Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by New York Stock Exchange LLC To Extend for Three Months the Moratorium Related to the Qualification and Registration of Registered Competitive Market Makers (“RCMMs”) Pursuant to NYSE Rule 107A and Competitive Traders (“CTs”) Pursuant to NYSE Rule 110, 59024-59026 [E8-23843]
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59024
Federal Register / Vol. 73, No. 196 / Wednesday, October 8, 2008 / Notices
necessary or appropriate in the public
interest, for the protection of investors,
or otherwise in the 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
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–58713; File No. SR–NYSE–
2008–96]
Self-Regulatory Organizations; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change by New York
Stock Exchange LLC To Extend for
Three Months the Moratorium Related
to the Qualification and Registration of
Registered Competitive Market Makers
(‘‘RCMMs’’) Pursuant to NYSE Rule
107A and Competitive Traders (‘‘CTs’’)
Pursuant to NYSE Rule 110
• 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–2008–94 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.
jlentini on PROD1PC65 with NOTICES
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.22
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–23837 Filed 10–7–08; 8:45 am]
October 2, 2008.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934
(‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that, on
All submissions should refer to File
September 30, 2008, New York Stock
Number SR–NYSE–2008–94. This file
Exchange LLC (‘‘NYSE’’ or the
number should be included on the
subject line if e-mail is used. To help the ‘‘Exchange’’) filed with the Securities
and Exchange Commission
Commission process and review your
(‘‘Commission’’) the proposed rule
comments more efficiently, please use
only one method. The Commission will change as described in Items I and II
post all comments on the Commission’s below, which Items have been prepared
by the self-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
with respect to the proposed rule
I. Self-Regulatory Organization’s
change that are filed with the
Statement of the Terms of Substance of
Commission, and all written
the Proposed Rule Change
communications relating to the
The Exchange proposes to extend for
proposed rule change between the
Commission and any person, other than three months the moratorium related to
the qualification and registration of
those that may be withheld from the
Registered Competitive Market Makers
public in accordance with the
(‘‘RCMMs’’) pursuant to NYSE Rule
provisions of 5 U.S.C. 552, will be
107A and Competitive Traders (‘‘CTs’’)
available for inspection and copying in
pursuant to NYSE Rule 110. The text of
the Commission’s Public Reference
the proposed rule change is available at
Room, 100 F Street, NE., Washington,
https://www.nyse.com, the NYSE, and
DC 20549, on official business days
between the hours of 10 a.m. and 3 p.m. the Commission’s Public Reference
Room.
Copies of such filing also will be
available for inspection and copying at
II. Self-Regulatory Organization’s
the principal office of NYSE. All
Statement of the Purpose of, and
comments received will be posted
Statutory Basis for, the Proposed Rule
without change; the Commission does
Change
not edit personal identifying
In its filing with the Commission, the
information from submissions. You
self-regulatory organization included
should submit only information that
you wish to make available publicly. All statements concerning the purpose of,
submissions should refer to File
22 17 CFR 200.30–3(a)(12).
Number SR–NYSE–2008–94 and should
1 15 U.S.C.78s(b)(1).
be submitted on or before October 29,
2 15 U.S.C. 78a.
2008.
3 17 CFR 240.19b–4.
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Fmt 4703
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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
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to extend for
three months the moratorium related to
the qualification and registration of
RCMMs pursuant to NYSE Rule 107A
and CTs pursuant to NYSE Rule 110.
On September 22, 2005, the Exchange
filed SR–NYSE–2005–63 4 with the
Securities and Exchange Commission
(‘‘Commission’’) proposing to
implement a moratorium on the
qualification and registration of new
RCMMS and CTs (‘‘Moratorium’’). The
purpose of the Moratorium was to allow
the Exchange an opportunity to review
the viability of RCMMs and CTs in the
NYSE HYBRID MARKET SM (‘‘Hybrid
Market’’).5
During each phase of the Hybrid
Market, new system functionality was
included in the operation of Exchange
systems and new data was generated. As
a result, the Exchange was unable to
make an informed decision as to the
viability of RCMMs and CTs in the
Hybrid Market. The phasing in
implementation of the Hybrid Market
required the Exchange to extend the
Moratorium an additional seven times
over the next twenty-seven (27)
months.6
On June 12, 2008, the Exchange filed
its proposal to create its new market
model (‘‘New Model’’).7 Pursuant to its
filing, the Exchange proposed to: (i)
4 See Securities Exchange Act Release No. 52648
(October 21, 2005), 70 FR 62155 (October 28, 2005)
(SR–NYSE–2005–63).
5 See Securities Exchange Act Release No. 53539
(March 22, 2006), 71 FR 16353 (March 31, 2006)
(SR–NYSE–2004–05) (establishing the NYSE
HYBRID MARKET SM).
6 See Securities Exchange Act Release Numbers
54140 (July 13, 2006), 71 FR 41491 (July 21, 2006)
(SR–NYSE–2006–48); 54985 (December 21, 2006),
72 FR 171 (January 3, 2007) (SR–NYSE–2006–113);
55992 (June 29, 2007), 72 FR 37289 (July 9, 2007)
(SR–NYSE–2007–57); 56556 (September 27, 2007),
72 FR 56421 (October 3, 2007) (SR–NYSE–2007–
86); 57072 (December 31, 2007), 73 FR 1252
(January 7, 2008) (SR–NYSE–2007–125); 57601
(April 2, 2008), 73 FR 19123 (April 8, 2008) (SR–
NYSE–2008–22); 58033 (June 26, 2008), 73 FR
38265 (July 3, 2008) (SR–NYSE–2008–49).
7 See Securities Exchange Act Release No. 58184
(July 17, 2008, 2006), 73 FR 42853 (July 23, 2008)
(SR–NYSE–2008–46).
E:\FR\FM\08OCN1.SGM
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Federal Register / Vol. 73, No. 196 / Wednesday, October 8, 2008 / Notices
Provide market participants with
additional abilities to post hidden
liquidity on Exchange systems; (ii)
create a Designated Market Maker
(‘‘DMM’’), and phase out the NYSE
specialist; and (iii) enhance the speed of
execution through technological
enhancements and a reduction in
message traffic between Exchange
systems and its DMMs. In light of this
proposed New Model, the Exchange
requested an extension of the
Moratorium to evaluate the viability of
the RCMMs and CTs in the proposed
New Model.8
In light of these proposed changes, the
Exchange seeks to continue its review of
the data related to RCMMs and CTs
current trading on the NYSE pending
approval of the New Model.
Accordingly, the Exchange requests
additional time to decide what roles, if
any, RCMMs and CTs should perform in
the proposed New Model. The Exchange
is proposing to extend the Moratorium
as amended 9 for an additional three (3)
months to December 31, 2008 in order
to finalize its determination as to the
roles of RCMMs and CTs and to
formally submit a proposal to the
Commission outlining the role, if any,
these classes of traders have in the
Exchange’s evolving market.
The Exchange will issue an
Information Memo announcing the
extension of the Moratorium.
2. Statutory Basis
jlentini on PROD1PC65 with NOTICES
The basis under the Act 10 for this
proposed rule change is the requirement
under Section 6(b)(5) 11 that an
exchange have rules that are designed to
promote just and equitable principles of
trade, to remove impediments to and
perfect the mechanism of a free and
open market and a national market
system and, in general, to protect
investors and the public interest. The
Exchange is currently reviewing the
data related to RCMMs and CTs to
evaluate its trading volume in the
current more electronic market. Since it
is undergoing significant developments
in its technology and its market model,
the Exchange believes that an extension
of time to finalize its determination of
what, if any, roles the RCMMs and CTs
will play in this evolving marketplace
could potentially remove impediments
8 See Securities Exchange Act Release No. 58033
(June 26, 2008), 73 FR 38265 (July 3, 2008) (SR–
NYSE–2008–49).
9 See Securities Exchange Act Release No. 53549
(March 24, 2006), 71 FR 16388 (March 31, 2006)
(SR–NYSE–2006–11) (making certain amendments
to the Moratorium).
10 15 U.S.C. 78a.
11 15 U.S.C. 78f(b)(5).
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18:10 Oct 07, 2008
Jkt 217001
to and better improve the mechanism of
a free and open market.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received from
Members, Participants, or Others
No written comments were solicited
or received with respect to the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the proposed rule change: (i)
Does not significantly affect the
protection of investors or the public
interest; (ii) does not impose any
significant burden on competition; and
(iii) does not become operative for 30
days after the date of the filing, or such
shorter time as the Commission may
designate if consistent with the
protection of investors and the public
interest, the proposed rule change has
become effective pursuant to Section
19(b)(3)(A) of the Act 12 and Rule 19b–
4(f)(6) thereunder.13
A proposed rule change filed
pursuant to Rule 19b–4(f)(6) under the
Act 14 normally does not become
operative for 30 days after the date of its
filing. However, Rule 19b–4(f)(6)(iii) 15
permits the Commission to designate a
shorter time if such action is consistent
with the protection of investors and the
public interest. The NYSE has requested
that the Commission waive the 30-day
operative delay. The Commission
believes that waiving the 30-day
operative delay is consistent with the
protection of investors and the public
interest because it would allow the
Moratorium to continue without
interruption so that the Exchange may
have additional time to make a final
determination as to the future roles of
RCMMs and CTs in the proposed New
12 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). Pursuant to Rule 19b–
4(f)(6)(iii) under the Act, the Exchange is required
to give the Commission written notice of its intent
to file the proposed rule change, along with a brief
description and text of the proposed rule change,
at least five business days prior to the date of filing
of the proposed rule change, or such shorter time
as designated by the Commission. The Exchange
has requested that the Commission waive the 5-day
pre-filing notice requirement. The Exchange has
satisfied this requirement.
14 17 CFR 240.19b–4(f)(6).
15 17 CFR 240.19b–4(f)(6)(iii).
13 17
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Sfmt 4703
59025
Model and to file with the Commission
a proposed rule change outlining such
roles. For these reasons, the
Commission designates that the
proposed rule change become operative
immediately.16
At any time within 60 days of the
filing of the proposed rule change, the
Commission may summarily abrogate
the rule change if it appears to the
Commission that such action is
necessary or appropriate in the public
interest, for the protection of investors,
or otherwise in furtherance of the
purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–NYSE–2008–96 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–2008–96. This file
number should be included on the
subject line if e-mail is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for inspection and copying in
the Commission’s Public Reference
Room, on official business days between
the hours of 10 a.m. and 3 p.m. Copies
16 For purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. 15 U.S.C. 78c(f).
E:\FR\FM\08OCN1.SGM
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59026
Federal Register / Vol. 73, No. 196 / Wednesday, October 8, 2008 / Notices
of the filing also will be available for
inspection and copying at the principal
office of the Exchange. All comments
received will be posted without change;
the Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–NYSE–
2008–96 and should be submitted on or
before October 29, 2008.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.17
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–23843 Filed 10–7–08; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–58704; File No. SR–
NYSEArca–2008–92]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Order Granting Accelerated
Approval of a Proposed Rule Change
Relating to the Listing of MacroShares
Major Metro Housing Trusts
October 1, 2008.
On August 25, 2008, NYSE Arca, Inc.
(‘‘NYSE Arca’’ or ‘‘Exchange’’), through
its wholly owned subsidiary, NYSE
Arca Equities, Inc. (‘‘NYSE Arca
Equities’’), 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 list and trade
shares of the MacroShares Major Metro
Housing Up Trust (‘‘Up Trust’’) and the
MacroShares Major Metro Housing
Down Trust (‘‘Down Trust’’)
(collectively, the ‘‘Trusts’’).3 The
proposed rule change was published in
the Federal Register on September 15,
2008 for a 15-day comment period.4 The
Commission received no comments on
the proposal. This order grants approval
to the proposed rule change on an
accelerated basis.
I. Description of the Proposal
jlentini on PROD1PC65 with NOTICES
The Exchange proposes to list and
trade the Shares pursuant to NYSE Arca
Equities Rule 8.400, which governs the
17 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 Shares of the Up Trust and the Down Trust are
referred to collectively as ‘‘Shares.’’
4 See Securities Exchange Act Release No. 58469
(September 5, 2008), 73 FR 53306 (‘‘Notice’’).
1 15
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18:10 Oct 07, 2008
Jkt 217001
listing of Paired Trust Shares.5 The
Shares will satisfy the initial and
continued listing criteria applicable to
Paired Trust Shares, which are set forth
in NYSE Arca Equities Rule 8.400(d).6
Description of the Trusts and the Shares
The Up MacroShares and the Down
MacroShares will be offered by the Up
Trust and the Down Trust, respectively,
established by MACRO Inflation
Depositor, LLC, as depositor, under the
laws of the State of New York. The
Trusts are not registered with the
Commission as investment companies.7
Distributions from the Trusts will be
based on the value of the S&P/CaseShiller Composite-10 Home Price Index
(‘‘Index’’), as well as on prevailing
interest rates on U.S. Treasury
obligations. The last published value of
the S&P/Case-Shiller Composite-10
Home Price Index is referred to as the
‘‘Reference Value of the Index’’ or
‘‘Reference Value’’ (as defined in the
Notice). The S&P/Case-Shiller Home
Price Indices measure the change in
home prices in one or several
geographic regions of the United States.
They are calculated monthly and are
publicly available for 20 major
metropolitan areas.8
Additional information regarding the
Shares may be found in the Notice,9
including but not limited to discussions
of the Shares and Trusts, the Reference
Value of the Index, the S&P/Case-Shiller
Home Price Indices and the Index, the
5 The Shares are ‘‘Trading Shares’’ as defined in
NYSE Arca Equities Rule 8.400(b)(1)(B).
6 See e-mail from Michael Cavalier, Associate
General Counsel, NYSE Euronext, to Christopher
Chow, Senior Counsel, Commission, dated
September 26, 2008.
7 The Shares are being offered by the Trusts under
the Securities Act of 1933, as amended, 15 U.S.C.
77a. On August 6, 2008, the depositor filed with the
Commission Registration Statements on Form S–1
(Amendment No. 1) for the Up MacroShares (File
No. 333–151522) (‘‘Up Trust Registration
Statement’’) and for the Down MacroShares (File
No. 333–151523) (‘‘Down Trust Registration
Statement,’’ and, together with the Up Trust
Registration Statement, ‘‘Registration Statements’’).
Descriptions herein relating to the operation of the
Trusts and the S&P/Case-Shiller Home Price Indices
are based on the Registration Statements.
Additionally, unless otherwise stated herein,
defined terms have same meaning set forth in the
Registration Statements.
8 The S&P/Case-Shiller Composite-10 Home Price
Index is a weighted average of the following 10
S&P/Case-Shiller Metro Area Home Price Indices:
The S&P/Case-Shiller Boston Home Price Index, the
S&P/Case-Shiller Chicago Home Price Index, the
S&P/Case-Shiller Denver Home Price Index, the
S&P/Case-Shiller Las Vegas Home Price Index, the
S&P/Case-Shiller Los Angeles Home Price Index,
the S&P/Case-Shiller Miami Home Price Index, the
S&P/Case-Shiller New York City Area Home Price
Index, the S&P/Case-Shiller San Diego Home Price
Index, the S&P/Case-Shiller San Francisco Home
Price Index, and the S&P/Case-Shiller Washington,
D.C. Home Price Index.
9 See supra note 4.
PO 00000
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Fmt 4703
Sfmt 4703
eligibility criteria, the MSA Index
construction, the weighting of sales
pairs, the Index governance, the
Termination Triggers, the calculation of
the Underlying Value, the availability of
information, the initial and continued
listing criteria, trading halts, trading
rules, surveillance, and the Information
Bulletin.
II. Discussion and Commission’s
Findings
The Commission has carefully
reviewed the proposed rule change and
finds that it is consistent with the
requirements of Section 6 of the Act 10
and the rules and regulations
thereunder applicable to a national
securities exchange.11 In particular, the
Commission finds that the proposal is
consistent with Section 6(b)(5) of the
Act,12 which requires, among other
things, that the Exchange’s rules 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. The Commission notes
that, for the Shares to be listed and
traded on the Exchange, such Shares
must be in compliance with the initial
and continued listing requirements
under NYSE Arca Equities Rule 8.400.
The Commission finds that the
proposal to list and trade the Shares on
the Exchange is consistent with Section
11A(a)(1)(C)(iii) of the Act,13 which sets
forth Congress’ finding that it is in the
public interest and appropriate for the
protection of investors and the
maintenance of fair and orderly markets
to assure the availability to brokers,
dealers, and investors of information
with respect to quotations for and
transactions in securities. Quotation and
last-sale information for the Shares will
be available via the CTA high-speed
line. The Exchange further states that
information regarding market price and
volume of the Shares is and will be
continually available on a real-time
basis throughout the day via electronic
services. The previous day’s closing
price and trading volume information
for the Shares will be published daily in
the financial section of major
newspapers and will be available from
major market data vendors.
The current Index level is available
through major market data vendors (e.g.,
10 15
U.S.C. 78f.
approving this proposed rule change the
Commission has considered the proposed rule’s
impact on efficiency, competition, and capital
formation. See 15 U.S.C. 78c(f).
12 15 U.S.C. 78f(b)(5).
13 15 U.S.C. 78k–1(a)(1)(C)(iii).
11 In
E:\FR\FM\08OCN1.SGM
08OCN1
]]>Agencies
[Federal Register Volume 73, Number 196 (Wednesday, October 8, 2008)]
[Notices]
[Pages 59024-59026]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-23843]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-58713; File No. SR-NYSE-2008-96]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by New York Stock Exchange LLC To
Extend for Three Months the Moratorium Related to the Qualification and
Registration of Registered Competitive Market Makers (``RCMMs'')
Pursuant to NYSE Rule 107A and Competitive Traders (``CTs'') Pursuant
to NYSE Rule 110
October 2, 2008.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given
that, on September 30, 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 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.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to extend for three months the moratorium
related to the qualification and registration of Registered Competitive
Market Makers (``RCMMs'') pursuant to NYSE Rule 107A and Competitive
Traders (``CTs'') pursuant to NYSE Rule 110. The text of the proposed
rule change is available at https://www.nyse.com, the NYSE, and the
Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the 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
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to extend for three months the moratorium
related to the qualification and registration of RCMMs pursuant to NYSE
Rule 107A and CTs pursuant to NYSE Rule 110.
On September 22, 2005, the Exchange filed SR-NYSE-2005-63 \4\ with
the Securities and Exchange Commission (``Commission'') proposing to
implement a moratorium on the qualification and registration of new
RCMMS and CTs (``Moratorium''). The purpose of the Moratorium was to
allow the Exchange an opportunity to review the viability of RCMMs and
CTs in the NYSE HYBRID MARKET \SM\ (``Hybrid Market'').\5\
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release No. 52648 (October 21,
2005), 70 FR 62155 (October 28, 2005) (SR-NYSE-2005-63).
\5\ See Securities Exchange Act Release No. 53539 (March 22,
2006), 71 FR 16353 (March 31, 2006) (SR-NYSE-2004-05) (establishing
the NYSE HYBRID MARKET \SM\).
---------------------------------------------------------------------------
During each phase of the Hybrid Market, new system functionality
was included in the operation of Exchange systems and new data was
generated. As a result, the Exchange was unable to make an informed
decision as to the viability of RCMMs and CTs in the Hybrid Market. The
phasing in implementation of the Hybrid Market required the Exchange to
extend the Moratorium an additional seven times over the next twenty-
seven (27) months.\6\
---------------------------------------------------------------------------
\6\ See Securities Exchange Act Release Numbers 54140 (July 13,
2006), 71 FR 41491 (July 21, 2006) (SR-NYSE-2006-48); 54985
(December 21, 2006), 72 FR 171 (January 3, 2007) (SR-NYSE-2006-113);
55992 (June 29, 2007), 72 FR 37289 (July 9, 2007) (SR-NYSE-2007-57);
56556 (September 27, 2007), 72 FR 56421 (October 3, 2007) (SR-NYSE-
2007-86); 57072 (December 31, 2007), 73 FR 1252 (January 7, 2008)
(SR-NYSE-2007-125); 57601 (April 2, 2008), 73 FR 19123 (April 8,
2008) (SR-NYSE-2008-22); 58033 (June 26, 2008), 73 FR 38265 (July 3,
2008) (SR-NYSE-2008-49).
---------------------------------------------------------------------------
On June 12, 2008, the Exchange filed its proposal to create its new
market model (``New Model'').\7\ Pursuant to its filing, the Exchange
proposed to: (i)
[[Page 59025]]
Provide market participants with additional abilities to post hidden
liquidity on Exchange systems; (ii) create a Designated Market Maker
(``DMM''), and phase out the NYSE specialist; and (iii) enhance the
speed of execution through technological enhancements and a reduction
in message traffic between Exchange systems and its DMMs. In light of
this proposed New Model, the Exchange requested an extension of the
Moratorium to evaluate the viability of the RCMMs and CTs in the
proposed New Model.\8\
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\7\ See Securities Exchange Act Release No. 58184 (July 17,
2008, 2006), 73 FR 42853 (July 23, 2008) (SR-NYSE-2008-46).
\8\ See Securities Exchange Act Release No. 58033 (June 26,
2008), 73 FR 38265 (July 3, 2008) (SR-NYSE-2008-49).
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In light of these proposed changes, the Exchange seeks to continue
its review of the data related to RCMMs and CTs current trading on the
NYSE pending approval of the New Model. Accordingly, the Exchange
requests additional time to decide what roles, if any, RCMMs and CTs
should perform in the proposed New Model. The Exchange is proposing to
extend the Moratorium as amended \9\ for an additional three (3) months
to December 31, 2008 in order to finalize its determination as to the
roles of RCMMs and CTs and to formally submit a proposal to the
Commission outlining the role, if any, these classes of traders have in
the Exchange's evolving market.
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\9\ See Securities Exchange Act Release No. 53549 (March 24,
2006), 71 FR 16388 (March 31, 2006) (SR-NYSE-2006-11) (making
certain amendments to the Moratorium).
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The Exchange will issue an Information Memo announcing the
extension of the Moratorium.
2. Statutory Basis
The basis under the Act \10\ for this proposed rule change is the
requirement under Section 6(b)(5) \11\ that an exchange have rules that
are designed to promote just and equitable principles of trade, to
remove impediments to and perfect the mechanism of a free and open
market and a national market system and, in general, to protect
investors and the public interest. The Exchange is currently reviewing
the data related to RCMMs and CTs to evaluate its trading volume in the
current more electronic market. Since it is undergoing significant
developments in its technology and its market model, the Exchange
believes that an extension of time to finalize its determination of
what, if any, roles the RCMMs and CTs will play in this evolving
marketplace could potentially remove impediments to and better improve
the mechanism of a free and open market.
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\10\ 15 U.S.C. 78a.
\11\ 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
Because the proposed rule change: (i) Does not significantly affect
the protection of investors or the public interest; (ii) does not
impose any significant burden on competition; and (iii) does not become
operative for 30 days after the date of the filing, or such shorter
time as the Commission may designate if consistent with the protection
of investors and the public interest, the proposed rule change has
become effective pursuant to Section 19(b)(3)(A) of the Act \12\ and
Rule 19b-4(f)(6) thereunder.\13\
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\12\ 15 U.S.C. 78s(b)(3)(A).
\13\ 17 CFR 240.19b-4(f)(6). Pursuant to Rule 19b-4(f)(6)(iii)
under the Act, the Exchange is required to give the Commission
written notice of its intent to file the proposed rule change, along
with a brief description and text of the proposed rule change, at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has requested that the Commission waive the 5-day pre-
filing notice requirement. The Exchange has satisfied this
requirement.
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A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the
Act \14\ normally does not become operative for 30 days after the date
of its filing. However, Rule 19b-4(f)(6)(iii) \15\ permits the
Commission to designate a shorter time if such action is consistent
with the protection of investors and the public interest. The NYSE has
requested that the Commission waive the 30-day operative delay. The
Commission believes that waiving the 30-day operative delay is
consistent with the protection of investors and the public interest
because it would allow the Moratorium to continue without interruption
so that the Exchange may have additional time to make a final
determination as to the future roles of RCMMs and CTs in the proposed
New Model and to file with the Commission a proposed rule change
outlining such roles. For these reasons, the Commission designates that
the proposed rule change become operative immediately.\16\
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\14\ 17 CFR 240.19b-4(f)(6).
\15\ 17 CFR 240.19b-4(f)(6)(iii).
\16\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. 15 U.S.C. 78c(f).
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At any time within 60 days of the filing of the proposed rule
change, the Commission may summarily abrogate the rule change if it
appears to the Commission that such action is necessary or appropriate
in the public interest, for the protection of investors, or otherwise
in furtherance of the purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://
www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-NYSE-2008-96 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-2008-96. This file
number should be included on the subject line if e-mail is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (https://www.sec.gov/rules/
sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for inspection and
copying in the Commission's Public Reference Room, on official business
days between the hours of 10 a.m. and 3 p.m. Copies
[[Page 59026]]
of the filing also will be available for inspection and copying at the
principal office of the Exchange. All comments received will be posted
without change; the Commission does not edit personal identifying
information from submissions. You should submit only information that
you wish to make available publicly. All submissions should refer to
File Number SR-NYSE-2008-96 and should be submitted on or before
October 29, 2008.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\17\
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\17\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-23843 Filed 10-7-08; 8:45 am]
BILLING CODE 8011-01-P
