Document ID: SEC-2007-0417-0001
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 13156]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr20mr07-103]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-55447; File No. SR-NYSEArca-2006-50]

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

March 12, 2007.

I. Introduction

    On November 14, 2006, NYSE Arca, Inc. (``NYSE Arca'' or 
``Exchange''), through its wholly owned subsidiary NYSE Arca Equities, 
Inc. (``NYSE Arca Equities'' or ``Corporation''), 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 Corporation. 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. 55214 (January 31, 
2007), 72 FR 5780 (February 7, 2007).
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II. Description of the Proposal

    The Exchange, through its wholly owned subsidiary NYSE Arca 
Equities, proposed to amend certain NYSE Arca Equities Rules governing 
registration procedures and ongoing compliance obligations for Equity 
Trading Permit (``ETP'') Holders \4\ and their registered persons in 
order to 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'').
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    \4\ See NYSE Arca Equities Rule 1.1(n).
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    Specifically, the Exchange proposed to amend Rule 2.4(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 2.21 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 Rule 2.21(d) and 
deleting the continuing education requirements in Rule 9.27(c) and (d) 
to avoid needless repetition and risk of inconsistencies.

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.\5\ In particular, the Commission finds that the proposed rule 
change is consistent with Section 6(b)(5) of the Act,\6\ 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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    \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).
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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 ETP Holders and their registered persons by making the 
registration process easier and more efficient. Furthermore, amending 
Exchange rules to be generally consistent with other SROs' rules, 
market practices, and the operation of the CRD should help simplify 
such procedures and administrative matters for ETP Holders and their 
registered persons.

IV. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\7\ that the proposed rule change (SR-NYSEArca-2006-50), as 
modified by Amendment No. 1, be, and hereby is, approved.
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    \7\ 15 U.S.C. 78s(b)(2).
    \8\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\8\
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-4975 Filed 3-19-07; 8:45 am]

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