Browse: Departments Dates Agencies
SECURITIES AND EXCHANGE COMMISSION
Securities and Exchange Commission
DOCUMENT ID: [Release No. 34-57035; File No. SR-NYSE-2007-117]
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 To Establish a New Non-Regulatory Trading Halt Condition Under Rule 123D Designated as ``Investment Company Units or Index-Linked Securities''
DOCUMENT SUMMARY: December 21, 2007.
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 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.
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b4.
I. SelfRegulatory 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 nonregulatory trading halt condition designated as ``Investment
Company Units or IndexLinked Securities.'' This condition may be used
with respect to Investment Company Units (commonly known as exchange
traded funds (``ETFs'')) and indexlinked 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. SelfRegulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the selfregulatory 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. SelfRegulatory 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 indexlinked securities
and ETFs from the Exchange to NYSE Arca by December 31, 2007. The
Exchange has requested issuers of ETFs and indexlinked 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 indexlinked 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 indexlinked 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 indexlinked 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 nonregulatory trading halt condition designated as ``Investment Company Units or IndexLinked 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 indexlinked securities that remain listed on NYSE will be subject to a trading halt pursuant to the Rule 123D ``Investment Company Units or IndexLinked 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.
\3\ 15 U.S.C. 78f(b).
\4\ 15 U.S.C. 78f(b)(5).
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
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 19b4(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.
\5\ 15 U.S.C. 78s(b)(3)(A).
\6\ 17 CFR 240.19b4(f)(6).
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) \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 30day operative delay period. The Commission
believes that waiver of the 30day 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 nonregulatory 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. \7\ 17 CFR 240.19b4(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).
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\
\9\ 15 U.S.C. 78s(b)(3)(C).
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 SRNYSE2007117. 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 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 SRNYSE2007117 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\
\10\ 17 CFR 200.303(a)(12).
Nancy M. Morris,
Secretary.
[FR Doc. E725376 Filed 122807; 8:45 am]
BILLING CODE 801101P
SUMMARY: New York Stock Exchange LLC,
DOCUMENT BODY 2: December 21, 2007.
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 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.
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b4.
I. SelfRegulatory 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 nonregulatory trading halt condition designated as ``Investment
Company Units or IndexLinked Securities.'' This condition may be used
with respect to Investment Company Units (commonly known as exchange
traded funds (``ETFs'')) and indexlinked 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. SelfRegulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the selfregulatory 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. SelfRegulatory 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 indexlinked securities
and ETFs from the Exchange to NYSE Arca by December 31, 2007. The
Exchange has requested issuers of ETFs and indexlinked 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 indexlinked 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 indexlinked 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 indexlinked 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 nonregulatory trading halt condition designated as ``Investment Company Units or IndexLinked 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 indexlinked securities that remain listed on NYSE will be subject to a trading halt pursuant to the Rule 123D ``Investment Company Units or IndexLinked 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.
\3\ 15 U.S.C. 78f(b).
\4\ 15 U.S.C. 78f(b)(5).
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
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 19b4(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.
\5\ 15 U.S.C. 78s(b)(3)(A).
\6\ 17 CFR 240.19b4(f)(6).
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) \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 30day operative delay period. The Commission
believes that waiver of the 30day 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 nonregulatory 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. \7\ 17 CFR 240.19b4(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).
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\
\9\ 15 U.S.C. 78s(b)(3)(C).
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 SRNYSE2007117. 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 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 SRNYSE2007117 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\
\10\ 17 CFR 200.303(a)(12).
Nancy M. Morris,
Secretary.
[FR Doc. E725376 Filed 122807; 8:45 am]
BILLING CODE 801101P
Common CFR Searches
14 CFR Part 39 40 CFR Part 52 14 CFR Part 71 33 CFR Part 165 50 CFR Part 679 26 CFR Part 1 40 CFR Part 180 47 CFR Part 73 50 CFR Part 17 33 CFR Part 117 44 CFR Part 67 50 CFR Part 648 14 CFR Part 97 33 CFR Part 100 40 CFR Part 63 50 CFR Part 622 26 CFR Part 301 39 CFR Part 111 40 CFR Part 300 50 CFR Part 660 44 CFR Part 65 40 CFR Parts 52 and 81 40 CFR Part 271 47 CFR Part 64 50 CFR Part 665 47 CFR Part 76 50 CFR Part 229 14 CFR Part 23 14 CFR Part 25 21 CFR Part 522