Document ID: SEC-2007-1781-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: New York Stock Exchange, LLC
Posted Date: 2007-12-28T05:00Z

[Federal Register: December 28, 2007 (Volume 72, Number 248)]
[Notices]               
[Page 73951-73953]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr28de07-199]                         

-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-57006; File No. SR-NYSE-2007-116]

 
Self-Regulatory Organizations; New York Stock Exchange, Inc.; 
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change 
by the New York Stock Exchange LLC Relating to NYSE Rule 300 (Trading 
Licenses)

December 20, 2007.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ and Rule 19b-4 thereunder,\2\

[[Page 73952]]

notice is hereby given that on December 18, 2007, the New York Stock 
Exchange, Inc. (``NYSE'' or ``Exchange'') filed with the Securities and 
Exchange Commission (``Commission'') the proposed rule changes as 
described in Items I, II, and III below, which items have been 
substantially prepared by the NYSE. NYSE has designated the proposed 
rule change as one establishing or changing a due, fee, or other 
charge, pursuant to Section 19b(3)(A)(ii) 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.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \4\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange is proposing to: (i) amend NYSE Rule 300 (Trading 
Licenses) to charge an annualized rate of $40,000 per trading license 
purchased during the annual offering; and (ii) reinstate the fee 
related to the approval of a pre-qualified substitute employee.
    The text of the proposed rule change is available on the Exchange's 
Web site (http://www.nyse.com), at the Exchange's Office of the 

Secretary, 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 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 NYSE 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
    Through this filing, the Exchange seeks to amend section (b) of 
NYSE Rule 300 to charge a fixed price of $40,000 for each trading 
license purchased in the annual offering for the following calendar 
year and make conforming changes to section (d) of the rule which 
pertains to trading licenses purchased after the annual offering. The 
Exchange further proposes to create subsection (b)(i) to NYSE Rule 300 
to provide that a member organization that wishes to maintain for the 
following calendar year the same number of trading licenses that they 
currently hold will be charged the fixed price of $40,000 per trading 
license by the Exchange. Additionally, the Exchange proposes to 
reinstate the fee related to the approval of a pre-qualified substitute 
employee.
    Currently, section (b) of NYSE Rule 300 provides that in each 
annual offering, up to 1366 trading licenses for the following calendar 
year are to be sold at the fixed price of $50,000 per trading license. 
Section (d) of the rule governs the sale of trading licenses any time 
after the annual offering. It provides that the Exchange will sell 
additional trading licenses expiring at the end of the calendar year at 
a price of $55,000, prorated for the time remaining in the year. The 
price of $55,000 encompasses a premium of $5,000 or 10% above the fixed 
price of $50,000. No additional trading licenses will be sold by the 
Exchange if such sale would cause the number of trading licenses to 
exceed 1366.
    The Exchange proposes to amend section (b) of the rule to reduce 
the fixed price from $50,000 to $40,000. Proposed section (b) of the 
rule will now provide that in each annual offering, up to 1366 trading 
licenses for the following calendar year will be sold annually at a 
price of $40,000 per trading license. The Exchange also proposes to 
create a new subsection (b)(i) to state that a member organization that 
holds a number of trading licenses in the current calendar year and 
wishes to maintain that same number of trading licenses in the 
following calendar year shall be presumed to have applied for the same 
number of trading licenses that it currently holds and will be charged 
by the Exchange the fixed price of $40,000 per trading license pursuant 
to section (b) and subject to the provisions of section (c) of the 
rule.\5\ Thus, a member organization that holds 5 trading licenses in 
the calendar year 2007 and wishes to maintain 5 trading licenses in 
calendar year 2008 will be charged $40, 000 per trading license for the 
5 trading licenses.\6\ Should the member organization subsequently 
decide to purchase additional trading licenses, section (d) of the rule 
as proposed will apply.
---------------------------------------------------------------------------

    \5\ Section (c) of the rule describes the allocation process of 
trading licenses among member organizations during the annual 
offering.
    \6\ The Exchange has filed separately to amend NYSE Rule 325 to 
eliminate the requirement of section (e) which requires any member 
organization that employs individuals to execute orders on the 
Exchange Floor provide evidence of financial responsibility in the 
amount of $100,000 for each such individual. See SR-NYSE-2007-108.
---------------------------------------------------------------------------

    The Exchange further seeks to make a conforming amendment to 
section (d) to adjust the fixed price and then calculate the 
appropriate premium accordingly. Proposed section (d) of the rule will 
therefore be amended to state that after the annual offering and 
anytime thereafter during the following calendar year, the Exchange 
shall sell additional trading licenses at a price of $44,000. The 
$44,000 reflects a premium $4,000 which is 10% above the fixed price of 
$40,000 per trading license, pro-rated to reflect the portion of the 
year during which the trading license will be outstanding. The Exchange 
will not sell additional licenses if such sale would cause the number 
of licenses to exceed 1366.
    On or about October 2007,\7\ the Exchange filed with the Securities 
and Exchange Commission (``Commission'') an amendment to the Exchange's 
2007 Price List to waive for the remainder of 2007, effective 
retroactively on September 1, 2007, the $5,000 fee with respect to the 
approval of a pre-qualified substitute employee.\8\
---------------------------------------------------------------------------

    \7\ See Securities Exchange Act Release No. 56607 (October 3, 
2007), 72 FR 57624 (October 10, 2007) (SR-NYSE-2007-91).
    \8\ According to SR-NYSE-2007-91, a pre-qualified substitute 
employee is an employee of a member organization who has been 
approved to work on the Exchange trading floor and can be assigned 
to work on the trading floor at anytime that the member organization 
has a trading license available for use.
---------------------------------------------------------------------------

    Prior to the waiver of this fee in September 2007, the $5,000 fee 
was billed to the member organization who was the new employer of (i) 
any new member or pre-qualified substitute not transferring from 
another member organization, (ii) any approved member who changes 
employment and continues as a member with that member organization, or 
(iii) any pre-qualified substitute who changes employment and continues 
as a pre-qualified substitute with that member organization. This fee 
reflects the costs to the Exchange of processing such new memberships 
or transfers including checking that the member organization has a 
license for its new employee or approving the purchase of a license, 
ensuring that the member is not subject to any regulatory restriction, 
checking that the member's new employer has put in place the required 
financial guarantee, and issuing or resetting the member's badge and 
handheld.

[[Page 73953]]

    The Exchange proposes through this filing to re-instate this fee in 
its entirety starting in the calendar year 2008. Although this proposed 
rule change is immediately effective, the re-instatement of this fee 
will not be implemented until January 1, 2008. The price and the terms 
of the $5,000 fee will remain the same.
2. Statutory Basis
    The Exchange believes that the basis for the proposed rule change 
is the requirement under Section 6(b)(4) of the Act \9\ 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.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

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

    The Exchange has neither solicited nor received written comments on 
the proposed rule change.

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) \10\ of the Act and subparagraph (f)(2) \11\ thereunder 
because it establishes or changes a due, fee, or other charge. 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.
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \11\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

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-NYSE-2007-116 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-NYSE-2007-116. 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 such 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-NYSE-2007-116 and should be 
submitted on or before January 18, 2008.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12 \
---------------------------------------------------------------------------

    \12\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-25188 Filed 12-27-07; 8:45 am]

BILLING CODE 8011-01-P