[Federal Register Volume 66, Number 23 (Friday, February 2, 2001)]
[Notices]
[Pages 8828-8829]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-2816]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-43880; File No. SR-NYSE-00-63]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the New York Stock Exchange, 
Inc. Relating to the Expansion of the Maximum Share Size Parameter for 
Single Orders Entered Into the SuperDot System

January 23, 2001.
    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 December 29, 2000, the New York Stock Exchange, Inc. (``NYSE'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``SEC'' or ``Commission'') the proposed rule change as described in 
Items I, II and III below, which Items have been prepared by the 
Exchange. On January 10, 2001, the Exchange amended its proposal.\3\ 
Pursuant to rule 19b-4(f)(5),\4\ the Exchange has designated this 
proposal as one effecting a change in an existing order-entry or 
trading system of a self-regulatory organization that does not: (1) 
Significantly affect the protection of investors or the public 
interest, (2) impose any significant burden on competition, or (3) 
significantly have the effect of limiting the access to or availability 
of the system. As such, the proposed rule change is immediately 
effective upon the Commission's receipt of this filing, as amended.\5\ 
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 240.19b-4.
    \3\ See Letter from James E. Buck, Senior Vice President and 
Secretary, NYSE, to Jack Drogin, Assistant Director, Division of 
Market Regulation, Commission, dated January 10, 2001 (``Amendment 
No. 1''). In Amendment No. 1, the Exchange reduced the proposed 
maximum SuperDot System share size parameter from three million 
shares to one million shares.
    \4\ 17 CFR 240.19b-4(f)(5).
    \5\ For purposes of calculating the 60-day abrogation period, 
the Commission considers the period to begin as of the date the 
Exchange filed Amendment No. 1, January 10, 2001.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of 
Substance of the Proposed Rule Change

    The proposed rule change expands to one million shares the maximum 
share size parameter for single orders entered into the SuperDot System 
(``SuperDot System'' or ``SuperDot'').\6\
---------------------------------------------------------------------------

    \6\ See Amendment No. 1 supra note 3.
---------------------------------------------------------------------------

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 Exchange 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 and is set forth in Sections A, B, and C below.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange's SuperDot System provides automated order routing and 
reporting services to facilitate the timely and effective transmission, 
execution, and reporting of market and limit orders on the Exchange. 
Pursuant to Exchange

[[Page 8829]]

Rule 123B(a), members and member organizations may utilize the SuperDot 
System to transmit orders of such size as the Exchange may specify from 
time to time.
    The purpose of this filing is to amend the maximum share size 
parameter for single market and limit orders entered into the SuperDot 
System. Currently, single market orders up to 30,099 shares and single 
limit orders up to 99,999 shares may be entered into the SuperDot 
System. The Exchange proposes to increase the maximum order size for 
both market and limit orders to 1,000,000 shares.\7\ The increase in 
maximum order size would become effective in two stages, with an 
initial increase to 500,000 shares, followed in six months by an 
increase to 1,000,000 shares.
---------------------------------------------------------------------------

    \7\ See Amendment No. 1, supra note 3.
---------------------------------------------------------------------------

    The Exchange believes that the proposed increase will provide many 
benefits to users of the SuperDot System. Specifically, the NYSE 
believes that the proposal will facilitate openings and closings by 
increasing the number of shares that can be accommodated, especially in 
initial public offerings. In addition, the NYSE notes that the proposal 
will eliminate the need for firms and institutions to break up large 
orders to make them SuperDot eligible; streamline the cancel and 
replace process; and eliminate some of the paper from the floor, which 
will support the goal of having a ``paperless'' floor. According to the 
NYSE, the proposed increase will also be compatible with the maximum 
share size capabilities of the NYSE's Broker Booth Support System. In 
addition, the NYSE states that the proposal would help to facilitate 
the electronic capture of orders as required by Exchange Rule 123.\8\
---------------------------------------------------------------------------

    \8\ See Securities Exchange Act Release No. 43689 (December 7, 
2000), 65 FR 79145 (December 18, 2000) (order approving File No. SR-
NYSE-98-25).
---------------------------------------------------------------------------

2. Statutory Basis
    The basis under the Act for the proposed rule change is the 
requirement under Section 6(b)(5) of the Act \9\ that an exchange has 
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.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

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.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants or Others

    The Exchange has neither solicited not received written comments on 
the proposed rule change, not necessary or appropriate in furthering of 
the purposes of the Act.

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 and subparagraph (f)(5) of Rule 19b-4 thereunder 
because it institutes a change in an existing order-entry or trading 
system that (1) does not significantly affect the protection of 
investors or the public interest; (2) does not impose any significant 
burden on competition; and (3) does not have the effect of limiting 
access to or availability of the system. Any 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.

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. Persons making written submissions 
should file six copies thereof with the Secretary, Securities and 
Exchange Commission, 450 Fifth Street, NW., Washington, DC 20549-0609. 
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. Copies of such filing will also be 
available for inspection and copying at the principal office of the 
NYSE.
    All submissions should refer to the File No. SR-NYSE-00-63 and 
should be submitted by February 23, 2001.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\10\
---------------------------------------------------------------------------

    \10\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 01-2816 Filed 2-1-01; 8:45 am]
BILLING CODE 8010-01-M