Federal Register / Vol. 72, No. 38 / Tuesday, February 27, 2007 / Notices 8825 

10The Exchange provided written notice to the 

Commission 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 filing, as required by Rule 19b–4(f)(6)(iii). 

11 17 CFR 240.19b–4(f)(6)(iii). 

12For purposes only of waiving the operative 

delay of this proposal, 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). 

13See supra note 5. 14 17 CFR 200.30–3(a)(12). 

1 15 U.S.C.78s(b)(1). 

2 17 CFR 240.19b–4. 

3 15 U.S.C. 78s(b)(3)(A). 

4 17 CFR 240.19b–4(f)(6). 

which it was filed, 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 and Rule 19b–4(f)(6)(iii) 

thereunder.10

The Exchange requests that the 

Commission waive the 30-day operative 

delay specified in Rule 19b–4(f)(6)(iii).11

The Exchange believes that the 

proposed amendment does not affect 

investors as it simply waives a fee that 

is applicable to companies listing on the 

Exchange. Moreover, Nasdaq has 

already instituted such a waiver and the 

Exchange is at a competitive 

disadvantage as long as Nasdaq can list 

transferring companies without the 

payment of original listing fees and the 

Exchange cannot. Therefore, the 

Exchange believes that waiving the 30- 

day operative delay is consistent with 

the protection of investors and the 

public interest. 

The Commission has determined to 

waive the 30-day delay and allow the 

proposed rule change to become 

operative immediately.12 The 

Commission believes that waiving the 

30-day operative delay is consistent 

with the protection of investors and the 

public interest. The proposed rule is 

substantially similar to provisions in 

Nasdaq’s Rules 4510(a) and 4520(a), 

which were previously approved by the 

Commission.13

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. 

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 rulecomments@sec.gov. Please include File 

No. SR–NYSE–2007–17 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–2007–17. 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. Copies of such 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–2007–17 and should 

be submitted on or before March 20, 

2007. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.14

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–3287 Filed 2–26–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55316; File No. SR–NYSE–

2007–14] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change and 

Amendment No. 1 Thereto Relating to 

Rule 70 (Bids and Offers) 

February 20, 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 February 

7, 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 selfregulatory organization. On February 16, 

2007, the Exchange filed Amendment 

No. 1 to the proposed rule change. 

NYSE filed the proposed rule change 

pursuant to Section 19(b)(3) of the Act 3

and Rule 19b–4(f)(6) thereunder,4 which 

renders the proposed rule change 

effective upon filing with the 

Commission. The Commission is 

publishing this notice to solicit 

comments on the proposed rule change, 

as amended, from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange is proposing to amend 

Exchange Rule 70.30 which sets forth 

the definition of Crowd. The text of the 

proposed rule change is available on the 

Exchange’s Web site (http:// 

www.nyse.com), at the Exchange’s 

Office of the Secretary, 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 

self-regulatory organization 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 self-regulatory 

organization has prepared summaries, 

set forth in sections A, B, and C below, 

of the most significant aspects of such 

statements. 


cprice-sewell on PROD1PC62 with NOTICES
8826 Federal Register / Vol. 72, No. 38 / Tuesday, February 27, 2007 / Notices 

5See Securities Exchange Act Release No. 54427 

(September 12, 2006), 71 FR 54862 (September 19, 

2006) (SR–NYSE–2006–58). 

6NYSE Announces Floor Consolidation Plan, 

NYSE Group Newsletter, October 31, 2006, 

available at http://www.nyse.com/about/ 

publication/1164799108193.html. 

7 15 U.S.C. 78f(b). 

8 15 U.S.C. 78f(b)(5). 

9 15 U.S.C. 78s(b)(3)(A). 

10 17 CFR 240.19b–4(f)(6). 

11 17 CFR 240.19b–4(f)(6)(iii). 

12For purposes only of waiving the operative 

delay for this proposal, the Commission has 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

15 U.S.C. 78c(f). 

13For purposes of calculating the 60-day period 

within which the Commission may summarily 

abrogate the proposed rule change under Section 

19(b)(3)(C) of the Act, 15 U.S.C. 78s(b)(3)(C), the 

Commission considers the period to commence on 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange’s Hybrid Market SM

(‘‘Hybrid Market’’) integrates the auction 

market with automated trading. 

Essential to the auction market is the 

interaction among members on the Floor 

and between Floor brokers and orders in 

the Display Book  System that creates 

opportunities for price improvement, 

provides information about changing 

market conditions and serves as a 

catalyst to trading. Exchange Rule 

70.30 5 defines a Crowd as ‘‘ * * * the 

specific identifiable areas on the Floor 

where Floor brokers generally are able 

to see and hear the business conducted 

at each post/panel within the Crowd.’’

Each designated area served to delineate 

the boundaries of the Crowd. In order to 

identify the specific boundaries of the 

Crowd, the Exchange divided each 

trading room of the Floor into specific 

areas which were identified on the Floor 

by colored tiles. 

Exchange Rule 70.30 further requires 

that Floor brokers be in the Crowd in 

order to represent orders that the Floor 

broker has in his or her agency interest 

files (i.e., in order to ‘‘e-Quote’’). 

Pursuant to Rule 70.30 a Floor broker 

may only have agency interest files or eQuote in one Crowd at a time. 

As the Exchange continues its 

implementation of the Hybrid Market, it 

has gained experience operating in the 

Hybrid Market environment. Based on 

this experience, the Exchange seeks to 

amend the definition of Crowd in order 

to better facilitate the critical interaction 

among members on the Floor. 

In practice, the current definition of 

the Crowd proved difficult and 

confusing. Individuals that were unable 

to easily discern Crowd boundaries and 

those with color blindness must rely on 

charts that list the post/panels that are 

designated areas that make up the 

specified Crowd, adding a level of 

inefficiency to their ability to trade. 

In addition, as announced on October 

31, 2006,6 the Exchange is in the 

process of consolidating its trading 

operations from five rooms to four over 

an 18-month period. The trading floor 

consolidation plan calls for the closing 

of the trading room that currently 

occupies 30 Broad Street and the 

relocation of the specialist firm and the 

33 floor brokerage firms from that 

facility to the Exchange’s other trading 

rooms. 

Given the practical difficulties with 

the current definition of a Crowd and 

the current consolidation of the Floor, 

the Exchange proposes to amend the 

definition of the Crowd in order to 

reflect more accurately the areas which 

most efficiently facilitate the beneficial 

interaction among the members on the 

Floor. The Exchange believes that this is 

best reflected in defining the Crowd as 

encompassing the trading Floor in each 

remaining trading room. 

The Exchange will divide the Floor 

into three trading zones. Each trading 

zone will represent a specific 

identifiable Crowd. As a result, the 

current Main Room and Garage will 

each constitute two separate Crowds. 

The third Crowd will include the 

current Blue Room and Extended Blue 

Room. 

As is the case today, once in a Crowd, 

a Floor broker is able to e-Quote in all 

securities located in that Crowd. If the 

Floor broker leaves one Crowd in order 

to work in another, the Floor broker is 

required to withdraw his or her agency 

interest from the Crowd he or she is 

leaving. However, a Floor Broker may 

obtain ‘‘market looks’’ in a securities 

located in other Crowds without 

canceling his or her e-Quotes. The 

Exchange intends that the proposed rule 

change will be operative on February 

20, 2007. 

2. Statutory Basis 

The proposed rule change is 

consistent with Section 6(b) of the Act,7

in general, and furthers the objectives of 

Section 6(b)(5) of the Act 8 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. 

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 foregoing proposed rule 

change does not: (i) Significantly affect 

the protection of investors or the public 

interest; (ii) impose any significant 

burden on competition; and (iii) by its 

terms, become operative for 30 days 

from the date on which it was filed, or 

such shorter time as the Commission 

may designate if consistent with the 

protection of investors and the public 

interest, it has become effective 

pursuant to Section 19(b)(3)(A) of the 

Act 9 and Rule 19b–4(f)(6) thereunder.10

A proposed rule change filed under 

Rule 19b–4(f)(6) normally may not 

become operative prior to 30 days after 

the date of filing. However, Rule 19b–

4(f)(6)(iii)11 permits the Commission to 

designate a shorter time if such action 

is consistent with the protection of 

investors and the public interest. The 

Exchange has requested that the 

Commission waive the five-day prefiling notice requirement and the 30-day 

operative delay. The Commission 

believes that waiver of the five-day prefiling notice requirement and the 30-day 

operative delay is consistent with the 

protection of investors and the public 

interest. Specifically, the Commission 

believes that the proposal could more 

accurately reflect the areas which most 

efficiently facilitate the beneficial 

interaction among the Floor brokers and 

allow the exchange to implement the 

proposal immediately.12

At any time within 60 days of the 

filing of the proposed rule change, the 

Commission may summarily abrogate 

such proposed 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.13


cprice-sewell on PROD1PC62 with NOTICES
Federal Register / Vol. 72, No. 38 / Tuesday, February 27, 2007 / Notices 8827 

February 16, 2007, the date NYSE filed Amendment 

No. 1 to the proposed rule change. 

14 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3 15 U.S.C. 78s(b)(3)(A)(iii). 

4 17 CFR 240.19b–4(f)(6). 

5See Securities Exchange Act Release No. 51576 

(April 19, 2005), 70 FR 21488 (April 26, 2005). 

6See Securities Exchange Act Release No. 53315 

(February 15, 2006), 71 FR 9406 (February 23, 

2006). 

7See Securities Exchange Act Release No. 54238 

(July 28, 2006), 71 FR 44758 (August 7, 2006) (SR–

NYSEArca-2006–13) (approval of OX trading rules). 

See also telephone conversation between Glenn 

Gsell, Director, NYSE Arca, Ira Brandriss, Special 

Counsel, Division of Market Regulation 

(‘‘Division’’), Commission, and Jennifer Dodd, 

Special Counsel, Division, Commission, on 

February 15, 2007. 

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 rulecomments@sec.gov. Please include File 

Number SR–NYSE–2007–14 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–2007–14. 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. Copies of such 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–2007–14 and should 

be submitted on or before March 20, 

2007. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.14

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–3289 Filed 2–26–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55312; File No. SR–

NYSEArca-2007–16] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Relating to the SizeQuote Pilot Program 

February 16, 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 February 

14, 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 and II 

below, which Items substantially have 

been prepared substantially by NYSE 

Arca. NYSE Arca has designated the 

proposed rule change as one 

constituting a non-controversial rule 

change under Section 19(b)(3)(A)(iii) of 

the Act 3 and Rule 19b–4(f)(6) 

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. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

NYSE Arca, Inc. is proposing to 

amend its rules in order to restore 

certain rule text to Rule 6.47 regarding 

the Size Quote Pilot Program (‘‘Pilot 

Program’’) and to extend the Pilot 

Program, for a one-year period ending 

February 15, 2008. The text of the 

proposed rule change is available at 

(http://www.nyse.com), NYSE Arca, and 

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, 

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. NYSE 

Arca 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 purpose of this proposal is to 

restore rule text that was inadvertently 

deleted from NYSEArca Rule 6.47(f) and 

to extend, for a one year period, the 

Exchange’s Size Quote Pilot Program. 

The Pilot Program was initially 

established when the Exchange filed 

SR–PCX–2005–35.5 The Pilot Program 

was extended when the Exchange filed 

PCX–06–09,6 and was set to expire on 

February 15, 2007. 

The rule text relating to the SizeQuote Pilot Program was mistakenly 

deleted from the Rules of NYSE Arca 

when the Exchange proposed, and 

subsequently received approval for SR–

NYSEArca 2006–13.7 Due to an 

oversight on behalf of Exchange staff, 

certain sections of established rule text, 

that the Exchange intended to keep in 

the Rules, were inadvertently deleted by 

the filing. The Exchange now proposes 

to restore the rule text covering the Pilot 

Program. 

The Exchange has represented that at 

the completion of the Pilot Program, 

NYSE Arca would provide to the 

Commission a report summarizing the 

effectiveness of the Size Quote program. 

While the Exchange believes that the 

Size Quote Mechanism can be an 

effective tool for Floor Brokers to use 

while executing large size orders in 


cprice-sewell on PROD1PC62 with NOTICES