Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by New York Stock Exchange LLC To Extend to March 27, 2009, the Operative Date of New York Stock Exchange Rule 2 Requirement That NYSE-Only Member Organizations Apply for and Be Approved as a Member of the Financial Industry Regulatory Authority, Inc., 80491-80492 [E8-31100]

Download as PDF Federal Register / Vol. 73, No. 251 / Wednesday, December 31, 2008 / Notices III. Conclusion It is therefore ordered, pursuant to Section 19(b)(2) of the Act,12 that the proposed rule change (SR–NYSE–2008– 109) be, and it hereby is, approved. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.13 Florence E. Harmon, Acting Secretary. [FR Doc. E8–31052 Filed 12–30–08; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–59143; File No. SR–NYSE– 2008–135] Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by New York Stock Exchange LLC To Extend to March 27, 2009, the Operative Date of New York Stock Exchange Rule 2 Requirement That NYSE-Only Member Organizations Apply for and Be Approved as a Member of the Financial Industry Regulatory Authority, Inc. December 22, 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 22, 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, II, and III below, which Items have been prepared by the selfregulatory 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 pwalker on PROD1PC71 with NOTICES The Exchange proposes to extend to March 27, 2009, the operative date of New York Stock Exchange (‘‘NYSE’’ or the ‘‘Exchange’’) Rule 2 requirement that NYSE-only member organizations apply for and be approved as a member of the Financial Industry Regulatory Authority, Inc. (‘‘FINRA’’). U.S.C. 78s(b)(2). CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). 2 15 U.S.C. 78a. 3 17 CFR 240.19b–4. 13 17 17:41 Dec 30, 2008 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 aspects of such statements. A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange is proposing to extend to March 27, 2009, the grace period for NYSE-only member organizations to apply for and be approved as a FINRA member, as required by NYSE Rule 2. In connection with the consolidation of NASD and NYSE Regulation member firm regulation operations into FINRA, which closed on July 30, 2007, the Exchange amended NYSE Rule 2 to require NYSE member organizations to also be FINRA members.4 In connection with those rule changes, the Commission approved a 60-day grace period within which NYSE-only member organizations must apply for and be approved for FINRA membership. In that rule filing, NYSEonly member organizations were defined as those member organizations that were not NASD members as of the date of the closing of the FINRA transaction. This grace period began on October 12, 2007, the date of Commission approval of the Exchange’s rule filing. In furtherance of the consolidation, FINRA adopted NASD IM–1013–1 to enable eligible NYSE member organizations to become FINRA members though an expedited process (the ‘‘FINRA Waive-in application process’’).5 At the close of the 60-day grace period, all but two of the former NYSEonly member organizations had applied for and been approved as FINRA members. On December 12, 2007, the Exchange filed for an extension of the grace period to June 30, 2008 for those 4 See Securities Exchange Act Release No. 34– 56654 (Oct. 12, 2007), 72 FR 59129 (Oct. 18, 2007) (SR–NYSE–2007–67). 5 See Securities Exchange Act Release No. 34– 56653 (Oct. 12, 2007), 72 FR 59127 (Oct. 18, 2007) (SR–NASD–2007–56). 12 15 VerDate Aug<31>2005 II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change Jkt 217001 PO 00000 Frm 00131 Fmt 4703 Sfmt 4703 80491 two firms.6 On June 30, 2008, the Exchange filed for another extension of the grace period to December 31, 2008.7 In that filing, the Exchange noted that those two firms had unique member qualification issues and were ineligible to participate in the FINRA Waive-in application process. As of December 19, 2008, one of those two firms has been approved as a FINRA member. With respect to the other firm, because the Exchange is working on a rule filing to amend Rule 2 to permit a broker dealer to be an NYSE member organization without a FINRA membership, the Exchange believes that the grace period should be further extended so that the remaining firm does not have to reapply for Exchange membership if the proposed change to Rule 2 is approved. Accordingly, the NYSE proposes to extend the grace period to March 27, 2009 for the firm that was an NYSE member organization as of July 30, 2007, but not a FINRA member. 2. Statutory Basis The basis under the Act for this proposed rule change is the requirement under Section 6(b)(5) 8 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. B. Self-Regulatory Organization’s Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others No written comments were solicited or received with respect to the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing rule change is being filed for immediate effectiveness pursuant to Section 19(b)(3)(A) 9 of the 6 See Securities Exchange Act Release No. 34– 56953 (Dec. 12, 2007), 72 FR 71990 (Dec. 19, 2007) (SR–NYSE–2007–115). 7 See Securities Exchange Act Release No. 34– 58096 (July 3, 2008), 73 FR 39764 (July 10, 2008) (SR–NYSE–2008–54). 8 15 U.S.C. 78f(b)(5). 9 15 U.S.C. 78s(b)(3)(A). E:\FR\FM\31DEN1.SGM 31DEN1 80492 Federal Register / Vol. 73, No. 251 / Wednesday, December 31, 2008 / Notices Act and Rule 19b–4(f)(3) 10 promulgated thereunder. The proposed rule change goes solely to the administration of the self-regulatory organization in that it is not a substantive change to NYSE Rule 2 and simply extends a pre-existing grace 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: pwalker on PROD1PC71 with NOTICES Electronic Comments • Use the Commission’s Internet comment form (http://www.sec.gov/ rules/sro.shtml); or • Send an e-mail to rulecomments@sec.gov. Please include File Number SR–NYSE–2008–135 on the subject line. Paper Comments • Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549–1090. All submissions should refer to File Number SR–NYSE–2008–135. 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 (http://www.sec.gov/ rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for inspection and copying in the Commission’s Public Reference Room, on official business days between the hours of 10 a.m. and 3 p.m. Copies 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–NYSE–2008–135 and should be submitted on or before January 21, 2009. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.11 Florence E. Harmon, Acting Secretary. [FR Doc. E8–31100 Filed 12–30–08; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–59145; File No. SR–NYSE– 2008–101] Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing of Proposed Rule Change To Establish Its New Risk Management Gateway Service December 22, 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 December 12, 2008, the New York Stock Exchange LLC (‘‘NYSE’’ 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. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to establish its new Risk Management Gateway (‘‘RMG’’) service. II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, NYSE 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 has prepared summaries, set forth in Sections A, B, and C below, of the most significant aspects of such statements. 11 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 10 17 CFR 240.19b–4(f)(3). VerDate Aug<31>2005 17:41 Dec 30, 2008 Jkt 217001 PO 00000 Frm 00132 Fmt 4703 Sfmt 4703 A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to offer, through its wholly-owned subsidiary NYSE Euronext Advanced Trading Solutions, Inc., the Risk Management Gateway (‘‘RMG’’) service to NYSE members and member organizations. NYSE Transact Tools, Inc., a division of the NYSE Euronext Advanced Trading Solutions Group (‘‘NYXATS’’), owns RMG.3 Background NYSE Rule 54 provides that only members are permitted to ‘‘* * * make or accept bids or offers, consummate transactions, or otherwise transact business on the Floor for any security admitted to dealings on the [Exchange] * * *.’’ 4 However, the Exchange permits NYSE members and member organizations (a ‘‘Sponsoring Member Organization’’) to sponsor access to Exchange systems by non-member firms or customers (‘‘Sponsored Participants’’). Prior to August 2008, requirements related to sponsored access on the Exchange were included in certain NYSE rules that govern specific Exchange products or facilities: NYSE MatchPointSM 5 and NYSE BondsSM.6 However, in August, the Exchange submitted a rule change to the SEC to amend NYSE Rule 123B (Exchange Automated Order Routing System) 7 in order to create a general sponsored access rule that permits a Sponsoring Member Organization to sponsor a Sponsored Participant’s access to Exchange systems for the Sponsored Participant’s entry and execution of orders on the Exchange. The proposed amendments to NYSE Rule 123B reflect the Exchange’s general policy regarding sponsored access to the Exchange, though they do not govern NYSE MatchPoint or NYSE Bonds.8 NYSE 3 NYXATS will similarly offer the same services to NYSE Alternext via a separate filing SR– NYSEALTR–2008–12. 4 See also NYSE Rule 2. 5 See NYSE Rule 1500. 6 See NYSE Rule 86. 7 See Securities Exchange Act Release No. 58429 (August 27, 2008), 73 FR 51676 (September 4, 2008) (SR–NYSE–2008–71) (initial filing to create NYSE’s general sponsored access rule); see also, Securities Exchange Act Release No. 58758 (October 8, 2008), 73 FR 62352 (October 20, 2008) ( SR–NYSE–2008– 100) (filing to conform NYSE’s sponsored access rule to current industry standards). 8 That is, currently, the provisions of NYSE Rule 123B do not apply to NYSE Rules 1500 and 86 as those rules independently contain provisions E:\FR\FM\31DEN1.SGM 31DEN1

Agencies

[Federal Register Volume 73, Number 251 (Wednesday, December 31, 2008)]
[Notices]
[Pages 80491-80492]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-31100]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-59143; File No. SR-NYSE-2008-135]


 Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by New York Stock Exchange LLC To 
Extend to March 27, 2009, the Operative Date of New York Stock Exchange 
Rule 2 Requirement That NYSE-Only Member Organizations Apply for and Be 
Approved as a Member of the Financial Industry Regulatory Authority, 
Inc.

December 22, 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 22, 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, 
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 extend to March 27, 2009, the operative 
date of New York Stock Exchange (``NYSE'' or the ``Exchange'') Rule 2 
requirement that NYSE-only member organizations apply for and be 
approved as a member of the Financial Industry Regulatory Authority, 
Inc. (``FINRA'').

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 aspects of such statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange is proposing to extend to March 27, 2009, the grace 
period for NYSE-only member organizations to apply for and be approved 
as a FINRA member, as required by NYSE Rule 2.
    In connection with the consolidation of NASD and NYSE Regulation 
member firm regulation operations into FINRA, which closed on July 30, 
2007, the Exchange amended NYSE Rule 2 to require NYSE member 
organizations to also be FINRA members.\4\ In connection with those 
rule changes, the Commission approved a 60-day grace period within 
which NYSE-only member organizations must apply for and be approved for 
FINRA membership. In that rule filing, NYSE-only member organizations 
were defined as those member organizations that were not NASD members 
as of the date of the closing of the FINRA transaction. This grace 
period began on October 12, 2007, the date of Commission approval of 
the Exchange's rule filing. In furtherance of the consolidation, FINRA 
adopted NASD IM-1013-1 to enable eligible NYSE member organizations to 
become FINRA members though an expedited process (the ``FINRA Waive-in 
application process'').\5\
---------------------------------------------------------------------------

    \4\ See Securities Exchange Act Release No. 34-56654 (Oct. 12, 
2007), 72 FR 59129 (Oct. 18, 2007) (SR-NYSE-2007-67).
    \5\ See Securities Exchange Act Release No. 34-56653 (Oct. 12, 
2007), 72 FR 59127 (Oct. 18, 2007) (SR-NASD-2007-56).
---------------------------------------------------------------------------

    At the close of the 60-day grace period, all but two of the former 
NYSE-only member organizations had applied for and been approved as 
FINRA members. On December 12, 2007, the Exchange filed for an 
extension of the grace period to June 30, 2008 for those two firms.\6\ 
On June 30, 2008, the Exchange filed for another extension of the grace 
period to December 31, 2008.\7\ In that filing, the Exchange noted that 
those two firms had unique member qualification issues and were 
ineligible to participate in the FINRA Waive-in application process. As 
of December 19, 2008, one of those two firms has been approved as a 
FINRA member. With respect to the other firm, because the Exchange is 
working on a rule filing to amend Rule 2 to permit a broker dealer to 
be an NYSE member organization without a FINRA membership, the Exchange 
believes that the grace period should be further extended so that the 
remaining firm does not have to re-apply for Exchange membership if the 
proposed change to Rule 2 is approved. Accordingly, the NYSE proposes 
to extend the grace period to March 27, 2009 for the firm that was an 
NYSE member organization as of July 30, 2007, but not a FINRA member.
---------------------------------------------------------------------------

    \6\ See Securities Exchange Act Release No. 34-56953 (Dec. 12, 
2007), 72 FR 71990 (Dec. 19, 2007) (SR-NYSE-2007-115).
    \7\ See Securities Exchange Act Release No. 34-58096 (July 3, 
2008), 73 FR 39764 (July 10, 2008) (SR-NYSE-2008-54).
---------------------------------------------------------------------------

2. Statutory Basis
    The basis under the Act for this proposed rule change is the 
requirement under Section 6(b)(5) \8\ 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.
---------------------------------------------------------------------------

    \8\ 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

    No written comments were solicited or received with respect to the 
proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The foregoing rule change is being filed for immediate 
effectiveness pursuant to Section 19(b)(3)(A) \9\ of the

[[Page 80492]]

Act and Rule 19b-4(f)(3) \10\ promulgated thereunder. The proposed rule 
change goes solely to the administration of the self-regulatory 
organization in that it is not a substantive change to NYSE Rule 2 and 
simply extends a pre-existing grace period.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 17 CFR 240.19b-4(f)(3).
---------------------------------------------------------------------------

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 (http://
www.sec.gov/rules/sro.shtml); or
     Send an e-mail to rule-comments@sec.gov. Please include 
File Number SR-NYSE-2008-135 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities 
and Exchange Commission, 100 F Street, NE., Washington, DC 20549-1090.

All submissions should refer to File Number SR-NYSE-2008-135. 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 (http://www.sec.gov/rules/
sro.shtml). Copies of the submission, all subsequent amendments, all 
written statements with respect to the proposed rule change that are 
filed with the Commission, and all written communications relating to 
the proposed rule change between the Commission and any person, other 
than those that may be withheld from the public in accordance with the 
provisions of 5 U.S.C. 552, will be available for inspection and 
copying in the Commission's Public Reference Room, on official business 
days between the hours of 10 a.m. and 3 p.m. Copies 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-NYSE-2008-135 and should be submitted on or before 
January 21, 2009.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
---------------------------------------------------------------------------

    \11\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Acting Secretary.
 [FR Doc. E8-31100 Filed 12-30-08; 8:45 am]
BILLING CODE 8011-01-P