Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Extend for Three Months the Moratorium Related to the Qualification and Registration of Registered Competitive Market Makers, Pursuant to NYSE Rule 107A, and Competitive Traders, Pursuant to NYSE Rule 110, 38265-38267 [E8-15066]
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Federal Register / Vol. 73, No. 129 / Thursday, July 3, 2008 / Notices
mstockstill on PROD1PC66 with NOTICES
this proposed rule change. The
Exchange has not received any written
comments from members or other
interested parties, except as described
below.
In Amendment No. 3, ISE noted that
the Commission received a comment
letter on another ISE rule proposal
related to the price at which a
transaction may be effected through the
PIM (the ‘‘Price Proposal’’), which
asserted that the combined effect of the
Price Proposal and this proposal to
reduce the exposure period to one
second would be increased
internalization rates.18 ISE further noted
that the Commission subsequently
approved the Price Proposal, stating that
it did not agree with the concerns raised
by the commenter and that the PIM
would continue to provide an
opportunity for customer orders to
receive an execution at a price better
than the NBBO.19 The Commission
stated in its approval order that the
Price Proposal could increase the
likelihood of members entering agency
orders into the PIM because the
members would only be required to
guarantee an execution at the NBBO,
which would provide additional
customer orders an opportunity for
price improvement. ISE also noted that
the Commission mentioned in its
approval order the potential for the
Price Proposal to encourage increased
participation in a PIM and that
increased participation would decrease
the proportion of an agency order that
would be internalized by the submitting
member.
As the Exchange discusses in the
Purpose section of this filing, and as
further supported by the results of the
survey discussed above, ISE members
are able to respond to PIM orders in less
than one second, and therefore the
Exchange does not believe this proposal
will discourage competition for PIM
orders. Rather, ISE believes that this
rule change, like the Price Proposal,
could provide additional customer
orders an opportunity for price
improvement because it would reduce
the market risk for members that are
required to guarantee an execution at
the NBBO or better.
18 Letter from Lisa J. Fall, General Counsel,
Boston Options Exchange, to Nancy M. Morris,
Secretary, Commission, dated May 14, 2008
(commenting on File Number SR–ISE–2008–29).
19 See Securities Exchange Act Release No. 57847
(May 21, 2008), 73 FR 30987 (May 29, 2008) (order
approving File No. SR–ISE–2008–29).
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16:46 Jul 02, 2008
Jkt 214001
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Within 35 days of the date of
publication of this notice in the Federal
Register or within such longer period (i)
as the Commission may designate up to
90 days of such date if it finds such
longer period to be appropriate and
publishes its reasons for so finding, or
(ii) as to which the Exchange consents,
the Commission will:
(A) By order approve such proposed
rule change, or
(B) Institute proceedings to determine
whether the proposed rule change
should be disapproved.
38265
available for inspection and copying at
the principal office of the 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–2007–94 and should be
submitted on or before July 24, 2008.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.20
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–15101 Filed 7–2–08; 8:45 am]
BILLING CODE 8010–01–P
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:
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–58033; File No. SR–NYSE–
2008–49]
• 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–2007–94 on the subject
line.
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing and Immediate Effectiveness of
a Proposed Rule Change To Extend for
Three Months the Moratorium Related
to the Qualification and Registration of
Registered Competitive Market Makers,
Pursuant to NYSE Rule 107A, and
Competitive Traders, Pursuant to
NYSE Rule 110
Paper Comments
June 26, 2008.
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street, NE.,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–ISE–2007–94. 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
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 June 23,
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 and II 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.
Electronic Comments
PO 00000
Frm 00094
Fmt 4703
Sfmt 4703
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to extend for
three months the moratorium related to
the qualification and registration of
Registered Competitive Market Makers
(‘‘RCMMs’’), pursuant to Exchange Rule
107A, and Competitive Traders (‘‘CTs’’),
pursuant to Exchange Rule 110
(‘‘Moratorium’’). The text of the
proposed rule change is available at
20 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
E:\FR\FM\03JYN1.SGM
03JYN1
38266
Federal Register / Vol. 73, No. 129 / Thursday, July 3, 2008 / Notices
https://www.nyse.com, the NYSE, 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. 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
mstockstill on PROD1PC66 with NOTICES
The Exchange proposes to extend for
three months the current Moratorium
related to the qualification and
registration of RCMMs, pursuant to
Exchange Rule 107A, and CTs, pursuant
to Exchange Rule 110.
On September 22, 2005, the Exchange
filed SR–NYSE–2005–63 3 with the
Commission proposing to implement a
Moratorium on the qualification and
registration of new RCMMs and CTs.
The purpose of the Moratorium was to
allow the Exchange an opportunity to
review the viability of RCMMs and CTs
in the NYSE HYBRID MARKETSM
(‘‘Hybrid Market’’).4
During each phase of the Hybrid
Market, new system functionality was
included in the operation of Exchange
systems, and new data was generated.
As a result, the Exchange was unable to
make an informed decision as to the
viability of RCMMs and CTs in the
Hybrid Market. The phased-in
implementation of the Hybrid Market
required the Exchange to extend the
Moratorium an additional six times over
the next twenty-four months.5
3 See Securities Exchange Act Release No. 52648
(October 21, 2005), 70 FR 62155 (October 28, 2005)
(SR–NYSE–2005–63).
4 See Securities Exchange Act Release No. 53539
(March 22, 2006), 71 FR 16353 (March 31, 2006)
(SR–NYSE–2004–05) (establishing the Hybrid
Market).
5 See Securities Exchange Act Release Nos. 54140
(July 13, 2006), 71 FR 41491 (July 21, 2006) (SR–
NYSE–2006–48); 54985 (December 21, 2006), 72 FR
171 (January 3, 2007) (SR–NYSE–2006–113); 55992
(June 29, 2007), 72 FR 37289 (July 9, 2007) (SR–
NYSE–2007–57); 56556 (September 27, 2007), 72
FR 56421 (October 3, 2007) (SR–NYSE–2007–86);
57072 (December 31, 2007), 73 FR 1252 (January 7,
2008) (SR–NYSE–2007–125); and 57601 (April 2,
2008), 73 FR 19123 (April 8, 2008) (SR–NYSE–
2008–22).
VerDate Aug<31>2005
16:46 Jul 02, 2008
Jkt 214001
The Exchange is now proposing to
extend the Moratorium, as amended,6
for an additional three months to
September 30, 2008 in order to finalize
its determination as to the roles of
RCMMs and CTs and to formally submit
a proposal to the Commission outlining
the role, if any, these classes of traders
have in the Exchange’s evolving market.
On June 12, 2008, the Exchange filed
its proposal to create its new market
model (‘‘New Model’’).7 Pursuant to its
proposal, the Exchange intends to: (i)
Provide market participants with
additional abilities to post hidden
liquidity on Exchange systems; (ii)
create a Designated Market Maker
(‘‘DMM’’) and phase out the NYSE
specialist; and (iii) enhance the speed of
execution through technological
enhancements and a reduction in
message traffic between Exchange
systems and its DMMs.
In light of these proposed changes, the
Exchange seeks to continue its review of
the data related to RCMMs’ and CTs’
current trading on the NYSE.
Accordingly, the Exchange requests
additional time to decide what roles, if
any, RCMMs and CTs should perform in
the proposed New Model.
The Exchange will issue an
Information Memo announcing the
extension of the Moratorium.
2. Statutory Basis
The basis under the Act 8 for this
proposed rule change is the requirement
under section 6(b)(5) 9 that an exchange
have rules that are designed 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. The Exchange is
currently reviewing the data related to
RCMMs and CTs to evaluate its trading
volume in the current, more electronic
market. Since it is undergoing
significant developments in its
technology and its market model, the
Exchange believes that an extension of
time to finalize its determination of
what, if any, roles the RCMMs and CTs
will play in this evolving marketplace
could potentially remove impediments
to, and better improve, the mechanism
of a free and open market.
6 See Securities Exchange Act Release No. 53549
(March 24, 2006), 71 FR 16388 (March 31, 2006)
(SR–NYSE–2006–11) (making certain amendments
to the Moratorium).
7 See SR–NYSE–2008–46.
8 15 U.S.C. 78a.
9 15 U.S.C. 78f(b)(5).
PO 00000
Frm 00095
Fmt 4703
Sfmt 4703
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
Because the proposed rule change: (i)
Does not significantly affect the
protection of investors or the public
interest; (ii) does not impose any
significant burden on competition; and
(iii) does not become operative for 30
days after the date of the filing, or such
shorter time as the Commission may
designate if consistent with the
protection of investors and the public
interest, the proposed rule change has
become effective pursuant to section
19(b)(3)(A) of the Act 10 and Rule 19b–
4(f)(6) thereunder.11
A proposed rule change filed
pursuant to Rule 19b–4(f)(6) under the
Act 12 normally does not become
operative for 30 days after the date of its
filing. However, Rule 19b–4(f)(6)(iii) 13
permits the Commission to designate a
shorter time if such action is consistent
with the protection of investors and the
public interest. The NYSE 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 because it would allow the
Moratorium to continue without
interruption so that the Exchange may
have additional time to make a final
determination as to the future roles of
RCMMs and CTs in the proposed New
Model and to file with the Commission
a proposed rule change outlining such
roles. For these reasons, the
Commission designates that the
10 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). Pursuant to Rule 19b–
4(f)(6)(iii) under the Act, the Exchange is required
to give the Commission written notice of its intent
to file the proposed rule change, along with a brief
description and text of 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. The Exchange
has satisfied the five-day pre-filing requirement.
12 17 CFR 240.19b–4(f)(6).
13 17 CFR 240.19b–4(f)(6)(iii).
11 17
E:\FR\FM\03JYN1.SGM
03JYN1
Federal Register / Vol. 73, No. 129 / Thursday, July 3, 2008 / Notices
proposed rule change become operative
immediately.14
At any time within 60 days of the
filing of the proposed rule change, the
Commission may summarily abrogate
the 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–NYSE–2008–49 on the
subject line.
mstockstill on PROD1PC66 with NOTICES
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street, NE.,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–NYSE–2008–49. 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 the filing also will be available for
inspection and copying at the principal
office of the Exchange. 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–
2008–49 and should be submitted on or
before July 24, 2008.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.15
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–15066 Filed 7–2–08; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–58036; File No. SR–NYSE–
2008–51]
Self-Regulatory Organizations; New
York Stock Exchange, LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change Relating to
Exchange Rule 103A (Specialist Stock
Reallocation and Member Education
and Performance) and Exchange Rule
103B (Specialist Stock Allocation)
June 26, 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 June 24,
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 and II below, which Items have
been substantially prepared by the
Exchange. The Exchange has designated
the proposed rule change as ‘‘noncontroversial’’ under Section
19(b)(3)(A)(iii) 3 of the Act and Rule
19b–4(f)(6) thereunder,4 which renders
the proposal 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 Exchange proposes to extend to
September 30, 2008, the moratorium on
the administration of the Specialist
Performance Evaluation Questionnaire
(‘‘SPEQ’’) pursuant to Exchange Rule
103A and the use of the SPEQ pursuant
14 For purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. 15 U.S.C. 78c(f).
VerDate Aug<31>2005
16:46 Jul 02, 2008
Jkt 214001
PO 00000
15 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)(iii).
4 17 CFR 240.19b–4(f)(6).
1 15
Frm 00096
Fmt 4703
Sfmt 4703
38267
to Exchange Rule 103B (‘‘Moratorium’’),
which was implemented on June 8,
2007. In addition, the Exchange
proposes to continue to suspend the use
of SuperDot turnaround for orders
received and the use of responses to
administrative messages as objective
measures in the assessment of specialist
performance during the Moratorium.
The Exchange further proposes that the
SPEQ and Order Reports/Administrative
Responses continue to be removed from
the criteria used to commence a
specialist performance improvement
action during the Moratorium.
The text of the proposed rule changes
is available on the Exchange’s Web site
(https://www.nyse.com), at the
Exchange’s Office of the Secretary, 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
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 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 extend to
September 30, 2008, the Moratorium on
the administration of the SPEQ pursuant
to Exchange Rule 103A and the use of
the SPEQ pursuant to Exchange Rule
103B, which was implemented on June
8, 2007 and extended through June 31,
2008.5
In addition, the Exchange proposes
that the use of SuperDot turnaround for
orders received and responses to
administrative messages continue to be
removed from the objective measures
used in the assessment of specialist
performance pursuant to Exchange Rule
103B or as criteria used to commence
specialist performance improvement
action pursuant to Exchange Rule 103A
during the Moratorium.
5 See Securities Exchange Act Release Nos. 55852
(June 4, 2007), 72 FR 31868 (June 8, 2007) (NYSE–
2007–47) (‘‘Original Request’’); 57184 (January 22,
2008), 73 FR 5254 (January 29, 2008) (NYSE–2008–
02); and 57591 (April 1, 2008), 73 FR 18838 (April
7, 2008) (NYSE–2008–21).
E:\FR\FM\03JYN1.SGM
03JYN1
]]>Agencies
[Federal Register Volume 73, Number 129 (Thursday, July 3, 2008)]
[Notices]
[Pages 38265-38267]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-15066]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-58033; File No. SR-NYSE-2008-49]
Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change
To Extend for Three Months the Moratorium Related to the Qualification
and Registration of Registered Competitive Market Makers, Pursuant to
NYSE Rule 107A, and Competitive Traders, Pursuant to NYSE Rule 110
June 26, 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 June 23, 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 and
II 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.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to extend for three months the moratorium
related to the qualification and registration of Registered Competitive
Market Makers (``RCMMs''), pursuant to Exchange Rule 107A, and
Competitive Traders (``CTs''), pursuant to Exchange Rule 110
(``Moratorium''). The text of the proposed rule change is available at
[[Page 38266]]
https://www.nyse.com, the NYSE, 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. 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
The Exchange proposes to extend for three months the current
Moratorium related to the qualification and registration of RCMMs,
pursuant to Exchange Rule 107A, and CTs, pursuant to Exchange Rule 110.
On September 22, 2005, the Exchange filed SR-NYSE-2005-63 \3\ with
the Commission proposing to implement a Moratorium on the qualification
and registration of new RCMMs and CTs. The purpose of the Moratorium
was to allow the Exchange an opportunity to review the viability of
RCMMs and CTs in the NYSE HYBRID MARKETSM (``Hybrid
Market'').\4\
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release No. 52648 (October 21,
2005), 70 FR 62155 (October 28, 2005) (SR-NYSE-2005-63).
\4\ See Securities Exchange Act Release No. 53539 (March 22,
2006), 71 FR 16353 (March 31, 2006) (SR-NYSE-2004-05) (establishing
the Hybrid Market).
---------------------------------------------------------------------------
During each phase of the Hybrid Market, new system functionality
was included in the operation of Exchange systems, and new data was
generated. As a result, the Exchange was unable to make an informed
decision as to the viability of RCMMs and CTs in the Hybrid Market. The
phased-in implementation of the Hybrid Market required the Exchange to
extend the Moratorium an additional six times over the next twenty-four
months.\5\
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release Nos. 54140 (July 13,
2006), 71 FR 41491 (July 21, 2006) (SR-NYSE-2006-48); 54985
(December 21, 2006), 72 FR 171 (January 3, 2007) (SR-NYSE-2006-113);
55992 (June 29, 2007), 72 FR 37289 (July 9, 2007) (SR-NYSE-2007-57);
56556 (September 27, 2007), 72 FR 56421 (October 3, 2007) (SR-NYSE-
2007-86); 57072 (December 31, 2007), 73 FR 1252 (January 7, 2008)
(SR-NYSE-2007-125); and 57601 (April 2, 2008), 73 FR 19123 (April 8,
2008) (SR-NYSE-2008-22).
---------------------------------------------------------------------------
The Exchange is now proposing to extend the Moratorium, as
amended,\6\ for an additional three months to September 30, 2008 in
order to finalize its determination as to the roles of RCMMs and CTs
and to formally submit a proposal to the Commission outlining the role,
if any, these classes of traders have in the Exchange's evolving
market.
---------------------------------------------------------------------------
\6\ See Securities Exchange Act Release No. 53549 (March 24,
2006), 71 FR 16388 (March 31, 2006) (SR-NYSE-2006-11) (making
certain amendments to the Moratorium).
---------------------------------------------------------------------------
On June 12, 2008, the Exchange filed its proposal to create its new
market model (``New Model'').\7\ Pursuant to its proposal, the Exchange
intends to: (i) Provide market participants with additional abilities
to post hidden liquidity on Exchange systems; (ii) create a Designated
Market Maker (``DMM'') and phase out the NYSE specialist; and (iii)
enhance the speed of execution through technological enhancements and a
reduction in message traffic between Exchange systems and its DMMs.
---------------------------------------------------------------------------
\7\ See SR-NYSE-2008-46.
---------------------------------------------------------------------------
In light of these proposed changes, the Exchange seeks to continue
its review of the data related to RCMMs' and CTs' current trading on
the NYSE. Accordingly, the Exchange requests additional time to decide
what roles, if any, RCMMs and CTs should perform in the proposed New
Model.
The Exchange will issue an Information Memo announcing the
extension of the Moratorium.
2. Statutory Basis
The basis under the Act \8\ for this proposed rule change is the
requirement under section 6(b)(5) \9\ that an exchange have rules that
are designed 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. The Exchange is currently reviewing
the data related to RCMMs and CTs to evaluate its trading volume in the
current, more electronic market. Since it is undergoing significant
developments in its technology and its market model, the Exchange
believes that an extension of time to finalize its determination of
what, if any, roles the RCMMs and CTs will play in this evolving
marketplace could potentially remove impediments to, and better
improve, the mechanism of a free and open market.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78a.
\9\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
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
Because the proposed rule change: (i) Does not significantly affect
the protection of investors or the public interest; (ii) does not
impose any significant burden on competition; and (iii) does not become
operative for 30 days after the date of the filing, or such shorter
time as the Commission may designate if consistent with the protection
of investors and the public interest, the proposed rule change has
become effective pursuant to section 19(b)(3)(A) of the Act \10\ and
Rule 19b-4(f)(6) thereunder.\11\
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\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 17 CFR 240.19b-4(f)(6). Pursuant to Rule 19b-4(f)(6)(iii)
under the Act, the Exchange is required to give the Commission
written notice of its intent to file the proposed rule change, along
with a brief description and text of 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.
The Exchange has satisfied the five-day pre-filing requirement.
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A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the
Act \12\ normally does not become operative for 30 days after the date
of its filing. However, Rule 19b-4(f)(6)(iii) \13\ permits the
Commission to designate a shorter time if such action is consistent
with the protection of investors and the public interest. The NYSE 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
because it would allow the Moratorium to continue without interruption
so that the Exchange may have additional time to make a final
determination as to the future roles of RCMMs and CTs in the proposed
New Model and to file with the Commission a proposed rule change
outlining such roles. For these reasons, the Commission designates that
the
[[Page 38267]]
proposed rule change become operative immediately.\14\
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\12\ 17 CFR 240.19b-4(f)(6).
\13\ 17 CFR 240.19b-4(f)(6)(iii).
\14\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. 15 U.S.C. 78c(f).
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At any time within 60 days of the filing of the proposed rule
change, the Commission may summarily abrogate the 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 Number SR-NYSE-2008-49 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street, NE., Washington, DC 20549-1090.
All submissions should refer to File Number SR-NYSE-2008-49. 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 the filing also
will be available for inspection and copying at the principal office of
the Exchange. 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-2008-49 and should be submitted on or before July 24, 2008.
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)(12).
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Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-15066 Filed 7-2-08; 8:45 am]
BILLING CODE 8010-01-P
