Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing of Proposed Rule Change Amending Rule 6.47A To Reduce the Order Exposure Period from Three Seconds to One Second, 77091-77093 [E8-30067]
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Federal Register / Vol. 73, No. 244 / Thursday, December 18, 2008 / Notices
Commission believes that the Nasdaq’s
proposed rule change raises no new
regulatory issues that were not
previously considered by the
Commission in approving the NYSE’s
similar proposal. In approving the NYSE
proposal, the Commission found that
adopting a $4 price requirement for
initial listing was consistent with the
requirements of the Act and that this
requirement meets the criteria from the
definition of penny stock contained in
Rule 3a51–1 under the Act.15 Further,
the Commission notes that the NYSE’s
proposal was subject to full notice and
comment, and the Commission received
no comments on the price requirement
portion of the NYSE’s rule proposal.
Accordingly, for the reasons discussed
above, the Commission finds that the
Exchange’s proposal is consistent with
the protection of investors and the
public interest and therefore designates
the proposed rule change operative
immediately upon filing.16
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.
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:
mstockstill on PROD1PC66 with NOTICES
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–NASDAQ–2008–093 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–NASDAQ–2008–093. 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
15 Id.
16 For the purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
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17:51 Dec 17, 2008
Jkt 217001
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 the filing also will be available
for inspection and copying at the
principal office of the self-regulatory
organization. All comments received
will be posted without change; the
Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–
NASDAQ–2008–093 and should be
submitted on or before January 8, 2009.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.17
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–29967 Filed 12–17–08; 8:45 am]
BILLING CODE 8011–01–P
[Release No. 34–59082; File No. SR–
NYSEArca–2008–135]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing of Proposed
Rule Change Amending Rule 6.47A To
Reduce the Order Exposure Period
from Three Seconds to One Second
December 11, 2008.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that, on December
9, 2008, NYSE Arca, Inc. (‘‘NYSE Arca’’
or the ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(the ‘‘Commission’’) the proposed rule
change as described in Items I, II, and
III below, which Items have been
17 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
1 15
Frm 00092
Fmt 4703
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 its
rules governing order exposure
requirements on the OX system. This
proposal will revise Rule 6.47A. A copy
of this filing is available on the
Exchange’s Web site at https://
www.nyse.com, at the Exchange’s
principal office 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 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
SECURITIES AND EXCHANGE
COMMISSION
PO 00000
77091
Sfmt 4703
The purpose of the proposed rule
change is to reduce the exposure period
contained in Rule 6.47A, Order
Exposure Requirements—OX, from
three seconds to one second.
Rule 6.47A provides that with respect
to orders routed to OX, Users may not
execute as principal orders they
represent as agent unless (i) Agency
orders are first exposed on the Exchange
for at least three (3) seconds or (ii) the
User has been bidding or offering on the
Exchange for at least three (3) seconds
prior to receiving an agency order that
is executable against such bid or offer.
Specifically, order entry firms may
not execute as principal, orders they
represent as agent unless: (i) the agency
order has first exposed on the NYSE
Arca OX trading system for at least three
seconds; (ii) the order entry firm has
been bidding or offering for at least
three seconds prior to receiving the
agency order that is executable against
such bid or offer. During this threesecond exposure period, other market
participants may enter orders to trade
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18DEN1
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77092
Federal Register / Vol. 73, No. 244 / Thursday, December 18, 2008 / Notices
against the exposed order. Under this
proposal, the exposure periods
contained in Rule 6.47A would be
reduced to one second.
The Exchange notes that in
incorporating a three-second order
exposure period in Rule 6.47A, it
recognized that three seconds would not
be long enough to allow human
interaction with the exposed orders.
Rather, market participants on NYSE
Arca are sufficiently automated that
they can react to these orders
electronically. In this context, NYSE
Arca believes it would be in all market
participants’ best interest to minimize
the exposure period to a time frame that
continues to allow adequate time for
market participants to electronically
respond, while at the same time
reducing any market risk associated
with the longer exposure period. In this
respect, the Exchange states that its
experience with the three-second
exposure time period indicates that one
second would provide an adequate
response time.4 Accordingly, the
Exchange does not believe it is
necessary or beneficial to the orders
being exposed to continue to subject
them to market risk for a full three
seconds.
When adopting the existing threesecond order exposure period, the
Exchange realized that, in today’s
electronic trading environment, a threesecond exposure period could provide
timely executions of orders while still
providing market participants with an
adequate opportunity to compete for
exposed bids and offers. Continuing on
that same logic, the Exchange believes
that reducing its order exposure period
from three seconds to one second will
benefit market participants. Since
market participants have the ability to
react to these orders electronically, and
regularly do so in less than one second,
the Exchange believes that reducing the
time period to one second will continue
to afford sufficient time to ensure
effective interaction with orders. At the
same time, NYSE Arca believes that
reducing the time period to one second
will allow it to provide investors and
other market participants with more
timely executions, thereby reducing
market risk.
A shortened exposure period would
be fully consistent with the electronic
nature of the NYSE Arca OX trading
system. In order to substantiate that
market participants on NYSE Arca
would not be disadvantaged by a
4 There
are numerous market participants on
NYSE Arca that have the capability and already opt
to respond within the first one-second of the
present three second exposure period, currently in
force for the OX trading system.
VerDate Aug<31>2005
17:51 Dec 17, 2008
Jkt 217001
reduced exposure period, the Exchange
conducted a survey of OTP Firms to
find out whether they had the systems
capability available that would allow
them to respond in a meaningful way
within the proposed timeframe. The
Exchange surveyed twenty-six (26) OTP
Firms, representing fifty-one (51)
different OTP Holders, that regularly
access the Exchange on an electronic
basis,5 regarding the proposed change to
Rule 6.47A, specifically the Exchange
asked; 1. ‘‘What is the approximate
turnaround time for your firm to take in,
process and respond to trading interest
posted on NYSE Arca Options?’’ and 2.
‘‘Do you foresee any problems if NYSE
Arca Options reduces the exposure time
from three seconds to one second?’’ Of
the nine OTP Firms that responded to
the Exchange’s survey, all but one
indicated that their approximate
turnaround time for responding to
trading interest was equal to, or less
than, 100 milliseconds. The other
responding OTP Firm simply stated that
their turnaround time was ‘‘less than
one second’’. None of the responding
OTP Firms anticipated any problems
related to order processing, if the
Exchange was to reduce the exposure
period to one second.
Based on the findings of the survey,
the Exchange believes that the proposed
exposure period will continue to
provide market participants with
sufficient time to respond, and compete
for orders, while also reducing some of
the risks associated with a prolonged
exposure period.
2. Statutory Basis
NYSE Arca believes that the proposed
rule change is consistent with Section
6(b) of the Act 6 in general, and furthers
the objectives of Section 6(b)(5) of the
Act 7 in particular, because it is
designed to prevent fraudulent and
manipulative acts and practices, to
promote just and equitable principles of
trade, to foster cooperation and
coordination with persons engaged in
facilitating transactions in securities,
and to remove impediments to and
perfect the mechanism of a free and
open market and a national market
system. In particular, the Exchange
believes that the proposed rule change
will provide investors with more timely
execution of their options orders, while
ensuring that there is an adequate
exposure of all orders on NYSE Arca.
5 The twenty-six (26) surveyed collectively
accounted for slightly more than 90% of all
electronically executed transactions on the NYSE
Arca OX system, during the month of October 2008.
6 15 U.S.C. 78f(b).
7 15 U.S.C. 78f(b)(5).
PO 00000
Frm 00093
Fmt 4703
Sfmt 4703
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 solicited comments
from a broad cross section of OTP
Holders. As previously stated, the
Exchange received no negative
comments on the proposed rule
change.8
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Within 35 days of the date of
publication of this notice in the Federal
Register or within such longer period (i)
as the Commission may designate up to
90 days of such date if it finds such
longer period to be appropriate and
publishes its reasons for so finding or
(ii) as to which the self-regulatory
organization consents, the Commission
will:
(A) By order approve the proposed
rule change, or
(B) institute proceedings to determine
whether the proposed rule change
should be disapproved.
The Exchange has requested
accelerated approval of this proposed
rule change prior to the 30th day after
the date of publication of the notice in
the Federal Register. The Commission
is considering granting accelerated
approval of the proposed rule change at
the end of a 15-day comment period.
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–NYSEArca–2008–135 on
the subject line.
8 See Form 19b–4 and e-mail from Glenn Gsell,
Managing Director, NYSE Regulation, to Kristie
Diemer, Special Counsel, Commission, dated
December 10, 2008 (requesting that language from
Item 5 of Form 19b–4 replace language in Item II,
Part C of Exhibit 1).
E:\FR\FM\18DEN1.SGM
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Federal Register / Vol. 73, No. 244 / Thursday, December 18, 2008 / Notices
financing of a small concern, has sought
an exemption under Section 312 of the
• Send paper comments in triplicate
Act and Section 107.730, Financings
to Secretary, Securities and Exchange
which Constitute Conflicts of Interest, of
Commission, 100 F Street, NE.,
the Small Business Administration
Washington, DC 20549–1090.
(‘‘SBA’’) Rules and Regulations (13 CFR
All submissions should refer to File
107.730). Solutions Capital I, L.P.,
Number SR–NYSEArca–2008–135. This proposes to provide equity/debt security
file number should be included on the
financing to Jet Plastica Industries, Inc.,
subject line if e-mail is used. To help the 1100 Schwab Road, Hatfield, PA 19440.
Commission process and review your
The financing is contemplated for
comments more efficiently, please use
working capital and general corporate
only one method. The Commission will purposes.
post all comments on the Commission’s
The financing is brought within the
Internet Web site (https://www.sec.gov/
purview of § 107.73 0(a)(1) of the
rules/sro.shtml). Copies of the
Regulations because MCG Capital
submission, all subsequent
Corporation, an Associate of Solutions
amendments, all written statements
Capital I, L.P., owns more than ten
with respect to the proposed rule
percent of Jet Plastica Industries, Inc.;
change that are filed with the
therefore Jet Plastica Industries, Inc. is
Commission, and all written
considered an Associate of Solutions
communications relating to the
Capital I, L.P., as defined in Sec. 105.50
proposed rule change between the
of the regulations.
Commission and any person, other than
Notice is hereby given that any
those that may be withheld from the
interested person may submit written
public in accordance with the
comments on the transaction to the
provisions of 5 U.S.C. 552, will be
Associate Administrator for Investment,
available for inspection and copying in
U.S. Small Business Administration,
the Commission’s Public Reference
409 Third Street, SW., Washington, DC
Section, 100 F Street, NE., Washington,
20416.
DC 20549–1090. Copies of the filing will
December 1, 2008.
also be available for inspection and
copying at NYSE Arca’s principal office. A. Joseph Shepard,
Associate Administrator for Investment.
All comments received will be posted
[FR Doc. E8–29725 Filed 12–17–08; 8:45 am]
without change; the Commission does
BILLING CODE 8025–01–P
not edit personal identifying
information from submissions. You
should submit only information that
you wish to make available publicly. All DEPARTMENT OF STATE
submissions should refer to File
[Public Notice 6459]
Number SR–NYSEArca–2008–135 and
should be submitted on or before
Bureau of Educational and Cultural
January 2, 2009.
Affairs (ECA) Request for Grant
Proposals: Three Summer Institutes
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
for 2009, Including a Summer Institute
authority.9
for Norwegian Students in the
Florence E. Harmon,
Sciences, a Summer Institute for
European Student Leaders, and a
Acting Secretary.
Summer Institute for European Student
[FR Doc. E8–30067 Filed 12–17–08; 8:45 am]
Leaders in Education
BILLING CODE 8011–01–P
Paper Comments
SMALL BUSINESS ADMINISTRATION
[License No. 03/03–0247]
mstockstill on PROD1PC66 with NOTICES
Solutions Capital I, L.P.; Notice
Seeking Exemption Under Section 312
of the Small Business Investment Act,
Conflicts of Interest
Notice is hereby given that Solutions
Capital I, L.P., 1100 Wilson Blvd, Suite
3000, Arlington, VA 22209, a Federal
Licensee under the Small Business
Investment Act of 1958, as amended
(‘‘the Act’’), in connection with the
9 17
CFR 200.30–3(a)(12).
VerDate Aug<31>2005
19:13 Dec 17, 2008
Jkt 217001
Announcement Type: Three new
Cooperative Agreements.
Funding Opportunity Number: ECA/
A/E/EUR 09–05.
Catalog of Federal Domestic
Assistance Number: 00.000.
Key Dates: April 1, 2009–July 1, 2010.
Application Deadline: February 26,
2009.
Executive Summary: The Office of
Academic Exchange Programs,
European and Eurasian Programs
Branch (ECA/A/E/EUR) announces an
open competition for three (3) Summer
Institutes for European undergraduate
students to take place during the
summer of 2009. The Institutes vary in
focus, the number of participants,
PO 00000
Frm 00094
Fmt 4703
Sfmt 4703
77093
length, timing, and funding. Accredited,
post-secondary educational institutions
in the United States may submit
proposals to administer one or more of
the Institute programs. Institutions must
submit separate proposals for each
Institute. All Institutes will be funded in
FY2009 pending the availability of
funds.
I. Funding Opportunity Description
Authority: Overall grant making
authority for this program is contained
in the Mutual Educational and Cultural
Exchange Act of 1961, Public Law 87–
256, as amended, also known as the
Fulbright-Hays Act. The purpose of the
Act is ‘‘to enable the Government of the
United States to increase mutual
understanding between the people of
the United States and the people of
other countries * * *; to strengthen the
ties which unite us with other nations
by demonstrating the educational and
cultural interests, developments, and
achievements of the people of the
United States and other nations * * *
and thus to assist in the development of
friendly, sympathetic and peaceful
relations between the United States and
the other countries of the world.’’ The
funding authority for the program above
is provided through legislation.
Purpose of each Summer Institute:
Please refer to the Project Objectives,
Goals, and Implementation (POGI)
document for a complete program
description for all three Institutes.
The Summer Institute for Norwegian
Students in the Sciences will introduce
twelve (12) undergraduate students who
have completed at least two years of
university studies in the natural
sciences at Norwegian institutions to the
scientific research being conducted on
the polar regions. Proposals should
interweave the themes and issues being
examined by the International Polar
Year (IPY) program into the Institute
plan. For example, topics covered in the
academic program may include climate
change, the influence of the polar
regions on the global system,
community and environmental
sustainability in the polar regions, and
and/or other issues being examined by
the IPY program.
The six-week Institute is also
intended to introduce Norwegian
students to the U.S. university
classroom and lab, campus life, and
offer them opportunities to interact with
their U.S. peers.
The U.S.-Norway Fulbright
Commission for Educational Exchange
will recruit and nominate the
participants. The Institute will take
place during a six-week period between
late June and mid-August, preferably
E:\FR\FM\18DEN1.SGM
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]]>Agencies
[Federal Register Volume 73, Number 244 (Thursday, December 18, 2008)]
[Notices]
[Pages 77091-77093]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-30067]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-59082; File No. SR-NYSEArca-2008-135]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
of Proposed Rule Change Amending Rule 6.47A To Reduce the Order
Exposure Period from Three Seconds to One Second
December 11, 2008.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby
given that, on December 9, 2008, NYSE Arca, Inc. (``NYSE Arca'' or the
``Exchange'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I, II,
and III 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 amend its rules governing order exposure
requirements on the OX system. This proposal will revise Rule 6.47A. A
copy of this filing is available on the Exchange's Web site at https://
www.nyse.com, at the Exchange's principal office 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 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 purpose of the proposed rule change is to reduce the exposure
period contained in Rule 6.47A, Order Exposure Requirements--OX, from
three seconds to one second.
Rule 6.47A provides that with respect to orders routed to OX, Users
may not execute as principal orders they represent as agent unless (i)
Agency orders are first exposed on the Exchange for at least three (3)
seconds or (ii) the User has been bidding or offering on the Exchange
for at least three (3) seconds prior to receiving an agency order that
is executable against such bid or offer.
Specifically, order entry firms may not execute as principal,
orders they represent as agent unless: (i) the agency order has first
exposed on the NYSE Arca OX trading system for at least three seconds;
(ii) the order entry firm has been bidding or offering for at least
three seconds prior to receiving the agency order that is executable
against such bid or offer. During this three-second exposure period,
other market participants may enter orders to trade
[[Page 77092]]
against the exposed order. Under this proposal, the exposure periods
contained in Rule 6.47A would be reduced to one second.
The Exchange notes that in incorporating a three-second order
exposure period in Rule 6.47A, it recognized that three seconds would
not be long enough to allow human interaction with the exposed orders.
Rather, market participants on NYSE Arca are sufficiently automated
that they can react to these orders electronically. In this context,
NYSE Arca believes it would be in all market participants' best
interest to minimize the exposure period to a time frame that continues
to allow adequate time for market participants to electronically
respond, while at the same time reducing any market risk associated
with the longer exposure period. In this respect, the Exchange states
that its experience with the three-second exposure time period
indicates that one second would provide an adequate response time.\4\
Accordingly, the Exchange does not believe it is necessary or
beneficial to the orders being exposed to continue to subject them to
market risk for a full three seconds.
---------------------------------------------------------------------------
\4\ There are numerous market participants on NYSE Arca that
have the capability and already opt to respond within the first one-
second of the present three second exposure period, currently in
force for the OX trading system.
---------------------------------------------------------------------------
When adopting the existing three-second order exposure period, the
Exchange realized that, in today's electronic trading environment, a
three-second exposure period could provide timely executions of orders
while still providing market participants with an adequate opportunity
to compete for exposed bids and offers. Continuing on that same logic,
the Exchange believes that reducing its order exposure period from
three seconds to one second will benefit market participants. Since
market participants have the ability to react to these orders
electronically, and regularly do so in less than one second, the
Exchange believes that reducing the time period to one second will
continue to afford sufficient time to ensure effective interaction with
orders. At the same time, NYSE Arca believes that reducing the time
period to one second will allow it to provide investors and other
market participants with more timely executions, thereby reducing
market risk.
A shortened exposure period would be fully consistent with the
electronic nature of the NYSE Arca OX trading system. In order to
substantiate that market participants on NYSE Arca would not be
disadvantaged by a reduced exposure period, the Exchange conducted a
survey of OTP Firms to find out whether they had the systems capability
available that would allow them to respond in a meaningful way within
the proposed timeframe. The Exchange surveyed twenty-six (26) OTP
Firms, representing fifty-one (51) different OTP Holders, that
regularly access the Exchange on an electronic basis,\5\ regarding the
proposed change to Rule 6.47A, specifically the Exchange asked; 1.
``What is the approximate turnaround time for your firm to take in,
process and respond to trading interest posted on NYSE Arca Options?''
and 2. ``Do you foresee any problems if NYSE Arca Options reduces the
exposure time from three seconds to one second?'' Of the nine OTP Firms
that responded to the Exchange's survey, all but one indicated that
their approximate turnaround time for responding to trading interest
was equal to, or less than, 100 milliseconds. The other responding OTP
Firm simply stated that their turnaround time was ``less than one
second''. None of the responding OTP Firms anticipated any problems
related to order processing, if the Exchange was to reduce the exposure
period to one second.
---------------------------------------------------------------------------
\5\ The twenty-six (26) surveyed collectively accounted for
slightly more than 90% of all electronically executed transactions
on the NYSE Arca OX system, during the month of October 2008.
---------------------------------------------------------------------------
Based on the findings of the survey, the Exchange believes that the
proposed exposure period will continue to provide market participants
with sufficient time to respond, and compete for orders, while also
reducing some of the risks associated with a prolonged exposure period.
2. Statutory Basis
NYSE Arca believes that the proposed rule change is consistent with
Section 6(b) of the Act \6\ in general, and furthers the objectives of
Section 6(b)(5) of the Act \7\ in particular, because it is designed to
prevent fraudulent and manipulative acts and practices, to promote just
and equitable principles of trade, to foster cooperation and
coordination with persons engaged in facilitating transactions in
securities, and to remove impediments to and perfect the mechanism of a
free and open market and a national market system. In particular, the
Exchange believes that the proposed rule change will provide investors
with more timely execution of their options orders, while ensuring that
there is an adequate exposure of all orders on NYSE Arca.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78f(b).
\7\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
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 solicited comments from a broad cross section of OTP
Holders. As previously stated, the Exchange received no negative
comments on the proposed rule change.\8\
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\8\ See Form 19b-4 and e-mail from Glenn Gsell, Managing
Director, NYSE Regulation, to Kristie Diemer, Special Counsel,
Commission, dated December 10, 2008 (requesting that language from
Item 5 of Form 19b-4 replace language in Item II, Part C of Exhibit
1).
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III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Within 35 days of the date of publication of this notice in the
Federal Register or within such longer period (i) as the Commission may
designate up to 90 days of such date if it finds such longer period to
be appropriate and publishes its reasons for so finding or (ii) as to
which the self-regulatory organization consents, the Commission will:
(A) By order approve the proposed rule change, or
(B) institute proceedings to determine whether the proposed rule
change should be disapproved.
The Exchange has requested accelerated approval of this proposed
rule change prior to the 30th day after the date of publication of the
notice in the Federal Register. The Commission is considering granting
accelerated approval of the proposed rule change at the end of a 15-day
comment period.
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-NYSEArca-2008-135 on the subject line.
[[Page 77093]]
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-NYSEArca-2008-135. 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 Section, 100 F Street,
NE., Washington, DC 20549-1090. Copies of the filing will also be
available for inspection and copying at NYSE Arca's principal office.
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-NYSEArca-2008-
135 and should be submitted on or before January 2, 2009.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
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\9\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-30067 Filed 12-17-08; 8:45 am]
BILLING CODE 8011-01-P
