Document ID: SEC-2008-1176-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NYSE Arca, Inc.
Posted Date: 2008-08-26T04:00Z

[Federal Register: August 26, 2008 (Volume 73, Number 166)]
[
Notices]               
[Page 50390-50391]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr26au08-108]                         

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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.

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

    \2\ 15 U.S.C. 78a.

    \3\ 17 CFR 240.19b-4.

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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\

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    \4\ See 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).

    \5\ While 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.

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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.

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

    \7\ 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

[[Page 50391]]

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 foregoing rule change is effective upon filing pursuant to 

section 19(b)(3)(A) \8\ of the Act and subparagraph (f)(2) of Rule 19b-

4 \9\ thereunder, because it pertains to a due, fee, or other charge 

imposed by NYSE Arca.

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

    \9\ 17 CFR 240.19b-4(f)(2).

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    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 rule-comments@sec.gov. Please include 

File Number SR-NYSEArca-2008-88 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-2008-88. 

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 the filing will also be available for 

inspection and copying at the principal office of the self-regulatory 

organization. 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-2008-88 and should be submitted on or before September 16, 

2008.

    For the Commission, by the Division of Trading and Markets, 

pursuant to delegated authority.\10\

Florence E. Harmon,

Acting Secretary.

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    \10\ 17 CFR 200.30-3(a)(12).

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[FR Doc. E8-19786 Filed 8-25-08; 8:45 am]

BILLING CODE 8010-01-P