[Federal Register: January 24, 2007 (Volume 72, Number 15)]
[Notices]
[Page 3184-3185]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr24ja07-94]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-55120; File No. SR-NYSE-2006-110]
Self-Regulatory Organizations; New York Stock Exchange LLC; Order
Approving a Proposed Rule Change Relating to Its Linkage Order Fee
January 18, 2007.
On December 6, 2006, the New York Stock Exchange LLC (``NYSE'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission''), pursuant to Section 19(b)(1) of the Securities
Exchange Act of 1934 (``Act'' or ``Exchange Act'') \1\ and Rule 19b-4
thereunder,\2\ a proposal to retroactively apply an increase in the fee
(``Linkage Order Fee'') it charges its member organizations in
connection with orders in equities executed in another market pursuant
to the Plan for the Purpose of Creating and Operating an Intermarket
Communications Linkage (``Linkage Plan''). The proposal was published
for comment in the Federal Register on December 15, 2006.\3\ The
Commission received no comments on the proposal. This order approves
the proposed rule change.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ See Securities Exchange Act Release No. 54912 (December 11,
2006), 71 FR 75601.
---------------------------------------------------------------------------
The Exchange proposes to retroactively apply, as of December 1,
2006, an increase from $0.00025 to $0.000275 per share in the Linkage
Order Fee it charges its member organizations in connection with orders
in equities executed in another market pursuant to the Linkage Plan.
This increase in the Linkage Order Fee became effective on Monday,
December 4, 2006, pursuant to a previous rule change submitted by the
Exchange.\4\ The Linkage Order Fee was increased to $0.000275 to set it
at the same level as the regular equity transaction fee, which was
increased to that level as of December 1, 2006.\5\ The current filing
simply applies the revised Linkage Order Fee to transactions that
occurred on December 1, 2006, which is the only business day with
respect to which the Linkage Order Fee and the regular equity
transaction fee were not harmonized by the previous filing. The
Exchange wishes to harmonize the Linkage Order Fee payable on
[[Page 3185]]
transactions executed through the Linkage on December 1, 2006, with the
regular equity transaction fee payable on that day because the
difference in the amount payable by customers would be immaterial, but
the Exchange would incur significant costs in identifying those
transactions which should be charged the lower fee rate.\6\
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release No. 54911 (December 11,
2006), 71 FR 75603 (December 15, 2006) (notice of filing and
immediate effectiveness of SR-NYSE-2006-108).
\5\ See Exchange Act Release No. 54856 (December 1, 2006); 71 FR
71215 (December 8, 2006) (SR-NYSE-2006-106).
\6\ The Exchange estimates that the difference in the amount of
Linkage Order Fees payable under the old rate as compared to the
proposed revised rate by customers for trades executed on December
1, 2006, would be less than $2,000.00. Telephone conversation
between John Carey, Assistant General Counsel, NYSE, and Nathan
Saunders, Special Counsel, Division of Market Regulation,
Commission, December 7, 2006.
---------------------------------------------------------------------------
The Commission finds that the proposed rule change is consistent
with the requirements of the Act and the rules and regulations
thereunder applicable to a national securities exchange \7\ and, in
particular, the requirements of Section 6(b) of the Act \8\ and the
rules and regulations thereunder. Specifically, the Commission finds
that the proposal to retroactively apply the increase in the Linkage
Order Fee is consistent with Section 6(b)(4) of the Act,\9\ which
requires the equitable allocation of reasonable dues, fees, and other
charges among Exchange members and other persons using Exchange
facilities.
---------------------------------------------------------------------------
\7\ In approving this proposed rule change, the Commission has
considered the proposed rule's impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\10\ that the proposed rule change (File No. SR-NYSE-2006-110) be,
and it hereby is, approved.
---------------------------------------------------------------------------
\10\ Id.
\11\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\11\
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-974 Filed 1-23-07; 8:45 am]
BILLING CODE 8011-01-P