Document ID: SEC-2008-0740-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: New York Stock Exchange LLC
Posted Date: 2008-05-27T04:00Z

[Federal Register: May 27, 2008 (Volume 73, Number 102)]
[Notices]               
[Page 30434-30436]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr27my08-102]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-57841; File No. SR-NYSE-2008-26]

 
 Self-Regulatory Organizations; New York Stock Exchange LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Amend NYSE Rule 412 To Conform to FINRA Incorporated Versions of NYSE 
Rule 412

May 20, 2008.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on April 2, 2008, the New 
York Stock Exchange LLC (``NYSE'') filed with the Securities and 
Exchange Commission (``Commission'') the proposed rule

[[Page 30435]]

change as described in Items I and II below, which Items have been 
substantially prepared by the NYSE. The NYSE filed the proposed rule 
change pursuant to Section 19(b)(3)(A) of the Act \2\ and Rule 19b-
4(f)(6) \3\ thereunder so that the proposal was effective upon filing 
with the Commission. 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. 78s(b)(3)(A).
    \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 Change

    The NYSE proposes to amend NYSE Rule 412 (Customer Account Transfer 
Contracts) to make the time frames in the rules for validating or 
taking exception to an instruction to transfer a customer's securities 
account consistent with the time frames in the Automated Customer 
Account Transfer Service (ACATS) of the National Securities Clearing 
Corporation (``NSCC'') and to make the NYSE's version of Rule 412 
consistent with the recently approved amendments filed by the Financial 
Industry Regulatory Authority, Inc. (``FINRA'') to its incorporated 
version of NYSE Rule 412.\4\
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    \4\ Supra note 5 and accompanying text.
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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 NYSE 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 NYSE has prepared summaries, set forth in sections 
(A), (B), and (C) below, of the most significant parts of such 
statements.\5\
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    \5\ The Commission has modified the text of the summaries 
prepared by the NYSE.
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(A) Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    On July 30, 2007, NASD and NYSE Regulation, Inc. consolidated their 
member firm regulation operations into a combined organization, 
FINRA.\6\ Pursuant to FINRA's new regulatory responsibilities, FINRA 
amended FINRA's incorporated NYSE Rule 412 (Customer Account Transfer 
Contracts) to make the time frames in the rule for validating or taking 
exception to an instruction to transfer a customer's securities account 
consistent with those of NSCC's ACATS.\7\ In order to maintain Rule 412 
as a Common Rule, the NYSE is proposing to amend its version of Rule 
412 to conform it to the recently approved changes to FINRA's 
incorporated version of NYSE Rule 412.
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    \6\ Pursuant to Rule 17d-2 under the Exchange Act, NYSE, NYSE 
Regulation, Inc., and NASD entered into an agreement (the ``17d-2 
Agreement'') to reduce regulatory duplication for firms that are 
members of FINRA and also members of NYSE on or after July 30, 2007 
(``Dual Members''), by allocating to FINRA certain regulatory 
responsibilities for selected NYSE rules. The 17d-2 Agreement 
includes a list of all of those rules (``Common Rules'') for which 
FINRA has assumed regulatory responsibilities. See Securities and 
Exchange Act Release No. 56148 (July 26, 2007), 72 FR 42146 (August 
1, 2007) (Notice of Filing and Order Approving and Declaring 
Effective a Plan for the Allocation of Regulatory Responsibilities). 
The Common Rules are NYSE rules that FINRA has incorporated into its 
rulebook. Securities Exchange Act Release No. 56417 (July 26, 2007), 
72 FR 42166 (August 1, 2007) (Notice of Filing and Order Granting 
Accelerated Approval of Proposed Rule Change to Incorporate Certain 
NYSE Rules Relating to Member Firm Conduct) [SR-NASD-2007-054]. 
Paragraph 2(b) of the 17d-2 Agreement sets forth procedures 
regarding proposed changes by either NYSE or FINRA to the substance 
of any of the Common Rules.
    \7\ Securities and Exchange Act Release No. 56677 (October 19, 
2007), 72 FR 60699 (October 25, 2007) [SR-FINRA-2007-05].
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2. Statutory Basis
    The NYSE believes the proposed rule change is consistent with and 
furthers the objectives of Section 6(b)(5) of the Act,\8\ 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.
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    \8\ 15 U.S.C. 78f(b)(5).
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(B) Self-Regulatory Organization's Statement on Burden on Competition

    The NYSE does not believe that the proposed rule change will have 
any impact or impose any burden on competition.

(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

    Because the foregoing proposed rule change does not: (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 (i.e., 
May 2, 2008), or such shorter time as the Commission may designate if 
consistent with the protection of investors and the public interest, it 
has become effective pursuant to Section 19(b)(3)(A) of the Act \9\ and 
Rule 19b-4(f)(6) thereunder.\10\ 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.
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    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 17 CFR 240.19b-4(f)(6). The Commission is waiving the five-
day pre-filing notice requirement in order for the NYSE to ensure 
that Rule 412 maintains its status as a Common Rule under the 17d-2 
Agreement.
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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-2008-26 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 20549-1090.

All submissions should refer to File Number SR-NYSE-2008-26. 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

[[Page 30436]]

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. The text of the proposed rule change is available at 
the NYSE, the Commission's Public Reference Room, and http://
apps.nyse.com/commdata/pub19b4.nsf/docs/
E40ACA575EFD517085257420005CC603/$FILE/NYSE-2008-26.pdf. 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-2008-26 and should be 
submitted on or before June 17, 2008.

    For the Commission by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
Florence E. Harmon,
Deputy Secretary.
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    \11\ 17 CFR 200.30-3(a)(12).
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[FR Doc. E8-11723 Filed 5-23-08; 8:45 am]

BILLING CODE 8010-01-P