Document ID: SEC-2008-1660-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NYSE Alternext US LLC
Posted Date: 2008-12-10T05:00Z

[Federal Register: December 10, 2008 (Volume 73, Number 238)]
[Notices]               
[Page 75151-75154]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr10de08-101]                         

[[Page 75151]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-59045; File No. SR-NYSEALTR-2008-09]

 
Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by NYSE Alternext U.S. LLC To 
Adopt a Price List for Equity Transactions after the Relocation of NYSE 
Alternext Equities Trading and To Establish Certain Other Fees

December 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 November 28, 2008, NYSE Alternext U.S. LLC (the ``Exchange'' 
or ``NYSE Alternext'') 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 
Exchange. 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.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to adopt a new equities pricing schedule 
applicable to NYSE Alternext members after the relocation of all 
equities trading currently conducted on or through the American Stock 
Exchange legacy trading systems and facilities located at 86 Trinity 
Place, New York, New York, to the NYSE trading facilities and systems 
located at 11 Wall Street, New York, New York (the ``NYSE Alternext 
Trading Systems''), which will be operated by the NYSE on behalf of 
NYSE Alternext (the ``Equities Relocation'') and to make changes to the 
NYSE Alternext U.S. Price List to reflect the fact that it will relate 
only to options trading after the Equities Relocation (to be renamed 
the ``NYSE Alternext Options Price List''). The text of the proposed 
rule change is available on the Exchange's Web site (http://
www.amex.com), at the Exchange's Office of the Secretary, 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 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 these statements may be examined at 
the places specified in Item IV below. NYSE Alternext 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
    NYSE Alternext proposes to adopt a new pricing schedule (the ``NYSE 
Alternext Equities Price List'') applicable to Exchange members 
engaging in equities transactions after the Equities Relocation and to 
make changes to the NYSE Alternext U.S. Price List to reflect the fact 
that it will relate only to options trading after the Equities 
Relocation and will be renamed the NYSE Alternext Options Price List.
    While the specific amounts of the transaction fees and credits are 
different on the proposed NYSE Alternext Equities Price List from those 
on the NYSE price list, the proposed NYSE Alternext Equities Price List 
has been structured so as to be generally similar to the NYSE Price 
List. This is particularly appropriate because member organizations of 
NYSE Alternext that trade equities after the Equities Relocation and 
NYSE member organizations will all become member organizations of both 
exchanges at the time of the Equities Relocation. This dual membership 
structure will allow all member organizations to trade on both 
exchanges and makes it desirable to harmonize the pricing structures of 
the two exchanges as much as possible.
Equity Transaction Fees
    Member organizations other than Designated Market Makers (``DMMs'') 
will be subject to the following schedule of fees and rebates with 
respect to transactions in equity securities \3\ with a trading price 
of $1.00 or more:
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    \3\ Equity transaction fees apply to transactions in rights, 
warrants and closed end funds.

Equity per Share Credit--per transaction--  $0.0015.
 when adding liquidity.
Agency cross trades (i.e., a trade where a  No Charge.
 Member Organization has customer orders
 to buy and sell an equivalent amount of
 the same security) of 10,000 shares or
 more.
Non-electronic agency transactions of       No Charge.
 10,000 shares or more between floor
 brokers in the crowd.
At the opening or at the opening only       No Charge.
 orders.
Equity per Share Charge--per transaction    $0.0010.
 (charged to both sides)--for all odd lot
 transactions (including the odd lot
 portions of partial round lots).
Equity per Share charge--market at-the-     $0.0005.
 close and limit at-the-close orders.
Equity per Share Charge--Agency cross       $0.0005.
 trades of less than 10,000 shares.
Equity per Share Charge for all other       $0.0025.
 transactions (i.e., when taking liquidity
 from the Exchange)--per transaction.
Routing Fee \4\--per share (except floor    $0.0030.
 brokers).
Routing Fee--per share (floor brokers)....  $0.0029.

    Member organizations other than DMMs will be subject to the 
following schedule of fees and rebates with respect to transactions in 
equity securities with a trading price less than $1.00:
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    \4\ All routing fees set forth in the NYSE Alternext Equities 
Price List apply to all orders routed from NYSE Alternext and 
executed in another market. Routing Fees are in lieu of NYSE 
Alternext transaction charges.

Equity per Share Charge when adding         No Charge.
 liquidity to the Exchange.
Equity per Share Charge when taking         0.25% of total dollar value
 liquidity from the Exchange--per            of the transaction.
 transaction.

[[Page 75152]]

Equity per Share Charge--Market at the      The lesser of (i) $0.0005
 Close and Limit at the Close Orders.        per share, and (ii) 0.25%
                                             of the total dollar value
                                             of the transaction.
Equity per Share Charge--per transaction    The lesser of (i) $0.0010
 (charged to both sides)--for all odd lot    per share, and (ii) 0.25%
 transactions (including the odd lot         of the total dollar value
 portions of partial round lots).            of the transaction.
Routing Fee--per share....................  0.3% of the total dollar
                                             value of the transaction.

    DMMs will be subject to the following schedule of fees and rebates 
with respect to transactions in equity securities with a trading price 
of $1.00 or more:

Equity per Share Charge when taking         $0.0015.
 liquidity from the Exchange.
Equity per Share Credit \5\ when adding     $0.0035.
 liquidity to the Exchange.
Executions at the opening.................  No Charge.
Equity per Share Credit--per transaction--  $0.0005.
 for all odd lot transactions (including
 the odd lot portions of partial round
 lots).
Equity per Share Credit for executions at   $0.0005.
 the close.
Routing Fee--per Share Charge.............  $0.0030.

    DMMs will be subject to the following schedule of fees and rebates 
with respect to transactions in equity securities with a trading price 
less than $1.00:
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    \5\ Rebates will be applied when (i) Posting displayed and non-
displayed orders on Display Book, including s-quote and s-quote 
reserve orders; (ii) when providing liquidity on non-displayed 
interest using the Capital Commitment Schedule; or, prior to the 
implementation of the Capital Commitment Schedule, using the 
following message activities: Price improvement, size improvement 
(PRIN FILL), matching away market quotes; (iii) when executing 
trades in the crowd and at Liquidity Replenishment Points; and (iv) 
when providing liquidity on market-at-the-close and limit-at-the-
close transactions. Rebates will not apply to executions at the 
open.

Equity per Share Charge when taking         No Charge.
 liquidity from the Exchange.
Equity per Share Credit when adding         0.15% of the total dollar
 liquidity to the Exchange.                  value of the transaction.
Routing Fee--per Share Charge.............  0.3% of the total dollar
                                             value of the transaction.

    Each DMM will receive all of the market data quote revenue (the 
``Quoting Share'') received by the Exchange from the Consolidated Tape 
Association under the Revenue Allocation Formula of Regulation NMS with 
respect to any security (with a trading price either above or below 
$1.00) in any month in which the DMM meets the quoting requirement of 
Rule 104(a)(1)(A) for that specific security. However the DMM quoting 
requirement for securities trading below $1.00 will not come into 
effect until after the first two months of operation.
    Crossing sessions. There will be no fees with respect to 
transactions in Crossing Session I (single stocks) or Crossing Session 
II (portfolios).
NYSE Alternext Bonds System
    Transactions on the NYSE Alternext Bonds System will be subject to 
the following fee schedule:

Exchange-Sponsored Graphic User Interface   $5,000.00 per year.
 ``GUI''.
Execution Fee per bond for orders that
 take liquidity from the NYSE Alternext
 Bonds Book (effective through December
 31, 2008):
    Orders of one to ten (10) bonds.......  $0.50 per bond.
    Orders of eleven (11) to twenty-five    $0.20 per bond.
     (25) bonds.
    Orders of twenty-six (26) bonds or      $0.10 per bond.
     more.

    Transaction fees on bond transactions are subject to a $100.00 
maximum fee per transaction (through December 31, 2008).
Floor Fees
    As NYSE Alternext equities trading will take place in the NYSE 
trading facilities after the Equities Relocation, NYSE Alternext member 
organizations conducting an equities trading business will pay the same 
fees as NYSE member organizations in relation to their employees 
working on the trading floor and equipment used on the trading floor. 
The applicable charges are as follows:

Clerk Badge Fee:
    Annual Fee per Clerk..................  $1,000.00.
Radio Paging Service:
    Base charge (unit and first channel)..  $408.50.
    Each additional channel...............  $139.75.
Financial Vendor Services:
    Administrative Fee Per ITPN User \6\..  $480.00.
    Various Products......................  Direct Pass Through.\7\
Member Telephone Service:
Toll call amount billed by Verizon plus a
 per call surcharge on:
    Toll calls $0.69 and below............  $0.16.
    Toll calls greater than $0.69.........  $0.26.
Cellular Phones:

[[Page 75153]]

    Phone and Headset.....................  No Charge.
    Ongoing Maintenance--per phone........  $240.00.\8\
Booth Telephone System:
    Annual Telephone Line Charge..........  $400.00 per phone number.
    Single line phone, jack, and data jack  $129.00.
Service Charges \9\:
    Install single jack (voice or data)...  $161.25.
    Relocate jack.........................  $107.50.
    Remove jack...........................  $53.75.
    Install voice or data line............  $107.50.
    Disconnect data line..................  $53.75.
    Change phone line subscriber..........  $53.75.
Miscellaneous telephone charges \10\
Broker Subscriber Service:
    e-Broker Hand Held Device (annual       $5,000.00.
     charge per handheld device).
System Processing Fees
Online Comparison System (OCS):
Transaction Fees:
Next Day Submission (Adds or Adjustments)
 and Questioned Trade:
    Charge--per submission or questioned    $0.50.
     trade.
    Step Out Charge (Adds or Adjustments)-- $0.25.
     per transaction.
    Transactions submitted to the Exchange  $0.10.
     for trade date comparison (Adds)--per
     submission.
Merged Order Report:
Charge per copy (other than first copy):
    Machine Readable Output and Print       $3.00 per 1,000 records.
     Image Transmission.
    Hard Copy.............................  $4.50 per 1,000 lines.

Other Changes
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    \6\ ITPN ``User'' is a member or person associated with a 
member, who has been entitled to receive one or more third party 
market data vendor service offerings via the Exchange's Integrated 
Technology Program Network.
    \7\ Plus appropriate sales tax where applicable.
    \8\ Plus sales tax.
    \9\ The Exchange will make all efforts to perform services 
during hours covered by the maintenance contract; however, tasks 
performed during overtime hours will be billed at a rate of 25% 
above the normal service charge.
    \10\ To be billed at $106 per hour in 15 minute increments.
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    The sections of the NYSE Alternext U.S. Price List in place prior 
to the Equities Relocation that set forth the Network B market data 
fees and the equity listing fees are included in the proposed NYSE 
Alternext Equities Price List. No changes are being made to any of 
these fees in this filing. Pricing for Exchange publications, including 
copies of the Exchange's Rule Book and Company Guide, will be included 
in both the equities and options price lists going forward.

Options Price List

    The NYSE Alternext U.S. Price List in effect prior to the Equities 
Relocation is being renamed the NYSE Alternext Options Price List. All 
pricing information relating to the trading of securities other than 
options is being deleted and either (i) moved to the NYSE Alternext 
Equities Price List or replaced with new fees as discussed above or 
(ii) eliminated as no longer relevant.\11\
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    \11\ Pricing for Exchange Traded Fund and Exchange Traded Notes 
is eliminated because those securities will not be traded on the 
Exchange after the Relocation. Similarly, the Exchange will not 
facilitate UTP trading after the Relocation, so the pricing for the 
New UTP Trading Platform is no longer relevant. Consistent with the 
NYSE Price List, the NYSE Alternext U.S. Equities Price List will 
not make reference to Section 31 fees collected by the Exchange for 
payment to the Commission.
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Regulatory Fees
    NYSE Alternext Equities Rule 2 provides that, at the time of the 
Equities Relocation, all NYSE member organizations will automatically 
become NYSE Alternext member organizations. By acquiring NYSE Alternext 
membership, the NYSE member organizations that were not previously NYSE 
Alternext members would become subject to the NYSE Alternext 
registration fees for all of their employees who serve as registered 
representatives. As these NYSE member organizations that have no NYSE 
Alternext business prior to the Equities Relocation will become NYSE 
Alternext members without any action on their own part, NYSE Alternext 
will waive the application of its registered representative fees to 
those firms for the month of December. NYSE Alternext expects to submit 
a filing to adopt a revised registered representative fee commencing 
January 1, 2009.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the provisions of Section 6 \12\ of the Act 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. The Exchange believes that the proposal does not 
constitute an inequitable allocation of dues, fees and other charges as 
the same fees will be charged to all member organizations.
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    \12\ 15 U.S.C. 78f.
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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

    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 foregoing rule change is effective upon filing pursuant to 
Section 19(b)(3)(A) \13\ of the Act and Rule 19b-4(f)(2) \14\ 
thereunder.
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    \13\ 15 U.S.C. 78s(b)(3)(A).
    \14\ 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.

[[Page 75154]]

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-NYSEALTR-2008-09 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-NYSEALTR-2008-09. 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 the 
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-NYSEALTR-2008-09 and should be submitted on or before 
December 31, 2008.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\15\
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    \15\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-29137 Filed 12-9-08; 8:45 am]

BILLING CODE 8011-01-P