Document ID: SEC-2006-1639-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: New York Stock Exchange LLC
Posted Date: 2006-12-15T05:00Z

[Federal Register: December 15, 2006 (Volume 71, Number 241)]
[Notices]               
[Page 75601-75602]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr15de06-122]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-54912; File No. SR-NYSE-2006-110]

 
Self-Regulatory Organizations; New York Stock Exchange LLC; 
Notice of Filing of Proposed Rule Change Relating to the Retroactive 
Application of an Increase to Its Linkage Order Fee

December 11, 2006.
    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 December 6, 2006, 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, 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.
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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

    The Exchange proposes to retroactively apply, as of December 1, 
2006, an increase from $0.00025 to $0.000275 per share in the fee 
(``Linkage Order Fee'') it charges its member organizations in 
connection with orders in equities executed in another market pursuant 
to the Plan for the Purpose of Creating and Operating an Intermarket 
Communications Linkage (``Linkage Plan'').
    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.\3\
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    \3\ The text of the proposed rule change was filed as Exhibit 
No. 5 to the Exchange's December 4, 2006, filing (see SR-NYSE-2006-
108), which established the revised Linkage Order Fee as immediately 
effective on that date.

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[[Page 75602]]

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, 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 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 retroactively apply, as of December 1, 
2006, an increase from $0.00025 to $0.000275 per share in the Linkage 
Order Fee it charges its member organizations in connection with orders 
in equities executed in another market pursuant to the Linkage Plan. 
This increase in the Linkage Order Fee became effective on Monday, 
December 4, 2006 pursuant to a previous rule change submitted by the 
Exchange.\4\ The Linkage Order Fee was increased to $0.000275 to set it 
at the same level as the regular equity transaction fee, which was 
increased to that level as of December 1, 2006.\5\ The current filing 
simply applies the revised Linkage Order Fee to transactions that 
occurred on December 1, 2006, which is the only business day with 
respect to which the Linkage Order Fee and the regular equity 
transaction fee have not been harmonized by the previous filing. The 
Exchange wishes to harmonize the Linkage Order Fee payable on 
transactions executed through the Linkage on December 1, 2006, with the 
regular equity transaction fee payable on that day because the 
difference in the amount payable by customers would be immaterial, but 
the Exchange would incur significant costs in identifying those 
transactions which should be charged the lower fee rate.\6\
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    \4\ See id.
    \5\ See Exchange Act Release No. 54856 (December 1, 2006); 71 FR 
71215 (December 8, 2006) (SR-NYSE-2006-106).
    \6\ The Exchange estimates that the difference in the amount of 
Linkage Order Fees payable under the old rate as compared to the 
proposed revised rate by customers for trades executed on December 
1, 2006, would be less than $2,000.00. Telephone conversation 
between John Carey, Assistant General Counsel, NYSE, and Nathan 
Saunders, Special Counsel, Division of Market Regulation, 
Commission, December 7, 2006.
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the objectives of Section 6 \7\ of the Act in general, and 
furthers the objectives of Section 6(b)(4)\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. The Exchange believes that it is equitable to retroactively 
increase the Linkage Order Fee payable on transactions executed through 
the Linkage on December 1, 2006, to harmonize it with the regular 
equity transaction fee payable on that day, because the difference in 
the amount payable by customers would be immaterial, but the Exchange 
would incur significant costs in identifying those transactions which 
should be charged the lower fee rate.
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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

    Within 35 days of the date of publication of this notice in the 
Federal Register or within such longer period (i) as the Commission may 
designate up to 90 days of such date if it finds such longer period to 
be appropriate and publishes its reasons for so finding, or (ii) as to 
which the Exchange consents, the Commission will:
    (A) by order approve the proposed rule change, or
    (B) institute proceedings to determine whether the proposed rule 
change should be disapproved.

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-2006-110 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-2006-110. 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. Copies of the 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-2006-110 and should be submitted on or before January 5, 2007.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\9\
Florence E. Harmon,
Deputy Secretary.
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    \9\ 17 CFR 200.30-3(a)(12).
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 [FR Doc. E6-21372 Filed 12-14-06; 8:45 am]

BILLING CODE 8011-01-P