Federal Register / Vol. 73, No. 23 / Monday, February 4, 2008 / Notices 6539 

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)(ii). 

4 17 CFR 240.19b–4(f)(2). 

5See Securities Exchange Act Release No. 57058 

(December 28, 2007), 73 FR 903 (January 4, 2008) 

(SR–NYSE–2007–102). 

6See NYSE Rule 1500 (NYSE MatchPointSM), 

subparagraph (b)(2)(D): ‘‘’NYSE MatchPoint Internal 

Match Constraint’ or ’internal match constraint’

shall mean an optional order constraint that limits 

the execution of portfolios and single orders by 

directing the portfolio and single orders to first 

trade with other portfolios or single orders of the 

same User before trading with other orders in a 

particular matching session. If, after an internal 

match occurs and residual orders remain, the 

residual orders will be available to trade with all 

other orders. These constraints are only active for 

a single matching session.’’

7Because orders are entered by a ‘‘mnemonic’’

(i.e., member identifier and/or account identifier) 

and because mnemonics are categorized as either 

‘‘agency’’ or ‘‘proprietary,’’ agency and proprietary 

orders cannot be entered under the same 

mnemonic. Thus, agency and proprietary orders 

cannot match and execute against each other in an 

internal match. 

8 15 U.S.C. 78f. 

9 15 U.S.C. 78a. 

10 15 U.S.C. 78f(b)(4). 

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 

the principal office of FINRA. 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–FINRA–2007–042 and 

should be submitted on or before 

February 25, 2008. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E8–1960 Filed 2–1–08; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–57216; File No. SR–NYSE–

2008–06] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Implement 

Transaction Fees for NYSE MatchPoint 

January 28, 2008. 

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

Securities Exchange Act of 1934 (the 

‘‘Act’’),1 and Rule 19b–4 thereunder,2

notice is hereby given that on January 

22, 2008, 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 prepared by the NYSE. The 

NYSE has designated this proposal as 

one establishing or changing a due, fee, 

or other charge imposed by the NYSE 

under 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 

NYSE proposes to implement an 

equity transaction fee effective January 

22, 2008, for shares executed on the new 

NYSE MatchPointSM (‘‘NYSE 

MatchPoint’’ or ‘‘MatchPoint’’) 5 system. 

The Exchange will charge each Member 

Organization $.0015 per share executed 

on the MatchPoint system, with the 

exception of MatchPoint executions that 

are effectuated through an optional 

‘‘internal match’’ process. 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 

NYSE 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 NYSE 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 implement 

an equity transaction fee for executions 

on the NYSE MatchPoint system to take 

effect with the scheduled launch of 

MatchPoint on January 22, 2008. The 

MatchPoint system is an electronic 

facility of the Exchange that matches 

aggregated orders at predetermined, 

one-minute sessions throughout regular 

hours and after hours of the Exchange. 

The proposed transactional fee of $.0015 

per executed share, for single and 

portfolio orders, will be charged to both 

the buyer(s) and seller(s) of the executed 

shares, with the exception of 

MatchPoint executions that are 

effectuated through an optional 

‘‘internal match’’ process.6 More 

specifically, when the same user enters 

different orders into MatchPoint for 

internal matching purposes under the 

same mnemonic and for the same 

matching session, any resulting 

executions will not be subject to this 

transaction fee.7 Only NYSE members, 

member organizations and sponsoring 

member organizations will be charged 

this transaction fee. Transaction fees for 

executions of orders entered by 

sponsored participants (who are nonmembers) will be charged to the 

sponsoring member organization. 

The following examples will 

demonstrate how the proposed 

MatchPoint transactional fee will be 

charged: 

Example 1: User A enters a buy order into 

MatchPoint for 1,000 shares of XYZ security 

and designates the order for the 11 a.m. 

matching session. User B enters a sell order 

into MatchPoint for 1,000 shares of XYZ 

security and designates the order for the 11 

a.m. matching session. During the 11 a.m. 

matching session, User A’s buy order for 

1,000 shares of XYZ security and User B’s 

sell order for 1,000 shares of XYZ security 

match and execute. User A is charged $.0015 

per executed share (1,000 shares × $.0015 = 

$1.50). User B is also charged $.0015 per 

executed share (1,000 shares × $.0015 = 

$1.50). 

Example 2: User A enters a portfolio order 

into MatchPoint for a customer to buy 1,000 

shares of XYZ security with an internal 

match constraint under the mnemonic ‘‘Q’’

for the 2 p.m. matching session. User A then 

enters another portfolio order into 

MatchPoint for a second customer to sell 

1,000 shares of XYZ security with an internal 

match constraint under the same mnemonic 

(‘‘Q’’) for the 2 p.m. matching session. During 

the 2 p.m. matching session, the above 

described portfolio orders entered by User A 

internally match and execute. Thus, User A’s 

customers both receive executions of 1,000 

shares of XYZ security, but no transaction fee 

is charged to A for these internally matched 

executions. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the provisions of section 6 8 of the Act 9

in general, and section 6(b)(4) of the 

Act 10 in particular, in that it is designed 

to provide for the equitable allocation of 

reasonable dues, fees and other charges 

among its members and other persons 

using its facilities. Specifically, the 

proposed transaction fee is reasonable 


ebenthall on PRODPC61 with NOTICES
6540 Federal Register / Vol. 73, No. 23 / Monday, February 4, 2008 / Notices 

11 15 U.S.C. 78s(b)(3)(A). 12 17 CFR 240.19b–4(f)(2). 

13 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)(6). 

5See Securities Exchange Act Release No. 48857 

(December 1, 2003), 68 FR 68440 (December 8, 

2003) (SR–NYSE–2002–40). 

in light of the costs incurred by the 

Exchange for the operation of the 

MatchPoint system. Additionally, the 

transaction fee is equitable as the fee is 

applied to all users of the MatchPoint 

system equally. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

NYSE 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 were neither 

solicited nor 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) 

of the Act 11 and Rule 19b–4(f)(2) 12

thereunder because it establishes a due, 

fee, or other charge applicable to a 

member imposed by NYSE. At any time 

within 60 days of the filing of such 

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–NYSE–2008–06 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–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/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 

the principal office of the NYSE. 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–2008–06 and should 

be submitted on or before February 25, 

2008. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Nancy M. Morris, 

Secretary. 

[FR Doc. E8–1878 Filed 2–1–08; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–57213; File No. SR–

NYSE–2008–07] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change Relating to the 

Extension of Crossing Sessions III and 

IV Pilots 

January 28, 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 January 

22, 2008, 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 and II 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)(6) thereunder, 

which renders it effective upon filing 

with the Commission.4 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 NYSE proposes to extend until 

February 1, 2009 the following pilot 

programs: Crossing Session III, for the 

execution of guaranteed price coupled 

orders by member organizations to fill 

the balance of customer orders at a price 

that was guaranteed to a customer prior 

to the close of the Exchange’s 9:30 a.m. 

to 4 p.m. trading session; and Crossing 

Session IV, whereby an unfilled balance 

of an order may be filled at a price such 

that the entire order is filled at no worse 

price than the Volume Weighted 

Average Price (‘‘VWAP’’) for the subject 

security. 

The text of the proposed rule change 

is available on the NYSE’s Web site 

(http://www.nyse.com), at the NYSE’s 

Office of 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 

NYSE 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 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 

In SR–NYSE–2002–40,5 the 

Commission approved the 

establishment of two new crossing 

sessions (Crossing Sessions III and IV) 

in the Exchange’s Off-Hours Trading 


ebenthall on PRODPC61 with NOTICES