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, 3304-3305 [E8-737]

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 Federal Register / Vol. 73, No. 12 / Thursday, January 17, 2008 / Notices regarding the proposal. This order approves the proposed rule changes. II. Description of the Proposal NYSE Arca Equities Rule 2.16 currently provides that all Equity Trading Permit (‘‘ETP’’) Holders 4 must file their formation documents with the Corporation. The Exchange proposes to amend NYSE Arca Equities Rule 2.16 in order to provide that only those ETP Holders for which the Exchange is the Designated Examining Authority must submit such formation documents to the Corporation. NYSE Arca Equities Rule 4.5(b) currently requires ETP Holders that carry or clear accounts for customers to file two manually signed copies of Part II of SEC Form X–17A–5 with the Corporation on a quarterly basis. The Exchange proposes to amend NYSE Arca Equities Rule 4.5(b) to provide that such reports shall be filed electronically with the Corporation, rather than manually, and that the ETP Holder shall maintain original copies of such reports with manual signatures in accordance with NYSE Arca Equities Rule 2.24.5 NYSE Arca Equities Rule 4.5(c) currently requires ETP Holders 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 Corporation on a quarterly basis. The Exchange proposes to amend NYSE Arca Equities Rule 4.5(c) to provide that such reports shall be filed electronically with the Corporation, rather than manually, and that the ETP Holder shall maintain original copies of such reports with manual signatures in accordance with NYSE Arca Equities Rule 2.24.6 Finally, the Exchange proposes to amend paragraphs (b) and (c) of NYSE Arca Equities Rule 4.5 to codify procedural changes that have been implemented by the Exchange and to be consistent with guidance that has been provided previously to ETP Holders. III. Discussion After careful review and based on the Exchange’s representations, the Commission finds that the proposed rule changes are consistent with the requirements of the Act and the rules and regulations applicable to a national 4 See NYSE Arca Equities Rule 1.1(n). Arca Equities Rule 2.24 provides that each ETP Holder 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 ETP Holders were brokers or dealers registered with the SEC pursuant to Section 15 of the Exchange Act. 6 Id. mstockstill on PROD1PC66 with NOTICES 5 NYSE VerDate Aug<31>2005 17:07 Jan 16, 2008 Jkt 214001 securities exchange.7 In particular, the Commission finds that the proposed rule changes are consistent with Section 6(b)(5) 8 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. The Commission believes it is reasonable and consistent with the Act for the Exchange to amend NYSE Arca Equities Rules 2.16 and 4.5(b) and (c) in order to simplify the administrative procedures that ETP Holders must follow, given the fact that the Exchange believes that such amendments will not compromise the Exchange’s ability to regulate its ETP Holders. IV. Conclusion It is therefore ordered, pursuant to Section 19(b)(2) of the Act,9 that the proposed rule change (SR–NYSEArca– 2006–82), as amended, be, and hereby is, approved. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.10 Florence E. Harmon, Deputy Secretary. [FR Doc. E8–737 Filed 1–16–08; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–57122; File No. SR– NYSEArca–2008–02] Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to Exchange Fees and Charges January 10, 2008. 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 January 3, 2008, NYSE Arca, Inc. (‘‘NYSE Arca’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission 7 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). 8 15 U.S.C. 78f(b)(5). 9 15 U.S.C. 78s(b)(2). 10 17 CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. PO 00000 Frm 00078 Fmt 4703 Sfmt 4703 3305 (‘‘Commission’’) the proposed rule change as described in Items I, II and III below, which Items have been prepared substantially by the Exchange. NYSE Arca has designated this proposal as one establishing or changing a member due, fee, or other charge imposed by the Exchange under Section 19(b)(3)(A)(ii) of the Act 3 and Rule 19b–4(f)(2) 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 NYSE Arca is proposing to amend the existing Schedule of Fees and Charges for Exchange Services (‘‘Schedule’’) to remove the fee reference associated with a pilot program that offered a monthly cap on the Firm Facilitation Fee. The pilot program expired on December 31, 2007. The text of the proposed rule change is available at http:// www.nyse.com, the principal offices of the Exchange, and 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, 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. NYSE Arca has prepared summaries, set forth in Sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to amend its Schedule to reflect the termination of a pilot program under which OTP Firms are eligible for a monthly cap of $50,000 on Firm Facilitation Fees (‘‘Pilot’’). The Pilot was established as part of SR–NYSEArca–2007–93 5 and was in 3 15 U.S.C. 78s(b)(3)(A)(ii). CFR 240.19b–4(f)(2). 5 See Securities Exchange Act Release No. 56595 (October 1, 2007) 72 FR 57372 (October 9, 2007) (SR–NYSEArca–2007–93). In addition to the establishment of the Pilot Program capping monthly fees, SR–NYSEArca–2007–93 proposed other 4 17 E:\FR\FM\17JAN1.SGM Continued 17JAN1

Agencies

[Federal Register Volume 73, Number 12 (Thursday, January 17, 2008)]
[Notices]
[Pages 3304-3305]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-737]


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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

[[Page 3305]]

regarding the proposal. This order approves the proposed rule changes.
---------------------------------------------------------------------------

    \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.
---------------------------------------------------------------------------

II. Description of the Proposal

    NYSE Arca Equities Rule 2.16 currently provides that all Equity 
Trading Permit (``ETP'') Holders \4\ must file their formation 
documents with the Corporation. The Exchange proposes to amend NYSE 
Arca Equities Rule 2.16 in order to provide that only those ETP Holders 
for which the Exchange is the Designated Examining Authority must 
submit such formation documents to the Corporation.
---------------------------------------------------------------------------

    \4\ See NYSE Arca Equities Rule 1.1(n).
---------------------------------------------------------------------------

    NYSE Arca Equities Rule 4.5(b) currently requires ETP Holders that 
carry or clear accounts for customers to file two manually signed 
copies of Part II of SEC Form X-17A-5 with the Corporation on a 
quarterly basis. The Exchange proposes to amend NYSE Arca Equities Rule 
4.5(b) to provide that such reports shall be filed electronically with 
the Corporation, rather than manually, and that the ETP Holder shall 
maintain original copies of such reports with manual signatures in 
accordance with NYSE Arca Equities Rule 2.24.\5\
---------------------------------------------------------------------------

    \5\ NYSE Arca Equities Rule 2.24 provides that each ETP Holder 
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 ETP Holders were brokers or dealers 
registered with the SEC pursuant to Section 15 of the Exchange Act.
---------------------------------------------------------------------------

    NYSE Arca Equities Rule 4.5(c) currently requires ETP Holders 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 Corporation on a 
quarterly basis. The Exchange proposes to amend NYSE Arca Equities Rule 
4.5(c) to provide that such reports shall be filed electronically with 
the Corporation, rather than manually, and that the ETP Holder shall 
maintain original copies of such reports with manual signatures in 
accordance with NYSE Arca Equities Rule 2.24.\6\
---------------------------------------------------------------------------

    \6\ Id.
---------------------------------------------------------------------------

    Finally, the Exchange proposes to amend paragraphs (b) and (c) of 
NYSE Arca Equities Rule 4.5 to codify procedural changes that have been 
implemented by the Exchange and to be consistent with guidance that has 
been provided previously to ETP Holders.

III. Discussion

    After careful review and based on the Exchange's representations, 
the Commission finds that the proposed rule changes are consistent with 
the requirements of the Act and the rules and regulations applicable to 
a national securities exchange.\7\ In particular, the Commission finds 
that the proposed rule changes are consistent with Section 6(b)(5) \8\ 
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.
---------------------------------------------------------------------------

    \7\ 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).
    \8\ 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 Equities Rules 2.16 and 4.5(b) 
and (c) in order to simplify the administrative procedures that ETP 
Holders must follow, given the fact that the Exchange believes that 
such amendments will not compromise the Exchange's ability to regulate 
its ETP Holders.

IV. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\9\ that the proposed rule change (SR-NYSEArca-2006-82), as 
amended, be, and hereby is, approved.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
---------------------------------------------------------------------------

    \10\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8-737 Filed 1-16-08; 8:45 am]
BILLING CODE 8011-01-P