Document ID: SEC-2012-0707-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NYSE Arca, Inc.
Posted Date: 2012-05-08T04:00Z

[Federal Register Volume 77, Number 89 (Tuesday, May 8, 2012)]
[Notices]
[Pages 27106-27107]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-11001]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-66904; File No. SR-NYSEArca-2012-40]

Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change Implementing a Fee 
Change for the Floor Broker Electronic Order Capture Device

May 2, 2012.
    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 April 30, 2012, NYSE Arca, Inc. (the ``Exchange'' or ``NYSE Arca'') 
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 self-regulatory organization. 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 amend the NYSE Arca Options Fee Schedule 
(``Fee Schedule'') to revise the fee for the Floor Broker Electronic 
Order Capture Device (``EOC Device''). The text of the proposed rule 
change is available at the Exchange, the Commission's Public Reference 
Room, and 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 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 those 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 parts 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 the Fee Schedule to revise the fee 
for the EOC Device.

[[Page 27107]]

    The EOC Device is used by Floor Brokerage operations to comply with 
the requirements of NYSE Arca Rule 6.67, Order Format and System Entry 
Requirements, namely, the systemization of order details and electronic 
tracking of all events in the life of an order, up to and including 
cancellation or execution. The Exchange's current Electronic Order 
Capture System \3\ platform was implemented in February 2010, and the 
$175 monthly fee for the new EOC Devices began being charged on March 
1, 2010.
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    \3\ See NYSE Arca Rule 6.1(b)(39).
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    Effective May 1, 2012, the Exchange proposes to cap the current 
monthly fee of $175 for each EOC Device at $4,200, which represents 24 
months of charges. If any OTP Holder has paid more than $4,200 as of 
that date, the Exchange will provide a credit so that such OTP Holder 
will be charged the same total amount as other OTP Holders.\4\ If an 
OTP Holder requests a new EOC Device or the Exchange replaces the 
current Electronic Order Capture System platform, the OTP Holder will 
be charged $175 per month for each new EOC Device until the $4,200 cap 
is reached again.
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    \4\ For example, if an OTP Holder began using an EOC Device on 
March 1, 2010, the OTP Holder will have paid a total of $4,550 by 
May 1, 2012. The Exchange will credit such an OTP Holder $350.
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the provisions of Section 6(b) \5\ of the Securities Exchange Act 
of 1934 (the ``Act''), in general, and Section 6(b)(4) \6\ of the Act, 
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 and is not unfairly 
discriminatory. The Exchange believes that it is reasonable to 
implement a cap that takes into account (1) the value to the OTP Holder 
of the equipment, installation, and maintenance provided by the 
Exchange, and (2) the cost to the Exchange of providing such resources 
and services. In addition, the Exchange believes that it is reasonable 
to resume the monthly fee if an OTP Holder requests a new EOC Device or 
the Exchange replaces the current platform because the Exchange will be 
incurring new costs to provide a new EOC Device. The Exchange also 
believes that the cap is equitably allocated and not unfairly 
discriminatory because it will apply to all OTP Holders beginning on 
the same date and take into account payments made for EOC Devices 
currently used. The Exchange recognizes that certain OTP Holders have 
been using an EOC Device since February 2010, when the most recent 
Electronic Order Capture System was implemented, and will provide a 
credit so that all OTP Holders using the current EOC Device will be 
subject to the same total fees. As such, the Exchange believes that the 
proposed change is reasonable, equitable, and not unfairly 
discriminatory.
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    \5\ 15 U.S.C. 78f(b).
    \6\ 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

    No written comments were solicited or received with respect to the 
proposed rule change.

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 19(b)(3)(A) \7\ of the Act and subparagraph (f)(2) of Rule 19b-
4 \8\ thereunder, because it establishes a due, fee, or other charge 
imposed by the NYSE Arca.
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    \7\ 15 U.S.C. 78s(b)(3)(A).
    \8\ 17 CFR 240.19b-4(f)(2).
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    At any time within 60 days of the filing of such proposed rule 
change, the Commission summarily may temporarily suspend 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 email to rule-comments@sec.gov. Please include 
File Number SR-NYSEArca-2012-40 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-NYSEArca-2012-40. This 
file number should be included on the subject line if email 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 Web site viewing and 
printing in the Commission's Public Reference Room, 100 F Street NE., 
Washington, DC 20549, on official business days between the hours of 
10:00 a.m. and 3:00 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-NYSEArca-2012-40 and should 
be submitted on or before May 29, 2012.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-11001 Filed 5-7-12; 8:45 am]
BILLING CODE 8011-01-P