Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rule 7.31 To Modify the Primary Only Order Type, 11177-11178 [E8-3890]
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Federal Register / Vol. 73, No. 41 / Friday, February 29, 2008 / Notices
submissions should refer to File
Number SR–NYSEArca–2008–17 and
should be submitted on or before March
21, 2008.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.34
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8–3844 Filed 2–28–08; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–57377; File No. SR–NYSE
Arca–2008–19]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend Rule 7.31 To
Modify the Primary Only Order Type
February 25, 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 February
13, 2008, NYSE Arca, Inc. (‘‘NYSE
Arca’’ or ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
substantially by NYSE Arca. NYSE Arca
filed the proposed rule change as a
‘‘non-controversial’’ proposed rule
change pursuant to section 19(b)(3)(A)
of the Act 3 and Rule 19b–4(f)(6)
thereunder,4 which renders it 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
rwilkins on PROD1PC63 with NOTICES
NYSE Arca proposes to amend Rule
7.31(x) in order to modify the
permissible order entry time and
eligibility of its Primary Only Order
(‘‘PO Order’’). The text of the proposed
rule change is available at NYSE Arca,
the Commission’s Public Reference
Room, and https://www.nyse.com.
CFR 200.30–3(a)(12).
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)(6).
1 15
19:22 Feb 28, 2008
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 Arca Equities rule 7.31(x) to
modify the operability and eligibility of
PO Orders in order to provide
additional flexibility and increased
functionality to its system and its
Users.5
The PO Order is a market or limit
order that is routed to the primary,
listing market, without sweeping the
NYSE Arca book.6 PO Orders may be
entered until a cut-off time as
determined from time to time by the
Corporation. Presently, the Exchange
restricts PO Orders to participation in
the primary, listing market opening. In
an effort to enhance order execution
opportunities for its Users, the Exchange
proposes to modify the PO Order type
so that they may be entered at any time
and to offer an order modifier for Users
to designate PO Orders that are eligible
for entry and execution throughout the
trading day.
According to the proposal, a PO Order
may be entered at any time 7; and will
be immediately routed to the primary,
listing market for execution. If the order
is not IOC, the order is not returned to
the NYSE Arca book; rather it remains
at the venue routed to, until executed or
cancelled that day. In instances where a
symbol is halted, the PO Order will
remain at the primary, listing market
until such time that it is cancelled or the
symbol is re-opened. PO Orders eligible
for participation in the primary, listing
market’s opening must be entered before
6:28 a.m. (Pacific Time). A PO Order
entered for participation in the primary,
listing market re-opening after a trading
halt must be entered after trading was
5 See NYSE Arca Rule 1.1(yy) for the definition
of ‘‘User.’’
6 NYSE Arca Rule 7.31(x).
7 Users would be able to enter PO Orders into the
system for execution during any of the Exchange’s
trading sessions (Opening, Core and Late Sessions).
34 17
VerDate Aug<31>2005
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 Arca 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.
NYSE Arca has prepared summaries, set
forth in sections A, B, and C below, of
the most significant aspects of such
statements.
Jkt 214001
PO 00000
Frm 00090
Fmt 4703
Sfmt 4703
11177
halted on the Corporation and before the
Re-Opening Time. Otherwise, PO
Orders eligible for participation in the
primary, listing market at all other times
must be marked with the modifier: PO+.
The proposed changes to the PO
Order type will provide additional
flexibility and functionality to the
Exchange’s system and its Users that
wish to use the system to comply with
their obligations to avoid trading
through any Protected Quotation within
the meaning of Rule 600(b)(58) of
Regulation NMS.8 PO Orders may be
designated as intermarket sweep orders
thereby providing the entering party the
ability to trade-through any protected
bid or offer (as defined in Rule 600(b)
of Regulation NMS under the Act) and
to execute at the primary, listing market.
Of course, a broker-dealer that
designates an order as an intermarket
sweep order has the responsibility of
complying with Rules 610 and 611 of
Regulation NMS.
The Exchange believes that the
proposed clarification and additional
modifier will enhance flexibility and
order execution opportunities for its
Users. The Exchange also believes that
the proposed amendments will also
allow its Users to comply with their
obligation to avoid trading through any
protected bid or offer within the
meaning of Rule 600(b) of Regulation
NMS. In addition, the Exchange believes
that the proposed functionality is
substantially similar to the ‘‘Directed
Orders’’ presently offered by The
NASDAQ Stock Market LLC
(‘‘Nasdaq’’).9
2. Statutory Basis
The proposed rule change is
consistent with the provisions of section
6 of the Act,10 in general, and with
sections 6(b)(1) and (b)(5) of the Act,11
in particular, in that the proposal 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
NYSE Arca does not believe that the
proposed rule change will impose any
8 17
CFR 242.600(b)(58).
Securities Exchange Act Release No. 55405
(March 6, 2007), 72 FR 11069 (March 12, 2007) (SR–
NASDAQ–2007–020).
10 15 U.S.C. 78f.
11 15 U.S.C. 78f(b)(1) and (b)(5).
9 See
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11178
Federal Register / Vol. 73, No. 41 / Friday, February 29, 2008 / Notices
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
Written comments were neither
solicited nor received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule
change does not: (i) Significantly affect
the protection of investors or the public
interest; (ii) impose any significant
burden on competition; and (iii) become
operative for 30 days from the date on
which it was filed, or such shorter time
as the Commission may designate, it has
become effective pursuant to section
19(b)(3)(A) of the Act 12 and Rule 19b–
4(f)(6) thereunder.13
A proposed rule change filed under
19b–4(f)(6) normally may not become
operative prior to 30 days after the date
of filing.14 However, Rule 19b–
4(f)(6)(iii) 15 permits the Commission to
designate a shorter time if such action
is consistent with the protection of
investors and the public interest. The
Exchange has requested that the
Commission waive the 30-day operative
delay. The Commission believes that
waiving the 30-day operative delay is
consistent with the protection of
investors and the public interest.16 The
Commission hereby grants the
Exchange’s request and designates the
proposal as operative upon filing.
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
12 15
U.S.C. 78s(b)(3)(A).
240.19b–4(f)(6).
14 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires a self-regulatory organization to
give the Commission written notice of its intent to
file the proposed rule change at least five business
days prior to the date of filing of the proposed rule
change, or such shorter time as designated by the
Commission. NYSE Arca has complied with this
requirement.
15 Id.
16 For purposes only of waiving the 30-day
operative delay of this proposal, the Commission
has considered the proposed rule’s impact on
efficiency, competition, and capital formation. 15
U.S.C. 78c(f).
rwilkins on PROD1PC63 with NOTICES
13 CFR
VerDate Aug<31>2005
19:22 Feb 28, 2008
Jkt 214001
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:
SECURITIES AND EXCHANGE
COMMISSION
Electronic Comments
burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act.
Self-Regulatory Organizations;
Philadelphia Stock Exchange, Inc.;
Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change To Create a Delta Hedging
Exemption From Equity Options
Position Limits
• 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–NYSEArca–2008–19 on the
subject line.
[Release No. 34–57359; File No. SR–Phlx–
2008–07]
February 20, 2008.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
• Send paper comments in triplicate
notice is hereby given that on February
to Nancy M. Morris, Secretary,
12, 2008, the Philadelphia Stock
Securities and Exchange Commission,
Exchange, Inc. (‘‘Phlx’’ or ‘‘Exchange’’)
Station Place, 100 F Street, NE.,
filed with the Securities and Exchange
Washington, DC 20549–1090.
Commission (‘‘Commission’’) the
All submissions should refer to File
proposed rule change as described in
Number SR–NYSEArca–2008–19. This
Items I and II below, which Items have
file number should be included on the
been substantially prepared by Phlx.
subject line if e-mail is used. To help the The Exchange has filed the proposal as
Commission process and review your
a ‘‘non-controversial’’ rule change
comments more efficiently, please use
pursuant to Section 19(b)(3)(A) of the
only one method. The Commission will Act 3 and Rule 19b–4(f)(6) thereunder,4
post all comments on the Commission’s which renders it effective upon filing
Internet Web site (https://www.sec.gov/
with the Commission. The Commission
rules/sro.shtml). Copies of the
is publishing this notice to solicit
submission, all subsequent
comments on the proposed rule change
amendments, all written statements
from interested persons.
with respect to the proposed rule
I. Self-Regulatory Organization’s
change that are filed with the
Statement of the Terms of Substance of
Commission, and all written
the Proposed Rule Change
communications relating to the
proposed rule change between the
The Exchange proposes to amend
Commission and any person, other than Phlx Rule 1001 to establish a delta
those that may be withheld from the
hedge exemption from equity options
public in accordance with the
position limits.5 The text of the
provisions of 5 U.S.C. 552, will be
proposed rule change is available at
available for inspection and copying in
Phlx, the Commission’s Public
the Commission’s Public Reference
Reference Room, and https://
Room, on official business days between www.phlx.com.
the hours of 10 a.m. and 3 p.m. Copies
II. Self-Regulatory Organization’s
of such filing also will be available for
Statement of the Purpose of, and
inspection and copying at the principal
Statutory Basis for, the Proposed Rule
office of NYSE Arca. All comments
Change
received will be posted without change;
In its filing with the Commission,
the Commission does not edit personal
Phlx included statements concerning
identifying information from
the purpose of and basis for the
submissions. You should submit only
proposed rule change and discussed any
information that you wish to make
comments it received on the proposed
available publicly. All submissions
should refer to File Number SR–
1 15 U.S.C. 78s(b)(1).
NYSEArca–2008–19 and should be
2 17 CFR 240.19b–4.
submitted on or before March 21, 2008.
3
Paper Comments
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.17
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8–3890 Filed 2–28–08; 8:45 am]
BILLING CODE 8011–01–P
17 17
PO 00000
CFR 200.30–3(a)(12).
Frm 00091
Fmt 4703
Sfmt 4703
15 U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
5 The proposed filing is being done pursuant to
an industry-wide initiative, under the auspices of
the Intermarket Surveillance Group (‘‘ISG’’), to
establish comparable delta hedge exemption rules
among exchanges. ISG is a regulatory informationsharing organization comprised of all U.S. national
securities exchanges and national securities
associations, most U.S. futures exchanges, and nonU.S. exchanges and associations trading securities
and related products.
4 17
E:\FR\FM\29FEN1.SGM
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]]>Agencies
[Federal Register Volume 73, Number 41 (Friday, February 29, 2008)]
[Notices]
[Pages 11177-11178]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-3890]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-57377; File No. SR-NYSE Arca-2008-19]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Amend Rule 7.31
To Modify the Primary Only Order Type
February 25, 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 February 13, 2008, NYSE Arca, Inc. (``NYSE Arca'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I and
II below, which Items have been prepared substantially by NYSE Arca.
NYSE Arca filed the proposed rule change as a ``non-controversial''
proposed rule change pursuant to section 19(b)(3)(A) of the Act \3\ and
Rule 19b-4(f)(6) thereunder,\4\ which renders it 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)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
NYSE Arca proposes to amend Rule 7.31(x) in order to modify the
permissible order entry time and eligibility of its Primary Only Order
(``PO Order''). The text of the proposed rule change is available at
NYSE Arca, 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 Arca 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. 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 NYSE Arca Equities rule 7.31(x) to
modify the operability and eligibility of PO Orders in order to provide
additional flexibility and increased functionality to its system and
its Users.\5\
---------------------------------------------------------------------------
\5\ See NYSE Arca Rule 1.1(yy) for the definition of ``User.''
---------------------------------------------------------------------------
The PO Order is a market or limit order that is routed to the
primary, listing market, without sweeping the NYSE Arca book.\6\ PO
Orders may be entered until a cut-off time as determined from time to
time by the Corporation. Presently, the Exchange restricts PO Orders to
participation in the primary, listing market opening. In an effort to
enhance order execution opportunities for its Users, the Exchange
proposes to modify the PO Order type so that they may be entered at any
time and to offer an order modifier for Users to designate PO Orders
that are eligible for entry and execution throughout the trading day.
---------------------------------------------------------------------------
\6\ NYSE Arca Rule 7.31(x).
---------------------------------------------------------------------------
According to the proposal, a PO Order may be entered at any time
\7\; and will be immediately routed to the primary, listing market for
execution. If the order is not IOC, the order is not returned to the
NYSE Arca book; rather it remains at the venue routed to, until
executed or cancelled that day. In instances where a symbol is halted,
the PO Order will remain at the primary, listing market until such time
that it is cancelled or the symbol is re-opened. PO Orders eligible for
participation in the primary, listing market's opening must be entered
before 6:28 a.m. (Pacific Time). A PO Order entered for participation
in the primary, listing market re-opening after a trading halt must be
entered after trading was halted on the Corporation and before the Re-
Opening Time. Otherwise, PO Orders eligible for participation in the
primary, listing market at all other times must be marked with the
modifier: PO+.
---------------------------------------------------------------------------
\7\ Users would be able to enter PO Orders into the system for
execution during any of the Exchange's trading sessions (Opening,
Core and Late Sessions).
---------------------------------------------------------------------------
The proposed changes to the PO Order type will provide additional
flexibility and functionality to the Exchange's system and its Users
that wish to use the system to comply with their obligations to avoid
trading through any Protected Quotation within the meaning of Rule
600(b)(58) of Regulation NMS.\8\ PO Orders may be designated as
intermarket sweep orders thereby providing the entering party the
ability to trade-through any protected bid or offer (as defined in Rule
600(b) of Regulation NMS under the Act) and to execute at the primary,
listing market. Of course, a broker-dealer that designates an order as
an intermarket sweep order has the responsibility of complying with
Rules 610 and 611 of Regulation NMS.
---------------------------------------------------------------------------
\8\ 17 CFR 242.600(b)(58).
---------------------------------------------------------------------------
The Exchange believes that the proposed clarification and
additional modifier will enhance flexibility and order execution
opportunities for its Users. The Exchange also believes that the
proposed amendments will also allow its Users to comply with their
obligation to avoid trading through any protected bid or offer within
the meaning of Rule 600(b) of Regulation NMS. In addition, the Exchange
believes that the proposed functionality is substantially similar to
the ``Directed Orders'' presently offered by The NASDAQ Stock Market
LLC (``Nasdaq'').\9\
---------------------------------------------------------------------------
\9\ See Securities Exchange Act Release No. 55405 (March 6,
2007), 72 FR 11069 (March 12, 2007) (SR-NASDAQ-2007-020).
---------------------------------------------------------------------------
2. Statutory Basis
The proposed rule change is consistent with the provisions of
section 6 of the Act,\10\ in general, and with sections 6(b)(1) and
(b)(5) of the Act,\11\ in particular, in that the proposal 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.
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78f.
\11\ 15 U.S.C. 78f(b)(1) and (b)(5).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
NYSE Arca does not believe that the proposed rule change will
impose any
[[Page 11178]]
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
Written comments were neither solicited nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule change does not: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to section 19(b)(3)(A) of the Act \12\ and Rule 19b-
4(f)(6) thereunder.\13 \
---------------------------------------------------------------------------
\12\ 15 U.S.C. 78s(b)(3)(A).
\13\ CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
A proposed rule change filed under 19b-4(f)(6) normally may not
become operative prior to 30 days after the date of filing.\14\
However, Rule 19b-4(f)(6)(iii) \15\ permits the Commission to designate
a shorter time if such action is consistent with the protection of
investors and the public interest. The Exchange has requested that the
Commission waive the 30-day operative delay. The Commission believes
that waiving the 30-day operative delay is consistent with the
protection of investors and the public interest.\16\ The Commission
hereby grants the Exchange's request and designates the proposal as
operative upon filing.
---------------------------------------------------------------------------
\14\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
NYSE Arca has complied with this requirement.
\15\ Id.
\16\ For purposes only of waiving the 30-day operative delay of
this proposal, the Commission has considered the proposed rule's
impact on efficiency, competition, and capital formation. 15 U.S.C.
78c(f).
---------------------------------------------------------------------------
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 rule-comments@sec.gov. Please include
File No. SR-NYSEArca-2008-19 on the subject line.
Paper Comments
Send paper comments in triplicate to Nancy M. Morris,
Secretary, Securities and Exchange Commission, Station Place, 100 F
Street, NE., Washington, DC 20549-1090.
All submissions should refer to File Number SR-NYSEArca-2008-19. 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, 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 NYSE Arca. 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-2008-19 and should be submitted on or before
March 21, 2008.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\17\
---------------------------------------------------------------------------
\17\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8-3890 Filed 2-28-08; 8:45 am]
BILLING CODE 8011-01-P
