

[Federal Register: November 2, 2005 (Volume 70, Number 211)]
[Notices]               
[Page 66480]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr02no05-145]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-52683; File No. SR-NYSE-2005-62]

 
Self-Regulatory Organizations; New York Stock Exchange, Inc.; 
Order Granting Approval to Proposed Rule Change Relating to Trade 
Shredding

October 26, 2005.

I. Introduction

    On September 9, 2005, 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, as amended, (``Act'') \1\ and Rule 19b-4 
thereunder,\2\ a proposed rule change relating to trade shredding. The 
proposed rule change was published for notice and comment in the 
Federal Register on September 21, 2005.\3\ The Commission received no 
comments on the proposal. This order approves the proposed rule change.
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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. 52435 (September 14, 
2005), 70 FR 55440.
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II. Description of the Proposal

    The NYSE proposed to add NYSE Rule 123G to prohibit members, member 
organizations and associated persons from unbundling orders for 
execution for the primary purpose of maximizing a monetary or like 
payment to the member, member organization or associated person without 
regard for the best interests of the customer.

III. Discussion and Commission Findings

    The Commission has reviewed carefully the proposed rule change and 
finds that it is consistent with the requirements of the Act and the 
rules and regulations thereunder applicable to a national securities 
exchange,\4\ particularly Section 6(b)(5) of the Act which, among other 
things, requires that the rules of a national securities exchange be 
designed to promote just and equitable principles of trade, to foster 
cooperation and coordination with persons engaged in regulating 
securities transactions, 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.\5\ The 
Commission believes that the proposed rule change should help eliminate 
the distortive practice of trade shredding, and, therefore, promote 
just and equitable principles of trade.
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    \4\ In approving this proposed rule change, the Commission has 
considered the proposed rule's impact on efficiency, competition, 
and capital formation. See 15 U.S.C. 78c(f).
    \5\ 15 U.S.C. 78f(b)(5).
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IV. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\6\ that the proposed rule change (File No. SR-NYSE-2005-62), be 
and hereby is, approved.
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    \6\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\7\
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    \7\ 17 CFR 200.30-3(a)(12).
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Jonathan G. Katz,
Secretary.
 [FR Doc. E5-6053 Filed 11-1-05; 8:45 am]

BILLING CODE 8010-01-P
