Self-Regulatory Organizations; NYSE Arca, Inc.; Order Granting Approval of Proposed Rule Changes Relating to Amendments to NYSE Arca Rules 2.17 and 4.5 Relating to Certain OTP Holder and OTP Firm Administrative Procedures, 3304 [E8-736]

Download as PDF 3304 Federal Register / Vol. 73, No. 12 / Thursday, January 17, 2008 / Notices submissions should refer to File Number SR–NYSEArca–2008–04 and should be submitted on or before February 7, 2008. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.14 Florence E. Harmon, Deputy Secretary. [FR Doc. E8–709 Filed 1–16–08; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–57135; File No. SR– NYSEArca–2006–83] Self-Regulatory Organizations; NYSE Arca, Inc.; Order Granting Approval of Proposed Rule Changes Relating to Amendments to NYSE Arca Rules 2.17 and 4.5 Relating to Certain OTP Holder and OTP Firm Administrative Procedures January 11, 2008. I. Introduction On November 7, 2006, NYSE Arca, Inc. (‘‘NYSE Arca’’ or the ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’ or ‘‘SEC’’), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Exchange Act’’) 1 and Rule 19b–4 thereunder,2 a proposal to amend its Rules 2.17 and 4.5 relating to certain OTP Holder and OTP Firm administrative procedures. The proposed rule change was published for comment in the Federal Register on July 18, 2007.3 The Commission received no comments regarding the proposal. This order approves the proposed rule changes. II. Description of the Proposal mstockstill on PROD1PC66 with NOTICES NYSE Arca Rule 2.17 currently provides that all Options Trading Permit (‘‘OTP’’) Firms 4 must file their formation documents with the Exchange. The Exchange proposes to amend NYSE Arca Rule 2.17 in order to provide that only those OTP Firms for which the Exchange is the Designated Examining Authority must submit such formation documents to the Exchange. NYSE Arca Rule 4.5(c) currently requires OTP Holders 5 and OTP Firms that carry or clear accounts for 14 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 See Securities Exchange Act Release No. 56058 (Jul. 12, 2007), 72 FR 39476. 4 See NYSE Arca Rule 1.1(r). 5 See NYSE Arca Rule 1.1(q). 1 15 VerDate Aug<31>2005 17:07 Jan 16, 2008 Jkt 214001 customers to file two manually signed copies of Part II of SEC Form X–17A– 5 with the Exchange on a quarterly basis. The Exchange proposes to amend NYSE Arca Rule 4.5(c) to provide that such reports shall be filed electronically with the Exchange, rather than manually, and that the OTP Holder or OTP Firm, as applicable, shall maintain original copies of such reports with manual signatures in accordance with NYSE Arca Rule 11.16(a).6 NYSE Arca Rule 4.5(d) currently requires OTP Holders and OTP Firms that do not carry or clear accounts for customers to file two manually signed copies of Part IIA of SEC Form X–17A– 5 with the Exchange on a quarterly basis. The Exchange proposes to amend NYSE Arca Rule 4.5(d) to provide that such reports shall be filed electronically with the Exchange, rather than manually, and that the OTP Holder or OTP Firm, as applicable, shall maintain original copies of such reports with manual signatures in accordance with NYSE Arca Rule 11.16(a).7 The Exchange proposes amending NYSE Arca Rule 4.5(c) and (d) to codify procedural changes that have been implemented by the Exchange and to be consistent with guidance that has been provided previously to OTP Holders and OTP Firms. III. Discussion After careful review and based on the Exchange’s representations, the Commission finds that the proposed rule changes are consistent with the Act and the rules and regulations applicable to a national securities exchange.8 In particular, the Commission finds that the proposed rule changes are consistent with Section 6(b)(5) 9 which requires, among other things, that the rules of a national securities exchange be 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 6 NYSE Arca Rule 11.16(a) provides that each OTP Holder and OTP Firm must make, keep current and preserve such books and records as the Exchange may prescribe and as may be prescribed by the Securities Exchange Act of 1934 (the ‘‘Exchange Act’’) and the rules and regulations thereunder (including any interpretation relating thereto) as though such OTP Holder or OTP Firm were a broker or dealer registered with the SEC pursuant to Section 15 of the Exchange Act. 7 Id. 8 In approving this proposed rule change, the Commission notes that it has considered the proposed rule’s impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). 9 15 U.S.C. 78f(b)(5). PO 00000 Frm 00077 Fmt 4703 Sfmt 4703 open market and a national market system. The Commission believes it is reasonable and consistent with the Act for the Exchange to amend NYSE Arca Rules 2.17 and 4.5(c) and (d) in order to simplify the administrative procedures that OTP Holders and OTP Firms must follow, given the fact that the Exchange believes that such amendments will not compromise the Exchange’s ability to regulate its OTP Holders and OTP Firms. IV. Conclusion It is therefore ordered, pursuant to Section 19(b)(2) of the Act,10 that the proposed rule change (SR–NYSEArca– 2006–83), as amended, be, and hereby is, approved. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.11 Florence E. Harmon, Deputy Secretary. [FR Doc. E8–736 Filed 1–16–08; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–57136; File No. SR– NYSEArca–2006–82] Self-Regulatory Organizations; NYSE Arca, Inc.; Order Granting Approval of Proposed Rule Changes Relating to Amendments to NYSE Arca Equities Rules 2.16 and 4.5 Relating to Certain ETP Holder Administrative Procedures January 11, 2008. I. Introduction On November 7, 2006, NYSE Arca, Inc. (‘‘NYSE Arca’’ or the ‘‘Exchange’’), through its wholly owned subsidiary NYSE Arca Equities, Inc. (‘‘NYSE Arca Equities’’ or the ‘‘Corporation’’), filed with the Securities and Exchange Commission (‘‘Commission’’ or ‘‘SEC’’), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Exchange Act’’) 1 and Rule 19b–4 thereunder,2 a proposal to amend its Rules 2.16 and 4.5 relating to certain ETP Holder administrative procedures. The proposed rule change was published for comment in the Federal Register on July 18, 2007.3 The Commission received no comments 10 15 U.S.C. 78s(b)(2). CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 See Securities Exchange Act Release No. 56057 (Jul. 12, 2007), 72 FR 39477. 11 17 E:\FR\FM\17JAN1.SGM 17JAN1

Agencies

[Federal Register Volume 73, Number 12 (Thursday, January 17, 2008)]
[Notices]
[Page 3304]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-736]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-57135; File No. SR-NYSEArca-2006-83]


Self-Regulatory Organizations; NYSE Arca, Inc.; Order Granting 
Approval of Proposed Rule Changes Relating to Amendments to NYSE Arca 
Rules 2.17 and 4.5 Relating to Certain OTP Holder and OTP Firm 
Administrative Procedures

January 11, 2008.

I. Introduction

    On November 7, 2006, NYSE Arca, Inc. (``NYSE Arca'' or the 
``Exchange'') filed with the Securities and Exchange Commission 
(``Commission'' or ``SEC''), pursuant to Section 19(b)(1) of the 
Securities Exchange Act of 1934 (``Exchange Act'') \1\ and Rule 19b-4 
thereunder,\2\ a proposal to amend its Rules 2.17 and 4.5 relating to 
certain OTP Holder and OTP Firm administrative procedures. The proposed 
rule change was published for comment in the Federal Register on July 
18, 2007.\3\ The Commission received no comments regarding the 
proposal. This order approves the proposed rule changes.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 56058 (Jul. 12, 
2007), 72 FR 39476.
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II. Description of the Proposal

    NYSE Arca Rule 2.17 currently provides that all Options Trading 
Permit (``OTP'') Firms \4\ must file their formation documents with the 
Exchange. The Exchange proposes to amend NYSE Arca Rule 2.17 in order 
to provide that only those OTP Firms for which the Exchange is the 
Designated Examining Authority must submit such formation documents to 
the Exchange.
---------------------------------------------------------------------------

    \4\ See NYSE Arca Rule 1.1(r).
---------------------------------------------------------------------------

    NYSE Arca Rule 4.5(c) currently requires OTP Holders \5\ and OTP 
Firms that carry or clear accounts for customers to file two manually 
signed copies of Part II of SEC Form X-17A-5 with the Exchange on a 
quarterly basis. The Exchange proposes to amend NYSE Arca Rule 4.5(c) 
to provide that such reports shall be filed electronically with the 
Exchange, rather than manually, and that the OTP Holder or OTP Firm, as 
applicable, shall maintain original copies of such reports with manual 
signatures in accordance with NYSE Arca Rule 11.16(a).\6\
---------------------------------------------------------------------------

    \5\ See NYSE Arca Rule 1.1(q).
    \6\ NYSE Arca Rule 11.16(a) provides that each OTP Holder and 
OTP Firm must make, keep current and preserve such books and records 
as the Exchange may prescribe and as may be prescribed by the 
Securities Exchange Act of 1934 (the ``Exchange Act'') and the rules 
and regulations thereunder (including any interpretation relating 
thereto) as though such OTP Holder or OTP Firm were a broker or 
dealer registered with the SEC pursuant to Section 15 of the 
Exchange Act.
---------------------------------------------------------------------------

    NYSE Arca Rule 4.5(d) currently requires OTP Holders and OTP Firms 
that do not carry or clear accounts for customers to file two manually 
signed copies of Part IIA of SEC Form X-17A-5 with the Exchange on a 
quarterly basis. The Exchange proposes to amend NYSE Arca Rule 4.5(d) 
to provide that such reports shall be filed electronically with the 
Exchange, rather than manually, and that the OTP Holder or OTP Firm, as 
applicable, shall maintain original copies of such reports with manual 
signatures in accordance with NYSE Arca Rule 11.16(a).\7\
---------------------------------------------------------------------------

    \7\ Id.
---------------------------------------------------------------------------

    The Exchange proposes amending NYSE Arca Rule 4.5(c) and (d) to 
codify procedural changes that have been implemented by the Exchange 
and to be consistent with guidance that has been provided previously to 
OTP Holders and OTP Firms.

III. Discussion

    After careful review and based on the Exchange's representations, 
the Commission finds that the proposed rule changes are consistent with 
the Act and the rules and regulations applicable to a national 
securities exchange.\8\ In particular, the Commission finds that the 
proposed rule changes are consistent with Section 6(b)(5) \9\ which 
requires, among other things, that the rules of a national securities 
exchange be 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.
---------------------------------------------------------------------------

    \8\ In approving this proposed rule change, the Commission notes 
that it has considered the proposed rule's impact on efficiency, 
competition, and capital formation. See 15 U.S.C. 78c(f).
    \9\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Commission believes it is reasonable and consistent with the 
Act for the Exchange to amend NYSE Arca Rules 2.17 and 4.5(c) and (d) 
in order to simplify the administrative procedures that OTP Holders and 
OTP Firms must follow, given the fact that the Exchange believes that 
such amendments will not compromise the Exchange's ability to regulate 
its OTP Holders and OTP Firms.

IV. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\10\ that the proposed rule change (SR-NYSEArca-2006-83), as 
amended, be, and hereby is, approved.
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    \10\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
Florence E. Harmon,
Deputy Secretary.
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    \11\ 17 CFR 200.30-3(a)(12).
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 [FR Doc. E8-736 Filed 1-16-08; 8:45 am]
BILLING CODE 8011-01-P