Self-Regulatory Organizations; National Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to the Operative Date of NSX Rule 2.11, 49227-49228 [E8-19228]

Download as PDF Federal Register / Vol. 73, No. 162 / Wednesday, August 20, 2008 / Notices 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 Amendments also will be available for inspection and copying at the principal office of the CTA. 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–CTA/CQ–2008–02 and should be submitted on or before September 10, 2008. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.7 Florence E. Harmon, Acting Secretary. [FR Doc. E8–19229 Filed 8–19–08; 8:45 am] SECURITIES AND EXCHANGE COMMISSION [Release No. 34–58354; File No. SR–NSX– 2008–15] Self-Regulatory Organizations; National Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to the Operative Date of NSX Rule 2.11 August 13, 2008. dwashington3 on PRODPC61 with NOTICES Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the ‘‘Act’’) 1 and Rule 19b–4 thereunder,2 notice is hereby given that on August 8, 2008, National Stock Exchange, Inc. (‘‘NSX’’ or the ‘‘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 by the Exchange. The Commission is publishing this notice to solicit comment 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 National Stock Exchange, Inc. (‘‘NSX’’ or the ‘‘Exchange’’) is proposing to accelerate the effectiveness of NSX Rule 2.11 in order to implement outbound routing through NSX Securities, LLC (‘‘NSX Securities’’) and CFR 200.30–3(a)(27). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 VerDate Aug<31>2005 15:36 Aug 19, 2008 Jkt 214001 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 and discussed any comments it received on 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 parts of such statements. A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change BILLING CODE 8010–01–P 7 17 to amend NSX Rule 2.12 which relates to the Exchange’s provision of routing services procured from a third party. The text of the proposed rule change is available on the Exchange’s Web site at http://www.nsx.com, at the principal office of the Exchange, and at the Commission’s Public Reference Room. 1. Purpose The Exchange is proposing to accelerate the effectiveness of NSX Rule 2.11 in order to implement outbound routing with respect to orders entered in the Exchange’s trading system, NSX BLADE , through an affiliate of the Exchange, NSX Securities. In addition, the Exchange proposes to amend NSX Rule 2.12 which relates to the Exchange’s current provision of outbound routing of orders from the Exchange to other trading centers (‘‘Routing Services’’) using a third party. As background, the Exchange originally planned to provide Routing Services for orders entered into NSX BLADE through NSX Securities. NSX Rule 2.11 was approved by the Securities and Exchange Commission (‘‘Commission’’) in connection with the approval of the Exchange’s new trading rules relating to NSX BLADE on August 31, 2006.3 The ability to route orders entered into NSX BLADE to away markets for execution at the best available prices is a key feature of NSX’s new system. NSX Rule 2.11 specifically provides for certain terms and conditions under which NSX Securities will provide Routing Services. Among other things, an ETP Holder’s use of NSX Securities to route orders to 3 See Securities Exchange Act Release No. 54391 (August 31, 2006), 71 FR 52836 (September 7, 2006), File No. SR–NSX–2006–08. This rule change filing was filed under Section 19(b)(2) of the Securities Exchange Act of 1934 (the ‘‘Act’’). PO 00000 Frm 00069 Fmt 4703 Sfmt 4703 49227 another Trading Center is optional. ETP Holders that do not want to route orders through NSX Securities may submit order instructions to NSX under NSX Rule 11.11 such as Immediate-orCancel, Post Only or NSX Only. However, as NSX Securities had not completed its registration process as a broker-dealer with the National Association of Securities Dealers, Inc. (‘‘NASD’’) (and thus would not be available to provide Routing Services) by the launch of NSX BLADE,4 the Exchange proposed the adoption of NSX Rule 2.12 so that the Exchange could route through a third party in the interim period.5 In the adoption of Rule 2.12, the Exchange requested a finite period of effectiveness so NSX Securities could complete its registration as a broker-dealer and the Exchange could evaluate its options for providing Routing Services to ETP Holders. The Exchange subsequently filed several rule change proposals to extend the effective period for NSX Rule 2.12, and to delay the effectiveness of NSX Rule 2.11 to certain dates, unless earlier amended, while the Exchange considered its options and made system and other changes to implement outbound routing through NSX Securities.6 Rule 2.12 currently provides that it is effective through September 30, 2008, with the ability to route through NSX Securities under Rule 2.11 becoming effective on October 1, 2008. In the instant proposed rule change, the Exchange is requesting that the operative date of Rule 2.11 be accelerated to August 8, 2008. The Exchange and NSX Securities have made all necessary changes to activate NSX Securities, including NSX Securities being approved as a brokerdealer, entering into a clearing and routing agreement, and making the required systems and regulatory changes. Further, because the current Rule 2.12 is effective until September 30, 2008, the Exchange proposes to amend NSX Rule 2.12 to provide that during that period it be operative only in the event that the Exchange is not 4 In January 2007, NSX Securities’ application for registration as a broker-dealer was approved by the NASD. To date, the Exchange has not used NSX Securities for routing services. 5 See Securities Exchange Act Release No. 54808 (November 21, 2006), 71 FR 69163 (November 29, 2006), File No. SR–NSX–2006–15. 6 See Securities Exchange Act Release No. 55624 (April 12, 2007), 72 FR 19732 (April 19, 2007), File No. SR–NSX–2007–04; Securities Exchange Act Release No. 56067 (July 13, 2007), 72 FR 39650 (July 19, 2007), File No. SR–NSX–2007–08; Securities Exchange Act Release No. 56587 (October 1, 2007), 72 FR 57087 (October 5, 2007), File No. SR–NSX–2007–10; and Securities Exchange Act Release No. 57574 (March 27, 2008), 73 FR 18026 (April 2, 2008), File No. SR–NSX–2008–08. E:\FR\FM\20AUN1.SGM 20AUN1 49228 Federal Register / Vol. 73, No. 162 / Wednesday, August 20, 2008 / Notices able to provide Routing Services through Rule 2.11. Thus, an alternative router would be available as necessary, and on an all-or-none basis, in the course of transitioning the Routing Services to NSX Securities under Rule 2.11. This rule change proposal does not change Rule 2.12’s current expiration of September 30, 2008. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with the provisions of Section 6(b) of the Act,7 in general, and Section 6(b)(5) of the Act,8 in particular, which requires, among other things, that the rules of an exchange be 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. B. Self-Regulatory Organization’s Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any inappropriate burden on competition. C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants or Others The Exchange has neither solicited nor received written comments on the proposed rule change. dwashington3 on PRODPC61 with NOTICES III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The proposed rule change will take effect upon filing pursuant to Section 19(b)(3)(A)(iii) of the Act 9 and subparagraph (f)(5) of Rule 19b–4 10 thereunder, because the proposal effects a change in an existing order-entry system or trading system of a selfregulatory organization that: (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 have the effect of limiting the access to or availability of the system. This proposal does not raise these concerns as it primarily pertains to the operative date of a rule that has already been approved by the Commission through a rule change filed under Section 19(b)(2) of the Act. At any time within sixty (60) days of the filing of such proposed rule 7 15 U.S.C. 78f(b). U.S.C. 78f(b)(5). 9 15 U.S.C. 78s(b)(3)(A)(iii). 10 17 CFR 240.19b–4. 8 15 VerDate Aug<31>2005 15:36 Aug 19, 2008 Jkt 214001 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 (http://www.sec.gov/ rules/sro.shtml); or • Send an e-mail to rulecomments@sec.gov. Please include File Number SR–NSX–2008–15 on the subject line. 2008–15 and should be submitted on or before September 10, 2008. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.11 Florence E. Harmon, Acting Secretary. [FR Doc. E8–19228 Filed 8–19–08; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [File No. 500–1] In the Matter of Pacific Gateway Exchange, Inc., Pallet Management Systems, Inc., Panaco, Inc., Paragon Financial Corp. (n/k/a NewMarket Latin America, Inc.), and Patriot Motorcycle Corp.; Order of Suspension of Trading August 18, 2008 It appears to the Securities and Exchange Commission that there is a Paper Comments lack of current and accurate information concerning the securities of Pacific • Send paper comments in triplicate Gateway Exchange, Inc. because it has to Secretary, Securities and Exchange not filed any periodic reports since the Commission, 100 F Street, NE., period ended September 30, 2000. Washington, DC 20549–1090. It appears to the Securities and All submissions should refer to File Exchange Commission that there is a Number SR–NSX–2008–15. This file lack of current and accurate information number should be included on the concerning the securities of Pallet subject line if e-mail is used. To help the Management Systems, Inc. because it Commission process and review your has not filed any periodic reports since comments more efficiently, please use the period ended September 28, 2002. only one method. The Commission will It appears to the Securities and post all comments on the Commission’s Exchange Commission that there is a Internet Web site (http://www.sec.gov/ lack of current and accurate information rules/sro.shtml). Copies of the concerning the securities of Panaco, Inc. submission, all subsequent because it has not filed any periodic amendments, all written statements reports since the period ended March with respect to the proposed rule 31, 2002. change that are filed with the It appears to the Securities and Commission, and all written Exchange Commission that there is a communications relating to the lack of current and accurate information proposed rule change between the concerning the securities of Paragon Commission and any person, other than Financial Corp. (n/k/a NewMarket Latin those that may be withheld from the America, Inc.) because it has not filed public in accordance with the any periodic reports since the period provisions of 5 U.S.C. 552, will be ended December 31, 2005. available for inspection and copying in It appears to the Securities and the Commission’s Public Reference Exchange Commission that there is a Room, 100 F Street, NE., Washington, lack of current and accurate information DC 20549, on official business days concerning the securities of Patriot between the hours of 10 a.m. and 3 p.m. Motorcycle Corp. because it has not Copies of the filing also will be available filed any periodic reports since the for inspection and copying at the period ended December 31, 2005. principal office of the self-regulatory The Commission is of the opinion that organization. All comments received the public interest and the protection of will be posted without change; the investors require a suspension of trading Commission does not edit personal in the securities of the above-listed identifying information from companies. submissions. You should submit only Therefore, it is ordered, pursuant to information that you wish to make Section 12(k) of the Securities Exchange available publicly. All submissions 11 17 CFR 200.30–3(a)(12). should refer to File Number SR–NSX– PO 00000 Frm 00070 Fmt 4703 Sfmt 4703 E:\FR\FM\20AUN1.SGM 20AUN1

Agencies

[Federal Register Volume 73, Number 162 (Wednesday, August 20, 2008)]
[Notices]
[Pages 49227-49228]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-19228]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-58354; File No. SR-NSX-2008-15]


Self-Regulatory Organizations; National Stock Exchange, Inc.; 
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change 
Relating to the Operative Date of NSX Rule 2.11

August 13, 2008.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(the ``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given 
that on August 8, 2008, National Stock Exchange, Inc. (``NSX[reg]'' or 
the ``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 by the Exchange. The 
Commission is publishing this notice to solicit comment on the proposed 
rule change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 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 National Stock Exchange, Inc. (``NSX'' or the ``Exchange'') is 
proposing to accelerate the effectiveness of NSX Rule 2.11 in order to 
implement outbound routing through NSX Securities, LLC (``NSX 
Securities'') and to amend NSX Rule 2.12 which relates to the 
Exchange's provision of routing services procured from a third party.
    The text of the proposed rule change is available on the Exchange's 
Web site at http://www.nsx.com, at the principal office of the 
Exchange, 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 and 
discussed any comments it received on 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 parts 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 is proposing to accelerate the effectiveness of NSX 
Rule 2.11 in order to implement outbound routing with respect to orders 
entered in the Exchange's trading system, NSX BLADE [reg], through an 
affiliate of the Exchange, NSX Securities. In addition, the Exchange 
proposes to amend NSX Rule 2.12 which relates to the Exchange's current 
provision of outbound routing of orders from the Exchange to other 
trading centers (``Routing Services'') using a third party.
    As background, the Exchange originally planned to provide Routing 
Services for orders entered into NSX BLADE through NSX Securities. NSX 
Rule 2.11 was approved by the Securities and Exchange Commission 
(``Commission'') in connection with the approval of the Exchange's new 
trading rules relating to NSX BLADE on August 31, 2006.\3\ The ability 
to route orders entered into NSX BLADE to away markets for execution at 
the best available prices is a key feature of NSX's new system. NSX 
Rule 2.11 specifically provides for certain terms and conditions under 
which NSX Securities will provide Routing Services. Among other things, 
an ETP Holder's use of NSX Securities to route orders to another 
Trading Center is optional. ETP Holders that do not want to route 
orders through NSX Securities may submit order instructions to NSX 
under NSX Rule 11.11 such as Immediate-or-Cancel, Post Only or NSX 
Only.
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    \3\ See Securities Exchange Act Release No. 54391 (August 31, 
2006), 71 FR 52836 (September 7, 2006), File No. SR-NSX-2006-08. 
This rule change filing was filed under Section 19(b)(2) of the 
Securities Exchange Act of 1934 (the ``Act'').
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    However, as NSX Securities had not completed its registration 
process as a broker-dealer with the National Association of Securities 
Dealers, Inc. (``NASD'') (and thus would not be available to provide 
Routing Services) by the launch of NSX BLADE,\4\ the Exchange proposed 
the adoption of NSX Rule 2.12 so that the Exchange could route through 
a third party in the interim period.\5\ In the adoption of Rule 2.12, 
the Exchange requested a finite period of effectiveness so NSX 
Securities could complete its registration as a broker-dealer and the 
Exchange could evaluate its options for providing Routing Services to 
ETP Holders. The Exchange subsequently filed several rule change 
proposals to extend the effective period for NSX Rule 2.12, and to 
delay the effectiveness of NSX Rule 2.11 to certain dates, unless 
earlier amended, while the Exchange considered its options and made 
system and other changes to implement outbound routing through NSX 
Securities.\6\ Rule 2.12 currently provides that it is effective 
through September 30, 2008, with the ability to route through NSX 
Securities under Rule 2.11 becoming effective on October 1, 2008.
---------------------------------------------------------------------------

    \4\ In January 2007, NSX Securities' application for 
registration as a broker-dealer was approved by the NASD. To date, 
the Exchange has not used NSX Securities for routing services.
    \5\ See Securities Exchange Act Release No. 54808 (November 21, 
2006), 71 FR 69163 (November 29, 2006), File No. SR-NSX-2006-15.
    \6\ See Securities Exchange Act Release No. 55624 (April 12, 
2007), 72 FR 19732 (April 19, 2007), File No. SR-NSX-2007-04; 
Securities Exchange Act Release No. 56067 (July 13, 2007), 72 FR 
39650 (July 19, 2007), File No. SR-NSX-2007-08; Securities Exchange 
Act Release No. 56587 (October 1, 2007), 72 FR 57087 (October 5, 
2007), File No. SR-NSX-2007-10; and Securities Exchange Act Release 
No. 57574 (March 27, 2008), 73 FR 18026 (April 2, 2008), File No. 
SR-NSX-2008-08.
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    In the instant proposed rule change, the Exchange is requesting 
that the operative date of Rule 2.11 be accelerated to August 8, 2008. 
The Exchange and NSX Securities have made all necessary changes to 
activate NSX Securities, including NSX Securities being approved as a 
broker-dealer, entering into a clearing and routing agreement, and 
making the required systems and regulatory changes. Further, because 
the current Rule 2.12 is effective until September 30, 2008, the 
Exchange proposes to amend NSX Rule 2.12 to provide that during that 
period it be operative only in the event that the Exchange is not

[[Page 49228]]

able to provide Routing Services through Rule 2.11. Thus, an 
alternative router would be available as necessary, and on an all-or-
none basis, in the course of transitioning the Routing Services to NSX 
Securities under Rule 2.11. This rule change proposal does not change 
Rule 2.12's current expiration of September 30, 2008.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the provisions of Section 6(b) of the Act,\7\ in general, and 
Section 6(b)(5) of the Act,\8\ in particular, which requires, among 
other things, that the rules of an exchange be 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.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
impose any inappropriate burden on competition.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants or Others

    The Exchange has neither solicited nor received written comments on 
the proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The proposed rule change will take effect upon filing pursuant to 
Section 19(b)(3)(A)(iii) of the Act \9\ and subparagraph (f)(5) of Rule 
19b-4 \10\ thereunder, because the proposal effects a change in an 
existing order-entry system or trading system of a self-regulatory 
organization that: (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 have the effect of limiting 
the access to or availability of the system. This proposal does not 
raise these concerns as it primarily pertains to the operative date of 
a rule that has already been approved by the Commission through a rule 
change filed under Section 19(b)(2) of the Act. At any time within 
sixty (60) days of the filing of such 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.
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    \9\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \10\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

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 (http://
www.sec.gov/rules/sro.shtml); or
     Send an e-mail to rule-comments@sec.gov. Please include 
File Number SR-NSX-2008-15 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-NSX-2008-15. 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 (http://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 the filing also will be available for 
inspection and copying at the principal office of the self-regulatory 
organization. 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-NSX-
2008-15 and should be submitted on or before September 10, 2008.


    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-19228 Filed 8-19-08; 8:45 am]
BILLING CODE 8010-01-P