Document ID: SEC-2007-1797-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: New York Stock Exchange LLC
Posted Date: 2007-12-31T05:00Z

[Federal Register: December 31, 2007 (Volume 72, Number 249)]
[Notices]               
[Page 74386-74388]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr31de07-104]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-57035; File No. SR-NYSE-2007-117]

 
Self-Regulatory Organizations; New York Stock Exchange LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Establish a New Non-Regulatory Trading Halt Condition Under Rule 123D 
Designated as ``Investment Company Units or Index-Linked Securities''

December 21, 2007.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that 
on December 19, 2007, the New York Stock Exchange, LLC (``NYSE'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``Commission'') the proposed rule changes as described in Items I and 
II below, which items have been substantially prepared by the Exchange. 
The Commission is publishing this notice to solicit comments on the 
proposed rule changes from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend Exchange Rule 123D to establish a 
new non-regulatory trading halt condition designated as ``Investment 
Company Units or Index-Linked Securities.'' This condition may be used 
with respect to Investment Company Units (commonly known as exchange-
traded funds (``ETFs'')) and index-linked securities on or after 
January 1, 2008, to facilitate the closing of the trading room in which 
such securities are traded and the transfer of the listing of all such 
securities to NYSE Arca, Inc. (``NYSE Arca''). Any orders received by 
NYSE in a security subject to an ``Investment Company Units or Index-
Linked Securities'' condition will be routed to NYSE Arca where they 
will be traded in accordance with the rules governing that market. The 
text of the proposed rule change is available on the NYSE's Web site at 
http://www.nyse.com, at the Office of the Secretary of the Exchange, 

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 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 NYSE 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
    As part of its strategic business planning, NYSE Euronext is 
seeking to move the listing and trading of all index-linked securities 
and ETFs from the Exchange to NYSE Arca by December 31, 2007. The 
Exchange has requested issuers of ETFs and index-linked securities to 
voluntarily delist those securities from NYSE and list them on NYSE 
Arca. The Exchange intends to close down the trading room in which ETFs 
and index-linked securities are traded on the Exchange

[[Page 74387]]

floor on December 31, 2007. Upon closing of this trading room, there 
will no longer be any trading posts on the Exchange floor equipped with 
the appropriate technology to enable specialists to make an effective 
market in ETFs or index-linked securities. As a consequence, the 
Exchange is concerned that, while all of the issuers of ETFs and index-
linked securities have agreed to such transfer, the transfer of a small 
number of ETFs and index-linked securities may not have been completed 
by December 31, 2007.
    To avoid the excessive cost involved in keeping the trading room 
open for a very small number of securities, the Exchange proposes to 
amend Rule 123D to establish a new non-regulatory trading halt 
condition designated as ``Investment Company Units or Index-Linked 
Securities.'' This condition may be used with respect to ETFs or index-
linked securities on or after January 1, 2008, to facilitate the 
closing of the trading room in which such securities are traded and the 
transfer of the listing of all such securities to NYSE Arca. On or 
after January 1, 2008, any ETFs or index-linked securities that remain 
listed on NYSE will be subject to a trading halt pursuant to the Rule 
123D ``Investment Company Units or Index-Linked Securities'' condition. 
Any orders received by NYSE in a security subject to this condition 
will be routed to NYSE Arca where the securities will be traded in 
accordance with the rules governing that market.
2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) of the Act 
\3\ in general, and furthers the objectives of Section 6(b)(5) of the 
Act \4\ in particular in that it is 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 mechanisms of a free and open 
market and a national market system.
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    \3\ 15 U.S.C. 78f(b).
    \4\ 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

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A) of the Act \5\ and Rule 19b-4(f)(6) \6\ thereunder because 
the proposal does not: (i) Significantly affect the protection of 
investors or the public interest; (ii) impose any significant burden on 
competition; and (iii) 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.
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    \5\ 15 U.S.C. 78s(b)(3)(A).
    \6\ 17 CFR 240.19b-4(f)(6).
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    A proposed rule change filed under Rule 19b-4(f)(6) normally may 
not become operative prior to 30 days after the date of filing. 
However, Rule 19b-4(f)(6)(iii) \7\ permits the Commission to designate 
a shorter time if such action is consistent with the protection of 
investors and the public interest. The Exchange has requested that the 
Commission waive the 30-day operative delay period. The Commission 
believes that waiver of the 30-day operative delay period is consistent 
with the protection of investors and the public interest. Specifically, 
in light of NYSE's plan to close the trading room on December 31, 2007, 
the proposed non-regulatory trading halt condition will ensure that 
those securities that have not transferred to NYSE Arca will continue 
to have an effective market.\8\ The Commission notes that these 
securities would continue to trade on a national securities exchange.
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    \7\ 17 CFR 240.19b-4(f)(6)(iii).
    \8\ 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 proposed 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.\9\
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    \9\ 15 U.S.C. 78s(b)(3)(C).
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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-NYSE-2007-117 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-2007-117. 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 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-2007-117 and should be 
submitted on or before January 22, 2008.

[[Page 74388]]

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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Nancy M. Morris,
Secretary.
 [FR Doc. E7-25376 Filed 12-28-07; 8:45 am]

BILLING CODE 8011-01-P