Document ID: SEC-2006-0738-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: New York Stock Exchange LLC.
Posted Date: 2006-06-07T04:00Z

[Federal Register: June 7, 2006 (Volume 71, Number 109)]
[Notices]               
[Page 33029-33030]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr07jn06-147]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-53924; File No. SR-NYSE-2006-40]

 
Self-Regulatory Organizations; New York Stock Exchange LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
Relating to NYSE Rule 476

June 1, 2006.
    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 May 22, 2006, 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 prepared by the Exchange. The 
Exchange filed the proposed rule change pursuant to Section 19(b)(3)(A) 
of the Act \3\ and Rule 19b-4(f)(6) thereunder,\4\ which renders the 
proposed rule change 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).
    \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 is proposing to amend NYSE Rule 476 in order to make technical 
changes to the text of the second paragraph of NYSE Rule 476(k).
    The text of the proposed rule change is available on the Exchange's 
Web site (http://www.nyse.com), at the Exchange's Office of the 

Secretary, 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
    On March 27, 2006, the Exchange filed SR-NYSE-2006-23 \5\ (``NYSE-
2006-23'') with the Commission to reconcile recent amendments to the 
text of NYSE Rules 475 and 476.\6\ NYSE-2006-23 deleted inadvertently 
inserted text from previously approved changes made to NYSE Rule 476(l) 
\7\ and incorporated the corrected paragraph of NYSE Rule 476(l) \8\ 
into NYSE Rule 476(k). Further, NYSE-2006-23 made technical changes to 
the rules and rendered the rules gender neutral.
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    \5\ See Securities Exchange Act Release No. 53575 (March 30, 
2006), 71 FR 17537 (April 6, 2006) (SR-NYSE-2006-23). NYSE-2006-23 
became effective upon filing with the Commission pursuant to Section 
19(b)(3)(A) of the Act and Rule 19b-4(f)(6) thereunder.
    \6\ See Securities Exchange Act Release Nos. 53124 (January 13, 
2006), 71 FR 3595 (January 23, 2006) (SR-NYSE-2005-37) (which became 
operative on April 1, 2006), and 53382 (February 27, 2006), 71 FR 
11251 (March 6, 2006) (SR-NYSE-2005-77). Telephone conversation 
between Deanna Logan, Director, NYSE, and Jan Woo, Attorney, 
Division of Market Regulation, Commission, on May 25, 2006.
    \7\ See Securities Exchange Act Release No. 53382 (February 27, 
2006), 71 FR 11251 (March 6, 2006) (SR-NYSE-2005-77).
    \8\ Id.
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    However, in NYSE-2006-23, the Exchange failed to remove superfluous 
text in the second paragraph of NYSE Rule 476(k). Currently the 
paragraph reads:

    Any member, member organization or allied of a member 
organization who shall not pay a fine, or any other sums due to the 
Exchange, within forty-five days after the same shall become 
payable, shall be reported by the Exchange Treasurer to the Chairman 
of the Exchange Board of Directors and, after written notice mailed 
to such member, member organization or allied member of such 
arrearages, may be suspended by the Exchange Board of Directors 
until payment is made.

    The Exchange seeks to delete the words ``of a'' after the first 
reference to ``allied'' in the paragraph and the word ``organization'' 
that follows the third reference to the word ``member'' so that the 
phrase reads ``* * * allied member who shall not * * *.'' The class of 
membership governed by this rule is an allied member and the Exchange 
seeks this amendment in order accurately reflect that class of 
membership.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the requirement under Section 6(b)(5) of

[[Page 33030]]

the Act \9\ 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. 
The Exchange believes that the proposed rule change is consistent with 
these objectives in that it enables the Exchange to further enhance the 
process by which securities are allocated.
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    \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.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants or Others

    Written comments were neither solicited nor received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Because the foregoing proposed rule change does not: (1) 
Significantly affect the protection of investors or the public 
interest; (2) impose any significant burden on competition; and (3) by 
its terms, become operative for 30 days from the date on which it was 
filed, 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 
19(b)(3)(A) \10\ of the Act and Rule 19b-4(f)(6) thereunder.
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    \10\ 15 U.S.C. 78s(b)(3)(A).
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    A proposed rule change filed under Rule 19b-4(f)(6) \11\ normally 
may not become operative prior to 30 days after the date of 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 5-day pre-filing notice requirement and the 30-day 
operative delay, which would make the rule change effective and 
operative upon filing. The Commission believes that waiver of the 5-day 
pre-filing notice and the 30-day operative delay is consistent with the 
protection of investors and the public interest.\13\ The Commission 
notes that such waiver would allow the Exchange to implement the 
proposed rule change immediately and thus to avoid any potential 
confusion in the class of membership governed by the rule. Accordingly, 
the Commission designates that the proposed rule change effective and 
operative upon filing with the Commission.
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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 operative delay for this 
proposal, the Commission has considered the proposed rule's impact 
on efficiency, competition, and capital formation. See 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 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.

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-NYSE-2006-40 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-NYSE-2006-40. 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-NYSE-2006-40 and should be submitted on or before June 
28, 2006.
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    \14\ 7 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\14\
J. Lynn Taylor,
Assistant Secretary.
 [FR Doc. E6-8800 Filed 6-6-06; 8:45 am]

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