46124 Federal Register / Vol. 73, No. 153 / Thursday, August 7, 2008 / Notices 

18For 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). 

19 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3Under Rule 104(e)(i), for an incoming buy order, 

the specialist must be represented in the offer, and 

for an incoming sell order, the specialist must be 

represented in the bid. The price improvement 

offered must be at least one cent. 

grants the Exchange’s request and 

designates the proposal as operative 

upon filing.18

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. SRVNYSE–2008–67 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–NYSE–2008–67. 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 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–

2008–67 and should be submitted on or 

before August 28, 2008. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.19

Florence E. Harmon, 

Acting Secretary. 

[FR Doc. E8–18153 Filed 8–6–08; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–58278; File No. SR–NYSE–

2008–61] 

Self-Regulatory Organizations; Notice 

of Filing of a Proposed Rule Change by 

New York Stock Exchange LLC 

Amending NYSE Rule 104(e) (Dealings 

by Specialists) To Modify the 

Conditions Governing the Specialists’

Use of the Price Improvement Trading 

Message Pursuant to NYSE Rule 

104(b)(i)(H) 

July 31, 2008. 

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

Securities Exchange Act of 1934 (the 

‘‘Act’’) 1 and Rule 19b–4 thereunder,2

notice is hereby given that, on July 25, 

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 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 

Exchange Rule 104(e) (Dealings by 

Specialists) to modify the conditions 

governing the specialists’ use of the 

price improvement trading message 

pursuant to Rule 104(b)(i)(H). The text 

of the proposed rule change is available 

at NYSE, www.nyse.com, 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 Exchange seeks to modify the 

conditions that govern the ability of 

specialists to provide price 

improvement pursuant to Rule 104 

(Dealings by Specialists). Specifically, 

the Exchange proposes to amend 

Exchange Rule 104(e) to remove the 

requirement that specialists be 

represented in the quote in a 

‘‘meaningful amount’’ before they can 

send a trading message that will provide 

price improvement to arriving 

marketable orders (i.e., those orders 

capable of trading in the current market 

upon arrival). 

Pursuant to Exchange Rule 104(b)(i), a 

specialist’s algorithm may generate and 

transmit quoting and trading messages 

in a number of specific situations 

detailed in the rule. Under Rule 

104(b)(i)(H), one of the permitted 

algorithmic trading messages allows the 

specialist to provide price improvement 

to an order subject to the provisions of 

Rule 104(e). Rule 104(e)(i) calls for the 

specialist to be represented in the quote 

for a ‘‘meaningful amount’’ in order to 

provide price improvement to an 

arriving order.3 A ‘‘meaningful amount’’

is defined in Rule 104(e)(ii) as at least 

ten round lots (usually 1,000 shares) for 

the 100 most active securities (based on 

average daily volume) on the Exchange, 

and at least five round lots (usually 500 

shares) for all other securities on the 

Exchange. 

The price improvement message 

capability was designed to provide 

trading opportunities for which the 

specialist’s algorithm could interact 

with orders electronically, supplying 


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Federal Register / Vol. 73, No. 153 / Thursday, August 7, 2008 / Notices 46125 

4See Securities Exchange Act Release No. 53539 

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

(SR–NYSE 2004–05) (approving, among others, 

NYSE Rules 104(b)(i)(H) and 104(e)). 

5As first approved in SR–NYSE–2004–05, Rule 

104(e) required that the price improvement 

provided by the specialist be (a) at least three cents 

where the quotation spread is more than five cents, 

(b) at least two cents where the quotation spread is 

three, four or five cents, or (c) one cent where the 

quotation spread is two cents. 

6 In SR–NYSE–2007–81, the Exchange stated that 

the rate of price improvement offered by specialists 

had dropped from 1.47% in July 2006 to .03% in 

July 2007. 

7For example, the average quote size for the top 

100 equity securities traded on the Exchange in 

November 2006 was 18,907 shares on the bid side, 

and 20,375 shares on the offer side. By November 

2007 these values were 3,645 shares and 3,230 

shares, respectively. As of May 2008, they are 5,462 

shares bid and 4,875 shares offered. For securities 

beyond the top 100, the averages of bid and offer 

sizes for bids have also declined, but are slightly 

higher on the offer side. As of the end of November 

2007, the averages were approximately 900 shares 

bid and 661 shares offered. As of the end of May 

2008 the averages are 736 shares bid and 678 shares 

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

capital and liquidity to the Hybrid 

MarketSMas they did in the Exchange’s 

auction market. Part of this ability is to 

be able to offer price improvement to 

other market participants on the 

Exchange. As originally approved in the 

Exchange’s Hybrid MarketSM filing,4 the 

amount of price improvement to be 

supplied was also subject to minimums 

based on the quotation spread in the 

security at the time of the proposed 

trade with the incoming order.5

However, in SR–NYSE–2007–81, the 

Exchange removed the minimum price 

improvement amount based on the 

Exchange’s belief that these required 

minimums were a contributing factor to 

the decline in the level of price 

improvement offered by specialists.6

The removal of the required price 

parameters for specialist price 

improvement has not resulted in an 

appreciable rise in the level of specialist 

participation in price improvement 

trading. The Exchange believes that this 

is as a result of the ‘‘meaningful 

amount’’ minimum display requirement 

in Rule 104(e)(ii). As quote sizes 

continue to drop on the Exchange,7 the 

Exchange believes that requiring the ten 

and five round lot minimums serve as 

a deterrent to price improvement 

participation by specialists since the 

required minimums potentially 

represent a significant portion of the 

current average size of bids and offers. 

Consequently, the Exchange proposes to 

remove these minimums in an effort to 

provide an incentive to specialists to 

participate more fully in the price 

improvement mechanism. 

The Exchange notes that Floor brokers 

have the ability to include discretionary 

instructions with e-Quotes that they 

have entered (‘‘d-Quotes’’) pursuant to 

Rule 70.25. One of the features of dQuotes is that the Floor broker can offer 

a range in which this interest will trade. 

By using such discretionary 

instructions, Floor brokers are able to 

systemically trade with incoming 

marketable orders and offer price 

improvement in a like manner to the 

specialist algorithm. There are, 

however, no minimum size 

requirements placed on Floor brokers’

d-Quotes. Thus, removing the minimum 

size requirements for specialists’ price 

improvement trading messages will 

increase competition and ultimately 

lead to increased opportunities for price 

improvement for Exchange market 

participants. 

2. Statutory Basis 

The basis under the Act for this 

proposed rule change are the 

requirements under Section 6(b)(5) 8

that the rules of an exchange be 

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. The Exchange believes 

that the instant proposal to remove the 

requirement that a specialist be 

represented in the NYSE quote in order 

to provide price improvement to an 

incoming order is consistent with the 

above principles in that it encourages 

specialists to additionally enhance the 

liquidity in the market and fosters 

increased competition among Exchange 

market participants, thus providing 

Exchange customers with additional 

opportunities for price improvement. 

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 self-regulatory 

organization 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 

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

Number SR–NYSE–2008–61 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–2008–61. 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 Exchange. All 

comments received will be posted 

without change; the Commission does 

not edit personal identifying 

information from submissions. You 


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46126 Federal Register / Vol. 73, No. 153 / Thursday, August 7, 2008 / Notices 

9 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3Equity Index-Linked Securities are securities 

that provide for the payment at maturity of a cash 

amount based on the performance of an underlying 

index or indexes of equity securities (an ‘‘Equity 

Reference Asset’’). 

4NYSE Arca Equities Rule 5.2(j)(6)(B)(I)(1)(b)(vi) 

provides that all component securities of the 

underlying index shall be either (A) securities 

(other than foreign country securities and American 

Depository Receipts (‘‘ADRs’’)) that are (x) issued by 

an Act reporting company or by an investment 

company registered under the Investment Company 

Act of 1940, which, in each case, are listed on a 

national securities exchange, and (y) an ‘‘NMS 

stock’’ (as defined in Rule 600 of Regulation NMS) 

or (B) foreign country securities or ADRs, provided 

that foreign country securities or foreign country 

securities underlying ADRs having their primary 

trading market outside the United States on foreign 

trading markets that are not members of the 

Intermarket Surveillance Group (‘‘ISG’’) or parties 

to comprehensive surveillance sharing agreements 

with the Exchange will not in the aggregate 

represent more than 20% of the dollar weight of the 

index. Subject to the pending approval of a separate 

rule filing (Securities Exchange Act Release No. 

58142 (July 11, 2008), 73 FR 41147 (July 17, 2008) 

(SR–NYSEArca–2008–70)), this subsection will be 

renumbered as NYSE Arca Equities Rule 

5.2(j)(6)(B)(I)(1)(b)(v). 

5 17 CFR 240.10A–3. 

6 15 U.S.C. 78a. 

7See, e.g., Securities Exchange Act Release Nos. 

52204 (August 3, 2005), 70 FR 46559 (August 10, 

2005) (SR–PCX–2005–63); 56637 (October 10, 

2007), 72 FR 58704 (October 16, 2007) (SR–

NYSEArca–2007–92); 57132 (January 11, 2008), 73 

FR 3300 (January 17, 2008) (SR–NYSEArca–2007–

125); 56838 (November 26, 2007), 72 FR 67774 

(November 30, 2007) (SR–NYSEArca–2007–118); 

and 56879 (December 3, 2007), 72 FR 69271 

(December 7, 2007) (SR–NYSEArca–2007–110). See 

e-mail from Timothy J. Malinowski, Director, NYSE 

Group, Inc., to Brian O’Neill, Staff Attorney, and 

Edward Cho, Special Counsel, Division of Trading 

and Markets, Commission, dated July 23, 2008. 

should submit only information that 

you wish to make publicly available. All 

submissions should refer to File 

Number SR–NYSE–2008–61 and should 

be submitted on or before August 28, 

2008. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.9

Florence E. Harmon, 

Acting Secretary. 

[FR Doc. E8–18158 Filed 8–6–08; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–58276; File No. SR–

NYSEArca–2008–79] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing of Proposed 

Rule Change To List and Trade 

ELEMENTSSM Linked to the CS/RT 

Emerging Infrastructure Total Return 

Index Powered by HOLTTM Due 2023 

July 31, 2008. 

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

Securities Exchange Act of 1934 (the 

‘‘Act’’) 1 and Rule 19b–4 thereunder,2

notice is hereby given that on July 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 

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 list and 

trade the ELEMENTSSM Linked to the 

CS/RT Emerging Infrastructure Total 

Return Index Powered by HOLTTM due 

2023 (the ‘‘Notes’’), which are linked to 

the CS/RT Emerging Infrastructure Total 

Return Index Powered by HOLTTM (U.S. 

dollar) (the ‘‘Index’’). The text of the 

proposed rule change is available at the 

Exchange, the Commission’s Public 

Reference Room, and 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, 

NYSE Arca 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. 

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 Exchange proposes to list and 

trade the Notes, which are linked to the 

Index, under NYSE Arca Equities Rule 

5.2(j)(6), which includes the Exchange’s 

listing standards for Equity IndexLinked Securities.3 The Notes are senior 

unsecured debt obligations of Credit 

Suisse, acting through its Nassau Branch 

(‘‘Credit Suisse’’). The Index is 

comprised of 50 equally-weighted 

exchange-listed emerging infrastructurerelated companies that are chosen 

according to a rules-based methodology 

for scoring stocks (each an ‘‘Index 

Component’’ and, collectively, the 

‘‘Index Components’’). The Index 

enables investors to participate in the 

performance of a selection of companies 

that have a focus on infrastructure, 

power and utilities, or agriculture and 

derive at least 15% of their revenue 

from the Global Emerging Markets 

(‘‘GEM’’). A GEM is defined as any 

country except the United States, 

Canada, Australia, New Zealand, Japan, 

Hong Kong, Singapore, Austria, 

Belgium, Luxembourg, Denmark, 

Finland, France, Germany, Greece, 

Ireland, Italy, the Netherlands, Norway, 

Portugal, Spain, Sweden, and the 

United Kingdom. 

The Exchange is submitting this 

proposed rule change because the Index 

does not meet all of the ‘‘generic’’ listing 

requirements of NYSE Arca Equities 

Rule 5.2(j)(6) applicable to the listing of 

Equity Index-Linked Securities. The 

Index meets all such requirements 

except for those set forth in NYSE Arca 

Equities Rule 5.2(j)(6)(B)(I)(1)(b)(vi).4

The Exchange represents that: (1) Except 

for NYSE Arca Equities Rule 

5.2(j)(6)(B)(I)(1)(b)(vi), the Notes 

currently satisfy all of the generic listing 

standards under NYSE Arca Equities 

Rule 5.2(j)(6) applicable to Equity IndexLinked Securities; (2) the continued 

listing standards under NYSE Arca 

Equities Rule 5.2(j)(6) applicable to 

Equity Index-Linked Securities shall 

apply to the Notes; and (3) Credit Suisse 

is required to comply with Rule 10A–3 5

under the Act 6 for the initial and 

continued listing of the Notes. In 

addition, the Exchange represents that 

the Notes will comply with all other 

requirements applicable to Equity 

Index-Linked Securities including, but 

not limited to, requirements relating to 

the dissemination of key information 

such as the Equity Reference Asset 

value, rules and policies governing the 

trading of equity securities, trading 

hours, trading halts, surveillance, 

firewall, and Information Bulletin to 

ETP Holders, as set forth in prior 

Commission orders approving the 

generic listing rules applicable to the 

listing and trading of Index-Linked 

Securities, generally, and Equity IndexLinked Securities, in particular.7

As of April 30, 2008, the market 

capitalization of the ten largest Index 

Components, accounting for the top 

20% of Index weight, was 

approximately $873.9 billion. The 

highest weighted stock was Vodafone 


sroberts on PROD1PC70 with NOTICES