Federal Register / Vol. 73, No. 155 / Monday, August 11, 2008 / Notices 46679 

15 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. 

4See Securities Exchange Act Release No. 54549 

(September 29, 2006), 71 FR 59179 (October 6, 

2006) (SR–NYSEArca–2006–59). 

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

Number SR–NYSE–2008–70 on the 

subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Secretary, Securities and Exchange 

Commission, 100 F Street, NE., 

Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–NYSE–2008–70. 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–

2008–70 and should be submitted on or 

before September 2, 2008. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.15

Florence E. Harmon, 

Acting Secretary. 

[FR Doc. E8–18374 Filed 8–8–08; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 58266; File No. SR–NYSEArca–

2008–80] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Eliminating Certain 

Obsolete Rules 

July 30, 2008. 

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 July 24, 

2008, NYSE Arca, Inc. (‘‘NYSE Arca’’ or 

the ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(the ‘‘Commission’’) the proposed rule 

change as described in Items I, II, and 

III below, which Items have been 

prepared by the self-regulatory 

organization. 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 the Substance 

of the Proposed Rule Change 

The Exchange proposes to amend its 

rules in order to remove obsolete and 

unnecessary rule text related to 

information that is now obsolete. These 

changes are being made for 

administrative purposes only. By 

abolishing these out-dated references, 

the Exchange is not changing or altering 

any obligations, rights, policies or 

practices enumerated within its rules. 

The text of the proposed rule change is 

available at the Exchange, and the 

Commission’s Public Reference Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, 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 those 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 parts 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 by NYSE 

Arca is to remove obsolete and 

unnecessary rule text in several of its 

rules. By abolishing these out-dated 

references, the Exchange is not changing 

or altering any obligations, rights, 

policies or practices enumerated within 

its rules. 

In September 2006, the Exchange 

revised its rules to conform to 

Regulation NMS.4 At that time, there 

was a transitional period where the preNMS version of certain rules were in 

effect until a specified date (February 5, 

2007), after which the new NMS version 

of the rule would take effect. As a result, 

there are several Exchange rules that 

contain both pre-NMS provisions as 

well as current applicable provisions. In 

fact, many of the Exchange’s rules are 

identified either as operative through 

February 5, 2007 or operative after 

February 5, 2007. Retaining these 

outdated pre-NMS provisions fosters 

unnecessary confusion. The Exchange 

proposes to amend its rules to remove 

this text that is both unnecessary and, 

by its very terms, obsolete. 

The specific proposed changes are 

discussed in further detail below. 

• Rule 1.1: This rule sets forth certain 

definitions and references that are in 

effect at NYSE Arca. By this proposal, 

the Exchange is eliminating obsolete 

terms that were identified as being in 

effect until February 5, 2007 while 

maintaining (without revision) the 

currently operative terms that were 

identified as having taken effect as of 

February 5, 2007, as shown below. 

› Rule 1.1(aa): The Exchange is 

deleting the out-dated definition of the 

term ‘‘Nasdaq Security’’ while retaining 

the currently operative definition of the 

same term. 

› Rule 1.1(dd): The Exchange is 

deleting the out-dated definition of the 

term ‘‘NBBO’’ while retaining the 

currently operative definition of the 

same term. 

› Rule 1.1(rr): The Exchange is 

deleting the out-dated definition of the 

term ‘‘Security’’ while retaining the 

currently operative definition of the 

same term. 

› Rule 1.1(ddd): The Exchange is 

deleting the unnecessary reference to 

the operative date of the definition of 

the term ‘‘NMS Stock’’ while retaining 


rmajette on PRODPC74 with NOTICES
46680 Federal Register / Vol. 73, No. 155 / Monday, August 11, 2008 / Notices 

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

6 15 U.S.C. 78s(b)(3)(A)(iii). 

7 17 CFR 240.19b–4(f)(6). 

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

9 17 CFR 240.19b–4(f)(6)(iii). 

the currently operative definition of the 

same term. 

› Rule 1.1(eee): The Exchange is 

deleting the unnecessary reference to 

the operative date of the term ‘‘Protected 

Bid, Protected Offer, Protected 

Quotation’’ while retaining the currently 

operative definition of the same term. 

› Rule 1.1(fff): The Exchange is 

deleting the unnecessary reference to 

the operative date of the term ‘‘TradeThrough’’ while retaining the currently 

operative definition of the same term. 

› Rule 1.1(ggg): The Exchange is 

deleting the unnecessary reference to 

the operative date of the term ‘‘Trading 

Center’’ while retaining the currently 

operative definition of the same term. 

› Rule 1.1(hhh): The Exchange is 

deleting the unnecessary reference to 

the operative date of the term ‘‘Effective 

National Market System Plan, Regular 

Trading Hours’’ while retaining the 

currently operative definition of the 

same term. 

• Rule 7.1, Hours of Business: The 

Exchange is hereby eliminating the 

obsolete rule text that was identified as 

being in effect until February 5, 2007 

while maintaining (without revision) 

the currently operative rule text that 

was identified as having taken effect as 

of February 5, 2007. 

• Rule 7.18, Trading in Nasdaq 

Securities: The Exchange is hereby 

eliminating the obsolete rule text that 

was identified as being in effect until 

February 5, 2007 while maintaining the 

currently operative rule text that was 

identified as having taken effect as of 

February 5, 2007. 

› Rule 7.18(c), Applicability. 

According to this sub-section, ‘‘the 

following Rules of the Corporation will 

not be applicable to transactions on the 

Corporation in Nasdaq Securities: Rules 

7.55–7.57.’’ This section is obsolete and 

unnecessary. Rule 7.55 concerns the 

retired Intermarket Trading System Plan 

(‘‘ITS Plan’’) and Rules 7.56–7.57 are 

marked as inoperative as of February 5, 

2007. Accordingly, the Exchange is 

deleting this rule text as obsolete. As 

outlined below, the Exchange is also 

proposing to delete all references to the 

retired ITS Plan. 

• Rule 7.28, NMS Market Access: The 

Exchange is deleting the unnecessary 

reference to the operative date of the 

rule (February 5, 2007) while retaining 

the currently operative rule text. 

• Rule 7.31, Orders and Modifiers: 

This Rule defines certain orders 

available on the Exchange and explains 

their operability. By this proposal, the 

Exchange is eliminating the obsolete 

rule text that was identified as being in 

effect until February 5, 2007, while 

maintaining (without revision) the 

currently operative rule text that was 

identified as having taken effect as of 

February 5, 2007. 

• Rule 7.35, Auctions: This Rule 

defines certain available auctions on the 

Exchange and their operability. The 

Exchange is hereby deleting Rule 

7.35(f)(3)(D), pertaining to ITS, which 

had been marked as inoperative after 

February 5, 2007. 

• Rule 7.37, Order Execution: This 

Rule sets forth the priority of execution 

of the Exchange’s available order types. 

The Exchange is eliminating the 

obsolete rule text that was identified as 

being in effect until February 5, 2007, 

while maintaining the currently 

operative rule text that was identified as 

having taken effect as of February 5, 

2007. With one exception, the Exchange 

is not altering or revising the currently 

operative text of Rule 7.37. Specifically, 

with respect to the introductory 

paragraph to Rule 7.37, the Exchange is 

proposing to delete the references to the 

ITS Plan and certain order interaction 

therewith. 

• Rule 7.40, Trade Execution and 

Reporting: By this proposal, the 

Exchange is eliminating the obsolete 

rule text that was identified as being in 

effect until February 5, 2007, while 

maintaining (without revision) the 

currently operative rule text that was 

identified as having taken effect as of 

February 5, 2007. 

• Rule 7.55, Definitions: This Rule 

concerns the ITS Plan and was marked 

as operative through February 5, 2007. 

The ITS Plan has been retired and the 

Rule is not operative by its very terms. 

The Exchange is hereby deleting this 

Rule in its entirety. 

• Rule 7.56, ITS ‘‘Trade-Throughs’’

and ‘‘Locked Markets’’: This Rule 

concerns the ITS Plan and was marked 

as operative through February 5, 2007. 

The ITS Plan has been retired and the 

Rule is not operative by its very terms. 

The Exchange is hereby deleting this 

Rule in its entirety. 

• Rule 7.57, Block Trade Policy: By 

this proposal, the Exchange is 

eliminating this obsolete Rule that was 

identified as being in effect until 

February 5, 2007. 

• Rule 7.58, Compliance with TwoSided Quote Requirement in ITS Plan: 

This Rule concerns the ITS Plan and 

was marked as operative through 

February 5, 2007. The ITS Plan has been 

retired and the Rule is not operative by 

its very terms. The Exchange is hereby 

deleting this Rule in its entirety. 

• Rule 7.65(J). The Exchange is 

hereby eliminating the out-dated and 

unnecessary reference to the ITS Plan. 

The Exchange is not making any other 

changes to Rule 7.65, Portfolio Crossing 

Service. 

2. Statutory Basis 

The Exchange believes the proposed 

rule change is consistent with and 

furthers the objectives of Section 6(b)(5) 

of the Act,5 in that it is designed to 

prevent fraudulent and manipulative 

practices, to promote just and equitable 

principles of trade, to remove 

impediments to, and perfect the 

mechanisms of, a free and open market 

and a national market system, and, in 

general, to protect investors and the 

public interest. The Exchange believes 

that the proposed rule change will 

eliminate unnecessary confusion in its 

rule structure by removing outdated and 

obsolete rule references. 

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 

No written comments were solicited 

or received with respect to the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The Exchange has filed the proposed 

rule change pursuant to Section 

19(b)(3)(A)(iii) of the Act 6 and Rule 

19b–4(f)(6) thereunder.7 Because the 

proposed rule change does not: (i) 

Significantly affect the protection of 

investors or the public interest; (ii) 

impose any significant burden on 

competition; and (iii) become operative 

prior to 30 days from the date on which 

it was filed, or such shorter time as the 

Commission may designate, if 

consistent with the protection of 

investors and the public interest, the 

proposed rule change has become 

effective pursuant to Section 19(b)(3)(A) 

of the Act 8 and Rule 19b–4(f)(6)(iii) 

thereunder.9

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 


rmajette on PRODPC74 with NOTICES
Federal Register / Vol. 73, No. 155 / Monday, August 11, 2008 / Notices 46681 

10 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). 

5The Exchange may trade option contracts in one 

cent increments in certain approved issues as part 

of the Penny Pilot, through March 27, 2009. See 

Securities Exchange Act Release No. 56568 

(September 27, 2007), 72 FR 56422 (October 3, 

2007) (Order approving SR–NYSEArca–2007–88). 

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–2008–80 on the 

subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Secretary, Securities and Exchange 

Commission, 100 F Street, NE., 

Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–NYSEArca–2008–80. 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 100 F Street, NE., Washington, DC 

20549 on official business days between 

the hours of 10 a.m. and 3 p.m. Copies 

of such filing also will be available for 

inspection and copying at NYSE Arca’s 

principal office and on its Internet Web 

site at http://www.nyse.com. 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–2008–80, and 

should be submitted on or before 

September 2, 2008. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Florence E. Harmon, 

Acting Secretary. 

[FR Doc. E8–18382 Filed 8–8–08; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–58295; File No. SR–

NYSEArca–2008–75] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Amending Its Schedule of 

Fees and Charges for Exchange 

Services In Order To Revise Certain 

Transaction Fees 

August 4, 2008. 

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 July 14, 

2008, 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 

prepared by the Exchange. The 

Exchange filed the proposed rule change 

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

Act 3 and Rule 19b–4(f)(2) thereunder,4

which renders the proposal effective 

upon filing with the Commission. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

NYSE Arca proposes to amend its 

Schedule of Fees and Charges for 

Exchange Services (‘‘Schedule’’) in 

order to revise certain Transaction Fees. 

The text of the proposed rule change is 

available at NYSE Arca, 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 

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 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 Schedule in order to (i) 

make changes to Transaction Fees 

assessed on certain executions in issues 

that trade as part of the Penny Pilot,5

and (ii) eliminate the Market Maker Post 

Liquidity Incentive Credit. A 

description of the proposed change 

follows. 

Post/Take Pricing 

NYSE Arca offers market participants 

a Post/Take pricing model for 

electronically executed transactions in 

issues that are included in the Penny 

Pilot. Under the present rate schedule, 

all electronic orders that ‘‘take’’

liquidity from the Consolidated Book 

(incoming electronic quotes and orders 

that are executed upon receipt) are 

charged a fee of $0.45 per contract. 

NYSE Arca now proposes to revise the 

Post/Take pricing it applies to 

transactions in selected Penny Pilot 

issues that the Exchange has designated 

as ‘‘Tier 1’’ issues. Specifically the 

Exchange will: (a) Raise the Take 

Liquidity fee, in certain highly active 

issues, from $0.45 to $0.55 per contract 

for all market participants; (b) raise the 

Post Liquidity credit, in certain highly 

active issues, from $0.30 to $.40 for 

Lead Market Makers and NYSE Arca 

Market Makers; and (c) raise the Post 

Liquidity credit, in certain highly active 

issues, from $0.25 to $0.35 for both 

electronic broker-dealer and electronic 

customer transactions. 

The new fee will initially apply to 

transactions in the following ten (10) 

option issues that the Exchange has 

designated as Tier 1 Penny Pilot issues. 

AAPL Apple Inc 

CSCO Cisco Systems, Inc. 

DIA Diamonds Trust 

MSFT Microsoft Corporation 

IWM iShares Russell 2000 Index 

QQQQ PowerShares QQQ Trust 

RIMM Research in Motion 


rmajette on PRODPC74 with NOTICES