[Federal Register Volume 72, Number 21 (Thursday, February 1, 2007)]
[Notices]
[Pages 4761-4762]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-1593]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-55178; File No. SR-NYSEArca-2007-02]


Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change Relating to NYSE 
Arca Marketplace Trading Sessions

January 25, 2007.
    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 January 12, 2007, NYSE Arca, Inc. (``NYSE Arca'' or ``Exchange''), 
through its wholly owned subsidiary NYSE Arca Equities, Inc. (``NYSE 
Arca Equities''), filed with the Securities and Exchange Commission 
(``Commission'') the proposed rule change as described in Items I and 
II below, which Items have been substantially prepared by the Exchange. 
The Exchange filed the proposal pursuant to Section 19(b)(3)(A) of the 
Act \3\ and Rule 19b-4(f)(6) thereunder,\4\ which renders the proposed 
rule change effective upon filing with the Commission.
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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).
    \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

    The Exchange proposes to update the list in NYSE Arca Equities Rule 
7.34 of securities eligible to trade in one or more, but not all three, 
of the Exchange's trading sessions. The securities to be added to the 
list are : (1) Claymore MACROshares Oil Up Tradeable Shares and (2) 
Claymore MACROshares Oil Down Tradeable Shares. These securities are 
traded on NYSE Arca, L.L.C. (``NYSE Arca Marketplace''), the equities 
trading facility of NYSE Arca Equities, pursuant to unlisted trading 
privileges (``UTP'') and are described in NYSE Arca Equities Rule 8.400 
(``Paired Trust Shares''). The Exchange also proposes to include a 
reference to NYSE Arca Equities Rule 8.400 in NYSE Arca Equities Rules 
7.34(a)(3)(A) and 7.34(a)(4)(A).
    The text of the proposed rule change is available on the Exchange's 
Web site (http://www.nysearca.com), at the principal office of the 
Exchange, and at 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 Exchange included statements 
concerning the purpose of, and basis for, the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item III below. The Exchange 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
    NYSE Arca Equities Rule 7.34 currently provides, in part, that the 
NYSE Arca Marketplace shall have three trading sessions each day: an 
Opening Session (1 a.m. Pacific Time (``PT'') to 6:30 a.m. PT), a Core 
Trading Session (6:30 a.m. PT to 1 p.m. PT), and a Late Trading Session 
(1 p.m. PT to 5 p.m. PT), and that the Core Trading Session for 
securities described in NYSE Arca Equities Rules 5.1(b)(13), 
5.1(b)(18), 5.2(j)(3), 8.100, 8.200, 8.201, 8.202, 8.203, and 8.300 
(each, a ``Derivative Securities Product'') shall conclude at 1:15 pm 
(PT).\5\ The Exchange proposes to amend NYSE Arca Equities Rule 
7.34(a)(3)(A) to add Paired Trust Shares described in NYSE Arca 
Equities Rule 8.400 to the securities for which the Core Trading 
Session concludes at 1:15 p.m. PT.\6\
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    \5\ NYSE Arca Equities Rules 5.1(b)(13), 5.2(j)(3), 8.100, 
8.200, 8.201, 8.202, 8.203, and 8.300 relate to Unit Investment 
Trusts, Investment Company Units and Portfolio Depositary Receipts, 
Trust Issued Receipts, Commodity-Based Trust Shares, Currency Trust 
Shares, Commodity Index Trust Shares, and Partnership Units, 
respectively. See Securities Exchange Act Release No. 54997 
(December 21, 2006), 71 FR 78501 (December 29, 2006) (SR-NYSEArca-
2006-77) (relating to amendments to NYSE Arca Equities Rule 7.34).
    \6\ In Securities Exchange Act Release No. 55033 (December 29, 
2006), 72 FR 1253 (January 10, 2007) (SR-NYSEArca-2006-75), the 
Commission approved NYSE Arca Equities Rule 8.400 to permit trading 
on the NYSE Arca Marketplace, either by listing or pursuant to UTP, 
of securities issued by a pair of related trusts and based on an 
index or other numerical variable whose value reflects the value of 
assets, prices, or other economic interests. The Commission also 
approved in this filing the trading, pursuant to UTP, of the 
Claymore MACROshares Oil Up Tradeable Shares and Claymore 
MACROshares Oil Down Tradeable Shares.
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    The Exchange also includes in NYSE Arca Equities Rule 7.34 a list 
of those securities which are eligible to trade in one or more, but not 
all three, of the Exchange's trading sessions, and maintains on its Web 
site a list that

[[Page 4762]]

identifies all securities traded on the NYSE Arca Marketplace that do 
not trade for the duration of each of the three sessions specified in 
NYSE Arca Equities Rule 7.34. The Exchange proposes to add the 
following securities to these lists: (1) Claymore MACROshares Oil Up 
Tradeable Shares and (2) Claymore MACROshares Oil Down Tradeable 
Shares.\7\ These securities are traded on the Exchange pursuant to UTP 
and are Paired Trust Shares, as described in NYSE Arca Equities Rule 
8.400.
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    \7\ See note 5, supra.
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    Finally, the Exchange proposes to amend NYSE Arca Equities Rule 
7.34(a)(4)(A) relating to trading halt procedures applicable to trading 
specified Derivative Securities Products on a UTP basis in the Opening, 
Core, and Late Trading Sessions. The Exchange proposes to add Paired 
Trust Shares described in NYSE Arca Equities Rule 8.400 to the list of 
Derivative Securities Products to which NYSE Arca Equities Rule 
7.34(a)(4)(A) applies.
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, to enhance competition, and to protect investors 
and the public interest.
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    \8\ 15 U.S.C. 78f(b).
    \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.

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 if 
consistent with the protection of investors and the public interest, 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). In addition, Rule 19b-4(f)(6) 
requires an exchange to give the Commission written 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 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 waive the five-day pre-filing notice requirement in 
this case.
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    The Exchange has asked the Commission to waive the 30-day operative 
delay. The Commission believes that such waiver is consistent with the 
protection of investors and the public interest because the proposed 
rule change should provide transparency and more clarity with respect 
to the trading hours eligibility of certain derivative securities 
products and should promote consistency in the trading halts of 
derivative securities. For these reasons, the Commission designates the 
proposed rule change as operative immediately.\12\
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    \12\ For purposes only of accelerating the operative date of 
this proposal, the Commission has considered the 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 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.

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 e-mail to [email protected]. Please include File 
Number SR-NYSEArca-2007-02 on the subject line.

Paper Comments

     Send paper comments in triplicate to Nancy M. Morris, 
Secretary, Securities and Exchange Commission, 100 F Street NE., 
Washington, DC 20549-1090.

All submissions should refer to File Number SR-NYSEArca-2007-02. 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. 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-NYSEArca-2007-02 and should be submitted by February 22, 
2007.

    For the Commission, by the Division of Market Regulation, 
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. E7-1593 Filed 1-31-07; 8:45 am]
BILLING CODE 8011-01-P