Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing of a Proposed Rule Change Relating to Restrictions on Acting as Market Makers and Floor Broker, 70367-70369 [E7-23924]
Download as PDF
<![CDATA[
Federal Register / Vol. 72, No. 237 / Tuesday, December 11, 2007 / Notices
daily net asset value (‘‘NAV’’) of ETFs
when equity markets close, typically 1
p.m. PT. Since ETFs trade until 1:15
p.m. PT, their closing price, which is
the recorded price of the last trade, is
often different than its NAV, calculated
15 minutes earlier. By synchronizing the
closing auctions for ETFs with the close
of the Exchange’s Core Trading Session,
an ETF’s closing price will be better
aligned with its NAV.
The Exchange intends this system
change to be effective on filing and
operative on January 1, 2008. By
amending the time of the Closing
Auction for ETFs from 1:15 p.m. PT to
1 p.m. PT, users will benefit from a
better alignment of an ETF’s NAV and
closing price.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act 6 in general, and
furthers the objectives of Section 6(b)(5)
of the Act 7 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 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.
pwalker on PROD1PC71 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.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule
change does not: (1) Significantly affect
the protection of investors or the public
interest; (2) impose any significant
burden on competition; and (3) become
operative for 30 days from the date on
which it was filed, or such shorter time
as the Commission may designate if
consistent with the protection of
investors and the public interest, it has
6 15
U.S.C. 78f(b).
7 15 U.S.C. 78f(b)(5).
VerDate Aug<31>2005
19:12 Dec 10, 2007
Jkt 214001
become effective pursuant to Section
19(b)(3)(A) of the Act 8 and Rule 19b–
4(f)(6) thereunder.9
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 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 rulecomments@sec.gov. Please include File
Number SR–NYSEArca–2007–124 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–2007–124. 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,
8 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). In addition, NYSE Arca
has given the Commission 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
on which the Exchange filed the proposed rule
change. See 17 CFR 240.19b–4(f)(6)(iii).
9 17
PO 00000
Frm 00079
Fmt 4703
Sfmt 4703
70367
DC 20549, on official business days
between the hours of 10 a.m. and 3 p.m.
Copies of such filing also will be
available for inspection and copying at
the principal office of the Exchange. All
comments received will be posted
without change; the Commission does
not edit personal identifying
information from submissions. You
should submit only information that
you wish to make available publicly. All
submissions should refer to File
Number SR–NYSEArca–2007–124 and
should be submitted on or before
January 2, 2008.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–23918 Filed 12–10–07; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–56899; File No. SR–
NYSEArca–2007–120]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing of a
Proposed Rule Change Relating to
Restrictions on Acting as Market
Makers and Floor Broker
December 5, 2007.
Pursuant to section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’)1 and Rule 19b–4 thereunder,2
notice is hereby given that on November
27, 2007, the NYSE Arca, Inc. (‘‘NYSE
Arca’’ 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 Exchange.
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
certain Exchange rules to restrict an
OTP Holder from concurrently
registering as both a Market Maker and
a Floor Broker. The text of the proposed
rule change is available at the Exchange,
at the Commission’s Public Reference
Room, and https://www.nyse.com.
10 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
E:\FR\FM\11DEN1.SGM
11DEN1
70368
Federal Register / Vol. 72, No. 237 / Tuesday, December 11, 2007 / 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, the
Exchange included statements
concerning the purpose of, and basis, for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in sections A, B, and C below, of
the most significant aspects of such
statements.
pwalker on PROD1PC71 with NOTICES
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange states that the purpose
of this proposal is to amend NYSE Arca
Rules 6.33 and 6.44, in order to restrict
an OTP Holder from concurrently
registering as both a Market Maker and
as a Floor Broker, on NYSE Arca. The
Exchange also proposes to revise Rule
6.82(h) to restrict a Lead Market Maker
from performing the functions of a Floor
Broker. Further, the Exchange proposes
to eliminate, in its entirety, Rule 6.38,
which deals with restrictions when
acting as a Market Maker and Floor
Broker.
Presently, OTP Holders may be
registered as either a Market Maker or a
Floor Broker, or in certain situations,
both. An OTP Holder that wished to act
in both capacities must apply for and
receive approval from the Exchange.3
The Exchange noted that presently there
are no OTP Holders registered in the
dual capacity of Market Maker and
Floor Broker, nor does the Exchange
have any pending applications from
existing OTP Holders.
The practice of dual registration dates
back to the early days of floor-based,
open outcry trading. Open outcry
trading was for the most part a manual
process, necessitating the need for a
large number of Floor Brokers. On
occasion, often in periods of unusually
active market conditions, there might
have been a shortage of brokers on the
floor, and in the interest of maintaining
a fair and orderly market, Market
Makers could be called upon to act as
Floor Brokers. Automation has led to a
dramatic decrease in open outcry
trading and has greatly reduced the
reliance on Floor Brokers to execute
orders. Because the vast majority of
trades on NYSE Arca now occur
3 See
NYSE Arca Rule 6.38(b)(4).
VerDate Aug<31>2005
19:12 Dec 10, 2007
Jkt 214001
electronically, the Exchange does not
feel there would ever be a shortage of
Floor Brokers such that it could be
detrimental to efficient order handling,
even in times of unusual market
activity.
The Exchange proposes establishing
new Rule 6.33(b) stating that an OTP
Holder registered as a Market Maker on
NYSE Arca may not be concurrently
registered as a Floor Broker on NYSE
Arca. Accordingly, the Exchange also
proposes establishing new Rule 6.44(b),
stating that an OTP Holder presently
registered as a Floor Broker on NYSE
Arca cannot be concurrently registered
as a Market Maker on NYSE Arca. The
Exchange also proposes making nonsubstantive changes regarding the
numbering of existing rules in order to
accommodate the new rules.
Pursuant to NYSE Arca Rule
6.82(h)(3), Lead Market Makers
(‘‘LMM’’) may perform the functions of
a Floor Broker. Historically, LMMs
might perform the duties of a Floor
Broker and represent public customer
orders when there was a shortage of
Floor Brokers available. As stated above,
due to increased automation in the
marketplace, the Exchange does not
anticipate a shortage of Floor Brokers
such that it would necessitate an LMM
to have to act as a Floor Broker. As such,
the Exchange proposes deleting Rule
6.82(h)(3) in its entirety. The Exchange
also proposes deleting Commentary .02
to Rule 6.82 relating to a LMM’s
handling of public customer orders.
Presently, OTP Holders acting as both
Floor Broker and Market Maker are
subject to certain restrictions under
NYSE Arca Rule 6.38. Upon approval of
the above-mentioned rule changes, these
restrictions will become obsolete. Since
Market Makers will be prohibited from
acting as Floor Brokers, and vice-versa,
there is no need to have specific
restrictions governing their trading
activity. Therefore, the Exchange
proposes eliminating Rule 6.38 in its
entirety.
The Exchange noted that LMMs and
InterMarket Linkage Maker Makers
(‘‘IMM’’) are exempt from certain
provisions contained in NYSE Arca
Rule 6.38. Currently, LMMs and IMMs
may be called upon to send Principal
Acting as Agent (‘‘P/A’’) Orders through
the InterMarket Linkage System
(‘‘Linkage’’) pursuant to NYSE Arca
Rules 6.92 and 6.93. Linkage is a fully
automated process on NYSE Arca, and
while the IMM or LMM may be acting
in an agency capacity, as the responsible
party for sending the order, they are not
acting in the capacity of a Floor Broker.
The Exchange’s electronic system
automatically routes orders through
PO 00000
Frm 00080
Fmt 4703
Sfmt 4703
Linkage, on behalf of the IMM or LMM.
Neither the IMM nor LMM has any
manual interaction with the system, nor
the individual Linkage orders.
Eliminating NYSE Arca Rule 6.38 will
not affect their ability to carry out any
Linkage obligations. Thus, the Exchange
proposes to add language to Rule 6.33(b)
stating that a prohibition on concurrent
registration as both a Market Maker and
Floor Broker will not prevent an IMM or
LMM from acting in an agency capacity
for Linkage purposes.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
section 6(b) of the Act 4 in general, and
furthers the objectives of section 6(b)(5)
of the Act 5 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 of a free and
open market and to protect investors
and the public interest.
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
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 Exchange consents,
the Commission will:
A. By order approve the proposed rule
change, or
B. institute proceedings to determine
whether the proposed rule change
should be disapproved.
4 15
5 15
E:\FR\FM\11DEN1.SGM
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
11DEN1
Federal Register / Vol. 72, No. 237 / Tuesday, December 11, 2007 / Notices
70369
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.6
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–23924 Filed 12–10–07; 8:45 am]
Percent
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:
BILLING CODE 8011–01–P
SMALL BUSINESS ADMINISTRATION
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send e-mail to rulecomments@sec.gov. Please include File
Number SR–NYSEArca–2007–120 on
the subject line.
pwalker on PROD1PC71 with NOTICES
Electronic Comments
[Disaster Declaration #11120 and #11121]
Jkt 214001
4.000
4.000
U.S. Small Business
Administration.
ACTION: Notice.
The number assigned to this disaster
for physical damage is 111206 and for
economic injury is 111210.
(Catalog of Federal Domestic Assistance
Numbers 59002 and 59008)
AGENCY:
6 17
19:12 Dec 10, 2007
5.250
Indiana Disaster #In–00014
SUMMARY: This is a Notice of the
Presidential declaration of a major
Paper Comments
disaster for the State of Indiana (FEMA–
1732–DR), dated 11/30/2007.
• Send paper comments in triplicate
Incident: Severe Storms and Flooding.
to Nancy M. Morris, Secretary,
Incident Period: 08/15/2007 through
Securities and Exchange Commission,
08/27/2007.
100 F Street NE., Washington, DC
Effective Date: 11/30/2007.
20549–1090.
Physical Loan Application Deadline
Date: 01/29/2008.
All submissions should refer to File
Economic Injury (EIDL) Loan
Number SR–NYSEArca–2007–120. This
Application Deadline Date: 09/01/2008.
file number should be included on the
subject line if e-mail is used. To help the ADDRESSES: Submit completed loan
applications to: U.S. Small Business
Commission process and review your
Administration, Processing and
comments more efficiently, please use
only one method. The Commission will Disbursement Center, 14925 Kingsport
post all comments on the Commission’s Road, Fort Worth, TX 76155.
FOR FURTHER INFORMATION CONTACT: A.
Internet Web site (https://www.sec.gov/
Escobar, Office of Disaster Assistance,
rules/sro.shtml). Copies of the
U.S. Small Business Administration,
submission, all subsequent
409 3rd Street, SW., Suite 6050,
amendments, all written statements
Washington, DC 20416.
with respect to the proposed rule
SUPPLEMENTARY INFORMATION: Notice is
change that are filed with the
hereby given that as a result of the
Commission, and all written
President’s major disaster declaration on
communications relating to the
11/30/2007, applications for disaster
proposed rule change between the
Commission and any person, other than loans may be filed at the address listed
above or other locally announced
those that may be withheld from the
locations.
public in accordance with the
The following areas have been
provisions of 5 U.S.C. 552, will be
determined to be adversely affected by
available for inspection and copying in
the disaster:
the Commission’s Public Reference
Primary Counties (Physical Damage and
Room, 100 F Street, NE., Washington,
Economic Injury Loans): Lake.
DC 20549, on official business days
Contiguous Counties (Economic Injury
between the hours of 10 a.m. and 3 p.m.
Loans Only):
Copies of such filing will also be
Indiana: Jasper, Newton, Porter.
available for inspection and copying at
Illinois: Cook, Kankakee, Will.
the principal office of the Exchange. All
The Interest Rates are:
comments received will be posted
without change; the Commission does
Percent
not edit personal identifying
For Physical Damage:
information from submissions. You
Homeowners With Credit Availshould submit only information that
able Elsewhere ......................
6.250
you wish to make available publicly. All
Homeowners Without Credit
submissions should refer to File number
Available Elsewhere ..............
3.125
SR–NYSEArca–2007–120 and should be
Businesses With Credit Available Elsewhere ......................
8.000
submitted by January 2, 2008.
VerDate Aug<31>2005
Other (Including Non-Profit Organizations)
With
Credit
Available Elsewhere ..............
Businesses and Non-Profit Organizations Without Credit
Available Elsewhere ..............
For Economic Injury:
Businesses and Small Agricultural Cooperatives Without
Credit Available Elsewhere ...
PO 00000
CFR 200.30–3(a)(12).
Frm 00081
Fmt 4703
Sfmt 4703
James E. Rivera,
Acting Associate Administrator for Disaster
Assistance.
[FR Doc. 07–6002 Filed 12–10–07; 8:45 am]
BILLING CODE 8025–01–M
DEPARTMENT OF STATE
[PUBLIC NOTICE 6012]
Culturally Significant Objects Imported
for Exhibition Determinations: ‘‘The
World of 1607’’
ACTION:
Notice, correction.
SUMMARY: On March 7, 2007, notice was
published on page 10289 of the Federal
Register (volume 72, number 44) of
determinations made by the Department
of State pertaining to the Exhibit, ‘‘The
World of 1607.’’ The referenced notice
is corrected as to additional objects to be
included in the exhibition. Pursuant to
the authority vested in me by the Act of
October 19, 1965 (79 Stat. 985; 22 U.S.C.
2459), Executive Order 12047 of March
27, 1978, the Foreign Affairs Reform and
Restructuring Act of 1998 (112 Stat.
2681, et seq.; 22 U.S.C. 6501 note, et
seq.), Delegation of Authority No. 234 of
October 1, 1999, Delegation of Authority
No. 236 of October 19, 1999, as
amended, and Delegation of Authority
No. 257 of April 15, 2003 [68 FR 19875],
I hereby determine that the objects to be
included in the exhibition ‘‘The World
of 1607’’, imported from abroad for
temporary exhibition within the United
States, are of cultural significance. The
objects are imported pursuant to loan
agreements with the foreign owners or
custodians. I also determine that the
exhibition or display of the exhibit
objects at the Jamestown Settlement,
Williamsburg, Virginia, from on or
about January 1, 2008, until on or about
April 25, 2008, and at possible
additional exhibitions or venues yet to
be determined, is in the national
interest. Public Notice of these
E:\FR\FM\11DEN1.SGM
11DEN1
]]>Agencies
[Federal Register Volume 72, Number 237 (Tuesday, December 11, 2007)]
[Notices]
[Pages 70367-70369]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-23924]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-56899; File No. SR-NYSEArca-2007-120]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
of a Proposed Rule Change Relating to Restrictions on Acting as Market
Makers and Floor Broker
December 5, 2007.
Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act'')\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on November 27, 2007, the NYSE Arca, Inc. (``NYSE Arca'' 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
Exchange. 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 amend certain Exchange rules to restrict
an OTP Holder from concurrently registering as both a Market Maker and
a Floor Broker. The text of the proposed rule change is available at
the Exchange, at the Commission's Public Reference Room, and https://
www.nyse.com.
[[Page 70368]]
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of, and basis, for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has 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 states that the purpose of this proposal is to amend
NYSE Arca Rules 6.33 and 6.44, in order to restrict an OTP Holder from
concurrently registering as both a Market Maker and as a Floor Broker,
on NYSE Arca. The Exchange also proposes to revise Rule 6.82(h) to
restrict a Lead Market Maker from performing the functions of a Floor
Broker. Further, the Exchange proposes to eliminate, in its entirety,
Rule 6.38, which deals with restrictions when acting as a Market Maker
and Floor Broker.
Presently, OTP Holders may be registered as either a Market Maker
or a Floor Broker, or in certain situations, both. An OTP Holder that
wished to act in both capacities must apply for and receive approval
from the Exchange.\3\ The Exchange noted that presently there are no
OTP Holders registered in the dual capacity of Market Maker and Floor
Broker, nor does the Exchange have any pending applications from
existing OTP Holders.
---------------------------------------------------------------------------
\3\ See NYSE Arca Rule 6.38(b)(4).
---------------------------------------------------------------------------
The practice of dual registration dates back to the early days of
floor-based, open outcry trading. Open outcry trading was for the most
part a manual process, necessitating the need for a large number of
Floor Brokers. On occasion, often in periods of unusually active market
conditions, there might have been a shortage of brokers on the floor,
and in the interest of maintaining a fair and orderly market, Market
Makers could be called upon to act as Floor Brokers. Automation has led
to a dramatic decrease in open outcry trading and has greatly reduced
the reliance on Floor Brokers to execute orders. Because the vast
majority of trades on NYSE Arca now occur electronically, the Exchange
does not feel there would ever be a shortage of Floor Brokers such that
it could be detrimental to efficient order handling, even in times of
unusual market activity.
The Exchange proposes establishing new Rule 6.33(b) stating that an
OTP Holder registered as a Market Maker on NYSE Arca may not be
concurrently registered as a Floor Broker on NYSE Arca. Accordingly,
the Exchange also proposes establishing new Rule 6.44(b), stating that
an OTP Holder presently registered as a Floor Broker on NYSE Arca
cannot be concurrently registered as a Market Maker on NYSE Arca. The
Exchange also proposes making non-substantive changes regarding the
numbering of existing rules in order to accommodate the new rules.
Pursuant to NYSE Arca Rule 6.82(h)(3), Lead Market Makers (``LMM'')
may perform the functions of a Floor Broker. Historically, LMMs might
perform the duties of a Floor Broker and represent public customer
orders when there was a shortage of Floor Brokers available. As stated
above, due to increased automation in the marketplace, the Exchange
does not anticipate a shortage of Floor Brokers such that it would
necessitate an LMM to have to act as a Floor Broker. As such, the
Exchange proposes deleting Rule 6.82(h)(3) in its entirety. The
Exchange also proposes deleting Commentary .02 to Rule 6.82 relating to
a LMM's handling of public customer orders.
Presently, OTP Holders acting as both Floor Broker and Market Maker
are subject to certain restrictions under NYSE Arca Rule 6.38. Upon
approval of the above-mentioned rule changes, these restrictions will
become obsolete. Since Market Makers will be prohibited from acting as
Floor Brokers, and vice-versa, there is no need to have specific
restrictions governing their trading activity. Therefore, the Exchange
proposes eliminating Rule 6.38 in its entirety.
The Exchange noted that LMMs and InterMarket Linkage Maker Makers
(``IMM'') are exempt from certain provisions contained in NYSE Arca
Rule 6.38. Currently, LMMs and IMMs may be called upon to send
Principal Acting as Agent (``P/A'') Orders through the InterMarket
Linkage System (``Linkage'') pursuant to NYSE Arca Rules 6.92 and 6.93.
Linkage is a fully automated process on NYSE Arca, and while the IMM or
LMM may be acting in an agency capacity, as the responsible party for
sending the order, they are not acting in the capacity of a Floor
Broker. The Exchange's electronic system automatically routes orders
through Linkage, on behalf of the IMM or LMM. Neither the IMM nor LMM
has any manual interaction with the system, nor the individual Linkage
orders. Eliminating NYSE Arca Rule 6.38 will not affect their ability
to carry out any Linkage obligations. Thus, the Exchange proposes to
add language to Rule 6.33(b) stating that a prohibition on concurrent
registration as both a Market Maker and Floor Broker will not prevent
an IMM or LMM from acting in an agency capacity for Linkage purposes.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with section 6(b) of the Act \4\ in general, and furthers the
objectives of section 6(b)(5) of the Act \5\ 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 of a free and open market and to protect investors and
the public interest.
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
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 Exchange consents, the Commission will:
A. By order approve the proposed rule change, or
B. institute proceedings to determine whether the proposed rule
change should be disapproved.
[[Page 70369]]
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 e-mail to rule-comments@sec.gov. Please include File
Number SR-NYSEArca-2007-120 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-2007-120.
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 will also be available for
inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File number SR-NYSEArca-2007-120 and should
be submitted by January 2, 2008.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\6\
Florence E. Harmon,
Deputy Secretary.
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78f(b).
\5\ 15 U.S.C. 78f(b)(5).
\6\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
[FR Doc. E7-23924 Filed 12-10-07; 8:45 am]
BILLING CODE 8011-01-P
