Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Extend the Operation of Reserve Orders on the Exchange to the Earlier of December 31, 2008 or the Date on Which the Commission Approves the Exchange's Filing Pursuant to SR-NYSE-2008-46, 59017-59019 [E8-23756]
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Federal Register / Vol. 73, No. 196 / Wednesday, October 8, 2008 / Notices
public interest, the proposed rule
change has become effective pursuant to
Section 19(b)(3)(A) of the Act 6 and Rule
19b–4(f)(6) 7 thereunder.
A proposed rule change filed under
Rule 19b–4(f)(6) normally does not
become operative for 30 days after the
date of filing. However, Rule 19b–
4(f)(6)(iii) permits the Commission to
designate a shorter time if such action
is consistent with the protection of
investors and the public interest. The
Exchange requests 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.8
Previously, the Commission approved
an order type similar to the one
proposed,9 and this proposal does not
raise any novel issues. For these
reasons, the Commission designates the
proposed rule change as operative upon
filing.
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.10
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
6 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires a self-regulatory organization to
provide the Commission with 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 fulfilled this requirement.
8 For purposes only of waiving the 30-day
operative delay, the Commission has also
considered the proposed rule’s effect on efficiency,
competition, and capital formation. See 15 U.S.C.
78c(f).
9 See Securities Exchange Act Release No. 56072
(July 13, 2007), 72 FR 39867 (July 20, 2007), (SR–
NYSEArca–2007–61) (adopting Mid-Point Passive
Liquidity Order with minimum quantity; Securities
Exchange Act Release No. 56790 (November 15,
2007), 72 FR 65797 (November 23, 2007), (SR–
NYSEArca–2007–113) (reducing Mid-Point Passive
Liquidity Order’s minimum executable size from
1000 to 100).
10 15 U.S.C. 78s(b)(3)(C).
jlentini on PROD1PC65 with NOTICES
7 17
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18:10 Oct 07, 2008
Jkt 217001
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–NSX–2008–16 on the
subject line.
Paper Comments
59017
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–58708; File No. SR-NYSE–
2008–92]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing and Immediate Effectiveness of
a Proposed Rule Change To Extend
the Operation of Reserve Orders on
All submissions should refer to File
the Exchange to the Earlier of
Number SR–NSX–2008–16. This file
December 31, 2008 or the Date on
number should be included on the
Which the Commission Approves the
subject line if e-mail is used. To help the Exchange’s Filing Pursuant to SR–
Commission process and review your
NYSE–2008–46
comments more efficiently, please use
only one method. The Commission will October 1, 2008.
post all comments on the Commission’s
Pursuant to Section 19(b)(1) of the
Internet Web site (https://www.sec.gov/
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule19b-4 thereunder,2
rules/sro.shtml). Copies of the
notice is hereby given that on
submission, all subsequent
September 29, 2008, New York Stock
amendments, all written statements
Exchange LLC (‘‘NYSE’’ or the
with respect to the proposed rule
‘‘Exchange’’) filed with the Securities
change that are filed with the
and Exchange Commission
Commission, and all written
(‘‘Commission’’) the proposed rule
communications relating to the
change as described in Items I and II
proposed rule change between the
Commission and any person, other than below, which Items have been prepared
by the Exchange. The Commission is
those that may be withheld from the
publishing this notice to solicit
public in accordance with the
comments on the proposed rule change
provisions of 5 U.S.C. 552, will be
from interested persons.
available for inspection and copying in
the Commission’s Public Reference
I. Self-Regulatory Organization’s
Room, 100 F Street, NE., Washington,
Statement of the Terms of Substance of
DC 20549, on official business days
the Proposed Rule Change
between the hours of 10 a.m. and 3 p.m.
The Exchange proposes to extend the
Copies of the filing will also be available
operation of Reserve Orders on the
for inspection and copying at the
Exchange to the earlier of December 31,
principal office of the self-regulatory
2008 or the date on which the
organization. All comments received
Commission approves the Exchange’s
will be posted without change; the
filing pursuant to SR–NYSE–2008–46.
Commission does not edit personal
The text of the proposed rule change is
identifying information from
available at NYSE, https://
submissions. You should submit only
www.nyse.com, and the Commission’s
information that you wish to make
Public Reference Room.
available publicly. All submissions
II. Self-Regulatory Organization’s
should refer to File Number SR–NSX–
2008–16 and should be submitted on or Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
before October 29, 2008.
Change
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street, NE.,
Washington, DC 20549–1090.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–23765 Filed 10–7–08; 8:45 am]
BILLING CODE 8011–01–P
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 aspects of such
statements.
1 15
11 17
PO 00000
CFR 200.30–3(a)(12).
Frm 00094
Fmt 4703
Sfmt 4703
2 17
E:\FR\FM\08OCN1.SGM
U.S.C. 78s(b)(1).
CFR 240.19b-4.
08OCN1
59018
Federal Register / Vol. 73, No. 196 / Wednesday, October 8, 2008 / Notices
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The New York Stock Exchange LLC
(‘‘NYSE’’ or the ‘‘Exchange’’) proposes
to amend NYSE Rule 13 to extend the
operation of its Reserve Order pilot to
the earlier of December 31, 2008 or the
approval date of the Exchange’s New
Market Model 3 pilot.
jlentini on PROD1PC65 with NOTICES
Background
Reserve Orders were approved by the
Commission on April 18, 2008 4 and
instituted on the Exchange on April 23,
2008. Reserve Orders are limit orders
available to all market participants that
enable them to maintain non-displayed
liquidity on the Exchange’s Display
Book system (‘‘Display Book’’) for
execution.5 A portion of the interest
represented by a Reserve Order is
published (displayed) when it is or
becomes the Exchange best bid or offer,
while the remaining interest is not
displayed, i.e., is held in ‘‘reserve.’’ This
reserved portion is used to replenish the
displayed amount (which is required to
be at least one round lot) when trades
reduce or exhaust such displayed
interest. Both displayed and reserve
interest is available for automatic
execution on the Exchange. With
respect to the portion of Reserve Orders
that is not displayed, this interest is
available for execution only after all
displayed interest at the Exchange bid
or offer has been executed.
Reserve Orders are also available for
manual execution. While the majority of
transactions on the Exchange are
executed electronically, there are times
when manual execution is required. In
these situations, specialists seek
information on the available interest at
various price points to determine the
3 See Securities Exchange Act Release No. 58184
(July 17, 2008), 73 FR 42853 (July 23, 2008) (SR–
NYSE–2008–46) (‘‘New Market Model filing’’).
4 See Securities Exchange Act Release No. 57688
(April 18, 2008), 73 FR 22194 (April 24, 2008) (SR–
NYSE–2008–30). The pilot initially operated in 100
NYSE-traded securities. The Exchange subsequently
filed with the Commission to expand the operation
of the pilot to all NYSE-traded securities. See
Securities Exchange Act Release No. 57792 (May 7,
2008), 73 FR 27601 (May 13, 2008) (SR–NYSE–
2008–36).
5 The Display Book system is an order
management and execution facility. The Display
Book system receives and displays orders to the
specialists, contains the Book, and provides a
mechanism to execute and report transactions and
publish the results to the Consolidated Tape. The
Display Book system is connected to a number of
other Exchange systems for the purposes of
comparison, surveillance, and reporting
information to customers and other market data and
national market systems.
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18:10 Oct 07, 2008
Jkt 217001
appropriate price at which to complete
the manual execution. As with reserve
interest in a Floor broker’s agency
interest file, information on reserve
interest entered directly into Exchange
systems through Reserve Orders will be
made available to the specialist only in
the aggregate at each price point for the
express purpose of the specialist
effecting a manual execution. The
reserve interest is not distinguished
from other interest available to be
executed at a specific price point.
Rather, Exchange systems display to the
specialist the total number of shares
available for execution at the price point
and include reserve interest in the total
number. In this manner such reserve
interest will be available for trades that
take place on the Floor of the Exchange
that will not be conducted
automatically.
Extension of the Reserve Order Pilot
The Exchange has proposed in the
New Market Model filing to expand
Reserve Orders to include a Minimum
Display Reserve Order and a NonDisplayed Reserve Order. The latter type
of reserve interest for all market
participants would not have any of the
order designated for display. The
Exchange proposed to create the NonDisplayed Reserve Order for Off-Floor
participants and provide Floor brokers
and specialists 6 with equivalent
functionality.7
The Reserve Order type currently
operating on the Exchange has been
accepted by the Exchange’s customer
base and is currently being used
actively. The Exchange believes that by
providing all market participants with
the ability to maintain non-displayed
liquidity on the Display Book
encourages market participants to post
liquidity and thus offers Exchange
customers additional opportunities for
price improvement by expanding the
interest available to execute against
incoming orders at a single price. The
Exchange therefore seeks to continue
the pilot for Reserve Orders with a
minimum display requirement until the
earlier of December 31, 2008 or such
time as the New Market Model filing is
approved.
6 In the New Market Model, specialists will be
replaced by ‘‘designated market makers’’ or
‘‘DMMs’’.
7 See New Market Model filing, Securities
Exchange Act Release No. 58184 (July 17, 2008), 73
FR 42853 (July 23, 2008) (SR–NYSE–2008–46).
Fmt 4703
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 proposed rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act9 and Rule 19b–4(f)(6)
thereunder10 because the foregoing
proposed rule change: (1) Does not
significantly affect the protection of
investors or the public interest; (2) does
not impose any significant burden on
competition; and (3) by its terms, does
not become operative for 30 days after
the date of filing, or such shorter time
as the Commission may designate if
consistent with the protection of
investors and the public interest.
A proposed rule change filed under
Rule 19b–4(f)(6) normally may not
become operative prior to 30 days after
the date of filing.11 However, Rule 19b–
4(f)(6)(iii) permits the Commission to
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, as
specified in Rule 19b–4(f)(6)(iii),12
which would make the rule change
effective and operative upon filing. The
Commission believes that waiving the
U.S.C. 78f(b)(5).
U.S.C. 78s(b)(3)(A).
10 17 CFR 240.19b–4(f)(6).
11 17 CFR 240.19b–4(f)(6)(iii). In addition, Rule
19b–4(f)(6)(iii) requires the self-regulatory
organization to give the Commission 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.
NYSE has satisfied this requirement.
12 17 CFR 240.19b–4(f)(6)(iii).
9 15
The Exchange believes the proposed
rule change is consistent with and
furthers the objectives of Section
Frm 00095
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.
8 15
2. Statutory Basis
PO 00000
6(b)(5) 8 of the Act, 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.
Sfmt 4703
E:\FR\FM\08OCN1.SGM
08OCN1
Federal Register / Vol. 73, No. 196 / Wednesday, October 8, 2008 / Notices
30-day operative delay is consistent
with the protection of investors and the
public interest because the proposal is
designed to extend the operation of the
existing Reserve Order pilot without
interruption. Extending the Reserve
Order pilot would continue to enable
off-Floor market participants to compete
through their ability to maintain nondisplayed liquidity on the Exchange’s
Display Book system. Accordingly, the
Commission designates the proposed
rule change effective and operative
upon filing with the Commission.13
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:
jlentini on PROD1PC65 with NOTICES
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–2008–92 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, Station Place, 100 F Street,
NE., Washington, DC 20549–1090.
All submissions should refer to File
Number SR–NYSE–2008–92. 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
13 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. See 15 U.S.C. 78c(f).
VerDate Aug<31>2005
18:10 Oct 07, 2008
Jkt 217001
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
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 publicly available. All
submissions should refer to File
Number SR–NYSE–2008–92 and should
be submitted on or before October 29,
2008.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–23756 Filed 10–7–08; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–58706; File No. SR–NYSE–
2008–70]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Order
Granting Approval of Proposed Rule
Change Amending Rules Governing
Membership in Order To Waive-In
Members in Good Standing of the
American Stock Exchange LLC as
Members and Member Organizations
of the Exchange
October 1, 2008.
I. Introduction
On July 30, 2008, the New York Stock
Exchange LLC (‘‘NYSE’’ or ‘‘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 amending its rules governing
membership in order to permit members
in good standing of the American Stock
Exchange LLC (‘‘Amex’’) to waive-in to
NYSE after the acquisition of Amex by
NYSE Euronext. The proposed rule
change was published for comment in
the Federal Register on August 11,
14 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(l).
2 17 CFR 240.19b–4.
1 15
PO 00000
Frm 00096
Fmt 4703
Sfmt 4703
59019
2008.3 The Commission received no
comments on the proposal. This order
approves the proposed rule change.
II. Description of the Proposal
As described in a separate proposed
rule change,4 on January 17, 2008, the
Amex Membership Corporation and
NYSE Euronext entered into an
Agreement and Plan of Merger whereby,
through a series of mergers (‘‘Mergers’’),
NYSE Euronext will acquire Amex, and,
as a result of these mergers, Amex will
become a wholly-owned subsidiary of
NYSE Group and be renamed NYSE
Alternext US LLC. Immediately
following the closing of the Mergers,
those persons and entities who were
authorized to trade on Amex before the
closing of the Mergers will be deemed
to have satisfied applicable qualification
requirements necessary to trade on
NYSE Alternext and will be issued
trading permits (referred to as ‘‘86
Trinity Permits’’) which will allow them
to continue to trade on NYSE
Alternext’s systems and facilities at 86
Trinity Place, New York, New York (‘‘86
Trinity Trading Systems’’).
Subsequently, NYSE Euronext intends
to relocate all equities trading
previously conducted on the 86 Trinity
Trading Systems to 11 Wall Street, New
York, New York (the ‘‘Equities
Relocation’’).5 The NYSE Alternext
trading systems at 11 Wall Street will be
operated by NYSE on behalf of NYSE
Alternext. NYSE Alternext will also
adopt a version of NYSE’s rules for
trading equities on NYSE Alternext after
the Equities Relocation.6 Holders of the
86 Trinity Permits will be able to apply
for an NYSE Alternext equities trading
3 See Securities Exchange Act Release No. 58290
(August 1, 2008), 73 FR 46676 (August 11, 2008)
(SR–NYSE–2008–70).
4 See Securities Exchange Act Release No. 58284
(August 1, 2008), 73 FR 46086 (August 7, 2008)
(SR–Amex–2008–62) (‘‘Acquisition Proposal’’).
5 Subsequently, NYSE Alternext will also relocate
all options trading conducted on the 86 Trinity
Trading Systems to 11 Wall Street and utilize a
trading system based on the options trading system
used by NYSE Arca, Inc. (‘‘Options Relocation,’’
and, together with the Equities Relocation, the
‘‘Relocations’’).
6 See Securities Exchange Act Release No. 58265
(July 30, 2008), 73 FR 46075 (August 7, 2008) (SR–
Amex–2008–63) (‘‘NYSE Alternext Equities filing’’).
In the NYSE Alternext Equities filing, NYSE
Alternext also proposed to adopt rules governing
member organizations that are closely modeled
existing NYSE Rules. After the closing of the
Mergers, there may be NYSE Alternext members or
member organizations holding an 86 Trinity Permit
that do not immediately qualify for membership
under the new NYSE Alternext membership rules.
Amex has proposed that any such member would
automatically retain its membership and have a sixmonth grace period to meet the new membership
requirements. The grace period would commence
from the date the member receives an NYSE
Alternext equities trading permit in exchange for a
valid 86 Trinity Permit.
E:\FR\FM\08OCN1.SGM
08OCN1
]]>Agencies
[Federal Register Volume 73, Number 196 (Wednesday, October 8, 2008)]
[Notices]
[Pages 59017-59019]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-23756]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-58708; File No. SR-NYSE-2008-92]
Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change
To Extend the Operation of Reserve Orders on the Exchange to the
Earlier of December 31, 2008 or the Date on Which the Commission
Approves the Exchange's Filing Pursuant to SR-NYSE-2008-46
October 1, 2008.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule19b-4 thereunder,\2\ notice is hereby given that
on September 29, 2008, New York Stock Exchange LLC (``NYSE'' or the
``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 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 the operation of Reserve Orders on
the Exchange to the earlier of December 31, 2008 or the date on which
the Commission approves the Exchange's filing pursuant to SR-NYSE-2008-
46. The text of the proposed rule change is available at NYSE, https://
www.nyse.com, 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 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 aspects of such
statements.
[[Page 59018]]
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The New York Stock Exchange LLC (``NYSE'' or the ``Exchange'')
proposes to amend NYSE Rule 13 to extend the operation of its Reserve
Order pilot to the earlier of December 31, 2008 or the approval date of
the Exchange's New Market Model \3\ pilot.
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release No. 58184 (July 17,
2008), 73 FR 42853 (July 23, 2008) (SR-NYSE-2008-46) (``New Market
Model filing'').
---------------------------------------------------------------------------
Background
Reserve Orders were approved by the Commission on April 18, 2008
\4\ and instituted on the Exchange on April 23, 2008. Reserve Orders
are limit orders available to all market participants that enable them
to maintain non-displayed liquidity on the Exchange's Display Book
system[reg] (``Display Book'') for execution.\5\ A portion of the
interest represented by a Reserve Order is published (displayed) when
it is or becomes the Exchange best bid or offer, while the remaining
interest is not displayed, i.e., is held in ``reserve.'' This reserved
portion is used to replenish the displayed amount (which is required to
be at least one round lot) when trades reduce or exhaust such displayed
interest. Both displayed and reserve interest is available for
automatic execution on the Exchange. With respect to the portion of
Reserve Orders that is not displayed, this interest is available for
execution only after all displayed interest at the Exchange bid or
offer has been executed.
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release No. 57688 (April 18,
2008), 73 FR 22194 (April 24, 2008) (SR-NYSE-2008-30). The pilot
initially operated in 100 NYSE-traded securities. The Exchange
subsequently filed with the Commission to expand the operation of
the pilot to all NYSE-traded securities. See Securities Exchange Act
Release No. 57792 (May 7, 2008), 73 FR 27601 (May 13, 2008) (SR-
NYSE-2008-36).
\5\ The Display Book[reg] system is an order management and
execution facility. The Display Book system receives and displays
orders to the specialists, contains the Book, and provides a
mechanism to execute and report transactions and publish the results
to the Consolidated Tape. The Display Book system is connected to a
number of other Exchange systems for the purposes of comparison,
surveillance, and reporting information to customers and other
market data and national market systems.
---------------------------------------------------------------------------
Reserve Orders are also available for manual execution. While the
majority of transactions on the Exchange are executed electronically,
there are times when manual execution is required. In these situations,
specialists seek information on the available interest at various price
points to determine the appropriate price at which to complete the
manual execution. As with reserve interest in a Floor broker's agency
interest file, information on reserve interest entered directly into
Exchange systems through Reserve Orders will be made available to the
specialist only in the aggregate at each price point for the express
purpose of the specialist effecting a manual execution. The reserve
interest is not distinguished from other interest available to be
executed at a specific price point. Rather, Exchange systems display to
the specialist the total number of shares available for execution at
the price point and include reserve interest in the total number. In
this manner such reserve interest will be available for trades that
take place on the Floor of the Exchange that will not be conducted
automatically.
Extension of the Reserve Order Pilot
The Exchange has proposed in the New Market Model filing to expand
Reserve Orders to include a Minimum Display Reserve Order and a Non-
Displayed Reserve Order. The latter type of reserve interest for all
market participants would not have any of the order designated for
display. The Exchange proposed to create the Non-Displayed Reserve
Order for Off-Floor participants and provide Floor brokers and
specialists \6\ with equivalent functionality.\7\
---------------------------------------------------------------------------
\6\ In the New Market Model, specialists will be replaced by
``designated market makers'' or ``DMMs''.
\7\ See New Market Model filing, Securities Exchange Act Release
No. 58184 (July 17, 2008), 73 FR 42853 (July 23, 2008) (SR-NYSE-
2008-46).
---------------------------------------------------------------------------
The Reserve Order type currently operating on the Exchange has been
accepted by the Exchange's customer base and is currently being used
actively. The Exchange believes that by providing all market
participants with the ability to maintain non-displayed liquidity on
the Display Book encourages market participants to post liquidity and
thus offers Exchange customers additional opportunities for price
improvement by expanding the interest available to execute against
incoming orders at a single price. The Exchange therefore seeks to
continue the pilot for Reserve Orders with a minimum display
requirement until the earlier of December 31, 2008 or such time as the
New Market Model filing is approved.
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
and furthers the objectives of Section 6(b)(5) \8\ of the Act, 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.
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\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 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 proposed rule change has become effective pursuant to Section
19(b)(3)(A) of the Act\9\ and Rule 19b-4(f)(6) thereunder\10\ because
the foregoing proposed rule change: (1) Does not significantly affect
the protection of investors or the public interest; (2) does not impose
any significant burden on competition; and (3) by its terms, does not
become operative for 30 days after the date of filing, or such shorter
time as the Commission may designate if consistent with the protection
of investors and the public interest.
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\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 17 CFR 240.19b-4(f)(6).
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A proposed rule change filed under Rule 19b-4(f)(6) normally may
not become operative prior to 30 days after the date of filing.\11\
However, Rule 19b-4(f)(6)(iii) permits the Commission to 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, as specified in Rule
19b-4(f)(6)(iii),\12\ which would make the rule change effective and
operative upon filing. The Commission believes that waiving the
[[Page 59019]]
30-day operative delay is consistent with the protection of investors
and the public interest because the proposal is designed to extend the
operation of the existing Reserve Order pilot without interruption.
Extending the Reserve Order pilot would continue to enable off-Floor
market participants to compete through their ability to maintain non-
displayed liquidity on the Exchange's Display Book system. Accordingly,
the Commission designates the proposed rule change effective and
operative upon filing with the Commission.\13\
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\11\ 17 CFR 240.19b-4(f)(6)(iii). In addition, Rule 19b-
4(f)(6)(iii) requires the self-regulatory organization to give the
Commission 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. NYSE has satisfied this requirement.
\12\ 17 CFR 240.19b-4(f)(6)(iii).
\13\ 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. See 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 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-2008-92 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, Station Place, 100 F Street, NE., Washington,
DC 20549-1090.
All submissions should refer to File Number SR-NYSE-2008-92. 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 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 publicly available. All
submissions should refer to File Number SR-NYSE-2008-92 and should be
submitted on or before October 29, 2008.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
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\14\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-23756 Filed 10-7-08; 8:45 am]
BILLING CODE 8011-01-P
