In the Matter of: NYSE Arca, Inc.; Order of Summary Abrogation, 20981 [E8-8215]
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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).
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2 15
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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
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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).
---------------------------------------------------------------------------
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\
---------------------------------------------------------------------------
\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).
---------------------------------------------------------------------------
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.
---------------------------------------------------------------------------
\3\ NYSE Arca Rule 7.31(x).
\4\ See NYSE Arca Rule 1.1(yy) for the definition of ``User.''
---------------------------------------------------------------------------
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.
---------------------------------------------------------------------------
\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).
---------------------------------------------------------------------------
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\
---------------------------------------------------------------------------
\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\
---------------------------------------------------------------------------
\15\ 17 CFR 200.30-3(a)(58).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8-8215 Filed 4-16-08; 8:45 am]
BILLING CODE 8010-01-P
