Document ID: SEC-2010-0137-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change by NYSE Arca, Inc. Amending Its Fee Schedule
Posted Date: 2010-01-26T05:00Z

[Federal Register: January 26, 2010 (Volume 75, Number 16)]
[Notices]               
[Page 4127-4128]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr26ja10-109]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-61378; File No. SR-NYSEArca-2010-01]

 
Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of a Proposed Rule Change by NYSE Arca, Inc. Amending Its 
Fee Schedule

January 19, 2010.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(the ``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given 
that, on January 7, 2010, 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 Exchange. 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.
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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 Fee Schedule to remove obsolete 
language pertaining to its expired Linkage Pilot Program and introduce 
a new Royalty Fee for Nasdaq 100 Index Options (``NDX'') and Mini-NDX 
Options (``MNX''). 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 to amend its Fee Schedule to delete obsolete 
references pertaining to the Linkage Pilot Program. The Linkage Pilot 
Program expired on December 31, 2009. Accordingly, the Exchange 
proposes to remove the ``Linkage Fees'' portion of its fee schedule as 
well as endnote 7, 11 and obsolete portions of endnote 12. Furthermore, 
the Exchange proposes to renumber subsequent endnotes accordingly.
    Additionally, the Exchange plans to commence trading of options on 
the Nasdaq 100 Index (``NDX'') and Mini-NDX (``MNX''). In order to 
trade options on NDX and MNX, the Exchange has entered into a licensing 
agreement with the Nasdaq Stock Market (``Nasdaq''), the exchange that 
created and maintains both indexes. As a part of this agreement, NYSE 
Arca will pay a fee to Nasdaq on every contract traded on the Exchange. 
Effective with this filing, the Exchange will assess a $0.22 Royalty 
Fee for transactions in NDX and MNX options. Accordingly, the $0.22 
rate will be applied to the ``Take'' side of electronic Penny Pilot 
executions. All non-electronic Penny Pilot executions and all non-Penny 
Pilot executions will pay the $0.22 rate when there is a firm, broker 
dealer or market maker executing the transaction.
2. Statutory Basis
    The Exchange believes that the proposal is consistent with Section 
6(b) of the Act,\3\ in general, and Section 6(b)(4),\4\ in particular, 
in that it provides for the equitable allocation of dues, fees and 
other charges among its members. Under this proposal, all similarly 
situated Exchange participants will be charged the same reasonable 
dues, fees and other charges.
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    \3\ 15 U.S.C. 78f(b).
    \4\ 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) \5\ of the Act and subparagraph (f)(2) of Rule 19b-
4 \6\ thereunder, because it establishes a due, fee, or other charge 
imposed by NYSE Arca on its members.
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    \5\ 15 U.S.C. 78s(b)(3)(A).
    \6\ 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

[[Page 4128]]

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-2010-01 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-2010-01. 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 publicly available. All 
submissions should refer to File Number SR-NYSEArca-2010-01 and should 
be submitted on or before February 16, 2010.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\7\
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    \7\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-1433 Filed 1-25-10; 8:45 am]
BILLING CODE 8011-01-P