Federal Register / Vol. 73, No. 200 / Wednesday, October 15, 2008 / Notices 61183 

11 17 CFR 200.30–3(a)(12). 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4 15 U.S.C. 78s(b)(3)(A)(iii). 

5 17 CFR 240.19b–4(f)(6). 

6See Securities Exchange Act Release No. 57323 

(February 13, 2008), 73 FR 9371 (February 20, 2008) 

(SR–NYSE–2008–09). 7See Securities Exchange Act Release No. 57826 

(May 15, 2008), 73 FR 29802 (May 22, 2008) (SR– 

NASDAQ–2007–001). 

8See Securities Exchange Act Release No. 58328 

(August 8, 2008), 73 FR 47247 (August 13, 2008) 

(SR–NYSE–2008–63). 

9 15 U.S.C. 78f(b)(5). 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Florence E. Harmon, 

Acting Secretary. 

[FR Doc. E8–24375 Filed 10–14–08; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–58732; File No. SR–NYSE– 

2008–99] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change by New York 

Stock Exchange LLC To Extend Until 

January 9, 2009, the Operation of 

Interim NYSE Rule 128 (‘‘Clearly 

Erroneous Executions for NYSE 

Equities’’) Which Permits the 

Exchange To Cancel or Adjust Clearly 

Erroneous Executions if They Rise Out 

of the Use or Operation of Any 

Quotation, Execution or 

Communication System Owned or 

Operated by the Exchange, Including 

Those Executions That Occur in the 

Event of a System Disruption or 

System Malfunction 

October 3, 2008. 

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

Securities Exchange Act of 1934 (the 

‘‘Act’’) 2 and Rule 19b–4 thereunder,3

notice is hereby given that on October 

1, 2008, New York Stock Exchange LLC 

(‘‘NYSE’’ or the ‘‘Exchange’’) filed with 

the Securities and Exchange 

Commission (the ‘‘Commission’’ or 

‘‘SEC’’) the proposed rule change as 

described in Items I and II below, which 

Items have been prepared by the selfregulatory organization. NYSE 

designated the proposed rule change as 

‘‘non-controversial’’ under Section 

19(b)(3)(A)(iii) of the Act 4 and Rule 

19b–4(f)(6) thereunder,5 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 extend 

until January 9, 2009, the operation of 

interim NYSE Rule 128 (‘‘Clearly 

Erroneous Executions for NYSE 

Equities’’) which permits the Exchange 

to cancel or adjust clearly erroneous 

executions if they arise out of the use or 

operation of any quotation, execution or 

communication system owned or 

operated by the Exchange, including 

those executions that occur in the event 

of a system disruption or system 

malfunction. 

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 the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to extend 

until January 9, 2009, the operation of 

interim NYSE Rule 128 (‘‘Clearly 

Erroneous Executions for NYSE 

Equities’’) which permits the Exchange 

to cancel or adjust clearly erroneous 

executions if they arise out of the use or 

operation of any quotation, execution or 

communication system owned or 

operated by the Exchange, including 

those executions that occur in the event 

of a system disruption or system 

malfunction. 

Prior to the implementation of NYSE 

Rule 128 on January 28, 2008,6 the 

NYSE did not have a rule providing the 

Exchange with the authority to cancel or 

adjust clearly erroneous trades of 

securities executed on or through the 

systems and facilities of the NYSE. 

In order for the NYSE to be consistent 

with other national securities exchanges 

which have some version of a clearly 

erroneous execution rule, the Exchange 

is drafting an amended clearly 

erroneous rule which will accommodate 

such other exchanges but will be 

appropriate for the NYSE market model. 

The NYSE notes that the Commission 

approved an amended clearly erroneous 

execution rule for Nasdaq in May 2008.7

On July 28, 2008, the Exchange filed 

with the SEC a request to extend the 

operation of interim Rule 128 until 

October 1, 2008 8 in order to review the 

provisions of Nasdaq’s clearly erroneous 

rule and to consider integrating similar 

standards into its own amendment to 

Rule 128. The Exchange has not 

finalized its review of Nasdaq’s 

amended rule and the possible proposed 

amendment of Rule 128 and is, 

therefore, requesting to extend the 

operation of interim Rule 128 until 

January 9, 2009. Prior to January 9, 

2009, the Exchange intends to file a 

19b–4 rule change amending interim 

Rule 128, which, if approved by the 

SEC, will be effective after January 9, 

2009. 

2. Statutory Basis 

The Exchange believes the proposed 

rule change is consistent with and 

furthers the objectives of Section 6(b)(5) 

of the Act,9 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. 

As articulated more fully above, the 

proposed rule would place the NYSE on 

equal footing with other national 

securities exchanges. This will promote 

the integrity of the market and protect 

the public interest, since it would 

permit all exchanges to cancel or adjust 

clearly erroneous or trades when such 

trades occur, rather than canceling them 

on all other markets, but leaving them 

standing on only one market. 

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. 


jlentini on PROD1PC65 with NOTICES
61184 Federal Register / Vol. 73, No. 200 / Wednesday, October 15, 2008 / Notices 

10 15 U.S.C. 78s(b)(3)(A). 

11 17 CFR 240.19b–4(f)(6). 

12 17 CFR 240.19b–4(f)(6)(iii). 

13 In fact, the Commission notes, under Rule 19b– 

4(f)(6)(iii), the ‘‘consistent with the protection of 

investors and public interest’’ standard applies only 

to the Commission’s waiver of the 30-day operative 

delay. Rule 19b–4(f)(6)(iii) requires a self-regulatory 

organization to give the Commission written notice 

of its intent to file 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. 

14For 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). 15 17 CFR 200.30–3(a)(12). 

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) 10 of the Act and Rule 19b– 

4(f)(6) 11 thereunder. The proposed rule 

change effects a change that (A) Does 

not significantly affect the protection of 

investors or the public interest; (B) does 

not impose any significant burden on 

competition; and (C) by its terms, does 

not become operative for 30 days after 

the date of the filing, or such shorter 

time as the Commission may designate 

if consistent with the protection of 

investors and the public interest; 

provided that the self-regulatory 

organization has given 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 believes that good 

cause, consistent with the provisions of 

Rule 19b–4(f)(6), exists to justify making 

the rule change immediately effective. 

Because the proposed rule is based on 

a rule that has been previously 

approved by the Commission, and 

because the proposed rule would in any 

event be operative only until a more 

robust and market-appropriate rule was 

implemented, the NYSE believes that 

the proposed rule is non-controversial. 

Moreover, the NYSE believes that the 

absence of such a rule in an automated 

and fast-paced trading environment 

poses a danger to the integrity of the 

markets and the public interest, and that 

this exigency justifies filing the rule for 

immediate effectiveness rather than 

using the regular Rule 19b–2 process, 

which would require the Exchange to 

continue without the protection of the 

proposed rule until the expiration of the 

prescribed time periods for notice, 

comment and approval. In contrast, 

immediate effectiveness of the proposed 

rule will immediately and timely enable 

the NYSE to cancel or adjust clearly 

erroneous trades that may present a risk 

to the integrity of the equities markets 

and all related markets. The proposed 

rule will also allow the Exchange to 

protect customers and the public 

interest, and to continue to provide 

economically efficient execution of 

securities transactions. 

The NYSE also requests that the 

Commission waive the five-day period 

for notice of intent to file this proposed 

rule change, and the 30-day period 

before the rule becomes operative, both 

of which are prescribed by Rule 19b– 

4(f)(6), but which may be waived 

pursuant to Rule 19b–4(f)(6)(iii) 12 if 

such action is consistent with the 

protection of investors and public 

interest.13 The Exchange believes that 

waiver of these time periods so that the 

rule may be immediately operative are 

consistent with the protection of 

investors and the public interest for the 

reasons described above. 

The Commission believes that 

waiving the 30-day operative delay will 

allow the Exchange to continue to 

immediately and timely cancel or adjust 

trades that it determines to be clearly 

erroneous under Rule 128. The 

Commission believes that the extension 

of NYSE Rule 128 until January 9, 2009 

will allow the Exchange to continue to 

apply the rule without interruption and 

is consistent with the protection of 

investors and the public interest. The 

Commission hereby designates the 

proposal as operative upon filing.14 The 

Commission has determined to waive 

the five-day prefiling period in this case. 

At any time within 60 days of the 

filing of the proposed rule change, the 

Commission may summarily abrogate 

the 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 

rule-comments@sec.gov. Please include 

File Number SR–NYSE–2008–99 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–2008–99. 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–2008–99 and should 

be submitted on or before November 5, 

2008. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.15

Florence E. Harmon, 

Acting Secretary. 

[FR Doc. E8–24369 Filed 10–14–08; 8:45 am] 

BILLING CODE 8011–01–P 

SMALL BUSINESS ADMINISTRATION 

Reporting and Recordkeeping 

Requirements Under OMB Review 

AGENCY: Small Business Administration. 

ACTION: Notice of Reporting 

Requirements Submitted for OMB 

Review. 

SUMMARY: Under the provisions of the 

Paperwork Reduction Act (44 U.S.C. 

Chapter 35), agencies are required to 


jlentini on PROD1PC65 with NOTICES