Federal Register / Vol. 71, No. 248 / Wednesday, December 27, 2006 / Notices 77847 

6 15 U.S.C. 78f(b)(5). 

7 15 U.S.C. 78s(b)(3)(A). 

8 17 CFR 240.19b-4(f)(6). 

9 17 CFR 240.19b-4(e)(6)(iii). 10 17 CFR 200.30–3(a)(12). 

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). 

attributes trade volume for direct billing 

purposes. 

2. Statutory BasisThe 

Exchange states that the basis under 

the Act for this proposed rule change is 

the requirement under Section 6(b)(5) 6

that an exchange have rules that are 

designed to promote just and equitable 

principles of trade, to serve to remove 

impediments to and perfect the 

mechanism of a free and open market 

and a national market system, and in 

general, to protect investors and the 

public interest. The Exchange states that 

the proposed rule will provide more 

accurate order identification. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange states that the proposed 

rule change does not 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 states that no written 

comments were solicited or received 

with respect to the proposed rule 

change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the foregoing proposed rule 

change: (1) Does not significantly affect 

the protection of investors or the public 

interest; (2) does not impose any 

significant burden on competition; and 

(3) by its terms does not become 

operative for 30 days after the date of 

this filing, or such shorter time as the 

Commission may designate if consistent 

with the protection of investors and the 

public interest, the proposed rule 

change has become effective pursuant to 

Section 19(b)(3)(A) of the Act 7 and Rule 

19b-4(f)(6) thereunder.8

The Exchange requests that the 

Commission waive the provision in 

Rule 19b-4(e)(6)(iii) 9 requiring written 

notice of the NYSE’s intent to file the 

proposed rule change at least five days 

prior to the filing date. The Commission 

grants the Exchange’s request to waive 

the pre-filing requirement because a 

similar version this proposal was filed 

previously with the Commission. 

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. 

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 rulecomments@sec.gov. Please include File 

No. SR–NYSE–2006–89 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 

No. SR–NYSE–2006–89. 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 such filing 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 No. 

SR–NYSE–2006–89 and should be 

submitted on or before January 17, 2007. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.10

Nancy M. Morris, 

Secretary. 

[FR Doc. E6–22090 Filed 12–26–06; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–54966; File No. SR–

NYSEArca–2006–89] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change and Amendment No. 1 

Thereto Relating to Exchange Fees 

and Charges 

December 19, 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 December 

1, 2006, 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 NYSE Arca. 

On December 15, 2006, the Exchange 

submitted Amendment No. 1 to the 

proposed rule change. 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, 

as amended, from interested persons. 

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 (‘‘Schedule’’) to 

make a minor change to the Firm 

Transaction Fee, eliminate certain 

obsolete fees, and make a nonsubstantive formatting change to the 

Schedule. The text of the proposed rule 

change is available on NYSE Arca’s Web 

site at http://www.nysearca.com, at the 

principal office of NYSE Arca, and at 

the Commission’s Public Reference 

Room. 


jlentini on PROD1PC65 with NOTICES
77848 Federal Register / Vol. 71, No. 248 / Wednesday, December 27, 2006 / Notices 

5See NYSE Arca Rule (1(r). 

6See Securities Exchange Act Release No. 53165 

(January 22, 2006), 71 FR 4955 (January 30, 2006) 

(SR–PCX–2005–136.. 

7See Securities Exchange Act Release No. 54309 

(August 11, 2006), 71 FR 48571 (August 21, 2006) 

(SR–NYSEArca–2006–25). 

8See Securities Exchange Act Release No. 54238 

(July 28, 2006), 71 FR 44758 (August 7, 2006)(SR–

NYSEArca–2006–13). 

9 15 U.S.C. 78f. 

10 15 U.S.C. 78f(b)(4). 

11See NYSE Arca rule 1(q). 

12 15 U.S.C. 78s(b)(3)(A)(ii). 

13 17 CFR 240.19bn–4(f)(2). 

14 15 U.S.C. 78s(b)(3)(C). For purposes of 

calculating the 60-day period within which the 

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 the 

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 its 

Schedule in order to make a minor 

change to the Firm Transaction Fee, 

eliminate certain obsolete fees, and 

make a non-substantive formatting 

change. 

Changes to the Firm Transaction Fee 

NYSE Arca charges transaction fees 

associated with all option contracts that 

are executed on the Exchange. The 

current Firm Transaction Fee applies to 

OTP Firm 5 proprietary trades that have 

a customer of that firm on the contra 

side of the transaction. The Exchange 

offers this rate as an incentive to OTP 

Firms to direct their customer orders to 

NYSE Arca for execution. NYSE Arca 

applies the Firm Transaction Fee to all 

trades between an OTP Firm and a 

customer of the same OTP Firm, 

whenever a proprietary account of the 

firm is used. This includes market 

makers that trade against orders that 

their affiliated firm represents for 

customers. The Firm Transaction Fee 

became applicable for certain market 

maker transactions upon the filing of a 

proposed rule change with the 

commission.6 At that time the Market 

Maker Transaction Fee was $0.26 per 

contract and the Firm Transaction Fee 

was $0.15 per contract. As stated above, 

the cost savings was offered as a 

incentive for Firms to send addition 

customer orders to NYSE Arca. As part 

of a more recent proposed rule change,7

the Market Maker Transaction Fee was 

lowered to $0.16 per contract, 

representing a savings of almost 40% 

over the previous fee. Because of the 

reduction in the Market Maker 

Transaction Fee, the additional savings 

afforded by the application of the Firm 

Transaction Fee in certain instances, is 

no longer significant. In order to 

simplify the billing process, all market 

maker transactions will now be billed 

the same the fee of $0.16 per contract. 

While this change represents a modest 

$0.01 increase in certain cases, the 

Exchange believes that it is more than 

compensated for by the previous 

reduction in the Market Maker 

Transaction Fee. 

The change to this fee will be 

reflected in the footnote associated with 

the Firm Transaction Fee on the 

Schedule. 

Elimination of Obsolete Fees 

Due to changes in the market 

structure at NYSE Arca certain fees have 

become outdate and obsolete. The 

Exchange proposes to eliminate these 

fees from the Schedule. 

• Order Cancellation Fee—This fee 

was applied to orders were cancelled on 

the PCX Plus automated trading system. 

This system is no longer in use and 

accordingly the fee no longer applies. 

∑ Booth WorkStation Fee—This fee 

was assessed to OTP Firms operating on 

the floor of the Exchange that used 

certain Exchange provided 

workstations. These workstations have 

been replaced by firm proprietary 

systems; therefore the fee no longer 

applies. 

∑ Printer Fee—Prior to the 

introduction of the OX system,8 the 

Exchange provided printers that would 

generate order tickets in certain cases 

where orders were not electronically 

executed or represented. OX is a fully 

automated system and does not need to 

print order tickets. The printers are no 

longer in use and therefore the user fee 

no longer applies. 

∑ Market Maker Held Fees—Market 

Makers on the floor of the Exchange 

now use proprietary trading systems to 

interface with the OX system. The 

Market Maker Hand Held system is no 

longer in use on NYSE Area; 

accordingly the fees associated with it 

no longer apply. 

Administrative Changes 

the Exchange also proposes a change 

to the formatting of the Schedule. 

Presently, the Schedule shows a list of 

explanatory end notes on the last page 

of the Schedule. With the new format, 

the end notes will be moved to the 

appropriate page that shows the 

corresponding fee or charge. Except 

where previously noted, the language in 

the reference notes will remain the 

same, just the formatting of the 

reference note will change. The 

Exchange believes that by having the 

reference notes on the same page as the 

corresponding charge or fee, the 

Schedule will be more user friendly and 

easier to read. 

2. Statutory Basis 

The Exchange believes that the 

proposal is consistent with the 

provisions of Section 6 of the Act, 9 in 

general, and with Section 6(b)(4) of the 

Act,10 in particular, in that the proposal 

provides for the equitable allocation of 

reasonable dues, fees, and other charges 

among its OTP Holders 11 and OTP 

Firms trading option contracts on NYSE 

Arca. 

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 12 and subparagraph (f)(2) of Rule 

19b–4 thereunder 13 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.14


jlentini on PROD1PC65 with NOTICES
Federal Register / Vol. 71, No. 248 / Wednesday, December 27, 2006 / Notices 77849 

Commission may summarily abrogate the proposal, 

the Commission considers the period to commence 

on December 15, 2006, the date on which the 

Exchange submitted Amendment No. 1. 

15 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 54944 

(December 15, 2006). 

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 from (http://www.sec.gov/ 

rules/sro.shtml); or 

• Send an e-mail to rulecomments@sec.gov. Please include File 

Number SR–NYSEArca–2006–89 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–2006–89. 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–2006–89 and 

should be submitted on or before 

January 17, 2007. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.15

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 06–9864 Filed 12–26–06; 8:45 am] 

BILLING CODE 8011–01–M 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–54967; File No. SR–

NYSEArca–2006–90] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and Order 

Granting Accelerated Approval of 

Proposed Rule Change to Trade 

Exchange-Traded Notes Linked to the 

MSCI India Total Return Index 

Pursuant to Unlisted Trading 

Privileges 

December 19, 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 December 

18, 2006, NYSE Arca, Inc. (the 

‘‘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 and II 

below, which Items have been 

substantially prepared by the Exchange. 

The Commission is publishing this 

notice and order to solicit comments on 

the proposal from interested persons 

and to approve the proposal on an 

accelerated basis. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange, through NYSE Arca 

Equities, is proposing to trade 

Exchange-Traded Notes (‘‘Notes’’) of 

Barclays Bank PLC (‘‘Barclays’’) linked 

to the performance of the MSCI India 

Total Return Index (‘‘Index’’) pursuant 

to unlisted trading privileges (‘‘UTP’’). 

The text of the proposed rule change is 

available on the Exchange’s Web site 

http://www.nysearca.com, at the 

principal office of the Exchange, and at 

the Commission’s Public Reference 

Room. 

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 III below. The 

Exchange 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 is proposing to trade 

the Notes of Barclays linked to the 

performance of the Index pursuant to 

UTP. The Index is a free-float-adjusted 

market capitalization index that is 

designed to measure the market 

performance, including price 

performance and income from dividend 

payments, of Indian equity securities. 

The Index is currently comprised of the 

top 68 companies by market 

capitalization listed on the National 

Stock Exchange of India. The Index is 

calculated by Morgan Stanley Capital 

International Inc. (‘‘MSCI’’) and is 

denominated in U.S. dollars. A rule 

proposal for the original listing and 

trading of the Notes by New York Stock 

Exchange LLC (‘‘NYSE’’) has been 

approved by the Commission.3 The 

Exchange deems the Notes to be an 

equity securities, thus rendering trading 

in the Notes subject to the Exchange’s 

existing rules governing the trading of 

equity securities. The trading hours for 

the Notes on the Exchange would be 

from 9:30 a.m. to 8 p.m. Eastern Time 

(‘‘ET’’) in accordance with NYSE Arca 

Equities Rule 7.34(a). 

Quotations for and last sale 

information regarding the Notes are 

disseminated through the Consolidated 

Quotation System. Bloomberg L.P. 

disseminates the value of the Index 

under the ticker symbol ‘‘NDEUSIA’’

and this information is widely 

disseminated by quotation vendors. The 

Index is static during the NYSE’s 

trading day from 9:30 a.m. ET to 4 p.m. 

ET, which is equivalent to the 

Exchange’s Core Trading Session. An 

intraday ‘‘indicative value’’ (‘‘IIV’’) 

meant to approximate the intrinsic 


jlentini on PROD1PC65 with NOTICES