

[Federal Register: May 3, 2006 (Volume 71, Number 85)]
[Notices]               
[Page 26165]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr03my06-119]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-53710; File No. SR-PCX-2006-10]

 
Self-Regulatory Organizations; Pacific Exchange, Inc. (n/k/a NYSE 
Arca, Inc.); Order Granting Approval to Proposed Rule Change Relating 
to Trade Shredding

April 24, 2006.

I. Introduction

    On February 3, 2006, the Pacific Exchange, Inc. (``PCX'' 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 relating to trade shredding.\3\ The proposed rule 
change was published for comment in the Federal Register on March 20, 
2006.\4\ 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)(l).
    \2\ 17 CFR 240.19b-4.
    \3\ On March 6, 2006, the Exchange filed with the Commission a 
proposed rule change, which was effective upon filing, to change the 
name of the Exchange, as well as several other related entities, to 
reflect the recent acquisition of PCX by Archipelago Holdings, Inc. 
(``Archipelago'') and the merger of the NYSE with Archipelago. See 
File No. SR-PCX-2006-24. All references herein have been changed to 
reflect the aforementioned rule change.
    \4\ See Securities Exchange Act Release No. 53469 (March 10, 
2006), 71 FR 14045.
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II. Description of the Proposal

    The Exchange proposed to amend its rules governing the NYSE Arca 
Marketplace, the equities trading facility of the NYSE Arca Equities, 
Inc., to prohibit the practice of splitting orders into multiple 
smaller orders for any purpose other than seeking the best execution of 
the entire order.

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,\5\ 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 to perfect the 
mechanism of a free and open market and a national market system and, 
in general, to protect investors and the public interest.\6\ 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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    \5\ 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).
    \6\ 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,\7\ that the proposed rule change (File No. SR-PCX-2006-10), be and 
hereby is, approved.
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    \7\ 15 U.S.C. 78s(b)(2).
    \8\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\8\
Nancy M. Morris,
Secretary.
 [FR Doc. E6-6640 Filed 5-2-06; 8:45 am]

BILLING CODE 8010-01-P
