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13060 Federal Register / Vol. 73, No.

48 / Tuesday, March 11, 2008 / Notices

opening contract requirement in the SECURITIES AND EXCHANGE A. Self-Regulatory Organization’s


FLEX Equity Options market, as well as COMMISSION Statement of the Purpose of, and
whether the lower opening size has Statutory Basis for, the Proposed Rule
increased liquidity in FLEX Equity [Release No. 34–57430; File No. SR– Change
Options. Based on the report’s NASDAQ–2008–012] 1. Purpose
information, the Commission should be
able to determine whether the Pilot Self-Regulatory Organizations; The Nasdaq proposes to trade pursuant to
UTP the Shares, which represent
Program should be extended or NASDAQ Stock Market LLC; Notice of
beneficial ownership interests in the
approved on a permanent basis, Filing and Order Granting Accelerated
GreenHaven Continuous Commodity
consistent with the Act. Approval of Proposed Rule Change To
Index Master Fund’s (‘‘Master Fund’’)
The Commission also believes that the Trade Shares of the GreenHaven net assets, consisting solely of the
aspect of the proposal that modifies the Continuous Commodity Fund Pursuant common units of beneficial interest of
minimum value size for an opening to Unlisted Trading Privileges the Master Fund (‘‘Master Fund Units’’).
transaction in a currently-opened FLEX March 4, 2008. A rule proposal to list and trade the
Equity series (other than FLEX Quotes Shares has been filed by the American
responsive to a FLEX Request for Pursuant to section 19(b)(1) of the Stock Exchange LLC (‘‘Amex’’) and
Quotes) to the lesser of (i) 100 contracts Securities Exchange Act of 1934 approved by the Commission.3
or (ii) the number of contracts overlying (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 The investment objective of the Fund
$1 million in the underlying securities notice is hereby given that on February and the Master Fund is to reflect the
is also consistent with the Act and the 27, 2008, The NASDAQ Stock Market performance of the Continuous
rules and regulations thereunder. The LLC (‘‘Nasdaq’’ or ‘‘Exchange’’) filed Commodity Total Return Index (‘‘Index’’
Commission agrees with the Exchange with the Securities and Exchange or ‘‘CCI–TR’’) over time, less the
that this change will provide Commission (‘‘Commission’’) the expenses of the operations of the Fund
proposed rule change as described in and the Master Fund. The Index is
consistency between the minimum size
Items I and II below, which Items have widely viewed as a broad measure of
requirements for opening transactions in
been substantially prepared by the overall commodity price trends because
both new series and currently-opened of the diverse nature of the Index’s
series when the underlying stock is Exchange. This order provides notice of
the proposed rule change and approves constituent commodities. The CCI–TR
trading at more than $100. The change consists of 17 commodity futures prices.
avoids the result that, for situations it on an accelerated basis.
The 17 commodities are currently corn,
where the underlying stock is priced I. Self-Regulatory Organization’s wheat, soybeans, live cattle, lean hogs,
over $100, the effect of current CBOE Statement of the Terms of Substance of gold, silver, copper, cocoa, coffee, sugar
rules is to require a higher opening the Proposed Rule Change #11, cotton, orange juice, platinum,
amount for currently-opened series than crude oil, heating oil, and natural gas.
for newly established series. Nasdaq proposes to trade, pursuant to The Index is calculated to produce an
unlisted trading privileges (‘‘UTP’’), unweighted geometric mean of the
IV. Conclusion shares (‘‘Shares’’) of the GreenHaven individual commodity price relatives,
It is therefore ordered, pursuant to Continuous Commodity Fund (‘‘Fund’’). i.e., a ratio of the current price to the
section 19(b)(2) of the Act,17 that the The text of the proposed rule change base year average price. The Fund
proposed rule change (SR–CBOE–2006– is available from the Exchange’s Web pursues its investment objective by
36), as modified by Amendments No. 1, site (http://nasdaq.complinet.com), at investing substantially all of its assets in
2, and 3, be, and hereby is, approved the principal office of the Exchange, and the Master Fund. The Master Fund
with respect to the minimum value size at the Commission’s Public Reference pursues its investment objective by
for an opening transaction in a Room. investing in a portfolio of exchange-
traded futures contracts (‘‘Commodity
currently-opened FLEX Equity series
II. Self-Regulatory Organization’s Futures Contracts’’) on the commodities
(other than FLEX Quotes responsive to
Statement of the Purpose of, and comprising the Index (‘‘Index
a FLEX Request for Quotes) and to
Statutory Basis for, the Proposed Rule Commodities’’). The Master Fund also
establish a Pilot Program for one-and-a- holds cash and U.S. Treasury securities
Change
half-years with respect to the reduced for deposit with the Master Fund’s
minimum number of contracts required In its filing with the Commission, the Commodity Broker as margin and other
for a FLEX Equity Option Opening Exchange included statements high-credit-quality short-term fixed
transaction in a new series. concerning the purpose of, and basis for, income securities. The Master Fund’s
For the Commission, by the Division of the proposed rule change and discussed portfolio is managed to reflect the
Trading and Markets, pursuant to delegated any comments it received on the performance of the Index over time.
authority.18 proposed rule change. The text of these The Funds will not be subject to
Florence E. Harmon, statements may be examined at the registration and regulation under the
places specified in Item III below. The Investment Company Act of 1940. The
Deputy Secretary.
Exchange has prepared summaries, set Master Fund is not actively managed,
[FR Doc. E8–4748 Filed 3–10–08; 8:45 am] but instead seeks to track the
forth in sections A, B, and C below, of
BILLING CODE 8011–01–P
the most significant aspects of such performance of the CCI–TR. To maintain
statements. the correspondence between the
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composition and weightings of the


Index Commodities comprising the
3 See Securities Exchange Act Release No. 56969
17 15 U.S.C. 78s(b)(2). 1 15 U.S.C. 78s(b)(1). (December 14, 2007), 72 FR 724211 (December 20,
18 17 CFR 200.30–3(a)(12). 2 17 CFR 240.19b–4. 2007) (SR–Amex–2007–53) (‘‘Amex Proposal’’).

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Federal Register / Vol. 73, No. 48 / Tuesday, March 11, 2008 / Notices 13061

Index, GreenHaven Commodity Services Exchange would cease trading the Fund on a daily basis by means of CTA/
LLC (‘‘Managing Owner’’) 4 may adjust Shares. CQ High Speed Lines information with
the portfolio on a daily basis to conform The disseminated value of the Index respect to the corresponding Indicative
to periodic changes in the identity and/ will not reflect changes to the prices of Fund Value (as discussed below), recent
or relative weighting of the Index the Index Commodities between the NAV’s per Share and shares
Commodities. The Managing Owner close of trading of the various outstanding. Amex will also make
will also make adjustments and changes Commodity Futures Contracts and the available on its Web site daily trading
to the portfolio in the case of significant close of trading of Nasdaq’s regular volume of the Shares, closing prices of
changes to the Index. market session. In addition, Reuters and the Shares, and the NAV per Share. The
Amex on their respective Web sites will closing prices and settlement prices of
Dissemination and Availability of also provide any adjustments or changes the Commodity Futures Contracts held
Information About the Underlying to the Index. by the Master Fund are also readily
Index, Underlying Futures Contracts The daily settlement prices for each of available from the NYMEX, CBOT,
and the Shares the Commodity Futures Contracts held CME, and NYBOT; automated quotation
According to the Amex Proposal, by the Master Fund are publicly systems; published or other public
Reuters is the owner, publisher, and available on the NYBOT, New York sources; or on-line information services
custodian of CCI–TR, which represents Mercantile Exchange (‘‘NYMEX’’), such as Bloomberg or Reuters.
a total return version of the ninth Chicago Mercantile Exchange (‘‘CME’’), The Bank of New York (the
revision (as of 1995) of the original and Chicago Board of Trade (‘‘CBOT’’) ‘‘Administrator’’) calculates and
Commodity Research Bureau (CRB) Web sites.5 In addition, various data disseminates, once each trading day, the
Index. Values of the underlying Index vendors and news publications publish NAV per Share to market participants.
are computed by Reuters and widely futures prices and data. Futures contract Amex has represented that it will obtain
disseminated every 15 seconds during quotes and last-sale information for the a representation (prior to listing of the
Amex’s trading hours, which Commodity Futures Contracts on the Funds) that the NAV per Share will be
corresponds to Nasdaq’s regular market Index Commodities is widely calculated daily and made available to
session. disseminated through a variety of all market participants at the same time.
CCI–TR is calculated to offer investors market data vendors worldwide, In addition, the Administrator causes to
a representation of the investable including Bloomberg and Reuters. In be made available on a daily basis the
returns that an investor should expect to addition, complete real-time data for the corresponding Cash Deposit Amounts to
receive by attempting to replicate the Commodity Futures Contracts are be deposited in connection with the
CCI index by buying the respective available by subscription from Reuters issuance of the respective Shares. In
commodity futures and collateralizing and Bloomberg. The various futures addition, other investors can request
their investment with U.S. Government exchanges also provide delayed futures such information directly from the
securities (i.e., 90-day T-Bills). The CCI– information on current and past trading Administrator, and such information
TR takes into account the economics of sessions and market news free of charge will be provided upon request.
rolling listed commodity futures on their respective Web sites. The In order to provide updated
forward to avoid delivery and maintain specific contract specifications for each information relating to the Fund for use
exposure in liquid contracts. To achieve Commodity Futures Contract are also by investors, professionals, and persons
the objectives of the index, Reuters has available from the various futures wishing to create or redeem the Shares,
established rules for calculation of the exchanges on their Web sites as well as Amex will disseminate, through the
index. Specifically, only settlement and other financial informational sources. facilities of CTA, an updated Indicative
The Web site for the Fund and/or Fund Value for the Fund, according to
last-sale prices are used in the Index’s
Amex, which are publicly accessible at the Amex Proposal. The Indicative Fund
calculation, bids and offers are not
no charge, will contain the following Value will be disseminated on a per-
recognized. Where no last-sale price
information: (1) The current NAV per Share basis at least every 15 seconds
exists, typically in the more deferred Share daily and the prior business day’s from 9:30 a.m. to 4:15 p.m. ET. The
contract months, the previous days’ NAV per Share and the reported closing Indicative Fund Value will be
settlement price is used. price; (2) the midpoint of the bid-ask calculated based on the cash required
According to the Amex Proposal, the price 6 in relation to the NAV per Share for creations and redemptions (i.e., NAV
Managing Owner represents that it will as of the time the NAV per Share is x 50,000) for the Fund adjusted to
seek to arrange to have the Index calculated (‘‘Bid-Ask Price’’); (3) reflect the price changes of the
calculated and disseminated on a daily calculation of the premium or discount Commodity Futures Contracts and the
basis through a third party if the Index of such price against such NAV per holdings of U.S. Treasury securities and
Sponsor ceases to calculate and Share; (4) data in chart form displaying other high-credit-quality short-term
disseminate the Index. If, however, the the frequency distribution of discounts fixed income securities. In addition,
Managing Owner is unable to arrange and premiums of the Bid-Ask Price quotations and last-sale information
the calculation and dissemination of the against the NAV per Share, within regarding the Shares will be
Index, Amex has represented in the appropriate ranges for each of the four disseminated through the facilities of
Amex Proposal that it will undertake to previous calendar quarters; (5) the the CTA.
delist the Shares. In such event, the Prospectus; and (6) other applicable The Indicative Fund Value will not
quantitative information. reflect changes to the price of an
4 GreenHaven Commodity Services LLC, a
According to the Amex Proposal, underlying commodity between the
Delaware limited liability company, will serve as
the Managing Owner of the Fund and the Master
Amex intends to disseminate for the close of trading of the futures contracts
at the relevant futures exchanges and
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Fund. The Managing Owner will serve as the


commodity pool operator (‘‘CPO’’) and commodity 5 See http://www.nybot.com, http://
the close of trading of Nasdaq’s regular
trading advisor (‘‘CTA’’) of the Fund and the Master www.nymex.com, http://www.cme.com and http;// market session on the Exchange. The
Fund. The Managing Owner is registered as a CPO www.cbot.com.
and CTA with the Commodity Futures Trading 6 The bid-ask price of Shares is determined using Indicative Fund Value will not reflect
Commission (‘‘CFTC’’) and is a member of the the highest bid and lowest offer as of the time of changes to the price of an underlying
National Futures Association (‘‘NFA’’). calculation of the NAV. commodity in the pre-market or post-

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13062 Federal Register / Vol. 73, No. 48 / Tuesday, March 11, 2008 / Notices

market trading sessions. The value of a Surveillance to various fees and expenses described
Share may accordingly be influenced by Nasdaq believes that its surveillance in the relevant registration statement.
non-concurrent trading hours between procedures are adequate to address any The Information Circular will also
Exchange and the various futures concerns about the trading of the Shares reference the fact that there is no
exchanges on which the futures on Nasdaq. Trading of the Shares regulated source of last-sale information
contracts based on the Index through Nasdaq will be subject to regarding physical commodities, that
commodities are traded. While the FINRA’s surveillance procedures for the Commission has no jurisdiction over
Shares will trade on the Exchange from equity securities in general.7 The the trading of commodity futures
7 a.m. to 8 p.m. ET, the trading hours Exchange may obtain information via contracts, and that the CFTC has
for each of the Index commodities the Intermarket Surveillance Group regulatory jurisdiction over the trading
underlying the futures contracts will (‘‘ISG’’) from other exchanges who are of commodity futures contracts.
vary. members or affiliates of the ISG.8 The Information Circular will also
While the markets for futures trading Information Circular disclose the trading hours of the Shares
for each of the Index commodities is of the Fund and that the NAV for the
Nasdaq is able to obtain information Shares will be calculated after 4 p.m.
open, the Indicative Fund Value can be regarding trading in the Shares and the
expected to closely approximate the ET, each trading day.
underlying Futures Contracts through
value per Share of the corresponding its members in connection with the 2. Statutory Basis
Basket Amount. However, during proprietary or customer trades that such
Exchange trading hours when the members effect on any relevant market. Nasdaq believes that the proposed
Commodity Futures Contracts have Nasdaq is party to Information Sharing rule change is consistent with the Act
ceased trading, spreads and resulting Agreements with NYMEX for the and the rules and regulations
premiums or discounts may widen and, purpose of providing information in thereunder applicable to a national
therefore, increase the difference connection with trading in or related to securities exchange. Specifically,
between the price of the Shares and the Futures Contracts traded on those Nasdaq believes that the proposed rule
NAV of the Shares. The Indicative Fund markets. If the Fund trades on other change is consistent with the section
Value on a per-Share basis disseminated exchanges, Nasdaq will enter into 6(b)(5) 9 requirements that an exchange
during Nasdaq’s regular market session information sharing agreements with have rules designed to promote just and
should not be viewed as a real-time those particular exchanges. equitable principles of trade, to remove
update of the NAV, which is calculated Prior to the commencement of impediments to and perfect the
trading, Nasdaq will inform its members mechanism of a free and open market
only once a day.
in an Information Circular of the special and a national market system, and, in
Trading Halts characteristics and risks associated with general, to protect investors and the
trading the Shares. Specifically, the public interest. In addition, Nasdaq
Nasdaq will halt trading in the Shares believes that the proposal is consistent
Information Circular will discuss the
under the conditions specified in following: (1) The procedures for with Rule 12f–5 under the Act 10
Nasdaq Rules 4120 and 4121. The purchases and redemptions of Shares in because it deems the Shares to be equity
conditions for a halt include a Baskets (and that Shares are not securities, thus rendering trading in the
regulatory halt by the listing market. individually redeemable); (2) Nasdaq Shares subject to the Exchange’s
UTP trading in the Shares will also be Rule 2310, which imposes suitability existing rules governing the trading of
governed by provisions of Nasdaq Rule obligations on Nasdaq members with equity securities.
4120(b) relating to temporary respect to recommending transactions in
interruptions in the calculation or wide B. Self-Regulatory Organization’s
the Shares to customers; (3) how Statement on Burden on Competition
dissemination of the Indicative Fund information regarding the Indicative
Value. Additionally, Nasdaq may cease Fund Value is disseminated; (4) the The Exchange does not believe that
trading the Shares if other unusual requirement that members deliver a the proposed rule change will impose
conditions or circumstances exist prospectus to investors purchasing any burden on competition that is not
which, in the opinion of Nasdaq, make newly issued Shares prior to or necessary or appropriate in furtherance
further dealings on Nasdaq detrimental concurrently with the confirmation of a of the purposes of the Act.
to the maintenance of a fair and orderly transaction; (5) the risks involved in
market. Nasdaq will also follow any trading the Shares during the pre-market C. Self-Regulatory Organization’s
procedures with respect to trading halts and post-market trading sessions when Statement on Comments on the
as set forth in Nasdaq Rule 4120(c). an updated Indicative Fund Value will Proposed Rule Change Received From
Finally, Nasdaq will stop trading the not be calculated or publicly Members, Participants or Others
Shares if the listing market delists them. disseminated; and (6) trading The Exchange neither solicited nor
information. The Information Circular received comments on the proposal.
Trading Rules will also discuss any exemptive, no-
action, or interpretive relief granted by III. Solicitation of Comments
Nasdaq deems the Shares to be equity
the Commission from any rules under
securities, thus rendering trading in the Interested persons are invited to
the Act.
Shares subject to its existing rules In addition, the Information Circular submit written data, views, and
governing the trading of equity will reference that the Fund is subject arguments concerning the foregoing,
securities, including Nasdaq Rule 4630, including whether the proposed rule
which governs trading of Commodity- change is consistent with the Act.
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7 FINRA surveils trading on Nasdaq pursuant to

Related Securities. The trading hours for a regulatory services agreement. Nasdaq is Comments may be submitted by any of
the Shares on the Exchange would be 7 responsible for FINRA’s performance under this the following methods:
regulatory services agreement.
a.m. to 8 p.m., ET, unless such trading 8 For a list of the current members and affiliate
hours are changed by a subsequent rule members of ISG, see http://www.isgportal.com. 9 15 U.S.C. 78f(b)(5).
change. CBOT, CME, and NYBOT are members of ISG. 10 17 CFR 240.12f–5.

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Federal Register / Vol. 73, No. 48 / Tuesday, March 11, 2008 / Notices 13063

Electronic Comments Commission finds that the proposed disseminate the Indicative Fund Value
• Use the Commission’s Internet rule change is consistent with section per Share through the facilities of the
comment form (http://www.sec.gov/ 6(b)(5) of the Act,12 which requires that Consolidated Tape Association at least
rules/sro.shtml); or an exchange have rules designed, among every 15 seconds throughout Amex
• Send an e-mail to rule- other things, to promote just and trading hours for the Shares. Amex will
comments@sec.gov. Please include File equitable principles of trade, to remove also make available on its Web site daily
Number SR–NASDAQ–2008–012 on the impediments to and perfect the trading volume, the closing prices, and
subject line. mechanism of a free and open market the NAV. Quotations and last-sale
and a national market system, and in information regarding the Commodity
Paper Comments general to protect investors and the Futures Contracts are widely
• Send paper comments in triplicate public interest. The Commission disseminated through a variety of
to Nancy M. Morris, Secretary, believes that this proposal should market data vendors worldwide,
Securities and Exchange Commission, benefit investors by increasing including Bloomberg and Reuters. In
100 F Street, NE., Washington, DC competition among markets that trade addition, complete real-time data for the
20549–1090. the Shares. Commodity Futures Contracts is
All submissions should refer to File In addition, the Commission finds available from Reuters and Bloomberg.
Number SR–NASDAQ–2008–012. This that the proposal is consistent with The relevant futures exchanges also
file number should be included on the section 12(f) of the Act,13 which permits provide various market data and
subject line if e-mail is used. To help the an exchange to trade, pursuant to UTP, contract specifications for each
Commission process and review your a security that is listed and registered on Commodity Futures Contract on their
comments more efficiently, please use another exchange.14 The Commission respective Web sites.
only one method. The Commission will notes that it previously approved the The Commission also believes that the
post all comments on the Commission’s listing and trading of the Shares on proposal appears reasonably designed to
Internet Web site (http://www.sec.gov/ Amex.15 The Commission also finds that preclude trading of the Shares if
rules/sro.shtml). Copies of the the proposal is consistent with Rule transparency is impaired or there is
submission, all subsequent 12f–5 under the Act,16 which provides unfair dissemination of the NAV.
amendments, all written statements that an exchange shall not extend UTP Trading in the Shares will be subject to
with respect to the proposed rule to a security unless the exchange has Nasdaq Rule 4120(b), which provides
change that are filed with the ineffect a rule or rules providing for that, if the listing market halts trading
Commission, and all written transactions in the class or type of when the Indicative Fund Value is not
communications relating to the security to which the exchange extends being calculated or disseminated, the
proposed rule change between the UTP. The Exchange has represented that Exchange also would halt trading.
Commission and any person, other than it meets this requirement because it Nasdaq also will halt trading in the
those that may be withheld from the deems the Shares to be equity securities, Shares if it learns that the listing market
public in accordance with the thus rendering trading in the Shares has instituted a regulatory halt, which
provisions of 5 U.S.C. 552, will be subject to the Exchange’s existing rules would include instances where Amex
available for inspection and copying in governing the trading of equity halts trading in the Shares because the
the Commission’s Public Reference securities. NAV per Share is not disseminated to
Room, 100 F Street, NE., Washington, The Commission further believes that all market participants at the same time.
DC 20549, on official business days the proposal is consistent with section Lastly, the Exchange has represented
between the hours of 10 a.m. and 3 p.m. 11A(a)(1)(C)(iii) of the Act, which sets
17 that it may halt trading in the Shares if
Copies of such filing also will be forth Congress’ finding that it is in the other unusual conditions or
available for inspection and copying at public interest and appropriate for the circumstances exist which make further
the principal office of the Exchange. All protection of investors and the dealings on the Exchange detrimental to
comments received will be posted maintenance of fair and orderly markets the maintenance of a fair and orderly
without change; the Commission does to assure the availability to brokers, market.
dealers, and investors of information In support of this proposal, the
not edit personal identifying
with respect to quotations for and Exchange has made the following
information from submissions. You
transactions in securities. Quotations for additional representations:
should submit only information that
1. The Exchange’s surveillance
you wish to make available publicly. All and last-sale information regarding the
Shares are disseminated through the procedures are adequate to properly
submissions should refer to File
facilities of the CTA and the monitor Exchange trading of the Shares
Number SR–NASDAQ–2008–012 and
Consolidated Quotation System. In in all trading sessions and to deter and
should be submitted on or before April
addition, Amex will calculate and detect violations of Exchange rules.
1, 2008. 2. Prior to the commencement of
IV. Commission’s Findings and Order 12 15 U.S.C. 78f(b)(5). trading, the Exchange would inform its
Granting Accelerated Approval of the 13 15 U.S.C. 78 l (f). members in an Information Bulletin of
Proposed Rule Change 14 Section 12(a) of the Act, 15 U.S.C. 78 l (a), the special characteristics and risks
generally prohibits a broker-dealer from trading a associated with trading the Shares.
After careful review, the Commission security on a national securities exchange unless 3. The Information Bulletin also
finds that the proposed rule change is the security is registered on that exchange pursuant
to Section 12 of the Act. Section 12(f) of the Act would discuss the requirement that
consistent with the requirements of the
excludes from this restriction trading in any members deliver a prospectus to
Act and the rules and regulations security to which an exchange ‘‘extends UTP.’’ investors purchasing newly issued
thereunder applicable to a national When an exchange extends UTP to a security, it
yshivers on PROD1PC62 with NOTICES

Shares prior to or concurrently with the


securities exchange.11 In particular, the allows its members to trade the security as if it were
listed and registered on the exchange even though confirmation of a transaction.
11 In approving this rule change, the Commission it is not so listed and registered. This approval order is based on the
notes that it has considered the proposal’s impact
15 See supra note 3. Exchange’s representations.
on efficacy, competition, and capital formation. See 16 17 CFR 240.12f–5. The Commission notes that, if the
15 U.S.C. 78c(f). 17 15 U.S.C. 78k–1(a)(1)(C)(iii). Shares should be delisted by the listing

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13064 Federal Register / Vol. 73, No. 48 / Tuesday, March 11, 2008 / Notices

exchange, the Exchange would no 19b–4(f)(2) thereunder,4 which renders Orders).6 Technological limitations 7
longer have authority to trade the Shares it effective upon filing with the make it impossible for floor brokers to
pursuant to this order. Commission. The Commission is post orders on other markets while at
The Commission finds good cause for publishing this notice to solicit the point of sale on the Exchange.
approving this proposal before the comments on the proposed rule change Therefore, unlike other Exchange users,
thirtieth day after the publication of from interested persons. they are unable to benefit from the
notice thereof in the Federal Register. incentives certain other markets provide
As noted above, the Commission I. Self-Regulatory Organization’s to customers who provide liquidity. The
previously found that the listing and Statement of the Terms of Substance of time that would elapse if a floor broker
trading of the Shares on Amex is the Proposed Rule Change sent the order to his booth or upstairs
consistent with the Act. The trading desk for execution on another
Commission presently is not aware of The Exchange proposes to amend its
equity transaction fees, for market means that, if the floor broker
any regulatory issue that should cause it utilized this alternative, the trade would
to revisit this finding or would preclude implementation on March 1, 2008.
Member Organizations will receive a likely not get executed at the desired
the trading of the Shares on the
$.0004 per share credit for execution of price. The Exchange believes this
Exchange pursuant to UTP. Therefore,
disparity places floor brokers at a
accelerating approval of this proposal orders sent directly to the floor broker
competitive disadvantage to other
should benefit investors by creating, for representation on the NYSE when
Exchange customers and believes that
without undue delay, additional adding liquidity to the NYSE Display
the proposed credit will mitigate the
competition in the market for the Book system (including Percentage
Shares. effects of that disadvantage while also
Orders). The text of the proposed rule
It is therefore ordered, pursuant to attracting additional liquidity to the
change is available at http://
section 19(b)(2) of the Act,18 that the Exchange.
www.nyse.com, the Exchange, and the
proposed rule change (SR–NASDAQ– Commission’s Public Reference Room. The Exchange believes the credit is
2008–012) be, and it hereby is, approved justified because of the importance of
on an accelerated basis. II. Self-Regulatory Organization’s the floor brokers to the continuation of
For the Commission, by the Division of Statement of the Purpose of, and the floor as an integral part of the
Trading and Markets, pursuant to delegated Statutory Basis for, the Proposed Rule Exchange’s market model. The
authority.19 Change Exchange’s market model integrates the
Florence E. Harmon, auction market with automated trading.
In its filing with the Commission, Essential to this model is the interaction
Deputy Secretary.
NYSE included statements concerning between the specialists, floor brokers,
[FR Doc. E8–4749 Filed 3–10–08; 8:45 am]
the purpose of, and basis for, the and orders in the Display Book system,
BILLING CODE 8011–01–P
proposed rule change and discussed any which creates opportunities for price
comments it received on the proposed improvement, provides information
SECURITIES AND EXCHANGE rule change. The text of these statements about changing market conditions, and
COMMISSION may be examined at the places specified serves as a catalyst to trading. The
in Item IV below. NYSE has prepared Exchange believes that this incentive
[Release No. 34–57433; File No. SR–NYSE–
summaries, set forth in sections A, B, will allow floor brokers to remain
2008–15]
and C below, of the most significant competitive.
Self-Regulatory Organizations; New aspects of such statements.
The Exchange’s 2008 Price List is also
York Stock Exchange LLC; Notice of A. Self-Regulatory Organization’s being modified to reflect the fact that it
Filing and Immediate Effectiveness of is no longer necessary to note that
Statement of the Purpose of, and
Proposed Rule Change to Provide a Percentage Orders adding liquidity to
Statutory Basis for, the Proposed Rule
Credit to Members for Execution of the NYSE are free of charge, as
Change
Orders Sent Directly to a Floor Broker Percentage Orders can only be accepted
that Adds Liquidity to the Exchange 1. Purpose by Exchange systems if sent through a
March 5, 2008. The Exchange proposes to amend its floor broker’s hand-held device, and
Pursuant to section 19(b)(1) of the equity transaction fees, for thus all Percentage Orders that were
Securities Exchange Act of 1934 implementation on March 1, 2008. formerly free will now receive the
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 Member organizations will receive a $.0004 per share credit.
notice is hereby given that on February $.0004 per share credit for execution of
28, 2008, the New York Stock Exchange orders sent directly to the floor broker
6 An order adds liquidity to the market if it is

LLC (‘‘NYSE’’ or ‘‘Exchange’’) filed with posted on the book for execution against incoming
for representation on the NYSE when orders on the contra side. Generally, Exchange
the Securities and Exchange
adding liquidity to the NYSE Display customers are able to send their orders to other
Commission (the ‘‘Commission’’) the markets to avail themselves of incentives those
proposed rule change as described in Book system 5 (including Percentage
markets provide to customers who provide
Items I, II, and III below, which Items liquidity. Floor brokers add liquidity to the market
4 17 CFR 240.19b–4(f)(2). by posting orders either as e-Quotes or as DOT or
have been substantially prepared by the 5 The Percentage Orders. Non-electronic trades on the
Display Book system is an order
Exchange. The Exchange filed the management and execution facility. The Display Exchange floor do not add liquidity to the book and
proposed rule change pursuant to Book system receives and displays orders to the are either charged a fee of $.0004 per share (if they
section 19(b)(3)(A) of the Act 3 and Rule specialists, contains the Book, and provides a are non-electronic agency transactions of less than
yshivers on PROD1PC62 with NOTICES

mechanism to execute and report transactions and 10,000 shares between brokers in the crowd) or are
18 15 publish the results to the Consolidated Tape. The free (if they are non-electronic trades of 10,000
U.S.C. 78s(b)(2). shares or more).
19 17
Display Book system is connected to a number of
CFR 200.30–3(a)(12). other Exchange systems for the purposes of 7 The Exchange’s order management system on
1 15 U.S.C. 78s(b)(1).
comparison, surveillance, and reporting the floor, the Broker Booth Support System
2 17 CFR 240.19b–4.
information to customers and other market data and (BBSS), is not configured to route orders away from
3 15 U.S.C. 78s(b)(3)(A). national market systems. the floor to another market.

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