Document ID: SEC-2008-0086-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NYSE Arca,  Inc.
Posted Date: 2008-01-17T05:00Z

[Federal Register: January 17, 2008 (Volume 73, Number 12)]
[Notices]               
[Page 3305-3306]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr17ja08-107]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-57122; File No. SR-NYSEArca-2008-02]

 
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing 
and Immediate Effectiveness of a Proposed Rule Change Relating to 
Exchange Fees and Charges

January 10, 2008.
    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 January 3, 2008, NYSE Arca, Inc. (``NYSE Arca'' or ``Exchange'') 
filed with the Securities and Exchange Commission (``Commission'') the 
proposed rule change as described in Items I, II and III below, which 
Items have been prepared substantially by the Exchange. NYSE Arca has 
designated this proposal 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 proposal effective upon filing with the Commission. 
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.
    \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

    NYSE Arca is proposing to amend the existing Schedule of Fees and 
Charges for Exchange Services (``Schedule'') to remove the fee 
reference associated with a pilot program that offered a monthly cap on 
the Firm Facilitation Fee. The pilot program expired on December 31, 
2007. The text of the proposed rule change is available at http://www.nyse.com
, the principal offices of the Exchange, and 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. NYSE Arca 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 its Schedule to reflect the 
termination of a pilot program under which OTP Firms are eligible for a 
monthly cap of $50,000 on Firm Facilitation Fees (``Pilot'').
    The Pilot was established as part of SR-NYSEArca-2007-93 \5\ and 
was in

[[Page 3306]]

effect through December 31, 2007. By offering a monthly cap of the Firm 
Facilitation Fee, the Exchange hoped to garner additional order flow 
from market participants that were attracted to the competitive fee 
structure. The Exchange offered this fee cap on a limited pilot basis 
in order to measure its effectiveness and then make a determination 
whether to adopt it on a permanent basis.
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    \5\ See Securities Exchange Act Release No. 56595 (October 1, 
2007) 72 FR 57372 (October 9, 2007) (SR-NYSEArca-2007-93). In 
addition to the establishment of the Pilot Program capping monthly 
fees, SR-NYSEArca-2007-93 proposed other changes related to the Firm 
Facilitation Fee. This filing serves only to amend the Schedule by 
removing the reference to the fee cap, and proposes no other changes 
to the application of the Firm Facilitation Fee.
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    After analyzing the effectiveness of the fee cap during the Pilot, 
the Exchange determined that the Pilot did not meet its stated 
objectives, and therefore the Exchange did not extend the program. The 
program expired on December 31, 2007. The Exchange now plans to revise 
the Schedule to remove the reference to the Pilot Program.
2. Statutory Basis
    The Exchange believes the proposal is consistent with Section 6(b) 
of the Act \6\ in general, and Section 6(b)(4) of the Act \7\ in 
particular, in that it provides for the equitable allocation of 
reasonable dues, fees, and other charges among its members.
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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 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 proposed rule change has been designated as a fee 
change pursuant to Section 19(b)(3)(A)(ii) of the Act \8\ and Rule 19b-
4(f)(2) \9\ thereunder, because it establishes or changes a due, fee, 
or other charge imposed on members by the Exchange. Accordingly, the 
proposal is effective upon filing with the Commission. 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.
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    \8\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \9\ 17 CFR 240.19b-4(f)(2).
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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 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-2008-02 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 Number SR-NYSEArca-2008-02. 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 such 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 publicly available. All 
submissions should refer to File Number SR-NYSEArca-2008-02 and should 
be submitted on or before February 7, 2008.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
Florence E. Harmon,
Deputy Secretary.
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    \10\ 17 CFR 200.30-3(a)(12).
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 [FR Doc. E8-792 Filed 1-16-08; 8:45 am]

BILLING CODE 8011-01-P