Document ID: SEC-2007-0201-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: NYSE Arca, Inc.
Posted Date: 2007-02-09T05:00Z

[Federal Register: February 9, 2007 (Volume 72, Number 27)]
[Notices]               
[Page 6308-6309]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr09fe07-96]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-55232; File No. SR-NYSEArca-2007-09]

 
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing 
of Proposed Rule Change Relating to Expanding the Business Activities 
of Archipelago Securities, L.L.C.

February 2, 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 January 25, 2007, NYSE Arca, Inc. (``NYSE Arca'' or the 
``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 substantially prepared by NYSE 
Arca. 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

    NYSE Arca is proposing to expand the business activities of 
Archipelago Securities, L.L.C. (``Archipelago Securities''), a 
registered broker-dealer, a member of several self-regulatory 
organizations including the NASD, and a facility of the Exchange. With 
this filing, the Exchange proposes that, in addition to providing an 
optional outbound order routing service for the Exchange, Archipelago 
Securities shall act as a marketing agent on behalf of NYSE Arca Tech 
100 Index (the ``Index'') and NYSE Arca Tech 100 ETF (the ``ETF'') and 
provide reasonable services attendant thereto.

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

    In its filing with the Commission, NYSE Arca 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 Arca 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
    In October 2001, the Commission approved Wave Securities, L.L.C. 
(``Wave'') to operate as a facility of the Exchange, as that term is 
defined in Section 3(a)(2) of the Act.\3\ At that time, the Commission 
authorized Wave to perform outbound router services for the Exchange, 
as a facility of the Exchange. Archipelago Securities succeeded Wave in 
the second quarter of 2003 and assumed certain of Wave's duties, 
including the outbound router function. The Commission subsequently re-
approved the outbound router function as a facility of the Exchange in 
connection with the acquisition of the Pacific Exchange, Inc. by 
Archipelago Holdings, Inc., the parent company of the Exchange.\4\ 
Pursuant to the Archipelago/PCX Acquisition Release, any expansion of 
the business activities of Archipelago Securities must be approved by 
the Commission. Most recently, the Commission approved the expansion of 
the business activities of Archipelago Securities to include, as a 
facility of the Exchange, the function of

[[Page 6309]]

routing option orders for members of the Exchange.\5\
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    \3\ See Securities Exchange Act Release No. 44983 (October 25, 
2001), 66 FR 55225 (November 1, 2001) (SR-PCX-00-25).
    \4\ See Securities Exchange Act Release No. 52497 (September 22, 
2005), 70 FR 56949 (September 29, 2005) (SR-PCX-2005-90) 
(``Archipelago/PCX Acquisition Release'').
    \5\ See Securities Exchange Act Release No. 54238 (July 28, 
2006), 71 FR 44758 (August 7, 2006) (SR-NYSEArca-2006-13).
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    With this filing, the Exchange proposes that Archipelago Securities 
act as a marketing agent on behalf of the Index and the ETF and provide 
reasonable services attendant thereto. This proposed business activity 
has no connection to Archipelago Securities' facility functions 
described above. As marketing agent for the Index and the ETF, 
Archipelago Securities will develop a marketing plan designed to 
advertise, promote, and increase public awareness of the Index and the 
ETF within the financial services industry and investing public 
(``Marketing Plan''), including: branding, promotional activities, 
development and design of marketing materials, collateral and media 
campaigns (i.e., electronic media, print media, Internet, etc.), and 
hosting a Web site for the ETF. Pursuant to this Marketing Plan, 
Archipelago Securities has drafted and expects to imminently execute an 
agreement with B.C. Zeigler and Company to provide the foregoing 
services for a period of one (1) year and renewable, upon agreement of 
both parties, annually thereafter.
2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) \6\ of the 
Act, in general, and furthers the objectives of Section 6(b)(8) \7\ of 
the Act, in particular, in that it does not impose any burden on 
competition not necessary or appropriate in furtherance of the purposes 
of the Act.
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    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f(b)(8).
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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

    Within 35 days of the date of publication of this notice in the 
Federal Register or within such longer period (i) as the Commission may 
designate up to 90 days of such date if it finds such longer period to 
be appropriate and publishes its reasons for so finding or (ii) as to 
which the Exchange consents, the Commission will:
    (A) By order approve such proposed rule change, or
    (B) institute proceedings to determine whether the proposed rule 
change should be disapproved.

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 No. SR-NYSEArca-2007-09 on the subject line.

Paper Comments

     Send paper comments in triplicate to Nancy M. Morris, 
Secretary, Securities and Exchange Commission, Station Place, 100 F 
Street, NE., Washington, DC 20549-1090.

All submissions should refer to File Number SR-NYSEArca-2007-09. 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 Room. Copies of such 
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-NYSEArca-2007-09 and should be submitted on or before 
March 2, 2007.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\8\
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    \8\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E7-2152 Filed 2-8-07; 8:45 am]

BILLING CODE 8010-01-P