Document ID: SEC-2007-0550-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: NYSE Arca, Inc.
Posted Date: 2007-04-13T04:00Z

[Federal Register: April 13, 2007 (Volume 72, Number 71)]
[Notices]               
[Page 18716-18718]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr13ap07-93]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-55596; File No. SR-NYSEArca-2007-30]

 
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change Amending Fees for 
Transactions in Listed and Nasdaq Securities Priced Less Than One 
Dollar

April 6, 2007.
    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 March 22, 2007, NYSE Arca, Inc. (``NYSE Arca'' or ``Exchange''), 
through its wholly owned subsidiary NYSE Arca Equities, Inc. (``NYSE 
Arca Equities''), 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. NYSE Arca has filed the proposal pursuant to Section 
19(b)(3)(A) of the Act \3\ and Rule 19b-4(f)(2) thereunder,\4\

[[Page 18717]]

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

    The Exchange proposes to amend the section of its Schedule of Fees 
and Charges for Exchange Services (``Fee Schedule'') that applies to 
transactions by ETP Holders \5\ to add a pricing structure for listed 
and Nasdaq securities priced less than one dollar. The text of the 
proposed rule change is available at NYSE Arca, the Commission's Public 
Reference Room, and http://www.nysearca.com.

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    \5\ See NYSE Arca Equities Rule 1.1(n).
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II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, NYSE Arca 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 these statements may be examined at the places specified in 
Item IV below. NYSE Arca 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 proposes to amend the section of its Fee Schedule that 
applies to transactions by ETP Holders to add a separate pricing 
structure for listed and Nasdaq securities priced less than one dollar 
($1.00) consistent with Rule 610(c) of Regulation NMS.\ 6\ The Exchange 
intends to implement these changes to the Fee Schedule pursuant to this 
proposal immediately upon filing.
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    \6\ 17 CFR 242.610(c).
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    The Fee Schedule currently provides that ETP Holders are charged 
between $0.001 per share and $0.003 per share for round-lot 
transactions in NYSE-listed and Nasdaq securities that execute against 
orders residing on the NYSE Arca Book. ETP Holders are charged $0.03 
per share for listed securities and $0.004 per share for Nasdaq 
securities for odd-lot orders that execute against orders residing on 
the NYSE Arca Book. Similarly, ETP Holder orders that route to any away 
market center or participant and are executed are charged between 
$0.001 per share and $0.03 per share, dependent upon the away market 
center or participant, the type of security, and whether the 
transaction was for a round or odd-lot.
    The Exchange proposes to amend the Fee Schedule to (i) clarify that 
these fees will remain unchanged for listed and Nasdaq securities 
priced greater than or equal to $1.00, and (ii) add a separate, 
distinct pricing structure for listed and Nasdaq securities priced less 
than $1.00, pursuant to Rule 610(c) of Regulation NMS, and consistent 
with the recent fee announcement \7\ by The NASDAQ Stock Market LLC. 
Specifically, the Exchange proposes to implement a fee of 0.1% of the 
total dollar value for all round and odd-lot transactions of ETP 
Holders that execute against orders residing on the NYSE Arca Book for 
listed or Nasdaq securities priced less than $1.00, and shall impose a 
fee of 0.3% of the total dollar value for orders of listed and Nasdaq 
securities priced less than $1.00 that route and are executed with any 
away market center or participant. The Exchange will not provide a 
rebate (credit) to ETP Holders for any transactions in securities 
priced less than $1.00.
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    \7\ See Securities Exchange Act Release No. 55576 (April 3, 
2007) (SR-NASDAQ-2007-026); see also NASDAQ Head Trader Alert 
2007-065: NASDAQ Announces Pricing Change for Non-NASDAQ 
Listed Executions Under $1 (March 21, 2007) (announcing an execution 
fee of 0.1%, or 10 basis points, for non-NASDAQ securities with a 
share price below $1.00).
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act,\8\ in general, and furthers the 
objectives of Section 6(b)(4) of the Act,\9\ in particular, in that it 
is intended to provide for the equitable allocation of reasonable dues, 
fees, and other charges among its members and other persons using its 
facilities.
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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

    The Exchange does not believe that the proposed rule change will 
result in 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 either solicited or received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A)(ii) of the Act \10\ and subparagraph (f)(2) of Rule 19b-4 
thereunder \11\ because it establishes or changes a due, fee, or other 
charge applicable only to a member imposed by the self-regulatory 
organization. Accordingly, the proposal is effective upon Commission 
receipt of the filing. 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-2007-30 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-NYSEArca-2007-30. 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

[[Page 18718]]

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. Copies of the filing also will be available for 
inspection and copying at the principal office of NYSE Arca. 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-2007-30 and should 
be submitted on or before May 4, 2007.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\12\
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    \12\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E7-6959 Filed 4-12-07; 8:45 am]

BILLING CODE 8010-01-P