

[Federal Register: May 29, 2007 (Volume 72, Number 102)]
[Notices]               
[Page 29567]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr29my07-121]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-55793; File No. SR-NYSE-2007-34]

 
Self-Regulatory Organizations; New York Stock Exchange LLC; Order 
Approving Proposed Rule Change To Amend NYSE Rule 80A.40(b) To Update 
the Definition of ``Program Trading,'' To Substitute Simplified Audit 
Trail Requirements, and To Make Conforming Amendments to NYSE Rule 410B

May 22, 2007.
    On March 22, 2007, the 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'') \1\ and Rule 19b-4 thereunder,\2\ a 
proposed rule change that would (i) to amend NYSE Rule 80A.40 to 
eliminate the minimum dollar value from the definition of program 
trading, and (ii) substitute simplified audit trail requirements in 
place of the more cumbersome reporting requirements that currently 
apply to program trading. NYSE also proposed to make conforming 
amendments to NYSE Rule 410B. In connection with those changes, NYSE 
also would issue guidance regarding the definition of a ``coordinated 
strategy,'' as that term is used in Rule 80A.40. The Commission 
published notice of the proposal in the Federal Register on April 17, 
2007.\3\ The Commission received no comments on the proposal.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Securities Exchange Act Release No. 55615 (April 11, 2007), 
72 FR 19225.
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    The Commission has reviewed carefully the proposed rule change and 
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 \4\ and, in particular, the requirements 
of Section 6 of the Act \5\ and the rules and regulations thereunder. 
The Commission finds specifically that the proposed rule change is 
consistent with Section 6(b)(5),\6\ which requires that an Exchange 
have rules that are 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. The Commission notes that 
the NYSE has represented that it has carefully evaluated the change in 
definition of program trading and related changes effectuated in this 
proposed rule change, and the Exchange believes that these changes to 
the definition of program trading and the revised audit trail 
information should result in more effective surveillance of the market 
impact of program trading. Based on these representations, the 
Commission believes that the proposed rule change is reasonably 
designed to improve the quality of the program trading data for this 
vital surveillance program.
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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. 15 U.S.C. 78c(f).
    \5\ 15 U.S.C. 78f.
    \6\ 15 U.S.C. 78f(b)(5).
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    It is therefore ordered, pursuant to Section 19(b)(2) of the Act 
\7\, that the proposed rule change (SR-NYSE-2007-34) be, and it hereby 
is, approved.
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    \7\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\8\
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    \8\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E7-10206 Filed 5-25-07; 8:45 am]

BILLING CODE 8010-01-P
