Document ID: SEC-2008-1471-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NYSE Alternext US LLC
Posted Date: 2008-10-27T04:00Z

[Federal Register: October 27, 2008 (Volume 73, Number 208)]
[Notices]               
[Page 63754-63756]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr27oc08-104]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-58824; File No. SR-NYSEALTR-2008-02]

 
Self-Regulatory Organizations; NYSE Alternext US LLC; Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change by NYSE 
Alternext U.S. LLC To Amend NYSE Alternext Equities Rule 123D(4) To 
Expand That Rule's Trading Halt Condition To Cover All Structured 
Products

October 21, 2008.
    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 October 17, 2008, NYSE Alternext US LLC (``NYSE Alternext'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``Commission'') the proposed rule change as described in Items I, II, 
and III below, which Items have been prepared by the Exchange. 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\ 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 NYSE Alternext Equities Rule 123D(4) 
to expand the application of the trading halt condition provided by 
that rule to include all NYSE Alternext listed structured products. The 
text of the proposed rule change is available on the Exchange's Web 
site (http://www.amex.com), at the Exchange's Office of the Secretary, 
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 these statements may be examined at 
the places specified in Item IV below. NYSE Alternext 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 Change

1. Purpose
    On September 30, 2008, NYSE Euronext (the parent company of two 
other exchanges--New York Stock Exchange LLC (``NYSE'') and NYSE Arca, 
Inc.), completed its acquisition of the Exchange (the ``Merger''). In 
connection with the Merger, NYSE Alternext will relocate all equities 
trading currently conducted on or through the Amex legacy trading 
systems and facilities located at 86 Trinity Place, New York, New York, 
to the NYSE trading facilities and systems located at 11 Wall Street, 
New York, New York (the ``NYSE Alternext Trading Systems''), which will 
be operated by the NYSE on behalf of NYSE Alternext (the ``Equities 
Relocation''). In anticipation of the Equities Relocation, the Exchange 
has adopted the NYSE's trading rules as the ``NYSE Alternext Equities 
Rules,'' to be implemented at the time of the Equities Relocation.\3\
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    \3\ Securities Exchange Act Release No. 58705 (October 1, 2008), 
73 FR 58995 (October 8, 2008) (SR-Amex-2008-63).

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[[Page 63755]]

    NYSE Euronext has made a business decision to discontinue the 
listing and trading of exchange traded funds (``ETFs'') and structured 
products on the Exchange at the time of the Equities Relocation and to 
encourage the issuers of those securities to transfer their listings to 
NYSE Arca. As such, the NYSE Alternext Equities Rules do not provide 
for the trading of ETFs and structured products and the NYSE Alternext 
Trading Systems will not be equipped for such trading. However, some of 
the issuers of ETFs and structured products may not have completed the 
transfer of their listed securities to NYSE Arca prior to the Equities 
Relocation. It would be prohibitively expensive to keep open the 
trading floor at 86 Trinity Place to facilitate the trading of a 
limited number of ETFs and structured products pending their transfer 
to NYSE Arca. To address this problem as it relates to ETFs, the 
Exchange included Rule 123D(4) in the NYSE Alternext Equities Rules. 
Rule 123D(4) provides for a non-regulatory trading halt condition to 
permit the halting of trading of ETFs on the Exchange to facilitate the 
closing of the 86 Trinity Place trading floor in connection with the 
Equities Relocation. Orders in ETFs subject to the trading halt 
condition are to be routed to NYSE Arca for execution.
    Rule 123D(4) as adopted does not apply to structured products that 
remain listed on the Exchange at the time of the Equities Relocation. 
As the same problem arises in connection with the continued trading of 
structured products on the Exchange after the Equities Relocation as 
arises with ETFs, the Exchange proposes to extend the application of 
Rule 123D(4) to any structured products that remain listed at that 
time. In order for Rule 123D(4) to comprehensively apply to all ETFs 
and structured products, the Exchange proposes to extend its 
application to securities listed pursuant to Sections 104 (Bonds and 
Debentures), 106 (Currency and Index Warrants), or 107 (Other 
Securities) of the Exchange's Company Guide or pursuant to Exchange 
Rules 1000-AEMI and 1001 et seq. (Portfolio Depositary Receipts), 
1000A-AEMI and 1001A et seq. (Index Fund Shares), 1000B et seq. 
(Managed Fund Shares), 1200-AEMI and 1201 et seq. (Trading of Trust 
Issued Receipts), 1200A-AEMI and 1201A et seq. (Commodity-Based Trust 
Shares), 1400 et seq. (Trading of Paired Trust Shares), 1500-AEMI and 
1501 et seq. (Trading of Partnership Units), and 1600 et seq. (Trading 
of Trust Units).
2. Statutory Basis
    The basis under the Act for this proposed rule change is the 
requirement under Section 6(b)(5) \4\ that an Exchange have rules that 
are designed 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. In particular, the Exchange believes 
that the proposed amendment facilitates transactions in securities 
because it will make it easier for issuers of structured products 
listed on the Exchange to ensure the continuity of trading of their 
securities after the closing of the Exchange's trading floor at 86 
Trinity Place and pending transfer of the listing of those securities 
to NYSE Arca.
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    \4\ 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

    The Exchange has neither solicited nor received written comments on 
the proposed rule change.

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

    The proposed rule change has taken effect upon filing pursuant to 
Section 19(b)(3)(A) of the Act.\5\
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    \5\ 15 U.S.C. 78s(b)(3)(A).
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    The Exchange asserts that the proposed rule change (i) will not 
significantly affect the protection of investors or the public 
interest, (ii) will not impose any significant burden on competition, 
and (iii) will not become operative for 30 days after the date of this 
filing, or such shorter time as the Commission may designate if 
consistent with the protection of investors and the public interest.
    The Exchange believes that the proposed rule change is 
noncontroversial because it will make it easier for issuers of 
structured products listed on the Exchange to ensure the continuity of 
trading of their securities after the closing of the 86 Trinity Place 
trading floor and pending transfer of the listing of those securities 
to NYSE Arca. The Exchange believes that the proposed amendment to Rule 
123D(4) does not raise any novel regulatory issues as it simply extends 
the trading halt condition to structured products under the same 
circumstances in which it applies to ETFs.
    The Exchange provided the Commission with 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 the filing of the proposed rule change as required by 
Rule 19b-4(f)(6).\6\
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    \6\ 17 C.F.R. 240.19b-4(f)(6).
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    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-NYSEALTR-2008-02 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-NYSEALTR-2008-02. 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

[[Page 63756]]

available for inspection and copying in the Commission's Public 
Reference Room, on official business days between the hours of 10 a.m. 
and 3 p.m. Copies of the filing also will be available for inspection 
and copying at the principal office 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 Number SR-NYSEALTR-2008-02 and should 
be submitted on or before November 17, 2008.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\7\
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    \7\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Acting Secretary.
 [FR Doc. E8-25528 Filed 10-24-08; 8:45 am]

BILLING CODE 8011-01-P