Document ID: SEC-2006-1427-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: NYSE Arca, Inc.
Posted Date: 2006-11-06T05:00Z

[Federal Register: November 6, 2006 (Volume 71, Number 214)]
[Notices]               
[Page 65024-65026]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr06no06-73]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-54664; File No. SR-NYSEArca-2006-72]

 
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change and Amendment No. 1 
Thereto Relating to the Revision of Certain Equity Transaction and 
Market Data Revenue Sharing Credits

October 27, 2006.
    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 October 5, 2006, NYSE Arca, Inc. (``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

[[Page 65025]]

in Items I, II and III below, which Items have been prepared by the 
Exchange. On October 26, 2006, the Exchange filed Amendment No. 1. The 
Exchange has designated this proposed rule change as one establishing 
or changing a member 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 proposed rule change effective upon 
filing with the Commission. The Commission is publishing this notice to 
solicit comments on the proposed rule change, as amended, 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 amend the section of its Schedule of Fees 
and Charges for Exchange Services (``Fee Schedule'') that applies to 
certain ETP Holder \5\ transaction credits and market data revenue 
sharing credits. While changes to the Fee Schedule pursuant to this 
proposed rule change are effective upon filing with the Commission, the 
new rates will become operative on October 9, 2006. The text of the 
proposed rule change is available on the Exchange's Web site at http://www.nysearca.com
, at the Exchange's Office of the Secretary, and in the 

Commission's Public Reference Room.
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    \5\ See NYSE Arca Equities Rule 1.1(n).
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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, as 
amended. 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 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 amend the section of the Fee Schedule that 
applies to certain ETP Holder transaction credits and market data 
revenue sharing credits in order to incorporate the Exchange's recently 
approved new order type, the Passive Liquidity Order,\6\ into the Fee 
Schedule in the same manner as Tracking Orders. While changes to the 
Fee Schedule pursuant to this proposed rule change are effective upon 
filing with the Commission, the new rates will become operative on 
October 9, 2006.
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    \6\ The Commission recently approved the use of Passive 
Liquidity Orders on the NYSE Arca Marketplace. See Securities 
Exchange Act Release No. 54511 (September 26, 2006), 71 FR 58460 
(October 3, 2006)(SR-PCX-2005-53).
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    The Fee Schedule currently provides in footnote 5 that Tracking 
Orders will not be eligible for ETP Holder transaction credits. The 
Exchange proposes to amend footnote 5 to the Fee Schedule to provide 
that Passive Liquidity Orders also will not be eligible for ETP Holder 
transaction credits.
    The Fee Schedule currently provides in footnote 6 that an ETP 
Holder that submits a Tracking Order instruction that subsequently 
matches against an inbound marketable order will not be entitled to 
receive the Liquidity Provider Credit. The Exchange proposes to amend 
footnote 6 to the Fee Schedule to provide that an ETP Holder submitting 
a Passive Liquidity Order instruction also will not be entitled to 
receive the Liquidity Provider Credit.
    The Exchange is not providing credits to ETP Holders entering 
Passive Liquidity Orders because it has no reason at this time to 
create incentives for the entry of such orders.\7\
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    \7\ Amendment No. 1.
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act,\8\ in general, and furthers the 
objectives of Section 6(b)(4) of the Act,\9\ in particular, in that it 
provides for the equitable allocation of reasonable dues, fees and 
other charges among its members and other persons using its facilities.
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    \8\ 15 U.S.C. 78f(b).
    \9\ 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 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 pursuant to 
section Section 19(b)(3)(A)(ii) of the Act \10\ and subparagraph (f)(2) 
of Rule 19b-4 thereunder \11\ because it establishes or changes a 
member due, fee, or other charge imposed by the self-regulatory 
organization. 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.\12\
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    \10\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \11\ 17 CFR 240.19b-4(f)(2).
    \12\ 15 U.S.C. 78s(b)(3)(C). For purposes of calculating the 60-
day period within which the Commission may summarily abrogate the 
proposal, the Commission considers the period to have commenced on 
October 26, 2006, the date on which the Exchange filed Amendment No. 
1.
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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, as amended, 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 No. SR-NYSEArca-2006-72 on the subject line.

Paper Comments

     Send paper comments in triplicate to Nancy M. Morris, 
Secretary, Securities and Exchange Commission, Station Place, 100 F 
Street, NE., Washington, DC 20549-1090.
    All submissions should refer to File No. SR-NYSEArca-2006-72. 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

[[Page 65026]]

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. Copies of such filing will also 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 No. SR-NYSEArca-2006-72 and should be 
submitted on or before November 27, 2006.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\13\
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    \13\ 17 CFR 200.30-3(a)(12).
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Nancy M. Morris,
Secretary.
[FR Doc. E6-18633 Filed 11-3-06; 8:45 am]

BILLING CODE 8011-01-P