Document ID: SEC-2007-1400-0001
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 57368-57369]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr09oc07-121]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-56589; File No. SR-NYSE-2007-85]

 
Self-Regulatory Organizations; New York Stock Exchange LLC; 
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change 
Relating to Temporary Waiver of the Specialist Marketing and Investor 
Education Fee for Specialists in Certain Listed Investment Company 
Units

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 25, 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 and 
II below, which Items have been substantially prepared by the Exchange. 
The Exchange has designated this proposal as one establishing or 
changing a due, fee, or other charge imposed by NYSE under Section 
19(b)(3)(A)(ii) of the Act \3\ and Rule 19b-4(f)(2) thereunder,\4\ 
which renders the proposal effective upon filing with the Commission. 
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.
    \3\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \4\ 17 CFR 240.19b-4(f)(2).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes, for the period from August 1, 2007 to 
December 1, 2007, to waive the Specialist Marketing and Investor 
Education Fee (``Fee'') for those specialists in listed Investment 
Company Units (``ICUs'') otherwise subject to such fee that have been 
reallocated following the previous specialist's withdrawal from 
registration as specialist in such ICUs.

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 proposed rule change. The 
text of these statements may be examined at the places specified in 
Item IV below. NYSE has substantially 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 currently imposes the Fee on Exchange specialists in 
ICUs in circumstances where the Exchange undertakes to provide funds to 
a third party for marketing and investor education in connection with 
the listing of those ICUs (also known as exchange traded funds).\5\ The 
Exchange states that the fee is imposed in a fair and equitable manner 
on all specialists trading the securities subject to a third party fee 
or payment.
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    \5\ See Securities Exchange Act Release No. 51872 (June 17, 
2005), 70 FR 36683 (June 24, 2005) (SR-NYSE-2005-42).
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    The amount paid by the specialists is calculated and apportioned 
following each calendar quarter among the specialist units allocated 
ICUs that are subject to an Exchange payment to third parties. This 
amount represents five-sixths (83.33%) of the annual amount payable by 
the Exchange, as apportioned for the quarter. Such amount is 
apportioned to specialist units for each ICU that is subject to the 
Fee, calculated based on the ``Notional NYSE ADV'' for each relevant 
ICU. Notional NYSE ADV is defined as the average daily share volume on 
the NYSE for the calendar quarter for the particular ICU multiplied by 
the average consolidated closing price for the quarter for such ICU.
    One of the specialist units previously registered in a number of 
the ICUs subject to the Fee notified the Exchange in July 2007 of its 
intention to withdraw from registration as specialist from the Exchange 
in all listed products. As a result, the Exchange was required to 
reallocate these ICUs to other specialist units within a short time 
frame following notification by the previous specialist unit. This 
reallocation was accomplished on August 1, 2007. Under these 
circumstances, given that the specialist firms, to which the ICUs were 
reallocated on short notice, were not able to anticipate or budget for 
the expense, the Exchange considered it necessary, appropriate, and 
equitable to waive the Fee with respect to such reallocated ICUs for 
the period August 1, 2007 to December 1, 2007.

[[Page 57369]]

2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act,\6\ in general, and furthers the 
objectives of Section 6(b)(4) of the Act,\7\ in particular, in that it 
is designed to provide for the equitable allocation of reasonable dues, 
fees, and other charges among Exchange members, issuers, and other 
persons using the facilities of the Exchange.
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    \6\ 15 U.S.C. 78f(b).
    \7\ 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 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

    The Exchange has neither solicited nor received written comments on 
the proposed rule change.

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

    The foregoing proposed rule change has been designated as a fee 
change pursuant to Section 19(b)(3)(A)(ii) of the Act \8\ and Rule 19b-
4(f)(2) \9\ thereunder, because it establishes or changes a due, fee, 
or other charge imposed by the Exchange. Accordingly, the proposal will 
take effect upon filing with the Commission. 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 the furtherance of the 
purposes of the Act.
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    \8\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \9\ 17 CFR 240.19b-4(f)(2).
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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-2007-85 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-2007-85. 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 available publicly. All 
submissions should refer to File Number SR-NYSE-2007-85 and should be 
submitted on or before October 30, 2007.

    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).
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Nancy M. Morris,
Secretary.
[FR Doc. E7-19749 Filed 10-5-07; 8:45 am]

BILLING CODE 8011-01-P