Document ID: SEC-2006-1700-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: NYSE Arca, Inc.
Posted Date: 2006-12-28T05:00Z

[Federal Register: December 28, 2006 (Volume 71, Number 249)]
[Notices]               
[Page 78250]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr28de06-131]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-54986; File No. SR-NYSEArca-2006-58]

 
Self-Regulatory Organizations; NYSE Arca, Inc.; Order Approving 
Proposed Rule Change and Amendment No. 1 Thereto Relating to Its 
Regulatory Oversight Committee

December 21, 2006.

    On September 21, 2006, NYSE Arca, Inc. (``NYSE Arca'' or 
``Exchange'') 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 amend NYSE Arca Rule 3.3 to provide that the 
Exchange's Regulatory Oversight Committee (the ``ROC'') shall be 
comprised of at least three Public Directors, rather than all the 
Public Directors. On October 20, 2006, the Exchange filed Amendment No. 
1 to the proposed rule change. The proposed rule change, as amended, 
was published for comment in the Federal Register on October 27, 
2006.\3\ The Commission received no comments regarding the proposal.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 54638 (October 23, 
2006), 71 FR 63059.
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    The Commission finds that the proposed rule change is consistent 
with the requirements of the Act and the rules and regulations 
thereunder applicable to a national securities exchange \4\ and, in 
particular, the requirements of Section 6(b)(5) of the Act.\5\ Section 
6(b)(5) requires, among other things, that the rules of an exchange be 
designed to prevent fraudulent and manipulative acts, to promote just 
and equitable principles of trade, and, in general, to protect 
investors and the public interest. The Commission notes that the 
proposed rule change, by establishing a minimum committee size for the 
ROC, would allow the Exchange to reduce the ROC to three members. The 
Commission notes that the proposed rule change would retain the 
requirement that all members of the ROC be Public Directors.\6\ 
Accordingly, the Commission finds that the proposed rule change, as 
amended, is consistent with the Act.
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    \4\ In approving this proposed rule change, the Commission notes 
that it has considered the proposed rule's impact on efficiency, 
competition, and capital formation. 15 U.S.C. 78c(f).
    \5\ 15 U.S.C. 78f(b)(5).
    \6\ NYSE Arca's By-Laws define a ``Public Director'' as a person 
from the public who will not be, or be affiliated with, a broker-
dealer in securities or employed by, or involved in any material 
business relationship with, the Exchange or its affiliates. See 
Section 3.02 of the NYSE Arca By-Laws.
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    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\7\ that the proposed rule change (SR-NYSEArca-2006-58), as 
amended, is approved.
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    \7\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\8\
Florence E. Harmon,
Deputy Secretary.
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    \8\ 17 CFR 200.30-3(a)(12); 17 CFR 200.30-3(a)(44)
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 [FR Doc. E6-22261 Filed 12-27-06; 8:45 am]

BILLING CODE 8011-01-P