Federal Register / Vol. 73, No. 25 / Wednesday, February 6, 2008 / Notices 7021 

6See Securities Exchange Act Release No. 56890 

(December 4, 2007), 72 FR 70360 (December 11, 

2007) (SR–NSX–2007–13). 

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

8 15 U.S.C. 78f(b)(4). 

9 15 U.S.C. 78s(b)(3)(A)(ii). 

10 17 CFR 240.19b–4(f)(2). 11 17 CFR 200.30–3(a)(12). 

Exchange proposes to implement these 

changes on January 2, 2008. 

The Exchange proposes to restructure 

its Schedule of Fees and allocation of 

market data rebates to provide Equity 

Electronic Access Members (‘‘Equity 

EAMs’’) that submit equity orders an 

efficient method of calculating the exact 

cost of trading on the ISE Stock 

Exchange. Specifically, rather than 

providing these Equity EAMs with a 

lump sum market data rebate every 

quarter, the Exchange proposes to 

increase the rebate for execution of 

equity orders that provide liquidity from 

$0.0025 to $0.0032 for securities that 

trade at or above $1.00. This change will 

allow Equity EAMs to perform a precise 

cost benefit analysis in determining 

where to route their order flow. 

The Exchange proposes to increase 

the rebate for the execution of equity 

orders submitted on an order delivery 

basis that provide liquidity from 

$0.0025 to $0.0027 for securities that 

trade at or above $1.00, but to leave the 

allocation of market data rebates the 

same for these orders. The Exchange has 

determined that increasing the maker 

rebate, discussed above, and continuing 

to rebate 50% of its quote and trade 

revenue to Order Delivery Equity EAMs 

is necessary for competitive reasons, 

particularly in light of the fact that other 

markets have similar maker rebates and 

provisions in their market data revenue 

rebate program.6

The Exchange believes that these fee 

changes will not impair its ability to 

carry out its regulatory responsibilities. 

Furthermore, the Exchange intends that 

this rule change will not have an overall 

effect on the amounts rebated to Equity 

EAMs, except that payments will occur 

on a monthly instead of quarterly basis. 

The monies rebated to Order Delivery 

Equity EAMs on a quarterly basis 

remain unchanged. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the objectives of section 6(b) of the Act,7

in general, and furthers the objectives of 

section 6(b)(4),8 in particular, in that it 

is designed to provide for the equitable 

allocation of reasonable dues, fees, and 

other charges among its members and 

issuers and other persons using its 

facilities. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange believes that the 

proposed rule change does not 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 interested parties. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing proposed rule change 

has become effective upon filing with 

the Commission pursuant to section 

19(b)(3)(A)(ii) of the Act 9 and Rule 19b–

4(f)(2) 10 thereunder, because it 

establishes or changes a due, fee, or 

other charge applicable only to a 

member. 

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 

Number SR–ISE–2007–124 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–ISE–2007–124. 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 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–2007–124 and should 

be submitted on or before February 27, 

2008. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E8–2124 Filed 2–5–08; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–57239; File No. SR–NYSE–

2007–98] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Order 

Approving Proposed Rule Change, as 

Modified by Amendment No. 1 Thereto, 

To Reduce From Six Months to Three 

Months the Period for Which a 

Company’s Average Global Market 

Capitalization Must Exceed the Levels 

Established by the Exchange’s Pure 

Valuation/Revenue Test 

January 30, 2008. 

I. Introduction 

On October 29, 2007, the New York 

Stock Exchange LLC (‘‘NYSE’’ or 


pwalker on PROD1PC71 with NOTICES
7022 Federal Register / Vol. 73, No. 25 / Wednesday, February 6, 2008 / Notices 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 56976 

(December 17, 2007), 72 FR 73055. 

4 15 U.S.C. 78f(b)(5). 

5 In approving this proposed rule change, the 

Commission has considered the proposed rule’s 

impact on efficiency, competition, and capital 

formation. See 15 U.S.C. 78c(f). 

6 15 U.S.C. 78s(b)(2). 

7 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission 

(‘‘Commission’’), pursuant to Section 

19(b)(1) of the Securities Exchange Act 

of 1934 (‘‘Act’’) 1 and Rule 19b–4 

thereunder,2 a proposed rule change to 

reduce from six months to three months 

the period for which the average global 

market capitalization of companies 

seeking to list on the Exchange must 

exceed the levels established by the 

Exchange’s ‘‘pure valuation/revenue’’

test contained in Section 102.01C of the 

Exchange’s Listed Company Manual 

(the ‘‘Manual’’). On December 14, 2007, 

the Exchange filed Amendment No. 1 to 

the proposed rule change. The proposed 

rule change, as modified by Amendment 

No. 1, was published for comment in 

the Federal Registeron December 26, 

2007.3 The Commission received no 

comments on the proposal. This order 

approves the proposed rule change, as 

amended. 

II. Description of the Proposal 

Section 102.01C of the Exchange’s 

Manual requires companies listing 

under the Exchange’s ‘‘pure valuation/ 

revenue’’ test to have a global market 

capitalization of $750 million. In the 

case of companies listing other than in 

connection with an initial public 

offering or a spin-off or upon emergence 

from bankruptcy, Section 102.01C 

provides that the market capitalization 

valuation will be determined on the 

basis of a six-month average. 

The Exchange now proposes to reduce 

from six months to three months the 

period over which prospective 

companies seeking to list on the 

Exchange must have had an average 

global market capitalization that meets 

the required level of $750 million. In 

addition, the Exchange proposes to 

amend the rule to specify that in 

considering the suitability for listing of 

a company pursuant to this standard, 

the Exchange will consider whether the 

company’s business prospects and 

operating results indicate that the 

company’s market capitalization value 

is likely to be sustained or increase over 

time. 

III. Discussion 

After careful review, the Commission 

finds that the proposed rule change, as 

amended, is consistent with the 

requirements of the Act and the rules 

and regulations thereunder applicable to 

a national securities exchange and, in 

particular, with Section 6(b)(5) of the 

Act,4 which requires, among other 

things, that the rules of a national 

securities exchange be 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.5

The Commission notes that the 

proposed rule change does not change 

the quantitative global market 

capitalization requirement under the 

Exchange’s ‘‘pure valuation/revenue’’

test. This requirement will remain at 

$750 million global market 

capitalization. Rather, the Exchange is 

shortening the time period over which 

the average global market capitalization 

of a prospective listed company must 

meet this level. The Commission notes 

that the proposed rule change requires 

the Exchange to look not only at the 

average three month market 

capitalization of the company but to 

also consider whether the company’s 

market capitalization is likely to be 

sustained or increase over time based on 

the company’s business prospects and 

operation results. The Commission 

therefore believes that the proposed rule 

change may allow the earlier listing of 

companies, but at the same time, it is 

designed to ensure that the Exchange 

does not list companies on the basis of 

a market capitalization valuation that is 

unlikely to be sustained. In this regard, 

the Commission expects that the 

Exchange will scrutinize companies to 

ensure that it will only list companies 

that should be able to continue to meet 

the market capitalization standard. 

IV. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,6 that the 

proposed rule change (SR–NYSE–2007–

98), as modified by Amendment No. 1, 

be, and hereby is, approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.7

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E8–2073 Filed 2–5–08; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–57236; File No. SR–NYSE–

2008–03] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Notice of 

Filing of Proposed Rule Change to 

Rescind Rule 97 (Limitation on 

Member’s Trading Because of Block 

Positioning) 

January 30, 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 

11, 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, II, and III below, which Items 

have been substantially 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 

NYSE proposes to rescind NYSE Rule 

97 (Limitation on Member’s Trading 

Because of Block Positioning). The text 

of the proposed rule change is available 

at NYSE, 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, 

NYSE included statements concerning 

the purpose of, and basis for, the 

proposed rule change. The text of these 

statements may be examined at the 

places specified in Item IV below. The 

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 

Through this filing, the Exchange 

seeks to rescind Exchange Rule 97. 

Exchange Rule 97 prevents a member 

organization that holds a long position 

in a security that resulted from a block 

transaction with a customer from 


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