[Federal Register: November 9, 2006 (Volume 71, Number 217)]
[Notices]
[Page 65867-65869]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr09no06-151]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-54692; File No. SR-NSX-2006-12]
Self-Regulatory Organizations; National Stock Exchange, Inc.;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Implement a Fee Schedule Under Rule 16.1(a) and 16.1(c) for
Transactions Executed Through the Intermarket Trading System Plan and/
or the Plan for the Purpose of Creating and Operating an Intermarket
Communications Linkage
November 2, 2006.
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 2, 2006, the National Stock Exchange, Inc.SM
(``NSX'' 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 prepared by NSX. NSX
submitted the proposed rule change
[[Page 65868]]
under 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 is proposing to implement a Fee Schedule under Rule
16.1(a) and 16.1(c) for transactions executed through the Intermarket
Trading System Plan and/or the Plan for the Purpose of Creating and
Operating an Intermarket Communications Linkage (``ITS Plans'').\5\ The
text of the proposed rule change is available on the Exchange's Web
site at http://www.nsx.com, at the Exchange's Office of the Secretary
and at the Commission's Public Reference Room.
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\5\ Since October 1, 2006, the effective date of the ``Plan for
the Purpose of Creating and Operating an Intermarket Communications
Linkage Pursuant to Section 11A(a)(3)(B) of the Securities Exchange
Act of 1934'' (``Linkage Plan''), connectivity between markets is
provided pursuant to the Linkage Plan. See Securities Exchange Act
Release No. 54551 (September 29, 2006), 71 FR 59148 (October 6,
2006) (approving the NMS Linkage Plan).
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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, 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 parts of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
In anticipation of the approval of the Exchange's new trading
rules,\6\ the Exchange amended its rules in July 2006 to add Chapter
XVI to its rules to set forth, in their own chapter, rules relating to
fees, dues, assessments and the tape rebate program. The rule change,
SR-NSX-2006-10, was filed pursuant to Section 19(b)(3)(A) of the Act,
which rendered it effective upon filing.\7\ As part of that filing,
Rule 16.1(c) states that the Exchange will ``provide ETP Holders with
notice of all relevant dues, fees, assessments and charges of the
Exchange. Such notice may be made available to ETP Holders on the
Exchange's Web site or by any other method deemed reasonable by the
Exchange.''
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\6\ See Securities Exchange Act Release No. 54391 (August 31,
2006), 71 FR 52836 (September 7, 2006).
\7\ See Securities Exchange Act Release No. 54194 (July 24,
2006), 71 FR 43258 (July 31, 2006) (Rule 16.3 provides that the new
Chapter XVI will become effective upon written notice by the
Exchange to the ETP Holders).
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As part of this rule change, the Exchange is filing a Fee Schedule
under Rule 16.1(a) and 16.1(c) for transactions executed through the
ITS Plans.\8\ The Fee Schedule provides for the ability to pass through
costs that are assessed by a third party to the Exchange if such costs
are attributable to transactions executed through the ITS Plans.\9\
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\8\ As set forth in Release No. 34-54194, the Exchange proposed
to maintain a separate fee schedule that contains its current fees,
dues and other charges, instead of including all of its specific
fees, dues and charges in the text of its rules.
\9\ See Securities Exchange Act Release Nos. 54548 (September
29, 2006), 71 FR 59159 (October 6, 2006) and 54480 (September 21,
2006) 71 FR 57596 (September 29, 2006) (which allow Linkage Plan
participants to directly bill, and to accept direct billing from,
any such Linkage Plan participants that are unable to implement
Sponsoring Member billing by October 1, 2006.)
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While SR-NSX-2006-10 was effective upon filing, Rule 16.3 allows
the Exchange to delay the effectiveness of Chapter XVI until it gives
written notice to its ETP Holders. The Exchange will give notice
declaring Rule 16.1(a) and 16.1(c) of Chapter XVI effective solely to
implement the pass-through cost provisions for transactions executed
through the ITS Plans. All other fees continue to be governed by Rule
11.10 for National Securities Trading System Fees. Moreover, nothing in
the proposed Fee Schedule alters in any way any fees otherwise owed
under NSX Rule 11.10.
Pursuant to newly approved Rule 16.1(c), the Exchange will
``provide ETP Holders with notice of all relevant dues, fees,
assessments and charges of the Exchange.'' ETP Holders and others using
the Exchange will be advised of these fees through the Exchange's Web
site. In addition, the ETP Holders will, simultaneous with the filing,
be notified through the issuance of a Regulatory Circular declaring
Rule 16.1(a) and 16.1(c) of Chapter XVI effective, and attaching the
new Fee Schedule applicable to transactions through the ITS plans.
The fees have been designed in this manner in order to ensure that
the Exchange can continue to fulfill its obligations under Section 6(b)
of the Act.\10\
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\10\ 15 U.S.C. 78f(b).
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2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the provisions of Section 6(b) of the Act,\11\ in general, and
Section 6(b)(4) of the Act,\12\ in particular, in that it is designed
to provide for the equitable allocation of reasonable dues, fees and
other charges.
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\11\ See id.
\12\ 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 proposed rule change has become effective pursuant to Section
19(b)(3)(A)(ii) of the Act \13\ and subparagraph (f)(2) of Rule 19b-4
\14\ thereunder, because it involves a member due, fee or other charge.
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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\13\ 15 U.S.C. 78s(b)(3)(A)(ii).
\14\ 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
[[Page 65869]]
Number SR-NSX-2006-12 on the subject line.
Paper Comments
Send paper comments in triplicate to Nancy Morris,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.
All submissions should refer to File No. SR-NSX-2006-12. This file
number should be included in the subject line if e-mail is used. To
help the Commission process and review 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 such
filings will also 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-NSX-2006-12 and should be submitted on or before
November 30, 2006.
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\15\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Market Regulation,
pursuant to the delegated authority.\15\
Nancy Morris,
Secretary.
[FR Doc. E6-18947 Filed 11-8-06; 8:45 am]
BILLING CODE 8011-01-P