[Federal Register: January 16, 2007 (Volume 72, Number 9)]
[
Notices]
[Page 1796-1798]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr16ja07-96]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-55051; File No. SR-NYSEArca-2007-01]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
of a Proposed Rule Change Relating to the Uniform Definition of Complex
Trade
January 5, 2007.
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 January 3,
[[Page 1797]]
2007, NYSE Arca, Inc. (``NYSE Arca'' 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 substantially by the Exchange. The Commission is
publishing this notice to solicit comments on the proposed rule change
from interested persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
NYSE Arca proposes to modify the definition of ``Complex Trade'' in
NYSE Arca Rule 6.92(a)(4). The text of the proposed rule change appears
below, with additions italicized and deletions in [brackets]:
Rules of NYSE Arca, Inc.
Rule 6.92
Definitions
(a) The following terms have the meaning specified in this Rule
solely for the purposes of Rules 6.92-6.95.
(1)-(3) No Change.
(4) ``Complex Trade'' means the execution of an order in an option
series in conjunction with the execution of one or more related
order(s) in different options series in the same underlying security
occurring at or near the same time for the purpose of executing a
particular investment strategy and for an equivalent number of
contracts, provided that the number of contracts of the legs of a
spread, straddle, or combination order may differ by a permissible
ratio [for the equivalent number of contracts and for the purpose of
executing a particular investment strategy]. The permissible ratio for
this purpose is any ratio that is equal to or greater than one-to-three
(.333) and less than or equal to three-to-one (3.00).
(5)-(21) No Change.
* * * * *
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 Exchange 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. The Exchange has substantially 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
NYSE Arca Rule 6.92(a)(4) defines a ``Complex Trade'' as it
pertains to the Options Intermarket Linkage (``Linkage''). Under the
Plan for the Purpose of Creating and Operating an Intermarket Option
Linkage, the term ``Complex Trade'' may be defined, and periodically
redefined, by the Options Linkage Authority Operating Committee (the
``Committee'').
On September 15, 2006, the Committee voted to update the definition
of ``Complex Trade'' in order to include transactions in more than one
options series in any ratio from one-to-three (.333) to three-to-one
(3.00). Accordingly, the participant exchanges agreed to adopt and file
uniform rules defining ``Complex Trade'' in furtherance of the Linkage.
NYSE Arca believes that a uniform definition of Complex Trade will
facilitate the best execution of complex orders and resolve potential
trade-through liability issues by eliminating conflicting definitions
among the participant exchanges.
2. Statutory Basis
The proposed rule change is consistent with Section 6(b) of the
Act,\3\ in general, and furthers the objectives of Section 6(b)(5),\4\
in particular, in that 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.
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\3\ 15 U.S.C. 78f(b).
\4\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition
NYSE Arca 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
NYSE Arca neither solicited nor received written comments with
respect to the proposed rule change.
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 such proposed rule change; or
B. Institute proceedings to determine whether the proposed rule
change should be disapproved.
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 No. SR-NYSEArca-2007-01 on the subject line.
Paper Comments
Send paper comments in triplicate to Nancy M. Morris,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-NYSEArca-2007-01. 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 Commissions 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. Copies of such
filing also will be available for inspection and copying at
[[Page 1798]]
the principal office of the Exchange. All comments received will be
posted without change; the Commission does not edit personal
identifying information from submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-NYSEArca-2007-01 and should be submitted
on or before February 6, 2007.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\5\
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\5\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-405 Filed 1-12-07; 8:45 am]
BILLING CODE 8011-01-P