18716 Federal Register / Vol. 72, No. 71 / Friday, April 13, 2007 / Notices 

16 15 U.S.C. 78f(b). 

17 15 U.S.C. 78f(b)(5). 

18 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). 

specialist firm for any issue of CurrencyLinked Securities or its affiliates to 

make markets in and trade the Currency 

Reference Asset components, the 

currencies underlying the Currency 

Reference Asset components, or options, 

futures, or options on futures on the 

Currency Reference Asset, or any other 

derivatives based on the Currency 

Reference Asset, any Currency 

Reference Asset component, or any 

currency underlying a Currency 

Reference Asset component. 

Trading Halts 

In the case of Commodity-or 

Currency-Linked Securities, if the 

indicative value or the Commodity 

Reference Asset value or Currency 

Reference Asset value, as the case may 

be, applicable to a series of such 

securities is not being disseminated as 

required, or, in the case of Equity IndexLinked Securities, if the value of the 

Underlying Index is not being 

disseminated as required, the Exchange 

may halt trading during the day on 

which such interruption first occurs. If 

such interruption persists past the 

trading day in which it occurred, the 

Exchange will halt trading no later than 

the beginning of the trading day 

following the interruption. 

2. Statutory Basis 

The proposed rule change is 

consistent with Section 6(b) of the 

Act,16 in general, and furthers the 

objectives of Section 6(b)(5) of the Act,17

in particular, in that it is 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 such proposed 

rule change, or 

(B) Institute proceedings to determine 

whether the proposed rule change 

should be disapproved. 

The Exchange has requested accelerated 

approval of this proposed rule change 

prior to the 30th day after the date of 

publication of the notice of the filing 

thereof. The Commission has 

determined that a 15-day comment 

period is appropriate in this case. 

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–2007–27 on the 

subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Nancy M. Morris, Secretary, 

Securities and Exchange Commission, 

Station Place, 100 F Street, NE., 

Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–NYSE–2007–27. 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 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–2007–27 and should 

be submitted on or before April 30, 

2007. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.18

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–7056 Filed 4–12–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55596; File No. SR–

NYSEArca–2007–30] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Amending Fees for 

Transactions in Listed and Nasdaq 

Securities Priced Less Than One Dollar 

April 6, 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 22, 

2007, NYSE Arca, Inc. (‘‘NYSE Arca’’ or 

‘‘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, II, and 

III below, which Items have been 

substantially prepared by the Exchange. 

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


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Federal Register / Vol. 72, No. 71 / Friday, April 13, 2007 / Notices 18717 

5See NYSE Arca Equities Rule 1.1(n). 

6 17 CFR 242.610(c). 

7See Securities Exchange Act Release No. 55576 

(April 3, 2007) (SR–NASDAQ–2007–026); see also 

NASDAQ Head Trader Alert #2007–065: NASDAQ 

Announces Pricing Change for Non-NASDAQ 

Listed Executions Under $1 (March 21, 2007) 

(announcing an execution fee of 0.1%, or 10 basis 

points, for non-NASDAQ securities with a share 

price below $1.00). 

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

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

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

11 17 CFR 240.19b–4(f)(2). 

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. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to amend the 

section of its Schedule of Fees and 

Charges for Exchange Services (‘‘Fee 

Schedule’’) that applies to transactions 

by ETP Holders 5 to add a pricing 

structure for listed and Nasdaq 

securities priced less than one dollar. 

The text of the proposed rule change is 

available at NYSE Arca, the 

Commission’s Public Reference Room, 

and www.nysearca.com. 

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 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 the 

section of its Fee Schedule that applies 

to transactions by ETP Holders to add a 

separate pricing structure for listed and 

Nasdaq securities priced less than one 

dollar ($1.00) consistent with Rule 

610(c) of Regulation NMS. 6 The 

Exchange intends to implement these 

changes to the Fee Schedule pursuant to 

this proposal immediately upon filing. 

The Fee Schedule currently provides 

that ETP Holders are charged between 

$0.001 per share and $0.003 per share 

for round-lot transactions in NYSElisted and Nasdaq securities that 

execute against orders residing on the 

NYSE Arca Book. ETP Holders are 

charged $0.03 per share for listed 

securities and $0.004 per share for 

Nasdaq securities for odd-lot orders that 

execute against orders residing on the 

NYSE Arca Book. Similarly, ETP Holder 

orders that route to any away market 

center or participant and are executed 

are charged between $0.001 per share 

and $0.03 per share, dependent upon 

the away market center or participant, 

the type of security, and whether the 

transaction was for a round or odd-lot. 

The Exchange proposes to amend the 

Fee Schedule to (i) clarify that these fees 

will remain unchanged for listed and 

Nasdaq securities priced greater than or 

equal to $1.00, and (ii) add a separate, 

distinct pricing structure for listed and 

Nasdaq securities priced less than $1.00, 

pursuant to Rule 610(c) of Regulation 

NMS, and consistent with the recent fee 

announcement 7 by The NASDAQ Stock 

Market LLC. Specifically, the Exchange 

proposes to implement a fee of 0.1% of 

the total dollar value for all round and 

odd-lot transactions of ETP Holders that 

execute against orders residing on the 

NYSE Arca Book for listed or Nasdaq 

securities priced less than $1.00, and 

shall impose a fee of 0.3% of the total 

dollar value for orders of listed and 

Nasdaq securities priced less than $1.00 

that route and are executed with any 

away market center or participant. The 

Exchange will not provide a rebate 

(credit) to ETP Holders for any 

transactions in securities priced less 

than $1.00. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

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

furthers the objectives of Section 6(b)(4) 

of the Act,9 in particular, in that it is 

intended to provide for the equitable 

allocation of reasonable dues, fees, and 

other charges among its members and 

other persons using its facilities. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will result in 

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 

No written comments were either 

solicited or received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing rule change has become 

effective pursuant to Section 

19(b)(3)(A)(ii) of the Act 10 and 

subparagraph (f)(2) of Rule 19b–4 

thereunder 11 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. 

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–NYSEArca–2007–30 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–2007–30. 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 


pwalker on PROD1PC71 with NOTICES
18718 Federal Register / Vol. 72, No. 71 / Friday, April 13, 2007 / Notices 

12 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)(ii). 

4 17 CFR 240.19b–4(f)(2). 

5Although the fee schedule will reflect a cap of 

$10,000, in actuality listing the cap is just for 

clarity; mathematically, the cap would exist anyway 

because the 5% assessment would be applied to the 

monthly net floor brokerage income for all amounts 

up to and including $200,000. For example, if the 

net floor brokerage income is $300,000 for a 

particular month, then the first $200,000 would be 

assessed a rate of 5%, (which is $10,000) and the 

remainder ($100,000) would not be charged any 

additional Floor Brokerage Assessment. 6Russell 2000 is a trademark and service mark 

of the Frank Russell Company, used under license. 

Neither Frank Russell Company’s publication of the 

Russell Indexes nor its licensing of its trademarks 

for use in connection with securities or other 

financial products derived from a Russell Index in 

any way suggests or implies a representation or 

opinion by Frank Russell Company as to the 

attractiveness of investment in any securities or 

other financial products based upon or derived 

from any Russell Index. Frank Russell Company is 

not the issuer of any such securities or other 

financial products and makes no express or implied 

warranties of merchantability or fitness for any 

particular purpose with respect to any Russell 

Index or any data included or reflected therein, nor 

as to results to be obtained by any person or any 

entity from the use of the Russell Index or any data 

included or reflected therein. 

7See Securities Exchange Act Release No. 55473 

(March 14, 2007), 72 FR 13338 (March 21, 2007) 

(SR–Phlx–2007–12). 

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

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

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–2007–30 and 

should be submitted on or before May 

4, 2007. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.12

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–6959 Filed 4–12–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55599; File No. SR–Phlx–

2007–32] 

Self-Regulatory Organizations; 

Philadelphia Stock Exchange, Inc.; 

Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change Relating to the Equity Option 

and Index Option Floor Brokerage 

Assessment 

April 6, 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 30, 

2007, the Philadelphia Stock Exchange, 

Inc. (‘‘Phlx’’ 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 

Phlx. Phlx filed the proposal pursuant 

to Section 19(b)(3)(A)(ii) 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. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

Phlx proposes to amend the equity 

option and index option Floor 

Brokerage Assessment to change the 

levels of the monthly net floor brokerage 

income and corresponding assessment 

and to effectively reduce the fee cap 

from $100,000 per month to $10,000 per 

month. The proposed equity option and 

index option Floor Brokerage 

Assessment is set forth below: 

Monthly net floor 

brokerage income Assessment 

$0–$200,000 ...... 5% for all amounts up to 

and including $200,000. 

Any amount over 

$200,000.

No additional charge. 

Monthly Cap: $10,000. 

The proposed amendments to the Floor 

Brokerage Assessment, as set forth 

above, are scheduled to become 

effective for trades settling on or after 

April 2, 2007. 

The Exchange also proposes to make 

a minor technical change to clarify that 

the title ‘‘Summary of Equity Option 

and RUT and RMN Charges’’ should 

appear on each page of that section of 

the fee schedule rather than merely on 

the first page. The text of the proposed 

rule change is available at Phlx, the 

Commission’s Public Reference Room, 

and http://www.phlx.com. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, 

Phlx 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. Phlx 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 purpose of amending the Floor 

Brokerage Assessment, including 

effectively lowering the monthly fee cap 

to $10,000,5 is to create a financial 

incentive for floor brokers to send 

additional order flow to the Exchange, 

which should, in turn, allow the 

Exchange to remain competitive. 

The purpose of setting forth the title 

‘‘Summary of Equity Option and RUT 

and RMN Charges’’ on each applicable 

page of the fee schedule is to codify a 

change that was recently made to the 

Exchange’s fee schedule. The Exchange 

recently filed a proposed rule change to 

assess equity option charges (including 

payment for order flow charges), as 

opposed to index option charges, on (1) 

options on the Russell 2000 Index 6

traded under the symbol RUT (the ‘‘Full 

Value Russell Index’’), and (2) options 

on the one-tenth value Russell 2000

Index traded under the symbol RMN 

(the ‘‘Reduced Value Russell Index’’).7

The Exchange changed the title of the 

first page of the equity option fee 

schedule from ‘‘Summary of Equity 

Option Charges’’ to ‘‘Summary of Equity 

Option and RUT and RMN Charges,’’

but inadvertently did not make 

corresponding changes to the title on 

each subsequent page of the equity 

option fee schedule. Thus, placing the 

title ‘‘Summary of Equity Option and 

RUT and RMN Charges’’ on each page 

will more accurately reflect the changes 

that were recently made to the 

Exchange’s fee schedule, as described 

above. 

2. Statutory Basis 

The Exchange believes that its 

proposal to amend its schedule of fees 

is consistent with Section 6(b) of the 

Act,8 in general, and furthers the 

objectives of Section 6(b)(4) of the Act,9

in particular, in that it is an equitable 


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