Document ID: SEC-2007-0414-0002
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: NYSE Arca, Inc
Posted Date: 2007-03-20T04:00Z

[Federal Register: March 20, 2007 (Volume 72, Number 53)]
[Notices]               
[Page 13155-13156]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr20mr07-102]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-55446; File No. SR-NYSEArca-2006-51]

 
Self-Regulatory Organizations; NYSE Arca, Inc.; Order Granting 
Approval of Proposed Rule Change Relating to Amendments to Registration 
Rules of NYSE Arca, Inc

March 12, 2007.

I. Introduction

    On November 14, 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 relating to amendments to registration rules of 
the Exchange. NYSE Arca filed Amendment No. 1 to the proposed rule 
change on January 12, 2007. The proposed rule change, as amended, was 
published for comment in the Federal Register on February 7, 2007.\3\ 
The Commission received no comments on the proposal. This order 
approves the proposed rule change, as amended.
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    \1\ 15 U.S.C. 78s(b)(l).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 55215 (January 31, 
2007), 72 FR 5783 (February 7, 2007).
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II. Description of the Proposal

    The Exchange proposed to amend certain NYSE Arca Rules governing 
registration procedures and ongoing compliance obligations for Options 
Trading Permit (``OTP'') Holders \4\ and employees of OTP Firms \5\ in 
order to (i) clarify registration procedures and make them consistent 
with the procedures of other self-regulatory organizations (``SROs'') 
and with the operation of the Central Registration Depository (``CRD'') 
system maintained by the National Association of Securities Dealers, 
Inc. (``NASD'') and (ii) include an additional registration category in 
connection with the Exchange's new options trading platform, OX.\6\
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    \4\ See NYSE Arca Rule 1.1(q).
    \5\ See NYSE Arca Rule 1.1(r).
    \6\ See Securities Exchange Act Release No. 54238 (July 28, 
2006), 71 FR 44758 (August 7, 2006) (SR-NYSEArca-2006-13).
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    Specifically, the Exchange proposed to amend Rule 2.5(b)(10)(A) to 
provide for a new category, the Market Maker Authorized Trader, for 
individuals who perform market making activity on behalf of an OTP Firm 
on the OX trading facility. The amendment to that Rule also includes 
certain exceptions to the examination requirements. The Exchange also 
proposed to amend Rule 2.5(c), its waiver standards, so that the 
Exchange's practices are generally consistent with the criterion in 
NASD Rule 1070(d) and Supplementary Material .15(1)(b) to NYSE Rule 
345. The Exchange also proposed to amend Rule 2.23 to provide manual 
registration procedures for registration categories (e.g., floor clerk) 
for which CRD does not provide electronic registration. In addition, 
the Exchange is consolidating its continuing education requirements in 
paragraph (d) of Rule 2.23 and deleting the continuing education 
requirements in Rule 9.27(c) and (d) to avoid needless repetition and 
risk of inconsistencies. Finally, the Exchange proposes to amend Rules 
6.33 and 6.34A(b)(2) to require Market Maker and Market Maker 
Authorized Trader applicants who have previously successfully completed 
the required examination but who have not been registered with the 
Exchange for six months or more to complete an orientation program 
prescribed by the Exchange.

III. Discussion and Commission Findings

    The Commission has reviewed carefully the proposed rule change and 
finds that it is consistent with the requirements of the Act and the 
rules and regulations thereunder applicable to a national securities 
exchange.\7\ In particular, the Commission finds that the proposed rule 
change is consistent with Section 6(b)(5) of the Act,\8\ which, among 
other things, requires that the rules of a national securities exchange 
be designed to promote just and equitable principles of trade, to 
foster cooperation and coordination with persons engaged in regulating 
transactions in securities, 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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    \7\ 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).
    \8\ 15 U.S.C. 78f(b)(5).
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    The Commission believes that clarifying the registration procedures 
and ongoing compliance obligations and making the registration 
procedures consistent with the procedures of the other SROs will 
benefit OTP Holders and employees of OTP Firms by making the 
registration process easier and more efficient. Furthermore, amending 
Exchange rules to be generally consistent with the rules of other SROs, 
market practices, and the operation of

[[Page 13156]]

the CRD should help simplify the procedures and administrative matters 
for OTP Holders and employees of OTP Firms. Finally, the Commission 
believes that requiring Market Makers and Market Maker Authorized 
Traders to attend an orientation session when such persons have not 
been employed in those capacities for six months or more will be 
beneficial to those persons, the Exchange, and the investing public.

IV. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\9\ that the proposed rule change (SR-NYSEArca-2006-51), as 
amended, be, and hereby is, approved.
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    \9\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E7-4974 Filed 3-19-07; 8:45 am]

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