[Federal Register Volume 73, Number 46 (Friday, March 7, 2008)]
[Notices]
[Pages 12492-12493]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-4512]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-57412; File No. SR-NYSEArca-2008-21]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change Extending the
SizeQuote Mechanism Pilot Program for a Period of One Year
March 3, 2008.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on February 15, 2008, NYSE Arca, Inc. (``NYSE Arca'' or ``Exchange''),
filed with the Securities and Exchange Commission (``Commission'') the
proposed rule change as described in Items I and II below, which Items
have been prepared substantially by NYSE Arca. NYSE Arca has designated
the proposed rule change as one constituting a non-controversial rule
change under Section 19(b)(3)(A)(iii) of the Act \3\ and Rule 19b-
4(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.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A)(iii).
\4\ 17 CFR 240.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
NYSE Arca is proposing to amend its rules in order to extend its
SizeQuote Mechanism pilot program (``Pilot Program''),\5\ for a one-
year period ending February 15, 2009. The text of the proposed rule
change is available at http://www.nyse.com, NYSE Arca, and the
Commission's Public Reference Room.
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\5\ See NYSE Arca Rule 6.47(f).
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II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, NYSE Arca 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. NYSE Arca has prepared summaries, set forth in Sections
A, B, and C below, of the most significant aspects of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The purpose of this proposal is to extend, for a one year period,
the Exchange's SizeQuote Pilot Program. The Pilot Program was initially
established when the Exchange filed SR-PCX-2005-35.\6\ The Pilot
Program was subsequently extended,\7\ and was set to expire on February
15, 2008.
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\6\ See Securities Exchange Act Release No. 51576 (April 19,
2005), 70 FR 21488 (April 26, 2005).
\7\See Securities Exchange Act Release No. 53315 (February 15,
2006), 71 FR 9406 (February 23, 2006) (SR-PCX-2006-09); Securities
Exchange Act Release No. 55312 (February 16, 2007), 72 FR 8827
(February 27, 2007) (SR-NYSEArca-2007-16).
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The Exchange has represented that at the completion of the Pilot
Program, NYSE Arca would provide to the Commission a report summarizing
the effectiveness of the SizeQuote program. While the Exchange believes
that the SizeQuote Mechanism can be an effective tool for Floor Brokers
to use while executing large size orders in open outcry, the mechanism
has not been used frequently enough to supply sufficient evidence to
evaluate the effectiveness of the Pilot Program. In order to allow for
additional time to compile sufficient evidence as to the effectiveness
of the Pilot Program, NYSE Arca proposes to extend the Pilot Program
for an additional one-year period ending February 15, 2009.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\8\ in general, and furthers the
objectives of Section 6(b)(5), \9\ in particular, in that it is
designed to facilitate transactions in securities, to promote just and
equitable principles of trade, and to protect investors and the public
interest.
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\8\ 15 U.S.C. 78f.
\9\ 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.
[[Page 12493]]
C. Self-Regulatory 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
Because the foregoing proposed rule change does not: (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, it has become
effective pursuant to Section 19(b)(3)(A) of the Act \10\ and Rule 19b-
4(f)(6) thereunder.\11\
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\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 17 CFR 240.19b-4(f)(6). Rule 19b-4(f)(6) also requires the
self-regulatory organization to give the Commission notice of its
intent to file the proposed rule change, along with a brief
description and text of the proposed rule change, at least five
business days prior to the date of filing of the proposed rule
change, or such shorter time as designated by the Commission. The
Commission has determined to grant the Exchange's request to waive
the five day pre-filing notice requirement.
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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.
NYSE Arca has requested that the Commission waive the 30-day
operative delay to allow NYSE Arca to continue the existing Pilot
Program without interruption. The Commission believes that waiver of
the 30-day operative delay is consistent with the protection of
investors and the public interest because it will allow the Pilot
Program to continue uninterrupted for an additional year and allow the
Exchange more time to assess the effectiveness of the Pilot Program.
Accordingly, the Commission designates the proposal as operative upon
filing with the Commission.\12\
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\12\ For purposes only of waiving the 30-day operative delay of
this proposal, the Commission has considered the proposed rule's
impact on efficiency, competition, and capital formation. 15 U.S.C.
78c(f).
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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-2008-21 on the subject line.
Paper Comments
Send paper comments in triplicate to Nancy M. Morris,
Secretary, Securities and Exchange Commission, Station Place, 100 F
Street, NE., Washington, DC 20549-1090.
All submissions should refer to File Number SR-NYSEArca-2008-21. 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 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 NYSE Arca. 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-2008-21 and should
be submitted on or before March 28, 2008.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
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\13\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8-4512 Filed 3-6-08; 8:45 am]
BILLING CODE 8011-01-P