Document ID: SEC-2009-1607-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending Its Fee Schedule
Posted Date: 2009-11-13T05:00Z

[Federal Register: November 13, 2009 (Volume 74, Number 218)]
[Notices]               
[Page 58668-58670]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr13no09-102]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-60944; File No. SR-NYSEArca-2009-99]

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

November 5, 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 October 29, 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

[[Page 58669]]

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 November 2, 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, 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
    In an effort to enhance participation on the Exchange and to offer 
increased liquidity to its Users,\6\ the Exchange proposes to add new 
transaction credits stemming from the use of Tracking Orders. The 
Exchange also proposes to cap monthly payments stemming from the use of 
Self Trade Prevention modifiers. These changes will be effective 
November 2, 2009. A more detailed description of the proposal follows.
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    \6\ See NYSE Arca Equities Rule 1.1(yy).
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    Currently, there are no rates specifically related to the use of 
Tracking Orders.\7\ In order to incentivize the use of this order type 
and attract liquidity to NYSE Arca, the Exchange proposes to introduce 
three volume-based tiers, offering credits to all ETP Holdings who use 
Tracking Orders that result in executions on the Exchange.
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    \7\ See NYSE Arca Equities Rule 7.31(f). Tracking Orders are un-
displayed limit orders eligible for execution at the NBBO in the 
Tracking Order Process.
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    Tracking Order Tier 1 offers ETP Holders a credit of $0.12 per 100 
shares where their Tracking Orders result in executions on the Exchange 
with an average daily share volume (``ADV'') per month greater than or 
equal to 5 million shares. In addition, the Exchange will offer ETP 
Holders a credit of $0.15 per 100 shares for each Tracking Order that 
results in an execution in excess of 15 million shares.\8\
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    \8\ This incremental credit rebates ETP Holders $.0012 for each 
share up to and including 15 million ADV, and $0.0015 for each share 
in excess of 15 million ADV.
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    Tracking Order Tier 2 offers ETP Holders a credit of $0.10 per 100 
shares where their Tracking Orders result in executions on the Exchange 
with an average daily share volume per month between 2.5 million shares 
and 4,999,999 shares.
    Tracking Order Tier 3 offers ETP Holders a credit of $0.05 per 100 
shares where their Tracking Orders result in executions on the Exchange 
with an average daily share volume per month between 1 million shares 
and 2,499,999 shares.
    In addition, the Exchange is proposing to cap the net payment of 
credits and fees stemming from an ETP Holder's use of Self Trade 
Prevention Modifiers\9\ at a net total of $25,000 per month. This cap 
will apply uniformly to all ETP Holders.
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    \9\ See NYSE Arca Equities Rule 7.31(qq).
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    The proposed changes to the Schedule are part of the Exchange's 
continued effort to attract and enhance participation on the Exchange, 
by offering attractive rates and rebates with volume-based incentives. 
By introducing these tiered credits, the Exchange is enhancing the 
incentive to participate on the Exchange through the use of Tracking 
Orders, as well as provide additional liquidity to the marketplace. 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 November 2, 2009.
Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the provisions of Section 6 [sic] of the Securities Exchange Act 
of 1934 (the ``Act''),\10\ in general, and Section 6(b)(4) of the 
Act,\11\ 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 
changes to the Schedule are part of the Exchange's continued effort to 
attract and enhance participation on the Exchange, by offering 
attractive rates and rebates with volume-based incentives. The Exchange 
believes that the proposed changes to the Schedule are equitable in 
that they apply uniformly to all Users.
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    \10\ 15 U.S.C. 78f(b).
    \11\ 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) \12\ of the Act and subparagraph (f)(2) of Rule 
19b-4 \13\ thereunder, because it establishes a due, fee, or other 
charge imposed by NYSE Arca on its members.
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    \12\ 15 U.S.C. 78s(b)(3)(A).
    \13\ 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-2009-99 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-2009-99. 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

[[Page 58670]]

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-2009-99 and should be submitted 
on or before December 4, 2009.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\14\
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    \14\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-27253 Filed 11-12-09; 8:45 am]

BILLING CODE 8011-01-P