Federal Register / Vol. 73, No. 198 / Friday, October 10, 2008 / Notices 60377 

13 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3This rule change proposes no changes to the fees 

and rebates applicable to securities executed in the 

Automatic Execution (‘‘Auto Ex’’) mode of order 

interaction under NSX Rule 16.2(b)(1). 

4Securities which trade under one dollar in 

Order Delivery Mode and which add liquidity 

currently receive a rebate of 0.10% of the trade 

value, where ‘‘trade value’’ means a dollar amount 

equal to the price per share multiplied by the 

number of shares executed. 

you wish to make available publicly. All 

submissions should refer to File 

Number SR–Phlx–2008–67 and should 

be submitted on or before October 31, 

2008. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Florence E. Harmon, 

Acting Secretary. 

[FR Doc. E8–24119 Filed 10–9–08; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–58731; File No. SR–NSX– 

2008–17] 

Self-Regulatory Organizations; 

National Stock Exchange, Inc.; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change To Amend 

Exchange Rule 16 and NSX Fee 

Schedule Concerning Liquidity— 

Adding Rebates and Market Data 

Credits for Order Delivery 

Transactions 

October 3, 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 

September 22, 2008, National Stock 

Exchange, Inc. (‘‘NSX’’ 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 comment on the proposed rule 

change from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

National Stock Exchange, Inc. (‘‘NSX’’ 

or ‘‘Exchange’’) is proposing to amend 

Exchange Rule 16 and the NSX Fee and 

Rebate Schedule (the ‘‘Fee Schedule’’) 

in order to (i) reduce the rebate for 

adding liquidity in Order Delivery mode 

of order interaction for those securities 

trading at one dollar or more and (ii) 

eliminate the trade and quote market 

data revenue credit in Order Delivery 

mode for all Tape A securities. 

The text of the proposed rule change 

is available on the Exchange’s Web site 

at http://www.nsx.com, at the principal 

office of the Exchange, 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 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 parts of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and the 

Statutory Basis for, the Proposed Rule 

Change 

Purpose 

With this rule change, the Exchange is 

proposing to reduce the liquidity adding 

rebates and market data revenue credits 

in Order Delivery mode of order 

interaction (‘‘Order Delivery Mode’’).3

In particular, this rule change proposes 

to reduce the rebate for adding liquidity 

in securities trading at or above one 

dollar in Order Delivery Mode to a flat 

rebate of $0.0023 per share executed for 

Tape A, and to $0.0025 per share 

executed for Tapes B and C. In addition, 

the Exchange is proposing to eliminate 

the trade and quote market data revenue 

credit for all Tape A securities executed 

in Order Delivery Mode. 

Reduction of Rebate for Adding 

Liquidity in Order Delivery Mode 

With respect to securities traded at 

one dollar or more in Order Delivery 

Mode, the instant filing proposes 

simplifying the Fee Schedule by 

reducing the per share executed rebate 

to a flat rate of $0.0023 for Tape A 

securities and to $0.0025 for Tapes B 

and C securities. Currently, the per 

share rebate for adding liquidity across 

all tapes in Order Delivery Mode for 

securities executed at one dollar or more 

is $0.0027 if ‘‘Executed ADV’’ is equal 

to or greater than 60 million, and 

$0.0026 if ‘‘Executed ADV’’ is less than 

60 million. As set forth in explanatory 

endnote number 6 to the Fee Schedule 

(which endnote is proposed to be 

deleted as no longer necessary), 

‘‘Executed ADV’’ means, with respect to 

an ETP Holder, ‘‘the number of shares 

such ETP Holder has executed on 

average per trading day (excluding 

partial trading days and securities under 

one dollar) across all tapes on NSX for 

the calendar month in which the 

executions occurred.’’ The instant filing 

proposes to simplify the Fee Schedule 

by eliminating the tiered rebate 

structure in Order Delivery Mode based 

on ‘‘Executed ADV’’ and replacing it 

with a flat fee based solely on whether 

the security is Tape A, B or C. The 

instant filing will affect the calculation 

of the ‘‘Executed ADV’’ for the month of 

September, 2008. Accordingly, the 

‘‘Executed ADV’’ will be calculated 

based on the average per trading day 

(excluding partial trading days and 

securities under one dollar) across all 

tapes on NSX for the period beginning 

September 1, 2008 and ending 

September 22, 2008, the period when 

the old Fee Schedule (prior to the 

instant modification) was in effect. 

Notice will be provided to ETP Holders 

respecting the calculation of the 

Executed ADV. 

The instant rule filing proposes no 

changes to the liquidity adding rebates 

applicable to securities trading at less 

than one dollar in Order Delivery 

Mode.4

Elimination of Market Data Revenue 

Credit for Tape A Securities in Order 

Delivery Mode 

With respect to Tape A securities in 

Order Delivery Mode, the instant filing 

proposes to eliminate the market data 

revenue credit in both trades and 

quotes. Currently in Order Delivery 

Mode, ETP Holders receive a credit of 

50% of both trade and quote market 

data revenues across all tapes. This 

credit is proposed to be eliminated for 

all Tape A securities in Order Delivery 

Mode, regardless of price. 

No Changes to Auto Ex 

For purposes of clarity, the proposed 

rule change proposes no modifications 

to the fees and rebates relating to any 

trades in Auto Ex. 

Rationale 

The Exchange has determined that 

these changes are necessary to increase 

the revenue of the Exchange and to 

adequately fund its regulatory and 

general business functions. The 

proposed modification is reasonable and 

equitably allocated to those ETP Holders 

that opt to provide liquidity in Order 

Delivery Mode, and is not 

discriminatory because ETP Holders are 

free to elect whether to send orders in 

mstockstill on PROD1PC66 with NOTICES

60378 Federal Register / Vol. 73, No. 198 / Friday, October 10, 2008 / Notices 

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

6 15 U.S.C. 78f(b)(4). 

7 15 U.S.C. 78s(b)(3)(A)(ii). 

8 17 CFR 240.19b–4 [sic]. 

9 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. 

4The Commission notes that NYSE is also 

proposing to adopt a new initial listing standard for 

all tapes through the Order Delivery 

Mode, through Auto Ex, and as liquidity 

providing trades and quotes. Based 

upon the information above, the 

Exchange believes that the proposed 

rule change is consistent with the 

protection of investors and the public 

interest. 

Operative Date and Notice 

The Exchange intends to make the 

proposed credit and rebate structure 

effective on filing of this proposed rule 

for trading on September 23, 2008. 

Pursuant to Exchange Rule 16.1(c), the 

Exchange will ‘‘provide ETP Holders 

with notice of all relevant dues, fees, 

assessments and charges of the 

Exchange’’ through the issuance of a 

Regulatory Circular of the changes to the 

Fee Schedule and will provide a copy 

of the rule filing on the Exchange’s Web 

site (http://www.nsx.com). 

Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the provisions of Section 6(b) of the 

Act,5 in general, and Section 6(b)(4) of 

the Act,6 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 the facilities of the 

Exchange. Moreover, the proposed fee 

and rebate structure is not 

discriminatory in that all ETP Holders 

are eligible to submit (or not submit) 

liquidity adding trades and quotes in 

Order Delivery Mode in all tapes and 

may do so at their discretion. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will impose 

any inappropriate burden on 

competition. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

The Exchange has neither solicited 

nor received written comments on the 

proposed rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The proposed rule change has taken 

effect upon filing pursuant to Section 

19(b)(3)(A)(ii) of the Act 7 and 

subparagraph (f)(2) of Rule 19b–4 8

thereunder, because, as provided in 

(f)(2), it ‘‘changes a due, fee or other 

charge imposed by the Exchange 

applicable only to a member’’ (known 

on the Exchange as an ETP Holder). At 

any time within sixty (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–NSX–2008–17 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–NSX–2008–17. 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 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–NSX–2008–17 and should 

be submitted on or before October 31, 

2008. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.9

Florence E. Harmon, 

Acting Secretary. 

[FR Doc. E8–24118 Filed 10–9–08; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–58741; File No. SR–NYSE– 

2008–97] 

Self-Regulatory Organizations; Notice 

of Filing of Proposed Rule Change by 

New York Stock Exchange LLC To 

Adopt an Initial Listing Standard 

Applicable Only to Companies 

Transferring From NYSE Arca 

October 6, 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 October 

1, 2008, New York Stock Exchange LLC 

(the ‘‘NYSE’’ or the ‘‘Exchange’’) filed 

with the Securities and Exchange 

Commission the proposed rule changes 

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 changes 

from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to amend 

Section 102.01C of the Exchange’s 

Listed Company Manual (the ‘‘Manual’’) 

to adopt an initial listing standard that 

will be applicable only to companies 

that are listed on NYSE Arca, Inc. 

(‘‘NYSE Arca’’) as of October 1, 2008 

and that transfer to the Exchange on or 

before March 31, 2009. The Exchange 

also proposes to apply the continued 

listing standard applicable under 

Section 802.01B to companies listed 

under the Earnings Test to companies 

listed under the proposed new initial 

listing standard.4

mstockstill on PROD1PC66 with NOTICES