[Federal Register Volume 67, Number 36 (Friday, February 22, 2002)]
[Notices]
[Page 8330]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-4233]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-45452; File No. SR-NYSE-2001-49]


Self-Regulatory Organizations; New York Stock Exchange, Inc.; 
Order Granting Approval to Proposed Rule Change Amending New York Stock 
Exchange Rule 902 (Off-Hours Trading Orders)

February 15, 2002.
    On December 11, 2001, the New York Stock Exchange, Inc. (``NYSE'') 
filed with the Securities and Exchange Commission (``Commission''), 
pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ a proposed rule change 
amending NYSE Rule 902, Off-Hours Trading Orders, to permit the 
submission of member to member coupled orders in Crossing Session I in 
order to close out error positions.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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    The proposed rule change was published for comment in the Federal 
Register on January 14, 2002.\3\ The Commission received no comments on 
the proposal.
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    \3\ See Securities Exchange Act Release No. 45251 (January 8, 
2002), 67 FR 1793.
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    After careful review, the Commission finds that the proposed rule 
change is consistent with the requirements of the Act and the rules and 
regulations thereunder applicable to a national securities exchange,\4\ 
and, in particular, the requirements of section 6 of the Act \5\ and 
the rules and regulations thereunder. The Commission finds specifically 
that the proposed rule change is consistent with section 6(b)(5) of the 
Act.\6\ Section 6(b)(5) \7\ requires, among other things, that the 
rules of an exchange be designed to prevent fraudulent and manipulative 
acts and practices, promote just and equitable principles of trade, to 
foster cooperation and coordination with persons engaged in 
facilitating transactions in securities, 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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    \4\ In approving this proposed rule change, the Commission has 
considered the rule's impact on efficiency, competition, and capital 
formation. 15 U.S.C. 78c(f).
    \5\ 15 U.S.C. 78f.
    \6\ 15 U.S.C. 78f(b)(5).
    \7\ Id.
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    The Commission believes that the proposed rule change promotes the 
objectives of this section of the Act. Specifically, the proposed rule 
change allows the submission of member to member coupled orders during 
Crossing Session I, when they normally would not be permitted, for the 
limited purpose of closing out error positions.\8\ The Commission 
believes that this limited exception will foster cooperation and 
coordination with persons engaged in facilitating transactions in 
securities and remove impediments to and perfect the mechanism of a 
free and open market and a national market system by removing an 
impediment to closing out error positions. Moreover, the Commission 
believes that it is generally in the public interest to facilitate the 
closing out of error positions.
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    \8\ The NYSE confirmed that the new exception to NYSE Rule 
902(a)(ii) (embodied in proposed NYSE Rule 902(a)(ii)(C)) is subject 
to NYSE Rule 906, Impact of Trading Halts on Off-Hours Trading, and, 
therefore, the proposed exception does not permit trading of a 
security that is subject to a trading halt under NYSE Rule 906 (a) 
or (b). Telephone discussion between Donald Siemer, Director Rule 
Development, Market Surveillance Division, NYSE, and Christopher B. 
Stone, Attorney Advisor, Division of Market Regulation, Commission 
(January 7, 2002).
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    It is therefore ordered, pursuant to section 19(b)(2) of the 
Act,\9\ that the proposed rule change (File No. SR-NYSE-2001-49) be, 
and it hereby is, approved.
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    \9\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 02-4233 Filed 2-21-02; 8:45 am]
BILLING CODE 8010-01-M