by
I. Self-Regulatory Organization’s
the rule.
Statement of the Terms of Substance of
Recent changes among the specialist
the Proposed Rule Change
firms, including the recent decisions by
The Exchange is proposing to amend
Van der Moolen Specialists USA, LLC
the NYSE Rule 98 Guidelines for
and SIG Specialists, Inc. to close their
Approved Persons Associated with a
respective specialist businesses at the
Specialist’s Member Organization
Exchange,6 have warranted the need for
(‘‘Rule 98 Guidelines’’) to provide NYSE greater flexibility to permit new firms to
Regulation, Inc. (‘‘NYSE Regulation’’)
qualify as specialist member
with the authority to grant a prospective organizations. NYSE Rule 98, which
specialist member organization a
requires certain barriers between a
temporary exemption from section (b)(i) specialist member organization and an
of the NYSE Rule 98 Guidelines. The
approved person, has the potential to
text of the proposed rule change is
impede the approval process for a
available at https://www/nyse.com, NYSE prospective specialist firm. In
and the Commission’s Public Reference
particular, because of the time delay
Room.
necessary for an NYSE member
organization to form a separate NYSE
II. Self-Regulatory Organization’s
member organization from which to run
Statement of the Purpose of, and
a specialist business, the requirement to
Statutory Basis for, the Proposed Rule
maintain a separate and distinct
Change
organization could impact the ability of
In its filing with the Commission, the
a current member organization to
Exchange included statements
expeditiously begin operating as a
concerning the purpose of and basis for
specialist organization.
the proposed rule change. The text of
The NYSE is in the process of
these statements may be examined at
reviewing Rule 98 and, in particular,
the places specified in Item IV below.
whether revising the Rule 98 Guidelines
The Exchange has prepared summaries, would provide sufficient protection to
set forth in sections A, B, and C below,
meet the stated goals of Rule 98.
of the most significant aspects of such
Nevertheless, the NYSE is not seeking to
statements.
amend Rule 98 comprehensively at this
time. Rather, pending further review by
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
the NYSE of the continued applicability
Statutory Basis for, the Proposed Rule
of Rule 98 in its current form, the NYSE
Change
proposes to grant NYSE Regulation
exemptive authority to allow
1. Purpose
prospective specialist firms and their
For purposes of seeking NYSE Rule 98 approved persons to temporarily operate
exemptive relief, the NYSE is proposing without having to be separate and
to amend the Rule 98 Guidelines to
distinct organizations. The NYSE
allow NYSE Regulation 5 to grant
proposes granting this exemptive
prospective specialist firms with a
authority to expedite the process for
temporary exemption from section (b)(i) new entrants to apply for and be
of such guidelines, which currently
approved as specialist organizations at
require a specialist member organization the NYSE.
and its approved person be separate and
The NYSE notes that prospective
distinct organizations. The Exchange
specialist organizations and their
has consistently interpreted this
approved persons would continue to be
provision to require that the specialist
subject to sections (b)(ii) through (b)(x)
and the approved person be in separate, of the Rule 98 Guidelines, which set
Exchange. The Exchange has filed the
proposal pursuant to section 19(b)(3)(A)
of the Act 3 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.
3 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
5 Rule 98(b) requires an approved person seeking
a Rule 98 exemption to obtain the prior written
agreement of the Exchange. Pursuant to a
Delegation Agreement, the Exchange has delegated
to NYSE Regulation the authority to review and
approve such Rule 98 exemption requests.
4 17
PO 00000
Frm 00075
Fmt 4703
Sfmt 4703
6 See Press Release, NYSE, NYSE to Reallocate
Certain Specialist Rights to Kellogg Specialist
Group (Nov. 14, 2007), available at https://
www.nyse.com/press/1195039877990.html; Press
Release, Van der Moolen, Van der Moolen to
terminate U.S. specialist activities (Nov. 15, 2007),
available at https://www.vandermoolen.com/
?sid=17&press=151.
E:\FR\FM\11DEN1.SGM
11DEN1
]]>Agencies
[Federal Register Volume 72, Number 237 (Tuesday, December 11, 2007)]
[Notices]
[Pages 70362-70363]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-23921]
[[Page 70362]]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-56894; File No. SR-NYSE-2007-107]
Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change to
the Exchange's NYSE BondsSM System and Trade Execution Fees
December 4, 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 27, 2007, the New York Stock Exchange LLC (``NYSE'' or the
``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 Commission is publishing this notice to solicit comments on
the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to implement a four-month pilot program,
effective December 1, 2007, that will issue liquidity providers a $20
credit for certain bond trades executed on the NYSE BondsSM
system (``NYSE Bonds'') with an execution size of less than 20 bonds.
This pilot program will terminate on the close of business March 31,
2008, and will apply to all orders. The text of the proposed rule
change is available at the Exchange's principal office, in the
Commission's Public Reference Room, and at https://www.nyse.com.
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. NYSE has prepared summaries, set forth in Sections A, B,
and C below, of the most significant aspects of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to implement a four-month pilot program
pursuant to which it will issue liquidity providers a $20 credit for
every execution on NYSE Bonds that is less than 20 bonds. This pilot
program will commence on December 1, 2007 and will terminate at the
close of business March 31, 2008.
A liquidity provider is one who posts liquidity to the system.
During the course of clearing their bond trades, liquidity providers
absorb clearing costs. To offset these clearing costs, liquidity
providers may increase the offer price or decrease the bid price of the
bond. In doing so, the best execution of a bond order may be
compromised as clearing costs increase with smaller orders.
Accordingly, the Exchange proposes that liquidity providers be
issued a $20 credit for executions of bond orders with an execution
size of less than 20 bonds. For a liquidity provider to be eligible to
receive this $20 credit, the original order posted by the liquidity
provider must be for 20 bonds or more. For example, if a liquidity
provider posts an order for 100 bonds and a contra side order comes in
for 50 bonds, the liquidity provider will not receive a $20 credit.
However, if a contra side order comes in for 10 bonds against the
liquidity provider's original posted order of 100 bonds, the liquidity
provider will receive a credit of $20 for that execution from the
Exchange.
NYSE Bonds, which was implemented in March 2007, will continue to
update its functionality to provide competitive bond trading for
customers. The Exchange believes that this $20 credit will incentivize
the liquidity provider to display the best price available on NYSE
Bonds.
2. Statutory Basis
NYSE believes that the proposed rule change is consistent with the
provisions of Section 6 of the Act,\3\ in general, and furthers the
objectives of Section 6(b)(4) of the Act \4\ 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.
---------------------------------------------------------------------------
\3\ 15 U.S.C. 78f.
\4\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
NYSE does not believe that the proposed rule change will impose any
burden on competition that is not necessary or appropriate in
furtherance of 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
Because the foregoing rule change establishes or changes a due,
fee, or other charge imposed by the Exchange, it has become effective
pursuant to Section 19(b)(3)(A) of the Act \5\ and subparagraph (f)(2)
of Rule 19b-4 thereunder.\6\ 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.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78s(b)(3)(A).
\6\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
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-2007-107 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-2007-107. 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
[[Page 70363]]
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-2007-107 and should be submitted on or before January 2, 2008.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.7
---------------------------------------------------------------------------
\7\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-23921 Filed 12-10-07; 8:45 am]
BILLING CODE 8011-01-P
