Document ID: SEC-2007-0391-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: NYSE Arca, Inc.
Posted Date: 2007-03-16T04:00Z

[Federal Register: March 16, 2007 (Volume 72, Number 51)]
[Notices]               
[Page 12653-12654]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr16mr07-114]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-55435; File No. SR-NYSEArca-2007-23]

 
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change Amending Fees for 
Round-Lot Transactions in NYSE-Listed Securities (Other Than ETFs) 
Routed Outside the Book

March 9, 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 February 26, 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 NYSE 
Arca. 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\ 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 
round-lot transactions by ETP Holders \5\ in securities (other than 
exchange-traded funds, or ``ETFs'') listed on the New York Stock 
Exchange LLC (``NYSE''). While changes to the Fee Schedule pursuant to 
this proposal will be effective upon filing, the changes will become 
operative on March 1, 2007. 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 round-lot transactions by ETP Holders in NYSE-listed 
securities (other than ETFs). While changes to the Fee Schedule 
pursuant to this proposal will be effective upon filing, the changes 
will become operative on March 1, 2007.
    The Fee Schedule currently provides that ETP Holders are charged 
$0.001 per share for round-lot transactions in NYSE-listed securities 
that are routed outside the NYSE Arca Book. The Exchange proposes to 
amend its Fee Schedule to increase this fee to $0.003 per share for 
such routed orders executed at any away market center other than the 
NYSE. ETP Holders will continue to be charged $0.001 per share for 
round-lot transactions in NYSE-listed securities that are routed to, 
and executed on, the NYSE. The Exchange proposes to increase this fee 
in direct response to the recent fee announced by The NASDAQ Stock 
Market LLC (``Nasdaq'') of $0.003 per share for orders that remove 
liquidity from the Nasdaq Market Center for NYSE-, Amex- and regional-
listed securities (excluding ETFs), effective January 1, 2007.\6\ 
Specifically, the Exchange proposes this increase so that it may pass 
through to its ETP Holders the increased fee that Nasdaq is charging 
the Exchange for such ETP Holders' transactions.
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    \6\ See Securities Exchange Act Release No. 54742 (November 13, 
2006), 71 FR 67179 (November 20, 2006) (SR-NASD-2006-122). See also 
Securities Exchange Act Release Nos. 54932 (December 13, 2006), 71 
FR 76406 (December 20, 2006) (SR-NASD-2006-132); 55137 (January 19, 
2007), 72 FR 3452 (January 25, 2007) (SR-NASDAQ-2006-068); and 55284 
(February 13, 2007), 72 FR 8231 (February 23, 2007) (SR-NASDAQ-2007-
003).
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2. Statutory Basis
    The Exchange believes that the proposal is consistent with the 
provisions of Section 6(b) of the Act,\7\ in general, and with Section 
6(b)(4) of the Act,\8\ in particular, in that the proposal

[[Page 12654]]

provides 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

    Written comments on the proposed rule change were neither solicited 
nor received.

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

    The foregoing proposed rule change is subject to Section 
19(b)(3)(A)(ii) of the Act \9\ and subparagraph (f)(2) of Rule 19b-4 
thereunder \10\ 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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    \9\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \10\ 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-2007-23 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-2007-23. 
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. 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-2007-23 and should be submitted on or before 
April 6, 2007.

    For the Commission, by the Division of Market Regulation, 
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. E7-4787 Filed 3-15-07; 8:45 am]

BILLING CODE 8010-01-P