[Federal Register Volume 74, Number 3 (Tuesday, January 6, 2009)]
[Notices]
[Pages 483-485]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-31348]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-59168; File No. SR-NYSE-2008-139]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by New York Stock Exchange LLC
Amending Rule 48.10 To Extend the Temporary Provisions of the Rule
Relating to the Ability of the Exchange to Declare an Extreme Market
Volatility Condition and Suspend Certain NYSE Requirements Relating to
the Closing of Securities at the Exchange
December 29, 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 December 23, 2008, New York Stock Exchange LLC (``NYSE''
or the ``Exchange'') filed with the Securities and Exchange Commission
(the ``Commission'') the proposed rule change as described in Items I
and II 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 New York Stock Exchange (``NYSE'' or
the ``Exchange'') Rule 48.10 to extend the temporary provisions of the
rule relating to the ability of the Exchange to declare an extreme
market volatility condition and suspend certain NYSE requirements
relating to the closing of securities at the Exchange.
The text of the proposed rule change is available at http://www.nyse.com, NYSE, and 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,
[[Page 484]]
of the most significant parts of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend Rule 48.10 to temporarily extend the
provisions of the rule relating to declaring an extreme market
volatility condition at the close.
On October 2, 2008, the Exchange filed for immediate effectiveness
to amend NYSE Rule 48 to provide the Exchange with the ability to
suspend certain rules at the close when extremely high market
volatility could negatively affect the ability to ensure a fair and
orderly close.\4\ The Exchange amended Rule 48 on an immediate
effectiveness basis in order to respond swiftly to market conditions at
that time. Those amendments were adopted on a temporary basis with the
understanding that if the NYSE would like to adopt the closing
provisions on a permanent basis, such proposal must be filed under
Section 19(b)(2) of the Act.\5\
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\4\ See SEC Release No. 34-58743 (Oct. 7, 2008), 73 FR 60742
(Oct. 14, 2008) (SR-NYSE-2008-102).
\5\ 15 U.S.C. 78s(b)(2).
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The Exchange intends soon to file a rule proposal to amend Rules 48
and 123C to delete from Rule 48 the provisions relating to declaring an
extreme market volatility condition at the close and add them in
modified form to Rule 123C (the ``Rule 48/123C filing''). That rule
proposal would be filed under Section 19(b)(2) of the Securities
Exchange Act of 1934 (the ``Act'').\6\ The Exchange now proposes to
temporarily extend the NYSE Alternext Equities Rule 48 at-the-close
provisions pending the outcome of the Rule 48/123C filing. Accordingly,
the Exchange proposes to amend Rule 48.10 to provide that the
provisions of that rule relating to declaring an extreme market
volatility condition at the close will end on March 27, 2009.
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\6\ Id.
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2. Statutory Basis
The basis under the Act for this proposed rule change is the
requirement under Section 6(b)(5) \7\ 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.
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\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
Because the foregoing proposed rule change: (1) Does not
significantly affect the protection of investors or the public
interest; (2) does not impose any significant burden on competition;
and (3) by its terms, does not become operative for 30 days after the
date of filing, or such shorter time as the Commission may designate if
consistent with the protection of investors and the public interest,
the proposed rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \8\ and Rule 19b-4(f)(6) thereunder.\9\
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\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 17 CFR 240.19b-4(f)(6).
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A proposed rule change filed under Rule 19b-4(f)(6) normally does
not become operative for 30 days after the date of filing.\10\ However,
Rule 19b-4(f)(6)(iii) permits the Commission to designate a shorter
time if such action is consistent with the protection of investors and
the public interest. The Exchange requested that the Commission waive
the 30-day operative delay, as specified in Rule 19b-4(f)(6)(iii),\11\
which would make the rule change effective and operative upon filing.
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\10\ 17 CFR 240.19b-4(f)(6)(iii). In addition, Rule 19b-
4(f)(6)(iii) 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 Exchange has satisfied this requirement.
\11\ 17 CFR 240.19b-4(f)(6)(iii).
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The Commission believes that waiving the 30-day operative delay is
consistent with the protection of investors and the public interest
because it will allow the Exchange to extend without interruption the
provisions of Rule 48 regarding the Exchange's ability to declare an
extreme market volatility condition at the close and suspend certain
rules relating to closing of securities on the Exchange. These
provisions are currently scheduled to expire on December 31, 2008. The
Commission notes the Exchange's representation that it soon intends to
file a proposal to establish permanent rules regarding closing of
securities subject to an extreme order imbalance at the close. In light
of the foregoing, the Commission designates the proposal operative upon
filing.\12\
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\12\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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At any time within 60 days of the filing of such 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.\13\
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\13\ 15 U.S.C. 78s(b)(3)(C).
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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-NYSE-2008-139 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-NYSE-2008-139. 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
[[Page 485]]
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 SR-NYSE-2008-139 and should be
submitted on or before January 27, 2009.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
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\14\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-31348 Filed 1-5-09; 8:45 am]
BILLING CODE 8011-01-P