Document ID: SEC-2007-1730-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: New York Stock Exchange, LLC
Posted Date: 2007-12-19T05:00Z

[Federal Register: December 19, 2007 (Volume 72, Number 243)]
[Notices]               
[Page 71990-71991]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr19de07-138]                         

[[Page 71990]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-56953; File No. SR-NYSE-2007-115]

 
Self-Regulatory Organizations; New York Stock Exchange LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
Relating to Rule 2 (``Member,'' ``Membership,'' ``Member Firm,'' etc.)

December 12, 2007.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given 
that on December 12, 2007, the New York Stock Exchange LLC (``NYSE'' 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 substantially prepared by the 
NYSE. The NYSE has designated the proposed rule change as one concerned 
solely with the administration of the Exchange pursuant to Section 
19(b)(3)(A)(iii) of the Act,\3\ and Rule 19b-4(f)(3) thereunder,\4\ 
which renders the proposal 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\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \4\ 17 CFR 240.19b-4(f)(3).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The NYSE proposes to extend to June 30, 2008, the operative date of 
NYSE Rule 2 requirement that NYSE-only member organizations apply for 
and be approved as a member of the Financial Industry Regulatory 
Authority, Inc. (``FINRA'').

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 these 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 aspects of such statements.

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

1. Purpose
    The Exchange is proposing to extend to June 30, 2008, the grace 
period for NYSE-only member organizations to apply for and be approved 
as a FINRA member, as required by NYSE Rule 2.
    In connection with the consolidation of the National Association of 
Securities Dealers, Inc. and NYSE Regulation, Inc. member firm 
regulation operations into FINRA which closed on July 30, 2007, the 
Exchange amended NYSE Rule 2 to require NYSE member organizations to 
also be FINRA members.\5\ In connection with that rule change, the 
Commission approved a 60-day grace period within which NYSE-only member 
organizations must apply for and be approved for FINRA membership. In 
that rule filing, NYSE-only member organizations were defined as those 
member organizations that were not NASD members as of the date of the 
closing of the FINRA transaction. This grace period began on October 
12, 2007, the date of Commission approval of the Exchange's rule 
filing. In furtherance of the consolidation, FINRA adopted NASD IM-
1013-1 to enable eligible NYSE member organizations to become FINRA 
members though an expedited process (``FINRA Waive-in application 
process'').\6\
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    \5\ See Securities Exchange Act Release No. 56654 (October 12, 
2007), 72 FR 59129 (October 18, 2007) (SR-NYSE-2007-67).
    \6\ See Securities Exchange Act Release No. 56653 (October 12, 
2007), 72 FR 59127 (October 18, 2007) (SR-NASD-2007-56).
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    As of December 12, 2007, all but two of the former NYSE-only member 
organizations have applied for and been approved as FINRA members. The 
two remaining member organizations have unique member qualification 
issues and are ineligible to participate in the FINRA Waive-in 
application process. Accordingly, the NYSE proposes to extend the grace 
period to June 30, 2008, to provide time for those issues to be 
resolved.
2. Statutory Basis
    The basis under the Act for this proposed rule change is the 
requirement under Section 6(b)(5) \7\ of the Act 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.
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    \7\ 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 foregoing proposed rule change has become effective pursuant to 
Section 19(b)(3)(A)(iii) \8\ of the Act and Rule 19b-4(f)(3) thereunder 
\9\ because it is concerned solely with the administration of the 
Exchange. At any time within 60 days of the filing of such 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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    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 17 CFR 240.19b-4(f)(3).
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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-2007-115 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-2007-115. This 
file number should be included on the subject line if e-mail is used. 
To help the

[[Page 71991]]

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, 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 office of the NYSE. 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-2007-115 and should be submitted on 
or before January 9, 2008.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E7-24534 Filed 12-18-07; 8:45 am]

BILLING CODE 8011-01-P