Document ID: SEC-2008-1585-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NYSE Arca, Inc.
Posted Date: 2008-11-24T05:00Z

[Federal Register: November 24, 2008 (Volume 73, Number 227)]
[Notices]               
[Page 71081-71082]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr24no08-153]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-58967; File No. SR-NYSEArca-2008-129]

 
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change Amending Its 
Schedule of Fees and Charges for Exchange Services That Apply to Mid-
Point Passive Liquidity Orders

November 17, 2008.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 
1934 (the ``Exchange Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is 
hereby given that, on November 6, 2008, NYSE Arca, Inc. (``NYSE Arca'' 
or the ``Exchange''), through its wholly-owned subsidiary NYSE Arca 
Equities, Inc. (``NYSE Arca Equities''), 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 et seq.
    \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 amend its Schedule of Fees and Charges for 
Exchange Services (the ``Schedule'') in order to extend its credit for 
Mid-Point Passive Liquidity (``MPL'') orders to include transactions 
that provide liquidity in Tape C securities. A copy of the new 
Schedule, showing changes pursuant to this filing, attached as Exhibit 
5, is available on the Exchange's Web site at http://www.nyse.com, at 
the Exchange's principal office, 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 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 currently offers NYSE Arca Users \4\ a $.0015 per 
share credit for MPL orders that provide liquidity in Tape A 
securities. In order to provide additional incentives for participation 
and price improvement on NYSE Arca, the Exchange proposes to extend 
this credit to MPL orders that provide liquidity in Tape C securities. 
For start of month billing purposes, the Exchange intends to offer this 
$.0015 per share credit to all Users for MPL orders providing liquidity 
in Tape C securities retroactively, starting November 3, 2008.
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    \4\ See NYSE Arca Equities Rule 1.1(yy) for the definition of 
``User.'' Under Rule 1.1(yy), the term User means any ETP Holder or 
Sponsored Participant who is authorized to obtain access to the NYSE 
Marketplace pursuant to NYSE Arca Equities Rule 7.29. MPL Orders, 
similar to all other order types offered by the Exchange, are 
available only to authorized Users.
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    The Exchange believes that the proposed credit will foster 
additional flexibility and increased system functionality for NYSE Arca 
Users. The Exchange further believes that the proposed credits are 
reasonable and that the proposed changes to the Schedule are equitable 
in that they apply uniformly to our Users.
2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with 
Section 6(b) of the Securities Exchange Act of 1934 (the ``Act''),\5\ 
in general, and furthers the objectives of Section

[[Page 71082]]

6(b)(4),\6\ 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 credits are reasonable. The proposed credits 
further the objectives of Regulation NMS by promoting competition and 
granting fair and equal access to all exchange participants. The 
Exchange also believes that the proposed changes to the Schedule are 
equitable in that they apply uniformly to our Users.
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    \5\ 15 U.S.C. 78a et seq.
    \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 the purposes of the Exchange 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 proposed rule change is effective upon filing pursuant to 
Section 19(b)(3)(A)(ii) of the Act and SEC Rule 19b-4(f)(2) thereunder 
in that it establishes or changes a due, fee, or other charge imposed 
on members 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.

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-2008-129 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-2008-129. 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 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-2008-129 and should be submitted on or before 
December 15, 2008.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\7\
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    \7\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-27882 Filed 11-21-08; 8:45 am]

BILLING CODE 8011-01-P