[Federal Register: March 16, 2007 (Volume 72, Number 51)]
[Notices]
[Page 12653-12654]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr16mr07-114]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-55435; File No. SR-NYSEArca-2007-23]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change Amending Fees for
Round-Lot Transactions in NYSE-Listed Securities (Other Than ETFs)
Routed Outside the Book
March 9, 2007.
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 February 26, 2007, NYSE Arca, Inc. (``NYSE Arca'' or ``Exchange''),
through its wholly owned subsidiary NYSE Arca Equities, Inc. (``NYSE
Arca Equities''), filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I, II,
and III below, which Items have been substantially prepared by NYSE
Arca. NYSE Arca has filed the proposal pursuant to Section 19(b)(3)(A)
of the Act \3\ and Rule 19b-4(f)(2) thereunder,\4\ which renders the
proposal effective upon filing with the Commission. 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)(2).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend the section of its Schedule of Fees
and Charges for Exchange Services (``Fee Schedule'') that applies to
round-lot transactions by ETP Holders \5\ in securities (other than
exchange-traded funds, or ``ETFs'') listed on the New York Stock
Exchange LLC (``NYSE''). While changes to the Fee Schedule pursuant to
this proposal will be effective upon filing, the changes will become
operative on March 1, 2007. The text of the proposed rule change is
available at NYSE Arca, the Commission's Public Reference Room, and
http://www.nysearca.com.
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\5\ See NYSE Arca Equities Rule 1.1(n).
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II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, NYSE Arca 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. NYSE Arca 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 proposes to amend the section of its Fee Schedule that
applies to round-lot transactions by ETP Holders in NYSE-listed
securities (other than ETFs). While changes to the Fee Schedule
pursuant to this proposal will be effective upon filing, the changes
will become operative on March 1, 2007.
The Fee Schedule currently provides that ETP Holders are charged
$0.001 per share for round-lot transactions in NYSE-listed securities
that are routed outside the NYSE Arca Book. The Exchange proposes to
amend its Fee Schedule to increase this fee to $0.003 per share for
such routed orders executed at any away market center other than the
NYSE. ETP Holders will continue to be charged $0.001 per share for
round-lot transactions in NYSE-listed securities that are routed to,
and executed on, the NYSE. The Exchange proposes to increase this fee
in direct response to the recent fee announced by The NASDAQ Stock
Market LLC (``Nasdaq'') of $0.003 per share for orders that remove
liquidity from the Nasdaq Market Center for NYSE-, Amex- and regional-
listed securities (excluding ETFs), effective January 1, 2007.\6\
Specifically, the Exchange proposes this increase so that it may pass
through to its ETP Holders the increased fee that Nasdaq is charging
the Exchange for such ETP Holders' transactions.
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\6\ See Securities Exchange Act Release No. 54742 (November 13,
2006), 71 FR 67179 (November 20, 2006) (SR-NASD-2006-122). See also
Securities Exchange Act Release Nos. 54932 (December 13, 2006), 71
FR 76406 (December 20, 2006) (SR-NASD-2006-132); 55137 (January 19,
2007), 72 FR 3452 (January 25, 2007) (SR-NASDAQ-2006-068); and 55284
(February 13, 2007), 72 FR 8231 (February 23, 2007) (SR-NASDAQ-2007-
003).
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2. Statutory Basis
The Exchange believes that the proposal is consistent with the
provisions of Section 6(b) of the Act,\7\ in general, and with Section
6(b)(4) of the Act,\8\ in particular, in that the proposal
[[Page 12654]]
provides for the equitable allocation of reasonable dues, fees, and
other charges among its members and other persons using its facilities.
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\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(b)(4).
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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
Written comments on the proposed rule change were neither solicited
nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing proposed rule change is subject to Section
19(b)(3)(A)(ii) of the Act \9\ and subparagraph (f)(2) of Rule 19b-4
thereunder \10\ because it establishes or changes a due, fee, or other
charge applicable only to a member imposed by the self-regulatory
organization. Accordingly, the proposal is effective upon Commission
receipt of the filing. 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.
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\9\ 15 U.S.C. 78s(b)(3)(A)(ii).
\10\ 17 CFR 240.19b-4(f)(2).
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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 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 rule-comments@sec.gov. Please include
File Number SR-NYSEArca-2007-23 on the subject line.
Paper Comments
Send paper comments in triplicate to Nancy M. Morris,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-NYSEArca-2007-23.
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 the
filing also will be available for inspection and copying at the
principal office of NYSE Arca. 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-2007-23 and should be submitted on or before
April 6, 2007.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\11\
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\11\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-4787 Filed 3-15-07; 8:45 am]
BILLING CODE 8010-01-P