Document ID: SEC-2007-1437-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: New York Stock Exchange LLC
Posted Date: 2007-10-15T04:00Z

[Federal Register: October 15, 2007 (Volume 72, Number 198)]
[Notices]               
[Page 58344-58345]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr15oc07-80]                         

-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-56621; File No. SR-NYSE-2007-94]

 
Self-Regulatory Organizations; New York Stock Exchange LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
and Amendment No. 1 Thereto To Amend NYSE Rule 70.30 Relating to the 
Definition of a Crowd

October 5, 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 September 28, 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 NYSE. On 
October 4, 2007, the Exchange filed Amendment No. 1 to the proposed 
rule change. The Exchange filed the proposal pursuant to Section 
19(b)(3)(A) of the Act \3\ and Rule 19b-4(f)(6) 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, as amended, from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The NYSE proposes to amend Exchange Rule 70.30 to define the Crowd 
as the rooms on the Exchange Trading Floor (``Floor'') that contain 
active posts/panels where Floor brokers are able to conduct business. 
The text of the proposed rule change is available at the Exchange, on 
the Exchange's Web site at http://www.nyse.com, 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 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 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
    Through this filing, NYSE proposes to amend Exchange Rule 70.30, 
which sets forth the definition of a Crowd. The Exchange seeks to 
define the Crowd as the rooms on the Floor that contain active posts/
panels where Floor brokers are able to conduct business.
    Currently, a Crowd is defined as one of the three trading zones 
located on the Floor where Floor brokers are able to conduct business 
at each post/panel within the Crowd.\5\ The Main Room and Garage each 
constitute a separate Crowd. The third Crowd consists of the current 
Blue Room and the Extended Blue Room (``EBR''). It was believed that 
defining the Crowd in this manner best facilitated the essential 
interaction among Floor participants and between Floor brokers and 
orders in the Display Book[supreg] System.
---------------------------------------------------------------------------

    \5\ See Securities Exchange Act Release No. 55316 (February 20, 
2007), 72 FR 8825 (February 27, 2007) (SR-NYSE-2007-14).
---------------------------------------------------------------------------

    As the Exchange has gained experience operating its Hybrid Market, 
certain practical considerations make it necessary for the Exchange to 
modify its rules. Based on its experience, the Exchange seeks to amend 
the definition of a Crowd.\6\
---------------------------------------------------------------------------

    \6\ Telephone conversation on October 4, 2007, between Deanna 
Logan, Director, Office of the General Counsel, Exchange, and David 
Liu, Assistant Director, Division of Market Regulation, Commission.
---------------------------------------------------------------------------

    The Exchange is currently in the process of consolidating its Floor 
operations.\7\ At present, the Exchange operates four rooms that make 
up the Floor (i.e., the Main Room, the Garage, the Blue Room, and the 
EBR).\8\ The trading floor consolidation plan calls for the closing of 
the Blue Room and the EBR. The specialist firms and the floor brokerage 
firms that currently occupy the Blue Room and the EBR will be relocated 
to the Main Room and the Garage. This consolidation will significantly 
reduce the physical area where Floor brokers will be conducting 
business.
---------------------------------------------------------------------------

    \7\ The Exchange states that it anticipates that the 
consolidation of the Floor will be completed no later than November 
2007.
    \8\ In February 2007, the Exchange closed the operation of a 
fifth trading room located at 30 Broad Street.
---------------------------------------------------------------------------

    It is anticipated that the consolidation of the Exchange's Floor 
operation will be accomplished by first moving the posts/panels located 
in the EBR and the Blue Room to new locations in the Main Room and the 
Garage. Until the relocation of the posts/panels from the EBR and Blue 
Room is complete, Floor broker booths will remain in the EBR and the 
Blue Room. Upon completion of the relocation of the posts/panels in the 
EBR and the Blue Room, the Exchange will commence moving Floor broker 
booths located in the EBR and the Blue Room into new locations in the 
Main Room and the Garage. During this transition period, to end no 
later than December 15, 2007, Floor brokers will be considered part of 
the Crowd and permitted to electronically represent orders from the EBR 
and the Blue Room.
    The Exchange believes that the reduction of the physical areas that 
constitute the Floor and the increase of electronic trading warrant 
amending the definition of the Crowd. As such, NYSE proposes to amend 
Exchange Rule 70.30 to define the Crowd as the rooms on the Floor that 
contain active posts/panels where Floor brokers are able to conduct 
business. The Exchange submits that the proposed amendment to the Rule 
accurately identifies the areas where the essential interaction among 
Floor participants and between Floor brokers and orders in the Display 
Book[supreg] System occur. Accordingly, pursuant to the proposal, a 
Floor broker will be considered to be in the Crowd when he or she is 
physically present in one of the aforementioned rooms.

[[Page 58345]]

2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act \9\ in general, and with Section 6(b)(5) 
of the Act \10\ in particular, in that it is designed to prevent 
fraudulent and manipulative acts and practices, to promote just and 
equitable principles of trade, to foster cooperation and coordination 
with persons engaged in facilitating transactions in securities, to 
remove impediments to and perfect the mechanism of a free and open 
market and a national market system.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78(f)(b).
    \10\ 15 U.S.C. 78(f)(b)(5).
---------------------------------------------------------------------------

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 forgoing rule change does not: (1) Significantly affect 
the protection of investors or the public interest; (2) impose any 
significant burden on competition; and (3) become operative for 30 days 
after the date of this filing, or such shorter time as the Commission 
may designate, it has become effective pursuant to Section 19(b)(3)(A) 
of the Act \11\ and Rule 19b-4(f)(6) thereunder.\12\ As required under 
Rule 19b-4(f)(6)(iii),\13\ 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 filing of the proposed rule 
change, or such shorter time as designated by the Commission.
---------------------------------------------------------------------------

    \11\ 15 U.S.C. 78s(b)(3)(A).
    \12\ 17 CFR 240.19b-4(f)(6).
    \13\ 17 CFR 240.19b-4(f)(6)(iii).
---------------------------------------------------------------------------

    A proposed rule change filed under 19b-4(f)(6) normally may not 
become operative prior to 30 days after the date of filing. However, 
Rule 19b-4(f)(6)(iii) permits the Commission to designate a shorter 
time if such action is consistent with the protection of investors and 
the public interest. The Exchange 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. 
Specifically, the Commission believes that, given the Exchange's plan 
to consolidate its Floor operations, the proposed rule change would 
enable Floor brokers to promptly facilitate transactions from the 
physical areas on the Floor where business will ultimately be 
conducted. For this reason, the Commission designates the proposed rule 
change to be effective and operative upon filing with the 
Commission.\14\
---------------------------------------------------------------------------

    \14\ For the purposes only of waiving the 30-day operative 
delay, the Commission has considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
---------------------------------------------------------------------------

    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.\15\
---------------------------------------------------------------------------

    \15\ For purposes of calculating the 60-day period within which 
the Commission may summarily abrogate the proposed rule change, the 
Commission considers the period to commence on October 4, 2007, the 
date on which the Exchange filed Amendment No. 1.
---------------------------------------------------------------------------

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-2007-94 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-2007-94. 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, 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 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-2007-94 and should be 
submitted on or before November 5, 2007.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\16\
---------------------------------------------------------------------------

    \16\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Nancy M. Morris,
Secretary.
[FR Doc. E7-20214 Filed 10-12-07; 8:45 am]

BILLING CODE 8011-01-P