[Federal Register Volume 73, Number 220 (Thursday, November 13, 2008)]
[Notices]
[Pages 67243-67244]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-26885]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-58899; File No. SR-NYSEArca-2008-116]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by NYSE Arca, Inc. Amending
Exchange Rule 6.39--Securities Accounts of Market Makers
November 5, 2008.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby
given that, on November 3, 2008, NYSE Arca, Inc. (``NYSE Arca'' or the
``Exchange'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I, II,
and III below, which Items have been prepared by the self-regulatory
organization. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend Exchange Rule 6.39--Securities
Accounts of Market Makers. The text of the proposed rule change is
attached as Exhibit 5, is available on the Exchange's Web site at
www.nyse.com, at the Exchange's principal office and at the
Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the self-regulatory 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 those 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 parts of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The purpose of this filing is to amend Rule 6.39 by modifying the
terms under which a clearing firm reports trade information to the
Exchange on behalf of a Market Maker.
Presently, with respect to transactions to be cleared into all
accounts carried for Market Makers, each clearing firm shall, on the
business day following order entry date report to the Exchange every
executed order entered by the Market Maker for the purchase or sale of
a security underlying options traded on the Exchange, as well as
opening and closing positions in all such securities held in each
account.
The Exchange does, on occasion, find the need to review Market
Maker order records in conjunction with an investigation, inquiries
regarding a specific trade, or a routine examination. However, since
this is not information that the Exchange typically uses on a daily
basis, there is no need for the Exchange to collect such information,
on a daily basis. Requiring this information to be reported on a daily
basis, instead of ``upon request'' creates an unnecessary burden on
Market Makers, clearing firms and the Exchange alike.
The Exchange hereby proposes to amend Rule 6.39 by removing the
obligation for a clearing firm to report such trades on a daily basis,
and instead require the firms to report such trades only upon request
of the Exchange. Supplying the Exchange with trade information, when
requested instead of on a daily basis, is consistent with the
requirements at both the International Securities Exchange (``ISE'')
\4\ and the Boston Options Exchange (``BOX'').\5\
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\4\ See ISE Rule 807(b)--Reports of Orders.
\5\ See BOX Trading Rules Chapter VI Sec. 7(b)--Reports of
Orders.
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2. Statutory Basis
This rule change is designed merely to create a more efficient
mechanism for clearing firms to report market maker trade information
to the Exchange. NYSE Arca believes that the proposed rule change is
consistent with Section 6(b) of the Act \6\ in general, and furthers
the objectives of Section 6(b)(5) of the Act \7\ in particular, because
it is
[[Page 67244]]
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 mechanism of a
free and open market and a national market system.
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\6\ 15 U.S.C. 78f (b).
\7\ 15 U.S.C. 78f (b)(5).
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B. Self-Regulatory 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. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were solicited or received with respect to the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Pursuant to Section 19(b)(3)(A) \8\ of the Act and Rule 19b-4(f)(6)
\9\ thereunder, NYSE Arca has designated this proposed rule change as
one that does not:
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\8\ 15 U.S.C. Sec. 78s(b)(3)(A).
\9\ 17 CRF 240.19b-4(f)(6).
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(i) Significantly affect the protection of investors or the public
interest;
(ii) Impose any significant burden on competition; and
(iii) 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.
The Exchange provided the Commission with written notice of its
intent to file this proposed rule change at least five business days
prior to the date of the filing. 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
Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
Send an e-mail to [email protected]. Please include
File Number SR-NYSEArca-2008-116 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street, NE., Washington, DC 20549-1090.
All submissions should refer to File Number SR-NYSEArca-2008-116. This
file number should be included on the subject line if e-mail 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 Section, 100 F Street,
NE., Washington, DC 20549-1090. Copies of the filing will also be
available for inspection and copying at NYSE Arca's principal office
and on its Internet Web site at http://www.nyse.com. 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-NYSEArca-2008-116 and should
be submitted on or before December 4, 2008.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
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\10\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-26885 Filed 11-12-08; 8:45 am]
BILLING CODE 8011-01-P