Document ID: SEC-2007-1310-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: NYSE Arca, Inc.
Posted Date: 2007-09-25T04:00Z

[Federal Register: September 25, 2007 (Volume 72, Number 185)]
[Notices]               
[Page 54505-54506]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr25se07-91]                         

[[Page 54505]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-56452; File No. SR-NYSEArca-2007-89]

 
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change and Amendment No. 1 
Thereto To Amend Fees for the Entry of Good Till Cancelled or Good Till 
Date Orders

September 18, 2007.
    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 August 28, 2007, 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 substantially 
prepared by the Exchange. On September 18, 2007, NYSE Arca filed 
Amendment No. 1 to the proposed rule change. The Exchange filed the 
proposed rule change pursuant to section 19(b)(3)(A) of the Act \3\ and 
Rule 19b-4(f)(2) thereunder,\4\ which renders it 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).
    \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 Exchange proposes to amend the section of its Schedule of Fees 
and Charges for Exchange Services (the ``Fee Schedule'') that applies 
to orders submitted by ETP Holders \5\ identified with a time-in-force 
modifier of either Good Till Cancelled (``GTC'') or Good Till Date 
(``GTD'') \6\ (either or both referred to herein as an ``Open Order 
Modifier(s)''). The text of the proposed rule change is available on 
the Exchange's Web site at http://www.nyse.com, at the Exchange's 
Office of the Secretary and at the Commission's Public Reference Room.
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    \5\ See NYSE Arca Equities Rule 1.1(n) for definition of ``ETP 
Holders.''
    \6\ See NYSE Arca Equities Rule 7.31(c)(2).
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II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, NYSE Arca 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 
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 proposes to amend relevant sections of its Fee 
Schedule that apply to orders submitted to the Exchange that are 
affixed with an Open Order Modifier. This filing intends to clarify the 
intentions of the Exchange regarding fees and credits applicable to 
such orders since the introduction of Open Order Modifiers,\7\ and to 
conform the Fee Schedule to its billing practice.
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    \7\ See Securities Exchange Act Release No. 53394 (March 1, 
2006), 71 FR 11696 (March 8, 2006) (SR-PCX-2006-07).
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    NYSE Arca Equities did not intend to offer, nor has it offered, the 
credits normally afforded to orders that provide liquidity within its 
book. According to the amended Fee Schedule, a limit order affixed with 
an Open Order Modifier that executes within the same day on which it 
was entered \8\ will be subject to and eligible for all charges and 
credits currently afforded to limit orders not affixed with an Open 
Order Modifier. However, such orders, or any unexecuted portion 
thereof, that remain eligible for execution beyond the initial trading 
day are not eligible for any credits (e.g., Liquidity Provider Credits) 
when subsequently executed.
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    \8\ Limit orders affixed with an Open Order Modifier may be 
entered during any trading session, but are only eligible for 
execution during the Core Trading Session (9:30 a.m. Eastern Time to 
4:00 p.m. Eastern Time).
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    The Exchange believes this filing to be consistent with its 
practices since the inception of the Open Order Modifiers, and with the 
information available to ETP Holders since their introduction.
2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with 
section 6(b) of the Act \9\ in general and furthers the objectives of 
section 6(b)(4) \10\ 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.
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    \9\ 15 U.S.C. 78f(b).
    \10\ 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 on the proposed rule change were neither solicited 
nor received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The foregoing proposed rule change is subject to section 
19(b)(3)(A)(ii) of the Act \11\ and subparagraph (f)(2) of Rule 19b-4 
thereunder \12\ because it establishes or changes a due, fee, or other 
charge applicable only to a member imposed by a self-regulatory 
organization. Accordingly, the proposal is effective upon Commission 
receipt of the filing. 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.\13\
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    \11\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \12\ 17 CFR 240.19b-4(f)(2).
    \13\ For purposes of calculating the 60-day period within which 
the Commission may summarily abrogate the proposed rule change under 
Section 19(b)(3)(C) of the Act, the Commission considers the period 
to commence on September 17, 2007, the date on which the NYSE Arca 
submitted Amendment No. 1. See 15 U.S.C. 78s(b)(3)(C).
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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-2007-89 on the subject line.

[[Page 54506]]

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-NYSEArca-2007-89. 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 NYSE Arca. 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-NYSEArca-2007-89 and should 
be submitted on or before October 16, 2007.
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    \14\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\14\
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-18819 Filed 9-24-07; 8:45 am]

BILLING CODE 8010-01-P