Document ID: SEC-2007-0312-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: New York Stock Exchange LLC
Posted Date: 2007-03-05T05:00Z

[Federal Register: March 5, 2007 (Volume 72, Number 42)]
[Notices]               
[Page 9816-9817]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr05mr07-94]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-55345; File No. SR-NYSE-2007-15]

 
Self-Regulatory Organizations; New York Stock Exchange LLC; 
Notice of Filing of a Proposed Rule Change Regarding the Amendment of 
NYSE Rule 300 Relating to Trading Licenses

February 26, 2007.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act'') \1\ and rule 19b-4 thereunder,\2\ notice is hereby given that 
on February 13, 2007, the New York Stock Exchange LLC (``NYSE'' 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 substantially prepared by NYSE. 
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\ 217 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 NYSE rule 300 relating to trading 
licenses to charge a premium of $5,000, for a total annualized rate of 
$55,000 for those trading licenses purchased after the annual 
application period.
    The text of the proposed rule change is available on NYSE's Web 
site at http://www.nyse.com/regulation/rules/1160561784294.html, at 

NYSE'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 Exchange included statements 
concerning the purpose of, and basis for, the proposed rule change and 
discussed any comments it received on the proposal. The text of these 
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 aspects 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 NYSE rule 300 relating to trading 
licenses to charge a premium for those trading license purchased after 
the annual application period. The premium would be $5,000 or 10% above 
the fixed price of $50,000 per trading license, pro-rated to reflect 
the amount of time remaining in the year at the time of the 
commencement of the license. The Exchange believes that there are 
benefits to itself and to its member organizations in having a more 
stable trading license population during the course of the calendar 
year.
    The Exchange previously required payment of a premium to encourage 
participation in a ``Dutch'' auction, but recently eliminated this 
requirement in connection with its transition away from the use of an 
auction to set the price of a trading license.\3\ The Exchange 
believes, however, that the requirement of a 10% premium should be 
reinstated. The Exchange believes that the 10% premium for licenses 
purchased after the annual application period provides the Exchange 
with greater predictability regarding the number of trading licenses 
outstanding during each calendar year. The Exchange represents that 
this predictability not only facilitates business planning and 
administration by member organizations and the Exchange, but also 
reduces both business and regulatory systems changes required to 
reflect fluctuations in trading licenses issued. The Exchange believes 
that the premium encouraged member organizations to properly forecast 
the number of licenses needed by it in the conduct of its business for 
the upcoming calendar year, which in turn helped the Exchange determine 
the resources required to administer and monitor trading licenses for 
the same period and to efficiently prepare systems changes relating to 
any significant changes in the trading license population required for 
both business and regulatory purposes. The Exchange believes that the 
premium

[[Page 9817]]

will also discourage member organizations from surrendering and 
requesting licenses on a monthly basis and thereby help reduce month-
by-month changes in the trading license population.
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    \3\ Securities Exchange Act Release No. 54998 (December 21, 
2006), 71 FR 78496 (December 29, 2006) (SR-NYSE-2006-98).
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2. Statutory Basis
    The statutory basis for the proposed rule change is the requirement 
under section 6(b)(4) \4\ of the Act 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 
and the requirement under section 6(b)(5) \5\ of the Act that an 
exchange have rules that are designed to prevent fraudulent and 
manipulative acts and practices, to promote just and equitable 
principles of trade, to remove impediments to and perfect the mechanism 
of a free and open market and, in general, to protect investors and the 
public interest.
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    \4\ 15 U.S.C. 78f(b)(4).
    \5\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change would 
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

    Written comments were neither solicited nor received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Within 35 days of the date of publication of this notice in the 
Federal Register or within such longer period (i) as the Commission may 
designate up to 90 days of such date if it finds such longer period to 
be appropriate and publishes its reasons for so finding or (ii) as to 
which NYSE consents, the Commission will:
    (A) By order approve such proposed rule change, or
    (B) institute proceedings to determine whether the proposed rule 
change should be disapproved.

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-2007-15 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-2007-15. 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. Copies of such 
filing also will be available for inspection and copying at the 
principal office 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-NYSE-2007-15 and should be submitted on or before March 26, 2007.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\6\
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    \6\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E7-3743 Filed 3-2-07; 8:45 am]

BILLING CODE 8010-01-P