

[Federal Register: July 31, 2006 (Volume 71, Number 146)]
[Notices]               
[Page 43260]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr31jy06-125]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-54195; File No. SR-NYSE-2006-01]

 
Self-Regulatory Organizations; New York Stock Exchange, Inc. (n/
k/a New York Stock Exchange LLC); Order Approving Proposed Rule Change 
to Require Specialists to Publish a 100 x 100 Share Market to Suspend 
Direct+ for Exchange Rule 127 Block Cross Transactions

July 24, 2006.
    On January 17, 2006, the New York Stock Exchange, Inc.\1\ (n/k/a 
New York Stock Exchange LLC) (``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'') \2 
\and Rule 19b-4 thereunder,\3\ a proposed rule change to eliminate 
Exchange Rule 1000(v), which suspends the Exchange's Direct+ facility 
if the specialist publishes a bid and/or offer that is more than five 
cents away from the last reported transaction price when an Exchange 
Rule 127 block cross transaction is being executed. The Exchange 
proposes to replace this procedure with a rule that requires the 
specialist to quote a 100 x 100 share market when all Exchange Rule 127 
block cross transactions are being executed, regardless of the amount 
the cross price is away from the last reported transaction price. The 
proposed rule change was published for comment in the Federal Register 
on June 8, 2006.\4\ The Commission received no comments regarding the 
proposal.
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    \1\ The Exchange is now known as the New York Stock Exchange 
LLC. See Securities Exchange Act Release No. 53382 (February 27, 
2006), 71 FR 11251 (March 6, 2006).
    \2\ 15 U.S.C. 78s(b)(1).
    \3\ 17 CFR 240.19b-4.
    \4\ See Securities Exchange Act Release No. 53932 (June 1, 
2006), 71 FR 33328.
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    The Commission 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, with 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 promote just and equitable principles of trade, to foster 
cooperation and coordination with persons engaged in regulating, 
clearing, settling, processing information with respect to, and 
facilitating transactions in securities, 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(b). In approving this proposed rule change, 
the Commission considered the proposed rule's impact on efficiency, 
competition, and capital formation. 15 U.S.C. 78c(f).
    \6\ 15 U.S.C. 78f(b)(5).
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    The Commission believes that eliminating the requirement that 
specialists quote a price that is more than five cents away from the 
last reported transaction price when a Rule 127 transaction is being 
executed should simplify the procedure for suspending Direct+ while a 
Rule 127 block transaction is being executed.\7\
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    \7\ The Commission notes that this rule will not be in effect 
upon the implementation of the Hybrid Market. See Securities 
Exchange Act Release No. 53539 (March 22, 2006), 71 FR 16353 (March 
31, 2006).
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    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\8\ that the proposed rule change (SR-NYSE-2006-01) is hereby 
approved.
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    \8\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\9 \
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    \9\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
 [FR Doc. E6-12147 Filed 7-28-06; 8:45 am]

BILLING CODE 8010-01-P
