Document ID: SEC-2008-0095-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: New York Stock Exchange LLC
Posted Date: 2008-01-18T05:00Z

[Federal Register: January 18, 2008 (Volume 73, Number 13)]
[Notices]               
[Page 3503-3504]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr18ja08-96]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-57139; File No. SR-NYSE-2008-01]

 
Self-Regulatory Organizations; New York Stock Exchange LLC; 
Notice of Filing and Order Granting Accelerated Approval of Proposed 
Rule Change Relating to NYSE Rule 129 To Reflect the Changes to the 
NYSE's Gross FOCUS (Financial and Operational Combined Uniform Single 
Report) Fee That Commenced on January 1, 2008

    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 January 2, 2008, 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 and 
II below, which Items have been substantially prepared by the Exchange. 
The Commission is publishing this notice to solicit comments on the 
proposed rule change from interested persons and is simultaneously 
approving the proposal on an accelerated basis.
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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

    NYSE proposes to amend, retroactively effective to January 1, 2008, 
NYSE Rule 129 to reflect the changes to the NYSE's gross FOCUS 
(Financial and Operational Combined Uniform Single Report) fee that 
commenced on that date. The text of the proposed rule change is 
available on the Exchange's Web site (http://www.nyse.com), at 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 NYSE 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. The NYSE 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 the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to amend, retroactively effective to January 
1, 2008, NYSE Rule 129 to reflect the reduction in gross FOCUS fees 
that will be charged to member organizations after that date.
    In connection with the transfer of certain NYSE Regulation, Inc. 
(``NYSE Regulation'') functions to the Financial Industry Regulatory 
Authority, Inc. (``FINRA''), the Exchange filed with the Commission to 
reduce its gross FOCUS fees by 75%, effective January 1, 2008.\3\ That 
proposal was effective on filing with the Commission.
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    \3\ See Securities Exchange Act Release No. 56181 (August 1, 
2007), 72 FR 44206 (August 7, 2007) (SR-NYSE-2007-70) (``Release No. 
34-56181'').
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    As noted in that filing, the Exchange currently charges its member 
organizations a fee of $0.42 per $1,000 of gross revenues as reported 
by each member organization in its FOCUS report,\4\ subject to minimum 
annual fees of $180.00 for member organizations that do not conduct a 
public business, $1,000 for introducing firms, and $2,000 for carrying 
firms and specialists. The Exchange allocates the FOCUS fees to NYSE 
Regulation to fund its performance of its regulatory activities with 
respect to member organizations.
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    \4\ FOCUS (Securities Exchange Act Form X-17A-5) is an acronym 
for Financial and Operational Combined Uniform Single Report. The 
report is filed periodically with the Commission pursuant to 
Securities Exchange Act Rule 17a-5, 17 CFR 240.17a-5.
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    Because FINRA now performs a substantial portion of the regulatory 
activities for NYSE member organizations, for the period July 31, 2007 
through the end of 2007, the Exchange agreed to pay FINRA 75% of the 
gross FOCUS fees paid to the Exchange. Beginning January 1, 2008, the 
Exchange reduced its FOCUS fees, including the minimum fees, by 75%.
    NYSE Rule 129 sets forth the gross FOCUS fee schedule and minimum 
annual fees, as described above. Because those fees were reduced 
effective January 1, 2008, to reflect those changes, the Exchange 
proposes to amend the text of NYSE Rule 129 to set forth the revised 
fee schedule, retroactively effective to January 1, 2008.
2. Statutory Basis
    The Exchange states that the basis under the Act for this proposed 
rule change is the requirement under section 6(b)(5) \5\ that an 
Exchange have rules that are designed to promote just and equitable 
principles of trade, to remove impediments to and perfect the mechanism 
of a free and open market and a national market system and, in general, 
to protect investors and the public interest.
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    \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 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. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing,

[[Page 3504]]

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-2008-01 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-2008-01. 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 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-2008-01 and should be 
submitted on or before February 8, 2008.

IV. Commission Findings

    The Commission finds that the proposed rule change is consistent 
with the requirements of the Act and the rules and regulations 
thereunder applicable to a national securities exchange \6\ and, in 
particular, the requirements of section 6 of the Act.\7\ Specifically, 
the Commission finds that the proposed rule change is consistent with 
section 6(b)(5) of the Act,\8\ which requires, among other things, that 
the rules of a national securities exchange be designed to promote just 
and equitable principles of trade, to remove impediments to and perfect 
the mechanism of a free and open market and a national market system, 
and, in general, to protect investors and the public interest. The 
Commission also finds that the proposal is consistent with section 
6(b)(4) of the Act,\9\ which requires the equitable allocation of 
reasonable dues, fees, and other charges among the Exchange's members 
and issuers and other persons using its facilities. The Commission 
believes that the proposed rule change to amend NYSE Rule 129 to 
incorporate the reduced gross FOCUS fees is appropriate and consistent 
with the Act.
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    \6\ In approving this proposed rule change the Commission has 
considered the proposed rule's impact on efficiency, competition, 
and capital formation. 15 U.S.C. 78c(f).
    \7\ 15 U.S.C. 78f.
    \8\ 15 U.S.C. 78f(b)(5).
    \9\ 15 U.S.C. 78f(b)(4).
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    The Commission finds good cause to approve the proposal prior to 
the thirtieth day after the proposal was published for comment in the 
Federal Register. This approval allows the NYSE to immediately update 
its rule to accurately reflect the revised gross FOCUS fees. The 
proposal to reduce the gross FOCUS fees was already published for 
comment,\10\ the Commission received no comments on the earlier 
proposal, and interested persons were provided the opportunity to 
submit comments on an essentially identical proposal. For these 
reasons, the Commission finds good cause, consistent with section 
19(b)(2) of the Act, to grant accelerated approval to the proposal.
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    \10\ See Release No. 34-56181, supra note 3.
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V. Conclusion

    It is therefore ordered, pursuant to section 19(b)(2) of the Act, 
that the proposed rule change (SR-NYSE-2008-01) is hereby approved on 
an accelerated basis.\11\
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    \11\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12\
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    \12\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E8-832 Filed 1-17-08; 8:45 am]

BILLING CODE 8011-01-P