Document ID: SEC-2008-0003-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: New York Stock Exchange LLC
Posted Date: 2008-01-03T05:00Z

[Federal Register: January 3, 2008 (Volume 73, Number 2)]
[Notices]               
[Page 533-534]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr03ja08-64]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-57046; File No. SR-NYSE-2007-118]

 
Self-Regulatory Organizations; New York Stock Exchange LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
Relating to NYSE Rule 409(f)

December 27, 2007.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 
1934 (``Act'') and Rule 19b-4 thereunder,\2\ notice is hereby given 
that on December 21, 2007, the New York Stock Exchange LLC (``NYSE'' or 
the ``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 NYSE. 
NYSE has designated the proposed rule change as constituting a ``non-
controversial'' rule change pursuant to Section 19(b)(3)(A) of the Act 
\3\ and Rule 19b-4(f)(6) \4\ thereunder, which renders the proposal 
effective upon receipt of this filing by 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

    This proposal is to amend New York Stock Exchange Rule 409 
(Statements of Accounts to Customers) to delete the requirement that 
certain confirmations and reports include the name of the securities 
market on which a transaction is effected. The proposed rule change 
conforms NYSE's version of NYSE Rule 409 to proposed amendments filed 
by the Financial Industry Regulatory Authority, Inc. (``FINRA'') to its 
version of NYSE Rule 409. Below is the text of the proposed rule 
change. Proposed new language is in italics; proposed deletions are in 
brackets.
* * * * *

Rule 409. Statements of Accounts to Customers

    (a) through (e) No change.
    (f) Confirmation of all transactions (including those made ``over-
the-counter'' and on other exchanges) in securities admitted to 
dealings on the Exchange, sent by members or member organizations to 
their customers, shall [indicate]clearly set forth with a suitable 
legend the settlement date of each transaction[ and bear the name of 
the securities market on which the transaction was made]. This 
requirement also applies to confirmations or reports from an 
organization to a correspondent, but does not apply to reports made by 
floor brokers to the member organization from whom the orders were 
received.
    [All confirmations shall contain a suitable legend clearly setting 
forth all required information.]
    (g) No change.
* * * * *

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 self-regulatory organization 
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 self-regulatory organization 
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 July 30, 2007, NASD and NYSE Regulation, Inc. consolidated their 
member firm regulation operations into a combined organization, 
FINRA.\5\ Pursuant to FINRA's new regulatory responsibilities, FINRA 
amended FINRA's NYSE Rule 409 to delete the requirement that certain 
confirmations and reports include the name of the securities market on 
which a transaction is effected. The NYSE is proposing to amend its 
version of NYSE Rule 409 to conform to FINRA's NYSE Rule 409.
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    \5\ Pursuant to Rule 17d-2 under the Exchange Act, NYSE, NYSE 
Regulation, Inc., and NASD entered into an agreement (the 
``Agreement'') to reduce regulatory duplication for firms that are 
members of FINRA and also members of NYSE on or after July 30, 2007 
(``Dual Members''), by allocating to FINRA certain regulatory 
responsibilities for selected NYSE rules. The Agreement includes a 
list of all of those rules (``Common Rules'') for which FINRA has 
assumed regulatory responsibilities. See Securities and Exchange Act 
Release No. 56148 (July 26, 2007), 72 FR 42146 (August 1, 2007) 
(Notice of Filing and Order Approving and Declaring Effective a Plan 
for the Allocation of Regulatory Responsibilities). The Common Rules 
are the same NYSE rules that FINRA has incorporated into its 
rulebook. See Securities Exchange Act Release No. 56418 (July 26, 
2007), 72 FR 42146 (August 1, 2007) (Notice of Filing and Order 
Granting Accelerated Approval of Proposed Rule Change to Incorporate 
Certain NYSE Rules Relating to Member Firm Conduct; File No. SR-
NASD-2007-054). Paragraph 2(b) of the 17d-2 Agreement sets forth 
procedures regarding proposed changes by either NYSE or FINRA to the 
substance of any of the Common Rules.
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    As noted in Item 2 of this filing, the operative date of the 
proposed rule change is January 1, 2008, which is the operative date of 
FINRA's identical amendments to its version of Rule 409.
2. Statutory Basis
    The basis under the Act for this proposed rule change is the 
requirement under Section 6(b)(5) \6\ 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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    \6\ 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.

[[Page 534]]

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

    The foregoing rule change is being filed for immediate 
effectiveness pursuant to Section 19(b)(3)(A) \7\ of the Act and Rule 
19b-4(f)(6) \8\ promulgated thereunder. The foregoing rule change 
effects a change that (A) does not significantly affect the protection 
of investors or the public interest; (B) does not impose any 
significant burden on competition; and (C) by its terms, 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.
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    \7\ 15 U.S.C. 78s(b)(3)(A).
    \8\ 17 CFR 240.19b-4(f)(6).
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    A proposed rule change filed under Rule 19b-4(f)(6) becomes 
effective upon filing but normally does not become operative prior to 
30 days after the date of filing. However, pursuant to Rule 19b-
4(f)(6)(iii),\9\ the Commission may designate a shorter time if such 
action is consistent with the protection of investors and public 
interest. The Exchange requests that the Commission waive the 30-day 
delayed operative date, so that the proposed rule change may become 
operative on January 1, 2008. In particular, the sole purpose of the 
proposed rule change is to conform NYSE's version of NYSE Rule 409 to 
FINRA's proposed amendments to NYSE Rule 409, in furtherance of the 
consolidation of the member firm regulations functions of NYSE 
Regulation and NASD. NYSE requests that the effective date of the 
proposed rule change be January 1, 2008, to conform to the effective 
date of FINRA's identical amendment to Rule 409 to ensure that Rule 409 
maintains its status as a Common Rule under the 17d-2 Agreement. As 
provided in paragraph 2(b) of the Agreement, FINRA and NYSE will, 
absent a disagreement about the substance of a proposed rule change to 
one of the Common Rules, promptly propose conforming changes to ensure 
that such rules continue to be Common Rules under the Agreement.
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    \9\ 17 CFR 240. 19b-4(f)(6)(iii).
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    In accordance with Rule 19b-4,\10\ NYSE submitted 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. NYSE has requested that the 
Commission waive the 30-day operative delay contained in Rule 19b-
4(f)(6)(iii) \11\ under the Act based upon a representation that the 
temporary exemptive relief provided by FINRA and NYSE expires on 
January 1, 2008, and to conform to the identical rule amendments 
proposed by FINRA. In light of the foregoing, the Commission believes 
such waiver is consistent with the protection of investors and the 
public interest. Accordingly, the Commission designates the proposal to 
be effective upon filing with the Commission and operative on January 
1, 2008.\12\
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    \10\ 17 CFR 240.19b-4.
    \11\ 17 CFR 240.19b-4(f)(6)(iii).
    \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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    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 e-mail to rule-comments@sec.gov. Please include File 

Number SR-NYSE-2007-118 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-2007-118. 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 will also 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-2007-118 and should be 
submitted on or before January 24, 2008.
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    \13\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\13\
Nancy M. Morris,
Secretary.
[FR Doc. E7-25506 Filed 1-2-08; 8:45 am]

BILLING CODE 8011-01-P