Document ID: SEC-2008-0359-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NYSE Arca, Inc.
Posted Date: 2008-03-07T05:00Z

[Federal Register: March 7, 2008 (Volume 73, Number 46)]
[Notices]               
[Page 12492-12493]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr07mr08-137]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-57412; File No. SR-NYSEArca-2008-21]

 
 Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change Extending the 
SizeQuote Mechanism Pilot Program for a Period of One Year

March 3, 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 February 15, 2008, NYSE Arca, Inc. (``NYSE Arca'' 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 prepared substantially by NYSE Arca. NYSE Arca has designated 
the proposed rule change as one constituting a non-controversial rule 
change under Section 19(b)(3)(A)(iii) 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 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)(iii).
    \4\ 17 CFR 240.19b-4(f)(6).
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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 amend its rules in order to extend its 
SizeQuote Mechanism pilot program (``Pilot Program''),\5\ for a one-
year period ending February 15, 2009. The text of the proposed rule 
change is available at http://www.nyse.com, NYSE Arca, and the 
Commission's Public Reference Room.
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    \5\ See NYSE Arca Rule 6.47(f).
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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
    The purpose of this proposal is to extend, for a one year period, 
the Exchange's SizeQuote Pilot Program. The Pilot Program was initially 
established when the Exchange filed SR-PCX-2005-35.\6\ The Pilot 
Program was subsequently extended,\7\ and was set to expire on February 
15, 2008.
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    \6\ See Securities Exchange Act Release No. 51576 (April 19, 
2005), 70 FR 21488 (April 26, 2005).
    \7\See Securities Exchange Act Release No. 53315 (February 15, 
2006), 71 FR 9406 (February 23, 2006) (SR-PCX-2006-09); Securities 
Exchange Act Release No. 55312 (February 16, 2007), 72 FR 8827 
(February 27, 2007) (SR-NYSEArca-2007-16).
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    The Exchange has represented that at the completion of the Pilot 
Program, NYSE Arca would provide to the Commission a report summarizing 
the effectiveness of the SizeQuote program. While the Exchange believes 
that the SizeQuote Mechanism can be an effective tool for Floor Brokers 
to use while executing large size orders in open outcry, the mechanism 
has not been used frequently enough to supply sufficient evidence to 
evaluate the effectiveness of the Pilot Program. In order to allow for 
additional time to compile sufficient evidence as to the effectiveness 
of the Pilot Program, NYSE Arca proposes to extend the Pilot Program 
for an additional one-year period ending February 15, 2009.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act,\8\ in general, and furthers the 
objectives of Section 6(b)(5), \9\ in particular, in that it is 
designed to facilitate transactions in securities, to promote just and 
equitable principles of trade, and to protect investors and the public 
interest.
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    \8\ 15 U.S.C. 78f.
    \9\ 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.

[[Page 12493]]

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 foregoing proposed rule change does not: (i) 
Significantly affect the protection of investors or the public 
interest; (ii) impose any significant burden on competition; and (iii) 
become operative for 30 days from the date on which it was filed, or 
such shorter time as the Commission may designate, it has become 
effective pursuant to Section 19(b)(3)(A) of the Act \10\ and Rule 19b-
4(f)(6) thereunder.\11\
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    \10\ 15 U.S.C. 78s(b)(3)(A).
    \11\ 17 CFR 240.19b-4(f)(6). Rule 19b-4(f)(6) also requires the 
self-regulatory organization to give the Commission 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 
Commission has determined to grant the Exchange's request to waive 
the five day pre-filing notice requirement.
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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.
    NYSE Arca has requested that the Commission waive the 30-day 
operative delay to allow NYSE Arca to continue the existing Pilot 
Program without interruption. The Commission believes that waiver of 
the 30-day operative delay is consistent with the protection of 
investors and the public interest because it will allow the Pilot 
Program to continue uninterrupted for an additional year and allow the 
Exchange more time to assess the effectiveness of the Pilot Program. 
Accordingly, the Commission designates the proposal as operative upon 
filing with the Commission.\12\
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    \12\ For purposes only of waiving the 30-day operative delay of 
this proposal, 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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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-NYSEArca-2008-21 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-2008-21. 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 Arca. 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-2008-21 and should 
be submitted on or before March 28, 2008.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\13\
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    \13\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8-4512 Filed 3-6-08; 8:45 am]

BILLING CODE 8011-01-P