Federal Register / Vol. 72, No. 65 / Thursday, April 5, 2007 / Notices 16841 

18See supra note 5. 

19 15 U.S.C. 78f(b)(5). 

20 In approving the proposed rule change, as 

amended, the Commission notes that it has 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

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

21See supra note 4. 

22See supra note 5. 

23The CFTC rules became effective on September 

30, 2004. See 69 FR 49784 (Aug. 12, 2004). 

24 15 U.S.C. 78s(b)(2). 

25 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

III. Summary of Comment Received 

The Commission received one 

comment letter to the proposed rule 

change.18 The commenter supported 

prompt implementation of the proposal 

and commented specifically on the 

proposed changes to NYSE Rule 431(e). 

The NYSE, however, deleted this 

proposed paragraph in Amendment No. 

3, and determined to proceed with the 

proposed rule change addressing 

amendments to NYSE Rules 325 and 

326 only. No specific comments were 

received with respect to the proposed 

amendments to these rules. 

IV. Discussion and Commission 

Findings 

The Commission has carefully 

reviewed the proposed rule change and 

comment letter and finds that the 

proposed rule change is consistent with 

the requirements of Section 6(b)(5) 19 of 

the Exchange Act, which requires that 

the rules of the Exchange be designed to 

promote just and equitable principles of 

trade, 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.20

The Commission believes that the 

proposed amendments are consistent 

with the requirements of Section 6(b)(5) 

of the Act in that they align the language 

in Rules 325 and 326 to reflect the 

Commission amendments to Rule 15c3–

1 with regard to the alternative method 

of computing net capital for brokerdealers and they incorporate the CFTC 

rule amendments for NYSE member 

firms registered as futures commission 

merchants. 

NYSE has requested that the 

Commission find good cause for 

approving the proposed rule change 

prior to the thirtieth day after the date 

of publication of notice of Amendment 

No. 3 in the Federal Register. The 

Commission notes that the proposal, as 

modified by Amendment Nos. 1 and 2, 

was published for notice and 

comment,21 and that the Commission 

received one comment letter.22 In 

Amendment No. 3, NYSE made 

proposed changes to NYSE Rules 325 

and 326 to make conforming changes to 

CFTC early warning requirements for 

futures commission merchants and 

determined not to proceed with 

amendments to Rule 431(e).23

Accordingly, the Commission does not 

believe that Amendment No. 3 raises 

any new or novel issues. Based on the 

above, the Commission finds good cause 

to accelerate approval of the proposed 

rule change, as amended. 

V. Solicitation of Comments 

Interested persons are invited to 

submit written data, views and 

arguments concerning the foregoing, 

including whether the proposed rule 

change, as amended, 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–NYSE–2005–03 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–NYSE–2005–03. 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 NYSE. 

VI. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,24 that the 

proposed rule change (SR–NYSE–2005–

03), as amended, be, and hereby is, 

approved on an accelerated basis. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.25

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–6311 Filed 4–4–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55555; File No. SR–NYSE–

2007–09] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Notice of 

Filing of Proposed Rule Change as 

Modified by Amendments No. 1 and 2 

Thereto Relating to Rule 18 

(Compensation in Relation to System 

Failure) 

March 29, 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 January 

26, 2007, the New York Stock Exchange 

LLC (‘‘NYSE’’ 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. The Exchange filed 

Amendments No. 1 and 2 to the 

proposal on February 1, 2007, and 

March 28, 2007, respectively. The 

Commission is publishing this notice to 

solicit comment 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 adopt 

Rule 18, ‘‘Compensation in Relation to 

Exchange System Failure,’’ which will 

provide a form of compensation to 

member organizations when a loss is 

sustained in relation to an Exchange 

system failure. The Exchange further 

proposes to amend Rule 134 

(‘‘Differences and Omissions-Cleared 

Transactions (‘‘QTs’’)’’) to require that 

profits equal to or greater than $5,000 

gained in relation to an Exchange 

system failure be remitted to the 

Exchange to be included in funds 

available for distribution pursuant to 

proposed Rule 18. 

The text of the proposed rule change 

is available on the Exchange’s Web site 

(http://www.nyse.com), at the 


jlentini on PROD1PC65 with NOTICES
16842 Federal Register / Vol. 72, No. 65 / Thursday, April 5, 2007 / Notices 

3See 15 U.S.C. 78c(a)(26). 

4See DL Capital Group, LLC v. Nasdaq Stock 

Market, Inc., 409 F.3d 93, 99 (2d Cir. 2005); 

D’Alessio v. New York Stock Exchange, Inc., 258 

F.3d 93, 104–05 (2d Cir. 2001). 

5Telephone conversation between Deanna Logan, 

Director, Office of the General Counsel, NYSE, and 

Nathan Saunders, Special Counsel, Division of 

Market Regulation (‘‘Division’’), Commission, on 

March 29, 2007. 

Exchange’s Office of the Secretary, 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, 

NYSE included statements concerning 

the purpose of and basis for 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 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 a self-regulatory 

organization (‘‘SRO’’) as that term is 

defined under the Act.3 In its capacity 

as a SRO the Exchange functions as a 

quasi-governmental authority and is 

therefore entitled to immunity from 

lawsuits.4 NYSE Rule 17 provides that 

the ‘‘Exchange shall not be liable for any 

damages sustained by a member, allied 

member or member organization 

growing out of the use or enjoyment by 

such member, allied member or member 

organization of the facilities afforded by 

the Exchange, except as provided in the 

rules.’’

The Exchange proposes to adopt Rule 

18, ‘‘Compensation in Relation to 

Exchange System Failure,’’ in order to 

establish a procedure to compensate 

member organizations in relation to 

Exchange system failures. The Exchange 

recognizes that the current industry 

practice of exchanges that function as 

SROs is to provide a form of 

compensation for losses sustained in 

relation to the use of the company’s 

systems. As such, the Exchange seeks to 

adopt NYSE Rule 18 in order to conform 

to current industry practice. 

a. Claims for Compensation 

Pursuant to the proposed rule, an 

Exchange system failure is defined as a 

malfunction of the Exchange’s physical 

equipment, devices, and/or 

programming which results in an 

incorrect execution or no execution of 

an order that was received in Exchange 

systems. Misuse of Exchange systems 

and delays in order processing as a 

result of large volume or other capacity 

issues, commonly known as ‘‘queuing,’’

are not considered Exchange system 

failures. 

In order for a member organization to 

be eligible to receive payment for a 

claim, it must incur a net loss equal to 

or greater than $5,000. That is, the loss 

must total $5,000 after any profits 

received in relation to the same incident 

are subtracted. Claims must be 

submitted on a per incident basis. 

Member organizations are not permitted 

to aggregate losses incurred as a result 

of more than one system failure in order 

to satisfy the $5,000 minimum claim 

requirement. 

In addition to the minimum claim 

requirement, member organizations are 

required to informally notify the 

Exchange’s Division of Floor Operations 

of a suspected Exchange system failure 

by the opening of the next business day 

following an incident. Formal written 

notice of the suspected Exchange system 

failure must be provided to the 

Exchange’s Division of Floor Operations 

no later than end of the third business 

day after the incident. 

Once in receipt of a claim, the 

Exchange’s Division of Floor Operations 

will verify that: (i) A valid order was 

accepted into Exchange’s systems; and 

(ii) an Exchange system failure occurred 

during the execution or handling of that 

order. If all of the criteria for submitting 

a claim have been met, the claim will 

be qualified for processing with all other 

eligible claims at the end of the calendar 

month in which the incident occurred. 

b. Exchange Funds Available for Claims 

Pursuant to proposed Rule 18, the 

Exchange will allot $500,000 each 

calendar month (‘‘Monthly Allotment’’) 

to be used for payments to member 

organizations that qualify for 

compensation under the Rule. The 

Monthly Allotment constitutes the 

initial amount to be contributed by the 

Exchange to provide compensation in 

relation to Exchange system failures for 

each calendar month regardless of the 

total dollar amount of claims eligible for 

payment. The Monthly Allotments do 

not aggregate, and except as set forth 

below, the Monthly Allotment for each 

calendar month is $500,000. In the 

event that less than $250,000 of the 

Monthly Allotment is paid out for a 

given calendar month, $50,000 of that 

month’s remaining Monthly Allotment 

(‘‘Supplemental Allotment’’) will be 

added to a supplemental fund available 

for payment in subsequent calendar 

months. For example, if during the first 

full calendar month of operating under 

proposed NYSE Rule 18, the total 

amount paid to member organizations is 

$100,000, leaving $400,000 remaining 

from the original Monthly Allotment, 

the following month, the Exchange will 

allot the Monthly Allotment of $500,000 

and an additional $50,000 will be 

carried over from the previous calendar 

month’s remaining balance for a total of 

$550,000 eligible for payment to 

member organizations in the second 

calendar month. 

This Supplemental Allotment will 

only be used to pay claims after the 

Monthly Allotment is exhausted. If 

claims are satisfied by the Monthly 

Allotment, the Supplemental Allotment, 

or any unused portion thereof, will be 

carried forward every month. Every 

month that does not pay out more than 

$250,000 of the Monthly Allotment will 

result in a Supplemental Allotment to 

the subsequent Monthly Allotment as 

described above. If in any calendar 

month the amount of funds required to 

pay eligible claims of member 

organizations is equal to or exceeds 

$250,000 of the Monthly Allotment, no 

Supplemental Allotment will be added 

to the Monthly Allotment for the 

subsequent calendar month. 

The Exchange shall determine what, if 

any, maximum dollar amount may 

accrue over time as part of the 

Supplemental Allotment. Any and all 

Exchange determinations as to a 

maximum dollar amount that may 

accrue over time as part of the 

Supplemental Allotment shall be 

formally reflected in the text of Rule 18. 

In addition, after a few years of Rule 

18’s implementation, Exchange 

management intends to review both the 

maximum dollar amount, if any, which 

may be accrued as part of the 

Supplemental Allotment and the 

Monthly Allotment to determine 

whether they are appropriate. The 

Exchange understands that it would be 

required to file a proposed rule change 

should Exchange management 

determine to establish or change any 

maximum dollar amount for the 

Supplement Allotment or to modify the 

amount of the Monthly Allotment.5

c. Other Funds Available for Payment of 

Claims 

In addition to the Monthly Allotment 

and Supplemental Allotment, the 

Exchange proposes to amend Exchange 

Rule 134.40 to provide that any error 

transactions in a member organization’s 

account in relation to an Exchange 

system failure which results in a profit 


jlentini on PROD1PC65 with NOTICES
Federal Register / Vol. 72, No. 65 / Thursday, April 5, 2007 / Notices 16843 

6Telephone conversation between Deanna Logan, 

Director, Office of the General Counsel, NYSE, and 

Nancy Sanow, Assistant Director, and Nathan 

Saunders, Special Counsel, Division, Commission, 

on March 7, 2007. 

7 15 U.S.C. 78a. 

8 15 U.S.C. 78f(b)(5). 

equal to or greater than $5,000 must be 

remitted to the Exchange (‘‘Profit 

Contribution’’). Profit Contributions will 

be added to the Monthly Allotment and 

any Supplemental Allotment. 

Currently, pursuant to Exchange Rule 

134.40, member organizations must 

report certain profits to the Exchange, 

but are not required to remit any part 

thereof to the Exchange. The Exchange 

proposes to amend Rule 134.40 to 

require that profits equal to or greater 

than $5,000 gained in relation to an 

Exchange system failure be remitted to 

the Exchange in order to be applied to 

payments to member organizations 

pursuant to proposed NYSE Rule 18. 

The Profit Contribution will operate 

similarly to the Supplemental Allotment 

in that it will only be used for payments 

after all other funds are exhausted (i.e., 

Monthly Allotment and any 

Supplemental Allotment). In the event 

that the payments to member 

organizations are satisfied by the 

Monthly Allotment and any 

Supplemental Allotment, then the Profit 

Contribution will carry over each 

subsequent calendar month until 

required for the payments of eligible 

claims. 

d. Compensation Payments to Claimants 

In order to review qualified claims 

and administer payments, the Exchange 

will establish a panel consisting of three 

(3) Floor Governor and three (3) 

Exchange employees (the 

‘‘Compensation Review Panel’’). The 

Compensation Review Panel will meet 

and review all the claims that are 

submitted for a calendar month in order 

to determine: (i) If each claim satisfies 

all the criteria for payment; and (ii) the 

amount to be paid on the claim 

(‘‘approved claims’’). 

As part of its determination, the 

Compensation Review Panel must 

review the actions of the member 

organization and its employees before 

and after the error occurred in order to 

determine if any of the claimant’s 

actions contributed to the loss 

sustained. The Compensation Review 

Panel may increase or reduce the 

amount deemed eligible for payment as 

a result of its review. All decisions by 

the Compensation Review Panel are 

final. 

The determinations of the 

Compensation Review Panel will be by 

majority vote. In the event of deadlock, 

all relevant information about the claim 

will be sent to the Chief Executive 

Officer of the Exchange (‘‘CEO’’) or the 

President or his or her designee who 

will make a final determination. Like 

the determinations of the Compensation 

Review Panel, all the determinations of 

the CEO are final. 

Once each claim is reviewed and the 

amount to be paid on each approved 

claim is decided, the Compensation 

Review Panel will total the dollar 

amount of all approved claims for the 

calendar month under review. If the 

total dollar amount of approved claims 

is less than the Monthly Allotment, then 

the claims will be paid to the claimants 

in full. If the total amount of approved 

claims exceeds the Monthly Allotment, 

then any Supplemental Allotment and/ 

or Profit Contribution will be added to 

the Monthly Allotment in order to 

satisfy approved claims. In the event 

that the approved claims for a month 

exceed the sum of the Monthly 

Allotment, the Supplemental Allotment 

(if any), and the Profit Contribution (if 

any), then the approved claims will be 

paid out to member organizations based 

upon the proportion that each eligible 

claim bears to the total amount of all 

approved claims. 

e. Retroactivity of Proposed Rule 18 

The Exchange further requests to have 

proposed NYSE Rule 18 function 

retroactively. Specifically, the Exchange 

seeks to allow member organizations to 

submit claims to the Exchange for any 

alleged Exchange system failures that 

occurred between September 1, 2006 

and the date of Commission approval of 

the proposed rule. After Commission 

approval, all other claims must be 

submitted as prescribed by the rule. The 

Monthly Allotment will be set aside for 

each calendar month in the period for 

which Rule 18 is retroactively effective.6

However, the Supplemental Allotment 

and Profit Contribution provisions of 

the rule will not be retroactive, but will 

begin to accrue the month after 

Commission approval of proposed Rule 

18 in accordance with provisions 

governing those funds. 

2. Statutory Basis 

The Exchange’s basis under the Act 7

for this proposed rule change is the 

requirement under Section 6(b)(5) 8 that 

an Exchange have rules that are 

designed to promote just and equitable 

principles of trade, to foster cooperation 

and coordination with persons engaged 

in regulating, clearing, settling, 

processing information with respect to, 

and facilitating transactions in 

securities, 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. 

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 

Within 35 days of the date of 

publication of this notice in the Federal 

Register or within such longer period (i) 

As the Commission may designate up to 

90 days of such date if it finds such 

longer period to be appropriate and 

publishes its reasons for so finding, or 

(ii) as to which the Exchange consents, 

the Commission will: 

(A) By order approve the proposed 

rule change, or 

(B) Institute proceedings to determine 

whether the proposed rule change 

should be disapproved. 

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–NYSE–2007–09 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–NYSE–2007–09. 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 


jlentini on PROD1PC65 with NOTICES
16844 Federal Register / Vol. 72, No. 65 / Thursday, April 5, 2007 / Notices 

9 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. 54007 

(June 16, 2006), 71 FR 36155 (June 23, 2006) (SR–

NYSEArca-2006–16). 

4 15 U.S.C. 78f. 

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

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 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–NYSE–2007–09 and should 

be submitted on or before April 26, 

2007. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.9

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–6376 Filed 4–4–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55564; File No. SR–

NYSEArca-2007–17] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing of Proposed 

Rule Change To Waive Certain Listing 

Fees for Dually-Listed Issuers Who 

Delist During 2007 

March 30, 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 6, 

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. 

The Commission is publishing this 

notice to solicit comments on the 

proposal from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange, through its whollyowned subsidiary NYSE Arca Equities, 

Inc. (‘‘NYSE Arca Equities’’), proposes 

to waive 2007 listing fees for any 

companies who, as of January 1, 2007, 

were dually listed on NYSE Arca 

Equities, on the one hand, and another 

national securities exchange, on the 

other hand, and have provided notice by 

June 30, 2007 to NYSE Arca Equities of 

their intention to voluntarily withdraw 

from listing on NYSE Arca. The NYSE 

Arca schedule of listing fees will be 

amended to note that, for those issuers 

dually listed on NYSE Arca Equities on 

January 1, 2007 and who have given 

notice by June 30, 2007 to NYSE Arca 

Equities of their intention to voluntarily 

withdraw from listing on NYSE Arca 

(and in fact withdraw during 2007), the 

2007 annual listing fees will be waived. 

The text of the proposed rule change 

is available on the Exchange’s Web site 

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

Exchange’s Office of the Secretary, 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, through NYSE Arca 

Equities, proposes to waive 2007 listing 

fees for any companies who, as of 

January 1, 2007, were dually listed on 

NYSE Arca Equities, on the one hand, 

and another national securities 

exchange, on the other hand, and have 

provided notice by June 30, 2007 to 

NYSE Arca Equities of their intention to 

voluntarily withdraw from listing on 

NYSE Arca. The NYSE Arca schedule of 

listing fees will be amended to note that, 

for those issuers dually listed on NYSE 

Arca Equities on January 1, 2007 who 

have given notice by June 30, 2007 to 

NYSE Arca Equities of their intention to 

voluntarily withdraw from listing on 

NYSE Arca (and in fact withdraw 

during 2007), the 2007 annual listing 

fees will be waived. 

Effective January 1, 2007, the annual 

listing fees for all companies listed on 

NYSE Arca Equities were increased.3

Many of the issuers still dually listed on 

NYSE Arca Equities on January 1, 2007 

had indicated to the Exchange their 

intention to voluntarily withdraw from 

NYSE Arca. However, because of the 

dually listed issuers’ administrative or 

governance processes, some of these 

dually listed issuers were unable to 

complete the withdrawal process before 

the new fees became effective. In this 

instance, the Exchange believes that it is 

appropriate to waive the 2007 listing 

fees for issuers dually listed on NYSE 

Arca Equities as of January 1, 2007 who 

have given notice by June 30, 2007 of 

their intention to voluntarily withdraw 

during 2007 and in fact withdraw 

during 2007. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the objectives of Section 6 of the Act 4

in general and furthers the objectives of 

Section 6(b)(5) of the Act 5 in particular, 

in that it is designed to promote just and 

equitable principles of trade, to remove 

impediments, and to perfect the 

mechanism of, a free and open market 

and a national market system, and, in 

general, to protect investors and the 

public interest. 

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. 


jlentini on PROD1PC65 with NOTICES