Self-Regulatory Organizations; NYSE Arca, Inc.; Order Approving Proposed Rule Change To Amend Minor Rule Plan and Certain Underlying Rules, 38481-38482 [E8-15197]
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Federal Register / Vol. 73, No. 130 / Monday, July 7, 2008 / Notices
and the rules and regulations
thereunder applicable to NSCC because
the proposed rule change should
promote processing efficiencies between
insurance companies and distributors of
variable insurance products, thereby
facilitating the prompt and accurate
processing of securities transactions.
(B) Self-Regulatory Organization’s
Statement on Burden on Competition
(C) Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments relating to the
proposed rule change have 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 rule change has become
effective upon filing pursuant to Section
19(b)(3)(A)(iii) of the Act 9 and Rule
19b–4(f)(6) 10 thereunder in that it (1)
Does not significantly affect the
protection of investors or the public
interest; (ii) does not impose any
significant burden on competition; (iii)
by its terms, does not become operative
for 30 days after the date from which it
was filed (June 19, 2008), or such
shorter time as the Commission may
designate if consistent with the
protection of investors and the public
interest. At any time within sixty days
of the filing of such 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
mstockstill on PROD1PC66 with NOTICES
• 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–2008–03 on the
subject line.
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:
I. Introduction
On May 14, 2008, NYSE Arca, Inc.
(‘‘NYSE Arca’’ or the ‘‘Exchange’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’), pursuant
All submissions should refer to File
to Section 19(b)(1) of the Securities
Number SR–SCC–2008–03. This file
Exchange Act of 1934 (‘‘Act’’) 1 and Rule
number should be included on the
subject line if e-mail is used. To help the 19b–4 thereunder,2 a proposed rule
change to amend NYSE Arca Rule 10.12
Commission process and review your
(Minor Rule Plan) (‘‘MRP’’) and related
comments more efficiently, please use
only one method. The Commission will rules that underlie the MRP. The
post all comments on the Commission’s proposed rule change was published for
comment in the Federal Register on
Internet Web site (https://www.sec.gov/
May 23, 2008.3 The Commission
rules/sro.shtml). Copies of the
received no comments on the proposal.
submission, all subsequent
This order approves the proposal.
amendments, all written statements
II. Description of the Proposal
with respect to the proposed rule
change that are filed with the
The Exchange proposed to amend its
Commission, and all written
Minor Rule Plan and related rules that
communications relating to the
underlie the MRP, including Rules
proposed rule change between the
9.2(c) (Customer Records), 11.1
Commission and any person, other than (Adherence to Law), and 11.18
those that may be withheld from the
(Supervision).
public in accordance with the
Rule 9.2(c)—Customer Records
provisions of 5 U.S.C. 552, will be
The Exchange proposed to change
available for inspection and copying in
Rule 9.2(c) by adding the word
the Commission’s Public Reference
‘‘current,’’ to clarify and reiterate the
Room, 100 F Street, NE., Washington,
obligation that firms with customer
DC 20549, on official business days
between the hours of 10 a.m. and 3 p.m. accounts must not only keep records of
their customer accounts, but also keep
Copies of such filings also will be
them current.
available for inspection and copying at
the principal office of NSCC and on
Rule 11.1—Adherence to Law and Good
NSCC’s Web site, https://www.nscc.com/ Business Practices
legal/. All comments received will be
The Exchange designated existing
posted without change; the Commission Rule 11.1 as Rule 11.1(a) and
does not edit personal identifying
substituted the word ‘‘fair’’ in the rule’s
information from submissions. You
requirement that certain actions of ‘‘any
should submit only information that
OTP Holder or OTP firm shall at all
you wish to make available publicly. All times comply with fair and equitable
submissions should refer to File
principles of trade’’ by the word ‘‘just.’’
Number SR–NSCC–2008–03 and should The Exchange also proposed new Rule
be submitted on or before July 28, 2008. 11.1(b), which would require all OTP
Holders and firms, their associated
For the Commission by the Division of
persons, and other participants to
Trading and Markets, pursuant to delegated
adhere to the principles of good
authority.11
business practice in the conduct of their
Florence E. Harmon,
business operations.4 Violations of Rule
Acting Secretary.
[FR Doc. E8–15251 Filed 7–3–08; 8:45 am]
BILLING CODE 8010–01–P
11 17
Jkt 214001
Self-Regulatory Organizations; NYSE
Arca, Inc.; Order Approving Proposed
Rule Change To Amend Minor Rule
Plan and Certain Underlying Rules
June 26, 2008.
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
17:39 Jul 03, 2008
[Release No. 34–58034; File No. SR–
NYSEArca–2008–49]
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street, NE.,
Washington, DC 20549–1090.
10 17
VerDate Aug<31>2005
SECURITIES AND EXCHANGE
COMMISSION
Paper Comments
NSCC 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.
9 15
Electronic Comments
38481
PO 00000
Fmt 4703
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 See Securities Exchange Act Release No. 57827
(May 15, 2008), 73 FR 30179 (‘‘Notice’’).
4 This rule is based on the current NYSE Rule
401(a).
2 17
CFR 200.30–3(a)(12).
Frm 00093
1 15
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E:\FR\FM\07JYN1.SGM
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38482
Federal Register / Vol. 73, No. 130 / Monday, July 7, 2008 / Notices
11.1(b) would be eligible for MRP
disposition.
Rule 11.18—Supervision
The current language of Rule 11.18(b)
provides that only OTP Holders and
firms for whom the Exchange is the
Designated Examining Authority
(‘‘DEA’’) are subject to its supervisory
requirements. The Exchange proposed
to amend Rule 11.18 to provide that all
OTP Holders and firms, regardless of
DEA, are subject to the Exchange’s
supervisory requirements. The
Exchange also proposed to make
violations of Rule 11.18 eligible for MRP
disposition.
Rule 10.12—Minor Rule Plan
The Exchange proposed to make
several modifications to its MRP,
including to:
• Make several trading and
recordkeeping rules eligible for MRP
disposition.5
• Modify the Recommended Fine
Schedule in Rule 10.12(k) so that MRP
fines are based not on the number of
violations but on the number of times
the Exchange has imposed one or more
MRP fines upon an OTP Holder or firm
for the violation of a particular rule.
• Enable the Exchange to require that
violators of Rules 6.94(a) and (c) 6 not
only pay the MRP fines for their
violations, but also disgorge any
quantifiable monetary gains attributable
to these violations;
• Allow Exchange enforcement staff,
as part of an MRP disposition of certain
supervisory-related offenses, not only to
impose a monetary fine, but also to
require the violator to make specified
changes to its supervisory or other
compliance procedures; and
• Enable the Exchange to require
violators of Rule 2.23 (Registration) to
remit all the fees that they should have
paid in connection with registration, in
addition to any MRP fines.
III. Discussion
mstockstill on PROD1PC66 with NOTICES
The Commission finds that the
proposed rule change is consistent with
the requirements of the Act and the
rules and regulations thereunder
applicable to a national securities
exchange.7 In particular, the
Commission believes that the proposed
rule change relating to both the MRP
5 See Notice, 73 FR at 30180, for a detailed
description of these additions.
6 Rules 6.94(a) and (c) require OTP Holders to
avoid violations of its trade-through rules and,
where such violation is unavoidable, to provide
satisfaction orders.
7 In approving this proposal, the Commission has
considered its impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
VerDate Aug<31>2005
17:39 Jul 03, 2008
Jkt 214001
and the related underlying rules is
consistent with Section 6(b)(5) of the
Act,8 which requires that the rules of an
exchange be designed to promote just
and equitable principles of trade, to
remove impediments to and to 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 Commission further believes that
the proposed changes to the Exchange’s
MRP are consistent with Sections 6(b)(1)
and 6(b)(6) of the Act,9 which require
that the rules of an exchange enforce
compliance with, and provide
appropriate discipline for, violations of
Commission and Exchange rules. In
addition, because the MRP provides
procedural rights to contest the fine and
permits disciplinary proceedings on the
matter, the Commission believes that
the MRP, as amended by this proposal,
provides a fair procedure for the
disciplining of members and persons
associated with members, consistent
with Sections 6(b)(7) and 6(d)(1) of the
Act.10 Finally, the Commission finds
that the proposal is consistent with the
public interest, the protection of
investors, or otherwise in furtherance of
the purposes of the Act, as required by
Rule 19d–1(c)(2) under the Act,11 which
governs minor rule violation plans. The
Commission believes that the proposed
rule change would strengthen the
Exchange’s ability to carry out its
oversight and enforcement
responsibilities as a self-regulatory
organization in cases where full
disciplinary proceedings are unsuitable
in view of the minor nature of the
particular violation.
In approving this proposed rule
change, the Commission in no way
minimizes the importance of
compliance with NYSE Arca rules and
all other rules subject to the imposition
of fines under the MRP. The
Commission believes that the violation
of any self-regulatory organization’s
rules, as well as Commission rules, is a
serious matter. However, the Exchange
provides a reasonable means of
addressing rule violations that do not
rise to the level of requiring formal
disciplinary proceedings, while
providing greater flexibility in handling
certain violations. The Commission
expects that the Exchange would
continue to conduct surveillance with
due diligence and make a determination
based on its findings, on a case-by-case
basis, whether a fine of more or less
PO 00000
than the recommended amount is
appropriate for MRP disposition or
whether a violation requires formal
disciplinary action.
III. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act 12 and Rule
19d–1(c)(2) under the Act 13 that the
proposed rule change (SR–NYSEArca–
2008–49) be, and it hereby is, approved
and declared effective.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–15197 Filed 7–3–08; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–58056; File No. SR–
NYSEArca–2008–67]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend Its Schedule of
Fees and Charges for Exchange
Services in Order To Extend the
Current Pilot Program Regarding
Transaction Fees Charged for Trades
Executed Through the Intermarket
Options Linkage
June 30, 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, NYSE Arca, Inc. (‘‘NYSE Arca’’ 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 substantially by the Exchange.
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 amend its
Schedule of Fees and Charges for
Exchange Services in order to extend
until July 31, 2009 the current pilot
program regarding transaction fees
12 15
U.S.C. 78s(b)(2).
CFR 240.19d–1(c)(2).
14 17 CFR 200.30–3(a)(12) and 17 CFR 200.30–
3(a)(44).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
13 17
8 15
U.S.C. 78f(b)(5).
U.S.C. 78f(b)(1) and 78f(b)(6).
10 15 U.S.C. 78f(b)(7) and 78f(d)(1).
11 17 CFR 240.19d–1(c)(2).
9 15
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Agencies
[Federal Register Volume 73, Number 130 (Monday, July 7, 2008)]
[Notices]
[Pages 38481-38482]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-15197]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-58034; File No. SR-NYSEArca-2008-49]
Self-Regulatory Organizations; NYSE Arca, Inc.; Order Approving
Proposed Rule Change To Amend Minor Rule Plan and Certain Underlying
Rules
June 26, 2008.
I. Introduction
On May 14, 2008, NYSE Arca, Inc. (``NYSE Arca'' or the
``Exchange'') filed with the Securities and Exchange Commission
(``Commission''), pursuant to Section 19(b)(1) of the Securities
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a
proposed rule change to amend NYSE Arca Rule 10.12 (Minor Rule Plan)
(``MRP'') and related rules that underlie the MRP. The proposed rule
change was published for comment in the Federal Register on May 23,
2008.\3\ The Commission received no comments on the proposal. This
order approves the proposal.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ See Securities Exchange Act Release No. 57827 (May 15,
2008), 73 FR 30179 (``Notice'').
---------------------------------------------------------------------------
II. Description of the Proposal
The Exchange proposed to amend its Minor Rule Plan and related
rules that underlie the MRP, including Rules 9.2(c) (Customer Records),
11.1 (Adherence to Law), and 11.18 (Supervision).
Rule 9.2(c)--Customer Records
The Exchange proposed to change Rule 9.2(c) by adding the word
``current,'' to clarify and reiterate the obligation that firms with
customer accounts must not only keep records of their customer
accounts, but also keep them current.
Rule 11.1--Adherence to Law and Good Business Practices
The Exchange designated existing Rule 11.1 as Rule 11.1(a) and
substituted the word ``fair'' in the rule's requirement that certain
actions of ``any OTP Holder or OTP firm shall at all times comply with
fair and equitable principles of trade'' by the word ``just.'' The
Exchange also proposed new Rule 11.1(b), which would require all OTP
Holders and firms, their associated persons, and other participants to
adhere to the principles of good business practice in the conduct of
their business operations.\4\ Violations of Rule
[[Page 38482]]
11.1(b) would be eligible for MRP disposition.
---------------------------------------------------------------------------
\4\ This rule is based on the current NYSE Rule 401(a).
---------------------------------------------------------------------------
Rule 11.18--Supervision
The current language of Rule 11.18(b) provides that only OTP
Holders and firms for whom the Exchange is the Designated Examining
Authority (``DEA'') are subject to its supervisory requirements. The
Exchange proposed to amend Rule 11.18 to provide that all OTP Holders
and firms, regardless of DEA, are subject to the Exchange's supervisory
requirements. The Exchange also proposed to make violations of Rule
11.18 eligible for MRP disposition.
Rule 10.12--Minor Rule Plan
The Exchange proposed to make several modifications to its MRP,
including to:
Make several trading and recordkeeping rules eligible for
MRP disposition.\5\
---------------------------------------------------------------------------
\5\ See Notice, 73 FR at 30180, for a detailed description of
these additions.
---------------------------------------------------------------------------
Modify the Recommended Fine Schedule in Rule 10.12(k) so
that MRP fines are based not on the number of violations but on the
number of times the Exchange has imposed one or more MRP fines upon an
OTP Holder or firm for the violation of a particular rule.
Enable the Exchange to require that violators of Rules
6.94(a) and (c) \6\ not only pay the MRP fines for their violations,
but also disgorge any quantifiable monetary gains attributable to these
violations;
---------------------------------------------------------------------------
\6\ Rules 6.94(a) and (c) require OTP Holders to avoid
violations of its trade-through rules and, where such violation is
unavoidable, to provide satisfaction orders.
---------------------------------------------------------------------------
Allow Exchange enforcement staff, as part of an MRP
disposition of certain supervisory-related offenses, not only to impose
a monetary fine, but also to require the violator to make specified
changes to its supervisory or other compliance procedures; and
Enable the Exchange to require violators of Rule 2.23
(Registration) to remit all the fees that they should have paid in
connection with registration, in addition to any MRP fines.
III. Discussion
The Commission finds that the proposed rule change is consistent
with the requirements of the Act and the rules and regulations
thereunder applicable to a national securities exchange.\7\ In
particular, the Commission believes that the proposed rule change
relating to both the MRP and the related underlying rules is consistent
with Section 6(b)(5) of the Act,\8\ which requires that the rules of an
exchange be designed to promote just and equitable principles of trade,
to remove impediments to and to perfect the mechanism of a free and
open market and a national market system, and, in general, to protect
investors and the public interest.
---------------------------------------------------------------------------
\7\ In approving this proposal, the Commission has considered
its impact on efficiency, competition, and capital formation. See 15
U.S.C. 78c(f).
\8\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
The Commission further believes that the proposed changes to the
Exchange's MRP are consistent with Sections 6(b)(1) and 6(b)(6) of the
Act,\9\ which require that the rules of an exchange enforce compliance
with, and provide appropriate discipline for, violations of Commission
and Exchange rules. In addition, because the MRP provides procedural
rights to contest the fine and permits disciplinary proceedings on the
matter, the Commission believes that the MRP, as amended by this
proposal, provides a fair procedure for the disciplining of members and
persons associated with members, consistent with Sections 6(b)(7) and
6(d)(1) of the Act.\10\ Finally, the Commission finds that the proposal
is consistent with the public interest, the protection of investors, or
otherwise in furtherance of the purposes of the Act, as required by
Rule 19d-1(c)(2) under the Act,\11\ which governs minor rule violation
plans. The Commission believes that the proposed rule change would
strengthen the Exchange's ability to carry out its oversight and
enforcement responsibilities as a self-regulatory organization in cases
where full disciplinary proceedings are unsuitable in view of the minor
nature of the particular violation.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78f(b)(1) and 78f(b)(6).
\10\ 15 U.S.C. 78f(b)(7) and 78f(d)(1).
\11\ 17 CFR 240.19d-1(c)(2).
---------------------------------------------------------------------------
In approving this proposed rule change, the Commission in no way
minimizes the importance of compliance with NYSE Arca rules and all
other rules subject to the imposition of fines under the MRP. The
Commission believes that the violation of any self-regulatory
organization's rules, as well as Commission rules, is a serious matter.
However, the Exchange provides a reasonable means of addressing rule
violations that do not rise to the level of requiring formal
disciplinary proceedings, while providing greater flexibility in
handling certain violations. The Commission expects that the Exchange
would continue to conduct surveillance with due diligence and make a
determination based on its findings, on a case-by-case basis, whether a
fine of more or less than the recommended amount is appropriate for MRP
disposition or whether a violation requires formal disciplinary action.
III. Conclusion
It is therefore ordered, pursuant to Section 19(b)(2) of the Act
\12\ and Rule 19d-1(c)(2) under the Act \13\ that the proposed rule
change (SR-NYSEArca-2008-49) be, and it hereby is, approved and
declared effective.
---------------------------------------------------------------------------
\12\ 15 U.S.C. 78s(b)(2).
\13\ 17 CFR 240.19d-1(c)(2).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
---------------------------------------------------------------------------
\14\ 17 CFR 200.30-3(a)(12) and 17 CFR 200.30-3(a)(44).
---------------------------------------------------------------------------
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-15197 Filed 7-3-08; 8:45 am]
BILLING CODE 8010-01-P