Document ID: SEC-2013-0772-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NYSE Arca, Inc.
Posted Date: 2013-04-23T04:00Z

[Federal Register Volume 78, Number 78 (Tuesday, April 23, 2013)]
[Notices]
[Pages 23968-23969]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-09526]

[[Page 23968]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-69389; File No. SR-NYSEArca-013-38]

Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change Amending the NYSE 
Arca Equities Schedule of Fees and Charges for Exchange Services To 
Remove Certain Obsolete Text

April 17, 2013.
    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 April 4, 2013, NYSE Arca, Inc. (the ``Exchange'' or 
``NYSE Arca'') 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. 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 240.19b-4.
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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 NYSE Arca Equities Schedule of 
Fees and Charges for Exchange Services (the ``Fee Schedule'') to remove 
certain obsolete text related to a fee that is no longer charged by the 
Exchange and a credit that is no longer offered by the Exchange. The 
text of the proposed rule change is available on the Exchange's Web 
site at www.nyse.com, at the principal office of the Exchange, 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 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to amend the Fee Schedule to remove certain 
obsolete text related to (i) a designated examining authority (``DEA'') 
fee that is no longer charged by the Exchange and (ii) a ``Liquidity 
Provider Credit'' that is no longer offered by the Exchange. The 
Exchange proposes to implement the fee change immediately.
    Pursuant to Rule 17d-1 of the Act, the Exchange may act as the DEA 
for ETP Holders on NYSE Arca Equities.\4\ The Exchange charges certain 
fees when it performs DEA services, as provided in the Fee Schedule. In 
this regard, the Fee Schedule currently includes a reference to a $75 
one-time registration fee per trader. The Exchange no longer charges 
this particular DEA fee and therefore proposes to remove the obsolete 
text related thereto from the Fee Schedule.\5\
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    \4\ 17 CFR 240.17d-1.
    \5\ The Exchange has not charged this fee since April 2007, 
which corresponds to the elimination of the same $75 one-time 
registration fee per trader on NYSE Arca Options. See Securities 
Exchange Act Release No. 55679 (April 27, 2007), 72 FR 26190 (May 8, 
2007) (SR-NYSEArca-2007-35).
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    The first sentence of Footnote 12 in the Fee Schedule currently 
provides that an ETP Holder that submits certain order types that 
subsequently match against an inbound marketable order will not be 
entitled to receive a Liquidity Provider Credit. However, effective 
July 1, 2008 the Exchange eliminated the Liquidity Provider Credit.\6\ 
Therefore, when the Liquidity Provider Credit was eliminated, the first 
sentence of current footnote 12 became obsolete and so it should have 
been removed. Because it was not, the Exchange proposes to remove the 
obsolete text now by deleting the first sentence in footnote 12 in the 
Fee Schedule.\7\
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    \6\ See Securities Exchange Act Release No. 58006 (June 23, 
2008), 73 FR 36943 (June 30, 2008) (SR-NYSEArca-2008-64). Prior to 
July 1, 2008, the Liquidity Provider Credit was offered to ETP 
Holders for purposes of market data revenue sharing in Tape B 
securities. See Id. At the time of SR-NYSEArca-2008-64, current 
footnote 12 was changed from footnote 9 in the Fee Schedule to 
footnote 8.
    \7\ The Exchange is proposing that the remaining text of 
footnote 12 remain unchanged.
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    The Exchange notes that the proposed change is not otherwise 
intended to address any other issues, and the Exchange is not aware of 
any problems that ETP Holders would have in complying with the proposed 
change.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act,\8\ in general, and furthers the 
objectives of Sections 6(b)(4) and 6(b)(5) of the Act,\9\ in 
particular, because it provides for the equitable allocation of 
reasonable dues, fees, and other charges among its members, issuers and 
other persons using its facilities and does not unfairly discriminate 
between customers, issuers, brokers or dealers.
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    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(4) and (5).
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    The Exchange believes that the proposed change is reasonable 
because it will result in greater specificity and precision within the 
Fee Schedule, which would contribute to reasonably ensuring that the 
fees and credits described therein are clear and accurate. 
Specifically, the proposed change is reasonable because it will remove 
obsolete text from the Fee Schedule related to a DEA fee that is no 
longer charged by the Exchange and a Liquidity Provider Credit that is 
no longer offered by the Exchange. The Exchange also believes that the 
proposed change is equitable and not unfairly discriminatory because 
all readers of the Fee Schedule, including all ETP Holders, would 
benefit from the increased specificity that this proposed change would 
provide.

 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. The proposed change is not 
designed to address any competitive issues. Rather, the proposed change 
is designed to provide greater specificity and precision within the Fee 
Schedule, which would contribute to reasonably ensuring that the fees 
and credits described therein are clear and accurate.

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)\10\ of the Act and

[[Page 23969]]

subparagraph (f)(2) of Rule 19b-4 \11\ thereunder, because it 
establishes a due, fee, or other charge imposed by NYSE Arca.
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    \10\ 15 U.S.C. 78s(b)(3)(A).
    \11\ 17 CFR 240.19b-4(f)(2).
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    At any time within 60 days of the filing of such proposed rule 
change, the Commission summarily may temporarily suspend 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. If the Commission 
takes such action, the Commission shall institute proceedings under 
Section 19(b)(2)(B) \12\ of the Act to determine whether the proposed 
rule change should be approved or disapproved.
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    \12\ 15 U.S.C. 78s(b)(2)(B).
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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 email to rule-comments@sec.gov. Please include 
File Number SR-NYSEArca-2013-38 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-2013-38. This 
file number should be included on the subject line if email 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 Web site 
viewing and printing in the Commission's Public Reference Room on 
official business days between the hours of 10:00 a.m. and 3:00 p.m. 
Copies of such filing also will be available for inspection and copying 
at the principal offices of NYSE. 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-2013-38, and should be submitted on or before 
May 14, 2013.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\13\
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    \13\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-09526 Filed 4-22-13; 8:45 am]
BILLING CODE 8011-01-P