Document ID: SEC-2009-1496-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending Its Schedule of Fees and Charges for Exchange Services
Posted Date: 2009-10-22T04:00Z

[Federal Register: October 22, 2009 (Volume 74, Number 203)]
[Notices]               
[Page 54612-54613]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr22oc09-104]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-60834; File No. SR-NYSEArca-2009-88]

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

October 16, 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 September 30, 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 October 1, 2009. 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,

[[Page 54613]]

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 changes to its Schedule that will 
take effect on October 1, 2009. A more detailed description of the 
proposed changes follows.
    PO and PO+ Orders routed to Amex:
    The Exchange proposes to add a new rate for PO and PO+ orders 
(collectively ``PO Orders'') routed to Amex in Tape B securities. The 
Exchange will pay a $0.0030 per share credit for PO Orders routed to 
Amex that provide liquidity to the NYSE Amex Book. The Exchange will 
also charge a fee of $0.0025 per share for PO Orders routed to Amex 
that remove liquidity from the NYSE Amex Book. These fees will mirror 
the inverted pricing available on Amex, also scheduled to become 
effective on October 1, 2009.
    Auction Orders:
    The Exchange also proposes to charge $0.0007 for Market-On-Close 
(``MOC'') and Limit-On-Close (``LOC'') orders executed in the Closing 
Auction in all Tape A and Tape C securities. The proposed rate is 
applicable to all tiers and basic rate pricing. This brings the rate in 
line with the current rate charged for MOC/LOC orders executed in Tape 
C ETF and ETNs. The Exchange also proposes to charge $0.0007 for PO 
Orders routed to the New York Stock Exchange (``NYSE'') and NYSE Amex 
that execute in the opening auction. This brings the rate in line with 
the current rate charged for PO Orders routed to the NYSE or NYSE Amex 
that execute in the closing auction, and is applicable to all tiered 
and basic rate pricing levels. The Exchange further proposes to charge 
$0.0007 per share for orders executed in the Opening or Market Order 
Auction in NYSE Arca primary listed securities. This brings the rate in 
line with the current rate charged for MOC and LOC orders executed in 
the Closing Auction in NYSE Arca primary listed securities, and is 
applicable to all tiered and basic rate pricing levels.
    Finally, the Exchange proposes to clarify that the rebate paid to 
Lead Market Makers for orders that provide liquidity to the Book will 
only apply to displayed liquidity. This is consistent with the current 
practice and simply adds clarity to the Schedule.
    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 October 1, 2009.
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-2009-88 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-2009-88. 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-2009-88 and should 
be submitted on or before November 12, 2009.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-25429 Filed 10-21-09; 8:45 am]

BILLING CODE 8011-01-P