
[Federal Register: March 25, 2008 (Volume 73, Number 58)]
[Notices]               
[Page 15821-15822]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr25mr08-110]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-57521; File No. SR-NYSEArca-2008-27]

 
Self-Regulatory Organizations; NYSE Arca, Inc; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change to Delete NYSE Arca 
Rule 6.88--Pacific Options Exchange Trading System

March 18, 2008.
    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 March 13, 2008, NYSE Arca, Inc. (``Exchange'' or ``NYSE Arca'') 
filed with the Securities and Exchange Commission (``Commission'') the 
proposed rule change as described in Items I and II below, which Items 
have been substantially prepared by NYSE Arca. NYSE Arca has designated 
this proposal as one that neither significantly affects the protection 
of investors or the public interest nor imposes any significant burden 
on competition, under Section 19(b)(3)(A)(ii) 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)(ii).
    \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

    NYSE Arca is proposing to amend its rules to delete NYSE Arca Rule 
6.88 because it has determined that rule to be obsolete. The text of 
the proposed rule change is available on the Exchange's Web site, 
http://www.nyse.com, at the principal office of the Exchange, and at 
the Commission's Public Reference Room.

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 Arca 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. NYSE Arca 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
    Upon review of NYSE Arca Rule 6.88, the Exchange has determined 
that the rule is outdated and obsolete. This rule relates to options 
trading on the Pacific Options Exchange Trading System (``POETS''). The 
Exchange, however, no longer uses POETS for options trading. Therefore, 
the Exchange proposes to eliminate the text of this Rule and reserve 
the rule number for future use.
    POETS was the Exchange's automated trading system comprised of the 
options order routing system, the automatic execution system (Auto-Ex), 
the on-line limit order book system (Auto-Book), and the automatic 
market quote update system (Auto-Quote). All functionality contained in 
the POETS system has been completely decommissioned. Its replacement, 
PCX Plus, was fully implemented as of March 2005.\5\ Since then, the 
Exchange decommissioned PCX Plus and implemented its current options 
trading platform, the OX system, during the third quarter of 2006.\6\ 
At the time POETS was decommissioned and PCX Plus was implemented, 
rules pertaining to POETS were eliminated, as obsolete, from the 
Exchange's rule set.\7\ Rule 6.88 inadvertently remained within the 
Exchange's rule set without purpose or regulatory impact.
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    \5\ See Securities Exchange Act Release No. 47838 (May 13, 
2003), 68 FR 27129 (May 19, 2003) (SR-PCX-2002-36) (order approving 
establishment of the PCX Plus system).
    \6\ See Securities Exchange Act Release No. 54238 (July 28, 
2006), 71 FR 44758 (August 7, 2006) (SR-NYSEArca-2006-13) (order 
approving establishment of the OX trading platform system).
    \7\ See Securities Exchange Act Release No. 53221 (February 3, 
2006), 71 FR 6811 (February 9, 2006) (SR-PCX-2005-102) (order 
approving elimination of obsolete rules related to POETS).
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    The Exchange has no plans to reactivate the POETS system; 
therefore, any rules governing its use are outdated and unnecessary. By 
eliminating the text of this rule, the Exchange hopes to eliminate any 
unnecessary confusion for its members.
2. Statutory Basis
    The Exchange believes that the proposal is consistent with Section 
6(b) of the Act,\8\ in general, and Section 6(b)(5) of the Act,\9\ in 
particular, in that it will promote just and equitable principles of 
trade, facilitate

[[Page 15822]]

transactions in securities, remove impediments to and perfect the 
mechanisms of a free and open market and a national market system, and 
protect investors and the public interest.
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    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The proposed rule change does 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

    The Exchange has not solicited, and does not intend to solicit, 
comments on this proposed rule change. The Exchange has not received 
any unsolicited written comments from members or other interested 
parties.

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

    Because the foregoing rule does not (i) Significantly affect the 
protection of investors or the public interest; (ii) impose any 
significant burden on competition; and (iii) become operative for 30 
days from the date on which it was filed, or such shorter time as the 
Commission may designate if consistent with the protection of investors 
and the public interest, it has become effective pursuant to Section 
19(b)(3)(A) of the Act and Rule 19b-4(f)(6) thereunder.\10\
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    \10\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii) 
requires a self-regulatory organization to provide the Commission 
with written 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. The Exchange has fulfilled this requirement.
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    The Exchange has asked the Commission to waive the 30-day operative 
delay in order to allow the Exchange to remove an obsolete rule without 
delay. The Commission believes such waiver is consistent with the 
protection of investors and the public interest because the existing 
rule regarding the POETS system is obsolete and serves no purpose 
related to the administration of the Exchange.\11\ Waiver of the 30-day 
operative delay specified in Rule 19b-4(f)(6) will allow the Exchange 
to update its Rules without delay. For these reasons, the Commission 
designates the proposals to be operative upon filing with the 
Commission.
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    \11\ For purposes only of waiving the 30-day operative delay, 
the Commission has considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 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 No. SR-NYSEArca-2008-27 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-NYSEArca-2008-27. 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 on official 
business days between the hours of 10 a.m. and 3 p.m. Copies of such 
filing also will be available for inspection and copying at the 
principal office of the Exchange. 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-NYSEArca-2008-27 and should be submitted on or before 
April 15, 2008.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12\
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    \12\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8-5912 Filed 3-24-08; 8:45 am]

BILLING CODE 8011-01-P
