[Federal Register Volume 72, Number 25 (Wednesday, February 7, 2007)]
[Notices]
[Pages 5782-5783]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-1938]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-55194; File No. SR-NYSEArca-2007-11]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change Relating to NYSE
Arca Marketplace Trading Sessions
January 30, 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 26, 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) Ultra Russell 2000 ProShares; (2) Ultra SmallCap600
ProShares; (3) Short Russell 2000 ProShares; (4) Short SmallCap600
ProShares; (5) UltraShort Russell 2000 ProShares; (6) UltraShort
SmallCap600 ProShares (each a ``Fund''). The shares of each Fund
(``Shares'') 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'').
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, 8.300, and
8.400 (each, a ``Derivative Securities Product'') shall conclude at
1:15 pm PT.\5\
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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, 8.300, and 8.400 relate to Unit
Investment Trusts, Investment Company Units, Portfolio Depositary
Receipts, Trust Issued Receipts, Commodity-Based Trust Shares,
Currency Trust Shares, Commodity Index Trust Shares, Partnership
Units, and Paired Trust Shares, 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); Securities Exchange Act Release No.
55178 (January 25, 2007) (SR-NYSEArca-2007-02) (relating to
additional amendments to NYSE Arca Equities Rule 7.34).
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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 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) Ultra
Russell 2000 ProShares; (2) Ultra SmallCap600 ProShares; (3) Short
Russell 2000 ProShares; (4) Short SmallCap600 ProShares; (5) UltraShort
Russell 2000 ProShares; (6) UltraShort SmallCap600 ProShares.\6\ These
securities are traded on the NYSE Arca Marketplace pursuant to UTP and
are Investment Company Units, described in Exchange Rule 5.2(j)(3).
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\6\ The Commission approved the trading of the Shares of the
Funds on the NYSE Arca Marketplace pursuant to UTP in Securities
Exchange Act Release No. 55125 (January 18, 2007), 72 FR 3462
(January 25, 2007) (SR-NYSEArca-2006-87).
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2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\7\ in general, and furthers the
objectives of Section 6(b)(5),\8\ 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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\7\ 15 U.S.C. 78f(b).
\8\ 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.
[[Page 5783]]
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 \9\ and
Rule 19b-4(f)(6) thereunder.\10\
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\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 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. The Commission notes that this filing does not
change the trading hours of the Derivative Securities Products listed
in Rule 7.34, but codifies trading hour sessions that have been
established through other rule changes or through the use of the
Exchange's generic listing standards pursuant to Rule 19b-4(e) under
the Act. For these reasons, the Commission designates the proposed rule
change as operative immediately.\11\
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\11\ 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-2007-11 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-2007-11. 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 will also 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-2007-11 and should be submitted by February 28,
2007.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\12\
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\12\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-1938 Filed 2-6-07; 8:45 am]
BILLING CODE 8010-01-P