Self-Regulatory Organizations; New York Stock Exchange LLC; Order Approving Proposed Rule Change, as Modified by Amendment No. 1 Thereto, To Reduce From Six Months to Three Months the Period for Which a Company's Average Global Market Capitalization Must Exceed the Levels Established by the Exchange's Pure Valuation/Revenue Test, 7021-7022 [E8-2073]
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Federal Register / Vol. 73, No. 25 / Wednesday, February 6, 2008 / Notices
Exchange proposes to implement these
changes on January 2, 2008.
The Exchange proposes to restructure
its Schedule of Fees and allocation of
market data rebates to provide Equity
Electronic Access Members (‘‘Equity
EAMs’’) that submit equity orders an
efficient method of calculating the exact
cost of trading on the ISE Stock
Exchange. Specifically, rather than
providing these Equity EAMs with a
lump sum market data rebate every
quarter, the Exchange proposes to
increase the rebate for execution of
equity orders that provide liquidity from
$0.0025 to $0.0032 for securities that
trade at or above $1.00. This change will
allow Equity EAMs to perform a precise
cost benefit analysis in determining
where to route their order flow.
The Exchange proposes to increase
the rebate for the execution of equity
orders submitted on an order delivery
basis that provide liquidity from
$0.0025 to $0.0027 for securities that
trade at or above $1.00, but to leave the
allocation of market data rebates the
same for these orders. The Exchange has
determined that increasing the maker
rebate, discussed above, and continuing
to rebate 50% of its quote and trade
revenue to Order Delivery Equity EAMs
is necessary for competitive reasons,
particularly in light of the fact that other
markets have similar maker rebates and
provisions in their market data revenue
rebate program.6
The Exchange believes that these fee
changes will not impair its ability to
carry out its regulatory responsibilities.
Furthermore, the Exchange intends that
this rule change will not have an overall
effect on the amounts rebated to Equity
EAMs, except that payments will occur
on a monthly instead of quarterly basis.
The monies rebated to Order Delivery
Equity EAMs on a quarterly basis
remain unchanged.
pwalker on PROD1PC71 with NOTICES
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the objectives of section 6(b) of the Act,7
in general, and furthers the objectives of
section 6(b)(4),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
issuers and other persons using its
facilities.
6 See
Securities Exchange Act Release No. 56890
(December 4, 2007), 72 FR 70360 (December 11,
2007) (SR–NSX–2007–13).
7 15 U.S.C. 78f(b).
8 15 U.S.C. 78f(b)(4).
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18:21 Feb 05, 2008
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B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange believes that 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 interested parties.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing proposed rule change
has become effective upon filing with
the Commission pursuant to section
19(b)(3)(A)(ii) of the Act 9 and Rule 19b–
4(f)(2) 10 thereunder, because it
establishes or changes a due, fee, or
other charge applicable only to a
member.
At any time within 60 days of the
filing of the proposed rule change, the
Commission may summarily abrogate
such rule change if it appears to the
Commission that such action is
necessary or appropriate in the public
interest, for the protection of investors,
or otherwise in furtherance of the
purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–ISE–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–ISE–2007–124. This file
9 15
U.S.C. 78s(b)(3)(A)(ii).
CFR 240.19b–4(f)(2).
10 17
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Fmt 4703
Sfmt 4703
7021
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 ISE. 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–ISE–2007–124 and should
be submitted on or before February 27,
2008.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8–2124 Filed 2–5–08; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–57239; File No. SR–NYSE–
2007–98]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Order
Approving Proposed Rule Change, as
Modified by Amendment No. 1 Thereto,
To Reduce From Six Months to Three
Months the Period for Which a
Company’s Average Global Market
Capitalization Must Exceed the Levels
Established by the Exchange’s Pure
Valuation/Revenue Test
January 30, 2008.
I. Introduction
On October 29, 2007, the New York
Stock Exchange LLC (‘‘NYSE’’ or
11 17
E:\FR\FM\06FEN1.SGM
CFR 200.30–3(a)(12).
06FEN1
7022
Federal Register / Vol. 73, No. 25 / Wednesday, February 6, 2008 / Notices
‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’), pursuant to Section
19(b)(1) of the Securities Exchange Act
of 1934 (‘‘Act’’) 1 and Rule 19b–4
thereunder,2 a proposed rule change to
reduce from six months to three months
the period for which the average global
market capitalization of companies
seeking to list on the Exchange must
exceed the levels established by the
Exchange’s ‘‘pure valuation/revenue’’
test contained in Section 102.01C of the
Exchange’s Listed Company Manual
(the ‘‘Manual’’). On December 14, 2007,
the Exchange filed Amendment No. 1 to
the proposed rule change. The proposed
rule change, as modified by Amendment
No. 1, was published for comment in
the Federal Registeron December 26,
2007.3 The Commission received no
comments on the proposal. This order
approves the proposed rule change, as
amended.
pwalker on PROD1PC71 with NOTICES
II. Description of the Proposal
Section 102.01C of the Exchange’s
Manual requires companies listing
under the Exchange’s ‘‘pure valuation/
revenue’’ test to have a global market
capitalization of $750 million. In the
case of companies listing other than in
connection with an initial public
offering or a spin-off or upon emergence
from bankruptcy, Section 102.01C
provides that the market capitalization
valuation will be determined on the
basis of a six-month average.
The Exchange now proposes to reduce
from six months to three months the
period over which prospective
companies seeking to list on the
Exchange must have had an average
global market capitalization that meets
the required level of $750 million. In
addition, the Exchange proposes to
amend the rule to specify that in
considering the suitability for listing of
a company pursuant to this standard,
the Exchange will consider whether the
company’s business prospects and
operating results indicate that the
company’s market capitalization value
is likely to be sustained or increase over
time.
III. Discussion
After careful review, the Commission
finds that the proposed rule change, as
amended, is consistent with the
requirements of the Act and the rules
and regulations thereunder applicable to
a national securities exchange and, in
particular, with Section 6(b)(5) of the
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 See Securities Exchange Act Release No. 56976
(December 17, 2007), 72 FR 73055.
2 17
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18:21 Feb 05, 2008
Jkt 214001
Act,4 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 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.5
The Commission notes that the
proposed rule change does not change
the quantitative global market
capitalization requirement under the
Exchange’s ‘‘pure valuation/revenue’’
test. This requirement will remain at
$750 million global market
capitalization. Rather, the Exchange is
shortening the time period over which
the average global market capitalization
of a prospective listed company must
meet this level. The Commission notes
that the proposed rule change requires
the Exchange to look not only at the
average three month market
capitalization of the company but to
also consider whether the company’s
market capitalization is likely to be
sustained or increase over time based on
the company’s business prospects and
operation results. The Commission
therefore believes that the proposed rule
change may allow the earlier listing of
companies, but at the same time, it is
designed to ensure that the Exchange
does not list companies on the basis of
a market capitalization valuation that is
unlikely to be sustained. In this regard,
the Commission expects that the
Exchange will scrutinize companies to
ensure that it will only list companies
that should be able to continue to meet
the market capitalization standard.
IV. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,6 that the
proposed rule change (SR–NYSE–2007–
98), as modified by Amendment No. 1,
be, and hereby is, approved.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.7
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8–2073 Filed 2–5–08; 8:45 am]
BILLING CODE 8011–01–P
4 15
U.S.C. 78f(b)(5).
approving this proposed rule change, the
Commission has considered the proposed rule’s
impact on efficiency, competition, and capital
formation. See 15 U.S.C. 78c(f).
6 15 U.S.C. 78s(b)(2).
7 17 CFR 200.30–3(a)(12).
5 In
PO 00000
Frm 00103
Fmt 4703
Sfmt 4703
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–57236; File No. SR–NYSE–
2008–03]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing of Proposed Rule Change to
Rescind Rule 97 (Limitation on
Member’s Trading Because of Block
Positioning)
January 30, 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
11, 2008, 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
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
NYSE proposes to rescind NYSE Rule
97 (Limitation on Member’s Trading
Because of Block Positioning). The text
of the proposed rule change is available
at NYSE, the Commission’s Public
Reference Room, and https://
www.nyse.com.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
NYSE included statements concerning
the purpose of, and basis for, the
proposed rule change. 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
Through this filing, the Exchange
seeks to rescind Exchange Rule 97.
Exchange Rule 97 prevents a member
organization that holds a long position
in a security that resulted from a block
transaction with a customer from
1 15
2 17
E:\FR\FM\06FEN1.SGM
U.S.C. 78s(b)(1).
CFR 240.19b–4.
06FEN1
]]>Agencies
[Federal Register Volume 73, Number 25 (Wednesday, February 6, 2008)]
[Notices]
[Pages 7021-7022]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-2073]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-57239; File No. SR-NYSE-2007-98]
Self-Regulatory Organizations; New York Stock Exchange LLC; Order
Approving Proposed Rule Change, as Modified by Amendment No. 1 Thereto,
To Reduce From Six Months to Three Months the Period for Which a
Company's Average Global Market Capitalization Must Exceed the Levels
Established by the Exchange's Pure Valuation/Revenue Test
January 30, 2008.
I. Introduction
On October 29, 2007, the New York Stock Exchange LLC (``NYSE'' or
[[Page 7022]]
``Exchange'') filed with the Securities and Exchange Commission
(``Commission''), pursuant to Section 19(b)(1) of the Securities
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a
proposed rule change to reduce from six months to three months the
period for which the average global market capitalization of companies
seeking to list on the Exchange must exceed the levels established by
the Exchange's ``pure valuation/revenue'' test contained in Section
102.01C of the Exchange's Listed Company Manual (the ``Manual''). On
December 14, 2007, the Exchange filed Amendment No. 1 to the proposed
rule change. The proposed rule change, as modified by Amendment No. 1,
was published for comment in the Federal Registeron December 26,
2007.\3\ The Commission received no comments on the proposal. This
order approves the proposed rule change, as amended.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ See Securities Exchange Act Release No. 56976 (December 17,
2007), 72 FR 73055.
---------------------------------------------------------------------------
II. Description of the Proposal
Section 102.01C of the Exchange's Manual requires companies listing
under the Exchange's ``pure valuation/revenue'' test to have a global
market capitalization of $750 million. In the case of companies listing
other than in connection with an initial public offering or a spin-off
or upon emergence from bankruptcy, Section 102.01C provides that the
market capitalization valuation will be determined on the basis of a
six-month average.
The Exchange now proposes to reduce from six months to three months
the period over which prospective companies seeking to list on the
Exchange must have had an average global market capitalization that
meets the required level of $750 million. In addition, the Exchange
proposes to amend the rule to specify that in considering the
suitability for listing of a company pursuant to this standard, the
Exchange will consider whether the company's business prospects and
operating results indicate that the company's market capitalization
value is likely to be sustained or increase over time.
III. Discussion
After careful review, the Commission finds that the proposed rule
change, as amended, is consistent with the requirements of the Act and
the rules and regulations thereunder applicable to a national
securities exchange and, in particular, with Section 6(b)(5) of the
Act,\4\ 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 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.\5\
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78f(b)(5).
\5\ In approving this proposed rule change, the Commission has
considered the proposed rule's impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
---------------------------------------------------------------------------
The Commission notes that the proposed rule change does not change
the quantitative global market capitalization requirement under the
Exchange's ``pure valuation/revenue'' test. This requirement will
remain at $750 million global market capitalization. Rather, the
Exchange is shortening the time period over which the average global
market capitalization of a prospective listed company must meet this
level. The Commission notes that the proposed rule change requires the
Exchange to look not only at the average three month market
capitalization of the company but to also consider whether the
company's market capitalization is likely to be sustained or increase
over time based on the company's business prospects and operation
results. The Commission therefore believes that the proposed rule
change may allow the earlier listing of companies, but at the same
time, it is designed to ensure that the Exchange does not list
companies on the basis of a market capitalization valuation that is
unlikely to be sustained. In this regard, the Commission expects that
the Exchange will scrutinize companies to ensure that it will only list
companies that should be able to continue to meet the market
capitalization standard.
IV. Conclusion
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\6\ that the proposed rule change (SR-NYSE-2007-98), as modified by
Amendment No. 1, be, and hereby is, approved.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78s(b)(2).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\7\
---------------------------------------------------------------------------
\7\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8-2073 Filed 2-5-08; 8:45 am]
BILLING CODE 8011-01-P
