Document ID: SEC-2009-0032-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: New York Stock Exchange LLC
Posted Date: 2009-01-07T05:00Z

[Federal Register: January 7, 2009 (Volume 74, Number 4)]
[Notices]               
[Page 748-749]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr07ja09-64]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-59178; File No. SR-NYSE-2008-137]

 
Self-Regulatory Organizations; New York Stock Exchange LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Extend the Pilot Program That Offers Liquidity Takers a Reduced 
Transaction Fee Structure for Certain Bond Trades Executed on the NYSE 
Bonds System

December 30, 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 December 22, 2008, 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 NYSE. The Exchange has 
designated this proposal as one establishing or changing a due, fee, 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 
proposal effective upon filing with the Commission. The Commission is 
publishing this notice to solicit comments on the proposed rule change 
from interested persons.
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    \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).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to extend the pilot program that offers 
liquidity takers a reduced transaction fee structure for certain bond 
trades executed on the NYSE Bonds\SM\ system (``NYSE Bonds'') to 
December 31, 2009. The Exchange also seeks to make technical amendments 
to the fee schedule.
    The text of the proposed rule change is available at NYSE, 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, 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. 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 extend the pilot program that offers 
liquidity takers a reduced transaction fee structure for certain bond 
trades executed on the NYSE Bonds\SM\ system (``NYSE Bonds'') to 
December 31, 2009.
    The Exchange's pilot program reduces transaction fees charged to 
liquidity takers for transactions executed on NYSE Bonds with a 
staggered transaction fee schedule based on the number of bonds 
purchased or sold in excess of ten (10) bonds. Currently, the 
transaction fee for orders that take liquidity from the market is $.50 
per bond. This fee remains unchanged for orders up to ten (10) bonds. 
The extended fee filing pilot program provides for the following 
transaction fee schedule: (1) When the liquidity taker purchases or 
sells from one to ten (10) bonds, the Exchange will charge an execution 
fee of $0.50 per bond; (2) when the liquidity taker purchases or sells 
from eleven (11) to twenty-five (25) bonds, the Exchange will charge an 
execution fee of $0.20 per bond, and (3) when the liquidity taker 
purchases or sells twenty-six (26) bonds or more, the Exchange will 
charge an execution fee of $0.10 per bond.
    For example, if a liquidity taker purchases or sells five (5) 
bonds, the Exchange will charge $.50 per bond, or a total of $2.50 for 
execution fees. If a liquidity taker purchases or sells twenty (20) 
bonds, the Exchange will charge $.20 per bond or a total of $4.00 for 
execution fees. If a liquidity taker purchases or sells thirty (30) 
bonds, the Exchange will charge $.10 per bond or a total of $3.00 for 
execution fees.
    The Exchange will impose a $100 execution fee cap per transaction.
    Additionally, the Exchange seeks to clarify the language in the fee 
schedule by replacing the word ``order'' with ``execution.'' The 
Exchange is not charging liquidity takers for these orders but rather 
will be charging for the executions of those orders. Accordingly, the 
Exchange has proposed to amend the fee schedule to clarify the current 
language in the fee schedule.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with

[[Page 749]]

the provisions of Section 6 of the Act \5\ in general and furthers the 
objectives of 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 its 
facilities.
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    \5\ 15 U.S.C. 78f.
    \6\ 15 U.S.C. 78f(b)(4).
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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 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

    Because the foregoing rule change establishes or changes a due, 
fee, or other charge imposed by the Exchange, it has become effective 
pursuant to Section 19(b)(3)(A) of the Act \7\ and subparagraph (f)(2) 
of Rule 19b-4 thereunder.\8\ 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.
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    \7\ 15 U.S.C. 78s(b)(3)(A).
    \8\ 17 CFR 240.19b-4(f)(2).
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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 rule-comments@sec.gov. Please include 
File Number SR-NYSE-2008-137 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-2008-137. 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 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-2008-137 and should be 
submitted on or before January 28, 2009.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Acting Secretary.
 [FR Doc. E9-4 Filed 1-6-09; 8:45 am]

BILLING CODE 8011-01-P