Document ID: SEC-2007-0603-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: New York Stock Exchange LLC
Posted Date: 2007-04-27T04:00Z

[Federal Register: April 27, 2007 (Volume 72, Number 81)]
[Notices]               
[Page 21062]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr27ap07-94]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-55656; File No. SR-NYSE-2007-15]

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

April 23, 2007.
    On February 13, 2007, the New York Stock Exchange LLC (``NYSE'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``Commission''), pursuant to Section 19(b)(1) of the Securities 
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder, \2\ a 
proposed rule change 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 proposed rule change was published for comment 
in the Federal Register on March 5, 2007.\3\ The Commission received no 
comments regarding the proposal.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 55345 (February 26, 
2007), 72 FR 9816.
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    The Exchange previously required the payment of a 10% premium to 
encourage participation in its ``Dutch'' auction method of allocating 
trading licenses, but recently eliminated this premium when it adopted 
a fixed $50,000 annual fee for each trading license.\4\ The Exchange 
believes that the 10% premium for licenses purchased after the annual 
application period will provide the Exchange with greater 
predictability regarding the number of trading licenses issued. The 
Exchange represents that this predictability not only facilitates 
business planning and administration by member organizations and the 
NYSE, but also reduces both business and regulatory systems changes to 
reflect fluctuations in trading licenses issued. The Exchange confirms 
that, during the December 2006 trading license application period, it 
notified its members of its intent to submit a rule filing to apply the 
proposed premium for trading licenses purchased after the application 
period.\5\ The Exchange also confirms that the premium will only be 
effective for trading licenses purchased after the approval of this 
proposed rule change.\6\
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    \4\ See Securities Exchange Act Release No. 54998 (December 21, 
2006), 71 FR 78496 (December 29, 2006) (SR-NYSE-2006-98).
    \5\ E-mail communication between Leah Mesfin, Special Counsel, 
Division of Market Regulation, Commission, and Janet Kissane, Vice 
President and Associate General Counsel, NYSE, on April 13, 2007.
    \6\ Id.
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    The Commission finds that the proposed rule change is consistent 
with the Act, and particularly with Section 6(b)(4) \7\ of the Act, 
which requires that an exchange have rules that provide for the 
equitable allocation of reasonable dues, fees, and other charges among 
its members and issuers and other persons using its facilities.\8\ The 
Commission believes that the Exchange's proposed 10% premium for 
trading licenses purchased after the annual application period is 
reasonable and should help facilitate the Exchange's administration of 
trading licenses and member organizations' business planning with 
respect to the issuance of trading licenses.
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    \7\ 15 U.S.C. 78f(b)(4).
    \8\ In approving this proposed rule change, the Commission notes 
that it has considered the proposed rule's impact on efficiency, 
competition, and capital formation. See 15 U.S.C. 78c(f).
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    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\9\ that the proposed rule change (SR-NYSE-2007-15) be, and hereby 
is, approved.
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    \9\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12); 17 CFR 200.30-3(a)(44).
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Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E7-8097 Filed 4-26-07; 8:45 am]

BILLING CODE 8010-01-P