Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend NYSE Rules 13, 60, and 1000 To Allow for the Automatic Execution of G-Quotes in the Display Book, 4036-4038 [E8-1055]
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4036
Federal Register / Vol. 73, No. 15 / Wednesday, January 23, 2008 / Notices
Comments may be submitted by any of
the following methods:
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the objectives of Section 6 of the Act,7
in general, and furthers the objectives of
Section 6(b)(4) of the Act,8 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 proposed rule change does not
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 not solicited, and
does not intend to solicit, comments on
this proposed rule change. The
Exchange has not received any
unsolicited written comments from
members or other interested parties.
ebenthall on PROD1PC69 with NOTICES
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act 9 and Rule 19b–4(f)(2) 10
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 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.
U.S.C. 78f(b).
U.S.C. 78f(b)(4).
9 15 U.S.C. 78s(b)(3)(A).
10 17 CFR 240.19b–4(f)(2).
• 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
No. SR–ISE–2008–04 on the subject
line.
Paper Comments
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 December
24, 2007, the New York Stock Exchange
LLC (‘‘NYSE’’ or ‘‘Exchange’’) filed with
All submissions should refer to File
the Securities and Exchange
Commission (‘‘Commission’’) the
Number SR–ISE–2008–04. This file
proposed rule change as described in
number should be included on the
subject line if e-mail is used. To help the Items I, II, and III below, which Items
have been substantially prepared by the
Commission process and review your
NYSE. The proposed rule change has
comments more efficiently, please use
only one method. The Commission will been filed by the NYSE as effecting a
post all comments on the Commission’s change in an existing order-entry or
trading system pursuant to Section
Internet Web site (https://www.sec.gov/
19(b)(3)(A) of the Act,3 and Rule 19b–
rules/sro.shtml). Copies of the
4(f)(5) thereunder,4 which renders the
submission, all subsequent
proposal effective upon filing with the
amendments, all written statements
Commission. The Commission is
with respect to the proposed rule
publishing this notice to solicit
change that are filed with the
comments on the proposed rule change
Commission, and all written
from interested persons.
communications relating to the
I. Self-Regulatory Organization’s
proposed rule change between the
Commission and any person, other than Statement of the Terms of Substance of
the Proposed Rule Change
those that may be withheld from the
public in accordance with the
The NYSE proposes to amend NYSE
provisions of 5 U.S.C. 552, will be
Rules 13 and 1000 to allow for the
available for inspection and copying in
automatic execution of G-Quotes in the
the Commission’s Public Reference
Display Book (the ‘‘Display Book’’).
Room on official business days between The Exchange is also seeking to make
conforming changes to NYSE Rule 60.
the hours of 10 a.m. and 3 p.m. Copies
The text of the proposed rule change is
of such filing also will be available for
available on the Exchange’s Web site
inspection and copying at the principal
office of the ISE. All comments received (https://www.nyse.com), at the Exchange,
and at the Commission’s Public
will be posted without change; the
Reference Room.
Commission does not edit personal
identifying information from
II. Self-Regulatory Organization’s
submissions. You should submit only
Statement of the Purpose of, and
information that you wish to make
Statutory Basis for, the Proposed Rule
available publicly. All submissions
Change
should refer to File Number SR–ISE–
In its filing with the Commission, the
2008–04 and should be submitted on or
NYSE included statements concerning
before February 12, 2008.
the purpose of, and basis for, the
For the Commission, by the Division of
proposed rule change and discussed any
Trading and Markets, pursuant to delegated
comments it received on the proposed
authority.11
rule change. The text of these statements
may be examined at the places specified
Florence E. Harmon,
in Item IV below. The NYSE has
Deputy Secretary.
• Send paper comments in triplicate
to Nancy M. Morris, Secretary,
Securities and Exchange Commission,
Station Place, 100 F Street, NE.,
Washington, DC 20549–1090.
11 17
Jkt 214001
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Amend
NYSE Rules 13, 60, and 1000 To Allow
for the Automatic Execution of GQuotes in the Display Book
January 15, 2008.
BILLING CODE 8011–01–P
8 15
15:17 Jan 22, 2008
[Release No. 34–57156; File No. SR–NYSE–
2007–120]
[FR Doc. E8–1011 Filed 1–22–08; 8:45 am]
7 15
VerDate Aug<31>2005
SECURITIES AND EXCHANGE
COMMISSION
Electronic Comments
incur the 2008 annual renewal fee. In
effect, assessing the 2008 annual
renewal fee would penalize those
members that complied with the
Exchange’s registration requirements
more timely. The Exchange therefore
believes it is appropriate to waive the
2008 annual renewal fee for all
members.
PO 00000
Fmt 4703
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(5).
2 17
CFR 200.30–3(a)(12).
Frm 00116
1 15
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E:\FR\FM\23JAN1.SGM
23JAN1
Federal Register / Vol. 73, No. 15 / Wednesday, January 23, 2008 / Notices
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
NYSE Rules 1000 and 13 to allow for
the automatic execution of G-Quotes in
the Display Book.5 The Exchange is also
seeking to make conforming changes to
NYSE Rule 60.
ebenthall on PROD1PC69 with NOTICES
Background
An automatically executable (‘‘autoex’’) order is an order in a security,
other than a bond traded in NYSE
Bonds, that initiates an automatic
execution in accordance with and to the
extent provided by NYSE Rule 1000,
immediately upon entry into Exchange
systems. Currently, NYSE Rule 13 lists
the categories of auto-ex orders and
NYSE Rule 1000 permits automatic
execution of orders reflected in the
Exchange published quotation, orders
on the Book, Floor broker agency file
interest (‘‘e-Quotes’’), specialist interest
(‘‘s-Quotes’’), and CAP–DI orders. The
current rule does not include G-Quotes
as an order type eligible order for
automatic execution.
Section 11(a)(1) of the Act 6 generally
prohibits a member of a national
securities exchange from effecting
transactions on that exchange for its
own account, the account of an
associated person, or any account over
which it or an associated person
exercises discretion. Subsection (G) of
Section 11(a)(1) provides an exemption
allowing an exchange member to have
its own floor broker execute a
proprietary transaction (‘‘G order’’). A
G-Quote is an electronic method for
Floor brokers to represent G orders. G
orders on NYSE yield priority, parity
and precedence based on size to all
other non-G orders.
In current market conditions, if a GQuote hits the Display Book as a
marketable order, it is not eligible for
automatic execution. In order to execute
a marketable G-Quote once it is received
in the Display Book, the Display Book
5 The Display Book system is an order
management and execution facility. The Display
Book system receives and displays orders to the
specialists, contains the Book, and provides a
mechanism to execute and report transactions and
publish the results to the Consolidated Tape. The
Display Book system is connected to a number of
other Exchange systems for the purposes of
comparison, surveillance, and reporting
information to customers and other market data and
national market systems.
6 15 U.S.C. 78k(a)(1).
VerDate Aug<31>2005
15:17 Jan 22, 2008
Jkt 214001
in that security is converted to a slow
market to allow for manual execution of
the G-Quote. In other words, the receipt
of a marketable G-Quote suspends autoexecution of the Display Book until it is
manually traded out of the Display
Book. In order to reduce the amount of
times that the Exchange must set their
markets slow, the Exchange is seeking
this rule change to add G-Quotes as an
order eligible for automatic execution in
order to maintain optimum market
conditions and prevent further
temporary disruptions in the flow of the
market by having it go ‘‘slow’’ when a
marketable G-Quote hits the Book.
Accordingly, the Exchange seeks to
amend NYSE Rule 1000 and NYSE Rule
13 to add G-Quotes as automatically
executable orders. Aside from now
being automatically executed, G-Quotes
will be executed in the same manner as
they are today, i.e., they still must yield
priority, parity and precedence to all
other non-G orders.
The Exchange also seeks to amend
NYSE Rule 1000 to make G-Quotes
eligible for sweeps following existing
rules for sweeps. Specifically, during a
sweep, the unfilled balance (‘‘residual’’)
of an automatically executing order that
is not filled in its entirety due to the
volume available in the Exchange best
bid and offer, may trade with broker
proprietary interest files on the Book
capable of execution in accordance with
Exchange Rules, at each successive
price lower than the displayed bid (in
the case of a sweeping sell order) or
higher than the displayed offer (in the
case of a sweeping buy order) as long as
the sweep continues.
The Exchange further seeks to make
conforming changes to NYSE Rule 60 to
provide that the Exchange will
autoquote the NYSE’s highest bid or
lowest offer to reflect G-Quotes. The
Exchange notes that in all situations
discussed above, the G-Quote will trade
as the last interest at a price point,
yielding priority, parity and precedence
to all other non-G orders.7
2. Statutory Basis
The Exchange believes that the basis
under the Act is the requirement under
Section 6(b)(5) that an exchange have
rules that are designed to promote just
and equitable principles of trade, to
remove impediments to and perfect the
7 Telephone conference among Daniel Labovitz,
Managing Director, NYSE Regulation, Inc.; Deanna
G. W. Logan, Associate General Counsel, NYSE;
Jennifer D. Kim, Counsel, NYSE; Richard Holley,
Senior Special Counsel, Division of Trading and
Markets (‘‘Division’’), Commission; Nathan
Saunders, Special Counsel, Division, Commission;
and Jan Woo, Special Counsel, Division,
Commission, on January 10, 2008.
PO 00000
Frm 00117
Fmt 4703
Sfmt 4703
4037
mechanism of a free and open market
and a national market system and, in
general, 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
Because the foregoing proposed rule
change effects a change in an existing
order entry or trading system that (i)
does not significantly affect the
protection of investors or the public
interest; (ii) does not impose any
significant burden on competition; and
(iii) does not have the effect of limiting
access to or availability of the system, it
has become effective pursuant to
Section 19(b)(3)(A)(iii) of the Act 8 and
Rule 19b–4(f)(5) 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 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–2007–120 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Nancy M. Morris, Secretary,
8 15
9 17
E:\FR\FM\23JAN1.SGM
U.S.C. 78s(b)(3)(A)(iii).
CFR 19b–4(f)(5).
23JAN1
4038
Federal Register / Vol. 73, No. 15 / Wednesday, January 23, 2008 / Notices
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
All submissions should refer to File
Number SR–NYSE–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 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–2007–120 and
should be submitted on or before
February 13, 2008.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8–1055 Filed 1–22–08; 8:45 am]
SECURITIES AND EXCHANGE
COMMISSION
ebenthall on PROD1PC69 with NOTICES
[Release No. 34–57155; File No. SR–Phlx–
2008–02]
Self-Regulatory Organizations;
Philadelphia Stock Exchange, Inc.;
Notice of Filing of Proposed Rule
Change To Amend By-Law Article XIV,
Section 14–5 and Phlx Rule 50
Pursuant to section 19(b)(1) of the
Securities Exchange Act of 1934
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to: (i) Modify
the timeframes within which monies
owed to the Exchange would become
reportable to the Board of Governors
(‘‘Board’’) for further action; (ii)
eliminate references to the monetary
threshold of $10,000; (iii) conform ByLaw language to indicate that Members,
Member Organizations, participants,
and participant organizations would be
subject to being terminated for failure to
pay; and (iv) make other clarifying
amendments. The text of the proposed
rule change is available at Phlx, the
Commission’s Public Reference Room,
and https://www.phlx.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,
Phlx 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. Phlx 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
BILLING CODE 8011–01–P
January 15, 2008.
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on January 8,
2008, the Philadelphia Stock Exchange,
Inc. (‘‘Phlx’’ or ‘‘Exchange’’) filed with
the Securities and Exchange
Commission (‘‘Commission’’) a
proposed rule change as described in
Items I, II, and III below, which Items
have been substantially prepared by
Phlx. The Commission is publishing
this notice to solicit comments on the
proposed rule change from interested
persons.
1. Purpose
The purpose of the proposed rule
change is to amend the language in Phlx
By-Law Article XIV, section 14–5 and
Exchange Rule 50 to bolster the
Exchange’s procedures regarding
collection of monies owed to the
Exchange.
The proposed rule change modifies
the timeframes within which monies
owed to the Exchange would become
reportable to the Board, and by which
1 15
10 17
CFR 200.30–3(a)(12).
VerDate Aug<31>2005
15:17 Jan 22, 2008
2 17
Jkt 214001
PO 00000
U.S.C. 78s(b)(1).
CFR 240.19b–4.
Frm 00118
Fmt 4703
Sfmt 4703
Members, Member Organizations,
participants, and participant
organizations would be subject to a
suspension or termination. The
proposed rule change also defines the
types of fees subject to each timeframe.
Specifically, the previous time
limitations of 50 days from the original
invoice for certain monies and 20 days
for other categories of monies would be
removed from By-Law Article XIV,
Section 14–5 and the time limitations in
Exchange Rule 50 would be amended.
The 50 day timeframe applied to dues,
foreign currency options users’ fees,
fees, other charges and other monies
due and owed to the Exchange. The 20
day timeframe applied to fines and
other monetary sanctions.
Under this proposal, a Member, or
Member Organization, participant, or
participant organization or employee
thereof shall be referred to the Board for
failure to: (i) Pay fines and/or other
monetary sanctions within 30 days after
notice thereof; or (ii) pay dues, foreign
currency options users’ fees, fees, other
charges, and/or other monies due,
including late charges, within 90 days
from the date of the original invoice.
These timeframes would be amended in
Rule 50 and deleted from By-Law
Article XIV, section 14–5, rather than
appear in both Rule 50 and By-Law
Article XIV, section 14–5. The purpose
of amending these timeframes is to
conform to the Exchange’s current
accounting and billing cycles and to
allow a reasonable time for payment of
invoices prior to the necessity to report
a past due amount to the Board for
further action.
In addition, this proposed rule change
would eliminate the references to the
monetary threshold of $10,000 from
both By-Law Article XIV, section 14–5
and Rule 50, so that all past due
amounts are reportable to the Board
within the specified proposed new
timeframes. The requirement to report
to the Finance Committee is proposed to
be eliminated from Rule 50. Both of
these changes are intended to direct
collection matters to the Board directly
and without regard to the amount, in
order to enhance the immediacy of the
Exchange’s collection efforts.
The word ‘‘terminate’’ is proposed to
be added to By-Law Article XIV, section
14–5 to conform with the termination
language in By-Law Article XIV, section
14–1. By-Law Article XIV, section 14–1
currently provides that the Board shall
have the power to establish and assess
penalties and late charges for failure to
pay any fees, dues, or charges owed to
the Exchange, including, without
limitation, termination of a permit or
participation (which permit or
E:\FR\FM\23JAN1.SGM
23JAN1
]]>Agencies
[Federal Register Volume 73, Number 15 (Wednesday, January 23, 2008)]
[Notices]
[Pages 4036-4038]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-1055]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-57156; File No. SR-NYSE-2007-120]
Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Amend NYSE Rules 13, 60, and 1000 To Allow for the Automatic Execution
of G-Quotes in the Display Book
January 15, 2008.
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 December 24, 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 proposed rule change has been filed by the NYSE as effecting
a change in an existing order-entry or trading system 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 NYSE proposes to amend NYSE Rules 13 and 1000 to allow for the
automatic execution of G-Quotes in the Display Book[supreg] (the
``Display Book''). The Exchange is also seeking to make conforming
changes to NYSE Rule 60. The text of the proposed rule change is
available on the Exchange's Web site (https://www.nyse.com), at the
Exchange, 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, the 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 NYSE has
[[Page 4037]]
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 NYSE Rules 1000 and 13 to allow for
the automatic execution of G-Quotes in the Display Book.\5\ The
Exchange is also seeking to make conforming changes to NYSE Rule 60.
---------------------------------------------------------------------------
\5\ The Display Book[supreg] system is an order management and
execution facility. The Display Book system receives and displays
orders to the specialists, contains the Book, and provides a
mechanism to execute and report transactions and publish the results
to the Consolidated Tape. The Display Book system is connected to a
number of other Exchange systems for the purposes of comparison,
surveillance, and reporting information to customers and other
market data and national market systems.
---------------------------------------------------------------------------
Background
An automatically executable (``auto-ex'') order is an order in a
security, other than a bond traded in NYSE Bonds, that initiates an
automatic execution in accordance with and to the extent provided by
NYSE Rule 1000, immediately upon entry into Exchange systems.
Currently, NYSE Rule 13 lists the categories of auto-ex orders and NYSE
Rule 1000 permits automatic execution of orders reflected in the
Exchange published quotation, orders on the Book, Floor broker agency
file interest (``e-Quotes''), specialist interest (``s-Quotes''), and
CAP-DI orders. The current rule does not include G-Quotes as an order
type eligible order for automatic execution.
Section 11(a)(1) of the Act \6\ generally prohibits a member of a
national securities exchange from effecting transactions on that
exchange for its own account, the account of an associated person, or
any account over which it or an associated person exercises discretion.
Subsection (G) of Section 11(a)(1) provides an exemption allowing an
exchange member to have its own floor broker execute a proprietary
transaction (``G order''). A G-Quote is an electronic method for Floor
brokers to represent G orders. G orders on NYSE yield priority, parity
and precedence based on size to all other non-G orders.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78k(a)(1).
---------------------------------------------------------------------------
In current market conditions, if a G-Quote hits the Display Book as
a marketable order, it is not eligible for automatic execution. In
order to execute a marketable G-Quote once it is received in the
Display Book, the Display Book in that security is converted to a slow
market to allow for manual execution of the G-Quote. In other words,
the receipt of a marketable G-Quote suspends auto-execution of the
Display Book until it is manually traded out of the Display Book. In
order to reduce the amount of times that the Exchange must set their
markets slow, the Exchange is seeking this rule change to add G-Quotes
as an order eligible for automatic execution in order to maintain
optimum market conditions and prevent further temporary disruptions in
the flow of the market by having it go ``slow'' when a marketable G-
Quote hits the Book. Accordingly, the Exchange seeks to amend NYSE Rule
1000 and NYSE Rule 13 to add G-Quotes as automatically executable
orders. Aside from now being automatically executed, G-Quotes will be
executed in the same manner as they are today, i.e., they still must
yield priority, parity and precedence to all other non-G orders.
The Exchange also seeks to amend NYSE Rule 1000 to make G-Quotes
eligible for sweeps following existing rules for sweeps. Specifically,
during a sweep, the unfilled balance (``residual'') of an automatically
executing order that is not filled in its entirety due to the volume
available in the Exchange best bid and offer, may trade with broker
proprietary interest files on the Book capable of execution in
accordance with Exchange Rules, at each successive price lower than the
displayed bid (in the case of a sweeping sell order) or higher than the
displayed offer (in the case of a sweeping buy order) as long as the
sweep continues.
The Exchange further seeks to make conforming changes to NYSE Rule
60 to provide that the Exchange will autoquote the NYSE's highest bid
or lowest offer to reflect G-Quotes. The Exchange notes that in all
situations discussed above, the G-Quote will trade as the last interest
at a price point, yielding priority, parity and precedence to all other
non-G orders.\7\
---------------------------------------------------------------------------
\7\ Telephone conference among Daniel Labovitz, Managing
Director, NYSE Regulation, Inc.; Deanna G. W. Logan, Associate
General Counsel, NYSE; Jennifer D. Kim, Counsel, NYSE; Richard
Holley, Senior Special Counsel, Division of Trading and Markets
(``Division''), Commission; Nathan Saunders, Special Counsel,
Division, Commission; and Jan Woo, Special Counsel, Division,
Commission, on January 10, 2008.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that the basis under the Act is the
requirement under Section 6(b)(5) that an exchange have rules that are
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.
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 that (i) does not significantly
affect the protection of investors or the public interest; (ii) does
not impose any significant burden on competition; and (iii) does not
have the effect of limiting access to or availability of the system, it
has become effective pursuant to Section 19(b)(3)(A)(iii) of the Act
\8\ and Rule 19b-4(f)(5) thereunder.\9\
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\8\ 15 U.S.C. 78s(b)(3)(A)(iii).
\9\ 17 CFR 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-2007-120 on the subject line.
Paper Comments
Send paper comments in triplicate to Nancy M. Morris,
Secretary,
[[Page 4038]]
Securities and Exchange Commission, 100 F Street, NE., Washington, DC
20549-1090.
All submissions should refer to File Number SR-NYSE-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 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-2007-120 and should be
submitted on or before February 13, 2008.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
Florence E. Harmon,
Deputy Secretary.
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\10\ 17 CFR 200.30-3(a)(12).
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[FR Doc. E8-1055 Filed 1-22-08; 8:45 am]
BILLING CODE 8011-01-P
