Document ID: SEC-2007-1206-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: NYSE Arca, Inc.
Posted Date: 2007-08-28T04:00Z

[Federal Register: August 28, 2007 (Volume 72, Number 166)]
[Notices]               
[Page 49342-49344]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr28au07-156]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-56300; File No. SR-NYSEArca-2007-63; SR-NYSEArca-2007-
64]

 
Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by NYSE Arca, Inc. Relating to 
Conforming Amendments Involving the Deletion of Rule 10a-1 Under the 
Securities Exchange Act of 1934

August 22, 2007.
    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 June 29, 2007, NYSE Arca, Inc. (the ``Exchange''), through its 
wholly owned subsidiary NYSE Arca Equities, Inc. (``NYSE Arca 
Equities''), filed with the Securities and Exchange Commission (the 
``Commission'') the proposed rule changes as described in Items I and 
II

[[Page 49343]]

below, which Items have been prepared by the Exchange. The Exchange 
filed the proposals as ``non-controversial'' rule changes under Rule 
19b-4(f)(6) under the Act,\3\ which rendered the proposals effective 
upon filing with the Commission. The Commission is publishing this 
notice to solicit comments on the proposed rule changes from interested 
persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 17 CFR 240.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Changes

A. NYSE Arca Equities Rule 4.5(e), Rule 7.16, Rule 7.18, and Rule 7.37

    The Exchange proposes to make certain conforming amendments to NYSE 
Arca Equities Rule 4.5(e), Rule 7.16, Rule 7.18, and Rule 7.37 to 
address the impending deletion of Rule 10a-1 under the Securities 
Exchange Act of 1934. These conforming ``housekeeping'' changes will 
replace references to Rule 10a-1 and, where appropriate, add references 
to relevant rules in Regulation SHO. The text of the proposed rule 
change is available at the Exchange, on the Exchange's Web site at 
http://www.nyse.com, and at the Commission's Public Reference Room.

B. NYSE Arca Rule 4.5(f) and Rule 11.8

    The Exchange also proposes to make certain conforming amendments to 
NYSE Arca Rule 4.5(f) and Rule 11.8 to address the impending deletion 
of Rule 10a-1 under the Act. These conforming ``housekeeping'' changes 
will replace references to Rule 10a-1 and, where appropriate, add 
references to relevant rules in Regulation SHO. The text of the 
proposed rule change is available at the Exchange, on the Exchange's 
Web site at http://www.nyse.com, and at the Commission.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Changes

    In its filing with the Commission, the self-regulatory organization 
included statements concerning the purpose of and basis for the 
proposed rule changes and discussed any comments it received on the 
proposed rule changes. The text of these statements may be examined at 
the places specified in Item IV below. The self-regulatory organization 
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 Changes

1. Purpose
    a. NYSE Arca Equities Rule 4.5(e), Rule 7.16, Rule 7.18, and Rule 
7.37
    On June 28, 2007, the SEC released final rules deleting the price 
test of Rule 10a-1 and amending Regulation SHO to prohibit any SRO from 
having a price test in place. The Exchange proposes to make certain 
conforming amendments to NYSE Arca Equities Rule 4.5(e), Rule 7.16, 
Rule 7.18, and Rule 7.37 to address the deletion of Rule 10a-1. This 
rule filing proposes to delete the Exchange's current price test 
restrictions and remove requirements relating to marking sell orders 
``exempt'' based on exceptions set forth in Rule 10a-1. In addition, 
other conforming and ``housekeeping'' changes are also proposed to 
replace references to Rule 10a-1 in certain Exchange rules and, where 
appropriate, add references to relevant rules in Regulation SHO.
    b. NYSE Arca Rule 4.5(f) and Rule 11.8
    On June 28, 2007, the SEC released final rules deleting the price 
test of Rule 10a-1 and amending Regulation SHO to prohibit any SRO from 
having a price test in place. The Exchange proposes to make certain 
conforming amendments to NYSE Arca Rule 4.5(f) and Rule 11.8 to address 
the deletion of Rule 10a-1. This rule filing proposes to delete the 
Exchange's current price test restrictions and remove requirements 
relating to marking sell orders ``exempt'' based on exceptions set 
forth in Rule 10a-1. In addition, other conforming and ``housekeeping'' 
changes are also proposed to replace references to Rule 10a-1 in 
certain Exchange rules and, where appropriate, add references to 
relevant rules in Regulation SHO.
2. Statutory Basis
    The Exchange believes the proposed rule changes are consistent with 
section 6(b) of the Act \4\ in general and further the objectives of 
section 6(b)(5) \5\ in particular in that they are designed to prevent 
fraudulent and manipulative acts and practices, to promote just and 
equitable principals 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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    \4\ 15 U.S.C. 78f(b).
    \5\ 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 changes 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 Changes Received From Members, Participants or Others

    Written comments on the proposed rule changes were neither 
solicited nor received.

III. Date of Effectiveness of the Proposed Rule Changes and Timing for 
Commission Action

    The foregoing proposed rule changes have become effective upon 
filing pursuant to section 19(b)(3)(A) of the Act \6\ and Rule 19b-
4(f)(6) \7\ thereunder because they do not (i) Significantly affect the 
protection of investors or the public interest, (ii) impose any 
significant burden on competition, and (ii) become operative within 30 
days after the date of the filing.
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    \6\ 15 U.S.C. 78s(b)(3)(A).
    \7\ 17 CFR 19b-4(f)(6).
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    The Exchange has asked the Commission to waive the 30-day operative 
delay. The Commission believes such waiver is consistent with the 
protection of investors and the public interest because it would allow 
the proposed rule changes to be effective on July 6, 2007, the 
compliance date for the amendments to Rule 10a-1 and Regulation SHO.\8\ 
For this reason, the Commission designates the proposals to be 
operative upon filing with the Commission.
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    \8\ For purposes only of waiving the 30-day pre-operative 
period, the Commission has considered the impact of the proposed 
rule changes on efficiency, competition and capital formation. 15 
U.S.C. 78c(f).
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    At any time within 60 days of the filing of the proposed rule 
changes, the Commission may summarily abrogate such rule changes 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 
changes are consistent with the Act. Comments may be submitted by any 
of the following methods:

[[Page 49344]]

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 No. SR-NYSEArca-2007-63 or SR-NYSEArca-2007-64 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.

All submissions should refer to File No. SR-NYSEArca-2007-63 or SR-
NYSEArca-2007-64. The 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 
changes that are filed with the Commission, and all written 
communications relating to the proposed rule changes 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 offices 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 available publicly. All submissions should refer to 
File No. SR-NYSEArca-2007-63 or SR-NYSE-2007-64 and should be submitted 
on or before September 18, 2007.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E7-16957 Filed 8-27-07; 8:45 am]

BILLING CODE 8010-01-P