Document ID: SEC-2010-1394-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NYSE Arca, Inc.
Posted Date: 2010-09-13T04:00Z

[Federal Register: September 13, 2010 (Volume 75, Number 176)]
[Notices]               
[Page 55624-55625]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr13se10-93]                         

[[Page 55624]]

-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-62843; File No. SR-NYSEArca-2010-81]

 
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change Amending Its Fee 
Schedule

September 3, 2010.
    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 30, 2010, NYSE Arca, Inc. (``NYSEARCA'' or the 
``Exchange'') filed with the Securities and Exchange Commission (the 
``Commission'') the proposed rule change as described in Items I and II 
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.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend the NYSE Arca Equities, Inc. 
Schedule of Fees and Charges for Exchange Services (the ``Schedule''). 
While changes to the Schedule pursuant to this proposal will be 
effective on filing, the changes will become operative on September 1, 
2010. The text of the proposed rule change is available at the 
Exchange, the Commission's Public Reference Room, and http://
www.nyse.com.

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
    Effective September 1, 2010, the Exchange proposes to amend the 
Schedule to modify the fees it charges for all market at-the-close 
(``MOC'') and limit at-the-close (``LOC'') orders executed in the NYSE 
Arca Equities, Inc. closing auction. At each applicable point in the 
Schedule, the per share fee will increase from $0.0007 to $0.0010 for 
MOC and LOC orders executed in the closing auction. The Exchange notes 
that The NASDAQ Stock Market LLC (``NASDAQ'') recently made a similar 
filing increasing the fee that it charges for MOC and LOC orders in its 
closing cross from $0.0007 per share executed to $0.0010 per share 
executed.\4\
---------------------------------------------------------------------------

    \4\ See Securities Exchange Act Release No. 62592 (July 29, 
2010), 75 FR 47053 (August 4, 2010) (SR-NASDAQ-2010-095).
---------------------------------------------------------------------------

    In addition, for each rate level, there will be an increase in the 
per share fee from $0.0007 to $0.00085 for PO and PO+ Orders that are 
(a) in the case of Tape A securities, routed to the New York Stock 
Exchange LLC (``NYSE'') and execute in the opening or closing auction, 
or (b) in the case of Tape B securities, routed to NYSE Amex and 
execute in the opening or closing auction. Also, for each rate level, 
the Exchange proposes to charge a per share fee of $0.0010 for PO and 
PO+ Orders in Tape C securities that are routed to NASDAQ and execute 
in the opening or closing auction.
    The Exchange is eliminating from the Schedule the current fee 
applicable to Tape B securities for orders executed in the Opening or 
Market Order Auction in NYSE Arca primary listed securities.
    Finally, for both Tape A and Tape C securities under Tier 1 rates, 
the fee for taking liquidity from the book will be increased from 
$0.0029 to $0.0030 per share, and the same fee increase will be 
applicable for orders in Tape A and Tape C securities routed to any 
away market centers other than the NYSE. The Tier 1 rebate for adding 
liquidity in Tape A and Tape C securities will remain unchanged at 
$0.0030 per share, so the foregoing change will represent a move to 
flat pricing.
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''),\5\ in general, and Section 6(b)(4) of the Act,\6\ 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 
fees, as all similarly situated member organizations will be charged 
the same amount and access to the Exchange's market is offered on fair 
and non-discriminatory terms. Further, with respect to the proposed fee 
change for MOC and LOC orders that are executed in the Exchange's 
closing transaction, a competing exchange also recently implemented a 
similar fee change for its market participants, as described above.
---------------------------------------------------------------------------

    \5\ 15 U.S.C. 78f(b).
    \6\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

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) \7\ of the Act and subparagraph (f)(2) of Rule 19b-
4 \8\ thereunder, because it establishes a due, fee, or other charge 
imposed by the NYSE Arca.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78s(b)(3)(A).
    \8\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of the proposed rule 
change, the Commission summarily may temporarily suspend 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:

[[Page 55625]]

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-2010-81 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-2010-81. 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 Web site 
viewing and printing 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.\9\ 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-2010-81 and should be submitted on or before October 4, 2010.
---------------------------------------------------------------------------

    \9\ The text of the proposed rule change is available on the 
Commission's Web site at http://www.sec.gov.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
---------------------------------------------------------------------------

    \10\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-22702 Filed 9-10-10; 8:45 am]
BILLING CODE 8010-01-P