Document ID: SEC-2008-0797-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NYSE Arca, Inc.
Posted Date: 2008-06-10T04:00Z

[Federal Register: June 10, 2008 (Volume 73, Number 112)]
[Notices]               
[Page 32778-32779]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr10jn08-92]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-57912; File No. SR-NYSEArca-2008-53]

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

June 3, 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 May 30, 2008, 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\ 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 
orders submitted by ETP Holders.\5\ The Exchange will introduce a new 
pricing tier for Tape B securities of $0.0028 per share (applicable to 
inbound orders executed against orders residing in the Book) and a new 
routing pricing tier of $0.0029 if the ETP Holder (i) transacts an 
average daily share volume per month greater than 20 million shares 
(including transactions that take liquidity, provide liquidity, or 
route to away market centers) and (ii) provides liquidity an average 
daily share volume per month greater than 5 million shares. While 
changes to the Fee Schedule pursuant to this proposal will be effective 
upon filing, the changes will become operative on June 1, 2008. The 
text of the proposed rule change is available at NYSE Arca, the 
Commission's Public Reference Room, and http://www.nyse.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, the Exchange 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. The Exchange has prepared summaries, set forth in 
Sections A, B, and C below, of the most significant aspects of such 
statements.

[[Page 32779]]

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange currently charges a fee of $0.003 per share with 
respect to all inbound orders in Tape B securities (i.e., securities 
not listed on the New York Stock Exchange or Nasdaq) executed against 
orders residing in the Book. The Exchange now intends to introduce a 
new pricing tier for Tape B securities of $0.0028 per share (applicable 
to inbound orders executed against orders residing in the Book) if the 
ETP Holder (i) transacts an average daily share volume per month 
greater than 20 million shares (including transactions that take 
liquidity, provide liquidity, or route to away market centers) and (ii) 
provides liquidity an average daily share volume per month greater than 
5 million shares.
    In addition, the Exchange currently charges a fee of $0.0035 per 
share with respect to all Tape B securities routed away and executed by 
another market center or participant. The Exchange now intends to 
introduce a new routing pricing tier for Tape B securities of $0.0029 
per share if the ETP holder (i) transacts an average daily share volume 
per month greater than 20 million shares (including transactions that 
take liquidity, provide liquidity, or route to away market centers) and 
(ii) provides liquidity an average daily share volume per month greater 
than 5 million shares.
    The Exchange will also clarify certain language contained in the 
Fee Schedule. While changes to the Fee Schedule pursuant to this 
proposal will be effective upon filing, the changes will become 
operative on June 1, 2008.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the provisions of Section 6 of the Act,\6\ in general, and with 
Section 6(b)(4) of the Act,\7\ 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. 
The Exchange believes that the proposed fees are reasonable. The 
proposed rates are part of the Exchange's effort to attract and enhance 
participation on the Exchange, by offering decreased fees where certain 
volume thresholds are satisfied. The Exchange also believes that the 
proposed changes to the Fee Schedule are equitable in that they apply 
uniformly to our Users.
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    \6\ 15 U.S.C. 78f.
    \7\ 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 rule change has become effective pursuant to Section 
19(b)(3)(A)(ii) of the Act \8\ and subparagraph (f)(2) of Rule 19b-4 
thereunder \9\ 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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    \8\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \9\ 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-2008-53 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-2008-53. 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 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-2008-53 and should 
be submitted on or before July 1, 2008.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-12956 Filed 6-9-08; 8:45 am]

BILLING CODE 8010-01-P