Document ID: SEC-2007-1404-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: New York Stock Exchange LLC
Posted Date: 2007-10-09T04:00Z

[Federal Register: October 9, 2007 (Volume 72, Number 194)]
[Notices]               
[Page 57369-57371]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr09oc07-122]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-56590; File No. SR-NYSE-2007-88]

 
Self-Regulatory Organizations; New York Stock Exchange LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Modify the Exchange's Transaction Fees and Certain Trading Floor Fees

October 1, 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 September 27, 2007, the New York Stock Exchange LLC (``Exchange'' or 
``NYSE'') 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 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

    NYSE proposes to amend its equity transaction fees, effective 
October 1, 2007. Member Organizations will no longer be charged a fee: 
(i) If they are posting liquidity on the NYSE and the applicable order 
is executed against an inbound order; (ii) for non-electronic agency 
transactions of at least 10,000 shares between floor brokers in the 
crowd; and (iii) for agency cross transactions of at least 10,000 
shares. Member Organizations will be charged $.0008 per share when an 
executed order takes liquidity from the NYSE. Member organizations will 
be charged $.0004 per share (on both sides of the transaction) on: (i) 
Odd lot transactions (including the odd lot portion of partial round 
lots); (ii) at the opening and at the opening only orders; (iii) market 
at-the-close and limit at-the-close orders; and (iv) non-electronic 
agency transactions of less than 10,000 shares between floor brokers in 
the crowd. Equity transaction fees will be capped at $120 per 
transaction side. The Exchange is also changing its routing fee from 
$.0025 per share to $.0030 per share. In addition, the routing fee will 
now apply to transactions where the related order is placed by a broker 
on the Exchange trading floor. Finally, the Exchange is eliminating its 
broker booth fees and the $11,000 per license trading floor

[[Page 57370]]

regulatory fee charged to non-specialist Member Organizations. The text 
of the proposed rule change is available at NYSE, the Commission's 
Public Reference Room, and http://www.nyse.com.

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. 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 its equity transaction fees, 
effective October 1, 2007. Member Organizations are currently charged a 
transaction fee of $.000275 per share on all equity transactions 
whether they are providing or taking liquidity. Under the proposed 
amendment, Member Organizations will no longer be charged a fee: (i) If 
they are posting liquidity \3\ on the NYSE and the applicable order is 
executed against an inbound order; (ii) for non-electronic agency 
transactions of at least 10,000 shares between floor brokers in the 
crowd; and (iii) for agency cross transactions of at least 10,000 
shares, i.e., a trade where a Member Organization has customer orders 
to buy and sell an equivalent amount of the same security. Member 
Organizations will be charged $.0008 per share when an executed order 
takes liquidity from the NYSE. Member organizations will be charged 
$.0004 per share (on both sides of the transaction) on: (i) Odd lot 
transactions (including the odd lot portion of partial round lots); 
(ii) at the opening and at the opening only orders; (iii) market at-
the-close and limit at-the-close orders; and (iv) non-electronic agency 
transactions of less than 10,000 shares between floor brokers in the 
crowd.
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    \3\ Including Percentage Orders (more commonly known as ``CAP 
orders''), as defined in Exchange Rule 13.
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    Equity transaction fees will be capped at $120 per side on all 
equity transactions.\4\
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    \4\ Equity transaction fees are currently capped at $80 per side 
on all equity transactions.
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    The Exchange is also changing its routing fee (the fee it charges 
Member Organizations for transactions required under Regulation NMS to 
be routed to other markets) from $.0025 per share to $.0030 per share. 
The revised routing fee more closely corresponds to the actual costs 
the Exchange incurs in paying transaction fees to the other markets to 
which it routes orders. In addition, the routing fee will now apply to 
transactions where the related order is placed by a broker on the 
Exchange trading floor. The routing fee is not subject to the $120 fee 
cap per equity transaction.
    The Exchange's transaction fees and routing fee for Exchange-Traded 
Fund securities remain unchanged.
    The Exchange is also eliminating its booth fees \5\ and the $11,000 
per license annual trading floor regulatory fee charged to non-
specialist Member Organizations.\6\
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    \5\ Annual booth fees are currently $7,800 for the Blue Room and 
Extended Blue Room, $6,000 for the Main Room and Garage, and $2,400 
for the QT Room (Post Trade Processing Center).
    \6\ The trading floor regulatory fee is subject to a $50,000 
maximum per annum per Member Organization.
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the objectives of Section 6 of the Act \7\ in general and furthers 
the objectives of Section 6(b)(4) of the Act \8\ 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.
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    \7\ 15 U.S.C. 78f.
    \8\ 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

    Written comments were neither solicited nor received.

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

    The foregoing proposed rule change has become effective upon filing 
pursuant to Section 19(b)(3)(A) of the Act \9\ and Rule 19b-4(f)(2) 
\10\ thereunder, because it establishes or changes a due, fee, or other 
charge imposed by the Exchange.
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    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 17 CFR 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-NYSE-2007-88 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-2007-88. 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 Commissions 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

[[Page 57371]]

information from submissions. You should submit only information that 
you wish to make available publicly. All submissions should refer to 
File Number SR-NYSE-2007-88 and should be submitted on or before 
October 30, 2007.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(12).
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Nancy M. Morris,
Secretary.
[FR Doc. E7-19750 Filed 10-5-07; 8:45 am]

BILLING CODE 8011-01-P