Document ID: SEC-2009-0149-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NYSE Arca, Inc
Posted Date: 2009-02-02T05:00Z

[Federal Register: February 2, 2009 (Volume 74, Number 20)]
[Notices]               
[Page 5880-5881]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr02fe09-89]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-59270; File No. SR-NYSEArca-2009-01]

 
Self-Regulatory Organizations; Notice of Filing of Proposed Rule 
Change by NYSE Arca, Inc. Relating to Reduction of Annual Fee for 
Certain Issues Listed Under Rule 5.2(j)(6).

January 21, 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 January 6, 2009, NYSE Arca, Inc. (``NYSE Arca'' or the 
``Exchange'') filed with the Securities and Exchange Commission (the 
``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\ 15 U.S.C. 78a.
    \3\ 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, through its wholly owned subsidiary NYSE Arca 
Equities, Inc. (``NYSE Arca Equities''), is proposing to amend its 
Schedule of Fees and Charges for Exchange Services (``Fee Schedule'') 
to revise the Annual Fees applicable to securities listed in calendar 
year 2009 under Rule 5.2(j)(6) on NYSE Arca, LLC (``NYSE Arca 
Marketplace''), the equities facility of NYSE Arca Equities. The text 
of the proposed rule change is available on the Exchange's Web Site at 
http://www.nyx.com, at the Exchange's principal office, 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 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 the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    NYSE Arca has determined to amend the Exchange's Fee Schedule to 
revise the Annual Fee applicable to securities listed on the NYSE Arca 
Marketplace in calendar year 2009 under Rule 5.2(j)(6) (Equity Index-
Linked Securities, Commodity-Linked Securities, Currency-Linked 
Securities, Fixed Income Index-Linked Securities, Futures-Linked 
Securities and Multifactor Indexed-Linked Securities). Specifically, 
the Exchange proposes to add new footnote 10 to the Fee Schedule to 
state that, during 2009, the Annual Fee for an issue of securities 
listed under Rule 5.2(j)(6) of up to 500,000 shares outstanding will be 
$5,000, pro-rated based on days remaining in 2009.
    Under the current Fee Schedule for Structured Products, which 
include securities listed under Rule 5.2(j)(6), the Annual Fee ranges 
from $10,000 to $55,000, based on the total number of securities 
outstanding per listed issue. The current Annual Fee for issues with up 
to 6 million shares outstanding is $10,000. The proposed reduced Annual 
Fee would apply for calendar year 2009 to issues newly listed on the 
NYSE Arca Marketplace beginning as of January 1, 2009, and would not 
apply to issues listed prior to or after calendar year 2009.
    As an example of how the Annual Fee would apply to such issues, if 
an Equity Index-Linked Security lists on the NYSE Arca Marketplace on 
July 1, 2009 with 500,000 shares outstanding, such security would pay a 
pro-rated Annual Fee for 2009 of $2500 (\1/2\ x $5,000).
    The Exchange believes that temporarily reducing the Annual Fee for 
newly listed securities listed under Rule 5.2(j)(6), which include 
Exchange Traded Notes or ``ETNs'', will provide an incentive for 
issuers to introduce and list more such products on the NYSE Arca 
Marketplace in 2009, thereby increasing competition among such 
products.

[[Page 5881]]

2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) \4\ of the 
Act in general and Section 6(b)(4) \5\ of the Act, in particular, in 
that it provides for the equitable allocation of reasonable dues, fees 
and other charges among its issuers and other persons using its 
facilities. The Exchange believes that temporarily reducing the Annual 
Fee for newly listed securities listed under Rule 5.2(j)(6) will 
provide an incentive for issuers to introduce and list more such 
products on the NYSE Arca Marketplace in 2009, thereby increasing 
competition among such products.
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    \4\ 15 U.S.C. 78f(b).
    \5\ 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

    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 self-regulatory organization 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-NYSEArca-2009-01 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-2009-01. 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 Section, 100 F Street, 
NE., Washington, DC 20549-1090 on official business days between the 
hours of 10 a.m. and 3 p.m. Copies of the filing will also be available 
for inspection and copying at NYSE Arca's principal office and on its 
Internet Web site at http://www.nyse.com. 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-2009-01 and should be submitted 
on or before February 23, 2009.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\6\
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    \6\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-2121 Filed 1-30-09; 8:45 am]

BILLING CODE 8011-01-P