Federal Register / Vol. 73, No. 166 / Tuesday, August 26, 2008 / Notices 50389 

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 NYSE Arca Equities Rule 1.1(n). 

6See NYSE Arca Equities Rule 1.1(yy). 

7Trade activity on days when the market closes 

early does not count toward volume tiers. 

8Regarding IOIs, the Commission notes its 

previous statement that, ‘‘the term ‘order’ is defined 

as ‘any firm indication of a willingness to buy or 

sell a security.***’ Whether or not an indication 

of interest is ‘firm’ will depend on what actually 

takes place between the buyer and seller. The label 

put on an order—‘firm’ or ‘not firm’—is not 

dispositive. For example, a system claiming it 

displays only ‘indications of interest’ that are not 

orders, may be [displaying orders] if these 

indications are, in fact, firm in practice. Securities 

Exchange Act Release No. 40780 (December 8, 

1998), 63 FR 70844, 70850 (December 22, 1998) 

(quoting 17 CFR 240.3b–16(c)). 

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

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

11 15 U.S.C. 78s(b)(3)(A). 

12 17 CFR 19b–4(f)(2). 

SECURITIES AND EXCHANGE 

COMMISSION 

Release No. 34–58397; File No. SR–

NYSEArca–2008–83] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Amending the Schedule 

of Fees and Charges for Exchange 

Services To Add a Credit That Applies 

to Indications of Interest That Result in 

Routed and Executed Orders 

August 20, 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 August 

4, 2008, 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, II and III 

below, which Items have been prepared 

by the Exchange. The Exchange has 

designated this proposal as one 

establishing or changing a due, fee, 

credit, or other charge imposed by the 

Exchange under Section 19(b)(3)(A)(ii) 

of the Act 3 and Rule 19b–4(f)(2) 

thereunder,4 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 

The Exchange, through its whollyowned subsidiary NYSE Arca Equities, 

proposes to add a new credit to the 

Schedule of Fees and Charges for 

Exchange Services (the ‘‘Schedule’’) that 

applies to indications of interest 

(‘‘IOIs’’) submitted by ETP Holders 5 that 

result in routed and executed orders. 

While changes to the Schedule pursuant 

to this proposal will be effective upon 

filing, the credit will be applied 

retroactively to August 1, 2008. The text 

of the proposed rule change is available 

on the Exchange’s Web site at 

www.nyse.com, at the Exchange’s Office 

of the Corporate Secretary, and at the 

Commission. 

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 

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 

In an effort to enhance participation 

on the Exchange and to offer increased 

liquidity to its Users,6 the Exchange 

proposes to add a new credit to the 

Schedule concerning orders routed and 

executed based on the Exchange’s 

receipt of IOIs. The proposal establishes 

two volume-based tiers. Tier 1 offers 

ETP Holders a credit of $0.10 per 100 

shares where: (1) The ETP Holder 

submits an IOI to the Exchange; (2) the 

Exchange routes an order to access the 

ETP Holder’s un-displayed liquidity in 

response to the IOI; and (3) those routed 

orders are executed by the ETP Holder 

with an average daily IOI-related share 

volume per month greater than 5 

million shares. Tier 2 offers ETP 

Holders a credit of $0.05 per 100 shares 

where: (1) The ETP Holder submits an 

IOI to the Exchange; (2) the Exchange 

routes an order to access the ETP 

Holder’s un-displayed liquidity in 

response to the IOI; and (3) those routed 

orders are executed by the ETP Holder 

with an average daily IOI-related share 

volume per month between 2.5 million 

and 5 million shares. The proposed IOI 

tiers and credits apply to volume 

aggregated across Tape A, Tape B, and 

Tape C securities.7

IOIs are non-displayed indications of 

symbol, size and side, which do not 

interact with the NYSE Arca Book.8 At 

their discretion, participating ETP 

Holders may send an IOI to the 

Exchange, which in turn will consider 

the IOI when determining potential 

destinations for outbound routes. IOIs 

offer Exchange customers access to 

pools of liquidity that were previously 

inaccessible, thereby reducing market 

fragmentation. By introducing this 

tiered credit, the Exchange is enhancing 

the incentive to participate in the 

Exchange’s IOI program and provide 

additional liquidity to the marketplace. 

While changes to the Schedule 

pursuant to this proposal will be 

effective upon filing, the credit will be 

applied retroactively to August 1, 2008. 

2. Statutory Basis 

The Exchange believes the proposed 

rule change is consistent with Section 

6(b) of Act,9 in general, and furthers the 

objectives of Section 6(b)(4),10 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. The Exchange 

believes that the proposed credit is 

reasonable. The proposed rates are part 

of the Exchange’s effort to attract and 

enhance participation on the Exchange, 

by offering volume-based incentives. 

The Exchange also believes that the 

proposed changes to the Schedule are 

equitable in that they apply uniformly 

to our Users. 

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 

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 proposed rule change 

has become effective upon filing 

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

Act 11 and Rule 19b–4(f)(2) 12 thereunder 


sroberts on PROD1PC76 with NOTICES
50390 Federal Register / Vol. 73, No. 166 / Tuesday, August 26, 2008 / Notices 

13 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. 47560 

(March 21, 2003), 68 FR 15257 (March 28, 2003) 

(notice of filing of SR–PCX–2003–08). As approved 

by the Commission, the Exchange’s proposal to 

establish a pilot program for Linkage Fees noted 

that executions resulting from linkage orders will be 

subject to the same billing treatment as other 

broker-dealer executions. See Securities Exchange 

Act Release Nos. 47786 (May 2, 2003), 68 FR 24779 

(May 8, 2003) (order approving proposal in SR–

PCX–2003–08 to establish pilot program for Linkage 

Fees); 56133 (July 25, 2008 [sic]), 72 FR 42210 

(August 1, 2007) (SR–NYSEArca–2007–66) (order 

approving extension of Linkage Fee pilot program 

through July 31, 2008); 58056 (June 30, 2008), 73 

FR 38482 (July 7, 2008) (SR–NYSEArca–2008–67) 

(order approving extension of Linkage Fee pilot 

program through July 31, 2009). 

5While changes to the Exchange’s schedule of 

fees that apply to Exchange members may be 

submitted pursuant to section 19(b)(3)(A) of the Act 

and subparagraph (f)(2) of Rule 19b–4 thereunder, 

proposed changes that involve the pilot program for 

Linkage Fees must be submitted pursuant to section 

19(b)(2) of the Act. 

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

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

because it establishes or changes a due, 

fee, or other charge imposed by the 

Exchange. 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 

No. SR–NYSEArca–2008–83 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 No. 

SR–NYSEArca–2008–83. 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 such filing also will be available for 

inspection and copying at the principal 

offices 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 No. SR–NYSEArca–

2008–83 and should be submitted on or 

before September 16, 2008. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Florence E. Harmon, 

Acting Secretary. 

[FR Doc. E8–19743 Filed 8–25–08; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–58399; File No. SR–

NYSEArca–2008–88] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of Rule Change by NYSE Arca, Inc. To 

Eliminate the Requirement That Orders 

Sent Via the InterMarket Linkage 

System and Broker Dealer Orders 

Receive the Same Billing Treatment 

August 20, 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 August 

13, 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 Substance of 

the Proposed Rule Change 

The Exchange proposes to revise 

certain requirements pertaining to 

Broker Dealer Transaction Fees. 

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 the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

Presently, executions on NYSE Arca 

resulting from Linkage Orders are 

subject to the same billing treatment as 

other Broker Dealer orders. Assessing 

the same fees for both Broker Dealer 

orders sent directly to the Exchange and 

Linkage Orders stems from prior 

approval orders that established the 

pilot program for Linkage Fees.4 The 

Exchange proposes to eliminate this 

requirement that Linkage Orders and 

Broker Dealer orders receive the same 

billing treatment. In doing so, the 

Exchange will have greater flexibility in 

designing and implementing fees within 

its Post/Take pricing model. By this 

filing, the Exchange is not otherwise 

amending or revising its schedule of 

fees. Any future amendment to the 

Exchange’s schedule of fees will be, of 

course, subject to a filing with the 

Commission.5

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the provisions of Section 6 of the Act,6

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

Act,7 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. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will impose 


sroberts on PROD1PC76 with NOTICES