12650 Federal Register / Vol. 72, No. 51 / Friday, March 16, 2007 / Notices 

617 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3The term ‘‘individual investor’’ is defined to 

parallel the concept of ‘‘natural person’’ contained 

in Section 11(a)(1)(E) of the Act, 15 U.S.C. 

78k(a)(1)(E), including the interpretations made by 

the Commission pursuant to that section. 

4CMS is the central communications hub 

between member organizations and the NYSE. CMS 

receives, validates, and passes orders and 

administrative inquiries from member organizations 

to other NYSE systems, including SuperDOT. In 

addition, CMS sends execution reports, responses 

to administrative inquiries, and status messages 

back to member organizations. 

5The Hybrid Market initiative was proposed in 

SR–NYSE–2004–05 and Amendments No. 1, 2, 3, 5, 

6, 7, and 8 thereto, approved on March 22, 2006. 

See Securities Exchange Act Release No. 53539 

(March 22, 2006), 71 FR 16353 (March 31, 2006). 

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 Nasdaq. 

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–NASDAQ–2007–006 and 

should be submitted on or before April 

6, 2007. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.6

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–4814 Filed 3–15–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55439; File No. SR–NYSE–

2007–16] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Eliminate 

the Individual Investor Express 

Delivery Service 

March 9, 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, the New York Stock Exchange 

LLC (‘‘Exchange’’ or ‘‘NYSE’’) 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. The Commission is 

publishing this notice to solicit 

comment on the proposed rule change 

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 123B, ‘‘Exchange 

Automated Order Routing Systems,’’ by 

eliminating the functionality of the 

Individual Investor Express Delivery 

Service (‘‘IIEDS’’). 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 

NYSE 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 

NYSE 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 

IIEDS is an order processing service 

that, in certain situations, provides 

priority delivery to the specialist’s post 

through SuperDOT for simple roundlot market orders and market GTC 

(‘‘good ’til canceled’’) orders that are for 

an amount up to 2,099 shares and are 

for the account of an individual 

investor 3 as identified by the member 

organization or its customer, if enabled 

by the member organization, entering 

the order. Market orders to buy minus, 

sell plus, sell short, buy or sell stop, as 

well as limit orders are not eligible for 

IIEDS. In addition, a limit order that is 

cancelled and replaced with a market 

order when entered as a single cancel/ 

replacement order is not eligible for 

IIEDS. IIEDS was adopted in the wake 

of the 1987 market correction to enable 

retail-sized orders to avoid being 

negatively impacted by a sudden and 

significant influx of non-retail orders 

such as what generally happens when 

automated program trading benchmarks 

are reached. 

IIEDS provides eligible orders with 

priority systematized delivery, ahead of 

other orders, to the specialist’s post only 

when a queue of orders, which is caused 

by extraordinarily high levels of 

message traffic, exists in the Common 

Message Switch (‘‘CMS’’).4 Where no 

queue exists in CMS, IIEDS-eligible 

orders received by the Exchange are 

routed to the specialist’s post through 

SuperDOT, along with all other orders 

received by CMS, in the normal 

sequence in which they are received. 

Once an IIEDS order reaches the 

specialist’s post, whether it received 

priority delivery or not in arriving there, 

all normal Exchange market procedures, 

including rules related to priority and 

parity, are applied in executing the 

order. 

The NYSE is proposing to eliminate 

the functionality of IIEDS because it is 

no longer necessary due to systems 

capacity upgrades made to CMS that the 

Exchange has implemented over time. 

In addition, IIEDS is infrequently used, 

and orders eligible for the service 

represent a very small percentage of 

order flow received on the Exchange. 

Finally, the service is no longer needed 

in light of the increased speed and 

efficiency of order executions that will 

occur as a result of the NYSE HYBRID 

MARKETSM initiative.5

Due to capacity increases made to 

CMS on an annual basis over the years, 

the Exchange rarely experiences order 

queues, a condition precedent for an 

IIEDS order to be sent to the specialist’s 

post ahead of another order. 

Historically, the Exchange has 

maintained ‘‘message per second’’

system capacity for CMS equaling 

approximately two times the highest 

Floor-wide five-minute average message 

per second rate experienced during the 

year. Thus, for example, during 2005, 

the Exchange experienced a peak fiveminute average message per second rate 

of 6,043, while the actual CMS system 

capacity for year end 2005 was 

increased to handle approximately 

13,000 messages per second. Year-toyear evaluation of actual message per 

second rate coupled with attendant 

proportional increases in CMS capacity 

has enabled the Exchange to experience 

a statistically insignificant number of 

order queues, thereby obviating the 

need for IIEDS. 

The Exchange is also proposing to 

eliminate IIEDS because the service is 

seldom used by its customers; less than 

two-tenths of 1% (approximately .18%) 

of order flow received by the Exchange 

is eligible for IIEDS processing. The 

average number of IIEDS-eligible orders 

is approximately 64,000 orders per day, 

out of approximately 35.36 million 


sroberts on PROD1PC70 with NOTICES
Federal Register / Vol. 72, No. 51 / Friday, March 16, 2007 / Notices 12651 

6 15 U.S.C. 78f(b)(5). 

7 15 U.S.C. 78s(b)(3)(A). 

8 17 CFR 240.19b–4(f)(6). 

9 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

orders received by the Exchange per 

day. 

In addition, the wider availability and 

increased speed of NYSE Direct+

(‘‘Direct+’’), the Exchange’s electronic 

execution facility, which is being 

implemented in connection with the 

Hybrid Market, should prove a 

beneficial substitute to those Exchange 

customers seeking processing for 

individual investor orders similar to 

that obtained through IIEDS. The 

enhancements to Direct+ being 

introduced involve immediate 

execution at the best bid and best offer 

without restrictions on order size or 

frequency to the extent of the displayed 

volume associated with the bid and 

offer. The speed and continued 

operation of electronic executions 

through Direct+ will also eliminate the 

queues that developed during the 

slower, more manual execution process, 

further obviating the need for IIEDS. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the requirement under Section 6(b)(5) 6

of the Act 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 national market system, and, in 

general, to protect investors and the 

public interest. 

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 

The Exchange has filed the proposed 

rule change pursuant to Section 

19(b)(3)(A) of the Act7 and 

subparagraph (f)(6) of Rule 19b–4 

thereunder.8 Because the Exchange has 

designated the foregoing proposed rule 

change as one that: (i) Does not 

significantly affect the protection of 

investors or the public interest; (ii) does 

not impose any significant burden on 

competition; and (iii) does not 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, 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. 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–2007–16 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–2007–16. 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 Commissions 

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–2007–16 and should 

be submitted on or before April 6, 2007. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.9

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–4813 Filed 3–15–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55430; File No. SR–

NYSEArca–2007–24] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing of Proposed 

Rule Change To Waive Certain Listing 

Fees 

March 8, 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 

28, 2007, NYSE Arca, Inc. (‘‘NYSE 

Arca’’ or ‘‘Exchange’’), through its 

wholly owned subsidiary, NYSE Arca 

Equities, Inc., 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. 

The Commission is publishing this 

notice to solicit comment on the 

proposed rule change from interested 

persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to amend its 

listing fees to provide that there shall be 

no initial listing fee applicable to (i) 

Any company listing upon emergence 

from bankruptcy, or (ii) any company 

listing its primary class of common 

stock that is not listed on a national 

securities exchange but is registered 

under the Act. 

The text of the proposed rule change 

is available on the Exchange’s Web site 

(http://www.nysearca.com), at the 

Exchange’s Office of the Secretary, and 


sroberts on PROD1PC70 with NOTICES