Document ID: SEC-2009-1174-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Implementing the Schedule of Fees and Charges for Exchange Services
Posted Date: 2009-08-19T04:00Z

[Federal Register: August 19, 2009 (Volume 74, Number 159)]
[Notices]               
[Page 41957-41958]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr19au09-103]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-60495; File No. SR-NYSEArca-2009-72]

 
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change Implementing the 
Schedule of Fees and Charges for Exchange Services

August 13, 2009.
    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 August 3, 2009, NYSE Arca, Inc. (``NYSE Arca'' 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. NYSE Arca filed the proposal pursuant to Section 
19(b)(3)(A) \4\ of the Act and Rule 19b-4(f)(2) \5\ thereunder. 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.
    \4\ 15 U.S.C. 78s(b)(3)(A).
    \5\ 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 ``Schedule''). While changes to 
the Schedule pursuant to this proposal will be effective upon filing, 
the changes will become operative on August 3, 2009. The text of the 
proposed rule change is attached as Ex.5 to the 19b-4 form. A copy of 
this filing is available on the Exchange's Web site at http://
www.nyse.com, at the Exchange's principal office 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 those statements may be examined at 
the places specified in Item IV below. The Exchange has prepared 
summaries, set forth in sections A, B, and C below, of the most 
significant parts of such statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to make multiple changes to its Schedule that 
will take effect on August 3, 2009. A more detailed description of the 
proposed changes follows.
    Closing Auctions:
    The Exchange proposes to change the fee charged for Market-On-Close 
and Limit-On-Close Orders executed in the closing auction from $0.0005 
to $0.0007 per share. This change applies universally throughout the 
Schedule to

[[Page 41958]]

each instance that a fee for Market-On-Close and Limit-On-Close Orders 
is explicitly stated. The Exchange also proposes to add to the Schedule 
a $0.0007 fee for PO+ Market-On-Close and Limit-On-Close Orders routed 
to NYSE Amex. The proposed fees are part of the Exchange's continued 
effort to attract and enhance participation in the Closing Auctions by 
offering attractive rates.
    IOI Credit:
    The Exchange proposes to add a $0.0015 per share credit for each 
IOI that results in an execution in excess of 15 million shares based 
on average daily volume (``ADV'') per month. This new $0.0015 per share 
credit is an incremental credit that only applies to those shares 
executed in excess of 15 million shares ADV. ETP Holders qualifying for 
the Tier 1 IOI credit will now receive a $.0012 per share credit for 
each share up to and including 15 million, and a $0.0015 per share 
credit for each share in excess of 15 million. For example, an ETP 
Holder that sends IOI's to the Exchange resulting in execution with an 
average daily share volume per month equal to 16 million shares will 
receive a $0.0012 credit for the first 15 million shares and a $0.0015 
credit for one million shares (15,000,001 to 16,000,000). The proposed 
rates are part of the Exchange's continued effort to attract and 
enhance participation in the IOI program, by offering attractive 
rebates and volume based incentives.
    Odd-Lot Pricing:
    The Exchange also proposes to eliminate its odd-lot pricing 
structure. Previously the Exchange charged $0.03 per share for odd-lot 
orders executed against orders residing in the book in Tape A and Tape 
B securities, and $0.0035 per share for Tape C securities. The Exchange 
paid a $0.02 per share credit to market makers that executed against an 
odd-lot order. The Exchange also had odd-lot pricing associated with 
odd-lots routed to different market centers. Under this proposal the 
Exchange will eliminate all distinct odd-lot pricing. ETP Holders 
executing odd-lots will now be charged and credited in the same way 
that round-lots are charged and credited. This change will simplify the 
Schedule and treat odd-lots in the same manner as round-lots.
    The Exchange believes the proposed fees are reasonable and 
equitable in that they apply uniformly to all ETP Holders. The proposed 
changes will become operative on August 3, 2009.
    The Exchange notes that it is making technical changes to correct 
the footnote numbering.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the provisions of Section 6 of the Securities Exchange Act of 1934 
(the ``Act''),\6\ in general, and Section 6(b)(4) of the Act,\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 proposed rates are 
part of the Exchange's continued effort to attract and enhance 
participation on the Exchange, by offering attractive rebates for 
liquidity providers and volume-based incentives. The Exchange believes 
that the proposed changes to the Schedule are equitable in that they 
apply uniformly to our Users.
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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

    No written comments were solicited or received with respect to 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) \8\ of the Act and subparagraph (f)(2) of Rule 19b-
4 \9\ thereunder, because it establishes a due, fee, or other charge 
imposed by NYSE Arca on its members.
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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-NYSEArca-2009-72 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-NYSEArca-2009-72. 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 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-NYSEArca-2009-72 and should 
be submitted on or before September 9, 2009.
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    \10\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-19895 Filed 8-18-09; 8:45 am]

BILLING CODE 8010-01-P