[Federal Register: January 17, 2008 (Volume 73, Number 12)]
[Notices]
[Page 3304-3305]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr17ja08-106]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-57136; File No. SR-NYSEArca-2006-82]
Self-Regulatory Organizations; NYSE Arca, Inc.; Order Granting
Approval of Proposed Rule Changes Relating to Amendments to NYSE Arca
Equities Rules 2.16 and 4.5 Relating to Certain ETP Holder
Administrative Procedures
January 11, 2008.
I. Introduction
On November 7, 2006, NYSE Arca, Inc. (``NYSE Arca'' or the
``Exchange''), through its wholly owned subsidiary NYSE Arca Equities,
Inc. (``NYSE Arca Equities'' or the ``Corporation''), filed with the
Securities and Exchange Commission (``Commission'' or ``SEC''),
pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Exchange Act'') \1\ and Rule 19b-4 thereunder,\2\ a proposal to
amend its Rules 2.16 and 4.5 relating to certain ETP Holder
administrative procedures. The proposed rule change was published for
comment in the Federal Register on July 18, 2007.\3\ The Commission
received no comments
[[Page 3305]]
regarding the proposal. This order approves the proposed rule changes.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ See Securities Exchange Act Release No. 56057 (Jul. 12,
2007), 72 FR 39477.
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II. Description of the Proposal
NYSE Arca Equities Rule 2.16 currently provides that all Equity
Trading Permit (``ETP'') Holders \4\ must file their formation
documents with the Corporation. The Exchange proposes to amend NYSE
Arca Equities Rule 2.16 in order to provide that only those ETP Holders
for which the Exchange is the Designated Examining Authority must
submit such formation documents to the Corporation.
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\4\ See NYSE Arca Equities Rule 1.1(n).
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NYSE Arca Equities Rule 4.5(b) currently requires ETP Holders that
carry or clear accounts for customers to file two manually signed
copies of Part II of SEC Form X-17A-5 with the Corporation on a
quarterly basis. The Exchange proposes to amend NYSE Arca Equities Rule
4.5(b) to provide that such reports shall be filed electronically with
the Corporation, rather than manually, and that the ETP Holder shall
maintain original copies of such reports with manual signatures in
accordance with NYSE Arca Equities Rule 2.24.\5\
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\5\ NYSE Arca Equities Rule 2.24 provides that each ETP Holder
must make, keep current and preserve such books and records as the
Exchange may prescribe and as may be prescribed by the Securities
Exchange Act of 1934 (the ``Exchange Act'') and the rules and
regulations thereunder (including any interpretation relating
thereto) as though such ETP Holders were brokers or dealers
registered with the SEC pursuant to Section 15 of the Exchange Act.
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NYSE Arca Equities Rule 4.5(c) currently requires ETP Holders that
do not carry or clear accounts for customers to file two manually
signed copies of Part IIA of SEC Form X-17A-5 with the Corporation on a
quarterly basis. The Exchange proposes to amend NYSE Arca Equities Rule
4.5(c) to provide that such reports shall be filed electronically with
the Corporation, rather than manually, and that the ETP Holder shall
maintain original copies of such reports with manual signatures in
accordance with NYSE Arca Equities Rule 2.24.\6\
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\6\ Id.
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Finally, the Exchange proposes to amend paragraphs (b) and (c) of
NYSE Arca Equities Rule 4.5 to codify procedural changes that have been
implemented by the Exchange and to be consistent with guidance that has
been provided previously to ETP Holders.
III. Discussion
After careful review and based on the Exchange's representations,
the Commission finds that the proposed rule changes are consistent with
the requirements of the Act and the rules and regulations applicable to
a national securities exchange.\7\ In particular, the Commission finds
that the proposed rule changes are consistent with Section 6(b)(5) \8\
which requires, among other things, that the rules of a national
securities exchange be 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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\7\ In approving this proposed rule change, the Commission notes
that it has considered the proposed rule's impact on efficiency,
competition, and capital formation. See 15 U.S.C. 78c(f).
\8\ 15 U.S.C. 78f(b)(5).
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The Commission believes it is reasonable and consistent with the
Act for the Exchange to amend NYSE Arca Equities Rules 2.16 and 4.5(b)
and (c) in order to simplify the administrative procedures that ETP
Holders must follow, given the fact that the Exchange believes that
such amendments will not compromise the Exchange's ability to regulate
its ETP Holders.
IV. Conclusion
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\9\ that the proposed rule change (SR-NYSEArca-2006-82), as
amended, be, and hereby is, approved.
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\9\ 15 U.S.C. 78s(b)(2).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
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\10\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8-737 Filed 1-16-08; 8:45 am]
BILLING CODE 8011-01-P