6540 Federal Register / Vol. 73, No. 23 / Monday, February 4, 2008 / Notices 

11 15 U.S.C. 78s(b)(3)(A). 12 17 CFR 240.19b–4(f)(2). 

13 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). 

5See Securities Exchange Act Release No. 48857 

(December 1, 2003), 68 FR 68440 (December 8, 

2003) (SR–NYSE–2002–40). 

in light of the costs incurred by the 

Exchange for the operation of the 

MatchPoint system. Additionally, the 

transaction fee is equitable as the fee is 

applied to all users of the MatchPoint 

system equally. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

NYSE does not believe that the 

proposed rule change will impose any 

burden on competition that is not 

necessary or appropriate in furtherance 

of the purpose of the Act. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants or Others 

Written comments were neither 

solicited nor received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing rule change has become 

effective pursuant to section 19(b)(3)(A) 

of the Act 11 and Rule 19b–4(f)(2) 12

thereunder because it establishes a due, 

fee, or other charge applicable to a 

member imposed by NYSE. At any time 

within 60 days of the filing of such 

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 

Number SR–NYSE–2008–06 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–2008–06. 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, 100 F Street, NE., Washington, 

DC 20549, 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 the NYSE. 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–2008–06 and should 

be submitted on or before February 25, 

2008. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Nancy M. Morris, 

Secretary. 

[FR Doc. E8–1878 Filed 2–1–08; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–57213; File No. SR–

NYSE–2008–07] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change Relating to the 

Extension of Crossing Sessions III and 

IV Pilots 

January 28, 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 January 

22, 2008, 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 prepared by the Exchange. The 

Exchange filed the proposed rule change 

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

Act 3 and Rule 19b–4(f)(6) thereunder, 

which renders it effective upon filing 

with the Commission.4 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 NYSE proposes to extend until 

February 1, 2009 the following pilot 

programs: Crossing Session III, for the 

execution of guaranteed price coupled 

orders by member organizations to fill 

the balance of customer orders at a price 

that was guaranteed to a customer prior 

to the close of the Exchange’s 9:30 a.m. 

to 4 p.m. trading session; and Crossing 

Session IV, whereby an unfilled balance 

of an order may be filled at a price such 

that the entire order is filled at no worse 

price than the Volume Weighted 

Average Price (‘‘VWAP’’) for the subject 

security. 

The text of the proposed rule change 

is available on the NYSE’s Web site 

(http://www.nyse.com), at the NYSE’s 

Office of 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 and discussed any 

comments it received on the proposed 

rule change. The Exchange 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 

In SR–NYSE–2002–40,5 the 

Commission approved the 

establishment of two new crossing 

sessions (Crossing Sessions III and IV) 

in the Exchange’s Off-Hours Trading 


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Federal Register / Vol. 73, No. 23 / Monday, February 4, 2008 / Notices 6541 

6See Securities Exchange Act Release No. 51091 

(January 28, 2005), 70 FR 6484 (February 7, 2005) 

(SR–NYSE–2005–01). 

7See Securities Exchange Act Release No. 53275 

(February 13, 2006), 71 FR 8626 (February 17, 2006) 

(SR–NYSE–2006–02). 

8See Securities Exchange Act Release No. 55281 

(February 12, 2007), 72 FR 7804 (February 20, 2007) 

(SR–NYSE–2007–07). 

9 15 U.S.C. 78f(b). 

10 15 U.S.C. 78f(b)(5). 

Facility (‘‘OHTF’’) as a pilot program 

(‘‘Pilot’’), expiring on December 1, 2004. 

In SR–NYSE–2005–01,6 the Commission 

approved an extension of the Pilot to 

February 1, 2006. In SR–NYSE–2006–

02,7 the Commission approved an 

extension of the Pilot to February 1, 

2007. In SR–NYSE–2007–07 8 the 

Commission approved an extension of 

the Pilot to February 1, 2008. 

This filing seeks to extend the Pilot 

until February 1, 2009. Crossing 

Sessions III and IV are described below. 

Background 

The purpose of the original proposed 

rule change was to add two additional 

‘‘Crossing Sessions’’ (Crossing Sessions 

III and IV) to the Exchange’s OHTF. 

Before the proposed rule change, the 

OHTF consisted of Crossing Sessions I 

and II. Crossing Session I permits the 

execution, at the Exchange’s closing 

price, of single-stock, single-sided 

closing price orders and crosses of 

single-stock, and closing price buy and 

sell orders. Crossing Session II permits 

the execution of crosses of multiplestock (‘‘basket’’) aggregate-priced buy 

and sell orders. For Crossing Session II, 

trade reporting is accomplished by 

reporting to the Consolidated Tape the 

total number of shares and the total 

market value of the aggregate-price 

trades. There is no indication of the 

individual component stocks involved 

in the aggregate-price transactions. 

Crossing Session III 

The Exchange is proposing to extend 

until February 1, 2009, the Pilot in 

Crossing Session III. Crossing Session III 

is described in Exchange Rule 907. This 

Pilot would continue to allow for the 

execution on the NYSE of ‘‘guaranteed 

price coupled orders’’ whereby member 

organizations could fill the unfilled 

balance of a customer order at a price 

which was guaranteed to the customer 

prior to the close of the Exchange’s 9:30 

a.m. to 4 p.m. trading session. 

Member firms, in serving their 

institutional customers, may offer them 

a guarantee that a large size order will 

receive no worse than a particular price. 

Such a practice is usually referred to as 

an ‘‘upstairs stop,’’ meaning that the 

firm guarantees that its customer’s order 

will be executed at no worse price than 

the agreed-upon, guaranteed price, with 

the member firm trading for its own 

account, if necessary, to effectuate the 

guarantee. 

Typically, a member firm will seek to 

execute as much of the order as possible 

during the trading day at or below the 

‘‘stop’’ price (in the case of a buy order) 

or at or above the ‘‘stop’’ price (in the 

case of a sell order). Any portion of the 

order not filled during the trading day 

will be completed after hours, with the 

firm either buying from, or selling to, its 

customer at a price which ensures that 

the entire order is executed at a price 

which is no worse than the ‘‘stop’’ price. 

Member firms typically execute the 

unfilled balance of the order, after the 

U.S. Consolidated Tape is closed, in the 

London over-the-counter market, where 

trades are not reported in real time. The 

purpose of this is simply to minimize 

the possibility that other market 

participants may ascertain the firm’s, or 

the customer’s inventory position, and 

possibly trade in the subject security to 

the detriment of the firm that granted 

the ‘‘upstairs stop.’’ The Exchange 

believes that it is more transparent to 

print the trade in the NYSE primary 

market during U.S. Consolidated Tape 

hours. 

Crossing Session IV 

The Exchange is also proposing to 

extend the Pilot in Crossing Session IV 

(which is also described in Exchange 

Rule 907), until February 1, 2009. 

Crossing Session IV is a facility whereby 

member organizations may fill the 

unfilled balance of a customer’s order at 

a price such that the overall order is 

filled at a price that is no worse than the 

VWAP (the volume weighted average 

price) for the subject security on that 

trading day. The member organization 

would be required to document its 

VWAP agreement with the customer 

and the basis upon which the VWAP 

price would be determined. 

Operation of Crossing Sessions 

As described in NYSE Information 

Memos 04–30 and 05–57 and Rule 907, 

Crossing Sessions III and IV would 

continue to operate as follows: 

(i) The original order as to which an 

‘‘upstairs stop’’ or ‘‘VWAP’’ has been 

granted may be of any size; 

(ii) The customer must have received 

a ‘‘stop’’ (guaranteed price) or VWAP for 

the entire order; 

(iii) The member firm must record all 

details of the order, including the price 

it has guaranteed its customer or that 

the entire order will be filled at no 

worse than the VWAP; 

(iv) An order or the unfilled balance 

of an order that would be executed in 

Crossing Session III or Crossing Session 

IV may be of any size; 

(v) The customer’s order must be 

executed in Crossing Session III or 

Crossing Session IV at a price that 

ensures that the entire order is executed 

at a price that is no worse than the 

guaranteed price or the VWAP; 

(vi) Orders may be entered in Crossing 

Session III or Crossing Session IV 

between 4 p.m. and 6:30 p.m., and must 

be identified as either a Crossing 

Session III or Crossing Session IV order; 

(vii) Member firms will receive an 

immediate report of execution upon 

entering an order into Crossing Session 

III or Crossing Session IV; 

(viii) Orders may be entered into 

Crossing Session III for execution at 

prices outside the trading range in the 

subject security during the 9:30 a.m. to 

4 p.m. trading session; 

(ix) Orders may not be entered into 

Crossing Session III or Crossing Session 

IV in a security that is subject to a 

trading halt at the close of the regular 

9:30 a.m. to 4 p.m. trading session; and 

(x) At 6:30 p.m., the Exchange will 

print trades reported through Crossing 

Session III as guaranteed price coupled 

orders or in Crossing Session IV as 

VWAP executions. 

2. Statutory Basis 

NYSE believes that the proposed rule 

change is consistent with section 6 of 

the Act 9 in general, and furthers the 

objectives of section 6(b)(5) of the Act 10

in particular, 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. 

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 


ebenthall on PRODPC61 with NOTICES
6542 Federal Register / Vol. 73, No. 23 / Monday, February 4, 2008 / Notices 

11 15 U.S.C. 78s(b)(3)(A)(iii). 

12 17 CFR 240.19b–4(f)(6). 

13Rule 19b–4(f)(6) also requires the Exchange to 

give the Commission written notice 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 the date of filing 

of the proposed rule change, or such shorter time 

as designated by the Commission. The Exchange 

has satisfied the pre-filing requirement. 

14 17 CFR 240.19b–4(f)(6)(iii). 

15For purposes only of waiving the 30-day preoperative period, the Commission has considered 

the proposed rule’s impact on efficiency, 

competition and capital formation. 15 U.S.C. 78c(f). 

16 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). 

19(b)(3)(A)(iii) of the Act 11 and Rule 

19b–4(f)(6) thereunder.12 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.13

A proposed rule change filed under 

Rule 19b–4(f)(6) normally does not 

become operative prior to 30 days after 

the date of the filing. However, pursuant 

to Rule 19b–4(f)(6)(iii),14 the 

Commission may designate a shorter 

time if such action is consistent with the 

protection of investors and the public 

interest. NYSE 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 continue 

the Pilots without undue delay, which 

it believes is in the public interest as it 

will avoid inconvenience and 

interruption to the public. The 

Commission believes such waiver is 

consistent with the protection of 

investors and the public interest 

because it presents no new issues and 

would allow the Pilots to operate 

without interruption. For this reason, 

the Commission designates the proposal 

to be operative upon filing with the 

Commission.15

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

Number SR–NYSE–2008–07 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–2008–07. 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, 100 F Street, NE., Washington, 

DC 20549, on official business days 

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

Copies of such filing will also be 

available for inspection and copying at 

the principal office of the NYSE. 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–2008–07 and should be 

submitted on or before February 25, 

2008. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.16

Nancy M. Morris, 

Secretary. 

[FR Doc. E8–1879 Filed 2–1–08; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–57219; File No. SR–

NYSEArca–2008–13] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change Relating To Listing 

Standards for Index-Linked 

Exchangeable Notes in NYSE Arca 

Equities Rule 5.2(j)(4) 

January 29, 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 January 

22, 2008, NYSE Arca, Inc. (‘‘NYSE 

Arca’’ or ‘‘Exchange’’), through its 

wholly-owned subsidiary NYSE Arca 

Equities, Inc. (‘‘NYSE Arca Equities’’), 

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 Exchange filed the 

proposal pursuant to section 19(b)(3)(A) 

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 

The Exchange proposes to amend its 

rules governing NYSE Arca, LLC (also 

referred to as the ‘‘NYSE Arca 

Marketplace’’), which is the equities 

trading facility of NYSE Arca Equities. 

More specifically, the Exchange 

proposes to amend NYSE Arca Equities 

Rule 5.2(j)(4), the Exchange’s initial 

listing standards for ‘‘Index-Linked 

Exchangeable Notes.’’ The text of the 

proposed rule change is available at the 

Exchange, the Commission’s Public 

Reference Room, and http:// 

www.nyse.com. 


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