Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by New York Stock Exchange LLC To Establish the Minimum Price Variation of $0.0001 for Orders and Quotations in Equity Securities That Are Priced Below $1.00 per Share, 73679-73681 [E8-28662]
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Federal Register / Vol. 73, No. 233 / Wednesday, December 3, 2008 / Notices
73679
ATTACHMENT A—COMMENTS TO SERVICE PERFORMANCE MEASUREMENT SYSTEMS FOR MARKET DOMINANT PRODUCTS—
Continued
Participant
Title
Time Warner Inc. (Time Warner) ............................
Comments of Time Warner Inc. in Response to
Commission Order No. 48.
Reply Comments of the United States Postal
Service.
Valpak Direct Marketing Systems, Inc. and
Valpak Dealers’ Association, Inc. Comments
on Service Performance Measurement Systems for Market Dominant Products.
Valpak Direct Marketing Systems, Inc. and
Valpak Dealers’ Association, Inc. Reply Comments on Service Performance Measurement
Systems for Market Dominant Products.
Valpak Direct Marketing Systems, Inc. and
Valpak Dealers’ Association, Inc. Comments
on Service Performance Measurement Systems for Market Dominant Products in Response to Order No. 83.
United States Postal Service (Postal Service) ........
Valpak Direct Marketing Systems, Inc. and Valpak
Dealers’ Association, Inc. (Valpak).
By the Commission.
Steven W. Williams,
Secretary.
[FR Doc. E8–28643 Filed 12–2–08; 8:45 am]
BILLING CODE 7710–FW–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–59025; File No. SR–NYSE–
2008–123]
Self-Regulatory Organizations; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change by New York
Stock Exchange LLC To Establish the
Minimum Price Variation of $0.0001 for
Orders and Quotations in Equity
Securities That Are Priced Below $1.00
per Share
November 26, 2008.
jlentini on PROD1PC65 with NOTICES
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 1 and Rule 19b–4 thereunder,2
notice is hereby given that on November
26, 2008, New York Stock Exchange
LLC (‘‘NYSE’’ or the ‘‘Exchange’’) filed
with the Securities and Exchange
Commission (the ‘‘Commission’’) the
proposed rule change as described in
Items I and II below, which Items have
been prepared by the self-regulatory
organization. The Commission is
publishing this 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
Exchange Rule 62 (Variations) to
1 15
2 17
U.S.C. 78s(b)(1).
CFR 240.19b–4.
VerDate Aug<31>2005
13:59 Dec 02, 2008
Jkt 217001
Filing date
establish the minimum price variation
of $0.0001 for orders and quotations in
equity securities that are priced below
$1.00 per share, which will enable the
Exchange to accept orders in sub-penny
increments for those securities.
The text of the proposed rule change
is available at https://www.nyse.com,
NYSE’s principal office, 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 the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange seeks to amend
Exchange Rule 62 (Variations) to
establish the minimum price variation
of $0.0001 for orders and quotations in
equity securities that are priced below
$1.00 per share, which will enable the
Exchange to accept orders in sub-penny
increments 3 for those securities.
3 The Exchange is currently modifying its systems
to enable it to quote and trade in sub-penny
increments and will file a separate proposal with
the Commission at a later date.
PO 00000
Frm 00042
Fmt 4703
Sfmt 4703
January 18, 2008.
February 1, 2008.
January 18, 2008.
February 1, 2008.
July 9, 2008.
Background
On August 28, 2000, the Exchange
began trading in decimals.4 At that time,
the Exchange amended NYSE Rule 62 to
provide that bids and offers in securities
traded on the NYSE would be at a
minimum price variation set by the
NYSE.5 At the initiation of decimal
trading, the NYSE announced that the
minimum price variation for all stocks
trading on the Exchange would be one
cent ($.01).6 Rule 62 was subsequently
amended to establish a minimum price
variation of $.10 (ten cents) for
securities trading on the Exchange
priced at $100,000 and above.7
On April 6, 2005, the SEC adopted
Regulation NMS, which is a series of
initiatives designed to modernize and
improve the national market system for
trading equity securities. Rule 612 of
Regulation NMS 8 permits markets to
accept, rank and display orders priced
less than $1.00 per share in a minimum
pricing increment of $0.0001.
Currently the Exchange systems do
not accept orders in sub-penny
increments for securities priced below
$1.00; however, Exchange systems
recognize protected quotations with a
sub-penny component in its round-lot 9
4 See Securities Exchange Act Release No. 42914
(June 8, 2000), 65 FR 38010 (June 19, 2000).
5 See Securities Exchange Act Release No. 43230
(August 30, 2000), 65 54589 (September 8, 2000)
(SR–NYSE–00–22).
6 Id.
7 See Securities Exchange Act Release No. 49374
(March 8, 2004), 69 FR 11923 (March 12, 2004) (SR–
NYSE–2004–10).
8 See Securities Exchange Act Release No. 51808
(June 9, 2005), 70 FR 37496 (June 29, 2005) 17 CFR
242.612.
9 The Exchange system enhancements that will
enable recognition of sub-penny quotations for
pricing of odd-lots in the odd-lot system are
E:\FR\FM\03DEN1.SGM
Continued
03DEN1
73680
Federal Register / Vol. 73, No. 233 / Wednesday, December 3, 2008 / Notices
market and accommodate away market
executions in sub-pennies, in
compliance with SEC Rules 611 and
612.
Proposed Amendment to NYSE Rule 62
The Exchange proposes to amend its
Rule 62 to conform to the provisions of
SEC Rule 612 by establishing that the
minimum price variation for orders and
quotations in equity securities on the
Exchange below a $1.00 will be $0.0001.
Specifically, the Exchange proposes to
amend .10 under Supplementary
Material of Rule 62 to provide the
following table:
rule change on November 28, 2008.
Commencing operation on that date will
enable the Exchange, on a traditionally
moderate trading day, to ensure the
optimal efficiency of its software prior
to resumption of normal trading on
December 1, 2008.
2. Statutory Basis
jlentini on PROD1PC65 with NOTICES
The basis under the Securities
Exchange Act of 1934 (the ‘‘Act’’) 11 for
this proposed rule change is the
requirement under Section 6(b)(5) 12
that an Exchange have rules that are
designed to promote just and equitable
principles of trade, to foster cooperation
and coordination with persons engaged
Minimum
in regulating, clearing, settling,
Price of order or interest
price vari- processing information with respect to,
ation
and facilitating transactions in
Less than $1.00 ..........................
$.0001 securities, to remove impediments to
and perfect the mechanism of a free and
$1.00–99,999.99 .........................
.01
$100,000 and greater .................
.10
open market and a national market
system and, in general, to protect
When an order is received on the
investors and the public interest. The
NYSE that contains a sub-penny
proposed rule change also is designed to
component, the Exchange will round
support the principles of Section
down any bid price down to the next
11A(a)(1) 13 in that it seeks to assure
round penny and round any offer price
economically efficient execution of
up to the next round penny. The order
securities transactions, make it
will be sent to NYSE trading systems
practicable for brokers to execute
and the Consolidated Quotation
investors’ orders in the best market and
System 10 with the rounded price. The
provide an opportunity for investors’
Exchange therefore proposes to replace
orders to be executed without the
.20 under Supplementary Material with participation of a dealer. The Exchange
language to indicate that for securities
believes that the instant proposal is in
whose MPV is $.0001, the Exchange will keeping with these principles in that it
round the bid price down to the next
seeks to amend NYSE Rule 62 to
whole penny or round the offer price up conform to the provisions of SEC Rule
to the next whole penny when
612 by establishing that the minimum
transmitting the bid or offer to the
price variation for securities trading on
Consolidated Quotation System. The
the Exchange below a $1.00 will be
rounded price assigned to the order or
$0.0001.
quotation is used for all order handling
B. Self-Regulatory Organization’s
purposes including routing and
Statement on Burden on Competition
execution.
The Exchange intends to initiate the
The Exchange does not believe that
systemic operation related to the above
the proposed rule change will impose
any burden on competition that is not
contained in the technology associated with Phase
necessary or appropriate in furtherance
2 implementation of the New Market Model. See
of the purposes of the Act.
Securities Exchange Act Release No. 58845 (October
24, 2008), 73 FR 64379 (October 29, 2008) (SR–
NYSE–2008–46). Until the conclusion of the second
Phase of implementation, which is scheduled to be
completed no longer than ten weeks after October
24, 2008, those odd-lot orders that would receive
an execution price based on the NBBO as set forth
in NYSE Rule 124 will be priced at the last NBBO
that did not contain a sub-penny price.
10 This practice is currently done on NYSE Arca
Exchange. Commentary .04 NYSE Arca Rule 7.6(a)
provides:
The minimum price variation (‘‘MPV’’) for
quoting and entry of orders in equity securities
traded on the NYSE Arca Marketplace is $0.01, with
the exception of securities that are priced less than
$1.00 for which the MPV for order entry is $0.0001,
provided, however, that the Corporation shall round
the bid down to the next whole penny or the offer
up to the next whole penny and display the
rounded bid or offer in the consolidated quotation
system.
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13:59 Dec 02, 2008
Jkt 217001
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 foregoing proposed rule
change: (1) Does not significantly affect
11 15
U.S.C. 78a.
U.S.C. 78f(b)(5).
13 15 U.S.C. 78k–1(a)(1).
12 15
PO 00000
Frm 00043
Fmt 4703
Sfmt 4703
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, the proposed rule
change has become effective pursuant to
Section 19(b)(3)(A) of the Act 14 and
Rule 19b–4(f)(6) thereunder.15
NYSE requested that the Commission
waive the 30-day operative delay, which
would make the rule change operative
as of November 28, 2008. The
Commission hereby grants the
Exchange’s request and believes this
action is consistent with the protection
of investors and the public interest.16
The Exchange’s proposed rule is based
on that of another exchange 17 and does
not appear to raise any novel or
significant issues. Accordingly, the
Commission designates the proposed
rule change operative as of November
28, 2008.
At any time within 60 days of the
filing of such proposed rule change, the
Commission may summarily abrogate
such rule change if it appears to the
Commission that such action is
necessary or appropriate in the public
interest, for the protection of investors,
or otherwise in furtherance of the
purposes of the Act.18
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–2008–123 on the
subject line.
14 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). 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.
16 For purposes only of waiving the operative
delay for this proposal, the Commission has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
17 See supra note 10.
18 15 U.S.C. 78s(b)(3)(C).
15 17
E:\FR\FM\03DEN1.SGM
03DEN1
Federal Register / Vol. 73, No. 233 / Wednesday, December 3, 2008 / Notices
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–2008–123. 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 NYSE. 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–2008–123 and
should be submitted on or before
December 24, 2008.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.19
Jill M. Peterson,
Assistant Secretary.
[FR Doc. E8–28662 Filed 12–2–08; 8:45 am]
jlentini on PROD1PC65 with NOTICES
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–59027; File No. SR–
NYSEALTR–2008–11]
Self-Regulatory Organizations; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change by NYSE
Alternext US LLC To Establish the
Minimum Price Variation of $0.0001 for
Orders and Quotations in Equity
Securities that are Priced Below $1.00
Per Share
November 28, 2008.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 1 and Rule 19b–4 thereunder,2
notice is hereby given that, on
November 26, 2008, NYSE Alternext US
LLC (the ‘‘Exchange’’ or ‘‘NYSE
Alternext’’) filed with the Securities and
Exchange Commission (the
‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the Exchange. The Commission is
publishing this 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
Rule 62–NYSE Alternext Equities to
conform with amendments to NYSE
Rule 62 recently filed by the New York
Stock Exchange LLC (‘‘NYSE’’).
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. The text of the proposed
rule change is available on the
Exchange’s Web site, at the Exchange’s
principal office, and at the
Commission’s Public Reference Room.
1 15
19 17
CFR 200.30–3(a)(12).
VerDate Aug<31>2005
13:59 Dec 02, 2008
2 17
Jkt 217001
PO 00000
U.S.C.78s(b)(1).
CFR 240.19b–4.
Frm 00044
Fmt 4703
73681
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of the proposed rule
change is to amend Rule 62–NYSE
Alternext Equities to conform with
amendments to NYSE Rule 62 recently
filed by the NYSE.
Background
As described more fully in a related
rule filing, NYSE Euronext acquired The
Amex Membership Corporation
(‘‘AMC’’) pursuant to an Agreement and
Plan of Merger, dated January 17, 2008
(the ‘‘Merger’’). In connection with the
Merger, the Exchange’s predecessor, the
American Stock Exchange LLC
(‘‘Amex’’), a subsidiary of AMC, became
a subsidiary of NYSE Euronext called
NYSE Alternext U.S. LLC,3 and will
continue to operate as a national
securities exchange registered under
Section 6 of the Act.4 The effective date
of the Merger was October 1, 2008.
In connection with the Merger, the
Exchange will relocate all equities
trading conducted on the Exchange
legacy trading systems and facilities
located at 86 Trinity Place, New York,
New York (the ‘‘86 Trinity Trading
Systems’’), to trading systems and
facilities located at 11 Wall Street, New
York, New York (the ‘‘Equities
Relocation’’). The Exchange’s equity
trading systems and facilities at 11 Wall
Street (the ‘‘NYSE Alternext Trading
Systems’’) will be operated by the NYSE
on behalf of the Exchange.5
Similarly, the Exchange will relocate
the trading of certain debt securities
currently conducted on the 86 Trinity
Trading Systems to an automated bond
trading system (‘‘NYSE Alternext
Bonds’’) that will be operated by the
NYSE on behalf of the Exchange (the
‘‘Bonds Relocation’’). The Exchange will
also relocate all options trading
currently conducted on the 86 Trinity
Trading Systems to new facilities of the
Exchange to be located at 11 Wall Street,
which will use a trading system based
on the options trading system used by
NYSE Arca, Inc. (the ‘‘Options
Relocation’’).6
3 See Securities Exchange Act Release No. 58673
(September 29, 2008), 73 FR 57707 (October 3,
2008) (SR–NYSE–2008–60 and SR–Amex 2008–62)
(approving the Merger).
4 15 U.S.C. 78f.
5 See Securities Exchange Act Release No. 58705
(October 1, 2008), 73 FR 58995 (October 8, 2008)
(SR–Amex 2008–63) (approving the Equities
Relocation).
6 See Securities Exchange Act Release No. 58833
(October 22, 2008), 73 FR 64642 (October 30, 2008)
Continued
Sfmt 4703
E:\FR\FM\03DEN1.SGM
03DEN1
]]>Agencies
[Federal Register Volume 73, Number 233 (Wednesday, December 3, 2008)]
[Notices]
[Pages 73679-73681]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-28662]
=======================================================================
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-59025; File No. SR-NYSE-2008-123]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by New York Stock Exchange LLC To
Establish the Minimum Price Variation of $0.0001 for Orders and
Quotations in Equity Securities That Are Priced Below $1.00 per Share
November 26, 2008.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on November 26, 2008, New York Stock Exchange LLC (``NYSE'' or the
``Exchange'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I and II
below, which Items have been 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\ 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 Exchange Rule 62 (Variations) to
establish the minimum price variation of $0.0001 for orders and
quotations in equity securities that are priced below $1.00 per share,
which will enable the Exchange to accept orders in sub-penny increments
for those securities.
The text of the proposed rule change is available at https://
www.nyse.com, NYSE's principal office, 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 the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange seeks to amend Exchange Rule 62 (Variations) to
establish the minimum price variation of $0.0001 for orders and
quotations in equity securities that are priced below $1.00 per share,
which will enable the Exchange to accept orders in sub-penny increments
\3\ for those securities.
---------------------------------------------------------------------------
\3\ The Exchange is currently modifying its systems to enable it
to quote and trade in sub-penny increments and will file a separate
proposal with the Commission at a later date.
---------------------------------------------------------------------------
Background
On August 28, 2000, the Exchange began trading in decimals.\4\ At
that time, the Exchange amended NYSE Rule 62 to provide that bids and
offers in securities traded on the NYSE would be at a minimum price
variation set by the NYSE.\5\ At the initiation of decimal trading, the
NYSE announced that the minimum price variation for all stocks trading
on the Exchange would be one cent ($.01).\6\ Rule 62 was subsequently
amended to establish a minimum price variation of $.10 (ten cents) for
securities trading on the Exchange priced at $100,000 and above.\7\
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release No. 42914 (June 8,
2000), 65 FR 38010 (June 19, 2000).
\5\ See Securities Exchange Act Release No. 43230 (August 30,
2000), 65 54589 (September 8, 2000) (SR-NYSE-00-22).
\6\ Id.
\7\ See Securities Exchange Act Release No. 49374 (March 8,
2004), 69 FR 11923 (March 12, 2004) (SR-NYSE-2004-10).
---------------------------------------------------------------------------
On April 6, 2005, the SEC adopted Regulation NMS, which is a series
of initiatives designed to modernize and improve the national market
system for trading equity securities. Rule 612 of Regulation NMS \8\
permits markets to accept, rank and display orders priced less than
$1.00 per share in a minimum pricing increment of $0.0001.
---------------------------------------------------------------------------
\8\ See Securities Exchange Act Release No. 51808 (June 9,
2005), 70 FR 37496 (June 29, 2005) 17 CFR 242.612.
---------------------------------------------------------------------------
Currently the Exchange systems do not accept orders in sub-penny
increments for securities priced below $1.00; however, Exchange systems
recognize protected quotations with a sub-penny component in its round-
lot \9\
[[Page 73680]]
market and accommodate away market executions in sub-pennies, in
compliance with SEC Rules 611 and 612.
---------------------------------------------------------------------------
\9\ The Exchange system enhancements that will enable
recognition of sub-penny quotations for pricing of odd-lots in the
odd-lot system are contained in the technology associated with Phase
2 implementation of the New Market Model. See Securities Exchange
Act Release No. 58845 (October 24, 2008), 73 FR 64379 (October 29,
2008) (SR-NYSE-2008-46). Until the conclusion of the second Phase of
implementation, which is scheduled to be completed no longer than
ten weeks after October 24, 2008, those odd-lot orders that would
receive an execution price based on the NBBO as set forth in NYSE
Rule 124 will be priced at the last NBBO that did not contain a sub-
penny price.
---------------------------------------------------------------------------
Proposed Amendment to NYSE Rule 62
The Exchange proposes to amend its Rule 62 to conform to the
provisions of SEC Rule 612 by establishing that the minimum price
variation for orders and quotations in equity securities on the
Exchange below a $1.00 will be $0.0001. Specifically, the Exchange
proposes to amend .10 under Supplementary Material of Rule 62 to
provide the following table:
------------------------------------------------------------------------
Minimum
Price of order or interest price
variation
------------------------------------------------------------------------
Less than $1.00............................................. $.0001
$1.00-99,999.99............................................. .01
$100,000 and greater........................................ .10
------------------------------------------------------------------------
When an order is received on the NYSE that contains a sub-penny
component, the Exchange will round down any bid price down to the next
round penny and round any offer price up to the next round penny. The
order will be sent to NYSE trading systems and the Consolidated
Quotation System \10\ with the rounded price. The Exchange therefore
proposes to replace .20 under Supplementary Material with language to
indicate that for securities whose MPV is $.0001, the Exchange will
round the bid price down to the next whole penny or round the offer
price up to the next whole penny when transmitting the bid or offer to
the Consolidated Quotation System. The rounded price assigned to the
order or quotation is used for all order handling purposes including
routing and execution.
---------------------------------------------------------------------------
\10\ This practice is currently done on NYSE Arca Exchange.
Commentary .04 NYSE Arca Rule 7.6(a) provides:
The minimum price variation (``MPV'') for quoting and entry of
orders in equity securities traded on the NYSE Arca Marketplace is
$0.01, with the exception of securities that are priced less than
$1.00 for which the MPV for order entry is $0.0001, provided,
however, that the Corporation shall round the bid down to the next
whole penny or the offer up to the next whole penny and display the
rounded bid or offer in the consolidated quotation system.
---------------------------------------------------------------------------
The Exchange intends to initiate the systemic operation related to
the above rule change on November 28, 2008. Commencing operation on
that date will enable the Exchange, on a traditionally moderate trading
day, to ensure the optimal efficiency of its software prior to
resumption of normal trading on December 1, 2008.
2. Statutory Basis
The basis under the Securities Exchange Act of 1934 (the ``Act'')
\11\ for this proposed rule change is the requirement under Section
6(b)(5) \12\ that an Exchange have rules that are designed to promote
just and equitable principles of trade, to foster cooperation and
coordination with persons engaged in regulating, clearing, settling,
processing information with respect to, and facilitating transactions
in securities, 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 proposed rule change
also is designed to support the principles of Section 11A(a)(1) \13\ in
that it seeks to assure economically efficient execution of securities
transactions, make it practicable for brokers to execute investors'
orders in the best market and provide an opportunity for investors'
orders to be executed without the participation of a dealer. The
Exchange believes that the instant proposal is in keeping with these
principles in that it seeks to amend NYSE Rule 62 to conform to the
provisions of SEC Rule 612 by establishing that the minimum price
variation for securities trading on the Exchange below a $1.00 will be
$0.0001.
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\11\ 15 U.S.C. 78a.
\12\ 15 U.S.C. 78f(b)(5).
\13\ 15 U.S.C. 78k-1(a)(1).
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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 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,
the proposed rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \14\ and Rule 19b-4(f)(6) thereunder.\15\
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\14\ 15 U.S.C. 78s(b)(3)(A).
\15\ 17 CFR 240.19b-4(f)(6). 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.
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NYSE requested that the Commission waive the 30-day operative
delay, which would make the rule change operative as of November 28,
2008. The Commission hereby grants the Exchange's request and believes
this action is consistent with the protection of investors and the
public interest.\16\ The Exchange's proposed rule is based on that of
another exchange \17\ and does not appear to raise any novel or
significant issues. Accordingly, the Commission designates the proposed
rule change operative as of November 28, 2008.
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\16\ For purposes only of waiving the operative delay for this
proposal, the Commission has considered the proposed rule's impact
on efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
\17\ See supra note 10.
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At any time within 60 days of the filing of such proposed rule
change, the Commission may summarily abrogate such rule change if it
appears to the Commission that such action is necessary or appropriate
in the public interest, for the protection of investors, or otherwise
in furtherance of the purposes of the Act.\18\
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\18\ 15 U.S.C. 78s(b)(3)(C).
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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-2008-123 on the subject line.
[[Page 73681]]
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-2008-123. 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 NYSE. 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-2008-123 and should be
submitted on or before December 24, 2008.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\19\
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\19\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. E8-28662 Filed 12-2-08; 8:45 am]
BILLING CODE 8011-01-P
