Federal Register / Vol. 74, No. 78 / Friday, April 24, 2009 / Notices 18755 

12Nothing in this notice is inconsistent with the 

Board’s willingness to place reliance on a non-U.S. 

inspection consistent with Rules 4011 and 4012, or 

suggests any position on the nature of the 

inspection process in circumstances in which the 

Board relies on a non-U.S. inspection to the 

maximum extent that would be consistent with the 

Board’s responsibilities under the Act. 

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

2 17 CFR 240.19b–4. 

postpone those inspections for up to one 

year is the appropriate course. For that 

reason, the Board is adopting a new 

paragraph (f) to Rule 4003, which 

extends for one year the deadline for the 

Board to conduct the first inspection of 

any non-U.S. firm that existing Rule 

4003 otherwise requires the Board to 

conduct by the end of 2008. The Board 

is adopting Rule 4003(f) to take effect 

upon Commission approval. 

In the Board’s view, this adjustment 

to the inspection frequency requirement 

is consistent with the purposes of the 

Act, the public interest, and the 

protection of investors. The Board 

believes that its approach to 

implementing Rules 4011 and 4012, 

developing cooperative arrangements, 

and conducting joint inspections with 

foreign regulators is enhancing the 

Board’s efforts to carry out its inspection 

responsibilities. There is long-term 

value in accepting a limited delay in 

inspections to continue working toward 

cooperative arrangements where it 

appears reasonably possible to reach 

them. The Board recognizes that some 

non-U.S. firms may be reluctant to 

comply with PCAOB inspection 

demands because of a concern that 

doing so might violate local law. Up to 

a point, the purposes of the Act, the 

public interest, and the protection of 

investors are better served by delaying 

a first inspection to work toward a 

cooperative resolution than by 

precipitating legal disputes involving 

conflicts between U.S. and non-U.S. law 

that could arise if the Board sought to 

enforce compliance with its preferred 

schedule without regard for the 

concerns of non-U.S. authorities. 

The Board will continue to work 

toward cooperation and coordination 

with authorities in all relevant 

jurisdictions. The Board does not 

intend, however, to make any further 

adjustments to the inspection frequency 

requirements applicable to firms whose 

first inspection was due no later than 

2008.12

(b) Statutory Basis 

The statutory basis for the proposed 

rule is Title I of the Act. 

B. Board’s Statement on Burden on 

Competition 

The Board does not believe that the 

proposed rule will result in any burden 

on competition that is not necessary or 

appropriate in furtherance of the 

purposes of the Act. The proposed rule 

imposes no burden beyond the burdens 

clearly imposed and contemplated by 

the Act. 

C. Board’s Statement on Comments on 

the Proposed Rule Received From 

Members, Participants or Others 

The Board did not solicit or receive 

comments before adopting the proposed 

rule. 

III. Date of Effectiveness of the 

Proposed Rule 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 as 

(i) 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 Board 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. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views and 

arguments concerning the foregoing, 

including whether the proposed rule 

changes are consistent with the 

requirements of Title I of 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/pcaob.shtml); or 

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

Number PCAOB–2008–06 on the subject 

line. 

Paper Comments 

• Send paper comments in triplicate 

to Elizabeth M. Murphy, Secretary, 

Securities and Exchange Commission, 

100 F Street, NE., Washington, DC 

20549–1090. 

All submissions should refer to File 

Number PCAOB–2008–06. 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/pcaob/shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

changes that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule changes 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 

Section, 100 F Street, NE., Washington, 

DC 20549. Copies of such filing also will 

be available for inspection and copying 

at the principal office of the PCAOB. 

All comments received will be posted 

without change; we do 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 PCAOB– 

2008–06 and should be submitted on or 

before May 15, 2009. 

By the Commission. 

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. E9–9367 Filed 4–23–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–59791; File No. SR–NYSE– 

2009–42] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Notice of 

Filing of Proposed Rule Change 

Implementing NYSE Realtime 

Reference Price Service on a 

Permanent Basis 

April 20, 2009. 

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 April 16, 

2009, the New York Stock Exchange 

LLC (‘‘NYSE’’ or the ‘‘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 prepared by the Exchange. 

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 establish 

the NYSE Realtime Reference Prices 

mstockstill on PROD1PC66 with NOTICES

18756 Federal Register / Vol. 74, No. 78 / Friday, April 24, 2009 / Notices 

3See Release No. 34–57966 (June 16, 2008), 73 FR 

35182 (June 20, 2008) (File No. SR–NYSE–2007–04) 

and Release No. 34–58443 (August 29, 2008), 73 FR 

52436 (September 9, 2008) (File No. SR–NYSE– 

2008–79; the ‘‘Fee-Reduction Filing’’). 

4The Exchange initially proposed to end the pilot 

program on November 1, 2008. The Exchange has 

submitted three extensions of the end date for the 

pilot program on Forms 19b–4. (See Securities 

Exchange Act Release No. 34–58893 (October 31, 

2008), 73 FR 66093 (November 6, 2008) (File No. 

SR–NYSE–2008–113), Securities Exchange (sic) 

Release No. 34–59185 (December 30, 2008), 74 FR 

749 (January 7, 2009) (File No. SR–NYSE–2008– 

141) and Securities Exchange Act Release No. 34– 

59653 (March 30, 2009), 74 FR 15536 (April 6, 

2009) (File No. SR–NYSE–2009–34)). The pilot 

program is currently scheduled to end on June 30, 

2009. 

5The Exchange notes that it will make the NYSE 

Realtime Reference Prices available to vendors no 

earlier than it makes those prices available to the 

processor under the CTA Plan. 

6See Release No. 34–59039 (December 2, 2008), 

73 FR 74770 (December 9, 2008) (SR–NYSEArca– 

2006–21) (the ‘‘ArcaBook Approval Order’’). 

service and to establish a flat monthly 

fee for that service. The Exchange 

currently provides this service pursuant 

to a pilot program 3 and now proposes 

to make the service permanent. The 

service allows a vendor to redistribute 

on a real-time basis last sale prices of 

transactions that take place on the 

Exchange (‘‘NYSE Realtime Reference 

Prices’’). The text of the proposed rule 

change is available at the Exchange, the 

Commission’s Public Reference Room, 

and http://www.nyse.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, the 

self-regulatory organization 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. 

The self-regulatory organization 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 

a. The Service 

The Exchange currently conducts a 

pilot program that has tested the 

viability of NYSE Realtime Reference 

Prices. In its filing, the Exchange stated 

that prior to the end of the pilot period, 

the Exchange would assess its 

experience with the service and either 

submit a proposed rule change that 

seeks to modify or eliminate the pilot 

program or to make it permanent.4

The Exchange has found that the pilot 

program provides a low-cost service that 

makes real-time prices widely available 

to casual investors, provides vendors 

with a useful real-time substitute for 

delayed prices; and relieves vendors of 

administrative burdens. The product 

responds to the requirements for 

distribution of real-time last sale prices 

over the internet for reference purposes, 

rather than as a basis for making trading 

decisions. For those reasons, the 

Exchange is now proposing to make it 

a permanent part of the Exchange’s 

market data offerings. 

The NYSE Realtime Reference Prices 

service allows internet service 

providers, traditional market data 

vendors, and others (‘‘NYSE-Only 

Vendors’’) to make available NYSE 

Realtime Reference Prices on a real-time 

basis.5 The NYSE Realtime Reference 

Price information includes last sale 

prices for all securities that trade on the 

Exchange. The product includes only 

prices; it does not include the size of 

each trade or bid/asked quotations. 

Under the pilot program, the 

Exchange does not permit NYSE-Only 

Vendors to provide NYSE Realtime 

Reference Prices in a context in which 

a trading or order-routing decision can 

be implemented unless the NYSE-Only 

Vendor also provides consolidated 

displays of Network A last sale prices 

available in an equivalent manner, as 

Rule 603(c)(1) of Regulation NMS 

requires. The Exchange proposes to 

keep this same prohibition in the 

permanent offering 

As with the pilot program, the 

permanent service would eliminate 

some of the administrative burdens 

associated with the distribution of realtime CTA prices. The permanent service 

would feature the same flat, fixed 

monthly vendor fee, no user-based fees, 

no vendor reporting requirements, and 

no professional or non-professional 

subscriber agreements. 

b. The Fee 

During the pilot program, the 

Exchange first established a $100,000 

monthly flat fee that entitles an NYSEOnly Vendor to receive access to the 

NYSE Realtime Reference Prices 

datafeed. In the Fee-Reduction Filing, it 

reduced that fee to $70,000. The 

Exchange proposes to retain the $70,000 

fee for the permanent service. For that 

fee, the NYSE-Only Vendor may provide 

unlimited NYSE Realtime Reference 

Prices to an unlimited number of the 

NYSE-Only Vendor’s subscribers and 

customers. The pilot program does not 

impose any device or end-user fee for 

the NYSE-Only Vendors’ distribution of 

NYSE Realtime Reference Prices and the 

Exchange is not proposing to add any 

new fees for the permanent service. 

As with the pilot program, the 

Exchange proposes to require the NYSEOnly Vendor to identify the NYSE trade 

price by placing the text ‘‘NYSE Data’’ 

in close proximity to the display of each 

NYSE Realtime Reference Price or series 

of NYSE Realtime Reference Prices, or 

by complying with such other 

identification requirement as to which 

NYSE may agree. 

The NYSE-Only Vendor may make 

NYSE Realtime Reference Prices 

available without having to differentiate 

between professional subscribers and 

nonprofessional subscribers, without 

having to account for the extent of 

access to the data, and without having 

to report the number of users. 

The flat fee enables internet service 

providers and traditional vendors that 

have large numbers of casual investors 

as subscribers and customers to 

contribute to the Exchange’s operating 

costs in a manner that is appropriate for 

their means of distribution. 

In setting the level of the NYSE 

Realtime Reference Prices fee, the 

Exchange took into consideration 

several factors, including: 

(1) The fees that Nasdaq and NYSE 

Arca are charging for similar services 

(sic) 

(2) Consultation with some of the 

entities that the Exchange anticipates 

will be the most likely to take advantage 

of the proposed service; 

(3) The contribution of market data 

revenues that the Exchange believes is 

appropriate for entities that provide 

market data to large numbers of 

investors, which are the entities most 

likely to take advantage of the proposed 

service; 

(4) The contribution that revenues 

accruing from the proposed fee will 

make to meet the overall costs of the 

Exchange’s operations; 

(5) The savings in administrative and 

reporting costs that the NYSE Realtime 

Reference Prices service will provide to 

NYSE-Only Vendors; and 

(6) The fact that the proposed fee 

provides an alternative to existing fees 

under the CTA Plan, an alternative that 

vendors will purchase only if they 

determine that the perceived benefits 

outweigh the cost. 

The Exchange believes that the level 

of the fee is consistent with the 

approach set forth in the order by which 

the Commission approved ArcaBook 

fees.6 In the ArcaBook Approval Order, 

the Commission stated that ‘‘when 

mstockstill on PROD1PC66 with NOTICES

Federal Register / Vol. 74, No. 78 / Friday, April 24, 2009 / Notices 18757 

7 Id. at 74771. 

8See Securities Exchange Act Release Nos. 28407 

(September 6, 1990), 55 FR 37276 (September 10, 

1990) (File No. 4–281); 49185 (February 4, 2004), 

69 FR 6704 (February 11, 2004) (SR–CTA/CQ– 

2003–01). 

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

10 15 U.S.C. 78f(b)(5). 

possible, reliance on competitive forces 

is the most appropriate and effective 

means to assess whether the terms for 

the distribution of non-core data are 

equitable, fair and reasonable, and not 

unreasonably discriminatory.’’ 7 It noted 

that if significant competitive forces 

apply to a proposal, the Commission 

will approve it unless a substantial 

countervailing basis exists. 

NYSE Realtime Reference Prices 

constitute ‘‘non-core data.’’ The 

Exchange does not require a central 

processor to consolidate and distribute 

the product to the public pursuant to 

joint-SRO plans. Rather, the Exchange 

distributes the product voluntarily. 

In the case of NYSE Realtime 

Reference Prices, both of the two types 

of competitive forces that the 

Commission described in the ArcaBook 

Approval Order are present: The 

Exchange has a compelling need to 

attract order flow and the product 

competes with a number of alternative 

products. 

The Exchange must compete 

vigorously for order flow to maintain its 

share of trading volume. This requires 

the Exchange to act reasonably in setting 

market data fees for non-core products 

such as NYSE Realtime Reference 

Prices. The Exchange hopes that NYSE 

Realtime Reference Prices will enable 

vendors to distribute NYSE last sale 

price data widely among investors, and 

thereby provide a means for promoting 

the Exchange’s visibility in the 

marketplace. 

In addition to the need to attract order 

flow, the availability of alternatives to 

NYSE Realtime Reference Prices 

significantly constrains the prices at 

which the Exchange can market NYSE 

Realtime Reference Prices. All national 

securities exchanges, the several Trade 

Reporting Facilities of FINRA, and ECNs 

that produce proprietary data, as well as 

the core data feed, are all sources of 

competition for NYSE Realtime 

Reference Prices. Currently, NYSE Arca 

and Nasdaq offer similar services. (The 

Exchange anticipates that NYSE Arca 

will soon file for permanent approval of 

the fee for its counterpart product.) 

The information available in NYSE 

Realtime Reference is included in the 

CTA core data feed, which also includes 

the size of trades, as well as last sale 

information from other markets. Even 

though NYSE Realtime Reference Prices 

omits size and provides prices that are 

not consolidated with those of other 

markets, investors may select it as a less 

expensive alternative to the CTA Plan’s 

consolidated last sale price services for 

certain purposes. (Rule 603(c) of 

Regulation NMS requires vendors to 

make the core data feeds available to 

customers when trading and orderrouting decisions can be implemented.) 

c. Contracts 

As with the pilot program, NYSE 

proposes to allow NYSE-Only Vendors 

to provide NYSE Realtime Reference 

Prices without requiring the end-users 

to enter into contracts for the benefit of 

the Exchange. 

Instead, the Exchange proposes to 

require NYSE-Only Vendors to provide 

a readily visible hyperlink that will 

send the end-user to a warning notice 

about the end-user’s receipt and use of 

market data. The notice would be 

similar to the notice that vendors 

provide today when providing CTA 

delayed data services. 

The Exchange will require NYSEOnly Vendors to enter into the form of 

‘‘vendor’’ agreement into which the 

CTA and CQ Plans require recipients of 

the Network A datafeeds to enter (the 

‘‘Network A Vendor Form’’). The 

Network A Vendor Form will authorize 

the NYSE-Only Vendor to provide the 

NYSE Realtime Reference Prices service 

to its subscribers and customers. 

The Network A Participants drafted 

the Network A Vendor Form as a onesize-fits-all form to capture most 

categories of market data dissemination. 

It is sufficiently generic to accommodate 

NYSE Realtime Reference Prices. The 

Commission has approved the Network 

A Vendor Form.8

The Exchange will supplement the 

Network A Vendor Form with an 

Exhibit C that will provide abovedescribed terms and conditions that are 

unique to the NYSE Realtime Reference 

Prices service. The proposed Exhibit C 

is substantially similar to the Exhibit C 

that NYSE uses for the pilot program 

(except for provisions related to the 

conduct of the pilot program) and is 

attached to this proposed rule change as 

Exhibit 5, marked to show changes from 

the version used for the pilot program. 

The supplemental Exhibit C terms and 

conditions would govern: 

• The restriction against providing 

the service in the context of a trading or 

order-routing service; 

• The replacement of end-user 

agreements with a hyperlink to a notice; 

• The substance of the notice; and 

• The ‘‘NYSE Data’’ labeling 

requirement. 

2. Statutory Basis 

The basis under the Act for this 

proposed rule change is the requirement 

under Section 6(b)(4) 9 that an exchange 

have rules that provide for the equitable 

allocation of reasonable dues, fees and 

other charges among its members and 

other persons using its facilities and the 

requirements under Section 6(b)(5) 10

that the rules of an exchange be 

designed to promote just and equitable 

principles of trade and not to permit 

unfair discrimination between 

customers, issuers, brokers or dealers. 

The proposed rule change would 

benefit investors by facilitating their 

prompt access to widespread, free, realtime pricing information contained in 

the NYSE Realtime Reference Prices 

service. In addition, the Exchange 

believes that the proposed fee would 

allow entities that provide market data 

to large numbers of investors, which are 

the entities most likely to take 

advantage of the proposed service, to 

make an appropriate contribution 

towards meeting the overall costs of the 

Exchange’s operations. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

NYSE Realtime Reference Prices 

proposes to provide an alternative to 

existing fees and does not alter or 

rescind any existing fees. In addition, it 

amounts to a competitive response to 

the products that Nasdaq and NYSE 

Arca have commenced to make 

available. For those reasons, the 

Exchange does not believe that this 

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 

The Exchange has discussed the 

proposed rules change with those 

entities that the Exchange believes 

would be the most likely to take 

advantage of the proposed NYSE 

Realtime Reference Prices service by 

becoming NYSE-Only Vendors. While 

those entities have not submitted 

formal, written comments on the 

proposal, the Exchange has incorporated 

some of their ideas into the proposal 

and this proposed rule change reflects 

their input. The Exchange has not 

received any unsolicited written 

comments from members or other 

interested parties. 

mstockstill on PROD1PC66 with NOTICES

18758 Federal Register / Vol. 74, No. 78 / Friday, April 24, 2009 / Notices 

11 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. 34– 

58444 (August 29, 2008), 73 FR 51872 (September 

5, 2008) (SR–NYSEArca–2008–96). 

4The Exchange initially proposed to end the pilot 

program on November 1, 2008. The Exchange has 

submitted three extensions of the end date for the 

pilot program on Forms 19b–4. (See Securities 

Exchange Act Release No. 34–58895 (October 31, 

2008), 73 FR 66956 (November 12, 2008) (File No. 

SR–NYSEArca–2008–122), Securities Exchange 

(sic) Release No. 34–59184 (December 30, 2008), 74 

FR 755 (January 7, 2009) (File No. SR–NYSEArca– 

2008–143) and Securities Exchange Act Release No. 

34–59662 (March 31, 2009), 74 FR 15571 (April 6, 

2009) (File No. SR–NYSEArca–2009–25)). The pilot 

program is currently scheduled to end on June 30, 

2009. 

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 self-regulatory 

organization 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. 

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–2009–42 on the 

subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Elizabeth M. Murphy, Secretary, 

Securities and Exchange Commission, 

100 F Street, NE., Washington, DC 

20549–1090. 

All submissions should refer to File 

Number SR–NYSE–2009–42. 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, on official business days between 

the hours of 10 a.m. and 3 p.m. 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– 

2009–42 and should be submitted on or 

before May 15, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–9387 Filed 4–23–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–59790; File No. SR– 

NYSEArca–2009–32] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing of Proposed 

Rule Change Implementing the NYSE 

Arca Realtime Reference Prices 

Service on a Permanent Basis 

April 20, 2009. 

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 April 15, 

2009, NYSE Arca, Inc. (‘‘NYSE Arca’’ or 

the ‘‘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 

prepared by the Exchange. 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 establish 

the NYSE Arca Realtime Reference 

Prices service and to establish a flat 

monthly fee for that service. The 

Exchange currently provides this service 

pursuant to a pilot program 3 and now 

proposes to make the service 

permanent. The service allows a vendor 

to redistribute on a real-time basis last 

sale prices of transactions that take 

place on the Exchange (‘‘NYSE Arca 

Realtime Reference Prices’’). The text of 

the proposed rule change is available at 

the Exchange, the Commission’s Public 

Reference Room, and http:// 

www.nyse.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, the 

self-regulatory organization 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. 

The self-regulatory organization 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 

a. The Service 

The Exchange currently conducts a 

pilot program that has tested the 

viability of NYSE Arca Realtime 

Reference Prices. In its filing, the 

Exchange stated that prior to the end of 

the pilot period, the Exchange would 

assess its experience with the service 

and either submit a proposed rule 

change that seeks to modify or eliminate 

the pilot program or to make it 

permanent.4

The Exchange has found that the pilot 

program provides a low-cost service that 

makes real-time prices widely available 

to casual investors, provides vendors 

with a useful real-time substitute for 

delayed prices; and relieves vendors of 

administrative burdens. The product 

responds to the requirements for 

distribution of real-time last sale prices 

over the internet for reference purposes, 

rather than as a basis for making trading 

decisions. For those reasons, the 

Exchange is now proposing to make it 

a permanent part of the Exchange’s 

market data offerings. 

mstockstill on PROD1PC66 with NOTICES