Document ID: SEC-2008-0031-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: New York Stock Exchange LLC
Posted Date: 2008-01-07T05:00Z

[Federal Register: January 7, 2008 (Volume 73, Number 4)]
[Notices]               
[Page 1252-1253]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr07ja08-66]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-57072; File No. SR-NYSE-2007-125]

 
Self-Regulatory Organizations; New York Stock Exchange LLC; 
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change 
Relating to Exchange Rule 107A (Registered Competitive Market Makers) 
and Exchange Rule 110 (Competitive Traders)

December 31, 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 December 31, 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 and 
II below, which Items have been substantially 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 NYSE proposes to extend for three months the moratorium related 
to the qualification and registration of Registered Competitive Market 
Makers (``RCMMs'') pursuant to Exchange Rule 107A and Competitive 
Traders (``CTs'') pursuant to Exchange Rule 110. The text of the 
proposed rule change is available on the NYSE's Web site (http://www.nyse.com
), at the NYSE, 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 Exchange included statements 
concerning the purpose of, and basis for, the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item IV below. The Exchange 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 proposes to extend for three months the current 
moratorium related to the qualification and registration of RCMMs 
pursuant to Exchange Rule 107A and CTs pursuant to Exchange Rule 110.
    On September 22, 2005, the Exchange filed SR-NYSE-2005-63 \3\ with 
the Commission proposing to implement a moratorium on the qualification 
and registration of new RCMMs and CTs (``Moratorium''). The purpose of 
the Moratorium was to allow the Exchange an opportunity to review the 
viability of RCMMs and CTs in the NYSE HYBRID MARKETSM (``Hybrid 
Market'').\4\
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    \3\ See Securities Exchange Act Release No. 52648 (October 21, 
2005), 70 FR 62155 (October 28, 2005) (SR-NYSE-2005-63).
    \4\ See Securities Exchange Act Release No. 53539 (March 22, 
2006), 71 FR 16353 (March 31, 2006) (SR-NYSE-2004-05) (establishing 
the Hybrid Market).
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    The phased-in implementation of the Hybrid Market required the 
Exchange to extend the Moratorium an additional four times over the 
next eighteen (18) months.\5\ During each phase of the Hybrid Market, 
new system functionality was included in the operation of Exchange 
systems and new data was generated. As a result, the Exchange was 
unable to make an informed decision as to the viability of RCMMs and 
CTs in the Hybrid Market.
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    \5\ See Securities Exchange Act Release Nos. 54140 (July 13, 
2006), 71 FR 41491 (July 21, 2006) (SR-NYSE-2006-48); 54985 
(December 21, 2006), 72 FR 171 (January 3, 2007) (SR-NYSE-2006-113); 
55992 (June 29, 2007), 72 FR 37289 (July 9, 2007) (SR-NYSE-2007-57); 
and 56556 (September 27, 2007), 72 FR 56421 (October 3, 2007) (SR-
NYSE-2007-86).
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    The Exchange is now proposing to extend the Moratorium, as 
amended,\6\ for an additional three months to March 31, 2008 in order 
to finalize its determination as to the roles of RCMMs and CTs in the 
Exchange's Hybrid Market and to formally submit a proposal to the 
Commission outlining these roles. The Exchange has continued to review 
the data related to RCMMs and CTs generated during the phasing in of 
the Hybrid Market.
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    \6\ See Securities Exchange Act Release No.53549 (March 24, 
2006), 71 FR 16388 (March 31, 2006) (SR-NYSE-2006-11) (making 
certain amendments to the Moratorium).
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    The Exchange is currently undergoing significant developments in 
its technology and market model. Accordingly, the Exchange requests 
additional time to decide what roles, if any, RCMMs and CTs should 
perform in the current Hybrid Market.
    The Exchange will issue an Information Memo announcing the 
extension of the Moratorium.
2. Statutory Basis
    The basis under the Act \7\ for this proposed rule change is the 
requirement under section 6(b)(5) \8\ 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. 78a.
    \8\ 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

    Because the proposed rule change: (i) Does not significantly affect 
the protection of investors or the public interest; (ii) does not 
impose any significant burden on competition; and (iii) does not become 
operative for 30 days after the date of the filing, or such shorter 
time as the Commission may designate if consistent with the protection 
of investors and the public interest, the proposed rule change has 
become effective pursuant to section

[[Page 1253]]

19(b)(3)(A) of the Act \9\ and Rule 19b-4(f)(6) thereunder.\10\
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    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 17 CFR 240.19b-4(f)(6). Pursuant to Rule 19b-4(f)(6)(iii) 
under the Act, the Exchange is required to give the Commission 
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 filing of the proposed 
rule change, or such shorter time as designated by the Commission. 
The Exchange has requested that the Commission waive the 5-day pre-
filing notice requirement. The Commission has determined to waive 
this requirement to allow the Exchange to file its proposal to 
extend the Moratorium, which expires on December 31, 2007, without 
delay.
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    A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the 
Act \11\ normally does not become operative for 30 days after the date 
of its filing. However, Rule 19b-4(f)(6)(iii) \12\ permits the 
Commission to designate a shorter time if such action is consistent 
with the protection of investors and the public interest. The NYSE has 
requested that the Commission waive the 30-day operative delay. The 
Commission believes that waiving the 30-day operative delay is 
consistent with the protection of investors and the public interest 
because it would allow the Moratorium to continue without interruption 
so that the Exchange may have additional time to make a final 
determination as to the future roles of RCMMs and CTs in the Hybrid 
Market, if any, and to file with the Commission a proposed rule change 
outlining such roles. For these reasons, the Commission designates that 
the proposed rule change become operative immediately.\13\
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    \11\ 17 CFR 240.19b-4(f)(6).
    \12\ 17 CFR 240.19b-4(f)(6)(iii).
    \13\ For purposes only of waiving the 30-day operative delay, 
the Commission has considered the proposed rule's impact on 
efficiency, competition, and capital formation. 15 U.S.C. 78c(f).
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    At any time within 60 days of the filing of the proposed rule 
change, the Commission may summarily abrogate the 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-NYSE-2007-125 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-2007-125. 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, 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-
NYSE-2007-125 and should be submitted on or before January 28, 2008.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\14\
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    \14\ 17 CFR 200.30-3(a)(12).
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Nancy M. Morris,
Secretary.
 [FR Doc. E7-25654 Filed 1-4-08; 8:45 am]

BILLING CODE 8011-01-P