Document ID: SEC-2008-1531-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NYSE Arca, Inc.
Posted Date: 2008-11-13T05:00Z

[Federal Register: November 13, 2008 (Volume 73, Number 220)]
[Notices]               
[Page 67243-67244]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr13no08-90]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-58899; File No. SR-NYSEArca-2008-116]

 
Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by NYSE Arca, Inc. Amending 
Exchange Rule 6.39--Securities Accounts of Market Makers

November 5, 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 November 3, 2008, NYSE Arca, Inc. (``NYSE Arca'' 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 self-regulatory 
organization. The Commission is publishing this notice to solicit 
comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend Exchange Rule 6.39--Securities 
Accounts of Market Makers. The text of the proposed rule change is 
attached as Exhibit 5, is available on the Exchange's Web site at 
www.nyse.com, at the Exchange's principal office and at 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 the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The purpose of this filing is to amend Rule 6.39 by modifying the 
terms under which a clearing firm reports trade information to the 
Exchange on behalf of a Market Maker.
    Presently, with respect to transactions to be cleared into all 
accounts carried for Market Makers, each clearing firm shall, on the 
business day following order entry date report to the Exchange every 
executed order entered by the Market Maker for the purchase or sale of 
a security underlying options traded on the Exchange, as well as 
opening and closing positions in all such securities held in each 
account.
    The Exchange does, on occasion, find the need to review Market 
Maker order records in conjunction with an investigation, inquiries 
regarding a specific trade, or a routine examination. However, since 
this is not information that the Exchange typically uses on a daily 
basis, there is no need for the Exchange to collect such information, 
on a daily basis. Requiring this information to be reported on a daily 
basis, instead of ``upon request'' creates an unnecessary burden on 
Market Makers, clearing firms and the Exchange alike.
    The Exchange hereby proposes to amend Rule 6.39 by removing the 
obligation for a clearing firm to report such trades on a daily basis, 
and instead require the firms to report such trades only upon request 
of the Exchange. Supplying the Exchange with trade information, when 
requested instead of on a daily basis, is consistent with the 
requirements at both the International Securities Exchange (``ISE'') 
\4\ and the Boston Options Exchange (``BOX'').\5\
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    \4\ See ISE Rule 807(b)--Reports of Orders.
    \5\ See BOX Trading Rules Chapter VI Sec. 7(b)--Reports of 
Orders.
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2. Statutory Basis
    This rule change is designed merely to create a more efficient 
mechanism for clearing firms to report market maker trade information 
to the Exchange. NYSE Arca believes that the proposed rule change is 
consistent with Section 6(b) of the Act \6\ in general, and furthers 
the objectives of Section 6(b)(5) of the Act \7\ in particular, because 
it is

[[Page 67244]]

designed to prevent fraudulent and manipulative acts and practices, to 
promote just and equitable principles of trade, to foster cooperation 
and coordination with persons engaged in facilitating transactions in 
securities, and to remove impediments to and perfect the mechanism of a 
free and open market and a national market system.
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    \6\ 15 U.S.C. 78f (b).
    \7\ 15 U.S.C. 78f (b)(5).
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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

    Pursuant to Section 19(b)(3)(A) \8\ of the Act and Rule 19b-4(f)(6) 
\9\ thereunder, NYSE Arca has designated this proposed rule change as 
one that does not:
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    \8\ 15 U.S.C. Sec.  78s(b)(3)(A).
    \9\ 17 CRF 240.19b-4(f)(6).
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    (i) Significantly affect the protection of investors or the public 
interest;
    (ii) Impose any significant burden on competition; and
    (iii) Become operative for 30 days from the date on which it was 
filed, or such shorter time as the Commission may designate, if 
consistent with the protection of investors and the public interest.
    The Exchange provided the Commission with written notice of its 
intent to file this proposed rule change at least five business days 
prior to the date of the 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.

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-NYSEArca-2008-116 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-NYSEArca-2008-116. 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 Section, 100 F Street, 
NE., Washington, DC 20549-1090. Copies of the filing will also be 
available for inspection and copying at NYSE Arca's principal office 
and on its Internet Web site at http://www.nyse.com. 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-NYSEArca-2008-116 and should 
be submitted on or before December 4, 2008.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-26885 Filed 11-12-08; 8:45 am]

BILLING CODE 8011-01-P