

[Federal Register: February 7, 2007 (Volume 72, Number 25)]
[Notices]               
[Page 5779-5780]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr07fe07-162]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-55216; File No. SR-NYSE-2006-109]

 
Self-Regulatory Organizations; New York Stock Exchange LLC; Order 
Granting Approval of Proposed Rule Change Relating to NYSE Regulation, 
Inc. Policies Regarding Exercise of Power To Fine NYSE Member 
Organizations and Use of Money Collected as Fines

January 31, 2007.
    On December 6, 2006, the New York Stock Exchange LLC (``Exchange'' 
or ``NYSE'') filed with the Securities and Exchange Commission 
(``Commission'') a proposed rule change pursuant to Section 19(b)(1) of 
the Securities Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 
thereunder,\2\ to adopt internal procedures for NYSE Regulation, Inc. 
(``NYSE Regulation'') to assure the proper exercise by NYSE Regulation 
of its power to fine member organizations of the Exchange and the 
proper use by NYSE Regulation of the funds so collected. The proposed 
rule change was published for comment in the Federal Register on 
December 29, 2006.\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. 55003 (December 22, 
2006), 71 FR 78497 (``Notice'').
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    The Commission has reviewed carefully the proposed rule change and 
finds that it is consistent with the requirements of Section 6 of the 
Act \4\ and the rules and regulations thereunder applicable to a 
national securities exchange.\5\ In particular, the Commission finds 
that the proposed rule change is consistent with Section 6(b)(4) of the 
Act,\6\ which requires that the rules of the exchange provide for the 
equitable allocation of reasonable dues,

[[Page 5780]]

fees, and other charges among the exchange's members and issuers and 
other persons using its facilities. The Commission also finds that the 
proposed rule change is consistent with Section 6(b)(5) of the Act,\7\ 
which requires, among other things, that the rules of the exchange be 
designed to promote just and equitable principles of trade, 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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    \4\ 15 U.S.C. 78f.
    \5\ In approving this proposal, the Commission has 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)(4).
    \7\ 15 U.S.C. 78f(b)(5).
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    The Commission believes that the proposed rule change should help 
to increase transparency regarding the processes NYSE Regulation has in 
place to ensure that the power of the Exchange, through NYSE 
Regulation, to impose fines on its members for disciplinary violations 
is exercised appropriately, and particularly to guard against the 
possibility that fines may be assessed to respond to budgetary needs 
rather than to serve a disciplinary purpose.
    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\8\ that the proposed rule change (SR-NYSE-2006-109) is 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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Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E7-1947 Filed 2-6-07; 8:45 am]

BILLING CODE 8010-01-P
