[Federal Register: August 11, 2008 (Volume 73, Number 155)]
[Notices]
[Page 46679-46681]
[DOCID:fr11au08-123]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 58266; File No. SR-NYSEArca-2008-80]

Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change Eliminating Certain
Obsolete Rules

July 30, 2008.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby
given that, on July 24, 2008, NYSE Arca, Inc. (``NYSE Arca'' or the
``Exchange'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I, II,
and III below, which Items have been prepared by the self-regulatory
organization. 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\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of the
Substance of the Proposed Rule Change

    The Exchange proposes to amend its rules in order to remove
obsolete and unnecessary rule text related to information that is now
obsolete. These changes are being made for administrative purposes
only. By abolishing these out-dated references, the Exchange is not
changing or altering any obligations, rights, policies or practices
enumerated within its rules. The text of the proposed rule change is
available at the Exchange, and 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, the self-regulatory organization
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 those 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 parts of such statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The purpose of this filing by NYSE Arca is to remove obsolete and
unnecessary rule text in several of its rules. By abolishing these out-
dated references, the Exchange is not changing or altering any
obligations, rights, policies or practices enumerated within its rules.
    In September 2006, the Exchange revised its rules to conform to
Regulation NMS.\4\ At that time, there was a transitional period where
the pre-NMS version of certain rules were in effect until a specified
date (February 5, 2007), after which the new NMS version of the rule
would take effect. As a result, there are several Exchange rules that
contain both pre-NMS provisions as well as current applicable
provisions. In fact, many of the Exchange's rules are identified either
as operative through February 5, 2007 or operative after February 5,
2007. Retaining these outdated pre-NMS provisions fosters unnecessary
confusion. The Exchange proposes to amend its rules to remove this text
that is both unnecessary and, by its very terms, obsolete.
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    \4\ See Securities Exchange Act Release No. 54549 (September 29,
2006), 71 FR 59179 (October 6, 2006) (SR-NYSEArca-2006-59).
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    The specific proposed changes are discussed in further detail
below.
     Rule 1.1: This rule sets forth certain definitions and
references that are in effect at NYSE Arca. By this proposal, the
Exchange is eliminating obsolete terms that were identified as being in
effect until February 5, 2007 while maintaining (without revision) the
currently operative terms that were identified as having taken effect
as of February 5, 2007, as shown below.
    [dec221] Rule 1.1(aa): The Exchange is deleting the out-dated
definition of the term ``Nasdaq Security'' while retaining the
currently operative definition of the same term.
    [dec221] Rule 1.1(dd): The Exchange is deleting the out-dated
definition of the term ``NBBO'' while retaining the currently operative
definition of the same term.
    [dec221] Rule 1.1(rr): The Exchange is deleting the out-dated
definition of the term ``Security'' while retaining the currently
operative definition of the same term.
    [dec221] Rule 1.1(ddd): The Exchange is deleting the unnecessary
reference to the operative date of the definition of the term ``NMS
Stock'' while retaining

the currently operative definition of the same term.
    [dec221] Rule 1.1(eee): The Exchange is deleting the unnecessary
reference to the operative date of the term ``Protected Bid, Protected
Offer, Protected Quotation'' while retaining the currently operative
definition of the same term.
    [dec221] Rule 1.1(fff): The Exchange is deleting the unnecessary
reference to the operative date of the term ``Trade-Through'' while
retaining the currently operative definition of the same term.
    [dec221] Rule 1.1(ggg): The Exchange is deleting the unnecessary
reference to the operative date of the term ``Trading Center'' while
retaining the currently operative definition of the same term.
    [dec221] Rule 1.1(hhh): The Exchange is deleting the unnecessary
reference to the operative date of the term ``Effective National Market
System Plan, Regular Trading Hours'' while retaining the currently
operative definition of the same term.
     Rule 7.1, Hours of Business: The Exchange is hereby
eliminating the obsolete rule text that was identified as being in
effect until February 5, 2007 while maintaining (without revision) the
currently operative rule text that was identified as having taken
effect as of February 5, 2007.
     Rule 7.18, Trading in Nasdaq Securities: The Exchange is
hereby eliminating the obsolete rule text that was identified as being
in effect until February 5, 2007 while maintaining the currently
operative rule text that was identified as having taken effect as of
February 5, 2007.
    [dec221] Rule 7.18(c), Applicability. According to this sub-
section, ``the following Rules of the Corporation will not be
applicable to transactions on the Corporation in Nasdaq Securities:
Rules 7.55-7.57.'' This section is obsolete and unnecessary. Rule 7.55
concerns the retired Intermarket Trading System Plan (``ITS Plan'') and
Rules 7.56-7.57 are marked as inoperative as of February 5, 2007.
Accordingly, the Exchange is deleting this rule text as obsolete. As
outlined below, the Exchange is also proposing to delete all references
to the retired ITS Plan.
     Rule 7.28, NMS Market Access: The Exchange is deleting the
unnecessary reference to the operative date of the rule (February 5,
2007) while retaining the currently operative rule text.
     Rule 7.31, Orders and Modifiers: This Rule defines certain
orders available on the Exchange and explains their operability. By
this proposal, the Exchange is eliminating the obsolete rule text that
was identified as being in effect until February 5, 2007, while
maintaining (without revision) the currently operative rule text that
was identified as having taken effect as of February 5, 2007.
     Rule 7.35, Auctions: This Rule defines certain available
auctions on the Exchange and their operability. The Exchange is hereby
deleting Rule 7.35(f)(3)(D), pertaining to ITS, which had been marked
as inoperative after February 5, 2007.
     Rule 7.37, Order Execution: This Rule sets forth the
priority of execution of the Exchange's available order types. The
Exchange is eliminating the obsolete rule text that was identified as
being in effect until February 5, 2007, while maintaining the currently
operative rule text that was identified as having taken effect as of
February 5, 2007. With one exception, the Exchange is not altering or
revising the currently operative text of Rule 7.37. Specifically, with
respect to the introductory paragraph to Rule 7.37, the Exchange is
proposing to delete the references to the ITS Plan and certain order
interaction therewith.
     Rule 7.40, Trade Execution and Reporting: By this
proposal, the Exchange is eliminating the obsolete rule text that was
identified as being in effect until February 5, 2007, while maintaining
(without revision) the currently operative rule text that was
identified as having taken effect as of February 5, 2007.
     Rule 7.55, Definitions: This Rule concerns the ITS Plan
and was marked as operative through February 5, 2007. The ITS Plan has
been retired and the Rule is not operative by its very terms. The
Exchange is hereby deleting this Rule in its entirety.
     Rule 7.56, ITS ``Trade-Throughs'' and ``Locked Markets'':
This Rule concerns the ITS Plan and was marked as operative through
February 5, 2007. The ITS Plan has been retired and the Rule is not
operative by its very terms. The Exchange is hereby deleting this Rule
in its entirety.
     Rule 7.57, Block Trade Policy: By this proposal, the
Exchange is eliminating this obsolete Rule that was identified as being
in effect until February 5, 2007.
     Rule 7.58, Compliance with Two-Sided Quote Requirement in
ITS Plan: This Rule concerns the ITS Plan and was marked as operative
through February 5, 2007. The ITS Plan has been retired and the Rule is
not operative by its very terms. The Exchange is hereby deleting this
Rule in its entirety.
     Rule 7.65(J). The Exchange is hereby eliminating the out-
dated and unnecessary reference to the ITS Plan. The Exchange is not
making any other changes to Rule 7.65, Portfolio Crossing Service.
2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with
and furthers the objectives of Section 6(b)(5) of the Act,\5\ in that
it is designed to prevent fraudulent and manipulative practices, to
promote just and equitable principles of trade, to remove impediments
to, and perfect the mechanisms of, a free and open market and a
national market system, and, in general, to protect investors and the
public interest. The Exchange believes that the proposed rule change
will eliminate unnecessary confusion in its rule structure by removing
outdated and obsolete rule references.
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    \5\ 15 U.S.C. 78(f)(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will
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

    No written comments were solicited or received with respect to the
proposed rule change.

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

    The Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \6\ and Rule 19b-4(f)(6) thereunder.\7\
Because the proposed rule change does not: (i) Significantly affect the
protection of investors or the public interest; (ii) impose any
significant burden on competition; and (iii) become operative prior to
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, the proposed rule change has become
effective pursuant to Section 19(b)(3)(A) of the Act \8\ and Rule 19b-
4(f)(6)(iii) thereunder.\9\
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    \6\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \7\ 17 CFR 240.19b-4(f)(6).
    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 17 CFR 240.19b-4(f)(6)(iii).
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    At any time within 60 days of the filing of the 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<EMAIL_ADDRESS>Please include
File Number SR-NYSEArca-2008-80 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street, NE., Washington, DC 20549-1090.

All submissions should refer to File Number SR-NYSEArca-2008-80. 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 100 F Street,
NE., Washington, DC 20549 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 NYSE Arca's principal office and on its
Internet Web site at http://www.nyse.com. 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-2008-80, and should be
submitted on or before September 2, 2008.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Acting Secretary.
 [FR Doc. E8-18382 Filed 8-8-08; 8:45 am]

BILLING CODE 8010-01-P