Document ID: SEC-2008-1446-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NYSE Arca, Inc.
Posted Date: 2008-10-21T04:00Z

[Federal Register: October 21, 2008 (Volume 73, Number 204)]
[Notices]               
[Page 62579-62581]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr21oc08-117]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-58770; File No. SR-NYSEArca-2008-103]

 
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 That Apply to the 
Primary Only Plus Order

October 10, 2008.
    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 September 29, 2008, NYSE Arca, Inc. (``NYSE Arca'' 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 Exchange. 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 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).
    \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

    NYSE Arca proposes to add new fees to the Schedule of Fees and 
Charges for Exchange Services (the ``Schedule'') that apply to the new 
Primary Only Plus (``PO+'') Order type. The text of the proposed rule 
change is available at NYSE Arca, 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 Exchange included statements

[[Page 62580]]

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 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 recently filed for approval by the Commission a new 
order type known as the PO+ Order.\5\ The PO+ Order is an enhanced 
version of the Primary Only (``PO'') Order, which is a market or limit 
order that is routed to the primary, listing market, without sweeping 
the NYSE Arca book.\6\ PO Orders are a form of directed order, and are 
only eligible for participation in the primary listing market's 
opening. The PO+ Order allows Equity Trading Permit (``ETP'') Holders 
to route an order to the primary listing market at any time during the 
primary market's trading session. The PO+ Order is intended to provide 
additional flexibility and increased system functionality for NYSE Arca 
Users \7\ by modifying the operability and eligibility of PO Orders.
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    \5\ See Securities Exchange Act Release No. 58431 (August 27, 
2008), 73 FR 51681 (September 4, 2008) (notice of filing for SR-
NYSEArca-2008-90).
    \6\ See NYSE Arca Equities Rule 7.31(x).
    \7\ See NYSE Arca Equities Rule 1.1(yy) for the definition of 
``User.'' Under Rule 1.1(yy), the term User means any ETP Holder or 
Sponsored Participant who is authorized to obtain access to the NYSE 
Marketplace pursuant to NYSE Arca Equities Rule 7.29. PO Orders, 
similar to all other order types offered by the Exchange, are 
available only to authorized Users.
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    In anticipation of the approval of the PO Plus Order type filing by 
the Commission, the Exchange proposes to add new fees to the Schedule. 
The proposal establishes a fee of $0.0008 for PO+ Orders routed to the 
NYSE during the core trading session that remove liquidity from the 
NYSE Order Book. No fee will be charged for Primary Only (``PO'') and 
PO+ Orders routed to the NYSE for participation in the opening. 
Additionally, there will be no fee charged for PO+ Orders routed to the 
NYSE that provide liquidity the NYSE Order Book. The Exchange proposes 
a $0.0004 per share fee for PO+ Market-On-Close and Limit-On-Close 
Orders routed to the NYSE. Finally, the Exchange proposes a $0.0004 per 
share fee for odd-lots and partial odd-lots in PO Orders and PO+ Orders 
routed to the NYSE.
    The Exchange believes that the proposed fees will foster additional 
flexibility and increased system functionality for NYSE Arca Users. The 
Exchange further believes that the proposed fees and credits are 
reasonable and that the proposed changes to the Schedule are equitable 
in that they apply uniformly to our Users.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the requirements of Section 6(b) of the Act,\8\ in general, and 
Section 6(b)(4) of the Act,\9\ 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 proposed fees and credits are 
reasonable. The proposed rates further the objectives of Regulation NMS 
by promoting competition and granting fair and equal access to all 
exchange participants. The Exchange also believes that the proposed 
changes to the Schedule are equitable in that they apply uniformly to 
our Users.
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    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    NYSE Arca 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 proposed rule change is effective upon filing 
pursuant to Section 19(b)(3)(A)(ii) of the Act \10\ and Rule 19b-
4(f)(2) thereunder,\11\ because it establishes or changes a due, fee, 
or other charge applicable only to a member imposed by the Exchange. 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.
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    \10\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \11\ 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-NYSEArca-2008-103 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-NYSEArca-2008-103. 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, on official 
business days between the hours of 10 a.m. and 3 p.m. Copies of such 
filing will also 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 No. SR-NYSEArca-2008-103 and should be submitted on or before 
November 12, 2008.

[[Page 62581]]

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12\
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    \12\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-24739 Filed 10-20-08; 8:45 am]

BILLING CODE 8011-01-P