Document ID: SEC-2008-0041-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations: NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Amending Certain Transaction Fees and Credits
Posted Date: 2008-01-08T05:00Z

[Federal Register: January 8, 2008 (Volume 73, Number 5)]
[Notices]               
[Page 1392-1394]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr08ja08-100]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-57069; File No. SR-NYSEArca-2007-126]

 
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing 
and Immediate Effectiveness of a Proposed Rule Change Amending Certain 
Transaction Fees and Credits

December 31, 2007.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934

[[Page 1393]]

(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that 
on December 11, 2007, NYSE Arca, Inc. (``NYSE Arca'' or ``Exchange'') 
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 prepared substantially by the Exchange. NYSE Arca has 
designated this proposal as one establishing or changing a member due, 
fee, or other charge imposed by the Exchange under Section 
19(b)(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.
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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)(ii).
    \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, through its wholly-owned subsidiary NYSE Arca 
Equities, proposes to amend the section of its Schedule of Fees and 
Charges for Exchange Services (the ``Fee Schedule'') that applies to 
orders submitted by ETP Holders.\5\ While changes to the Fee Schedule 
pursuant to this proposal will be effective upon filing, the changes 
will become operative on January 2, 2008. The text of the proposed rule 
change is available at http://www.nyse.com, the principal offices of 

the Exchange, and the Commission's Public Reference Room.
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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. NYSE Arca 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
    As part of its continuing efforts to enhance participation on the 
Exchange, NYSE Arca Equities proposes to amend certain sections of its 
Fee Schedule that apply to orders submitted for securities listed on 
The NASDAQ Stock Market, LLC (``Nasdaq'') or Tape B listed securities. 
Primarily, these changes will increase the rebate (or credit) earned by 
ETP Holders for providing significant liquidity in Nasdaq-listed 
securities.
    Currently, the credit for round lot orders of Nasdaq-listed 
securities that provide liquidity is $0.002 per share. Pursuant to this 
proposal, for Nasdaq-listed securities, the Exchange will increase the 
$0.002 per share credit to $0.0024 per share if certain volume 
thresholds are met. Specifically, if an ETP Holder (i) transacts an 
average daily share volume per month greater than 30 million shares 
(including transactions that take liquidity, provide liquidity, or 
route to away market centers) and also (ii) provides liquidity an 
average daily share volume per month greater than 15 million, then the 
ETP Holder will earn a credit of $.0024 for its orders that provide 
liquidity.
    Additionally, the Exchange proposes to reduce the fee for round lot 
orders of Tape B listed securities submitted to the Exchange by ETP 
Holders that are subsequently routed away from the Exchange and 
executed by another market center or participant, from $0.004 per share 
to $0.0035 per share.
    While changes to the Fee Schedule pursuant to this proposal will be 
effective upon filing, the changes will become operative on January 2, 
2008.
2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with 
Section 6(b) of the Act \6\ in general, and furthers the objectives of 
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.
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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.

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 proposed rule change has been designated as a fee 
change pursuant to Section 19(b)(3)(A)(ii) of the Act \8\ and Rule 19b-
4(f)(2) \9\ thereunder, because it establishes or changes a due, fee, 
or other change imposed on members by the Exchange. Accordingly, the 
proposal is effective upon filing with the Commission. 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-2007-126 on the subject line.

Paper Comments

     Send paper comments in triplicate to Nancy M. Morris, 
Secretary, Securities and Exchange Commission, Station Place, 100 F 
Street, NE., Washington, DC 20549-1090.

All submissions should refer to File Number SR-NYSEArca-2007-126. 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

[[Page 1394]]

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 publicly available. All submissions should refer to 
File Number SR-NYSEArca-2007-126 and should be submitted on or before 
January 29, 2008.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
Florence E. Harmon,
Deputy Secretary.
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    \10\ 17 CFR 200.30-3(a)(12).
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 [FR Doc. E8-85 Filed 1-7-08; 8:45 am]

BILLING CODE 8011-01-P