[Federal Register: December 7, 2006 (Volume 71, Number 235)]
[Notices]
[Page 71007-71010]
[DOCID:fr07de06-103]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-54843; File No. SR-NYSE-2006-73]

Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing and Order Granting Accelerated Approval to a Proposed
Rule Change and Amendment Nos. 1, 2, and 3 Relating to Block
Positioning

November 30, 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 September 13, 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 NYSE filed Amendment Nos. 1, 2, and 3 to the
proposal on October 12, 2006, October 13, 2006, and November 28, 2006,
respectively.\3\ The Commission is publishing this notice and order to
solicit comments on the proposed rule change, as amended, from
interested persons, and to approve the proposed rule change, as
amended, on an accelerated basis.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Amendment No. 3 replaced the original filing and Amendment
Nos. 1 and 2 in their entirety. Amendment No. 3 revises the original
proposal to: (1) Clarify the execution of block cross transactions
in which all or part of one side of the block is for a member
organization's own account; (2) clarify that the requirements of
NYSE Rule 76, ``'Crossing' Orders,'' will not apply to executions
made in accordance with NYSE Rule 127; and (3) correct errors in the
text of NYSE Rule 127.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The NYSE proposes to amend NYSE Rule 127, ``Block Positioning,'' to
revise the procedures governing executions of block cross transactions
at a price outside the prevailing NYSE quotation. The text of the
proposed rule change is available on the NYSE's Web site (http://www.nyse.com
), at the NYSE's Office of the Secretary, 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, the Exchange 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 III 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
    The Exchange is proposing amendments to NYSE Rule 127, which
governs block cross transactions at a price outside the prevailing NYSE
quotation. Currently, NYSE Rule 127 provides alternative procedures
that may be followed by a member organization intending to cross a
block of stock at a specific clean-up price outside the prevailing NYSE
quotation. Under the rule, a member organization must inform the
specialist of its intent to cross block orders at a specific clean-up
price. The member organization then announces the clean-up price to the
trading Crowd. If the cross involves only agency orders on each side,
the member organization fills all orders limited to or better than such
price, and crosses the remaining shares at the clean-up price. However,
if the member organization determines that the amount of stock needed
to trade with such limit orders excessively interferes with the
proposed block cross, the member organization may inform the trading
Crowd that it will not be given stock at the clean-up price. After such
announcement, the member organization bids and offers the full amount
of the block cross pursuant to NYSE Rule 76.\4\ This provides the Crowd
with an opportunity to trade with or ``break up'' the crossed orders.
In this situation, the block is entitled to priority at the clean-up
price. Additionally, if all or part of one side of the block cross
transaction will establish or increase the member organization's
position, the member organization representing the block orders must
fill at the clean-up price public orders limited to the clean-up price
or better before any amount may be retained for the member
organization's account. This is not required when the member
organization is liquidating a position. NYSE Rule 127 also provides for
the member organization executing the cross to take into account the
needs of the specialist in maintaining a market in the stock after the
block cross transaction.
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    \4\ Under NYSE Rule 76, the member makes an offer higher than
the clean-up price by the minimum variation permitted in such
security.
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    The Exchange proposes to simplify the procedures in NYSE Rule 127
by adopting a single process for all block cross transactions outside
the Exchange quotation and to make them more similar to the way
automatic executions and ``sweeps'' occur on the Exchange. In addition,
the NYSE proposes some minor wording changes to conform references
throughout the rule to ``member organization'' instead of variously
``member'' or ``member organization.''
    The proposed new procedure for the execution of block crosses at a
price outside the prevailing NYSE quotation is as follows, except where
the member organization is establishing or increasing a position for
its own account: The member organization representing the block orders
will first trade with the displayed bid or offer (whichever is relevant
to the proposed cross), then with all limit orders in the Display
Book[reg] (``Display Book'') system priced better than the block clean-
up price, and then execute the cross at the clean-up price. This will
result in executions at a maximum of three prices: The displayed bid
(offer) price; a price one cent better than the clean-up price, and the
block clean-up price. Percentage orders elected at each price will be
entitled to trade at those prices. The block cross will have execution
priority at the clean-up price. Pursuant to NYSE Rule 127(e), none of
these executions will be subject to the requirements of NYSE Rule 76.

Example

    The NYSE quote in XYZ is $20.05 bid for 10,000 shares, with 5,000
shares offered at $20.10. There is no reserve interest at the best bid
and offer. There are bids for $20.04, $20.03, and $20.01, each for
5,000 shares, in the Display Book system. A member organization intends
to cross orders totaling 50,000 shares to buy and sell at $20.02. The
following executions occur: 10,000 shares trade at $20.05, 10,000
shares trade at $20.03, and 30,000 shares are crossed at the clean-up
price of $20.02.
    In addition, pursuant to the proposed new rule, when a member
organization is establishing or increasing a position for its own
account and the member organization is all or a part of one side of the
block, then the member organization representing the block orders will
first trade with the displayed bid or offer (whichever is relevant to
the proposed cross). The member organization will not trade with all
limit orders in the Display Book system priced better than the block
clean-up price; rather, the member organization will cross the block
orders at the specified clean-up price and fill at the clean-up price
orders limited to the clean-up price or better before any amount may be
retained for the member organization's account.

Example

    The NYSE quote in XYZ is $20.05 bid for 10,000 shares, with 5,000
shares offered at $20.10. There is no reserve interest at the best bid
and offer. There are bids for $20.04, $20.03, and $20.01, each for
5,000 shares, in the Display Book system. A member organization intends
to cross orders totaling 50,000 shares to buy and sell at $20.02. The
member organization is buying 40,000 shares for its own account. The
following executions occur: 10,000 shares trade at $20.05, 30,000
shares are crossed at the clean-up price of $20.02, and 10,000 shares
trade at $20.02.

2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act \5\ in general, and furthers the
objectives of Section 6(b)(5) of the Act \6\ 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 facilitating
transactions in securities, and to remove impediments to and perfect
the mechanism of a free and open market and a national market system.
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    \5\ 15 U.S.C. 78f(b).
    \6\ 15 U.S.C. 78f(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

    The Exchange has neither solicited nor received written comments on
the proposed rule change.

III. Solicitation of Comments

    Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change, as amended, 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-NYSE-2006-73 on the subject line.

Paper Comments

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

    All submissions should refer to File Number SR-NYSE-2006-73. 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 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 publicly available. All submissions should refer to
File Number SR-NYSE-2006-73 and should be submitted on or before
December 28, 2006.

IV. Commission's Findings and Order Granting Accelerated Approval of
the Proposed Rule Change, as Amended

    The Commission finds that the proposed rule change, as amended, is
consistent with the requirements of the Act and the rules and
regulations thereunder applicable to a national securities exchange.\7\
In particular, the Commission finds that the proposed rule change, as
amended, is consistent with the requirements of Section 6(b)(5) of the
Act,\8\ which requires, among other things, that the rules of a
national securities exchange be designed to prevent fraudulent and
manipulative acts and practices, 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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    \7\ In approving this proposal, the Commission has considered
the proposal's impact on efficiency, competition, and capital
formation. 15 U.S.C. 78c(f).
    \8\ 15 U.S.C. 78f(b)(5).
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    The proposal revises the procedures under NYSE Rule 127 for
crossing block-sized orders outside the prevailing NYSE quotation.\9\
Under the proposal, NYSE Rule 127(b) will govern block cross
transactions where the member organization represents as agent orders
on both sides of the block. NYSE Rule 127(c)(2) will govern block
transactions where all or part of one side of the block is for a member
organization's own account and the member organization is covering a
short position or liquidating a long position. Before crossing block
orders at a specified clean-up price outside the current quotation,
NYSE Rules 127(b) and 127(c)(2) will require a member organization to
trade with: (1) the NYSE best bid (offer), including all reserve
interest at that price and any percentage orders elected by the
execution at that price; and (2) all orders in the Display Book system
limited to prices better than the block clean-up price, including Floor
Brokers' e-Quotes and any percentage orders elected by the execution,
at a price that is the minimum variation better than the block clean-up
price. Under NYSE Rule 127(b)(ii), the block will be entitled to
priority at the clean-up price, and under NYSE Rule 127(c)(2), the
member organization will not be required to fill at the clean-up price
orders limited to the clean-up price.
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    \9\ For purposes of NYSE Rule 127, a block is at least 10,000
shares or a quantity of stock having a market value of $200,000 or
more, whichever is less, that a member organization acquires on its
own behalf and/or for others from one or more buyers or sellers in a
single transaction. See NYSE Rule 127, Supplementary Material .01.
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    In a block transaction where all or any portion of a block is for a
member organization's own account and all or any portion of the block
will establish or increase the member organization's position, NYSE
Rule 127(c)(1) will require the member organization to trade with the
NYSE best bid (offer), including all reserve interest at that price and
any percentage orders elected by that execution at the bid (offer)
price, before crossing the block orders at the specified clean-up
price. The member organization must fill at the clean-up price orders
limited to the clean-up price or better before the member organization
may retain any amount for its own account. The requirements of NYSE
Rule 76 will not apply to executions made in accordance with NYSE Rule
127.\10\
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    \10\ See NYSE Rule 127(e).
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    The Commission finds that the proposal is consistent with Section
6(b)(5) because it is designed to permit the execution of block crosses
outside the prevailing NYSE quotation while protecting certain existing
interest on the NYSE. In this regard, NYSE Rule 127(b) will require a
member organization, before effecting an agency-only block cross
outside the current NYSE quotation, to trade with the NYSE best bid
(offer), including reserve size and percentage orders elected by the
execution, at the bid (offer) price, and to trade with all orders in
the Display Book system limited to prices better than the block clean-
up price, including Floor Brokers' e-Quotes and percentage orders

elected by the execution, at a price that is the minimum variation
better than the block clean-up price. NYSE Rule 127(c)(2) provides the
same requirements for a block transaction where all or part of one side
of a block transaction is for a member organization's own account and
the member organization is covering a short position or liquidating a
long position. Similarly, NYSE Rule 127(c)(1) requires a member
organization that engages in a block transaction that will establish or
increase the member organization's position to trade with the NYSE best
bid (offer), including all reserve interest and percentage orders
elected by the execution, at that price before crossing the orders, and
to fill at the clean-up price orders limited to the clean-up price or
better before retaining any amount for its own account.
    The Commission finds that the proposal to replace references to
``member'' with references to ``member organization'' throughout NYSE
Rule 127 is consistent with Section 6(b)(5) of the Act because it will
provide consistency in the text of the rule.
    The Commission finds good cause for approving the proposed rule
change, as amended, prior to the thirtieth day after the date of
publication of notice of filing thereof in the Federal Register. As
described more fully above, the proposal revises the NYSE's procedures
for executing block crosses outside the prevailing NYSE quotation while
protecting certain existing interest on the NYSE. In addition, the
changes to NYSE Rule 127 proposed in the NYSE's initial filing have
been in effect on a pilot basis since October 6, 2006.\11\ The
Commission did not receive any comments regarding the proposed changes
to NYSE Rule 127 during the operation of the pilot. The NYSE received
no comments regarding the substantive operation of the proposed block
crossing procedures during the pilot period, although some members
urged the NYSE to explore ways to enhance the efficiency of the
process.\12\ Accordingly, the Commission finds good cause, consistent
with Section 6(b)(5) and 19(b)(2) of the Act, to approve the proposal,
as amended, on an accelerated basis.
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    \11\ See Securities Exchange Act Release Nos. 54578 (October 5,
2006), 71 FR 60216 (October 12, 2006), (File No. SR-NYSE-2006-82)
(order granting accelerated approval to put certain changes into
operation on a pilot basis until October 31, 2006); and 54675
(October 31, 2006), 71 FR 65019 (November 6, 2006) (File No. SR-
NYSE-2006-96) (extending the pilot program through November 30,
2006). Amendment No. 3 revised the initial proposal to: (1) clarify
the execution of block cross transactions in which all or part of
one side of the block is for a member organization's own account;
(2) clarify that the requirements of NYSE Rule 76 will not apply to
executions made in accordance with NYSE Rule 127; and (3) correct
errors in the text of NYSE Rule 127.
    \12\ Telephone conversation between Deanna Logan, Director,
Office of the General Counsel, NYSE, and Yvonne Fraticelli, Special
Counsel, Division of Market Regulation, Commission, on November 28,
2006.
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    It is therefore ordered, pursuant to Section 19(b)(2) of the Act,
that the proposed rule change (SR-NYSE-2006-73), as amended, is
approved on an accelerated basis.

    For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\13\
Florence E. Harmon,
Deputy Secretary.
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    \13\ 17 CFR 200.30-3(a)(12).
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 [FR Doc. E6-20716 Filed 12-6-06; 8:45 am]

BILLING CODE 8011-01-P


[Federal Register: October 21, 2005 (Volume 70, Number 203)]
[Notices]
[Page 61273]
[DOCID:fr21oc05-60]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket Nos. ER05-1105-000; ER05-1105-001 and ER05-1105-002]

LP and T Energy LLC; Notice of Issuance of Order

October 14, 2005.
    LP and T Energy LLC (LP and T) filed an application for market-
based rate authority, with an accompanying rate tariff. The proposed
rate tariff provides for the sale of capacity, and energy. LP and T
also requested waiver of various Commission regulations. In particular,
LP and T requested that the Commission grant blanket approval under 18
C.F.R. Part 34 of all future issuances of securities and assumptions of
liability by LP and T.
    On October 12, 2005, pursuant to delegated authority, the Director,
Division of Tariffs and Market Development--South, granted the request
for blanket approval under Part 34. The Director's order also stated
that the Commission would publish a separate notice in the Federal
Register establishing a period of time for the filing of protests.
Accordingly, any person desiring to be heard or to protest the blanket
approval of issuances of securities or assumptions of liability by LP
and T should file a motion to intervene or protest with the Federal
Energy Regulatory Commission, 888 First Street, N.E., Washington, D.C.
20426, in accordance with Rules 211 and 214 of the Commission's Rules
of Practice and Procedure. 18 CFR 385.211, 385.214 (2004).
    Notice is hereby given that the deadline for filing motions to
intervene or protests is November 14, 2005.
    Absent a request to be heard in opposition by the deadline above,
LP and T is authorized to issue securities and assume obligations or
liabilities as a guarantor, indorser, surety, or otherwise in respect
of any security of another person; provided that such issuance or
assumption is for some lawful object within the corporate purposes of
LP and T, is compatible with the public interest, and is reasonably
necessary or appropriate for such purposes.
    The Commission reserves the right to require a further showing that
neither public nor private interests will be adversely affected by
continued approval of LP and T's issuances of securities or assumptions
of liability.
    Copies of the full text of the Director's Order are available from
the Commission's Public Reference Room, 888 First Street, NE.,
Washington, DC 20426. The Order may also be viewed on the Commission's
Web site at http://www.ferc.gov, using the eLibrary link. Enter the

docket number excluding the last three digits in the docket number
filed to access the document. Comments, protests, and interventions may
be filed electronically via the internet in lieu of paper. See, 18 CFR
385.2001(a)(1)(iii) and the instructions on the Commission's Web site
under the ``e-Filing'' link. The Commission strongly encourages
electronic filings.

 Magalie R. Salas,
 Secretary.
 [FR Doc. E5-5812 Filed 10-20-05; 8:45 am]

BILLING CODE 6717-01-P


[Federal Register: July 16, 2008 (Volume 73, Number 137)]
[Notices]
[Page 40863-40864]
[DOCID:fr16jy08-69]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Project No. 13161-000]

Hydrodynamics, Inc.; Notice of Preliminary Permit Application
Accepted for Filing and Soliciting Comment, Motions To Intervene, and
Competing Applications

July 9, 2008.
    On April 1, 2008, Hydrodynamics, Inc. filed an application,
pursuant to

section 4(f) of the Federal Power Act, proposing to study the
feasibility of the Sun River Diversion Dam Project, to be located on an
existing dam owned by the U.S. Bureau of Reclamation (USBR), on the Sun
River in Teton and Lewis and Clark Counties, Montana, on lands
administered by the USBR.
    The proposed project would consist of: (1) A proposed 900-foot-
long, 10-foot-wide penstock, (2) a proposed powerhouse containing two
generating units having a total installed capacity of 12 megawatts, (3)
a proposed one-quarter-mile-long, 15-kV transmission line, and (4)
appurtenant facilities. The project would have an annual generation of
50 gigawatt-hours that would be sold to a local utility.
    Applicant Contact: Mr. Roger Kirk, Hydrodynamics, Inc., P.O. Box
1136, Bozeman, MT 59771; phone:<PHONE_NUMBER>. FERC Contact: Tom
Papsidero,<PHONE_NUMBER>.
    Deadline for filing comments, motions to intervene, competing
applications (without notices of intent), or notices of intent to file
competing applications: 60 days from the issuance of this notice.
Comments, motions to intervene, notices of intent, and competing
applications may be filed electronically via the Internet. See 18 CFR
385.2001(a)(1)(iii) and the instructions on the Commission's Web site
under the ``e-Filing'' link. If unable to be filed electronically,
documents may be paper-filed. To paper-file, an original and eight
copies should be mailed to: Kimberly D. Bose, Secretary, Federal Energy
Regulatory Commission, 888 First Street, NE., Washington, DC 20426. For
more information on how to submit these types of filings please go to
the Commission's Web site located at http://www.ferc.gov/filing-
comments.asp. More information about this project can be viewed or
printed on the ``eLibrary'' link of the Commission's Web site at http:/
/www.ferc.gov/docs-filing/elibrary.asp. Enter the docket number (P-
13146) in the docket number field to access the document. For
assistance, call toll-free 1-866-208-3372.

Kimberly D. Bose,
Secretary.
[FR Doc. E8-16205 Filed 7-15-08; 8:45 am]

BILLING CODE 6717-01-P