Document ID: SEC-2009-0664-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by New York Stock Exchange LLC To Modify Certain Equity Transaction Fees and Rebates
Posted Date: 2009-05-14T04:00Z

[Federal Register: May 14, 2009 (Volume 74, Number 92)]
[Notices]               
[Page 22798-22799]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr14my09-91]                         

-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-59863; File No. SR-NYSE-2009-47]

 
Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by New York Stock Exchange LLC To 
Modify Certain Equity Transaction Fees and Rebates

May 5, 2009.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 
1934 (the ``Act''),\2\ and Rule 19b-4 thereunder,\3\ notice is hereby 
given that on April 30, 2009, New York Stock Exchange LLC (the ``NYSE'' 
or the ``Exchange'') filed with the Securities and Exchange Commission 
(the ``Commission'') the proposed rule changes as described in Items I, 
II and III below, which Items have been prepared by the Exchange. The 
Commission is publishing this notice to solicit comments on the 
proposed rule change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78a et seq.
    \3\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to make a number of changes to its schedule 
of equity transaction fees and rebates, with effect from May 1, 2009. 
The text of the proposed rule change is available on the Exchange's Web 
site (http://www.nyse.com), at the Exchange's Office of the Secretary, 
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 self-regulatory organization 
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 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to make a number of changes to its schedule 
of equity transaction fees, with effect from May 1, 2009.
    The following are the proposed changes:
     Currently, the Exchange caps trading fees per transaction 
at $120. This cap is being eliminated and there will no longer be any 
limit on the trading fees that may be incurred in connection with a 
transaction. The $120 trading fee cap per transaction will be retained 
for market at-the-close and limit at-the-close orders.
     The price list does not currently indicate what fee is 
charged when orders are executed at the close (except for market at-
the-close and limit at-the-close orders). The Exchange's practice has 
been to not charge a fee when this happens and now proposes to 
formalize this approach by clearly stating it in the price list.
     Designated Market Makers whose orders are executed at the 
close receive a credit of $0.0005 per share. The Exchange now proposes 
to provide (i) a credit of $0.0012 per share to floor brokers whose 
orders are executed at the close and (ii) a credit of $0.0005 per share 
to Supplemental Liquidity Providers whose orders are executed at the 
close.
     Agency cross trades (i.e., a trade where a Member 
Organization has customer orders to buy and sell an equivalent amount 
of the same security) of 10,000 shares or more are currently free of 
charge. The Exchange proposes to extend this approach to agency cross 
trades of fewer than 10,000 shares, so that all agency cross trades 
will be free of charge regardless of size.
    The subheading ``Transactions in stocks with a per share stock 
price of $1.00 or less'' is modified to clarify that the fees under 
that subheading actually apply only to transactions in stocks with a 
price of less than $1.00. As amended, it reads ``Transactions in stocks 
with a per share stock price less than $1.00.''
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the objectives of Section 6 \4\ of the Act in general and furthers 
the objectives of Section 6(b)(4) \5\ in particular, in that it is 
designed provide for the equitable allocation of reasonable dues, fees 
and other charges among its members and other persons using its 
facilities. The Exchange believes that the proposal does not constitute 
an inequitable allocation of dues, fees and other charges as all member 
organizations will be subject to the same fee structure.
---------------------------------------------------------------------------

    \4\ 15 U.S.C. 78f.
    \5\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

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 purpose 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 rule change is effective upon filing pursuant to 
Section

[[Page 22799]]

19(b)(3)(A) \6\ of the Act and Rule 19b-4(f)(2) \7\ thereunder.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78s(b)(3)(A).
    \7\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

    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-2009-47 on the subject line.

Paper Comments

     Send paper comments in triplicate to Elizabeth M. Murphy, 
Secretary, Securities and Exchange Commission, 100 F Street, NE., 
Washington, DC 20549-1090.

All submissions should refer to File Number SR-NYSE-2009-47. 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 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-2009-47 and should be submitted on or before June 4, 2009.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\8\
---------------------------------------------------------------------------

    \8\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-11165 Filed 5-13-09; 8:45 am]

BILLING CODE 8010-01-P