[Federal Register: October 3, 2007 (Volume 72, Number 191)]
[Notices]
[Page 56421-56422]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr03oc07-114]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-56556; File No. SR-NYSE-2007-86]
Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change
To Extend the Moratorium on the Qualification and Registration of New
Registered Competitive Market Makers and New Competitive Traders,
Governed by Rules 107A and 110, Respectively, for an Additional Three
Months
September 27, 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 September 27, 2007, 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 and
II below, which Items have been substantially prepared 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
The NYSE proposes to extend for three months the moratorium related
to the qualification and registration of Registered Competitive Market
Makers (``RCMMs'') pursuant to Exchange Rule 107A and Competitive
Traders (``CTs'') pursuant to Exchange Rule 110. The text of the
proposed rule change is available on the NYSE's Web site (http://www.nyse.com
), at the NYSE, 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 Exchange included statements
concerning the purpose of, and basis for, the proposed rule change. The
text of these 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 proposes to extend for three months the current
moratorium related to the qualification and registration of RCMMs
pursuant to Exchange Rule 107A and CTs pursuant to Exchange Rule 110.
On September 22, 2005, the Exchange filed SR-NYSE-2005-63 \3\ with
the Commission proposing to implement a moratorium on the qualification
and registration of new RCMMs and CTs (``Moratorium''). The purpose of
the Moratorium was to allow the Exchange an opportunity to review the
viability of RCMMs and CTs in the NYSE HYBRID MARKETSM
(``Hybrid Market'').\4\
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\3\ See Securities Exchange Act Release No. 52648 (October 21,
2005), 70 FR 62155 (October 28, 2005) (SR-NYSE-2005-63).
\4\ See Securities Exchange Act Release No. 53539 (March 22,
2006), 71 FR 16353 (March 31, 2006) (SR-NYSE-2004-05) (establishing
the Hybrid Market).
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The phased-in implementation of the Hybrid Market required the
Exchange to extend the Moratorium an additional three times over the
next fifteen (15) months.\5\ During each phase of the Hybrid Market,
new system functionality was included in the operation of Exchange
systems and new data was generated. As a result, the Exchange was
unable to make an informed decision as to the viability of RCMMs and
CTs in the Hybrid Market.
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\5\ See Securities Exchange Act Release Nos. 54140 (July 13,
2006), 71 FR 41491 (July 21, 2006) (SR-NYSE-2006-48); 54985
(December 21, 2006), 72 FR 171 (January 3, 2007) (SR-NYSE-2006-113);
and 55992 (June 29, 2007), 72 FR 37289 (July 9, 2007) (SR-NYSE-2007-
57).
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The Exchange continued to review the data related to RCMMs and CTs
generated during the phasing-in of the Hybrid Market. Based on its
review, the Exchange believes that it now has the requisite data to
decide what roles, if any, RCMMs and CTs should perform in the current
Hybrid Market.
The Exchange now proposes to extend the Moratorium, as amended,\6\
for an additional three months to December 31, 2007 in order to
finalize its determination as to the roles of RCMMs and CTs in the
Exchange's Hybrid Market and to formally submit a proposal to the
Commission outlining these roles.
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\6\ See Securities Exchange Act Release No.53549 (2006), 71 FR
16388 (March 31, 2006) (SR-NYSE-2006-11) (making certain amendments
to the Moratorium).
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The Exchange will issue an Information Memo announcing the
extension of the Moratorium.
2. Statutory Basis
The basis under the Act \7\ 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.
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\7\ 15 U.S.C. 78a.
\8\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
The Exchange has neither solicited nor received written comments on
the proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the proposed rule change: (i) Does not significantly affect
the protection of investors or the public interest; (ii) does not
impose any
[[Page 56422]]
significant burden on competition; and (iii) does not become operative
for 30 days after the date of the 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 \9\ and Rule 19b-4(f)(6)
thereunder.\10\
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\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 17 CFR 240.19b-4(f)(6). Pursuant to Rule 19b-4(f)(6)(iii)
under the Act, the Exchange is required to give the Commission
written notice of its intent to file the proposed rule change, along
with a brief description and text of the proposed rule change, at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied the five-day pre-filing requirement.
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A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the
Act \11\ normally does not become operative for 30 days after the date
of its filing. However, Rule 19b-4(f)(6)(iii)\12\ permits the
Commission to designate a shorter time if such action is consistent
with the protection of investors and the public interest. The NYSE has
requested that the Commission waive the 30-day operative delay. The
Commission believes that waiving the 30-day operative delay is
consistent with the protection of investors and the public interest
because it would allow the moratorium to continue without interruption
so that the Exchange may have additional time to make a final
determination as to the future roles of RCMMs and CTs in the Hybrid
Market, if any, and to file with the Commission a proposed rule change
outlining such roles. For these reasons, the Commission designates that
the proposed rule change become operative immediately.\13\
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\11\ 17 CFR 240.19b-4(f)(6).
\12\ 17 CFR 240.19b-4(f)(6)(iii).
\13\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. 15 U.S.C. 78c(f).
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At any time within 60 days of the filing of the proposed rule
change, the Commission may summarily abrogate the rule change if it
appears to the Commission that such action is necessary or appropriate
in the public interest, for the protection of investors, or otherwise
in furtherance of the purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml.
); or Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-NYSE-2007-86 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-NYSE-2007-86. 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
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-
NYSE-2007-86 and should be submitted on or before October 24, 2007.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\14\
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\14\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-19537 Filed 10-2-07; 8:45 am]
BILLING CODE 8011-01-P