[Federal Register Volume 67, Number 190 (Tuesday, October 1, 2002)]
[Notices]
[Pages 61706-61707]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-24910]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-46547; File No. SR-NYSE-2002-38]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the New York Stock Exchange,
Inc. To Expand the Hours of Operation of Its Off-Hours Trading Facility
Known as Crossing Session II
September 25, 2002.
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 August 29, 2002, the New York Stock Exchange (``NYSE'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'' or ``SEC'') the proposed rule change as described in
Items I, II, and III below, which Items have been prepared by the
Exchange. The NYSE has designated this proposed rule change as one that
has become effective upon filing with the Commission pursuant to
section 19(b)(3)(A) of the Act \3\ and Rule 19b-4(f)(5) \4\ thereunder
because it effects a change in an existing order-entry or trading
system of a self-regulatory organization that does not: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
have the effect of limiting the access to or availability of the
system.\5\ 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).
\4\ 17 CFR 240.19b-4(f)(5).
\5\ Id.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The New York Stock Exchange proposes to expand the operating hours
of one of its Off-Hours Trading Facilities, known as Crossing Session
II.
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 IV 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 purpose of the proposed rule change is to expand the time of
operation of the Exchange's Off-Hours Trading Facility (``OHTF'') known
as Crossing Session II. Currently, the OHTF consists of ``Crossing
Session I,'' which permits the execution, at the Exchange's closing
price, of single stock, single sided closing price orders and crosses
of single-stock, closing price buy and sell orders. The OHTF also
consists of ``Crossing Session II,'' which provides an opportunity for
members and member organizations to cross program trading orders in
NYSE listed securities on the Exchange between 4 p.m. and 5:15 p.m.
based on the aggregate price of the program. Matched buy and sell
orders for a minimum of 15 NYSE listed stocks having a minimum dollar
value of $1 million may be transmitted to the Exchange for execution in
Crossing Session II. These orders are transmitted via facsimile
detailing the total number of stocks, total number of shares and total
dollar value. Average daily volume reported in Crossing Session II is
23.4 million shares for 2002.
The Exchange proposes to expand the hours of operation of Crossing
Session II until 6:15 p.m. each day that the Exchange is open for its
regular 9:30 a.m. to 4 p.m. trading session. Expanding the time of
operation of Crossing Session II is simply intended to enhance the
usefulness and practicality of Crossing Session II by
[[Page 61707]]
making it available to member organizations for a greater time period.
In approving Crossing Session II, the Commission granted exemptive
relief from its Rule 10a-1 \6\ under the Act (short sale rule) for
transactions effected therein, finding that such transactions did not
raise all of the same regulatory concerns that are raised by similar
transactions during the 9:30 a.m. to 4 p.m. trading session. The
Exchange is requesting that the Commission extend the exemptive relief
from Rule 10a-1 \7\ currently available for transactions effected in
Crossing Session II to transactions effected in Crossing Session II as
modified by this proposed rule change.
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\6\ 17 CFR 240.10a-1.
\7\ Id.
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Exchange Rule 51 provides for the operation of Off-Hours Trading
``during such times as the Exchange may from time to time specify.''
Upon approval of the proposed rule change, the Exchange will alert its
membership and other market participants of the new operating hours for
Crossing Session II.
2. Statutory Basis
The Exchange believes that the basis under the Act for this
proposed rule change is the requirement under section 6(b)(5) \8\ 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.
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\8\ 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
result in any burden on competition that is not necessary or
appropriate in furtherance of the purposes of the Act, as amended.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants or Others
Written comments were neither solicited nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The proposed rule change has become effective pursuant to section
19(b)(3)(A) of the Act \9\ and Rule 19b-4(f)(5) \10\ thereunder because
it effects a change in an existing order-entry or trading system of a
self-regulatory organization that does not: (i) Significantly affect
the protection of investors or the public interest; (ii) impose any
significant burden on competition; and (iii) have the effect of
limiting the access to or availability of the system.\11\ At any time
within 60 days of this filing, the Commission may summarily abrogate
this proposal 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.
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\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 17 CFR 240.19b-4(f)(5).
\11\ Id.
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposal is
consistent with the Act. Persons making written submissions should file
six copies thereof with the Secretary, Securities and Exchange
Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. 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 will also be available for
inspection and copying at the principal office of the Exchange. All
submissions should refer to file number SR-NYSE-2002-38 and should be
submitted by October 22, 2002.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\12\
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\12\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 02-24910 Filed 9-30-02; 8:45 am]
BILLING CODE 8010-01-P
