[Federal Register: April 1, 2008 (Volume 73, Number 63)]
[Notices]
[Page 17392-17393]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr01ap08-89]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-57559; File No. SR-NYSEArca-2008-34]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change Relating to the
Implementation of Phase Two of the Options Penny Pilot
March 26, 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 March 25, 2008, 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 substantially prepared by the Exchange. NYSE Arca has
designated this proposal as one constituting a stated policy, practice,
or interpretation with respect to the meaning, administration, or
enforcement of an existing rule under section 19(b)(3)(A)(i) of the Act
\3\ and Rule 19b-4(f)(1) thereunder,\4\ which renders the proposal
effective upon filing with the Commission. 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.
\3\ 15 U.S.C. 78s(b)(3)(A)(i).
\4\ 17 CFR 240.19b-4(f)(1).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
NYSE Arca is proposing to implement the next phase of the Penny
Pilot in options classes (``Pilot Program''), by identifying the
additional issues to be added to the Pilot Program. The text of the
proposed rule change is available on the Exchange's Web site (http://
www.nysearca.com), at NYSE Arca's principal office, and at the
Commission's Public Reference Room.\5\
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\5\ Exhibit 3 to the filing contains a Regulatory Bulletin that
constitutes the text of the proposed rule change.
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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 Arca 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 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
On September 27, 2007, the Commission approved the Exchange's
proposal to (i) extend the Pilot Program through March 27, 2009, and
(ii) expand the Pilot Program to include an additional twenty-eight
underlying
[[Page 17393]]
issues on March 28, 2008 (``Phase II'').\6\ The Exchange hereby
proposes to implement Phase II of the Pilot Program on March 28, 2008,
by adding twenty-eight additional issues, bringing the total number of
issues included in the Pilot Program to sixty-three. These twenty-eight
new options classes are among the most actively traded, multiply-listed
options classes. A Regulatory Bulletin, attached to the proposed rule
change as Exhibit 3 and disseminated to NYSE Arca's members, identifies
these additional twenty-eight underlying securities. Pursuant to NYSE
Arca Rule 6.72, this Regulatory Bulletin will also be published by the
Exchange on its Web site. The thirty-five classes currently in the
Pilot Program will continue to be quoted as they are today.
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\6\ See Securities Exchange Act Release No. 56568 (September 27,
2007), 72 FR 56422 (October 3, 2007) (SR-NYSEArca-2007-88).
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2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
and furthers the objectives of Section 6(b)(5) of the Act,\7\ in that
it is 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. 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
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 proposed rule change has become effective pursuant to section
19(b)(3)(A)(i) of the Act\8\ and Rule 19b-4(f)(1) thereunder,\9\
because it constitutes a stated policy, practice, or interpretation
with respect to the meaning, administration, or enforcement of an
existing rule of the Exchange.
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\8\ 15 U.S.C. 78s(b)(3)(A)(i).
\9\ 17 CFR 240.19b-4(f)(1).
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At any time within 60 days of the filing of the 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.\10\
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\10\ See 15 U.S.C. 78s(b)(3)(C).
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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-NYSEArca-2008-34 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-2008-34. 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, 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 NYSE Arca. 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-2008-34 and should
be submitted on or before April 22, 2008.
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\11\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8-6656 Filed 3-31-08; 8:45 am]
BILLING CODE 8011-01-P