In the Matter of: NYSE Arca, Inc.; Order of Summary Abrogation, 20981 [E8-8215]

Download as PDF Federal Register / Vol. 73, No. 75 / Thursday, April 17, 2008 / Notices SECURITIES AND EXCHANGE COMMISSION [File No. SR–NYSEArca–2008–19] In the Matter of: NYSE Arca, Inc.; Order of Summary Abrogation April 11, 2008. Securities Exchange Act of 1934, Release No. 57648. Notice is hereby given that the Securities and Exchange Commission (‘‘Commission’’), pursuant to Section 19(b)(3)(C) of the Securities Exchange Act of 1934 (‘‘Act’’),1 is summarily abrogating a certain proposed rule change of NYSE Arca, Inc. (‘‘NYSE Arca’’ or ‘‘Exchange’’). On February 13, 2008, NYSE Arca filed SR–NYSEArca–2008–19. The proposed rule change amended NYSE Arca Equities Rule 7.31(x) to expand the permissible order entry time and eligibility of its ‘‘Primary Only’’ order type (‘‘PO Order’’). The filing was immediately effective upon filing with the Commission pursuant to Section 19(b)(3)(A) of the Act.2 NYSE Arca’s PO Order is a market or limit order that is routed to the primary, listing market, without sweeping the NYSE Arca book.3 The proposed rule change modified the PO Order type to permit PO Orders to 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.4 Previously, NYSE Arca restricted PO Orders to participation in the primary, listing market opening. Specifically, the amended rule permits NYSE Arca Equities system Users to enter a PO Order during any of the Exchange’s trading sessions and be routed immediately to the primary, listing market for execution. If the order is not immediate-or-cancel, it remains at the primary, listing market until executed or cancelled that day. Pursuant to Section 19(b)(3)(C) of the Act,5 at any time within 60 days of the date of filing a proposed rule change pursuant to Section 19(b)(1) of the Act,6 the Commission may summarily abrogate the change in the rules of the self-regulatory organization and require that the proposed rule change be re-filed in accordance with the provisions of 1 15 U.S.C. 78s(b)(3)(C). U.S.C. 78s(b)(3)(A). See Securities Exchange Act Release No. 57377 (February 25, 2008), 73 FR 11177 (February 29, 2008). 3 NYSE Arca Rule 7.31(x). 4 See NYSE Arca Rule 1.1(yy) for the definition of ‘‘User.’’ 5 15 U.S.C. 78s(b)(3)(C). 6 15 U.S.C. 78s(b)(1). sroberts on PROD1PC64 with NOTICES 2 15 VerDate Aug<31>2005 17:08 Apr 16, 2008 Jkt 214001 Section 19(b)(1) of the Act 7 and reviewed in accordance with Section 19(b)(2) of the Act,8 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. Archipelago Securities, Inc. (‘‘Arca Securities’’) is a member of the NYSE and an affiliate of the NYSE. The Commission in the past has expressed concern about the potential for unfair competition and conflicts of interest between an exchange’s self-regulatory obligations and its commercial interests that could exist if an exchange were affiliated with one of its members, as well as the potential for unfair competitive advantage that the affiliated member could have by virtue of informational or operational advantages, or the ability to receive preferential treatment.9 The proposed rule change raises this issue by expanding the activities of Arca Securities in sending orders to its affiliate, the NYSE. Thus, the Commission believes that the proposed rule change should be subject to notice and comment and review pursuant to Sections 19(b)(1) and 19(b)(2) of the Act.10 In addition, the Commission believes that the issue of whether the routing of PO Orders by Arca Securities to the NYSE is consistent with existing NYSE and NYSE Arca rules should be subject to this same notice and comment and review process.11 Therefore, the Commission finds that it is appropriate in the public interest, for the protection of investors, and otherwise in furtherance of the purposes of the Act, to abrogate the proposed rule change. It is therefore ordered, pursuant to Section 19(b)(3)(C) of the Act,12 that File No. SR–NYSEArca–2008–19, be and hereby is, summarily abrogated. If NYSE Arca chooses to re-file the proposed rule change, it must do so pursuant to Sections 19(b)(1) 13 and 19(b)(2) of the Act.14 7 15 U.S.C. 78s(b)(1). U.S.C. 78s(b)(2). 9 See Securities Exchange Act Release No. 53382 (February 27, 2006), 71 FR 11251 FR (March 6, 2006) (order approving SR–NYSE–2005–77). 10 15 U.S.C. 78s(b)(1) and 78s(b)(2). 11 See NYSE Rule 2B; NYSE Arca Rule 3.10; NYSE Arca Equities Rule 3.10; and Securities Exchange Act Release Nos. 53382, supra note 9; 53383 (February 27, 2006), 71 FR 11271 (March 6, 2006) (order approving SR–PCX–2005–134); and 52497 (September 22, 2005), 70 FR 56949 (September 29, 2005) (order approving SR–PCX– 2005–90). 12 15 U.S.C. 78s(b)(3)(C). 13 15 U.S.C, 78s(b)(1). 14 15 U.S.C, 78s(b)(2). 8 15 PO 00000 Frm 00077 Fmt 4703 Sfmt 4703 20981 For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.15 Florence E. Harmon, Deputy Secretary. [FR Doc. E8–8215 Filed 4–16–08; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–57644; File No. SR–Amex– 2008–32] Self-Regulatory Organizations; American Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to the Allocation of Executed Options Contracts April 10, 2008. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 notice is hereby given that on March 26, 2008, the American Stock Exchange LLC (‘‘Exchange’’ or ‘‘Amex’’) filed with the Securities and Exchange Commission (‘‘Commission’’) the proposed rule change as described in Items I and II below, which Items have been substantially prepared by the Exchange. The Exchange has designated this proposal as non-controversial under Section 19(b)(3)(A)(iii) of the Act 3 and Rule 19b–4(f)(6) 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 from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Amex proposes to modify the allocation in Exchange Rule 935–ANTE relating to electronically executed option contracts. The text of the proposed rule change is available on the Amex’s Web site at https:// www.Amex.com, at the Office of the Secretary, the Amex 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 Exchange included statements 15 17 CFR 200.30–3(a)(58). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 15 U.S.C. 78s(b)(3)(A)(iii). 4 17 CFR 240.19b–4(f)(6). 1 15 E:\FR\FM\17APN1.SGM 17APN1

Agencies

[Federal Register Volume 73, Number 75 (Thursday, April 17, 2008)]
[Notices]
[Page 20981]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8]



[[Page 20981]]

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SECURITIES AND EXCHANGE COMMISSION

[File No. SR-NYSEArca-2008-19]


In the Matter of: NYSE Arca, Inc.; Order of Summary Abrogation

April 11, 2008.
    Securities Exchange Act of 1934, Release No. 57648.
    Notice is hereby given that the Securities and Exchange Commission 
(``Commission''), pursuant to Section 19(b)(3)(C) of the Securities 
Exchange Act of 1934 (``Act''),\1\ is summarily abrogating a certain 
proposed rule change of NYSE Arca, Inc. (``NYSE Arca'' or 
``Exchange'').
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(3)(C).
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    On February 13, 2008, NYSE Arca filed SR-NYSEArca-2008-19. The 
proposed rule change amended NYSE Arca Equities Rule 7.31(x) to expand 
the permissible order entry time and eligibility of its ``Primary 
Only'' order type (``PO Order''). The filing was immediately effective 
upon filing with the Commission pursuant to Section 19(b)(3)(A) of the 
Act.\2\
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    \2\ 15 U.S.C. 78s(b)(3)(A). See Securities Exchange Act Release 
No. 57377 (February 25, 2008), 73 FR 11177 (February 29, 2008).
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    NYSE Arca's PO Order is a market or limit order that is routed to 
the primary, listing market, without sweeping the NYSE Arca book.\3\ 
The proposed rule change modified the PO Order type to permit PO Orders 
to 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.\4\ Previously, NYSE Arca restricted PO 
Orders to participation in the primary, listing market opening. 
Specifically, the amended rule permits NYSE Arca Equities system Users 
to enter a PO Order during any of the Exchange's trading sessions and 
be routed immediately to the primary, listing market for execution. If 
the order is not immediate-or-cancel, it remains at the primary, 
listing market until executed or cancelled that day.
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    \3\ NYSE Arca Rule 7.31(x).
    \4\ See NYSE Arca Rule 1.1(yy) for the definition of ``User.''
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    Pursuant to Section 19(b)(3)(C) of the Act,\5\ at any time within 
60 days of the date of filing a proposed rule change pursuant to 
Section 19(b)(1) of the Act,\6\ the Commission may summarily abrogate 
the change in the rules of the self-regulatory organization and require 
that the proposed rule change be re-filed in accordance with the 
provisions of Section 19(b)(1) of the Act \7\ and reviewed in 
accordance with Section 19(b)(2) of the Act,\8\ 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.
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    \5\ 15 U.S.C. 78s(b)(3)(C).
    \6\ 15 U.S.C. 78s(b)(1).
    \7\ 15 U.S.C. 78s(b)(1).
    \8\ 15 U.S.C. 78s(b)(2).
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    Archipelago Securities, Inc. (``Arca Securities'') is a member of 
the NYSE and an affiliate of the NYSE. The Commission in the past has 
expressed concern about the potential for unfair competition and 
conflicts of interest between an exchange's self-regulatory obligations 
and its commercial interests that could exist if an exchange were 
affiliated with one of its members, as well as the potential for unfair 
competitive advantage that the affiliated member could have by virtue 
of informational or operational advantages, or the ability to receive 
preferential treatment.\9\ The proposed rule change raises this issue 
by expanding the activities of Arca Securities in sending orders to its 
affiliate, the NYSE. Thus, the Commission believes that the proposed 
rule change should be subject to notice and comment and review pursuant 
to Sections 19(b)(1) and 19(b)(2) of the Act.\10\ In addition, the 
Commission believes that the issue of whether the routing of PO Orders 
by Arca Securities to the NYSE is consistent with existing NYSE and 
NYSE Arca rules should be subject to this same notice and comment and 
review process.\11\
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    \9\ See Securities Exchange Act Release No. 53382 (February 27, 
2006), 71 FR 11251 FR (March 6, 2006) (order approving SR-NYSE-2005-
77).
    \10\ 15 U.S.C. 78s(b)(1) and 78s(b)(2).
    \11\ See NYSE Rule 2B; NYSE Arca Rule 3.10; NYSE Arca Equities 
Rule 3.10; and Securities Exchange Act Release Nos. 53382, supra 
note 9; 53383 (February 27, 2006), 71 FR 11271 (March 6, 2006) 
(order approving SR-PCX-2005-134); and 52497 (September 22, 2005), 
70 FR 56949 (September 29, 2005) (order approving SR-PCX-2005-90).
---------------------------------------------------------------------------

    Therefore, the Commission finds that it is appropriate in the 
public interest, for the protection of investors, and otherwise in 
furtherance of the purposes of the Act, to abrogate the proposed rule 
change.
    It is therefore ordered, pursuant to Section 19(b)(3)(C) of the 
Act,\12\ that File No. SR-NYSEArca-2008-19, be and hereby is, summarily 
abrogated. If NYSE Arca chooses to re-file the proposed rule change, it 
must do so pursuant to Sections 19(b)(1) \13\ and 19(b)(2) of the 
Act.\14\
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    \12\ 15 U.S.C. 78s(b)(3)(C).
    \13\ 15 U.S.C, 78s(b)(1).
    \14\ 15 U.S.C, 78s(b)(2).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\15\
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    \15\ 17 CFR 200.30-3(a)(58).
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Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E8-8215 Filed 4-16-08; 8:45 am]
BILLING CODE 8010-01-P
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