NYSE Request for No-Action Relief Regarding Average Price and Multiple Capacity Confirmations

The New York Stock Exchange requests assurance that the SEC staff will not recommend enforcement action under Rule 10b-10 if its members issue a single confirmation reflecting the average price or multiple capacities of executions filling a single customer order. This relief is conditional on the confirmation reporting the averaged unit price, identifying the execution capacity, stating total remuneration in a single amount, and noting that details of individual executions are available upon request. Members must continue to report each individual execution separately under NYSE trade reporting rules and maintain records under Exchange Act Rules 17a-3 and 17a-4.

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. NYSE
March 3, 2005
Ms. Catherine McGuire, Esq.
Associate Director and Chief Counsel
Division of Market Regulation
Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, DC 20549
Re: Rule 10b-IO- Request forNo-Action Relief Dear Ms. McGuire:
Weare writing to request assurance that the staff of the Division of Market Regulation ("Staff') will not recommend enforcement action under Ru1e IOb-I0 under the Securities Exchange Act of 1934 ("Exchange Act") to the Securities and Exchange Commission ("Commission") if members or member organizations of the New York Stock Exchange, Inc. ("NYSE") effect transactions in NYSE-listed equity securities and give or send a single confirmation that (1) reflects the average price and/or multiple capacities of multiple executions undertaken to fill a single customer order, and (2) provides other information related to such transactions as described more fully below. The requirements of best execution, together with the advent of decimal trading and the May 2000 rescission ofNYSE Rule 390 (which generally had prohibited NYSE members and their affiliates from effecting certain transactions in NYSE-listed securities away from the NYSE), raise a strong possibility that a single customer order received by an NYSE member organization may be executed at multiple prices, in mu1tiplecapacities, and/or on mu1tiplemarkets. The following are examples of each scenario:

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