[Federal Register: October 17, 2007 (Volume 72, Number 200)]
[Notices]
[Page 58923-58924]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr17oc07-122]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-56642; File No. SR-NYSEArca-2007-100]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of a Proposed Rule Change Relating to
Exchange Fees and Charges
October 11, 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 October 1, 2007, NYSE Arca, Inc. (``NYSE Arca'' or ``Exchange'')
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 the Exchange. NYSE Arca has
designated this proposal as one establishing or changing a due, fee, or
other charge imposed by NYSE Arca under section 19(b)(3)(A)(ii) 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)(ii).
\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
NYSE Arca proposes to amend its Schedule of Fees and Charges for
Exchange Services (``Fee Schedule''). The text of the proposed rule
change is available at the Exchange, the Commission's Public Reference
Room, and http://www.nysearca.com.
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. 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
NYSE Arca states that the purpose of this filing is to amend the
existing Fee Schedule by eliminating the Marketing Charges associated
with options on the S&P 500 Index (SPY). The Exchange also proposes to
revise a footnote in the Fee Schedule that references the Penny Pilot
program.
The Exchange presently assesses a $1.00 per contract Marketing
Charge on certain Market Maker transactions in options that overlie the
S&P 500 Index (SPY). As per the Fee Schedule, the Exchange does not
assess Marketing Charges on issues that trade as part of the Penny
Pilot Program (``Pilot''). On September 28, 2007, options on SPY were
included in the Pilot. Therefore, the Exchange will no longer assess a
Marketing Fee on SPY options.
In addition, in the Transaction Fees section on the Fee Schedule,
the Exchanges lists fees that are specific to the Pilot. The original
Pilot expired on July 27, 2007 and was extended through September 27,
2007. The Exchange has received approval to once again extend the
Pilot, this time until March 27, 2009.\5\ A footnote referencing the
expiration date of the Pilot is included on the Fee Schedule, and has
been revised each time the Pilot was extended. The Exchange now
proposes to remove the expiration date of the Pilot in the associated
footnote and instead reference NYSEArca Rule 6.72. The terms of the
Pilot, including any expiration date, are contained in Rule 6.72 and
are revised each time the Pilot is extended.
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\5\ See Securities Exchange Act Release No. 56568 (September 27,
2007), 72 FR 56422 (October 3, 2007) (SR-NYSEArca-2007-88).
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[[Page 58924]]
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with section 6(b) of the Act \6\ in general, and furthers the
objectives of section 6(b)(4) of the Act \7\ in particular, in that it
is designed to provide for the equitable allocation of reasonable dues,
fees, and other charges among NYSE Arca members.
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\6\ 15 U.S.C. 78f(b).
\7\ 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
The Exchange has neither solicited nor received written comments on
the proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing proposed rule change has been designated as a fee
change pursuant to section 19(b)(3)(A)(ii) of the Act \8\ and Rule 19b-
4(f)(2) \9\ thereunder, because it establishes or changes a due, fee,
or other charge imposed on members by the Exchange. Accordingly, the
proposal will take effect upon filing with the Commission. At any time
within 60 days of the filing of such 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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\8\ 15 U.S.C. 78s(b)(3)(A)(ii).
\9\ 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-2007-100 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-2007-100. 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, 100 F Street,
NE., Washington, DC 20549, on official business days between the hours
of 10 a.m. and 3 p.m. 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 available publicly. All
submissions should refer to File Number SR-NYSEArca-2007-100 and should
be submitted on or before November 7, 2007.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\10\
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\10\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-20445 Filed 10-16-07; 8:45 am]
BILLING CODE 8011-01-P