Document ID: SEC-2009-1025-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Implementing the Schedule of Fees and Charges for Exchange Services
Posted Date: 2009-07-24T04:00Z

[Federal Register: July 24, 2009 (Volume 74, Number 141)]
[Notices]               
[Page 36794-36796]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr24jy09-149]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-60322; File No. SR-NYSEArca-2009-68]

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

July 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 July 10, 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 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 July 13, 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 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    On June 30, 2009 the Exchange filed with the Commission a rule 
change adding four new Self Trade Prevention (``STP'') Modifiers.\6\ 
The new STP functionality allows Equity Trading Permit (``ETP'') 
Holders entering orders into the system to elect to prevent those 
orders from executing against other orders entered into the System by 
the same ETP Holder. Pursuant to this proposal the Exchange seeks to 
add to the Schedule a credit and fee for orders returned to an ETP 
Holder using the STP Modifiers.
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    \6\ See Securities and Exchange Act Release No. 60191 (June 30, 
2009), 74 FR 32660 (July 8, 2009)(Notice of Filing and Immediate 
Effectiveness for NYSEArca-2009-58).
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    ETP Holders entering an incoming order with either the STP Cancel 
Both (``STPC'') or the STP Decrement and Cancel (``STPD'') Modifier 
will be charged $0.0030 per share for orders

[[Page 36795]]

returned to the ETP Holder. The ETP Holders [sic] corresponding resting 
order marked with any of the STP Modifiers that interacts with an 
incoming STPC or STPD Modifier will be credited $0.0029 per share for 
orders returned to the ETP Holder. ETP Holders entering an incoming 
order with either the STP Cancel Newest (``STPN'') or the STP Cancel 
Oldest (``STPO'') Modifier will not be credited or charged any fees. 
Similar to the way in which STP Modifiers interact, the incoming order 
with an STP Modifier controls the fees charged.
    Example 1:

--A STPN (or STPO) Order is entered by an ETP Holder and is resting in 
the NYSE Arca Book.
--A STPC (or STPD) Order is subsequently entered by the same ETP Holder 
and is marketable against the STPN (or STPO) Order.
--The ETP Holder is credited $0.0029 per share for the resting STP 
Order and charged $0.0030 per share for the incoming STPC (or STPD) 
Order.

    Example 2:

--A STPC (or STPD) Order is entered by an ETP Holder and is resting in 
the NYSE Arca Book [sic].
--A STPN (or STPO) Order is subsequently entered by the same ETP Holder 
and is marketable against the STPC (or STPD) Order.
--The ETP Holder is not credited or charged a fee for either order 
returned back to the ETP Holder.

    On incoming orders marked with the STPD Modifier, both orders will 
be cancelled back to the ETP Holder if the orders are equivalent in 
size. If the orders are not equivalent in size, the equivalent size 
will be cancelled back to the ETP Holder and the larger order will be 
decremented by the size of the smaller order with the balance remaining 
on the NYSE Arca Book. For billing purposes, only the size of the 
portion of the orders cancelled back to the ETP Holder will be charged 
or credited. For example, if an incoming 1000 share STPD Order 
interacts with a resting 200 share STP Order from the same ETP ID, the 
ETP Holder will be credited and charged for the 200 shares that were 
cancelled back.
    On incoming orders marked with the STPC Modifier, the entire size 
of both orders will be cancelled back to ETP Holder. However, for 
billing purposes, incoming orders marked with the STPC Modifier will 
only be charged or credited up to the equivalent size of both orders. 
For example, if an incoming 200 share STPC Order interacts with a 
resting 1000 share STP Order, the ETP Holder will only be charged and 
credited for the equivalent size, which is 200 shares. Similarly, if an 
incoming 1000 share STPC Order interacts with a 200 share resting STP 
Order, the ETP Holder will only be charged and credited for 200 shares.
    The Exchange plans to implement these new fees and credits in 
conjunction with the implementation of this STP functionality scheduled 
for July 13, 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''),\7\ in general, and Section 6(b)(4) of the Act,\8\ 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.
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    \7\ 15 U.S.C. 78f(b).
    \8\ 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 proposed rule change is effective upon filing 
pursuant to Section 19(b)(3)(A) \9\ of the Act and subparagraph (f)(2) 
of Rule 19b-4 \10\ thereunder, because it establishes a due, fee, or 
other charge imposed by NYSE Arca.
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    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 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-2009-68 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-2009-68. 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-2009-68 and should 
be submitted on or before August 14, 2009.

[[Page 36796]]

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.

[FR Doc. E9-17632 Filed 7-23-09; 8:45 am]

BILLING CODE 8010-01-P