Document ID: SEC-2008-1118-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NYSE Arca, Inc.
Posted Date: 2008-08-11T04:00Z

[Federal Register: August 11, 2008 (Volume 73, Number 155)]
[Notices]               
[Page 46679-46681]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr11au08-123]                         

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 58266; File No. SR-NYSEArca-2008-80]

 
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change Eliminating Certain 
Obsolete Rules

July 30, 2008.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby 
given that, on July 24, 2008, NYSE Arca, Inc. (``NYSE Arca'' or the 
``Exchange'') filed with the Securities and Exchange Commission (the 
``Commission'') the proposed rule change as described in Items I, II, 
and III below, which Items have been prepared by the self-regulatory 
organization. The Commission is publishing this notice to solicit 
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------

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

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

    The Exchange proposes to amend its rules in order to remove 
obsolete and unnecessary rule text related to information that is now 
obsolete. These changes are being made for administrative purposes 
only. By abolishing these out-dated references, the Exchange is not 
changing or altering any obligations, rights, policies or practices 
enumerated within its rules. The text of the proposed rule change is 
available at the Exchange, and 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 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 those 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 parts 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 filing by NYSE Arca is to remove obsolete and 
unnecessary rule text in several of its rules. By abolishing these out-
dated references, the Exchange is not changing or altering any 
obligations, rights, policies or practices enumerated within its rules.
    In September 2006, the Exchange revised its rules to conform to 
Regulation NMS.\4\ At that time, there was a transitional period where 
the pre-NMS version of certain rules were in effect until a specified 
date (February 5, 2007), after which the new NMS version of the rule 
would take effect. As a result, there are several Exchange rules that 
contain both pre-NMS provisions as well as current applicable 
provisions. In fact, many of the Exchange's rules are identified either 
as operative through February 5, 2007 or operative after February 5, 
2007. Retaining these outdated pre-NMS provisions fosters unnecessary 
confusion. The Exchange proposes to amend its rules to remove this text 
that is both unnecessary and, by its very terms, obsolete.
---------------------------------------------------------------------------

    \4\ See Securities Exchange Act Release No. 54549 (September 29, 
2006), 71 FR 59179 (October 6, 2006) (SR-NYSEArca-2006-59).
---------------------------------------------------------------------------

    The specific proposed changes are discussed in further detail 
below.
     Rule 1.1: This rule sets forth certain definitions and 
references that are in effect at NYSE Arca. By this proposal, the 
Exchange is eliminating obsolete terms that were identified as being in 
effect until February 5, 2007 while maintaining (without revision) the 
currently operative terms that were identified as having taken effect 
as of February 5, 2007, as shown below.
    [dec221] Rule 1.1(aa): The Exchange is deleting the out-dated 
definition of the term ``Nasdaq Security'' while retaining the 
currently operative definition of the same term.
    [dec221] Rule 1.1(dd): The Exchange is deleting the out-dated 
definition of the term ``NBBO'' while retaining the currently operative 
definition of the same term.
    [dec221] Rule 1.1(rr): The Exchange is deleting the out-dated 
definition of the term ``Security'' while retaining the currently 
operative definition of the same term.
    [dec221] Rule 1.1(ddd): The Exchange is deleting the unnecessary 
reference to the operative date of the definition of the term ``NMS 
Stock'' while retaining

[[Page 46680]]

the currently operative definition of the same term.
    [dec221] Rule 1.1(eee): The Exchange is deleting the unnecessary 
reference to the operative date of the term ``Protected Bid, Protected 
Offer, Protected Quotation'' while retaining the currently operative 
definition of the same term.
    [dec221] Rule 1.1(fff): The Exchange is deleting the unnecessary 
reference to the operative date of the term ``Trade-Through'' while 
retaining the currently operative definition of the same term.
    [dec221] Rule 1.1(ggg): The Exchange is deleting the unnecessary 
reference to the operative date of the term ``Trading Center'' while 
retaining the currently operative definition of the same term.
    [dec221] Rule 1.1(hhh): The Exchange is deleting the unnecessary 
reference to the operative date of the term ``Effective National Market 
System Plan, Regular Trading Hours'' while retaining the currently 
operative definition of the same term.
     Rule 7.1, Hours of Business: The Exchange is hereby 
eliminating the obsolete rule text that was identified as being in 
effect until February 5, 2007 while maintaining (without revision) the 
currently operative rule text that was identified as having taken 
effect as of February 5, 2007.
     Rule 7.18, Trading in Nasdaq Securities: The Exchange is 
hereby eliminating the obsolete rule text that was identified as being 
in effect until February 5, 2007 while maintaining the currently 
operative rule text that was identified as having taken effect as of 
February 5, 2007.
    [dec221] Rule 7.18(c), Applicability. According to this sub-
section, ``the following Rules of the Corporation will not be 
applicable to transactions on the Corporation in Nasdaq Securities: 
Rules 7.55-7.57.'' This section is obsolete and unnecessary. Rule 7.55 
concerns the retired Intermarket Trading System Plan (``ITS Plan'') and 
Rules 7.56-7.57 are marked as inoperative as of February 5, 2007. 
Accordingly, the Exchange is deleting this rule text as obsolete. As 
outlined below, the Exchange is also proposing to delete all references 
to the retired ITS Plan.
     Rule 7.28, NMS Market Access: The Exchange is deleting the 
unnecessary reference to the operative date of the rule (February 5, 
2007) while retaining the currently operative rule text.
     Rule 7.31, Orders and Modifiers: This Rule defines certain 
orders available on the Exchange and explains their operability. By 
this proposal, the Exchange is eliminating the obsolete rule text that 
was identified as being in effect until February 5, 2007, while 
maintaining (without revision) the currently operative rule text that 
was identified as having taken effect as of February 5, 2007.
     Rule 7.35, Auctions: This Rule defines certain available 
auctions on the Exchange and their operability. The Exchange is hereby 
deleting Rule 7.35(f)(3)(D), pertaining to ITS, which had been marked 
as inoperative after February 5, 2007.
     Rule 7.37, Order Execution: This Rule sets forth the 
priority of execution of the Exchange's available order types. The 
Exchange is eliminating the obsolete rule text that was identified as 
being in effect until February 5, 2007, while maintaining the currently 
operative rule text that was identified as having taken effect as of 
February 5, 2007. With one exception, the Exchange is not altering or 
revising the currently operative text of Rule 7.37. Specifically, with 
respect to the introductory paragraph to Rule 7.37, the Exchange is 
proposing to delete the references to the ITS Plan and certain order 
interaction therewith.
     Rule 7.40, Trade Execution and Reporting: By this 
proposal, the Exchange is eliminating the obsolete rule text that was 
identified as being in effect until February 5, 2007, while maintaining 
(without revision) the currently operative rule text that was 
identified as having taken effect as of February 5, 2007.
     Rule 7.55, Definitions: This Rule concerns the ITS Plan 
and was marked as operative through February 5, 2007. The ITS Plan has 
been retired and the Rule is not operative by its very terms. The 
Exchange is hereby deleting this Rule in its entirety.
     Rule 7.56, ITS ``Trade-Throughs'' and ``Locked Markets'': 
This Rule concerns the ITS Plan and was marked as operative through 
February 5, 2007. The ITS Plan has been retired and the Rule is not 
operative by its very terms. The Exchange is hereby deleting this Rule 
in its entirety.
     Rule 7.57, Block Trade Policy: By this proposal, the 
Exchange is eliminating this obsolete Rule that was identified as being 
in effect until February 5, 2007.
     Rule 7.58, Compliance with Two-Sided Quote Requirement in 
ITS Plan: This Rule concerns the ITS Plan and was marked as operative 
through February 5, 2007. The ITS Plan has been retired and the Rule is 
not operative by its very terms. The Exchange is hereby deleting this 
Rule in its entirety.
     Rule 7.65(J). The Exchange is hereby eliminating the out-
dated and unnecessary reference to the ITS Plan. The Exchange is not 
making any other changes to Rule 7.65, Portfolio Crossing Service.
2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with 
and furthers the objectives of Section 6(b)(5) of the Act,\5\ in that 
it is designed to prevent fraudulent and manipulative practices, to 
promote just and equitable principles of trade, to remove impediments 
to, and perfect the mechanisms 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 
will eliminate unnecessary confusion in its rule structure by removing 
outdated and obsolete rule references.
---------------------------------------------------------------------------

    \5\ 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

    No written comments were solicited or received with respect to the 
proposed rule change.

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

    The Exchange has filed the proposed rule change pursuant to Section 
19(b)(3)(A)(iii) of the Act \6\ and Rule 19b-4(f)(6) thereunder.\7\ 
Because the 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 prior to 
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) of the Act \8\ and Rule 19b-
4(f)(6)(iii) thereunder.\9\
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \7\ 17 CFR 240.19b-4(f)(6).
    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 17 CFR 240.19b-4(f)(6)(iii).
---------------------------------------------------------------------------

    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

[[Page 46681]]

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 Number SR-NYSEArca-2008-80 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities 
and Exchange Commission, 100 F Street, NE., Washington, DC 20549-1090.

All submissions should refer to File Number SR-NYSEArca-2008-80. 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 NYSE Arca's principal office and on its 
Internet Web site at http://www.nyse.com. 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-2008-80, and should be 
submitted on or before September 2, 2008.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
---------------------------------------------------------------------------

    \10\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Acting Secretary.
 [FR Doc. E8-18382 Filed 8-8-08; 8:45 am]

BILLING CODE 8010-01-P