[Federal Register: March 14, 2005 (Volume 70, Number 48)]
[Notices]
[Page 12525]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr14mr05-117]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-51319; File No. SR-NYSE-2004-61]
Self-Regulatory Organizations; New York Stock Exchange, Inc.;
Order Approving Proposed Rule Change and Amendment Nos. 1 and 2 Thereto
To Rescind a Type of Order Known as an Institutional XPress [reg] Order
Through Amendments to Exchange Rules 13, 60 and 72
March 4, 2005.
On October 28, 2004, the New York Stock Exchange, Inc. (``NYSE'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission''), pursuant to section 19(b)(1) of the Securities
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a
proposed rule change to rescind a type of order known as an
Institutional XPress[reg] Order (``XPress Order'') by amending NYSE
Rules 13 (Definitions of Orders), 60 (Dissemination of Quotation) and
72 (Priority and Precedence of Bids and Offers). On December 3, 2004,
the Exchange filed Amendment No. 1 to the proposed rule change.\3\ The
proposed rule change, as amended by Amendment No. 1, was published for
notice and comment in the Federal Register on December 29, 2004.\4\ The
Commission received no comment letters on the proposal, as amended. On
January 25, 2005, the Exchange filed Amendment No. 2 to the proposed
rule change.\5\ This order approves the proposed rule change, as
amended.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ See Partial Amendment dated December 3, 2004 (``Amendment
No. 1''). In Amendment No. 1, the Exchange changed the basis under
which the proposed rule change was filed from Section 19(b)(3)(A) of
the Act to Section 19(b)(2) of the Act.
\4\ See Securities Exchange Act Release No. 50912 (December 22,
2004), 69 FR 78084.
\5\ See Partial Amendment dated January 25, 2005 (``Amendment
No. 2''). In Amendment No. 2, the Exchange made minor, technical
corrections to the proposed rule text. Accordingly, this Amendment
is not subject to notice and comment.
---------------------------------------------------------------------------
The Commission finds that the proposed rule change, as amended, is
consistent with the requirements of the Act and the rules and
regulations thereunder applicable to a national securities exchange,\6\
and, in particular, the requirements of section 6 of the Act \7\ and
the rules and regulations thereunder. The Commission finds specifically
that the proposed rule change, as amended, is consistent with section
6(b)(5) of the Act \8\ 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.
---------------------------------------------------------------------------
\6\ In approving this proposed rule change, the Commission has
considered the proposed rule's impact on efficiency, competition,
and capital formation. 15 U.S.C. 78c(f).
\7\ 15 U.S.C. 78f.
\8\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
According to the Exchange, the XPress Order has not been widely
used \9\ and if the Hybrid Market initiative \10\ is approved and
implemented, the need for XPress Orders will be further diminished.
Therefore, the Commission believes that it is consistent with the Act
to eliminate this type of order.
---------------------------------------------------------------------------
\9\ Telephone conversation between Cyndi N. Rodriguez, Special
Counsel, Division of Market Regulation, Commission, and Jeffrey S.
Rosenstrock, Special Counsel, Market Surveillance, NYSE, on March 1,
2005. The NYSE also represented that the proposed rule change would
be implemented on or about April 1, 2005. Id.
\10\ See Securities Exchange Act Release Nos. 50173 (August 10,
2004), 69 FR 50407 (August 16, 2004) and 50667 (November 15, 2004),
69 FR 67980 (November 22, 2004) (SR-NYSE-2004-05).
---------------------------------------------------------------------------
It is therefore ordered, pursuant to section 19(b)(2) of the
Act,\11\ that the proposed rule change (SR-NYSE-2004-61), as amended,
be, and hereby is, approved.
---------------------------------------------------------------------------
\11\ 15 U.S.C. 78s(b)(2).
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\12\
---------------------------------------------------------------------------
\12\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5-1057 Filed 3-11-05; 8:45 am]
BILLING CODE 8010-01-P