Document ID: SEC-2008-1748-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: New York Stock Exchange LLC
Posted Date: 2008-12-31T05:00Z

[Federal Register: December 31, 2008 (Volume 73, Number 251)]
[Notices]               
[Page 80488-80489]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr31de08-111]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-59140; File No. SR-NYSE-2008-130]

 
Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by New York Stock Exchange LLC To 
Establish a Trading License Fee for 2009 and Amend Certain Other Floor 
Fees

December 22, 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 December 18, 2008, New York Stock Exchange LLC (the 
``NYSE'' 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: (i) Amend Exchange Rule 300 (Trading 
Licenses) to provide that the fee for trading licenses will be set 
forth on the Exchange's Price List rather than in Rule 300; (ii) amend 
Rule 300 to provide that trading licenses purchased following the 
annual offering will be sold for a pro rated portion of the annual fee, 
rather than at a premium to the annual price; (iii) establish a trading 
license fee for 2009 of $40,000; (iv) reduce from $5,000 to $1,000 the 
fee related to the approval of a pre-qualified substitute employee; and 
(v) eliminate the $1,000 clerk badge fee. The text of the proposed rule 
change is available on the Exchange's Web site (http://www.nyse.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 Exchange included statements 
concerning the purpose of, and basis for, the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item IV below. The NYSE has prepared summaries, set forth in Sections 
A, B, and C below, of

[[Page 80489]]

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
    Exchange Rule 300(b) sets forth the fee payable by member 
organizations buying trading licenses in the annual offering. The 
Exchange proposes to amend Rule 300(b) to provide that the trading 
license fee for each year will not be set forth in the rule itself but 
will rather be established each year by way of an amendment to the 
Exchange's price list submitted to the Commission as a rule filing 
under Rule 19b-4.\4\ This is consistent with the Exchange's general 
approach to fees applicable to member organizations, which are 
typically set forth in the Exchange's price list but not included in 
the Exchange rules. Rule 300(d) provides that member organizations 
buying trading licenses after the start of the applicable calendar year 
are charged $44,000 (a 10 percent premium over the 2008 trading license 
fee of $40,000), pro rated to reflect the amount of time left in the 
year. The Exchange proposes to amend Rule 300(d) to provide that 
additional trading licenses purchased after the annual offering will be 
sold at the same price as licenses purchased in the annual offering, 
pro rated to reflect the amount of time remaining in the year. The 
Exchange proposes to maintain the trading license fee at $40,000 for 
calendar 2009.
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    \4\ 17 CFR 240.19b-4.
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    The Exchange currently charges a $5,000 fee with respect to the 
approval of a pre-qualified substitute employee.\5\ This fee is billed 
to the member organization which is the new employer of (i) any new 
member or pre-qualified substitute not transferring from another member 
organization, (ii) any approved member who changes employment and 
continues as a member with that member organization, or (iii) any pre-
qualified substitute who changes employment and continues as a pre-
qualified substitute with that member organization. The Exchange 
proposes to reduce this fee from $5,000 to $1,000 commencing January 1, 
2009.
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    \5\ A pre-qualified substitute employee is an employee of a 
member organization who has been approved to work on the Exchange 
trading floor and can be assigned to work on the trading floor at 
anytime that the member organization has a trading license available 
for use.
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    The Exchange currently charges member organizations a $1,000 badge 
fee for each clerk working on the trading floor. The Exchange proposes 
to eliminate this fee with effect from January 1, 2009.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the objectives of Section 6 \6\ of the Act in general and furthers 
the objectives of Section 6(b)(4) \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. The Exchange believes that the proposal does not constitute 
an inequitable allocation of dues, fees and other charges as it 
provides the DMMs appropriate incentives to act as liquidity providers 
and supports them in performing their central function in the 
Exchange's market model.
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    \6\ 15 U.S.C. 78f.
    \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 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 were neither solicited nor received.

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 Rule 19b-4(f)(2) \9\ thereunder.
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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-NYSE-2008-130 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-2008-130. 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 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-NYSE-2008-130 and should be submitted on or before 
January 21, 2009.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-31049 Filed 12-30-08; 8:45 am]

BILLING CODE 8011-01-P