46114 Federal Register / Vol. 73, No. 153 / Thursday, August 7, 2008 / Notices 

7 15 U.S.C. 78f(b)(5). 

8 15 U.S.C. 78s(b)(3)(A). 

9 17 CFR 240.19b–4(f)(6). 

10 In addition, Rule 19b–4(f)(6)(iii) under the Act 

requires a self-regulatory organization to give the 

Commission written notice of its intent to file the 

proposed rule change at least five business days 

prior to the date of filing of the proposed rule 

change or such shorter time as designated by the 

Commission. ISE has complied with this 

requirement. 

11 Id. 

12See Securities Exchange Act Release No. 57916 

(June 4, 2008), 73 FR 33125 (June 11, 2008) (Order, 

and Amendment No. 1 Thereto, to Amend Rule 

903C to Permit the Listing and Trading of 

Additional Index Options Series) (SR–AMEX–

2008–14). 

13See supra note 12. 

14For purposes only of waiving the 30-day 

operative delay of this proposal, the Commission 

has considered the proposed rule’s impact on 

efficiency, competition, and capital formation. 15 

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

15 17 CFR 200.30–3(a)(12). 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

believes the proposed rule change is 

consistent with the requirement of 

Section 6(b)(5) of the Act 7 that an 

exchange have rules that are designed to 

prevent fraudulent and manipulative 

acts and practices, to promote just and 

equitable principles of trade, and, in 

general, to protect investors and the 

public interest. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

ISE 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 not solicited, and 

does not intend to solicit, comments on 

this proposed rule change. The 

Exchange has not received any 

unsolicited written comments from 

members or other interested parties. 

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) become 

operative for 30 days from the date on 

which it was filed, or such shorter time 

as the Commission may designate, it has 

become effective pursuant to Section 

19(b)(3)(A) of the Act 8 and Rule 19b–

4(f)(6) thereunder.9

A proposed rule change filed under 

Rule 19b–4(f)(6) under the Act normally 

may not become operative prior to 30 

days after the date of filing.10 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 30-day 

operative delay. The Exchange asserts 

that this is appropriate and necessary in 

order to remain competitive and provide 

customers with the full offering of index 

option products. Additionally, this 

proposed rule change is based on an 

American Stock Exchange rule change 

previously approved by the 

Commission.12 The Commission 

believes that waiving the 30-day 

operative delay is consistent with the 

protection of investors and the public 

interest. The Commission notes that 

another self-regulatory organization 

recently adopted a substantially similar 

rule change and that this filing raising 

no new regulatory issues.13 The 

Commission hereby grants the 

Exchange’s request and designates the 

proposal as operative upon filing.14

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–ISE–2008–59 on the subject 

line. 

Paper Comments 

• Send paper comments in triplicate 

to Secretary, Securities and Exchange 

Commission, Station Place, 100 F Street, 

NE., Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–ISE–2008–59. 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, on official business days between 

the hours of 10 a.m. and 3 p.m. Copies 

of such filing also will be available for 

inspection and copying at the principal 

office of ISE. 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–ISE–

2008–59 and should be submitted on or 

before August 28, 2008. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.15

Florence E. Harmon, 

Acting Secretary. 

[FR Doc. E8–18072 Filed 8–6–08; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–58269; File No. SR–NYSE–

2008–65] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change Relating to 

Amendments to the Portfolio Margin 

Program 

July 30, 2008. 

Pursuant to Section 19(b)(1) 1 of the 

Securities Exchange Act of 1934 (the 

‘‘Act’’) 2 and Rule 19b–4 thereunder,3

notice is hereby given that, on July 29, 

2008, New York Stock Exchange LLC 

(‘‘NYSE’’ or the ‘‘Exchange’’) filed with 

the Securities and Exchange 

Commission (the ‘‘Commission’’) the 

proposed rule change as described in 

Items I, II, and III below, which Items 

have been substantially prepared by the 

self-regulatory organization. The 

Commission is publishing this notice to 


sroberts on PROD1PC70 with NOTICES
Federal Register / Vol. 73, No. 153 / Thursday, August 7, 2008 / Notices 46115 

4Pursuant to Rule 17d–2 under the Securities 

Exchange Act of 1934 (the ‘‘Act’’), NYSE, NYSE 

Regulation, and NASD entered into an agreement 

(the ‘‘Agreement’’) to reduce regulatory duplication 

for firms that are members of FINRA and also 

members of NYSE on or after July 30, 2007 (‘‘Dual 

Members’’), by allocating to FINRA certain 

regulatory responsibilities for selected NYSE rules. 

The Agreement includes a list of all of those rules 

(‘‘Common Rules’’) for which FINRA has assumed 

regulatory responsibilities. See Exchange Act 

Release No. 56148 (July 26, 2007), 72 FR 42146 

(August 1, 2007) (Notice of Filing and Order 

Approving and Declaring Effective a Plan for the 

Allocation of Regulatory Responsibilities). The 

Common Rules are the same NYSE rules that 

FINRA has incorporated into its rulebook. See 

Exchange Act Release No. 56417 (July 26, 2007), 72 

FR 42166 (August 1, 2007) (SR–NASD–2007–054) 

(Notice of Filing and Order Granting Accelerated 

Approval of Proposed Rule Change to Incorporate 

Certain NYSE Rules Relating to Member Firm 

Conduct). Paragraph 2(b) of the 17d–2 Agreement 

sets forth procedures regarding proposed changes 

by either NYSE or FINRA to the substance of any 

of the Common Rules. 

5See SR–FINRA–2008–042, filed July 25, 2008. 

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

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

8 17 CFR 240.19b–4(f)(6). 

9 17 CFR 240.19b–4(f)(6)(iii). In addition, Rule 

19b–4(f)(6)(iii) requires the Exchange to give the 

Commission written notice of the Exchange’s 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 the date of filing 

of the proposed rule change, or such shorter time 

as designated by the Commission. The Exchange 

has requested, and the Commission has agreed, to 

waive this pre-filing requirement. 

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). 

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 

The Exchange proposes to amend 

NYSE Rule 431 (‘‘Margin 

Requirements’’) to codify interpretations 

of the portfolio margin program set forth 

in NYSE Rule 431(g) regarding (1) 

monitoring concentrated equity 

positions and (2) timing of day trading 

margin calls. 

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 

and discussed any comments it received 

on the proposed rule change. The text 

of those 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 parts of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

On July 30, 2007, NASD and NYSE 

Regulation, Inc. (‘‘NYSE Regulation’’) 

consolidated their member firm 

regulation operations into a combined 

organization, FINRA.4 Pursuant to 

FINRA’s new regulatory responsibilities, 

FINRA amended its version of NYSE 

Rule 431 to codify the portfolio margin 

program 5 set forth in NYSE Rule 431(g) 

regarding (1) monitoring concentrated 

equity positions and (2) timing of day 

trading margin calls. The NYSE is 

proposing to amend NYSE Rule 431 to 

conform to the recently filed change to 

FINRA’s incorporated version of NYSE 

Rule 431. 

The implementation date of the 

proposed rule change is August 1, 2008, 

which is the implementation date of 

FINRA’s identical amendments to its 

version of NYSE Rule 431. 

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,6 in that it is designed to 

prevent fraudulent and manipulative 

practices, to promote just and equitable 

principles of trade, to remove 

impediments to, and perfect the 

mechanisms of, a free and open market 

and a 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 

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 Exchange has filed the proposed 

rule change pursuant to Section 

19(b)(3)(A)(iii) of the Act 7 and Rule 

19b–4(f)(6) thereunder.8 Because the 

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) become operative 

prior to 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.9

A proposed rule change filed under 

Rule 19b–4(f)(6) 10 normally does not 

become operative prior to 30 days after 

the date of the filing. However, pursuant 

to Rule 19b–4(f)(6)(iii),11 the 

Commission may designate a shorter 

time if such action is consistent with the 

protection of investors and the public 

interest. The Exchange has asked the 

Commission to waive the 30-day 

operative delay so that the proposal may 

become operative immediately upon 

filing. The Exchange believes the waiver 

of this period will allow it to 

immediately conform NYSE Rule 431 to 

FINRA’s proposed amendments to its 

version of NYSE Rule 431, in 

furtherance of the consolidation of the 

member firm regulation functions of 

NYSE Regulation and NASD. As 

provided in paragraph 2(b) of the 

Agreement, FINRA and NYSE will, 

absent a disagreement about the 

substance of a proposed rule change to 

one of the Common Rules, promptly 

propose conforming changes to ensure 

that such rules continue to be Common 

Rules under the Agreement. The 

Commission believes that waiving the 

30-day operative delay is consistent 

with the protection of investors and the 

public interest because such waiver will 

allow the amendments to the portfolio 

margining rules to coincide with 

FINRA’s amendments to the rules.12

Accordingly, the Commission 

designates the proposed rule change 

effective upon filing with the 

Commission. 

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. 


sroberts on PROD1PC70 with NOTICES
46116 Federal Register / Vol. 73, No. 153 / Thursday, August 7, 2008 / Notices 

13 17 CFR 200.30–3(a)(12). 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4Pursuant to Rule 17d–2 under the Securities 

Exchange Act of 1934 (the ‘‘Act’’), NYSE, NYSE 

Regulation, and NASD entered into an agreement 

(the ‘‘Agreement’’) to reduce regulatory duplication 

for firms that are members of FINRA and also 

members of NYSE on or after July 30, 2007 (‘‘Dual 

Members’’), by allocating to FINRA certain 

regulatory responsibilities for selected NYSE rules. 

The Agreement includes a list of all of those rules 

(‘‘Common Rules’’) for which FINRA has assumed 

regulatory responsibilities. See Exchange Act 

Release No. 56148 (July 26, 2007), 72 FR 42146 

(August 1, 2007) (Notice of Filing and Order 

Approving and Declaring Effective a Plan for the 

Allocation of Regulatory Responsibilities). The 

Common Rules are the same NYSE rules that 

FINRA has incorporated into its rulebook. See 

Exchange Act Release No. 56417 (July 26, 2007), 72 

FR 42166 (August 1, 2007) (SR–NASD–2007–054) 

(Notice of Filing and Order Granting Accelerated 

Approval of Proposed Rule Change to Incorporate 

Certain NYSE Rules Relating to Member Firm 

Conduct). Paragraph 2(b) of the 17d–2 Agreement 

sets forth procedures regarding proposed changes 

by either NYSE or FINRA to the substance of any 

of the Common Rules. 

5See SR–FINRA–2008–041, filed July 25, 2008. 

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

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–2008–65 on the 

subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Secretary, Securities and Exchange 

Commission, 100 F Street, NE., 

Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–NYSE–2008–65. 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 

Section, 100 F Street, NE., Washington, 

DC 20549–1090 on official business 

days between the hours of 10 a.m. and 

3 p.m. Copies of the filing will also be 

available for inspection and copying at 

the NYSE’s principal office and on its 

Internet Web site at http:// 

www.nyse.com. 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–

2008–65 and should be submitted on or 

before August 28, 2008. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Florence E. Harmon, 

Acting Secretary. 

[FR Doc. E8–18071 Filed 8–6–08; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–58261; File No. SR–NYSE–

2008–66] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change Amending 

NYSE Rule 431 To Make Permanent the 

Portfolio Margin Pilot Program 

July 30, 2008. 

Pursuant to Section 19(b)(1) 1 of the 

Securities Exchange Act of 1934 (the 

‘‘Act’’) 2 and Rule 19b–4 thereunder,3

notice is hereby given that, on July 29, 

2008, New York Stock Exchange LLC 

(‘‘NYSE’’ or the ‘‘Exchange’’) filed with 

the Securities and Exchange 

Commission (the ‘‘Commission’’) the 

proposed rule change as described in 

Items I and II below, which Items have 

been substantially prepared by the selfregulatory organization. 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 

The Exchange proposes to amend 

NYSE Rule 431 (‘‘Margin 

Requirements’’) to make permanent the 

portfolio margin pilot program set forth 

in NYSE Rule 431(g), which permits 

members to margin certain products 

according to a prescribed portfolio 

margin methodology. The proposed rule 

change conforms NYSE Rule 431 to 

proposed amendments filed by the 

Financial Industry Regulatory 

Authority, Inc. (‘‘FINRA’’) to its version 

of NYSE Rule 431. 

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 

and discussed any comments it received 

on the proposed rule change. The text 

of those 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 parts of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

On July 30, 2007, NASD and NYSE 

Regulation, Inc. (‘‘NYSE Regulation’’) 

consolidated their member firm 

regulation operations into a combined 

organization, FINRA.4 Pursuant to 

FINRA’s new regulatory responsibilities, 

FINRA amended its version of NYSE 

Rule 431(g) to make permanent a 

portfolio margin pilot program that 

permits member firms to elect to margin 

certain products according to a 

prescribed portfolio margin 

methodology and is set to expire on July 

31, 2008.5 The NYSE is proposing to 

amend NYSE Rule 431 to conform to the 

recently filed change to FINRA’s 

incorporated version of NYSE Rule 431. 

The implementation date of the 

proposed rule change is August 1, 2008, 

which is the implementation date of 

FINRA’s identical amendments to its 

version of NYSE Rule 431. 

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,6 in that it is designed to 

prevent fraudulent and manipulative 

practices, to promote just and equitable 

principles of trade, to remove 

impediments to, and perfect the 

mechanisms of, a free and open market 

and a national market system, and, in 

general, to protect investors and the 

public interest. 


sroberts on PROD1PC70 with NOTICES