Document ID: SEC-2009-0021-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NYSE Arca, Inc.,
Posted Date: 2009-01-06T05:00Z

[Federal Register: January 6, 2009 (Volume 74, Number 3)]
[Notices]               
[Page 488]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr06ja09-82]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-59161; File No. SR-NYSEArca-2008-118]

 
Self-Regulatory Organizations; NYSE Arca, Inc.; Order Approving 
Proposed Rule Change Amending Its Schedule of Fees and Charges for 
Exchange Services

December 24, 2008.

I. Introduction

    On November 3, 2008, NYSE Arca, Inc. (``Exchange'' or ``NYSE 
Arca'') filed with the Securities and Exchange Commission 
(``Commission'') pursuant to Section 19(b)(1) of the Securities 
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a 
proposed rule change to amend its Schedule of Fees and Charges for 
Exchange Services (``Schedule of Fees''). The proposed rule change was 
published for comment in the Federal Register on November 24, 2008.\3\ 
The Commission received no comment letters on the proposed rule change. 
This order approves the proposed rule change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 58945 (November 13, 
2008), 73 FR 71072.
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II. Description of the Proposed Rule Change

    The Exchange has proposed to amend its Schedule of Fees to charge 
the same amount for Principal Orders (``P Orders'') and Principal 
Acting As Agent Orders (``P/A Orders'') (collectively, ``Linkage 
Orders'') in foreign currency options (``FCO'') as they currently 
charge for Linkage orders in issues included in the Penny Pilot. The 
Exchange recently amended its rules to enable the Exchange to list and 
trade FCOs.\4\ These rules permit FCOs to be quoted and traded in one 
cent increments. Presently, the Exchange charges $0.45 for all 
electronically executed Linkage Orders in Penny Pilot issues.\5\ The 
Exchange is proposing to similarly charge $0.45 for all electronically 
executed Linkage Orders in FCOs.
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    \4\ See Securities Exchange Act Release No. 58800 (October 16, 
2008), 73 FR 63539 (October 24, 2008) (SR-NYSEArca-2008-109).
    \5\ The Exchange may trade option contracts in one cent 
increments in certain approved issues as part of the Penny Pilot, 
through March 27, 2009. See Securities Exchange Act Release No. 
56568 (September 27, 2007), 72 FR 56422 (October 3, 2007).
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III. Discussion and Commission's Findings

    After careful review, the Commission finds that NYSE Arca's 
proposal to amend its Schedule of Fees and Charges for Exchange 
Services is consistent with the Act and the rules and regulations 
thereunder applicable to a national securities exchange.\6\ In 
particular, the Commission finds that the proposal is consistent with 
Section 6(b)(4) of the Act,\7\ which requires that an exchange have 
rules that 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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    \6\ In approving this proposed rule change, the Commission has 
considered the proposed rule's impact on efficiency, competition, 
and capital formation. See 15 U.S.C. 78c(f).
    \7\ 15 U.S.C. 78f(b)(4).
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    Under the current Schedule of Fees, NYSE Arca charges 
electronically executed FCO orders the fee rate of $.50 for Linkage 
Orders submitted through the Options Linkage. The Exchange proposed to 
lower the charge to $.45 for all electronically executed Linkage Orders 
in FCOs.
    The Commission notes that the $.45 fee rate for electronically 
executed FCOs orders that take liquidity has been in place in the non-
Linkage context since October 2008.\8\ In addition, the Commission 
notes that the Options Linkage fees are assessed pursuant to a pilot 
scheduled to end on July 31, 2009 and that the Commission is continuing 
to evaluate whether such fees are appropriate.
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    \8\ See Securities Exchange Act Release No. 58875 (October 29, 
2008), 73 FR 65916 (November 5, 2008) (SR-NYSEArca-2008-117).
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    For the foregoing reasons, the Commission believes that the 
proposal to amend the fees the Exchange charges for Linkage Orders in 
FCOs is consistent with the Act.
    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\9\ that the proposed rule change (SR-NYSEArca-2008-118) be, and it 
hereby is, approved.
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    \9\ 15 U.S.C. 78s(b)(2).

    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. E8-31346 Filed 1-5-09; 8:45 am]

BILLING CODE 8011-01-P