Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change and Amendment No. 1 To Amend NYSE Rule 46 To Permit the Appointment of Qualified Exchange Employees To Act as Floor Governors, 19919-19921 [E8-7699]
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Federal Register / Vol. 73, No. 71 / Friday, April 11, 2008 / Notices
Paper Comments
impediments to and perfects the
mechanism of a national system for
prompt and accurate clearance and
settlement of securities transactions.
• Send paper comments in triplicate
to Nancy M. Morris, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
NSCC does not believe that the
proposed rule change will have any
impact or impose any burden on
competition.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
Written comments relating to the
proposed rule change have not yet been
solicited or received. NSCC will notify
the Commission of any written
comments received by NSCC.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing proposed rule change
has become effective upon filing
pursuant to Section 19(b)(3)(A)(iii) of
the Act 8 and Rule 19b–4(f)(4) 9
thereunder because the proposed rule
change effects a change in an existing
service of a registered clearing agency
that: (i) Does not adversely affect the
safeguarding of securities or funds in
the custody or control of the clearing
agency or for which it is responsible and
(ii) does not significantly affect the
respective rights or obligations of the
clearing agency or persons using the
service. At any time within sixty 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:
mstockstill on PROD1PC66 with NOTICES
Electronic Comments
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–57627; File No. SR–NYSE–
2008–19]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing and Immediate Effectiveness of
All submissions should refer to File
Proposed Rule Change and
Number SR–NSCC–2008–01. This file
Amendment No. 1 To Amend NYSE
number should be included on the
subject line if e-mail is used. To help the Rule 46 To Permit the Appointment of
Qualified Exchange Employees To Act
Commission process and review your
as Floor Governors
comments more efficiently, please use
only one method. The Commission will April 4, 2008.
post all comments on the Commission’s
Pursuant to Section 19(b)(1) of the
Internet Web site (https://www.sec.gov/
Securities Exchange Act of 1934
rules/sro.shtml). Copies of the
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
submission, all subsequent
notice is hereby given that on March 14,
2008, the New York Stock Exchange,
amendments, all written statements
LLC (‘‘NYSE’’ or ‘‘Exchange’’), filed
with respect to the proposed rule
with the Securities and Exchange
change that are filed with the
Commission (‘‘Commission’’) the
Commission, and all written
proposed rule change as described in
communications relating to the
Items I, II, and III below, which Items
proposed rule change between the
Commission and any person, other than have been prepared by NYSE. On April
4, 2008 the Exchange filed Amendment
those that may be withheld from the
No. 1 to the proposed rule change.
public in accordance with the
NYSE has designated this proposal as
provisions of 5 U.S.C. 552, will be
concerned solely with the
available for inspection and copying in
administration of a self-regulatory
the Commission’s Public Reference
organization, pursuant to Section
Section, 100 F Street, NE., Washington,
19(b)(3)(A)(iii) of the Act and Rule 19b–
DC 20549, on official business days
4(f)(3) thereunder,3 which renders the
between the hours of 10 am and 3 pm.
proposed rule change effective upon
Copies of such filings also will be
filing. The Commission is publishing
available for inspection and copying at
this notice to solicit comments on the
the principal office of NSCC and on
proposed rule change, as amended, from
NSCC’s Web site at https://
interested persons.
www.dtcc.com/downloads/legal/
rule_filings/2008/nscc/2008–01.pdf. All I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
comments received will be posted
the Proposed Rule Change
without change; the Commission does
The Exchange proposes to amend
not edit personal identifying
NYSE Rule 46 to permit the
information from submissions. You
appointment of qualified Exchange
should submit only information that
you wish to make available publicly. All employees to act as Floor Governors.
The text of the proposed rule change is
submissions should refer to File
Number SR–NSCC–2008–01 and should available at https://www.nyse.com, the
Exchange and the Commission’s Public
be submitted on or before May 2, 2008.
Reference Room.
For the Commission by the Division of
Trading and Markets, pursuant to delegated
authority.10
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8–7696 Filed 4–10–08; 8:45 am]
BILLING CODE 8011–01–P
• 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–NSCC–2008–01 on the
subject line.
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 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 Exchange has
prepared summaries, set forth in
1 15
U.S.C. 78s(b)(3)(A)(iii).
9 17 CFR 240.19b–4(f)(4).
8 15
VerDate Aug<31>2005
19:21 Apr 10, 2008
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 17 CFR 240.19b–4(f)(3).
2 17
10 17
Jkt 214001
19919
PO 00000
CFR 200.30–3(a)(12).
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Fmt 4703
Sfmt 4703
E:\FR\FM\11APN1.SGM
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19920
Federal Register / Vol. 73, No. 71 / Friday, April 11, 2008 / Notices
Sections A, B, and C below, of the most
significant aspects of such statements.
mstockstill on PROD1PC66 with NOTICES
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
NYSE Rule 46 currently provides a
process for the Exchange to appoint
NYSE members as Floor Officials. NYSE
Rule 2(a) states that the term ‘‘member,’’
when referring to a natural person,
means a natural person associated with
a member organization who has been
approved by the Exchange and
designated by such member
organization to effect transactions on the
Floor of the Exchange or any facility
thereof. Floor Officials are delegated
certain authority from the Board of
Directors of the Exchange to supervise
and regulate active openings and
unusual situations that arise in
connection with the making of bids,
offers or transactions on the trading
Floor, and to review and approve
certain trading actions, such as trades to
be effected at wide variations in price
and delayed openings and trading
halts.4
Floor Officials have traditionally been
drawn from the ranks of experienced
NYSE Floor members and serve in a
volunteer capacity in addition to their
regular obligations as either brokers or
specialists. Within the broad category of
‘‘Floor Official,’’ there are several ranks
reflecting the experience of the member
serving, including (in ascending order of
seniority) Floor Official, Senior Floor
Official, Floor Governor, and Executive
Floor Governor. Under NYSE Rule 46,
more senior-level Floor Officials may
take any action that a lower-level Floor
Official is authorized to take.
Floor Officials at all ranks are
appointed by the NYSE’s Chairman and
Board of Directors, in consultation with
the Executive Floor Governors and
NYSE Regulation Board, which advises
on the fitness of the individuals
designated. In connection with the
NYSE Regulation Board’s advisory
function, NYSE Regulation staff gives a
mandatory education program to the
prospective officials, which all
candidates for Floor Official (including
Floor Governors) must complete. NYSE
Regulation also administers a qualifying
examination to newly-named Floor
Officials, who must pass the exam prior
to being recommended by the NYSE
Regulation Board for appointment.
4 See NYSE Rules 37, 47, 48, 60, 64, 75, 79A, 85,
90, 91, 93, 100, 103, 103A, 103B, 104, 107A, 110,
111, 112, 115A, 122, 123A, 123C, 123D, 127, 128B,
284, 325, 476A, 903 and 906.
VerDate Aug<31>2005
19:21 Apr 10, 2008
Jkt 214001
As the NYSE’s trading Floor has
downsized from five trading rooms to
two, a number of highly-experienced
members have left the Floor as a result
of retirement, layoffs and restructurings
within their member organizations.
Because of these departures, the
available pool of experienced members
who can serve as senior-level Floor
Officials (particularly Floor Governors)
has shrunk commensurately.
During this same time, the Exchange
has hired several former members who,
while they were active on the Floor,
served as senior-level Floor Officials.5
The Exchange believes that these
individuals have the necessary business
and rule knowledge that would enable
them to act as Floor Governors if the
need arose, but are restricted by the
provision in NYSE Rule 46 that states
that Floor Governors must be
‘‘members’’ of the Exchange. In order to
broaden the pool of experienced
individuals who can participate in and
supervise unusual trading situations on
the Floor, the Exchange is proposing an
amendment to NYSE Rule 46 that would
permit the Exchange to designate
qualified Exchange employees, who
would have the same authority as Floor
Governors, in addition to appointing
active members as Floor Governors. To
avoid any conflicts of interest between
business interests and regulatory
interests, the proposed amendment also
provides that the Exchange may not
appoint employees of NYSE Regulation
as Floor Governors.
The proposed amendment would
preserve the Exchange’s flexibility to
appoint both qualified members and
qualified staff to act as Floor Governors.
In addition, and as importantly, the
amendment would not change either the
selection or the qualification processes:
qualified Exchange employees (like
qualified members) would need to be
appointed by the Exchange’s chairman
in consultation with the Executive Floor
Governors and NYSE Regulation Board
of Directors and approved by the NYSE
Board of Directors; and they would need
to complete the mandatory education
program and, if necessary, the
qualifications exam.6 By retaining these
5 For example, one such individual served as an
Executive Floor Governor, while two others served
as Floor Governors.
6 The Exchange notes that under NYSE
Regulation policy, former Floor Governors
employed by the Exchange and appointed as
qualified Exchange employees under Rule 46 would
not need to retake the qualifying examination. This
is consistent with the treatment of members being
promoted to Floor Governor from Floor Official
positions; such members are deemed to be qualified
for the position after completing the mandatory
education program, and are exempt from retaking
the examination.
PO 00000
Frm 00119
Fmt 4703
Sfmt 4703
processes, the Exchange intends to limit
the appointment of Exchange employees
to only those employees who meet the
standards that the Exchange currently
expects of member Floor Governors.
Because the proposed amendment
adds a new category of Floor Official
(qualified Exchange employee), the
Exchange is proposing to add new
supplementary material, Rule 46.20, to
clarify that qualified Exchange
employees are authorized to take any
action that a Floor Governor may take.
Because all Floor Governors are also
empowered to take any action that a
Floor Official may take, the rule further
clarifies that qualified Exchange
employees may also take any action that
a Floor Official may take.
2. Statutory Basis
The Exchange believes the proposed
rule change is consistent with and
furthers the objectives of Section 6(b)(5)
of the Act,7 in that it is designed to
prevent fraudulent and manipulative
acts and practices, to promote just and
equitable principles of trade, to remove
impediments to, and perfect the
mechanisms 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
No written comments were solicited
or received with respect to the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change is
concerned solely with the
administration of the Exchange and has,
therefore, become effective pursuant to
Section 19(b)(3)(A)(iii) of the Act 8 and
Rule 19b–4(f)(3) 9 thereunder. 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
7 15
U.S.C. 78f(b)(5).
U.S.C. 78s(b)(3)(A).
9 17 CFR 240.19b–4(f)(3).
8 15
E:\FR\FM\11APN1.SGM
11APN1
Federal Register / Vol. 73, No. 71 / Friday, April 11, 2008 / Notices
the protection of investors, or otherwise
in furtherance of the purposes of the
Act.10
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change, as amended, is consistent with
the Act. Comments may be submitted by
any of the following methods:
you wish to make available publicly. All
submissions should refer to File
Number SR–NYSE–2008–19 and should
be submitted on or before May 2, 2008.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8–7699 Filed 4–10–08; 8:45 am]
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–2008–19 on the
subject line.
mstockstill on PROD1PC66 with NOTICES
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–NYSE–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, 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 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
purposes of calculating the 60-day period
within which the Commission may summarily
abrogate the proposed rule change under Section
19(b)(3)(C) of the Act, the Commission considers
the period to commence on April 4, 2008, the date
on which NYSE filed Amendment No. 1. See 15
U.S.C. 78s(b)(3)(C).
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–57624; File No. SR–
NYSEArca–2008–38]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change and Amendment No. 1
Thereto To Amend the Schedule of
Fees and Charges for Exchange
Services That Apply To Orders
Submitted by ETP Holders
April 4, 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 March
31, 2008, NYSE Arca, Inc. (‘‘Exchange’’),
through its wholly-owned subsidiary
NYSE Arca Equities, Inc. (‘‘NYSE Arca
Equities’’), 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 prepared substantially by the
Exchange. On April 2, 2008, the
Exchange filed Amendment No. 1. The
Exchange 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 19b4(f)(2) thereunder,4 which renders the
proposed rule change effective upon
filing with the Commission. The
Commission is publishing this notice to
solicit comments on the proposed rule
change, as amended, from interested
persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend the
section of its Schedule of Fees and
Charges for Exchange Services (‘‘Fee
Schedule’’) that applies to orders
10 For
VerDate Aug<31>2005
19:21 Apr 10, 2008
Jkt 214001
11 17
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)(ii).
4 17 CFR 240.19b-4(f)(2).
1 15
PO 00000
Frm 00120
Fmt 4703
Sfmt 4703
19921
submitted by ETP Holders.5 While
changes to the Fee Schedule pursuant to
this proposal will be effective upon
filing, the changes will become
operative on April 1, 2008. The text of
the proposed rule change is available on
the Exchange’s Web site at https://
www.nyse.com, the Exchange’s Office of
the Corporate Secretary, 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. 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
As part of its continuing efforts to
enhance participation on the Exchange,
NYSE Arca Equities proposes to amend
the relevant sections of its Fee Schedule
that apply to rebates provided to ETP
Holders that submit orders which
provide liquidity on NYSE Arca
Equities for equity securities listed on
the NASDAQ Stock Market LLC
(‘‘Nasdaq’’), commonly referred to as
Tape C securities, or equity securities
listed on the New York Stock Exchange
LLC (‘‘NYSE’’), commonly referred to as
Tape A securities. Primarily, these
changes will increase the rebate (or
credit) earned by ETP Holders for
providing significant liquidity in either
Tape A or Tape C securities.
Specifically, the Exchange proposes
amending its existing volume tier
structure and creating new volumebased tiers in order to offer increased
rebates for orders that provide liquidity
and decreased fees for orders that take
liquidity, if certain volume thresholds
are met.
Tape C
Credits
Currently, the credit for round lot
orders of Tape C securities that provide
liquidity is $0.002 per share, unless
certain volume thresholds are met, in
5 See
E:\FR\FM\11APN1.SGM
NYSE Arca Equities Rule 1.1(n).
11APN1
]]>Agencies
[Federal Register Volume 73, Number 71 (Friday, April 11, 2008)]
[Notices]
[Pages 19919-19921]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-7699]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-57627; File No. SR-NYSE-2008-19]
Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
and Amendment No. 1 To Amend NYSE Rule 46 To Permit the Appointment of
Qualified Exchange Employees To Act as Floor Governors
April 4, 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 March 14, 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 prepared by NYSE. On April 4, 2008
the Exchange filed Amendment No. 1 to the proposed rule change. NYSE
has designated this proposal as concerned solely with the
administration of a self-regulatory organization, pursuant to Section
19(b)(3)(A)(iii) of the Act and Rule 19b-4(f)(3) thereunder,\3\ which
renders the proposed rule change effective upon filing. The Commission
is publishing this notice to solicit comments on the proposed rule
change, as amended, from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 17 CFR 240.19b-4(f)(3).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend NYSE Rule 46 to permit the
appointment of qualified Exchange employees to act as Floor Governors.
The text of the proposed rule change is available at https://
www.nyse.com, 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, 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 Exchange has prepared summaries, set forth in
[[Page 19920]]
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
NYSE Rule 46 currently provides a process for the Exchange to
appoint NYSE members as Floor Officials. NYSE Rule 2(a) states that the
term ``member,'' when referring to a natural person, means a natural
person associated with a member organization who has been approved by
the Exchange and designated by such member organization to effect
transactions on the Floor of the Exchange or any facility thereof.
Floor Officials are delegated certain authority from the Board of
Directors of the Exchange to supervise and regulate active openings and
unusual situations that arise in connection with the making of bids,
offers or transactions on the trading Floor, and to review and approve
certain trading actions, such as trades to be effected at wide
variations in price and delayed openings and trading halts.\4\
---------------------------------------------------------------------------
\4\ See NYSE Rules 37, 47, 48, 60, 64, 75, 79A, 85, 90, 91, 93,
100, 103, 103A, 103B, 104, 107A, 110, 111, 112, 115A, 122, 123A,
123C, 123D, 127, 128B, 284, 325, 476A, 903 and 906.
---------------------------------------------------------------------------
Floor Officials have traditionally been drawn from the ranks of
experienced NYSE Floor members and serve in a volunteer capacity in
addition to their regular obligations as either brokers or specialists.
Within the broad category of ``Floor Official,'' there are several
ranks reflecting the experience of the member serving, including (in
ascending order of seniority) Floor Official, Senior Floor Official,
Floor Governor, and Executive Floor Governor. Under NYSE Rule 46, more
senior-level Floor Officials may take any action that a lower-level
Floor Official is authorized to take.
Floor Officials at all ranks are appointed by the NYSE's Chairman
and Board of Directors, in consultation with the Executive Floor
Governors and NYSE Regulation Board, which advises on the fitness of
the individuals designated. In connection with the NYSE Regulation
Board's advisory function, NYSE Regulation staff gives a mandatory
education program to the prospective officials, which all candidates
for Floor Official (including Floor Governors) must complete. NYSE
Regulation also administers a qualifying examination to newly-named
Floor Officials, who must pass the exam prior to being recommended by
the NYSE Regulation Board for appointment.
As the NYSE's trading Floor has downsized from five trading rooms
to two, a number of highly-experienced members have left the Floor as a
result of retirement, layoffs and restructurings within their member
organizations. Because of these departures, the available pool of
experienced members who can serve as senior-level Floor Officials
(particularly Floor Governors) has shrunk commensurately.
During this same time, the Exchange has hired several former
members who, while they were active on the Floor, served as senior-
level Floor Officials.\5\ The Exchange believes that these individuals
have the necessary business and rule knowledge that would enable them
to act as Floor Governors if the need arose, but are restricted by the
provision in NYSE Rule 46 that states that Floor Governors must be
``members'' of the Exchange. In order to broaden the pool of
experienced individuals who can participate in and supervise unusual
trading situations on the Floor, the Exchange is proposing an amendment
to NYSE Rule 46 that would permit the Exchange to designate qualified
Exchange employees, who would have the same authority as Floor
Governors, in addition to appointing active members as Floor Governors.
To avoid any conflicts of interest between business interests and
regulatory interests, the proposed amendment also provides that the
Exchange may not appoint employees of NYSE Regulation as Floor
Governors.
---------------------------------------------------------------------------
\5\ For example, one such individual served as an Executive
Floor Governor, while two others served as Floor Governors.
---------------------------------------------------------------------------
The proposed amendment would preserve the Exchange's flexibility to
appoint both qualified members and qualified staff to act as Floor
Governors. In addition, and as importantly, the amendment would not
change either the selection or the qualification processes: qualified
Exchange employees (like qualified members) would need to be appointed
by the Exchange's chairman in consultation with the Executive Floor
Governors and NYSE Regulation Board of Directors and approved by the
NYSE Board of Directors; and they would need to complete the mandatory
education program and, if necessary, the qualifications exam.\6\ By
retaining these processes, the Exchange intends to limit the
appointment of Exchange employees to only those employees who meet the
standards that the Exchange currently expects of member Floor
Governors.
---------------------------------------------------------------------------
\6\ The Exchange notes that under NYSE Regulation policy, former
Floor Governors employed by the Exchange and appointed as qualified
Exchange employees under Rule 46 would not need to retake the
qualifying examination. This is consistent with the treatment of
members being promoted to Floor Governor from Floor Official
positions; such members are deemed to be qualified for the position
after completing the mandatory education program, and are exempt
from retaking the examination.
---------------------------------------------------------------------------
Because the proposed amendment adds a new category of Floor
Official (qualified Exchange employee), the Exchange is proposing to
add new supplementary material, Rule 46.20, to clarify that qualified
Exchange employees are authorized to take any action that a Floor
Governor may take. Because all Floor Governors are also empowered to
take any action that a Floor Official may take, the rule further
clarifies that qualified Exchange employees may also take any action
that a Floor Official may take.
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
and furthers the objectives of Section 6(b)(5) of the Act,\7\ in that
it is designed to prevent fraudulent and manipulative acts and
practices, to promote just and equitable principles of trade, to remove
impediments to, and perfect the mechanisms of, a free and open market
and a national market system, and, in general, to protect investors and
the public interest.
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\7\ 15 U.S.C. 78f(b)(5).
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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
No written comments were solicited or received with respect to the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change is concerned solely with the
administration of the Exchange and has, therefore, become effective
pursuant to Section 19(b)(3)(A)(iii) of the Act \8\ and Rule 19b-
4(f)(3) \9\ thereunder. 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
[[Page 19921]]
the protection of investors, or otherwise in furtherance of the
purposes of the Act.\10\
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\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 17 CFR 240.19b-4(f)(3).
\10\ For purposes of calculating the 60-day period within which
the Commission may summarily abrogate the proposed rule change under
Section 19(b)(3)(C) of the Act, the Commission considers the period
to commence on April 4, 2008, the date on which NYSE filed Amendment
No. 1. See 15 U.S.C. 78s(b)(3)(C).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change, as amended, 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-2008-19 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-NYSE-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, 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 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-2008-19 and should be
submitted on or before May 2, 2008.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
Florence E. Harmon,
Deputy Secretary.
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\11\ 17 CFR 200.30-3(a)(12).
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[FR Doc. E8-7699 Filed 4-10-08; 8:45 am]
BILLING CODE 8011-01-P
