Document ID: SEC-2008-1540-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NYSE Arca, Inc.
Posted Date: 2008-11-18T05:00Z

[Federal Register: November 18, 2008 (Volume 73, Number 223)]
[Notices]               
[Page 68487-68488]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr18no08-130]                         

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-58925; File No. SR-NYSEArca-2008-104]

 
Self-Regulatory Organizations; NYSE Arca, Inc.; Order Granting 
Approval of a Proposed Rule Change Relating to Continued Listing 
Criteria Applicable to Equity Linked Notes and ``Other Securities''

November 10, 2008.

I. Introduction

    On September 30, 2008, NYSE Arca, Inc. (``NYSE Arca'' or 
``Exchange''), through its wholly owned subsidiary, NYSE Arca Equities, 
Inc. (``NYSE Arca Equities''), filed with the Securities and Exchange 
Commission (``Commission'') pursuant to Section 19(b)(1) of the 
Securities Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 
thereunder,\2\ a proposed rule change to to adopt NYSE Arca Equities 
Rules 5.5(i) and 5.5(j) to specify continued listing criteria 
applicable to securities listed on the Exchange pursuant to NYSE Arca 
Equities Rules 5.2(j)(1) and 5.2(j)(2), respectively. The proposed rule 
change was published in the Federal Register on October 10, 2008.\3\ 
The Commission received no comments on the proposed rule change. This 
order approves the proposed rule change.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 58720 (October 2, 
2008), 73 FR 60385.
---------------------------------------------------------------------------

II. Description

    The Exchange proposes to adopt NYSE Arca Equities Rules 5.5(i) and 
5.5(j) to specify continued listing criteria applicable to securities 
listed on the Exchange pursuant to NYSE Arca Equities Rules 5.2(j)(1) 
(``Other Securities'') and 5.2(j)(2) (``Equity Linked Notes'' or 
``ELNs''), respectively.
    NYSE Arca Equities Rule 5.2(j)(1) provides that the Exchange will 
consider listing any security not otherwise covered by the requirements 
of NYSE Arca Equities Rule 5.2 subject to specified initial listing 
requirements, including minimum number of publicly held trading units 
and minimum principal amount/market value, the required minimum number 
of public beneficial holders, and required issuer's total assets and 
net worth. NYSE Arca Equities Rule 5.2(j)(2) sets forth initial listing 
requirements applicable to ELNs, including numerical listing standards 
applicable to the ELN's issuer, the issue itself, and the underlying 
security for the ELN.
    Securities listed under NYSE Arca Equities Rules 5.2(j)(1) and 
5.2(j)(2) are subject to trading suspension or delisting pursuant to 
standards set forth in NYSE Arca Equities Rule 5.5(l) (``Other Reasons 
for Suspending or Delisting''). Proposed NYSE Arca Equities Rules 
5.5(i) and 5.5(j) would provide that NYSE Arca Equities will commence 
delisting or removal proceedings (unless the Commission has approved 
the continued trading of an issue of securities listed pursuant to Rule 
5.2(j)(1) or Rule 5.2(j)(2), respectively), if the aggregate market 
value or the principal amount of the securities publicly held is less 
than

[[Page 68488]]

$400,000, or if such other event shall occur or condition exists which 
in the opinion of the NYSE Arca Equities makes further dealings on NYSE 
Arca Equities inadvisable.

III. Discussion and Commission's Findings

    The Commission has carefully reviewed the proposed rule change and 
finds that it is consistent with the requirements of Section 6(b) \4\ 
of the Act and the rules and regulations thereunder applicable to a 
national securities exchange.\5\ In particular, the Commission finds 
that the proposed rule change is consistent with Section 6(b)(5) \6\ of 
the Act, which requires, among other things, that the Exchange's rules 
be 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, and 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.
---------------------------------------------------------------------------

    \4\ 15 U.S.C. 78f(b).
    \5\ In approving this proposed rule change, the Commission has 
considered the proposed rule's impact on efficiency, competition, 
and capital formation. See 15 U.S.C. 78c(f).
    \6\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Commission believes that the proposed $400,000 dollar threshold 
should help to ensure a minimum level of liquidity for products listed 
under NYSE Arca Equities Rules 5.2(j)(1) and 5.2(j)(2), respectively. 
The Commission also believes that the proposed rule change should 
provide the Exchange the flexibility to commence delisting proceedings 
for these securities should other events or conditions exist that call 
for such action. The Exchange has represented that securities listed 
under NYSE Arca Equities Rules 5.2(j)(1) and 5.2(j)(2) are subject to 
trading suspension or delisting pursuant to standards set forth in Rule 
5.5(l). Taken together, the Commission believes that such criteria 
should help ensure the maintenance of fair and orderly markets for such 
securities. Additionally, the Commission notes that the proposed 
criteria are similar to those continued listing standards currently 
applicable to certain classes of securities listed pursuant to NYSE 
Arca Equities Rule 5.2(j).\7\
---------------------------------------------------------------------------

    \7\ See, e.g., NYSE Arca Equities Rule 5.2(j)(4).
---------------------------------------------------------------------------

IV. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\8\ that the proposed rule change (SR-NYSEArca-2008-104) be, and it 
hereby is, approved.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\9\
---------------------------------------------------------------------------

    \9\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-27281 Filed 11-17-08; 8:45 am]

BILLING CODE 8011-01-P