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SECURITIES AND EXCHANGE COMMISSION
Securities and Exchange Commission
DOCUMENT ID: [Release No. 34-54837; File No. SR-NYSE-2006-102]
NOTICE: NOTICES
ACTION: Self-regulatory organizations; proposed rule changes:
SUBJECT CATEGORY: Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to the Inclusion of an Additional Security in the Pilot to Put Into Operation Certain Rule Changes Pending Before the Securities and Exchange Commission to Coincide With the Exchange's Implementation of Phase 3 of the NYSE HYBRID MARKETSM and the Substitution of the Name and Trading Symbol of a Security Operating in the Pilot A
DOCUMENT SUMMARY: November 29, 2006.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b4 thereunder,\2\ notice is hereby given that
on November 28, 2006, the New York Stock Exchange LLC (``NYSE'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I, II,
and III below, which Items have been substantially prepared by the
Exchange. NYSE filed the proposed rule change pursuant to Section
19(b)(3)(A) of the Act \3\ and Rule 19b4(f)(6) thereunder,\4\ which
renders the proposal effective upon filing with the Commission. The
Commission is publishing this notice to solicit comments on the proposed rule change from interested persons.
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b4.
\3\ 15 U.S.C. 78s(b)(3)(A).
\4\ 17 CFR 240.19b4(f)(6).
I. SelfRegulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change
The Exchange is proposing to include an additional security to
participate in the Exchange's current pilot (``Pilot'') program which
puts into operation certain rule changes pending before the Commission
to coincide with the Exchange's implementation of NYSE HYBRID
MARKETSM (``Hybrid Market'') \5\ Phase 3. The Exchange
further seeks to change the name of a security currently operating
under the Pilot and substitute the name and trading symbol of its
successor entity. The relevant securities are identified in Exhibit 3
to the filing, which is available on the NYSE's Web site (http://www.nyse.com ), at the principal office of the NYSE, and at the
Commission's Public Reference Room.
\5\ The Hybrid Market was approved on March 22, 2006. See
Securities Exchange Act Release No. 53539 (March 22, 2006), 71 FR 16353 (March 31, 2006).
II. SelfRegulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
Sections A, B, and C below, of the most significant aspects of such statements.
A. SelfRegulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change
1. Purpose
On October 5, 2006, the Commission approved an Exchange Pilot \6\
to, among other things, put into operation certain proposed
modifications to Exchange Rules that are currently pending \7\ before
the Commission to coincide with the Exchange's implementation of the
Hybrid Market Phase 3. The Pilot commenced on October 6, 2006 \8\ and
is scheduled to terminate on the close of business November 30, 2006
\9\ or the earlier of Commission approval of the Omnibus Filing,\10\
Stabilization Filing and the Block Cross Filing while the Commission
continues to review the aforementioned pending filings. The Pilot
applies to a group of securities, known as Phase 3 Pilot securities (``Pilot securities'').\11\
\6\ See Securities Exchange Act Release Nos. 54578, 71 FR 60216
(October 12, 2006) and 54610 (October 16, 2006), 71 FR 62142 (October 23, 2006).
\7\ See Securities Exchange Act Release Nos. 54520 (September
27, 2006), 71 FR 57590 (September 29, 2006) (SRNYSE200665 and the
Amendments thereto proposing to amend several Exchange Rules to
clarify certain definitions and systemic processes (``Omnibus
Filing'')); 54504 (September 26, 2006), 71 FR 57011 (September 28, 2006) (SRNYSE 200676 proposing to amend the specialist
stabilization requirements set forth in Exchange Rule 104.10
(``Stabilization Filing'')); and SRNYSE200673 (filed on September
13, 2006) and Amendment No. 2 thereto (filed on October 13, 2006)
(proposing to amend Exchange Rule 127 which governs the execution of
a block cross transaction at a price outside the prevailing NYSE
quotation (``Block Cross Filing''). The Commission notes that it
approved the Omnibus Filing on November 27, 2006. See Securities Exchange Act Release No. 54820.
\8\ The changes related to stop orders and stop limit orders
proposed in the Omnibus Filing were implemented on October 16, 2006
in order to give customers and member organizations sufficient time
to make any changes necessary as a result of the elimination of stop limit orders.
\9\ On October 31, 2006 the Exchange filed to extend the Pilot
until November 30, 2006. See Securities Exchange Act Release No.
54675 (October 31, 2006), 71 FR 65019 (November 6, 2006). The
extension made clear that approval of any one of the pending filings
would act to terminate the operation of the rules associated with
the approved filing from the Pilot. Accordingly, the changes
approved in the Omnibus Filing are no longer part of the Pilot. The
Pilot shall not terminate in its entirety unless and until all pending filings are approved or November 30, 2006.
\10\ See note 7 supra.
\11\ Phase 3 Pilot Securities are posted on the Exchange's Web
site. The securities posted on the Exchange's Web site include
securities added to operate under the Pilot pursuant to Securities
Exchange Act Release No. 54685 (November 1, 2006), 71 FR 65559 (November 8, 2006).
The Exchange is currently in the process of phasing in the securities operating under the Pilot. As expected, the Pilot is operating with minimal problems and the benefits are proving invaluable. The Pilot is providing the Exchange with the opportunity to identify and address any system problems. Moreover, the Exchange has the ability to identify and incorporate beneficial system changes that become apparent as a result of usage in real time and under real market conditions.
[[Page 70576]]
The Exchange further has the ability to have real time user interface which is proving very useful to the Exchange. In addition to its usefulness to the Exchange, the Pilot is providing the current users with essential practical experience with the new systems and processes in a wellmodulated way, in real time and under real market conditions that cannot be completely replicated in the mocktrading environment.
As of Tuesday November 28, 2006, the Exchange will complete the phasing in of all Banc of America Specialists allocated securities approved to operate under the Pilot. In order to continue increasing the users that may benefit from the enhanced educational and supervisory training experience that the Pilot provides, the Exchange seeks through this filing to include an additional security handled by Banc of America Specialists for participation in the Pilot. Specifically, the Exchange seeks to include the security traded under the symbol GE (General Electric Company).
The Exchange believes that the addition of this security will continue to provide an increased number of individual specialists with the educational opportunity of real time experience under real market conditions that cannot be completely replicated in the mocktrading environment. It will further provide an increased number of the firm's supervisory personnel with additional opportunities for supervisory training in real time and under real market conditions.
In addition to including GE in the Pilot, the Exchange seeks to substitute the trading symbol for Lucent Technologies which is currently operating in the Pilot under the trading symbol LU with the symbol ALU to reflect the December 1, 2006 business combination of Lucent Technologies with Alcatel. The Exchange therefore seeks to change the trading symbol LU to ALU in order to accurately reflect the successor entity which is now AlcatelLucent.
Accordingly, the Exchange believes that the inclusion of this additional security will only further the Exchange's ability to identify and address any system problems and to identify and incorporate beneficial system changes while providing the new users with real time education.
The securities proposed for inclusion in the Pilot are identified in Exhibit 3 to the filing.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the requirement under Section 6(b)(5) \12\ of the Act \13\ that an
Exchange have rules that are designed to promote just and equitable
principles of trade, 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. The proposed
rule change also is designed to support the principles of Section
11A(a)(1) \14\ in that it seeks to assure economically efficient execution of securities transactions.
\12\ 15 U.S.C. 78f(b)(5).
\13\ 15 U.S.C. 78a.
\14\ 15 U.S.C. 78k1(a)(1).
B. SelfRegulatory 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. SelfRegulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants or Others
The Exchange has neither solicited nor received written comments on the proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action
The proposed rule change is filed pursuant to Section 19(b)(3)(A) \15\ of the Act and Rule 19b4(f)(6) \16\ thereunder.
\15\ 15 U.S.C. 78s(b)(3)(A).
\16\ 17 CFR 240.19b4(f)(6)(iii).
This proposed rule change does not significantly affect the protection of investors or the public interest and does not impose any significant burden on competition. Accordingly, the Exchange believes that this amendment is noncontroversial.
In connection with the filing being made under Section 19(b)(3)(A) of the Act, the Exchange requests that the Commission waive the 30day delayed operative date and fiveday prefiling period of Rule 19b 4(f)(6)(iii).
A proposed rule change filed under Rule 19b4(f)(6) normally may
not become operative prior to 30 days after the date of filing.
However, Rule 19b4(f)(6)(iii) \17\ 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 30day operative delay and designate the proposed
rule change immediately operative upon filing. The Commission is
exercising authority to waive the fiveday prefiling requirement and
believes that waiver of the 30day operative delay is consistent with
the protection of investors and the public interest. Specifically, the
Commission believes that the proposal could allow Banc of America
Specialists to provide more of its personnel with the educational
opportunity of realtime experience with real market conditions under
the Pilot. In addition, the Commission believes that replacing LU with
ALU is appropriate so that the successor security to LU would continue
to trade in a similar manner on the Exchange. Accordingly, the
Commission designates the proposal to be effective and operative upon filing with the Commission.\18\
\17\ 17 CFR 240.19b4(f)(6)(iii).
\18\ For purposes only of waiving the 30day operative delay,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. 15 U.S.C. 78c(f).
At any time within 60 days of the filing of the proposed rule change, the Commission may summarily abrogate such 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.
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
Paper Comments
All submissions should refer to File Number SRNYSE2006102. This file number should be included on the subject line if email 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
[[Page 70577]]
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. 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 NYSE2006102 and should be submitted on or before December 26, 2006.
For the Commission, by the Division of Market Regulation, pursuant to delegated authority.\19\
\19\ 17 CFR 200.303(a)(12).
Nancy M. Morris,
Secretary.
[FR Doc. E620517 Filed 12406; 8:45 am]
BILLING CODE 801101P
SUMMARY: New York Stock Exchange LLC,
DOCUMENT BODY 2: November 29, 2006.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b4 thereunder,\2\ notice is hereby given that
on November 28, 2006, the New York Stock Exchange LLC (``NYSE'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I, II,
and III below, which Items have been substantially prepared by the
Exchange. NYSE filed the proposed rule change pursuant to Section
19(b)(3)(A) of the Act \3\ and Rule 19b4(f)(6) thereunder,\4\ which
renders the proposal effective upon filing with the Commission. The
Commission is publishing this notice to solicit comments on the proposed rule change from interested persons.
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b4.
\3\ 15 U.S.C. 78s(b)(3)(A).
\4\ 17 CFR 240.19b4(f)(6).
I. SelfRegulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change
The Exchange is proposing to include an additional security to
participate in the Exchange's current pilot (``Pilot'') program which
puts into operation certain rule changes pending before the Commission
to coincide with the Exchange's implementation of NYSE HYBRID
MARKETSM (``Hybrid Market'') \5\ Phase 3. The Exchange
further seeks to change the name of a security currently operating
under the Pilot and substitute the name and trading symbol of its
successor entity. The relevant securities are identified in Exhibit 3
to the filing, which is available on the NYSE's Web site (http://www.nyse.com ), at the principal office of the NYSE, and at the
Commission's Public Reference Room.
\5\ The Hybrid Market was approved on March 22, 2006. See
Securities Exchange Act Release No. 53539 (March 22, 2006), 71 FR 16353 (March 31, 2006).
II. SelfRegulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
Sections A, B, and C below, of the most significant aspects of such statements.
A. SelfRegulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change
1. Purpose
On October 5, 2006, the Commission approved an Exchange Pilot \6\
to, among other things, put into operation certain proposed
modifications to Exchange Rules that are currently pending \7\ before
the Commission to coincide with the Exchange's implementation of the
Hybrid Market Phase 3. The Pilot commenced on October 6, 2006 \8\ and
is scheduled to terminate on the close of business November 30, 2006
\9\ or the earlier of Commission approval of the Omnibus Filing,\10\
Stabilization Filing and the Block Cross Filing while the Commission
continues to review the aforementioned pending filings. The Pilot
applies to a group of securities, known as Phase 3 Pilot securities (``Pilot securities'').\11\
\6\ See Securities Exchange Act Release Nos. 54578, 71 FR 60216
(October 12, 2006) and 54610 (October 16, 2006), 71 FR 62142 (October 23, 2006).
\7\ See Securities Exchange Act Release Nos. 54520 (September
27, 2006), 71 FR 57590 (September 29, 2006) (SRNYSE200665 and the
Amendments thereto proposing to amend several Exchange Rules to
clarify certain definitions and systemic processes (``Omnibus
Filing'')); 54504 (September 26, 2006), 71 FR 57011 (September 28, 2006) (SRNYSE 200676 proposing to amend the specialist
stabilization requirements set forth in Exchange Rule 104.10
(``Stabilization Filing'')); and SRNYSE200673 (filed on September
13, 2006) and Amendment No. 2 thereto (filed on October 13, 2006)
(proposing to amend Exchange Rule 127 which governs the execution of
a block cross transaction at a price outside the prevailing NYSE
quotation (``Block Cross Filing''). The Commission notes that it
approved the Omnibus Filing on November 27, 2006. See Securities Exchange Act Release No. 54820.
\8\ The changes related to stop orders and stop limit orders
proposed in the Omnibus Filing were implemented on October 16, 2006
in order to give customers and member organizations sufficient time
to make any changes necessary as a result of the elimination of stop limit orders.
\9\ On October 31, 2006 the Exchange filed to extend the Pilot
until November 30, 2006. See Securities Exchange Act Release No.
54675 (October 31, 2006), 71 FR 65019 (November 6, 2006). The
extension made clear that approval of any one of the pending filings
would act to terminate the operation of the rules associated with
the approved filing from the Pilot. Accordingly, the changes
approved in the Omnibus Filing are no longer part of the Pilot. The
Pilot shall not terminate in its entirety unless and until all pending filings are approved or November 30, 2006.
\10\ See note 7 supra.
\11\ Phase 3 Pilot Securities are posted on the Exchange's Web
site. The securities posted on the Exchange's Web site include
securities added to operate under the Pilot pursuant to Securities
Exchange Act Release No. 54685 (November 1, 2006), 71 FR 65559 (November 8, 2006).
The Exchange is currently in the process of phasing in the securities operating under the Pilot. As expected, the Pilot is operating with minimal problems and the benefits are proving invaluable. The Pilot is providing the Exchange with the opportunity to identify and address any system problems. Moreover, the Exchange has the ability to identify and incorporate beneficial system changes that become apparent as a result of usage in real time and under real market conditions.
[[Page 70576]]
The Exchange further has the ability to have real time user interface which is proving very useful to the Exchange. In addition to its usefulness to the Exchange, the Pilot is providing the current users with essential practical experience with the new systems and processes in a wellmodulated way, in real time and under real market conditions that cannot be completely replicated in the mocktrading environment.
As of Tuesday November 28, 2006, the Exchange will complete the phasing in of all Banc of America Specialists allocated securities approved to operate under the Pilot. In order to continue increasing the users that may benefit from the enhanced educational and supervisory training experience that the Pilot provides, the Exchange seeks through this filing to include an additional security handled by Banc of America Specialists for participation in the Pilot. Specifically, the Exchange seeks to include the security traded under the symbol GE (General Electric Company).
The Exchange believes that the addition of this security will continue to provide an increased number of individual specialists with the educational opportunity of real time experience under real market conditions that cannot be completely replicated in the mocktrading environment. It will further provide an increased number of the firm's supervisory personnel with additional opportunities for supervisory training in real time and under real market conditions.
In addition to including GE in the Pilot, the Exchange seeks to substitute the trading symbol for Lucent Technologies which is currently operating in the Pilot under the trading symbol LU with the symbol ALU to reflect the December 1, 2006 business combination of Lucent Technologies with Alcatel. The Exchange therefore seeks to change the trading symbol LU to ALU in order to accurately reflect the successor entity which is now AlcatelLucent.
Accordingly, the Exchange believes that the inclusion of this additional security will only further the Exchange's ability to identify and address any system problems and to identify and incorporate beneficial system changes while providing the new users with real time education.
The securities proposed for inclusion in the Pilot are identified in Exhibit 3 to the filing.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the requirement under Section 6(b)(5) \12\ of the Act \13\ that an
Exchange have rules that are designed to promote just and equitable
principles of trade, 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. The proposed
rule change also is designed to support the principles of Section
11A(a)(1) \14\ in that it seeks to assure economically efficient execution of securities transactions.
\12\ 15 U.S.C. 78f(b)(5).
\13\ 15 U.S.C. 78a.
\14\ 15 U.S.C. 78k1(a)(1).
B. SelfRegulatory 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. SelfRegulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants or Others
The Exchange has neither solicited nor received written comments on the proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action
The proposed rule change is filed pursuant to Section 19(b)(3)(A) \15\ of the Act and Rule 19b4(f)(6) \16\ thereunder.
\15\ 15 U.S.C. 78s(b)(3)(A).
\16\ 17 CFR 240.19b4(f)(6)(iii).
This proposed rule change does not significantly affect the protection of investors or the public interest and does not impose any significant burden on competition. Accordingly, the Exchange believes that this amendment is noncontroversial.
In connection with the filing being made under Section 19(b)(3)(A) of the Act, the Exchange requests that the Commission waive the 30day delayed operative date and fiveday prefiling period of Rule 19b 4(f)(6)(iii).
A proposed rule change filed under Rule 19b4(f)(6) normally may
not become operative prior to 30 days after the date of filing.
However, Rule 19b4(f)(6)(iii) \17\ 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 30day operative delay and designate the proposed
rule change immediately operative upon filing. The Commission is
exercising authority to waive the fiveday prefiling requirement and
believes that waiver of the 30day operative delay is consistent with
the protection of investors and the public interest. Specifically, the
Commission believes that the proposal could allow Banc of America
Specialists to provide more of its personnel with the educational
opportunity of realtime experience with real market conditions under
the Pilot. In addition, the Commission believes that replacing LU with
ALU is appropriate so that the successor security to LU would continue
to trade in a similar manner on the Exchange. Accordingly, the
Commission designates the proposal to be effective and operative upon filing with the Commission.\18\
\17\ 17 CFR 240.19b4(f)(6)(iii).
\18\ For purposes only of waiving the 30day operative delay,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. 15 U.S.C. 78c(f).
At any time within 60 days of the filing of the proposed rule change, the Commission may summarily abrogate such 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.
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
Paper Comments
All submissions should refer to File Number SRNYSE2006102. This file number should be included on the subject line if email 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
[[Page 70577]]
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. 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 NYSE2006102 and should be submitted on or before December 26, 2006.
For the Commission, by the Division of Market Regulation, pursuant to delegated authority.\19\
\19\ 17 CFR 200.303(a)(12).
Nancy M. Morris,
Secretary.
[FR Doc. E620517 Filed 12406; 8:45 am]
BILLING CODE 801101P
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