

[Federal Register: October 19, 2006 (Volume 71, Number 202)]
[Notices]               
[Page 61819-61820]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr19oc06-141]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-54594; File No. SR-NYSE-2006-81]

 
Self-Regulatory Organizations; New York Stock Exchange LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
Relating to the Addition of Real-Time Quotation Information to the NYSE 
OpenBook\TM\ Service

October 12, 2006
    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 October 5, 2006, the New York Stock Exchange LLC (``NYSE'' or 
``Exchange''), filed with the Securities and Exchange Commission 
(``Commission'') the proposed rule change as described in Items I and 
II below, which Items have been prepared by the NYSE. The Exchange has 
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 proposal effective 
upon filing with the Commission. The Commission is publishing this 
notice to solicit comments on the proposed rule change from interested 
persons.
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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 add real-time quotation information to the 
limit order information that it makes available through its NYSE 
OpenBook\TM\ service. The NYSE has designated this proposal as non-
controversial and has requested that the Commission waive the 30-day 
pre-operative waiting period contained in Rule 19b-4(f)(6)(iii) under 
the Act.\5\ The text of the proposed rule change is available on the 
Exchange's Web site (http://www.nyse.com), at the Exchange's Office of 

the Secretary, and at the Commission's Public Reference Room.
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    \5\ 17 CFR 240.19b-4(f)(6)(iii).
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II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, NYSE included statements 
concerning the purpose of, and basis for, the proposed rule change and 
discussed any comments it received on the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item IV 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
    Currently, NYSE OpenBook\TM\ consists of a compilation of limit 
order data that the Exchange makes available to market data vendors, 
broker-dealers, private network providers and other entities. With this 
proposed rule change, the Exchange proposes to add the Exchange's 
quotation information to the NYSE OpenBook\TM\ package. The Exchange's 
quotes include the best bid and offer available for a security on the 
Exchange. That best bid and offer reflects not only the limit orders 
resident in OpenBook\TM\, but interest in the trading crowd and 
specialists' proprietary interest as well.
    The quotation information regarding the best NYSE bid or offer is 
the same quotation information that the Exchange provides to the 
Processor under the CQ Plan for consolidation with other markets' 
quotation information. That is, the Exchange is proposing to add the 
information that it makes available under the CQ Plan to its NYSE 
OpenBook\TM\ service. The Exchange will make NYSE quotation information 
available through NYSE OpenBook\TM\ in real-time and no earlier than it 
provides that quotation information to the Processor under the CQ Plan.
    The Exchange notes that the limit order products of fully automated 
markets, such as NYSE Arca's ArcaBook and Nasdaq's TotalView, already 
provide users with the quotation information that those markets provide 
under the CQ Plan.\6\
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    \6\ The Commission made minor clarifying changes to this 
paragraph of the purpose section. Telephone conversation between Ron 
Jordan, Senior Vice President, NYSE, and Rahman Harrison, Special 
Counsel, Division of Market Regulation, Commission on October 12, 
2006.
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    The Exchange believes that the addition of NYSE quotation 
information to NYSE OpenBook\TM\ will make NYSE OpenBook\TM\ a more 
attractive product to the trading desks of broker-dealers and 
institutional investors.
    At this time, the Exchange is not proposing to add or change any 
OpenBook\TM\ fee or to revise any OpenBook\TM\ contract because of the 
addition of NYSE quotation information.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the provisions of Section 6(b) of the Act,\7\ in general, and with 
Section 6(b)(5) of the Act,\8\ in particular, in that it is designed to 
prevent fraudulent and manipulative acts and practices, to promote just 
and equitable principles of trade, to foster cooperation and 
coordination with persons engaged in 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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    \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 believes that the proposed rule change will not 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

    Written comments were neither solicited nor received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The foregoing proposed rule change is subject to Section 
19(b)(3)(A)(iii) of the

[[Page 61820]]

Act \9\ and Rule 19b-4(f)(6) thereunder \10\ because the proposal: (i) 
Does not significantly affect the protection of investors or the public 
interest; (ii) does not impose any significant burden on competition; 
and (iii) does not become operative prior to 30 days after the date of 
filing or such shorter time as the Commission may designate if 
consistent with the protection of investors and the public interest; 
provided that the Exchange has given the Commission 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 business days prior 
to the date of filing of the proposed rule change, or such shorter time 
as designated by the Commission.
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    \9\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \10\ 17 CFR 240.19b-4(f)(6).
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    A proposed rule change filed under Rule 19b-4(f)(6)\11\ normally 
does not become operative prior to 30 days after the date of the 
filing. However, pursuant to Rule 19b-4(f)(b)(iii), the Commission may 
designate a shorter time if such action is consistent with the 
protection of investors and the public interest. The Exchange has asked 
the Commission to waive the 30-day operative delay.\12\ The Commission 
believes that such waiver is consistent with the protection of 
investors and the public interest because it would provide market 
participants that use OpenBook\TM\ with more information about the 
current state of the NYSE market. For this reason, the Commission 
designates the proposed rule change to be effective upon filing with 
the Commission.\13\
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    \11\ 17 CFR 240.19b-4(f)(6).
    \12\ 17 CFR 240.19b-4(f)(6)(iii).
    \13\ For purposes only of accelerating the operative date of 
this proposal, the Commission has considered the proposed rule's 
impact on efficiency, competition, and capital formation. 15 U.S.C. 
78c(f).
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    At any time within 60 days of the filing of such 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 an e-mail to rule-comments@sec.gov. Please include 

File Number SR-NYSE-2006-81 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-NYSE-2006-81. 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 the filing 
also will be available for inspection and copying at the principal 
office of the NYSE. 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-NYSE-2006-81 and should be submitted on or before November 9, 2006.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\14\
J. Lynn Taylor,
Assistant Secretary.
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    \14\ 17 CFR 200.30-3(a)(12).
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 [FR Doc. E6-17394 Filed 10-18-06; 8:45 am]

BILLING CODE 8011-01-P
