Document ID: SEC-2009-1605-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending Its Schedule of Fees and Charges for Exchange Services
Posted Date: 2009-11-13T05:00Z

[Federal Register: November 13, 2009 (Volume 74, Number 218)]
[Notices]               
[Page 58664-58665]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr13no09-99]                         

[[Page 58664]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-60945; File No. SR-NYSEArca-2009-97]

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

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 26, 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 240.19-b4.
    \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 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
    The Exchange proposes to reduce the volume levels and rates for 
Tier 1 and Tier 2 effective November 2, 2009. A more detailed 
description of the proposed changes follows.
Tier 1
    Currently Tier 1 rates are applied to ETP Holders and Market Makers 
that provide liquidity on the Exchange with an average daily volume 
(``ADV'') per month of 30 million shares and transact a total ADV per 
month of 90 million shares (includes both adding and removing). Under 
this proposal Tier 1 rates will be applied to ETP Holders and Market 
Makers that provide liquidity on the Exchange with an ADV per month of 
25 million shares and transact a total ADV per month of 80 million 
shares. The Exchange will also lower both the rebate for adding 
liquidity and the fee for removing liquidity. Currently, the rebate for 
adding liquidity is set at $0.0030 per share, and the fee for removing 
liquidity is set at $0.0030 per share. Under this proposal the rebate 
for adding liquidity will be $0.0027 and the fee for removing liquidity 
will be $0.0027.
Tier 2
    Currently Tier 2 rates are applied to ETP Holders and Market Makers 
that provide liquidity on the Exchange with an ADV per month of 20 
million shares and transact a total ADV per month of 60 million shares. 
Under this proposal Tier 2 rates will be applied to ETP Holders and 
Market Makers that provide liquidity on the Exchange with an ADV of 15 
million shares and transact a total ADV per month of 50 million shares. 
The Exchange will also lower both the rebate for adding liquidity and 
the fee for removing liquidity. Currently, the rebate for adding 
liquidity is set at $0.0028 per share, and the fee for removing 
liquidity is set at $0.0030 per share. Under this proposal the rebate 
for adding liquidity will be $0.0026 and the fee for removing liquidity 
will be $0.0028.
    The Exchange recognizes that volumes in November and December can 
be seasonally lighter during the holidays, and is therefore reducing 
the Tier 1 and Tier 2 volume requirements to qualify for the Exchange's 
best rates.
Provide Tier
    The Exchange also plans to implement a new Provide Tier. The 
Provide Tier will be applied to ETP Holders and Market Makers that 
transact an average daily share volume per month greater than 35 
million shares in transactions that provide displayed liquidity to the 
Exchange. For qualifying customers the Exchange will pay a rebate of 
$0.0027 per share for transactions that add liquidity in Tape A and 
Tape C securities. Basic Rate pricing will apply for removing liquidity 
unless tiered rate volume levels are obtained. For example, firms 
qualifying for both the Provide Tier and Tier 2 will receive a $0.0027 
rebate for providing liquidity and the Tier 2 rate of $0.0028 for 
removing liquidity.
    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 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.
2. 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''),\6\ in general, and Section 6(b)(4) of the 
Act,\7\ 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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    \6\ 15 U.S.C. 78f(b).
    \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.

[[Page 58665]]

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) \8\ of the Act and subparagraph (f)(2) of Rule 19b-
4 \9\ thereunder, because it establishes a due, fee, or other charge 
imposed by NYSE Arca on its members.
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    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 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-2009-97 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-2009-97. 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-2009-97 and should 
be submitted on or before December 4, 2009.

    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,
Deputy Secretary.
[FR Doc. E9-27254 Filed 11-12-09; 8:45 am]

BILLING CODE 8011-01-P