[Federal Register Volume 69, Number 97 (Wednesday, May 19, 2004)]
[Notices]
[Pages 28969-28970]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-11257]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-49682; File No. SR-NYSE-2004-09]


Self-Regulatory Organizations; Order Granting Approval of 
Proposed Rule Change by the New York Stock Exchange, Inc., and Notice 
of Filing and Order Granting Accelerated Approval to Amendment No. 1 To 
Amend NYSE Rule 123C Relating to Market-on-Close Policy and Expiration 
Procedures

May 11, 2004.

I. Introduction

    On February 19, 2004, the New York Stock Exchange, Inc. (``NYSE'' 
or ``Exchange'') 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 to amend NYSE Rule 123C relating to Market-on-
Close Policy and Expiration Procedures. The proposed rule change was 
published for comment in the Federal Register on April 1, 2004.\3\ The 
Commission received no comments on the proposal.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 49476 (March 25, 
2004), 69 FR 17255.
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    On April 26, 2004, the Exchange amended the proposed rule 
change.\4\ Amendment No. 1 adds ``LOC'' to the first sentence of 
section (3)(B) of NYSE Rule 123C, which was inadvertently excluded from 
the rule text of the Exchange's original filing.
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    \4\ See letter from Darla C. Stuckey, Corporate Secretary, NYSE, 
to Nancy J. Sanow, Assistant Director, Division of Market Regulation 
(``Division''), Commission, dated April 26, 2004 (``Amendment No. 
1''). In Amendment No. 1, the NYSE corrected a typographical error. 
Additionally, the NYSE confirmed that by making this correction to 
paragraph (3)(B) of the proposed rule language, the NYSE clarifies 
what is established NYSE practice where there is no order imbalance. 
Amendment No. 1 does not expand the scope of the proposed rule 
change, but instead only clarifies rule language that represents 
existing practices at the NYSE. See, telephone conversation between 
Donald Siemer, Director, Market Surveillance, NYSE, and Joseph P. 
Morra, Special Counsel, Division, Commission, dated May 10, 2004.
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    This order approves the proposed rule change. Simultaneously, the 
Commission provides notice of filing of Amendment No. 1 and grants 
accelerated approval of Amendment No. 1.

II. Discussion and Commission Findings

    The Commission has reviewed carefully the proposed rule change and 
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 and, in particular, the requirements of 
Section 6(b) of the Act.\5\ Specifically, the Commission finds that the 
proposed rule change is consistent with Section 6(b)(5) of the Act,\6\ 
in that it is designed to, among other things, prevent fraudulent and 
manipulative acts and practices, 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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    \5\ 15 U.S.C. 78f.
    \6\ 15 U.S.C. 78f(b)(5).
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    The Commission believes the electronic entry of all market-on-close 
(``MOC'') and limit-on-close (``LOC'') orders may allow market 
participants greater control in active trading crowds, and may enhance 
the dissemination of accurate information to all participants, because 
publications will be systematically generated. Furthermore, the 
Commission believes that moving the MOC and LOC deadline from 3:40 p.m. 
to 3:50 p.m. may allow traders and floor brokers greater control over 
the execution of customer orders and greater participation in active 
markets. The Exchange stated that its electronic entry systems for MOC 
and LOC order processing would require technology upgrades. 
Accordingly, the Exchange has represented that it will notify the 
Exchange membership and the Commission of the timing and implementation 
of such electronic entry systems.
    For these reasons, the Commission finds that the proposed rule 
change is consistent with the Act.\7\
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    \7\ In approving 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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    The Commission finds good cause for approving Amendment No. 1 prior 
to the thirtieth day after the date of publication of notice of filing 
thereof in the Federal Register. Amendment No. 1 added ``LOC'' to the 
first sentence of section (3)(B) of NYSE Rule 123C. Since Amendment No. 
1 makes only a technical change to the proposed rule text, the 
Commission finds good cause to accelerate approval of Amendment No. 1 
to the proposed rule change.\8\
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    \8\ See footnote 4, supra.
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III. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning Amendment No. 1, including whether Amendment No. 1 
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 e-mail to [email protected]. Please include File 
Number SR-NYSE-2004-09 on the subject line.
    Paper comments:
     Send paper comments in triplicate to Jonathan G. Katz, 
Secretary, Securities and Exchange Commission, 450 Fifth Street, NW., 
Washington, DC 20549-0609.
    All submissions should refer to File Number SR-NYSE-2004-09. 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, 450 Fifth 
Street, NW., Washington, DC 20549. Copies of such filing also will be 
available for inspection and copying at the principal office of the 
NYSE. 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-2004-09 and should be submitted on or before June 9, 2004.

[[Page 28970]]

IV. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\9\ that the proposed rule change (SR-NYSE-2004-09) be, and it 
hereby is, approved, and that Amendment No. 1 to the proposed rule 
change be, and hereby is, approved on an accelerated basis.
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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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J. Lynn Taylor,
Assistant Secretary.
[FR Doc. 04-11257 Filed 5-18-04; 8:45 am]
BILLING CODE 8010-01-P