Federal Register: May 3, 2006 (Volume 71, Number 85)

DOCID: FR Doc E6-6640

SECURITIES AND EXCHANGE COMMISSION

Securities and Exchange Commission

DOCUMENT ID: [Release No. 34-53710; File No. SR-PCX-2006-10]

NOTICE: NOTICES

ACTION: Self-regulatory organizations; proposed rule changes:

SUBJECT CATEGORY:

Self-Regulatory Organizations; Pacific Exchange, Inc. (n/k/a NYSE Arca, Inc.); Order Granting Approval to Proposed Rule Change Relating to Trade Shredding

DOCUMENT SUMMARY:

April 24, 2006.

I. Introduction

On February 3, 2006, the Pacific Exchange, Inc. (``PCX'' 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 19b4 thereunder,\2\ a proposed rule change relating to trade shredding.\3\ The proposed rule change was published for comment in the Federal Register on March 20, 2006.\4\ The Commission received no comments on the proposal. This order approves the proposed rule change.
\1\ 15 U.S.C. 78s(b)(l).
\2\ 17 CFR 240.19b4.
\3\ On March 6, 2006, the Exchange filed with the Commission a proposed rule change, which was effective upon filing, to change the name of the Exchange, as well as several other related entities, to reflect the recent acquisition of PCX by Archipelago Holdings, Inc. (``Archipelago'') and the merger of the NYSE with Archipelago. See File No. SRPCX200624. All references herein have been changed to reflect the aforementioned rule change.
\4\ See Securities Exchange Act Release No. 53469 (March 10, 2006), 71 FR 14045.

II. Description of the Proposal

The Exchange proposed to amend its rules governing the NYSE Arca Marketplace, the equities trading facility of the NYSE Arca Equities, Inc., to prohibit the practice of splitting orders into multiple smaller orders for any purpose other than seeking the best execution of the entire order.

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\ particularly section 6(b)(5) of the Act 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 securities transactions, to remove impediments to and to perfect the mechanism of a free and open market and a national market system and, in general, to protect investors and the public interest.\6\ The Commission believes that the proposed rule change should help eliminate the distortive practice of trade shredding, and, therefore, promote just and equitable principles of trade.
\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).

IV. Conclusion

It is therefore ordered, pursuant to section 19(b)(2) of the Act,\7\ that the proposed rule change (File No. SRPCX200610), be and hereby is, approved.
\7\ 15 U.S.C. 78s(b)(2).

\8\ 17 CFR 200.303(a)(12).

For the Commission, by the Division of Market Regulation, pursuant to delegated authority.\8\
Nancy M. Morris,
Secretary.
[FR Doc. E66640 Filed 5206; 8:45 am]
BILLING CODE 801001P

SUMMARY:

Pacific Exchange, Inc.,

DOCUMENT BODY 2:

April 24, 2006.

I. Introduction

On February 3, 2006, the Pacific Exchange, Inc. (``PCX'' 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 19b4 thereunder,\2\ a proposed rule change relating to trade shredding.\3\ The proposed rule change was published for comment in the Federal Register on March 20, 2006.\4\ The Commission received no comments on the proposal. This order approves the proposed rule change.
\1\ 15 U.S.C. 78s(b)(l).
\2\ 17 CFR 240.19b4.
\3\ On March 6, 2006, the Exchange filed with the Commission a proposed rule change, which was effective upon filing, to change the name of the Exchange, as well as several other related entities, to reflect the recent acquisition of PCX by Archipelago Holdings, Inc. (``Archipelago'') and the merger of the NYSE with Archipelago. See File No. SRPCX200624. All references herein have been changed to reflect the aforementioned rule change.
\4\ See Securities Exchange Act Release No. 53469 (March 10, 2006), 71 FR 14045.

II. Description of the Proposal

The Exchange proposed to amend its rules governing the NYSE Arca Marketplace, the equities trading facility of the NYSE Arca Equities, Inc., to prohibit the practice of splitting orders into multiple smaller orders for any purpose other than seeking the best execution of the entire order.

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\ particularly section 6(b)(5) of the Act 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 securities transactions, to remove impediments to and to perfect the mechanism of a free and open market and a national market system and, in general, to protect investors and the public interest.\6\ The Commission believes that the proposed rule change should help eliminate the distortive practice of trade shredding, and, therefore, promote just and equitable principles of trade.
\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).

IV. Conclusion

It is therefore ordered, pursuant to section 19(b)(2) of the Act,\7\ that the proposed rule change (File No. SRPCX200610), be and hereby is, approved.
\7\ 15 U.S.C. 78s(b)(2).

\8\ 17 CFR 200.303(a)(12).

For the Commission, by the Division of Market Regulation, pursuant to delegated authority.\8\
Nancy M. Morris,
Secretary.
[FR Doc. E66640 Filed 5206; 8:45 am]
BILLING CODE 801001P