Document ID: SEC-2007-0979-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: New York Stock Exchange LLC
Posted Date: 2007-07-19T04:00Z

[Federal Register: July 19, 2007 (Volume 72, Number 138)]
[Notices]               
[Page 39651-39653]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr19jy07-82]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-56065; File No. SR-NYSE-2007-60]

 
Self-Regulatory Organizations; New York Stock Exchange LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Charge Member Organizations a Routing Fee for Orders Routed to Other 
Markets for Execution

 July 13, 2007.
    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 June 29, 2007, the New York Stock Exchange LLC (``NYSE'' 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 substantially prepared by the 
NYSE. The NYSE has designated this

[[Page 39652]]

proposal as one establishing or changing a due, fee, or other charge 
imposed by the NYSE 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

    The NYSE proposes to charge its member organizations a fee of 
$0.0025 per share in equity transactions and $0.0030 per share in 
transactions in exchange traded fund (``ETF'') securities where those 
orders are executed in another market on the Exchange's behalf by 
Archipelago Securities LLC (``Arca Securities'') as a routing broker. 
The text of the proposed rule change is available on the NYSE's Web 
site (http://www.nyse.com), at the principal office of the NYSE, 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 NYSE 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 NYSE 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 charge its member organizations a fee of 
$0.0025 per share in equity transactions (the ``Equity Routing Fee'') 
and $0.0030 per share in ETF transactions (the ``ETF Routing Fee,'' 
and, together with the Equity Routing Fee, the ``Routing Fees'') where 
those orders are executed in another market on the Exchange's behalf by 
Arca Securities as a routing broker.
    The Exchange proposes to set the Routing Fees at the same level as 
linkage order fees (``Linkage Order Fees'') that the Exchange has been 
charging for transactions routed away to other markets pursuant to the 
``Plan for the Purpose of Creating and Operating an Intermarket 
Communications Linkage'' (the ``Linkage Plan''). The Linkage Plan 
expired by its terms on June 30, 2007, and the Exchange will now route 
all orders it is required to send to other markets by utilizing Arca 
Securities as a routing broker. This filing clarifies that, once the 
Linkage Plan is no longer in effect, Entering Firms will continue to be 
charged a Routing Fee in the same amount as the predecessor Linkage 
Order Fee for orders routed to other markets. Arca Securities will be 
billed by the destination markets for orders entered on the Exchange by 
Entering Firms but routed to other markets for execution. The Exchange 
will assume responsibility for fees paid by Arca Securities to other 
markets in its capacity as the Exchange's Routing Broker. The Exchange 
proposes to bill each Entering Firm the applicable Routing Fee in order 
to recover these expenses.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the objectives of Section 6 \5\ of the Act \6\ 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 fee is intended to permit the Exchange to recover 
fees billed to Arca Securities by other markets for orders executed in 
other markets.
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    \5\ 15 U.S.C. 78f.
    \6\ 15 U.S.C. 78a.
    \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 purpose 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 has become effective pursuant to Section 
19(b)(3)(A) of the Act \8\ and Rule 19b-4(f)(2) \9\ thereunder because 
it involves a member fee imposed by the Exchange. At any time within 60 
days of the filing of such 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).
    \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-NYSE-2007-60 on the subject line.

Paper Comments

     Send paper comments in triplicate to Nancy M. Morris, 
Secretary, Securities and Exchange Commission, 100 F Street, NE., 
Washington, DC 20549-1090.

All submissions should refer to File Number SR-NYSE-2007-60. 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 NYSE. All 
comments received will be posted without change; the Commission does 
not edit personal identifying information from submissions. You should 
submit only information that

[[Page 39653]]

you wish to make available publicly. All submissions should refer to 
File Number SR-NYSE-2007-60 and should be submitted on or before August 
9, 2007.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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Nancy M. Morris,
Secretary.
 [FR Doc. E7-13960 Filed 7-18-07; 8:45 am]

BILLING CODE 8010-01-P