46676 Federal Register / Vol. 73, No. 155 / Monday, August 11, 2008 / Notices 

12 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See SR–Amex–2008–62 (the ‘‘Merger 

Transaction filing’’). 

4See SR–Amex–2008–63 (the ‘‘NYSE Alternext 

Equities filing’’). 

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 the 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–

2008–62 and should be submitted on or 

before September 2, 2008. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Florence E. Harmon, 

Acting Secretary. 

[FR Doc. E8–18372 Filed 8–8–08; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–58290; File No. SR–NYSE–

2008–70] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Notice of 

Filing of Proposed Rule Change 

Amending Rules Governing 

Membership in Order To Waive-In 

Members in Good Standing of the 

American Stock Exchange LLC as 

Members and Member Organizations 

of the Exchange 

August 1, 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 July 30, 

2008, the New York Stock Exchange 

LLC (the ‘‘NYSE’’ or the ‘‘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 prepared by the Exchange. 

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 

rules governing membership in order to 

waive-in members in good standing of 

the American Stock Exchange LLC as 

members and member organizations of 

the Exchange. The text of the proposed 

rule change is available at the NYSE’s 

principal office, the Commission’s 

Public Reference Room, and http:// 

www.nyse.com. 

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 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

In connection with the acquisition by 

NYSE Euronext of The Amex 

Membership Corporation, including the 

relocation of all equities trading 

conducted on or through the existing 

systems and facilities of the American 

Stock Exchange LLC (‘‘Amex’’) to the 

trading systems and facilities operated 

by the NYSE (the ‘‘Equities 

Relocation’’), the NYSE proposes to 

amend Rules 2, 300, and 304A in order 

to provide that all NYSE Alternext U.S. 

LLC (‘‘NYSE Alternext’’) member 

organizations and members in good 

standing are deemed qualified and 

approved as NYSE member 

organizations or members. 

Background 

NYSE Alternext Transaction 

On January 17, 2008, the Amex 

Membership Corporation and NYSE 

Euronext entered into an Agreement and 

Plan of Merger (‘‘Merger Agreement’’) 

whereby, through a series of mergers, 

NYSE Euronext will acquire Amex, and, 

as a result of these mergers, Amex will 

become one of the U.S. wholly-owned 

subsidiaries of NYSE Group and will be 

renamed NYSE Alternext U.S. LLC (the 

‘‘Mergers’’).3

As described more fully in the Merger 

Transaction filing, in connection with 

the Mergers, Amex proposes to 

demutualize by separating all trading 

rights from equity ownership in Amex. 

As part of the demutualization, those 

persons who were previously Amex 

Regular Members or Options Principal 

Members (‘‘OPMs’’) will receive a 

certain amount of NYSE Euronext stock. 

Once the Mergers close, all trading 

rights appurtenant to the Amex Regular 

Members’ memberships or OPMs’

memberships will be cancelled. 

As proposed in the Merger 

Transaction filing, immediately 

following the closing of the Mergers, 

those persons and entities who were 

authorized to trade on the Amex before 

the closing of the Mergers, including 

Amex (i) owners, lessees, or nominees 

of Regular Members or OPMs, (ii) 

limited trading permit holders, and (iii) 

associate members, will be deemed to 

have satisfied applicable qualification 

requirements necessary to trade in 

NYSE Alternext’s demutualized 

marketplace and will be issued trading 

permits (referred to as ‘‘86 Trinity 

Permits’’) at no cost. The 86 Trinity 

Permit will authorize owners, lessees, or 

nominees of Amex Regular Members or 

OPMs, Amex limited trading permit 

holders, and Amex associate members 

who were authorized to trade on the 

Amex immediately before the Mergers 

to continue to trade at NYSE Alternext’s 

systems and facilities at 86 Trinity 

Place, New York, New York (the ‘‘86 

Trinity Trading Systems’’). NYSE 

Alternext will recognize the former 

Amex (i) owners, lessees, or nominees 

of Regular Members or OPMs, (ii) 

limited trading permit holders, and (iii) 

associate members as either NYSE 

Alternext member organizations or 

members, as applicable. 

In connection with the Mergers, NYSE 

Euronext intends to relocate all equities 

trading previously conducted on the 86 

Trinity Trading Systems to the NYSE’s 

trading systems and facilities located at 

11 Wall Street, New York, New York 

(the ‘‘NYSE Alternext Trading 

Systems’’). The NYSE Alternext Trading 

Systems will be operated by the NYSE 

on behalf of NYSE Alternext. NYSE 

Alternext will also adopt a version of 

the NYSE’s rules for trading equities on 

NYSE Alternext after the Equities 

Relocation.4


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5See SR–Amex–2008–62. 

6See NYSE Rules 300–313 and Amex Rules 300, 

301, 310, 311, 312, 341, 353, 356, and 359 and 

Article IV of the Amex Constitution. 

7See SR–Amex–2008–63. 

8The term ‘‘member organization’’ also includes 

‘‘member firm’’ and ‘‘member corporation.’’ See 

NYSE Rule 2(b)(iii). 

As described more fully in the NYSE 

Alternext Equities filing, the Equities 

Relocation will take place as soon as 

practicable after the closing of the 

Mergers. Similarly, NYSE Alternext will 

relocate all options trading conducted 

on the 86 Trinity Trading Systems to 

new facilities of NYSE Alternext to be 

located at 11 Wall Street, which 

facilities will utilize a trading system 

based on the options trading system 

used by NYSE Arca, Inc. (‘‘NYSE Arca’’) 

(‘‘Options Relocation,’’ and, together 

with the Equities Relocation, the 

‘‘Relocations’’). 

Holders of the 86 Trinity Permits will 

be able to apply for an NYSE Alternext 

equities trading license or options 

trading permit upon the Equities or 

Options Relocations, as applicable. 

After the Equities Relocation, a holder 

of an 86 Trinity Permit will only be able 

to trade products other than those that 

have relocated to NYSE Alternext 

Trading Systems. After the Options 

Relocation, the 86 Trinity Permits will 

be canceled.5

As described more fully in the NYSE 

Alternext Equities Rule filing, NYSE 

Alternext is proposing to adopt rules 

governing member organizations that 

are closely modeled on existing NYSE 

Rules 2 and 300–313. These rules are 

substantially similar to current Amex 

rules concerning membership.6

Nonetheless, the Exchange recognizes 

that, after the closing of the Mergers, 

there may be NYSE Alternext members 

or member organizations holding an 86 

Trinity Permit that may not immediately 

qualify for membership under the NYSE 

Alternext Equities Rules. NYSE 

Alternext is proposing to continue to 

approve such members and member 

organizations as NYSE Alternext 

members and member organizations 

notwithstanding whether they meet the 

proposed new standards. Such approval 

would be conditioned upon the NYSE 

Alternext member or member 

organization meeting the requirements 

of the adopted rules within a grace 

period of six months from the date that 

the member organization receives its 

NYSE Alternext equities trading license 

in exchange for a valid 86 Trinity 

Permit. NYSE Alternext would revoke a 

member organization’s approval to trade 

if it fails to meet the new membership 

qualifications by the close of the grace 

period. NYSE Alternext would also 

reserve the right to commence 

proceedings to terminate such a member 

organization’s membership, if 

applicable. 

In the NYSE Alternext Equities Rule 

filing, NYSE Alternext is also proposing 

to provide NYSE Alternext members 

with a grace period of six months within 

which to meet NYSE Alternext Equities 

proposed Rule 304A requirements to 

pass an examination required by the 

Exchange. This grace period would 

begin to run from the date that the 

individual member transfers to the 

NYSE Alternext Trading Systems, 

which may be a later date than the 

Equities Relocation. 

NYSE and NYSE Alternext Membership 

Rules 

After the Equities Relocation, 86 

Trinity Permit holders who apply to 

receive an NYSE Alternext equities 

trading license will also receive an 

NYSE Market trading license. In order to 

effectuate the issuance of these licenses, 

several changes are necessary to both 

the NYSE’s and NYSE Alternext’s rules 

regarding membership so that both 

SROs will have consistent standards for 

membership. The changes to Amex/ 

NYSE Alternext rules are addressed in 

the NYSE Alternext Equities Rule 

Filing; 7 this filing addresses the 

necessary changes to NYSE rules. 

NYSE Rule 2 defines the terms 

‘‘member’’ and ‘‘member organization.’’

Under NYSE Rule 2(b), a ‘‘member 

organization’’ means a registered broker 

or dealer (unless exempt pursuant to the 

Act) that is also a member of FINRA and 

has been approved by the Exchange to 

designate an associated natural person 

to effect transactions on the Floor of the 

Exchange. The term also includes any 

natural person so registered and 

approved and who directly effects 

transactions on the Floor of the 

Exchange.8 NYSE Rule 2(a) provides 

that a ‘‘member’’ includes any person 

associated with and designated by a 

member organization to effect 

transactions on the Floor of the 

Exchange. 

NYSE Rule 300 requires members and 

member organizations to have a trading 

license in order to effect transactions on 

the Floor of the Exchange or through 

any facility thereof. Only qualified and 

approved NYSE member organizations 

may acquire and hold a trading license. 

An NYSE member organization that 

holds a trading license may designate an 

NYSE member to effect transactions on 

its behalf on the Floor of the Exchange. 

Proposed Amendments to Exchange 

Rules 

The Exchange proposes to add 

supplementary material to NYSE Rule 2 

to provide that an NYSE Alternext 

member organization is deemed 

qualified and approved as an NYSE 

member organization and thus eligible 

to hold an NYSE trading license. The 

Exchange further proposes that 

Exchange membership would be 

automatic for NYSE Alternext member 

organizations and that such NYSE 

Alternext member organizations would 

be exempt from the Exchange’s new 

member organization application fee, as 

required by NYSE Rule 311(a) and set 

forth on the NYSE Price List. In 

addition, the Exchange proposes that 

any natural persons associated with an 

NYSE Alternext member organization 

and who has been approved by NYSE 

Alternext as a member and has been 

designated by an NYSE Alternext 

member organization to effect 

transactions on the Floor of NYSE 

Alternext would be deemed approved as 

an NYSE member. 

As proposed, NYSE Alternext member 

organizations and members that have 

been approved as member organizations 

and members by NYSE Alternext and 

that seek an NYSE Alternext equities 

trading license would be automatically 

waived in as NYSE member 

organizations and members. In this 

regard, the NYSE notes that NYSE 

Alternext will have the same standard 

for membership as the NYSE, so that if 

NYSE Alternext determines that an 

applicant is qualified to be an NYSE 

Alternext member organization, the 

NYSE will accept NYSE Alternext’s 

determination as conclusive evidence 

that the applicant is eligible for NYSE 

membership. In accordance with the 

Mergers, NYSE Alternext will certify to 

the Exchange that all such transferring 

members met the Amex’s minimum 

membership standards at the time that 

they were approved for membership and 

that nothing has come to the attention 

of NYSE Alternext that would disqualify 

any of these members. If an 86 Trinity 

Permit is revoked for any reason, such 

NYSE Alternext member organization 

would not be deemed eligible to be 

approved as an NYSE member 

organization. 

The Exchange is also proposing to 

adopt a temporary rule to apply to any 

NYSE Alternext member organizations 

that were approved as NYSE Alternext 

member organizations because they 

were a holder of an 86 Trinity Permit. 

Pursuant to proposed Rule 300.10T, 

which is closely modeled on the version 

of a similar rule in the NYSE Alternext 


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46678 Federal Register / Vol. 73, No. 155 / Monday, August 11, 2008 / Notices 

9Compare NYSE Rules 311–313 with Amex Rules 

300, 301, 310, 311, 312, 341, 353, 356, and 359 and 

Article IV of the Amex Constitution. 10See NYSE Rule 313.20. 11The Exchange rules governing membership 

impose certain ongoing obligations on member 

organizations that are not contained in the Amex 

membership rules and which NYSE Alternext 

member organizations would need to meet. See 

NYSE Rules 311(b)(7), 312(f)(2), 313.10, 313.21, and 

313.23. 

12See SR–FINRA–2008–043. 

13 15 U.S.C. 78f(b)(5). 

14 15 U.S.C. 78k–1(a)(1). 

Equities filing, the Exchange would 

provide NYSE Alternext member 

organizations with a six-month grace 

period within which to meet the 

requirements of Exchange rules 

governing membership. Such grace 

period would begin to run from the date 

that the NYSE Alternext member 

organization transfers its equities 

operations to the NYSE Alternext 

Trading Systems pursuant to a valid 86 

Trinity Permit. If a member organization 

fails to meet the requirements of 

Exchange rules governing membership 

by the close of the grace period, the 

Exchange would revoke a member 

organization’s approval to trade. The 

Exchange would also reserve the right to 

commence proceedings to terminate 

such a member organization, if 

applicable. 

The Exchange notes that the current 

Amex rules governing membership are 

substantially similar to Exchange rules 

governing membership.9 An Exchange 

requirement that the Amex currently 

does not have is that a member 

organization must submit an opinion of 

counsel that a member corporation’s 

stock is validly issued and outstanding 

and that the restrictions and provisions 

required by the Exchange on the 

transfer, issuance, conversion and 

redemption of its stock have been made 

legally effective.10 Accordingly, if a 

NYSE Alternext member organization 

has not previously provided such an 

opinion of counsel to Amex, it must be 

provided to NYSE Alternext within six 

months of the member organization 

transferring its equities operations to the 

NYSE Alternext Trading Systems 

pursuant to a valid 86 Trinity Permit.11

Similar to the NYSE Alternext 

Equities Rule filing, the Exchange 

proposes that NYSE Alternext members 

be provided a grace period of six 

months within which to meet NYSE 

Rule 304A requirements to pass an 

examination required by the Exchange. 

The Exchange believes that this grace 

period should begin to run from the date 

that the individual member transfers to 

the NYSE Alternext Trading Systems, 

which may be a later date than the 

Equities Relocation. In addition, the 

Exchange proposes adding temporary 

Rule 304A.90T to address any changes 

that an approved person may have to 

make in connection with being 

associated with an Exchange member 

organization. 

Finally, the Exchange proposes 

providing a temporary exemption from 

the Rule 2 requirement that all member 

organizations be a FINRA member for 

those NYSE Alternext member 

organizations that: (i) Hold a valid 86 

Trinity Permit as of the date that the 

NYSE Alternext member organization 

transfers its equities operations to NYSE 

Alternext Trading Systems; (ii) are not 

currently a FINRA member; and (iii) are 

eligible for FINRA’s waive-in 

membership process under FINRA’s 

proposed Interpretive Material 1013–

2.12 The Exchange proposes a 60-day 

grace period for such NYSE Alternext 

member organizations to apply for and 

be approved as FINRA members. Such 

grace period would run from the date 

that the NYSE Alternext member 

organization transfers its equities 

operation to NYSE Alternext Trading 

Systems pursuant to a valid 86 Trinity 

Permit, which may be a later date than 

the Equities Relocation. 

The proposed changes to Exchange 

rules are contingent on the approval of 

the Merger Transaction filing, the 

closing of the Mergers, and the approval 

of the NYSE Alternext Equities Rule 

filing. 

2. Statutory Basis 

The Exchange believes the proposed 

rule change is consistent with and 

furthers the objectives of Section 

6(b)(5) 13 of the Act, in that it is 

designed to prevent fraudulent and 

manipulative acts and practices, 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. The 

proposed rule change also is designed to 

support the principles of Section 

11A(a)(1) 14 of the Act in that it seeks to 

assure fair competition among brokers 

and dealers and among exchange 

markets and the practicability of brokers 

executing investors’ orders in the best 

market. 

Specifically, because NYSE and NYSE 

Alternext intend to have identical 

membership standards, the NYSE 

believes that amending NYSE Rule 2 to 

permit the cross-licensing of members 

and member organizations based on 

approval from only one of the two selfregulatory organizations will remove an 

impediment to free and open markets by 

eliminating unnecessary regulatory 

duplication in the membership process. 

Through this regulatory streamlining, 

the NYSE and NYSE Alternext will 

enable broker-dealers to more efficiently 

enter both the NYSE and NYSE 

Alternext market centers to begin 

providing services on behalf of their 

customers. At the same time, the NYSE 

notes that this proposal will not in any 

way lessen the regulatory scrutiny that 

new NYSE members receive (and 

therefore does not adversely affect the 

public interest or investor protection), 

since, prior to the NYSE deeming their 

applications approved, applicants will 

have been reviewed and approved by a 

self-regulatory organization that is 

applying the same standard as the NYSE 

itself would apply. 

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 

Within 35 days of the date of 

publication of this notice in the Federal 

Register or within such longer period (i) 

as the Commission may designate up to 

90 days of such date if it finds such 

longer period to be appropriate and 

publishes its reasons for so finding, or 

(ii) as to which the NYSE consents, the 

Commission will: 

(A) By order approve such proposed 

rule change; or 

(B) Institute proceedings to determine 

whether the proposed rule change 

should be disapproved. 

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 


rmajette on PRODPC74 with NOTICES
Federal Register / Vol. 73, No. 155 / Monday, August 11, 2008 / Notices 46679 

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. 

4See Securities Exchange Act Release No. 54549 

(September 29, 2006), 71 FR 59179 (October 6, 

2006) (SR–NYSEArca–2006–59). 

• Send an e-mail to rulecomments@sec.gov. Please include File 

Number SR–NYSE–2008–70 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–2008–70. 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 the 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–

2008–70 and should be submitted on or 

before September 2, 2008. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.15

Florence E. Harmon, 

Acting Secretary. 

[FR Doc. E8–18374 Filed 8–8–08; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 58266; File No. SR–NYSEArca–

2008–80] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Eliminating Certain 

Obsolete Rules 

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 24, 

2008, NYSE Arca, Inc. (‘‘NYSE Arca’’ 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 

prepared by the self-regulatory 

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 the Substance 

of the Proposed Rule Change 

The Exchange proposes to amend its 

rules in order to remove obsolete and 

unnecessary rule text related to 

information that is now obsolete. These 

changes are being made for 

administrative purposes only. By 

abolishing these out-dated references, 

the Exchange is not changing or altering 

any obligations, rights, policies or 

practices enumerated within its rules. 

The text of the proposed rule change is 

available at the Exchange, 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, 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 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The purpose of this filing by NYSE 

Arca is to remove obsolete and 

unnecessary rule text in several of its 

rules. By abolishing these out-dated 

references, the Exchange is not changing 

or altering any obligations, rights, 

policies or practices enumerated within 

its rules. 

In September 2006, the Exchange 

revised its rules to conform to 

Regulation NMS.4 At that time, there 

was a transitional period where the preNMS version of certain rules were in 

effect until a specified date (February 5, 

2007), after which the new NMS version 

of the rule would take effect. As a result, 

there are several Exchange rules that 

contain both pre-NMS provisions as 

well as current applicable provisions. In 

fact, many of the Exchange’s rules are 

identified either as operative through 

February 5, 2007 or operative after 

February 5, 2007. Retaining these 

outdated pre-NMS provisions fosters 

unnecessary confusion. The Exchange 

proposes to amend its rules to remove 

this text that is both unnecessary and, 

by its very terms, obsolete. 

The specific proposed changes are 

discussed in further detail below. 

• Rule 1.1: This rule sets forth certain 

definitions and references that are in 

effect at NYSE Arca. By this proposal, 

the Exchange is eliminating obsolete 

terms that were identified as being in 

effect until February 5, 2007 while 

maintaining (without revision) the 

currently operative terms that were 

identified as having taken effect as of 

February 5, 2007, as shown below. 

› Rule 1.1(aa): The Exchange is 

deleting the out-dated definition of the 

term ‘‘Nasdaq Security’’ while retaining 

the currently operative definition of the 

same term. 

› Rule 1.1(dd): The Exchange is 

deleting the out-dated definition of the 

term ‘‘NBBO’’ while retaining the 

currently operative definition of the 

same term. 

› Rule 1.1(rr): The Exchange is 

deleting the out-dated definition of the 

term ‘‘Security’’ while retaining the 

currently operative definition of the 

same term. 

› Rule 1.1(ddd): The Exchange is 

deleting the unnecessary reference to 

the operative date of the definition of 

the term ‘‘NMS Stock’’ while retaining 


rmajette on PRODPC74 with NOTICES