15744 Federal Register / Vol. 72, No. 62 / Monday, April 2, 2007 / Notices 

14 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Amendment No. 1. 

4 15 U.S.C. 78s(b)(3)(A). 

5 17 CFR 240.19b–4(f)(6). The Commission 

considers the 60-day abrogation period to have 

commenced on March 19, 2007, the date NSX filed 

Amendment No. 1. 

6See Securities Exchange Act Release No. 53963 

(June 8, 2006), 71 FR 34660 (June 15, 2006) (order) 

(SR–NSX–2006–034). 

7Regulatory Circular 06–011, issued on October 

19, 2006. 

be submitted on or before April 23, 

2007. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.14

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–5984 Filed 3–30–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55542; File No. SR–NSX–

2007–02] 

Self-Regulatory Organizations; 

National Stock Exchange, Inc.; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change and 

Amendment No. 1 Thereto to Amend 

the Exchange’s Tape Rebate Programs 

for Transactions Through NSTS to 

Establish an Equivalent Tape A Rebate 

Program 

March 27, 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 

15, 2007, the National Stock Exchange, 

Inc. (‘‘NSX’’ or ‘‘Exchange’’) filed with 

the Securities and Exchange 

Commission (‘‘Commission’’) the 

proposed rule change as described in 

Items I and II below, which Items have 

been prepared substantially by NSX. 

NSX amended the proposed rule change 

on March 19, 2007.3 NSX filed the 

proposed rule change pursuant to 

Section 19(b)(3)(A) of the Act4 and Rule 

19b–4(f)(6) thereunder,5 which renders 

it 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 

The Exchange is proposing to amend 

old NSX Rule 11.10(A)(1), which is 

applicable to transactions through the 

Exchange’s legacy trading system, 

National Securities Trading System 

(‘‘NSTS’’), to provide for a rebate 

program for Tape A securities that is 

equivalent to the Exchange’s current 

Tape A rebate program applicable to 

transactions executed through the 

Exchange’s new trading system, NSX 

BLADE. This proposed Tape A rebate 

program is also equivalent to the 

Exchange’s current Tape B and Tape C 

rebate programs applicable to NSTS an 

NSX BLADE transactions. 

The text of the proposed rule change 

is available at NSX, http:// 

www.nsx.com, and 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, 

NSX 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. NSX 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 

NSX proposes to amend old Exchange 

Rule 11.10(A)(1), which is applicable to 

transactions through NSTS, to provide 

for a rebate program for Tape A 

securities that is equivalent to the 

Exchange’s current Tape A rebate 

program applicable to transactions 

executed through NSX BLADE. This 

proposed Tape A rebate program is also 

equivalent to the Exchange’s current 

Tape B and Tape C rebate programs 

applicable to NSTS and NSX BLADE 

transactions. 

The Exchange has created a new 

trading platform, known as NSX 

BLADE, which uses a strict price/time 

priority system as the ultimate 

replacement for NSTS. The Exchange is 

in the midst of phasing in NSX BLADE. 

NSX BLADE was launched on October 

23, 2006. As of the date of the initial 

filing of this proposed rule change, all 

Tape C securities have been phased into 

NSX BLADE from NSTS, and the 

Exchange plans to transition all Tape A 

and Tape B securities from NSTS to 

NSX BLADE in the near future. 

During this transitional period of 

phasing in various securities to NSX 

BLADE, the exchange will be operating 

both NSTS and NSX BLADE. Until such 

securities are phased into NSX BLADE, 

Tape A and Tape B securities will 

continue to be traded via NSTS. 

During this transitional period of 

phasing in various securities to NSX 

BLADE, the Exchange is operating both 

NSTS and NSX BLADE. Accordingly, 

the Exchange is operating under two 

sets of rules during the phase-in period. 

All transactions in the NSTS System are 

operating under the rules pertaining to 

NSTS (old Exchange Rule 11.9 (National 

Securities Trading System) and old 

Exchange Rule 11.10 (National 

Securities Trading System Fees) and any 

associated Fee Schedule) while all 

transactions in NSX BLADE are 

operating under the NSX BLADE trading 

rules approved in SR–NSX–2006–036

and the new fee rules in Chapter XVI. 

When the phase-in is complete and 

NSTS is no longer operational, old 

Rules 11.9 and 11.10 will be 

extinguished. The Exchange has issued 

a Notice to ETP Holders to advise them 

of the different trading systems and 

rules and fees applicable to each,7 and 

will issue a Notice advising them of the 

fee changes with this proposed rule 

change. 

Additionally, the Exchange currently 

offers rebate programs for Tape A, B and 

C transactions executed through NSX 

BLADE, each consisting of a 50 percent 

transaction credit on revenues generated 

by transactions executed through NSX 

BLADE in Tape A, B or C securities, 

respectively. Old Rule 11.10(A)(1), 

which is applicable to transactions 

executed through NSTS, currently 

provides for equivalent 50 percent Tape 

B and C rebate programs for transactions 

executed through NSTS. Under each of 

the Exchange’s current rebate programs, 

the credit is allocable to ETP Holders on 

a pro rata basis based upon Tape A, B 

or C revenue generated by an ETP 

Holder’s transactions on NSX BLADE or 

NSTS, as applicable. 

With the instant proposed rule 

change, the Exchange is proposing to 

adopt a rebate program for NSTS 

transactions in Tape A securities that is 

equivalent to the Exchange’s current 

Tape A rebate program applicable to 

NSX BLADE transactions. As with the 

Exchange’s other tape rebate programs, 

this proposed Tape A rebate program 

will provide a 50 percent transaction 

credit on revenues generated by 

transactions executed through NSTS in 

Tape A securities, and will be allocable 

to ETP Holders on a pro rata basis based 

upon the Tape A revenue generated by 

such ETP Holder’s transactions on 

NSTS. The Exchange believes that there 


hsrobinson on PROD1PC76 with NOTICES
Federal Register / Vol. 72, No. 62 / Monday, April 2, 2007 / Notices 15745 

8 15 U.S.C. 78f(b). 

9 15 U.S.C. 78f(b)(4) 

10 15 U.S.C. 78s(b)(3)(A). 

11 17 CFR 240.19b–4(f)(6). 

12 17 CFR 240.19b–4(f)(6)(iii). 

13For purposes only of waiving the 30-day 

operative delay of this proposal, the Commission 

has considered the proposed rule’s impact on 

efficiency, competition, and capital formation. 15 

U.S.C. 78c(f). 

14 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). 

is no regulatory reason to distinguish 

Tape A transactions on NSTS from Tape 

A transactions on NSX BLADE, and is 

therefore proposing an equivalent rebate 

program. As with the Exchange’s other 

tape rebate programs, to the extent that 

market data revenue from Tape A 

transactions is subject to any 

adjustment, credits provided under the 

Tape A program may be adjusted 

accordingly. 

The Exchange believes the proposed 

rule change is consistent with the 

protection of investors and the public 

interest because it lowers the cost of 

trading and market data to brokerdealers and the investing public, and 

because it enhances competition in the 

trading of Tape A securities. 

2. Statutory Basis 

NSX believes that the proposed rule 

change is consistent with the provisions 

of Section 6(b) of the Act,8 in general, 

and with Section 6(b)(4) of the Act,9 in 

particular, in that it is designed to 

provide for the equitable allocation of 

reasonable dues, fees and other charges 

by crediting members on a pro rata 

basis. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

NSX does not believe that the 

proposed rule change will impose any 

inappropriate burden on competition. 

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 

Because the foregoing proposed rule 

change does not: 

(i) Significantly affect the protection 

of investors or the public interest; 

(ii) Impose any significant burden on 

competition; and 

(iii) Become operative for 30 days 

from the date on which it was filed, or 

such shorter time as the Commission 

may designate, it has become effective 

pursuant to Section 19(b)(3)(A) of the 

Act 10 and Rule 19b–4(f)(6) 

thereunder.11 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. 

The Exchange has asked that the 

Commission waive the 30-day operative 

delay contained in Rule 19b–4(f)(6)(iii) 

under the Act.12 The Commission 

believes waiver of the 30-day operative 

delay is consistent with the protection 

of investors and the public interest, 

because the proposed rule change 

contains no novel regulatory issues, and 

is designed to enhance competition in 

the trading of Tape A securities. 

Accordingly, the Commission 

designates the proposed rule change to 

be effective and operative upon filing 

with the Commission.13

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 

Number SR–NSX–2007–02 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–NSX–2007–02. 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 also will be 

available for inspection and copying at 

the principal office of NSX. 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–2007–02 and should 

be submitted on or before April 23, 

2007. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.14

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–5985 Filed 3–30–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55524; File No. SR–NSX–

2007–03] 

Self-Regulatory Organizations; 

National Stock Exchange, Inc.; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change To Modify 

Fees for Transactions Executed 

Through NSX BLADE and ITS Plans 

Priced at Less Than $1.00 Per Share 

March 26, 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 March 2, 

2007, the National Stock Exchange, Inc. 

(‘‘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 

substantially prepared by the Exchange. 

NSX 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. 


hsrobinson on PROD1PC76 with NOTICES