Document ID: SEC-2011-0768-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: New York Stock Exchange LLC
Posted Date: 2011-06-03T04:00Z

[Federal Register Volume 76, Number 107 (Friday, June 3, 2011)]
[Notices]
[Page 32248]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-13755]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-64561; File No. SR-NYSE-2011-15]

Self-Regulatory Organizations; New York Stock Exchange LLC; Order 
Granting Approval of Proposed Rule Change To Modify the Initial Trading 
Market Value for Debt Securities

I. Introduction

    On April 1, 2011, 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 to modify the initial trading market value 
requirements for certain debt securities. The proposed rule change was 
published in the Federal Register on April 14, 2011.\3\ The Commission 
received no comments on the proposal. This order grants approval of the 
proposed rule change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 64287 (April 8, 
2011), 76 FR 21086 (``Notice'').
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II. Description of the Proposal

    The Exchange's proposal would amend NYSE Rule 1401 to modify the 
initial trading market value requirement for ``Debt Securities'' from 
$10,000,000 to $5,000,000. The term ``Debt Securities'' includes any 
unlisted note, bond, debenture or evidence of indebtedness that is: (1) 
Statutorily exempt from the registration requirements of Section 12(b) 
of the Act, or (2) eligible to be traded under a Commission exemptive 
order. NYSE Rules 1400 and 1401 set forth requirements for trading Debt 
Securities.
    Currently, NYSE Rule 1401 requires that Debt Securities traded on 
the NYSE have an outstanding aggregate market value or principal amount 
of no less than $10,000,000 on the date that trading commences. In the 
Notice, the Exchange cited a number of corporate retail note programs 
offered by issuers whose equity securities are listed on the Exchange 
that involve issuances of $5,000,000 or more but less than $10,000,000 
in principal. The Exchange proposed to reduce the required initial 
outstanding aggregate market value to $5,000,000 in order to be able to 
list such securities. The Exchange believes that expanding the number 
of Debt Securities that could be traded on the Exchange's platform 
would offer investors greater transparency and choice with respect to 
secondary market trading in such securities.

III. Discussion and Commission's Findings

    The Commission has carefully reviewed the proposed rule change and 
finds that it is consistent with the requirements of Section 6 of the 
Act \4\ and the rules and regulations thereunder applicable to a 
national securities exchange.\5\ In particular, the Commission finds 
that the proposal is consistent with Section 6(b)(5) of the Act,\6\ 
which requires, among other things, that the Exchange's rules be 
designed to prevent fraudulent and manipulative acts and practices, 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 Commission believes that the proposal is reasonably 
designed to expand exchange trading for debt securities with a smaller 
initial float, and thereby to increase transparency and price 
competition for investors.
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    \4\ 15 U.S.C. 78f.
    \5\ In approving this proposed rule change, the Commission has 
considered the proposed rule's impact on efficiency, competition, 
and capital formation. See 15 U.S.C. 78c(f).
    \6\ 17 U.S.C. 78f(b)(5).
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IV. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\7\ that the proposed rule change (SR-NYSE-2011-15) be, and it 
hereby is, approved.
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    \7\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\8\
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    \8\ 17 CFR 200.30-3(a)(12).
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    Dated: May 27, 2011.
Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-13755 Filed 6-2-11; 8:45 am]
BILLING CODE 8011-01-P