Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending NYSE Rule 431 To Make Permanent the Portfolio Margin Pilot Program, 46116-46117 [E8-18075]

Download as PDF 46116 Federal Register / Vol. 73, No. 153 / Thursday, August 7, 2008 / Notices Comments may be submitted by any of the following methods: SECURITIES AND EXCHANGE COMMISSION 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–2008–65 on the subject line. Paper Comments sroberts on PROD1PC70 with NOTICES • Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549–1090. [Release No. 34–58261; File No. SR–NYSE– 2008–66] Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending NYSE Rule 431 To Make Permanent the Portfolio Margin Pilot Program July 30, 2008. Pursuant to Section 19(b)(1) 1 of the Securities Exchange Act of 1934 (the ‘‘Act’’) 2 and Rule 19b–4 thereunder,3 notice is hereby given that, on July 29, All submissions should refer to File 2008, New York Stock Exchange LLC Number SR–NYSE–2008–65. This file (‘‘NYSE’’ or the ‘‘Exchange’’) filed with number should be included on the the Securities and Exchange subject line if e-mail is used. To help the Commission (the ‘‘Commission’’) the Commission process and review your proposed rule change as described in comments more efficiently, please use Items I and II below, which Items have only one method. The Commission will been substantially prepared by the selfpost all comments on the Commission’s regulatory organization. The Internet Web site (https://www.sec.gov/ Commission is publishing this notice to rules/sro.shtml). Copies of the solicit comments on the proposed rule submission, all subsequent change from interested persons. amendments, all written statements I. Self-Regulatory Organization’s with respect to the proposed rule Statement of the Terms of Substance of change that are filed with the the Proposed Rule Change Commission, and all written communications relating to the The Exchange proposes to amend proposed rule change between the NYSE Rule 431 (‘‘Margin Commission and any person, other than Requirements’’) to make permanent the those that may be withheld from the portfolio margin pilot program set forth public in accordance with the in NYSE Rule 431(g), which permits provisions of 5 U.S.C. 552, will be members to margin certain products available for inspection and copying in according to a prescribed portfolio the Commission’s Public Reference margin methodology. The proposed rule Section, 100 F Street, NE., Washington, change conforms NYSE Rule 431 to DC 20549–1090 on official business proposed amendments filed by the days between the hours of 10 a.m. and Financial Industry Regulatory 3 p.m. Copies of the filing will also be Authority, Inc. (‘‘FINRA’’) to its version available for inspection and copying at of NYSE Rule 431. the NYSE’s principal office and on its Internet Web site at https:// II. Self-Regulatory Organization’s www.nyse.com. All comments received Statement of the Purpose of, and will be posted without change; the Statutory Basis for, the Proposed Rule Commission does not edit personal Change identifying information from In its filing with the Commission, the submissions. You should submit only self-regulatory organization included information that you wish to make statements concerning the purpose of, available publicly. All submissions and basis for, the proposed rule change should refer to File Number SR–NYSE– 2008–65 and should be submitted on or and discussed any comments it received on the proposed rule change. The text before August 28, 2008. of those statements may be examined at For the Commission, by the Division of the places specified in Item IV below. Trading and Markets, pursuant to delegated The Exchange has prepared summaries, 13 authority. set forth in sections A, B, and C below, Florence E. Harmon, of the most significant parts of such Acting Secretary. statements. [FR Doc. E8–18071 Filed 8–6–08; 8:45 am] BILLING CODE 8010–01–P 1 15 U.S.C.78s(b)(1). U.S.C. 78a. 3 17 CFR 240.19b–4. 2 15 13 17 CFR 200.30–3(a)(12). VerDate Aug<31>2005 16:49 Aug 06, 2008 Jkt 214001 PO 00000 Frm 00180 Fmt 4703 Sfmt 4703 A. Self-Regulatory Organization’s Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change 1. Purpose On July 30, 2007, NASD and NYSE Regulation, Inc. (‘‘NYSE Regulation’’) consolidated their member firm regulation operations into a combined organization, FINRA.4 Pursuant to FINRA’s new regulatory responsibilities, FINRA amended its version of NYSE Rule 431(g) to make permanent a portfolio margin pilot program that permits member firms to elect to margin certain products according to a prescribed portfolio margin methodology and is set to expire on July 31, 2008.5 The NYSE is proposing to amend NYSE Rule 431 to conform to the recently filed change to FINRA’s incorporated version of NYSE Rule 431. The implementation date of the proposed rule change is August 1, 2008, which is the implementation date of FINRA’s identical amendments to its version of NYSE Rule 431. 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,6 in that it is designed to prevent fraudulent and manipulative 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. 4 Pursuant to Rule 17d–2 under the Securities Exchange Act of 1934 (the ‘‘Act’’), NYSE, NYSE Regulation, and NASD entered into an agreement (the ‘‘Agreement’’) to reduce regulatory duplication for firms that are members of FINRA and also members of NYSE on or after July 30, 2007 (‘‘Dual Members’’), by allocating to FINRA certain regulatory responsibilities for selected NYSE rules. The Agreement includes a list of all of those rules (‘‘Common Rules’’) for which FINRA has assumed regulatory responsibilities. See Exchange Act Release No. 56148 (July 26, 2007), 72 FR 42146 (August 1, 2007) (Notice of Filing and Order Approving and Declaring Effective a Plan for the Allocation of Regulatory Responsibilities). The Common Rules are the same NYSE rules that FINRA has incorporated into its rulebook. See Exchange Act Release No. 56417 (July 26, 2007), 72 FR 42166 (August 1, 2007) (SR–NASD–2007–054) (Notice of Filing and Order Granting Accelerated Approval of Proposed Rule Change to Incorporate Certain NYSE Rules Relating to Member Firm Conduct). Paragraph 2(b) of the 17d–2 Agreement sets forth procedures regarding proposed changes by either NYSE or FINRA to the substance of any of the Common Rules. 5 See SR–FINRA–2008–041, filed July 25, 2008. 6 15 U.S.C. 78f(b)(5). E:\FR\FM\07AUN1.SGM 07AUN1 Federal Register / Vol. 73, No. 153 / Thursday, August 7, 2008 / Notices 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 Exchange has filed the proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act 7 and Rule 19b–4(f)(6) thereunder.8 Because the proposed rule change does not: (i) Significantly affect the protection of investors or the public interest; (ii) impose any significant burden on competition; and (iii) become operative prior to 30 days from the date on which it was filed, 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 and Rule 19b–4(f)(6)(iii) thereunder.9 A proposed rule change filed under Rule 19b–4(f)(6) 10 normally does not become operative prior to 30 days after the date of the filing. However, pursuant to Rule 19b–4(f)(6)(iii),11 the Commission may designate a shorter time if such action is consistent with the protection of investors and the public interest. The Exchange has asked the Commission to waive the 30-day operative delay so that the proposal may become operative immediately upon filing. The Exchange believes the waiver of this period will allow it to immediately conform NYSE Rule 431 to FINRA’s proposed amendments to its version of NYSE Rule 431, in furtherance of the consolidation of the member firm regulation functions of 7 15 U.S.C. 78s(b)(3)(A)(iii). CFR 240.19b–4(f)(6). 9 17 CFR 240.19b–4(f)(6)(iii). In addition, Rule 19b–4(f)(6)(iii) requires the Exchange to give the Commission written notice of the Exchange’s 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 requested and the Commission has agreed waive this pre-filing requirement. 10 17 CFR 240.19b–4(f)(6). 11 17 CFR 240.19b–4(f)(6)(iii). sroberts on PROD1PC70 with NOTICES 8 17 VerDate Aug<31>2005 16:49 Aug 06, 2008 Jkt 214001 46117 NYSE Regulation and NASD. As provided in paragraph 2(b) of the Agreement, FINRA and NYSE will, absent a disagreement about the substance of a proposed rule change to one of the Common Rules, promptly propose conforming changes to ensure that such rules continue to be Common Rules under the Agreement. The Commission believes that waiving the 30-day operative delay is consistent with the protection of investors and the public interest because such waiver will allow the customer portfolio margining program to continue uninterrupted as it would otherwise expire on July 31, 2008.12 Accordingly, the Commission designates the proposed rule change effective upon filing with the Commission. At any time within 60 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. 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 Section, 100 F Street, NE., Washington, DC 20549–1090 on official business days between the hours of 10 a.m. and 3 p.m. Copies of the filing will also be available for inspection and copying at the NYSE’s principal office and on its Internet Web site at www.nyse.com. 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–2008–66 and should be submitted on or before August 28, 2008. 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: For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.13 Florence E. Harmon, Acting Secretary. [FR Doc. E8–18075 Filed 8–6–08; 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–2008–66 on the subject line. SECURITIES AND EXCHANGE COMMISSION 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–2008–66. 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 12 For purposes only of waiving the operative delay for this proposal, the Commission has considered the proposed rule’s impact on efficiency, competition and capital formation. See 15 U.S.C. 78c(f). PO 00000 Frm 00181 Fmt 4703 Sfmt 4703 BILLING CODE 8010–01–P [Release No. 34–58285; File No. SR–NYSE– 2008–60] Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing of Proposed Rule Change and Amendment No. 1 Thereto in Connection With the Proposed Acquisition of The Amex Membership Corporation August 1, 2008. Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Exchange Act’’) 1 and Rule 19b–4 thereunder,2 notice is hereby given that on July 23, 2008, the New York Stock Exchange LLC (‘‘NYSE’’ or ‘‘Exchange’’), a New York limited liability company and registered national securities 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 substantially prepared by the 13 17 CFR 200.30–3(a)(12). U.S.C.78s(b)(1). 2 17 CFR 240.19b–4. 1 15 E:\FR\FM\07AUN1.SGM 07AUN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 73, Number 153 (Thursday, August 7, 2008)]
[Notices]
[Pages 46116-46117]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-18075]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-58261; File No. SR-NYSE-2008-66]


 Self-Regulatory Organizations; New York Stock Exchange LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
Amending NYSE Rule 431 To Make Permanent the Portfolio Margin Pilot 
Program

July 30, 2008.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby 
given that, on July 29, 2008, New York Stock Exchange LLC (``NYSE'' or 
the ``Exchange'') filed with the Securities and Exchange Commission 
(the ``Commission'') the proposed rule change as described in Items I 
and II below, which Items have been substantially prepared by the self-
regulatory organization. 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\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend NYSE Rule 431 (``Margin 
Requirements'') to make permanent the portfolio margin pilot program 
set forth in NYSE Rule 431(g), which permits members to margin certain 
products according to a prescribed portfolio margin methodology. The 
proposed rule change conforms NYSE Rule 431 to proposed amendments 
filed by the Financial Industry Regulatory Authority, Inc. (``FINRA'') 
to its version of NYSE Rule 431.

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 self-regulatory organization 
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 those 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 parts of such statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    On July 30, 2007, NASD and NYSE Regulation, Inc. (``NYSE 
Regulation'') consolidated their member firm regulation operations into 
a combined organization, FINRA.\4\ Pursuant to FINRA's new regulatory 
responsibilities, FINRA amended its version of NYSE Rule 431(g) to make 
permanent a portfolio margin pilot program that permits member firms to 
elect to margin certain products according to a prescribed portfolio 
margin methodology and is set to expire on July 31, 2008.\5\ The NYSE 
is proposing to amend NYSE Rule 431 to conform to the recently filed 
change to FINRA's incorporated version of NYSE Rule 431.
---------------------------------------------------------------------------

    \4\ Pursuant to Rule 17d-2 under the Securities Exchange Act of 
1934 (the ``Act''), NYSE, NYSE Regulation, and NASD entered into an 
agreement (the ``Agreement'') to reduce regulatory duplication for 
firms that are members of FINRA and also members of NYSE on or after 
July 30, 2007 (``Dual Members''), by allocating to FINRA certain 
regulatory responsibilities for selected NYSE rules. The Agreement 
includes a list of all of those rules (``Common Rules'') for which 
FINRA has assumed regulatory responsibilities. See Exchange Act 
Release No. 56148 (July 26, 2007), 72 FR 42146 (August 1, 2007) 
(Notice of Filing and Order Approving and Declaring Effective a Plan 
for the Allocation of Regulatory Responsibilities). The Common Rules 
are the same NYSE rules that FINRA has incorporated into its 
rulebook. See Exchange Act Release No. 56417 (July 26, 2007), 72 FR 
42166 (August 1, 2007) (SR-NASD-2007-054) (Notice of Filing and 
Order Granting Accelerated Approval of Proposed Rule Change to 
Incorporate Certain NYSE Rules Relating to Member Firm Conduct). 
Paragraph 2(b) of the 17d-2 Agreement sets forth procedures 
regarding proposed changes by either NYSE or FINRA to the substance 
of any of the Common Rules.
    \5\ See SR-FINRA-2008-041, filed July 25, 2008.
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    The implementation date of the proposed rule change is August 1, 
2008, which is the implementation date of FINRA's identical amendments 
to its version of NYSE Rule 431.
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,\6\ in that 
it is designed to prevent fraudulent and manipulative 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.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78f(b)(5).

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[[Page 46117]]

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 Exchange has filed the proposed rule change pursuant to Section 
19(b)(3)(A)(iii) of the Act \7\ and Rule 19b-4(f)(6) thereunder.\8\ 
Because the proposed rule change does not: (i) Significantly affect the 
protection of investors or the public interest; (ii) impose any 
significant burden on competition; and (iii) become operative prior to 
30 days from the date on which it was filed, 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 and Rule 19b-
4(f)(6)(iii) thereunder.\9\
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    \7\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \8\ 17 CFR 240.19b-4(f)(6).
    \9\ 17 CFR 240.19b-4(f)(6)(iii). In addition, Rule 19b-
4(f)(6)(iii) requires the Exchange to give the Commission written 
notice of the Exchange's 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 requested and the Commission has agreed 
waive this pre-filing requirement.
---------------------------------------------------------------------------

    A proposed rule change filed under Rule 19b-4(f)(6) \10\ normally 
does not become operative prior to 30 days after the date of the 
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\11\ the Commission 
may designate a shorter time if such action is consistent with the 
protection of investors and the public interest. The Exchange has asked 
the Commission to waive the 30-day operative delay so that the proposal 
may become operative immediately upon filing. The Exchange believes the 
waiver of this period will allow it to immediately conform NYSE Rule 
431 to FINRA's proposed amendments to its version of NYSE Rule 431, in 
furtherance of the consolidation of the member firm regulation 
functions of NYSE Regulation and NASD. As provided in paragraph 2(b) of 
the Agreement, FINRA and NYSE will, absent a disagreement about the 
substance of a proposed rule change to one of the Common Rules, 
promptly propose conforming changes to ensure that such rules continue 
to be Common Rules under the Agreement. The Commission believes that 
waiving the 30-day operative delay is consistent with the protection of 
investors and the public interest because such waiver will allow the 
customer portfolio margining program to continue uninterrupted as it 
would otherwise expire on July 31, 2008.\12\ Accordingly, the 
Commission designates the proposed rule change effective upon filing 
with the Commission.
---------------------------------------------------------------------------

    \10\ 17 CFR 240.19b-4(f)(6).
    \11\ 17 CFR 240.19b-4(f)(6)(iii).
    \12\ For purposes only of waiving the operative delay for this 
proposal, the Commission has considered the proposed rule's impact 
on efficiency, competition and capital formation. See 15 U.S.C. 
78c(f).
---------------------------------------------------------------------------

    At any time within 60 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:

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-2008-66 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-2008-66. 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 Section, 100 F Street, 
NE., Washington, DC 20549-1090 on official business days between the 
hours of 10 a.m. and 3 p.m. Copies of the filing will also be available 
for inspection and copying at the NYSE's principal office and on its 
Internet Web site at www.nyse.com. 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-2008-66 and should be submitted on or before August 
28, 2008.
---------------------------------------------------------------------------

    \13\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\13\
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-18075 Filed 8-6-08; 8:45 am]
BILLING CODE 8010-01-P

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