Document ID: SEC-2009-0832-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change, as Modified by Amendment No. 1, by NYSE Arca, Inc. Implementing Schedule of Fees and Charges for Exchange Services by adding a Ratio Threshold Fee
Posted Date: 2009-06-19T04:00Z

[Federal Register: June 19, 2009 (Volume 74, Number 117)]
[Notices]               
[Page 29251-29252]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr19jn09-130]                         

[[Page 29251]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-60102; File No. SR-NYSEArca-2009-50]

 
Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change, as Modified by Amendment No. 1, 
by NYSE Arca, Inc. Implementing Schedule of Fees and Charges for 
Exchange Services by adding a Ratio Threshold Fee

June 11, 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 June 1, 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. On June 9, 2009, the Exchange filed Amendment No. 1 to 
the proposed rule change.\4\ 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.
    \4\ In Amendment No. 1, the Exchange corrected a typographical 
error that occurred on the cover sheet that accompanied the 
Exchange's submission on Form 19b-4. Specifically, the Exchange 
conformed its categorization of the statutory provision applicable 
to the proposed rule change (i.e., Section 19(b)(3)(A) instead of 
Section 19(b)(2) of the Act) to make the cover sheet consistent with 
the text of the Form 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 its Schedule of Fees and Charges for 
Exchange Services (``Schedule'') by adding a Ratio Threshold Fee. While 
changes to the Schedule pursuant to this proposal will be effective 
upon filing, the proposed fee will become operative on June 1, 2009. 
The text of the proposed rule change is attached as Ex.5 to the 19b-4 
form. 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 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes adding a Ratio Threshold Fee to its Fee 
Schedule. The proposed Ratio Threshold Fee will be charged to OTP 
Holders based on the number of orders entered compared to the number of 
executions received in a calendar month. The fee will be assessed as 
follows:

------------------------------------------------------------------------
                                                                Monthly
               Monthly order to execution ratio                  charge
------------------------------------------------------------------------
Between 10,000 and 14,999 to 1...............................     $5,000
Between 15,000 and 19,999 to 1...............................     10,000
Between 20,000 and 24,999 to 1...............................     20,000
25,000 to 1 and greater......................................     35,000
------------------------------------------------------------------------

    This fee shall not apply to orders that improve the Exchange's 
prevailing best bid-offer (BBO) market at the time the orders are 
received.
    OTP Holders with order to execution ratios of 10,000 to 1 or 
greater have the potential residual effect of exhausting system 
resources, bandwidth, and capacity. Such order to execution ratios may, 
in turn, create latency and impact other OTP Holders ability to receive 
timely executions. Recognizing that orders and executions often occur 
in large numbers, the purpose of this fee is to focus on activity that 
is truly disproportionate while fairly allocating costs among members. 
The proposed fee has multiple thresholds and is greater at higher order 
to execution ratios because the potential impact on exchange systems, 
bandwidth and capacity becomes greater with increased order to 
execution ratios.
    The new Ratio Threshold Fee will become effective on June 1, 2009.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the provisions of Section 6 of the Securities Exchange Act of 1934 
(the ``Act''),\5\ in general, and Section 6(b)(4) of the Act,\6\ 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. Under this proposal, 
all similarly situated members of NYSE Arca will be charged the same 
reasonable dues, fees and other charges.
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    \5\ 15 U.S.C. 78f(b).
    \6\ 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

    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) \7\ of the Act and subparagraph (f)(2) of Rule 19b-
4 \8\ thereunder, because it establishes a due, fee, or other charge 
imposed by NYSE Arca.
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    \7\ 15 U.S.C. 78s(b)(3)(A).
    \8\ 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-2009-50 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.

[[Page 29252]]

All submissions should refer to File Number SR-NYSEArca-2009-50. 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 will also be available for 
inspection and copying at the principal office of the self-regulatory 
organization. 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-2009-50 and should be submitted on or before July 10, 2009.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-14352 Filed 6-18-09; 8:45 am]

BILLING CODE 8010-01-P