59014 Federal Register / Vol. 73, No. 196 / Wednesday, October 8, 2008 / Notices 

5 In order to account for the risk of unknown 

positions, Risk Management performs a look-back 

calculation to estimate shortened settlement 

volumes and values. The shortened settlement 

component is added to a members’ Clearing Fund 

requirement for 21 days after each shortened 

settlement occurs. 

6Most Index Receipts are created and redeemed 

in units of 50,000. In other words, if a member were 

to create six units it would receive 300,000 shares 

of the Index Receipt securities. 

7The CNS day-cycle is typically run at 11:30 a.m. 

Component securities that are not CNS-eligible 

would be processed through the Balance Order 

Accounting Operation. 

8 If Clearing Fund payments are not timely 

collected on T+1, creates and redeems would not 

be processed. 

9 In addition, the transaction must be submitted 

for recording by an Index Receipt agent by such 

cutoff time as designated by the NSCC (pursuant to 

Procedure II). 

10Submission of next-day settling creates and 

redeems will be required by such cut-off time on 

T. 

11The ‘‘20-day look back provision’’ provides for 

a charge based on the average of the member’s three 

highest aggregate calculated charges for daily 

‘‘Specified (shortened cycle) Activity’’ measured 

over the most recent 20 settlement days. 

12 15 U.S.C. 78q–1(b)(3)(F). 

13 15 U.S.C. 78q–1. 

14 15 U.S.C. 78s(b)(2). 

15 In approving the proposed rule change, the 

Commission considered the proposal’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. 

of T. NSCC then collects Clearing Fund 

payments at 10 a.m. on T+1. NSCC is 

revising its processing to address the 

timing of the NSCC trade guarantee, 

trade processing, and Clearing Fund 

provisions for such shortened 

settlement Index Receipts. 

Because next day settling trades are 

effectively guaranteed in the CNS night 

cycle prior to margining, NSCC 

currently uses a process that takes that 

uncertainty into consideration by 

collecting a ‘‘look-back’’ premium in the 

Clearing Fund calculation.5 Leveraging 

this existing practice for next-day 

settlement of creates and redeems 

would be cost-prohibitive based on the 

large number of ‘‘in kind’’ shares 6 that 

are exchanged in this process. 

NSCC is therefore delaying the 

processing of next day settling creates 

and redeems and their underlying 

components until the CNS day cycle on 

T+1.7 These transactions would be 

reported on the Second Supplemental 

Consolidated Trade Summary that is 

generally released mid-day. Delayed 

processing should allow NSCC ample 

time to collect Clearing Fund payments 

prior to guaranteeing the transactions 

and thus obviate the need for the lookback Clearing Fund premium.8

In addition, NSCC plans to implement 

a new fee for shortened-cycle creates 

and redeems as more fully described 

below. 

Therefore, NSCC proposes to amend 

its Rules as follows to provide for 

settlement of index receipt transactions 

on T+1 or T+2 on an optional basis: 

(a) Amendment of Addendum K 

regarding guarantee of next day settling 

index receipts 

NSCC is amending Addendum K to 

provide that settlement of creates and 

redeems, including the underlying 

components, on a T+1 basis (including 

T+2 settling as-of creates and redeems 

submitted on T+1) will be guaranteed 

on Settlement Date when NSCC 

determines to complete processing for 

those items in the day cycle (normally, 

11:30 a.m.), provided that the 

transaction is not removed from 

processing as described below.9

(b) Amendment of Procedure II to allow 

for settlement on a shorter than T+3 

basis 

NSCC is amending Procedure II, 

Section H to provide that: (i) The Index 

Receipt agent may elect for settlement of 

the creates and redeems on a T+1 or T+2 

basis; (ii) as-of Index Receipt creates and 

redeems will only be accepted if 

submitted by the cut-off time designated 

by NSCC;10 (iii) NSCC reserves the right 

to remove Index Receipt transactions 

from processing in the event that the 

applicable member has not met a 

Clearing Fund call on settlement date; 

and (iv) next day settling creates and 

redeems (including T+2 settling as-of 

creates and redeems submitted on T+1) 

will be posted to the Second 

Supplemental Consolidated Trade 

Summary and processed in the day 

cycle of the CNS Accounting Operation. 

(c) Amendment of Procedure XV 

(Clearing Fund Formula) 

NSCC is amending Procedure XV to 

provide that creates and redeems of 

Index Receipts and the underlying 

components, will not be subject to the 

‘‘20-day look back provision.’’ 11

(d) Amendment of Addendum A (Fee 

Structure) 

The current fee for regular-way (T+3) 

settlement of creates and redeems is $30 

per create and redeem. To offset 

additional costs associated with 

shortened settlement processing, NSCC 

plans to implement a new fee of $50.00 

per create and redeem with a shortened 

settlement cycle. 

C. Implementation timeframe 

NSCC intends to implement the 

changes set forth in this filing in the 

third quarter of 2008. Members will be 

advised of the implementation date 

through issuance of NSCC Important 

Notices. 

III. Discussion 

The Commission finds that the 

proposed rule change is consistent with 

the requirements of the Act and the 

rules and regulations thereunder 

applicable to a registered clearing 

agency. In particular, the Commission 

believes the proposal is consistent with 

the requirements of Section 

17A(b)(3)(F),12 which, among other 

things, requires that the rules of a 

clearing agency are designed to remove 

impediments to and perfect the 

mechanisms of a national system for the 

prompt and accurate clearance and 

settlement of securities transactions. 

The Commission finds that the 

proposed rule change, which enhances 

the processing of exchange-traded 

funds, is consistent with those statutory 

obligations. 

IV. Conclusion 

On the basis of the foregoing, the 

Commission finds that the proposal is 

consistent with the requirements of the 

Act and in particular with the 

requirements of Section 17A of the 

Act 13 and the rules and regulations 

thereunder. 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,14 that the 

proposed rule change (File No. SR– 

NSCC–2008–07) be, and hereby is, 

approved.15

For the Commission by the Division of 

Trading and Markets, pursuant to delegated 

authority.16

Florence E. Harmon, 

Acting Secretary. 

[FR Doc. E8–23761 Filed 10–7–08; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–58702; File No. SR–NSX– 

2008–16] 

Self-Regulatory Organizations; 

National Stock Exchange, Inc.; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change To Amend 

NSX Rules To Provide for a Minimum 

Execution Quantity Instruction on 

Certain Pegged Zero Display Reserve 

Orders 

October 1, 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 


jlentini on PROD1PC65 with NOTICES
Federal Register / Vol. 73, No. 196 / Wednesday, October 8, 2008 / Notices 59015 

September 19, 2008, National Stock 

Exchange, Inc. (‘‘NSX’’ 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 

comment 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 is proposing to amend 

NSX Rules to allow ETP Holders the 

option of submitting a minimum 

execution quantity requirement on any 

Midpoint or Market Peg Zero Display 

Reserve Order resting in the NSX Book. 

The text of the proposed rule change 

is below. Proposed new language is in 

italics. Material proposed to be deleted 

is enclosed in brackets. 

RULES OF NATIONAL STOCK 

EXCHANGE, INC. 

CHAPTER XI 

Trading Rules 

* * * * * 

Rule 11.11. Orders and Modifiers 

Users may enter into the System the 

types of orders listed in this Rule 11.11, 

subject to the limitations set forth in this 

Rule or elsewhere in these Rules. 

(a)–(b) No change. 

(c) Other Types of Orders and Order 

Modifiers 

(1) No change. 

(2) Reserve Order. A limit order with 

a portion of the quantity displayed 

(‘‘display quantity’’) and with a reserve 

portion of the quantity (‘‘reserve 

quantity’’) that is not displayed. 

(A) A User may enter a Reserve Order 

with zero display quantity, in which 

case the Reserve Order will be known as 

a ‘‘Zero Display Reserve Order.’’ The 

price of a Zero Display Reserve Order 

may be set (‘‘pegged’’) to track the buyside of the Protected BBO, the sell-side 

of the Protected BBO, or the midpoint 

of the Protected BBO. A pegged Zero 

Display Reserve Order which tracks the 

inside quote of the opposite side of the 

market is defined as a Market Peg and 

a pegged Zero Display Reserve Order 

that tracks the midpoint is defined as a 

Midpoint Peg. A pegged Zero Display 

Reserve Order may have an optional 

limit price (‘‘Cap’’) beyond which the 

order shall not be executed. 

(B) For Market Peg and Midpoint Peg 

Zero Display Reserve Orders, a User 

may enter an optional minimum 

transaction quantity instruction of at 

least a round lot for an execution 

(hereinafter ‘‘Minimum Execution 

Quantity’’). Orders with the Minimum 

Execution Quantity instruction will not 

execute unless the minimum quantity 

can be satisfied. However, if the residual 

shares of a Zero Display Reserve Order 

with a Minimum Execution Quantity 

instruction is less than the Minimum 

Execution Quantity on the order, the 

order may be executed even if the 

resulting execution is an odd lot. 

([B]C) A Zero Display Reserve Order, 

pegged or otherwise, may be designated 

as a Post Only Order by a User. If a Zero 

Display Reserve Order is not designated 

as a Post Only Order and is entered 

using the Order Delivery mode of 

interaction described in Rule 11.13(b)(2) 

and the order is immediately marketable 

upon entry into the System, the order 

will have its mode of order interaction 

converted to Automatic Execution as 

described in Rule 11.13(b)(1). A Zero 

Display Reserve Order with a Minimum 

Execution Quantity instruction will be 

deemed a Post Only Order regardless of 

whether the order is designated as a 

Post Only Order. 

([C]D) Zero Display Reserve Orders 

will not be eligible for routing to away 

trading centers pursuant to Rule 

11.15(a)(ii). 

(3)–(4) No change. 

(5) Post Only Order. A limit order that 

is to be posted on the Exchange and not 

routed away to another trading center. 

(A) No change. 

(B) A Post Only Order that is a Zero 

Display Reserve Order and which would 

interact immediately with a contra-side 

round lot order will: 

(i) execute against a contra-side round 

lot order if the contra-side order is a 

Zero Display Reserve Order that is not 

designated as a Post Only Order. Upon 

execution, the contra-side Zero Display 

Reserve Order (which was not 

designated as a Post Only Order) will be 

deemed as taking liquidity from the Post 

Only Order that is a Zero Display 

Reserve Order and be liable for the 

applicable fee for taking liquidity that is 

set forth in the NSX [BLADE] Fee and 

Rebate Schedule even if the contra-side 

Zero Display Reserve Order was placed 

in the NSX Book prior to the Post Only 

Order that is a Zero Display Reserve 

Order; 

(ii) not execute against a contra-side 

round lot order if (x) the contra-side 

order is a displayed order that is already 

contained in the NSX Book or (y) the 

contra-side order is another Post Only 

Order that is a Zero Display Reserve 

Order that is already contained in the 

NSX Book. The Post Only Order that is 

a Zero Display Reserve Order will 

instead be placed in the NSX Book. 

(6)–(9) No change. 

(d) No change. 

* * * * * 

Rule 11.14. Priority of Orders 

(a) Ranking. Orders of Users shall be 

ranked and maintained in the NSX Book 

based on the following priority: 

(1) No Change. 

(2) Where orders to buy (or sell) are 

made at the same price, the order clearly 

established as the first entered into the 

System at such particular price shall 

have precedence at that price, up to the 

number of shares of stock specified in 

the order, provided that the priority 

between displayed and Reserve orders is 

set forth in subsection (4) below. A 

cancel and replace of an order will 

result in a new timestamp and change 

in time priority. 

(3) No Change. 

(4) The displayed quantity of a 

Reserve Order shall have time priority 

as of the time of display. If the 

displayed quantity of the Reserve Order 

is decremented such that 99 shares or 

fewer would be displayed, the displayed 

portion of the Reserve Order shall be 

refreshed for (i) the original displayed 

quantity, or (ii) the entire reserve 

quantity, if the remaining reserve 

quantity is smaller than the original 

displayed quantity. After the refresh, the 

displayed portion of the Reserve Order 

shall have time priority as of the time 

of the refresh. The reserve quantity of a 

Reserve Order shall have no time 

priority against other displayed orders 

at the same price until displayed. If all 

displayed orders and displayed portions 

of Reserve Orders at a given price are 

executed, and following such execution 

any marketable contra-side orders 

remain outstanding, then such contraside orders shall be executed against the 

reserve portions of Reserve Orders at 

such price based on the time priority as 

determined by this paragraph (4). For 

purposes of the preceding sentence, a 

Zero Display Reserve Order without a 

Minimum Execution Quantity 

instruction will be deemed to have a 

displayed portion equal to one round 

lot. A Zero Display Reserve Order with 

a Minimum Execution Quantity 

instruction will be deemed to have a 

displayed portion equal to its Minimum 

Execution Quantity for the first pass, 

and for each additional pass, will be 

deemed to have a displayed portion 

equal to one round lot. Following 

satisfaction of the marketable contraside orders, the NSX Book will be 

refreshed. 

(b) No Change. 

* * * * * 


jlentini on PROD1PC65 with NOTICES
59016 Federal Register / Vol. 73, No. 196 / Wednesday, October 8, 2008 / Notices 

3While the minimum quantity for a Minimum 

Execution Quantity order is a round lot, mixed lots 

are permitted. 

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

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

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 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 is proposing to amend 

Exchange Rule 11.11 to allow ETP 

Holders the option of submitting a 

minimum round lot execution 

instruction on certain Zero Display 

Reserve Orders posting in the NSX 

Book. Under current Rule 11.11(c)(2), 

Zero Display Reserve Orders may be 

entered with either a limit price or with 

a ‘‘peg’’, which, at the ETP Holder’s 

discretion is pegged to the buy-side, 

sell-side or midpoint of the Protected 

Best Bid or Offer (‘‘PBBO’’). 

In this proposal, NSX proposes to 

enhance its Zero Display Reserve Order 

functionality to allow ETP Holders 

seeking to post Zero Display Reserve 

Orders pegged to track the inside quote 

on the opposite side of the market 

(hereinafter ‘‘Market Peg’’) or the 

midpoint (hereinafter ‘‘Midpoint Peg’’) 

to stipulate a minimum transaction size 

of at least one round lot for an execution 

(hereinafter the ‘‘Minimum Execution 

Quantity’’).3

Any Midpoint or Market Peg order 

with a Minimum Execution Quantity 

instruction will be deemed a ‘‘Post 

Only’’ order, regardless of whether the 

order is designated as such. Thus, any 

Zero Display Reserve Order with a 

Minimum Execution Quantity 

instruction will never take liquidity 

from the NSX Book. 

A Zero Display Reserve Order with a 

Minimum Execution Quantity 

instruction may only be executed if the 

quantity is equal to or greater than the 

minimum quantity amount. Thus, if an 

order with the Minimum Execution 

Quantity instruction is posted in the 

NSX Book and eligible for matching, it 

will be allocated shares in the first 

matching pass in accordance with the 

minimum quantity amount. However, in 

any subsequent matching pass, these 

orders will be allocated shares in the 

same method as other Zero Display 

Reserve Orders with a deemed display 

of one round lot, according to its price 

and time priority under NSX Rule 

11.14(a). A chart reflecting the 

allocation method is reflected in 

Example 1 below. 

Example 1: 

BOOK

Time Bid Display Reserve Min Ex 

Qty 

T1 .................................................................... Market Peg ..................................................... 0 2000 0 

T2 .................................................................... Mdpt Peg ........................................................ 0 5000 500 

T3 .................................................................... Mdpt Peg ........................................................ 0 3000 0 

T4 .................................................................... 9.80 ................................................................ 100 0 ........................

NBBO 10 X 10.10—INBOUND MARKET

SELL OF 3000 

Pass 1–20 .............. T1 2,000 @ 10.10 

(100 each pass) 

10.05 

Pass 21 .................. T2 500 @ 10.05 

T3 100 @ 10.05 

Pass 22 .................. T2 100 @ 10.05 

T3 100 @ 10.05 

Pass 23 .................. T2 100 @ 10.05 

T3 100 @ 10.05 

Zero Display Reserve Orders with a 

Minimum Execution Quantity 

instruction will not execute unless the 

minimum quantity required can be 

satisfied. In the event that following a 

partial execution the residual order 

quantity is less than the Minimum 

Execution Quantity, the Minimum 

Execution Quantity will be ignored and 

the order may be executed, even if the 

resulting execution is an odd lot. In 

addition, as with other Zero Display 

Reserve Order features, the Minimum 

Execution Quantity instruction may be 

modified by entering a cancel/replace of 

the Zero Display Reserve Order. 

However, in this case, a new timestamp 

will be applied. 

Finally, the Exchange proposes a 

technical change to conform Rule 

11.11(c)(5)(B)(i) to the revised name of 

the NSX Fee and Rebate Schedule. 

Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the provisions of Section 6(b) of the 

Act,4 in general, and Section 6(b)(5) of 

the Act,5 in particular, which requires, 

among other things, 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 feature proposed in 

this filing promotes the foregoing 

objectives by facilitating executions 

with optional minimum quantity 

thresholds. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will impose 

any inappropriate burden on 

competition. 

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 

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 

this filing, or such shorter time as the 

Commission may designate if consistent 

with the protection of investors and the 


jlentini on PROD1PC65 with NOTICES
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