Self-Regulatory Organizations; NYSE Alternext US LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by NYSE Alternext U.S. LLC To Amend NYSE Alternext Equities Rule 123D(4) To Expand That Rule's Trading Halt Condition To Cover All Structured Products, 63754-63756 [E8-25528]
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63754
Federal Register / Vol. 73, No. 208 / Monday, October 27, 2008 / Notices
for regulating its affiliated brokerdealers.
According to the Plan, BATS will
review the Certification, at least
annually, or more frequently if required
by changes in either the rules of BATS
or FINRA, and, if necessary, submit to
FINRA an updated list of Common
Rules to add BATS rules not included
on the then-current list of Common
Rules that are substantially similar to
FINRA rules; delete BATS rules
included in the then-current list of
Common Rules that are no longer
substantially similar to FINRA rules;
and confirm that the remaining rules on
the list of Common Rules continue to be
BATS rules that are substantially similar
to FINRA rules.22 FINRA will then
confirm in writing whether the rules
listed in any updated list are Common
Rules as defined in the Plan. Under the
Plan, BATS will also provide FINRA
with a current list of Dual Members and
shall update the list no less frequently
than once each quarter.23
The Commission is hereby declaring
effective a plan that, among other
things, allocates regulatory
responsibility to FINRA for the
oversight and enforcement of all BATS
rules that are substantially similar to the
rules of FINRA for Dual Members of
BATS and FINRA. Therefore,
modifications to the Certification need
not be filed with the Commission as an
amendment to the Plan, provided that
the Parties are only adding to, deleting
from, or confirming changes to BATS
rules in the Certification in conformance
with the definition of Common Rules
provided in the Plan. However, should
the Parties decide to add a BATS rule
to the Certification that is not
substantially similar to a FINRA rule;
delete a BATS rule from the
Certification that is substantially similar
to a FINRA rule; or leave on the
Certification a BATS rule that is no
longer substantially similar to a FINRA
rule, then such a change would
constitute an amendment to the Plan,
which must be filed with the
Commission pursuant to Rule 17d–2
under the Act and noticed for public
comment.24
The Plan also permits BATS and
FINRA to terminate the Plan, subject to
notice.25 The Commission notes,
22 See
paragraph 2 of the proposed 17d–2 Plan.
paragraph 3 of the proposed 17d–2 Plan.
24 The Commission also notes that the addition to
or deletion from the Certification of any federal
securities laws, rules, and regulations for which
FINRA would bear responsibility under the Plan for
examining, and enforcing compliance by, Dual
Members, also would constitute an amendment to
the Plan.
25 See paragraph 12 of the proposed 17d–2 Plan.
mstockstill on PROD1PC66 with NOTICES
23 See
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17:13 Oct 24, 2008
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however, that while the Plan permits
the Parties to terminate the Plan, the
Parties cannot by themselves reallocate
the regulatory responsibilities set forth
in the Plan, since Rule 17d–2 under the
Act requires that any allocation or reallocation of regulatory responsibilities
be filed with the Commission.26
IV. Conclusion
This Order gives effect to the Plan
filed with the Commission in File No.
4–569. The Parties shall notify all
members affected by the Plan of their
rights and obligations under the Plan.
It is therefore ordered, pursuant to
section 17(d) of the Act, that the Plan in
File No. 4–569, between FINRA and
BATS, filed pursuant to Rule 17d–2
under the Act, is approved and declared
effective.
It is therefore ordered, that BATS is
relieved of those responsibilities
allocated to FINRA under the Plan in
File No. 4–569.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.27
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–25503 Filed 10–24–08; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–58824; File No. SR–
NYSEALTR–2008–02]
Self-Regulatory Organizations; NYSE
Alternext US LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change by NYSE Alternext U.S.
LLC To Amend NYSE Alternext
Equities Rule 123D(4) To Expand That
Rule’s Trading Halt Condition To Cover
All Structured Products
October 21, 2008.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
notice is hereby given that on October
17, 2008, NYSE Alternext US LLC
(‘‘NYSE Alternext’’ or ‘‘Exchange’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I, II, and III below, which Items
have been prepared by the Exchange.
The Commission is publishing this
26 The Commission notes that paragraph 12 of the
Plan reflects the fact that FINRA’s responsibilities
under the Plan will continue in effect until the
Commission approves any termination of the Plan.
27 17 CFR 200.30–3(a)(34).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
PO 00000
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Fmt 4703
Sfmt 4703
notice to solicit comments on the
proposed rule change from interested
persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
NYSE Alternext Equities Rule 123D(4)
to expand the application of the trading
halt condition provided by that rule to
include all NYSE Alternext listed
structured products. The text of the
proposed rule change is available on the
Exchange’s Web site (https://
www.amex.com), at the Exchange’s
Office of the Secretary, 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
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 these statements may be examined at
the places specified in Item IV below.
NYSE Alternext has prepared
summaries, set forth in Sections A, B
and C below, of the most significant
aspects of such statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
On September 30, 2008, NYSE
Euronext (the parent company of two
other exchanges—New York Stock
Exchange LLC (‘‘NYSE’’) and NYSE
Arca, Inc.), completed its acquisition of
the Exchange (the ‘‘Merger’’). In
connection with the Merger, NYSE
Alternext will relocate all equities
trading currently conducted on or
through the Amex legacy trading
systems and facilities located at 86
Trinity Place, New York, New York, to
the NYSE trading facilities and systems
located at 11 Wall Street, New York,
New York (the ‘‘NYSE Alternext
Trading Systems’’), which will be
operated by the NYSE on behalf of
NYSE Alternext (the ‘‘Equities
Relocation’’). In anticipation of the
Equities Relocation, the Exchange has
adopted the NYSE’s trading rules as the
‘‘NYSE Alternext Equities Rules,’’ to be
implemented at the time of the Equities
Relocation.3
3 Securities Exchange Act Release No. 58705
(October 1, 2008), 73 FR 58995 (October 8, 2008)
(SR–Amex–2008–63).
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mstockstill on PROD1PC66 with NOTICES
Federal Register / Vol. 73, No. 208 / Monday, October 27, 2008 / Notices
NYSE Euronext has made a business
decision to discontinue the listing and
trading of exchange traded funds
(‘‘ETFs’’) and structured products on the
Exchange at the time of the Equities
Relocation and to encourage the issuers
of those securities to transfer their
listings to NYSE Arca. As such, the
NYSE Alternext Equities Rules do not
provide for the trading of ETFs and
structured products and the NYSE
Alternext Trading Systems will not be
equipped for such trading. However,
some of the issuers of ETFs and
structured products may not have
completed the transfer of their listed
securities to NYSE Arca prior to the
Equities Relocation. It would be
prohibitively expensive to keep open
the trading floor at 86 Trinity Place to
facilitate the trading of a limited number
of ETFs and structured products
pending their transfer to NYSE Arca. To
address this problem as it relates to
ETFs, the Exchange included Rule
123D(4) in the NYSE Alternext Equities
Rules. Rule 123D(4) provides for a nonregulatory trading halt condition to
permit the halting of trading of ETFs on
the Exchange to facilitate the closing of
the 86 Trinity Place trading floor in
connection with the Equities Relocation.
Orders in ETFs subject to the trading
halt condition are to be routed to NYSE
Arca for execution.
Rule 123D(4) as adopted does not
apply to structured products that remain
listed on the Exchange at the time of the
Equities Relocation. As the same
problem arises in connection with the
continued trading of structured
products on the Exchange after the
Equities Relocation as arises with ETFs,
the Exchange proposes to extend the
application of Rule 123D(4) to any
structured products that remain listed at
that time. In order for Rule 123D(4) to
comprehensively apply to all ETFs and
structured products, the Exchange
proposes to extend its application to
securities listed pursuant to Sections
104 (Bonds and Debentures), 106
(Currency and Index Warrants), or 107
(Other Securities) of the Exchange’s
Company Guide or pursuant to
Exchange Rules 1000–AEMI and 1001 et
seq. (Portfolio Depositary Receipts),
1000A–AEMI and 1001A et seq. (Index
Fund Shares), 1000B et seq. (Managed
Fund Shares), 1200–AEMI and 1201 et
seq. (Trading of Trust Issued Receipts),
1200A–AEMI and 1201A et seq.
(Commodity-Based Trust Shares), 1400
et seq. (Trading of Paired Trust Shares),
1500–AEMI and 1501 et seq. (Trading of
Partnership Units), and 1600 et seq.
(Trading of Trust Units).
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2. Statutory Basis
The basis under the Act for this
proposed rule change is the requirement
under Section 6(b)(5) 4 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. In particular, the
Exchange believes that the proposed
amendment facilitates transactions in
securities because it will make it easier
for issuers of structured products listed
on the Exchange to ensure the
continuity of trading of their securities
after the closing of the Exchange’s
trading floor at 86 Trinity Place and
pending transfer of the listing of those
securities to NYSE Arca.
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
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 has taken
effect upon filing pursuant to Section
19(b)(3)(A) of the Act.5
The Exchange asserts that the
proposed rule change (i) will not
significantly affect the protection of
investors or the public interest, (ii) will
not impose any significant burden on
competition, and (iii) will not become
operative for 30 days after the date of
this filing, or such shorter time as the
Commission may designate if consistent
with the protection of investors and the
public interest.
The Exchange believes that the
proposed rule change is
noncontroversial because it will make it
easier for issuers of structured products
listed on the Exchange to ensure the
continuity of trading of their securities
after the closing of the 86 Trinity Place
trading floor and pending transfer of the
listing of those securities to NYSE Arca.
The Exchange believes that the
proposed amendment to Rule 123D(4)
4 15
5 15
PO 00000
U.S.C. 78f(b)(5).
U.S.C. 78s(b)(3)(A).
Frm 00083
Fmt 4703
does not raise any novel regulatory
issues as it simply extends the trading
halt condition to structured products
under the same circumstances in which
it applies to ETFs.
The Exchange provided 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 the
filing of the proposed rule change as
required by Rule 19b–4(f)(6).6
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 rulecomments@sec.gov. Please include File
Number SR–NYSEALTR–2008–02 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–NYSEALTR–2008–02. 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
6 17
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C.F.R. 240.19b–4(f)(6).
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Federal Register / Vol. 73, No. 208 / Monday, October 27, 2008 / Notices
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 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–
NYSEALTR–2008–02 and should be
submitted on or before November 17,
2008.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.7
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–25528 Filed 10–24–08; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–58825; File No. SR–
NYSEArca–2008–89]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Order Approving Proposed
Rule Change Amending NYSE Arca
Equities Rule 5.2(j)(3) in Connection
With Generic Listing Standards for
Multiple Fund Shares and Inverse Fund
Shares
October 21, 2008.
mstockstill on PROD1PC66 with NOTICES
I. Introduction
On August 25, 2008, NYSE Arca, Inc.
(‘‘Exchange’’ or ‘‘NYSE Arca’’), 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 amend NYSE
Arca Equities Rule 5.2(j)(3) in
connection with generic listing
standards for Multiple Fund Shares and
Inverse Fund Shares. The proposed rule
change was published for comment in
the Federal Register on September 16,
2008.3 The Commission received no
comment letters on the proposed rule
change. This order approves the
proposed rule change.
7 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 See Securities Exchange Act Release No. 58484
(September 8, 2008), 73 FR 53472.
1 15
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17:13 Oct 24, 2008
Jkt 217001
II. Description of the Proposed Rule
Change
The Exchange proposes to amend
Commentaries .01, .02, and .03 and to
adopt new Commentary .04, to NYSE
Arca Equities Rule 5.2(j)(3), the
Exchange’s initial listing standards for
Investment Company Units (‘‘ICUs’’), to
permit the listing and trading of ICUs
issued by an open-end management
investment company that seek to
provide investment results, before fees
and expenses, that either correspond to
a specified multiple of the percentage
performance on a given day of a
particular benchmark domestic equity
index, international equity index, Fixed
Income Securities 4 index, or a
combination thereof (‘‘Multiple Fund
Shares’’) or that correspond inversely up
to minus or negative 300 percent
(¥300%) of the percentage performance
on a given day of a particular domestic
equity index, international equity index,
Fixed Income Securities index, or a
combination thereof (‘‘Inverse Fund
Shares,’’ and together with Multiple
Fund Shares, collectively, ‘‘Fund
Shares’’), in each case, pursuant to Rule
19b–4(e) under the Act.5
Specifically, the Exchange proposes to
remove the current limitation to listing
Multiple Fund Shares and Inverse Fund
Shares 6 and to amend Commentaries
.01, .02, and .03 to NYSE Arca Equities
Rule 5.2(j)(3) to permit the Exchange to
approve the listing and trading of
4 Fixed Income Securities are debt securities that
are notes, bonds, debentures, or evidence of
indebtedness that include, but are not limited to,
U.S. Department of Treasury securities,
government-sponsored entity securities, municipal
securities, trust preferred securities, supranational
debt, and debt of a foreign country or a subdivision
thereof. See Commentary .02 to NYSE Arca Equities
Rule 5.2(j)(3).
5 Rule 19b–4(e) under the Act provides that the
listing and trading of a new derivative securities
product by a self-regulatory organization (‘‘SRO’’)
shall not be deemed a proposed rule change,
pursuant to Rule 19b–4(c)(1) under the Act, if the
Commission has approved, pursuant to Section
19(b) of the Act, the SRO’s trading rules,
procedures, and listing standards for the product
class that would include the new derivative
securities product, and the SRO has a surveillance
program for the product class. See 17 CFR 240.19b–
4(e)(1). A new derivative securities product means
any type of option, warrant, hybrid securities
product, or any other security, other than a single
equity option or a security futures product, whose
value is based, in whole or in part, upon the
performance of, or interest in, an underlying
instrument. See 17 CFR 240.19b–4(e).
6 See Commentaries .02 and .03 to NYSE Arca
Equities Rule 5.2(j)(3) (currently prohibiting the
Exchange from approving for listing and trading
pursuant to Rule 19b–4(e) a series of ICUs that are
issued by an open-end management investment
company that seeks to provide investment results
that either exceed the performance of a specified
index by a specified multiple or that correspond to
the inverse of the performance of a specified index
by a specified multiple).
PO 00000
Frm 00084
Fmt 4703
Sfmt 4703
Multiple Fund Shares and Inverse Fund
Shares pursuant to Rule 19b–4(e) under
the Act, provided that each of the
applicable conditions and requirements
set forth in Commentaries .01, .02, or .03
to NYSE Arca Equities Rule 5.2(j)(3), as
proposed to be amended, and proposed
Commentary .04 to NYSE Arca Equities
Rule 5.2(j)(3) are satisfied.
Lastly, the Exchange proposes to
make a minor, non-substantive language
change to Commentary .02(ii) to NYSE
Arca Equities Rule 5.2(j)(3).
Limitation on Leverage
In connection with the listing and
trading of Multiple Fund Shares,
Commentaries .01, .02, and .03 to NYSE
Arca Equities Rule 5.2(j)(3), as amended,
would not provide a limitation on
leverage. Specifically, the proposal
would permit the Exchange to approve,
pursuant to Rule 19b–4(e) under the
Act, the listing and trading of Multiple
Fund Shares that seek to provide
investment results, before fees and
expenses, corresponding to any
multiple, without limitation, of the
percentage performance on a given day
of a particular domestic or international
equity index, Fixed Income Securities
index, or a combination thereof.
In connection with Inverse Fund
Shares, Commentaries .01, .02, and .03
to NYSE Arca Equities Rule 5.2(j)(3), as
amended, would expressly prohibit the
Exchange from approving pursuant to
Rule 19b–4(e) under the Act the listing
and trading of Inverse Fund Shares that
seek to provide investment results,
before fees and expenses, in an amount
that exceeds ¥300% of the percentage
performance of the underlying
benchmark index. Specifically, with
respect to the listing and trading of
Inverse Fund Shares that seek to
provide investment results, before fees
and expenses, in an amount that
exceeds ¥300% of the percentage
performance of the underlying
benchmark index, the Exchange’s
proposal would continue to require
specific Commission approval pursuant
to section 19(b)(2) of the Act.7
Availability of Information About Fund
Shares and Underlying Indexes
The Exchange also proposes to adopt
new Commentary .04 to NYSE Arca
Equities Rule 5.2(j)(3), which would
only apply to a series of Multiple Fund
Shares and Inverse Fund Shares issued
by an open-end management investment
company. Proposed Commentary .04 to
NYSE Arca Equities Rule 5.2(j)(3) would
require the composition of portfolio
holdings of a fund be disclosed daily on
7 15
E:\FR\FM\27OCN1.SGM
U.S.C. 78s(b)(2).
27OCN1
]]>Agencies
[Federal Register Volume 73, Number 208 (Monday, October 27, 2008)]
[Notices]
[Pages 63754-63756]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-25528]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-58824; File No. SR-NYSEALTR-2008-02]
Self-Regulatory Organizations; NYSE Alternext US LLC; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change by NYSE
Alternext U.S. LLC To Amend NYSE Alternext Equities Rule 123D(4) To
Expand That Rule's Trading Halt Condition To Cover All Structured
Products
October 21, 2008.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on October 17, 2008, NYSE Alternext US LLC (``NYSE Alternext'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I, II,
and III below, which Items have been prepared 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 amend NYSE Alternext Equities Rule 123D(4)
to expand the application of the trading halt condition provided by
that rule to include all NYSE Alternext listed structured products. The
text of the proposed rule change is available on the Exchange's Web
site (https://www.amex.com), at the Exchange's Office of the Secretary,
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 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 these statements may be examined at
the places specified in Item IV below. NYSE Alternext has prepared
summaries, set forth in Sections A, B and C below, of the most
significant aspects of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
On September 30, 2008, NYSE Euronext (the parent company of two
other exchanges--New York Stock Exchange LLC (``NYSE'') and NYSE Arca,
Inc.), completed its acquisition of the Exchange (the ``Merger''). In
connection with the Merger, NYSE Alternext will relocate all equities
trading currently conducted on or through the Amex legacy trading
systems and facilities located at 86 Trinity Place, New York, New York,
to the NYSE trading facilities and systems located at 11 Wall Street,
New York, New York (the ``NYSE Alternext Trading Systems''), which will
be operated by the NYSE on behalf of NYSE Alternext (the ``Equities
Relocation''). In anticipation of the Equities Relocation, the Exchange
has adopted the NYSE's trading rules as the ``NYSE Alternext Equities
Rules,'' to be implemented at the time of the Equities Relocation.\3\
---------------------------------------------------------------------------
\3\ Securities Exchange Act Release No. 58705 (October 1, 2008),
73 FR 58995 (October 8, 2008) (SR-Amex-2008-63).
---------------------------------------------------------------------------
[[Page 63755]]
NYSE Euronext has made a business decision to discontinue the
listing and trading of exchange traded funds (``ETFs'') and structured
products on the Exchange at the time of the Equities Relocation and to
encourage the issuers of those securities to transfer their listings to
NYSE Arca. As such, the NYSE Alternext Equities Rules do not provide
for the trading of ETFs and structured products and the NYSE Alternext
Trading Systems will not be equipped for such trading. However, some of
the issuers of ETFs and structured products may not have completed the
transfer of their listed securities to NYSE Arca prior to the Equities
Relocation. It would be prohibitively expensive to keep open the
trading floor at 86 Trinity Place to facilitate the trading of a
limited number of ETFs and structured products pending their transfer
to NYSE Arca. To address this problem as it relates to ETFs, the
Exchange included Rule 123D(4) in the NYSE Alternext Equities Rules.
Rule 123D(4) provides for a non-regulatory trading halt condition to
permit the halting of trading of ETFs on the Exchange to facilitate the
closing of the 86 Trinity Place trading floor in connection with the
Equities Relocation. Orders in ETFs subject to the trading halt
condition are to be routed to NYSE Arca for execution.
Rule 123D(4) as adopted does not apply to structured products that
remain listed on the Exchange at the time of the Equities Relocation.
As the same problem arises in connection with the continued trading of
structured products on the Exchange after the Equities Relocation as
arises with ETFs, the Exchange proposes to extend the application of
Rule 123D(4) to any structured products that remain listed at that
time. In order for Rule 123D(4) to comprehensively apply to all ETFs
and structured products, the Exchange proposes to extend its
application to securities listed pursuant to Sections 104 (Bonds and
Debentures), 106 (Currency and Index Warrants), or 107 (Other
Securities) of the Exchange's Company Guide or pursuant to Exchange
Rules 1000-AEMI and 1001 et seq. (Portfolio Depositary Receipts),
1000A-AEMI and 1001A et seq. (Index Fund Shares), 1000B et seq.
(Managed Fund Shares), 1200-AEMI and 1201 et seq. (Trading of Trust
Issued Receipts), 1200A-AEMI and 1201A et seq. (Commodity-Based Trust
Shares), 1400 et seq. (Trading of Paired Trust Shares), 1500-AEMI and
1501 et seq. (Trading of Partnership Units), and 1600 et seq. (Trading
of Trust Units).
2. Statutory Basis
The basis under the Act for this proposed rule change is the
requirement under Section 6(b)(5) \4\ 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. In particular, the Exchange believes
that the proposed amendment facilitates transactions in securities
because it will make it easier for issuers of structured products
listed on the Exchange to ensure the continuity of trading of their
securities after the closing of the Exchange's trading floor at 86
Trinity Place and pending transfer of the listing of those securities
to NYSE Arca.
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\4\ 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
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 has taken effect upon filing pursuant to
Section 19(b)(3)(A) of the Act.\5\
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\5\ 15 U.S.C. 78s(b)(3)(A).
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The Exchange asserts that the proposed rule change (i) will not
significantly affect the protection of investors or the public
interest, (ii) will not impose any significant burden on competition,
and (iii) will not become operative for 30 days after the date of this
filing, or such shorter time as the Commission may designate if
consistent with the protection of investors and the public interest.
The Exchange believes that the proposed rule change is
noncontroversial because it will make it easier for issuers of
structured products listed on the Exchange to ensure the continuity of
trading of their securities after the closing of the 86 Trinity Place
trading floor and pending transfer of the listing of those securities
to NYSE Arca. The Exchange believes that the proposed amendment to Rule
123D(4) does not raise any novel regulatory issues as it simply extends
the trading halt condition to structured products under the same
circumstances in which it applies to ETFs.
The Exchange provided 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 the filing of the proposed rule change as required by
Rule 19b-4(f)(6).\6\
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\6\ 17 C.F.R. 240.19b-4(f)(6).
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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-NYSEALTR-2008-02 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-NYSEALTR-2008-02. 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
[[Page 63756]]
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 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-NYSEALTR-2008-02 and should
be submitted on or before November 17, 2008.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\7\
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\7\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-25528 Filed 10-24-08; 8:45 am]
BILLING CODE 8011-01-P
