26190 Federal Register / Vol. 72, No. 88 / Tuesday, May 8, 2007 / Notices 

10 17 CFR 200.30–3(a)(12). 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4 

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

5 17 CFR 240.19b–4(f)(2). 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.10

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–8733 Filed 5–7–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55679; File No. SR–

NYSEArca–2007–35] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Relating to Exchange 

Fees and Charges 

April 27, 2007. 

Pursuant to Section 19(b)(1) 1 of the 

Securities Exchange Act of 1934 (the 

‘‘Act’’) 2 and Rule 19b–4 thereunder,3

notice is hereby given that on April 3, 

2007, 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 prepared by Exchange. The 

Exchange has filed this proposal 

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

Act 4 and Rule 19b–4(f)(2) thereunder,5

which renders the proposed rule change 

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 

NYSE Arca is proposing to amend its 

Schedule of Fees and Charges for 

Exchange Services (‘‘Schedule’’). The 

text of the proposed rule change is 

available at 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 changes and 

discussed any comments it received 

regarding the proposal. 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 purpose of this filing is to amend 

the existing NYSE Arca Rate Schedule 

by revising or eliminating certain fees 

and adding clarifying language to either 

footnotes or explanatory text, associated 

with certain fees. The Exchange also 

proposes making minor technical 

changes to the Schedule. A brief 

description of each proposed change is 

shown below. 

OTP Trading Participant Rights 

NYSE Arca Market Makers pay a fee 

of $4,000 per month for each Options 

Trading Permit (OTP) used. The fee is 

presently capped at $16,000 per month, 

which represents four OTPs. Pursuant to 

NYSEArca Rule 6.35(d)(4), a Market 

Maker with four OTPs is permitted to 

trade all issues on the Exchange. 

Because of this provision, there would 

never be an occasion for a Market Maker 

to need more than four OTPs, thereby 

negating any need for a fee cap. As a 

result, the Exchange proposes to 

eliminate the $16,000 fee cap from the 

Schedule. 

LMM Options Issue Relinquishment Fee 

This fee was initially implemented to 

help offset the costs incurred by the 

Exchange when a Lead Market Maker 

(‘‘LMM’’) relinquished an allocated 

option issue. Previously, the 

relinquishment process involved 

administrative and technological 

changes, both of which were mostly 

manual processes. Much of the process 

has now been automated and the 

associated cost has been significantly 

reduced. Accordingly, the Exchange 

proposes eliminating the Issue 

Relinquishment Fee in its entirety. 

DEA Fee 

The Exchange charges a one time $75 

registration fee, for new applicants, 

when the Exchange also acts as the 

Designated Examining Authority. This 

fee helps to offset administrative 

expenses involved in processing new 

applications. Much of the processing is 

now done over the NASD Central 

Registration Depository (‘‘CRD’’). 

Included in the fees that NASD collects 

on behalf of the Exchange, is a $55 

assessment for new applicants. The 

Exchange believes that these fees are 

duplicitous and as such, will eliminate 

the $75 one time registration fee. 

Weekly Bulletin Subscription Fee 

NYSE Arca distributes a Weekly 

Bulletin (‘‘Bulletin’’) to OTP Holders 

and OTP Firms in order to provide them 

with regulatory bulletins, rule adoption 

notices, and other official 

communications. The Bulletin has been 

available either electronically or via 

U.S. Mail. To offset the cost of postage 

and handling, the Exchange charges a 

$200 per year subscription fee to anyone 

electing to receive the Bulletin via 

regular mail. 

NYSE Arca Rule 2.25 requires that 

Each OTP Holder and OTP Firm must 

maintain with NYSE Arca an electronic 

mail account for communication with 

the NYSE Arca. Presently, all OTP 

Holders and OTP Firms receive the 

Bulletin via e-mail subscriptions. As a 

result, the Exchange will no longer offer 

the option of receiving the Bulletin via 

regular mail. Therefore, the Exchange 

proposes eliminating the Subscription 

Fee. 

Transaction Fees 

The Exchange proposes making minor 

changes to the Order Types included in 

the Transaction Fee section of the 

Schedule. 

Orders executed on behalf of 

registered Broker Dealers (‘‘BD’’), or 

Broker Dealer Firms, are presently 

assessed the ‘‘BD rate.’’ In order to avoid 

any misunderstanding and to clarify 

that the ‘‘BD rate’’ is applicable to the 

BD Firms as well as the BDs, the BD 

Electronic rate and BD Manual rate will 

now read ‘‘Broker Dealer & Firm 

Electronic’’ and ‘‘Broker Dealer & Firm 

Manual.’’

Presently, the ‘‘Firm rate’’ applies to 

any transaction involving a proprietary 

trading account of an OTP Firm that has 

a customer of that OTP Firm on the 

contra side of the transaction. This 

explanation presently appears on the 

Schedule as a footnote to the Firm fee. 

This practice is generally referred to as 

‘‘facilitating’’ an order. In order to better 

explain that the ‘‘Firm rate’’ is only 

applicable when a firm facilitates their 

customer’s order, the Schedule will now 

read ‘‘Firm Facilitation.’’

Marketing Charge—QQQQ 

The Exchange assesses Market Makers 

a Marketing Charge on certain 

transactions. The Standard and Poor’s 

Depository Receipts (QQQQ) carry a 

$1.00 per contract charge. Marketing 

Charges are not assessed on issues that 


cprice-sewell on PROD1PC66 with NOTICES
Federal Register / Vol. 72, No. 88 / Tuesday, May 8, 2007 / Notices 26191 

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

7 15 U.S.C. 78f(b)(4). 

8 15 U.S.C. 78s(b)(3)(A)(ii). 

9 17 CFR 240.19b–4(f)(2). 

10 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3Securities Exchange Act Release No. 55047 (Jan. 

5, 2007), 72 FR 1571. 

trade as part of the Penny Pilot. QQQQ 

has now been included in the Penny 

Pilot and therefore the Exchange will no 

longer assess a Marketing Charge on any 

trades in this issue. The Exchange also 

proposes making minor technical 

changes to this section of the Schedule 

with this filing. 

Royalty Fees 

In an effort to reduce costs associated 

with trading on NYSE Arca, the 

Exchange proposes to eliminate certain 

Royalty Fees. The Exchange proposes to 

eliminate the $0.10 per contract Royalty 

Fee for options traded on the following 

ETFs; the Financial Select Sector SPDR 

(XLF), the Technology Select Sector 

SPDR (XLK), and the Healthcare Select 

Sector SPRD (XLV). By eliminating 

these fees, the Exchange hopes to attract 

additional order flow and encourage 

more trading by market participants. 

Vendor Equipment Room Usage Fee 

This fee covers the use of server 

cabinets in the vendor equipment room 

located adjacent to the trading floor. 

This fee will now be called the Vendor 

Equipment Room Cabinet Fee, and the 

footnote associate with the fee will now 

be moved into the body of the Schedule. 

These minor changes simply serve to 

offer clarity as to how this fee is 

assessed, and makes no change to the 

fee itself. 

Technical and Formatting Changes 

The Exchange proposes making minor 

changes to the schedule in order correct 

certain typographical and grammatical 

errors and to make certain formatting 

changes. These changes will have no 

effect on existing fees or the application 

of the existing fees. 

2. Statutory Basis 

The Exchange believes that the 

proposal is consistent with Section 

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

6(b)(4),7 in particular, in that it provides 

for the equitable allocation of dues, fees 

and other charges among its members. 

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 purpose 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 rule change is subject to 

Section 19(b)(3)(A)(ii) of the Act 8 and 

Rule 19b–4(f)(2) thereunder 9 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 e-mail to rulecomments@sec.gov. Please include File 

Number SR–NYSEArca–2007–35 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–2007–35. 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 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–NYSEArca–2007–35 and should be 

submitted by May 29, 2007. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.10

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–8732 Filed 5–7–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55686; File No. SR–OCC–

2006–21] 

Self-Regulatory Organizations; The 

Options Clearing Corporation; Order 

Granting Approval of a Proposed Rule 

Change Relating to Membership 

Requirements 

May 1, 2007. 

I. Introduction 

On November 15, 2006, The Options 

Clearing Corporation (‘‘OCC’’) filed with 

the Securities and Exchange 

Commission pursuant to Section 

19(b)(1) of the Securities Exchange Act 

of 1934 1 and Rule 19b–4 thereunder 2 a 

proposed rule change to modify certain 

OCC By-Laws and Rules relating to 

membership requirements. The 

proposed rule change was published for 

comment in the Federal Register on 

January 12, 2007.3 No comment letters 

were received. This order approves the 

proposal. 


cprice-sewell on PROD1PC66 with NOTICES