Federal Register / Vol. 73, No. 196 / Wednesday, October 8, 2008 / Notices 59017 

6 15 U.S.C. 78s(b)(3)(A). 

7 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6)(iii) requires a self-regulatory organization to 

provide the Commission with 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 fulfilled this requirement. 

8For purposes only of waiving the 30-day 

operative delay, the Commission has also 

considered the proposed rule’s effect on efficiency, 

competition, and capital formation. See 15 U.S.C. 

78c(f). 

9See Securities Exchange Act Release No. 56072 

(July 13, 2007), 72 FR 39867 (July 20, 2007), (SR– 

NYSEArca–2007–61) (adopting Mid-Point Passive 

Liquidity Order with minimum quantity; Securities 

Exchange Act Release No. 56790 (November 15, 

2007), 72 FR 65797 (November 23, 2007), (SR– 

NYSEArca–2007–113) (reducing Mid-Point Passive 

Liquidity Order’s minimum executable size from 

1000 to 100). 

10 15 U.S.C. 78s(b)(3)(C). 11 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b-4. 

public interest, the proposed rule 

change has become effective pursuant to 

Section 19(b)(3)(A) of the Act 6 and Rule 

19b–4(f)(6) 7 thereunder. 

A proposed rule change filed under 

Rule 19b–4(f)(6) normally does not 

become operative for 30 days after the 

date of filing. However, Rule 19b– 

4(f)(6)(iii) permits the Commission to 

designate a shorter time if such action 

is consistent with the protection of 

investors and the public interest. The 

Exchange requests that the Commission 

waive the 30-day operative delay. 

The Commission believes that 

waiving the 30-day operative delay is 

consistent with the protection of 

investors and the public interest.8

Previously, the Commission approved 

an order type similar to the one 

proposed,9 and this proposal does not 

raise any novel issues. For these 

reasons, the Commission designates the 

proposed rule change as operative upon 

filing. 

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.10

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–NSX–2008–16 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–NSX–2008–16. 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 the filing will also be available 

for inspection and copying at the 

principal office of the self-regulatory 

organization. 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–NSX– 

2008–16 and should be submitted on or 

before October 29, 2008. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Florence E. Harmon, 

Acting Secretary. 

[FR Doc. E8–23765 Filed 10–7–08; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–58708; File No. SR-NYSE– 

2008–92] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Notice of 

Filing and Immediate Effectiveness of 

a Proposed Rule Change To Extend 

the Operation of Reserve Orders on 

the Exchange to the Earlier of 

December 31, 2008 or the Date on 

Which the Commission Approves the 

Exchange’s Filing Pursuant to SR– 

NYSE–2008–46 

October 1, 2008. 

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

Securities Exchange Act of 1934 

(‘‘Act’’) 1 and Rule19b-4 thereunder,2

notice is hereby given that on 

September 29, 2008, New York Stock 

Exchange LLC (‘‘NYSE’’ or the 

‘‘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 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 extend the 

operation of Reserve Orders on the 

Exchange to the earlier of December 31, 

2008 or the date on which the 

Commission approves the Exchange’s 

filing pursuant to SR–NYSE–2008–46. 

The text of the proposed rule change is 

available at NYSE, http:// 

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 

Exchange 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 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. 


jlentini on PROD1PC65 with NOTICES
59018 Federal Register / Vol. 73, No. 196 / Wednesday, October 8, 2008 / Notices 

3See Securities Exchange Act Release No. 58184 

(July 17, 2008), 73 FR 42853 (July 23, 2008) (SR– 

NYSE–2008–46) (‘‘New Market Model filing’’). 

4See Securities Exchange Act Release No. 57688 

(April 18, 2008), 73 FR 22194 (April 24, 2008) (SR– 

NYSE–2008–30). The pilot initially operated in 100 

NYSE-traded securities. The Exchange subsequently 

filed with the Commission to expand the operation 

of the pilot to all NYSE-traded securities. See 

Securities Exchange Act Release No. 57792 (May 7, 

2008), 73 FR 27601 (May 13, 2008) (SR–NYSE– 

2008–36). 

5The Display Book system is an order 

management and execution facility. The Display 

Book system receives and displays orders to the 

specialists, contains the Book, and provides a 

mechanism to execute and report transactions and 

publish the results to the Consolidated Tape. The 

Display Book system is connected to a number of 

other Exchange systems for the purposes of 

comparison, surveillance, and reporting 

information to customers and other market data and 

national market systems. 

6 In the New Market Model, specialists will be 

replaced by ‘‘designated market makers’’ or 

‘‘DMMs’’. 

7See New Market Model filing, Securities 

Exchange Act Release No. 58184 (July 17, 2008), 73 

FR 42853 (July 23, 2008) (SR–NYSE–2008–46). 

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

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

10 17 CFR 240.19b–4(f)(6). 

11 17 CFR 240.19b–4(f)(6)(iii). In addition, Rule 

19b–4(f)(6)(iii) requires the self-regulatory 

organization to give the Commission 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. 

NYSE has satisfied this requirement. 

12 17 CFR 240.19b–4(f)(6)(iii). 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The New York Stock Exchange LLC 

(‘‘NYSE’’ or the ‘‘Exchange’’) proposes 

to amend NYSE Rule 13 to extend the 

operation of its Reserve Order pilot to 

the earlier of December 31, 2008 or the 

approval date of the Exchange’s New 

Market Model 3 pilot. 

Background 

Reserve Orders were approved by the 

Commission on April 18, 2008 4 and 

instituted on the Exchange on April 23, 

2008. Reserve Orders are limit orders 

available to all market participants that 

enable them to maintain non-displayed 

liquidity on the Exchange’s Display 

Book system (‘‘Display Book’’) for 

execution.5 A portion of the interest 

represented by a Reserve Order is 

published (displayed) when it is or 

becomes the Exchange best bid or offer, 

while the remaining interest is not 

displayed, i.e., is held in ‘‘reserve.’’ This 

reserved portion is used to replenish the 

displayed amount (which is required to 

be at least one round lot) when trades 

reduce or exhaust such displayed 

interest. Both displayed and reserve 

interest is available for automatic 

execution on the Exchange. With 

respect to the portion of Reserve Orders 

that is not displayed, this interest is 

available for execution only after all 

displayed interest at the Exchange bid 

or offer has been executed. 

Reserve Orders are also available for 

manual execution. While the majority of 

transactions on the Exchange are 

executed electronically, there are times 

when manual execution is required. In 

these situations, specialists seek 

information on the available interest at 

various price points to determine the 

appropriate price at which to complete 

the manual execution. As with reserve 

interest in a Floor broker’s agency 

interest file, information on reserve 

interest entered directly into Exchange 

systems through Reserve Orders will be 

made available to the specialist only in 

the aggregate at each price point for the 

express purpose of the specialist 

effecting a manual execution. The 

reserve interest is not distinguished 

from other interest available to be 

executed at a specific price point. 

Rather, Exchange systems display to the 

specialist the total number of shares 

available for execution at the price point 

and include reserve interest in the total 

number. In this manner such reserve 

interest will be available for trades that 

take place on the Floor of the Exchange 

that will not be conducted 

automatically. 

Extension of the Reserve Order Pilot 

The Exchange has proposed in the 

New Market Model filing to expand 

Reserve Orders to include a Minimum 

Display Reserve Order and a NonDisplayed Reserve Order. The latter type 

of reserve interest for all market 

participants would not have any of the 

order designated for display. The 

Exchange proposed to create the NonDisplayed Reserve Order for Off-Floor 

participants and provide Floor brokers 

and specialists 6 with equivalent 

functionality.7

The Reserve Order type currently 

operating on the Exchange has been 

accepted by the Exchange’s customer 

base and is currently being used 

actively. The Exchange believes that by 

providing all market participants with 

the ability to maintain non-displayed 

liquidity on the Display Book 

encourages market participants to post 

liquidity and thus offers Exchange 

customers additional opportunities for 

price improvement by expanding the 

interest available to execute against 

incoming orders at a single price. The 

Exchange therefore seeks to continue 

the pilot for Reserve Orders with a 

minimum display requirement until the 

earlier of December 31, 2008 or such 

time as the New Market Model filing is 

approved. 

2. Statutory Basis 

The Exchange believes the proposed 

rule change is consistent with and 

furthers the objectives of Section 

6(b)(5) 8 of the Act, 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 proposed rule change has become 

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

of the Act9 and Rule 19b–4(f)(6) 

thereunder10 because the foregoing 

proposed rule change: (1) Does not 

significantly affect the protection of 

investors or the public interest; (2) does 

not impose any significant burden on 

competition; and (3) by its terms, does 

not become operative for 30 days after 

the date of filing, or such shorter time 

as the Commission may designate if 

consistent with the protection of 

investors and the public interest. 

A proposed rule change filed under 

Rule 19b–4(f)(6) normally may not 

become operative prior to 30 days after 

the date of filing.11 However, Rule 19b– 

4(f)(6)(iii) 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 asked the Commission to 

waive the 30-day operative delay, as 

specified in Rule 19b–4(f)(6)(iii),12

which would make the rule change 

effective and operative upon filing. The 

Commission believes that waiving the 


jlentini on PROD1PC65 with NOTICES
Federal Register / Vol. 73, No. 196 / Wednesday, October 8, 2008 / Notices 59019 

13For purposes only of waiving the 30-day 

operative delay, the Commission has considered the 

proposed rule’s impact on efficiency, competition 

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

14 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 58290 

(August 1, 2008), 73 FR 46676 (August 11, 2008) 

(SR–NYSE–2008–70). 4See Securities Exchange Act Release No. 58284 

(August 1, 2008), 73 FR 46086 (August 7, 2008) 

(SR–Amex–2008–62) (‘‘Acquisition Proposal’’). 5Subsequently, NYSE Alternext will also relocate 

all options trading conducted on the 86 Trinity 

Trading Systems to 11 Wall Street and utilize a 

trading system based on the options trading system 

used by NYSE Arca, Inc. (‘‘Options Relocation,’’ 

and, together with the Equities Relocation, the 

‘‘Relocations’’). 

6See Securities Exchange Act Release No. 58265 

(July 30, 2008), 73 FR 46075 (August 7, 2008) (SR– 

Amex–2008–63) (‘‘NYSE Alternext Equities filing’’). 

In the NYSE Alternext Equities filing, NYSE 

Alternext also proposed to adopt rules governing 

member organizations that are closely modeled 

existing NYSE Rules. After the closing of the 

Mergers, there may be NYSE Alternext members or 

member organizations holding an 86 Trinity Permit 

that do not immediately qualify for membership 

under the new NYSE Alternext membership rules. 

Amex has proposed that any such member would 

automatically retain its membership and have a sixmonth grace period to meet the new membership 

requirements. The grace period would commence 

from the date the member receives an NYSE 

Alternext equities trading permit in exchange for a 

valid 86 Trinity Permit. 

30-day operative delay is consistent 

with the protection of investors and the 

public interest because the proposal is 

designed to extend the operation of the 

existing Reserve Order pilot without 

interruption. Extending the Reserve 

Order pilot would continue to enable 

off-Floor market participants to compete 

through their ability to maintain nondisplayed liquidity on the Exchange’s 

Display Book system. Accordingly, the 

Commission designates the proposed 

rule change effective and operative 

upon filing with the Commission.13

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–NYSE–2008–92 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–2008–92. 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 

should submit only information that 

you wish to make publicly available. All 

submissions should refer to File 

Number SR–NYSE–2008–92 and should 

be submitted on or before October 29, 

2008. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.14

Florence E. Harmon, 

Acting Secretary. 

[FR Doc. E8–23756 Filed 10–7–08; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–58706; File No. SR–NYSE– 

2008–70] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Order 

Granting Approval 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 

October 1, 2008. 

I. Introduction 

On July 30, 2008, the New York Stock 

Exchange LLC (‘‘NYSE’’ or ‘‘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 amending its rules governing 

membership in order to permit members 

in good standing of the American Stock 

Exchange LLC (‘‘Amex’’) to waive-in to 

NYSE after the acquisition of Amex by 

NYSE Euronext. The proposed rule 

change was published for comment in 

the Federal Register on August 11, 

2008.3 The Commission received no 

comments on the proposal. This order 

approves the proposed rule change. 

II. Description of the Proposal 

As described in a separate proposed 

rule change,4 on January 17, 2008, the 

Amex Membership Corporation and 

NYSE Euronext entered into an 

Agreement and Plan of Merger whereby, 

through a series of mergers (‘‘Mergers’’), 

NYSE Euronext will acquire Amex, and, 

as a result of these mergers, Amex will 

become a wholly-owned subsidiary of 

NYSE Group and be renamed NYSE 

Alternext US LLC. Immediately 

following the closing of the Mergers, 

those persons and entities who were 

authorized to trade on Amex before the 

closing of the Mergers will be deemed 

to have satisfied applicable qualification 

requirements necessary to trade on 

NYSE Alternext and will be issued 

trading permits (referred to as ‘‘86 

Trinity Permits’’) which will allow them 

to continue to trade on NYSE 

Alternext’s systems and facilities at 86 

Trinity Place, New York, New York (‘‘86 

Trinity Trading Systems’’). 

Subsequently, NYSE Euronext intends 

to relocate all equities trading 

previously conducted on the 86 Trinity 

Trading Systems to 11 Wall Street, New 

York, New York (the ‘‘Equities 

Relocation’’).5 The NYSE Alternext 

trading systems at 11 Wall Street will be 

operated by NYSE on behalf of NYSE 

Alternext. NYSE Alternext will also 

adopt a version of NYSE’s rules for 

trading equities on NYSE Alternext after 

the Equities Relocation.6 Holders of the 

86 Trinity Permits will be able to apply 

for an NYSE Alternext equities trading 


jlentini on PROD1PC65 with NOTICES