Document ID: SEC-2009-1156-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NYSE Arca, Inc.
Posted Date: 2009-08-17T04:00Z

[Federal Register: August 17, 2009 (Volume 74, Number 157)]
[Notices]               
[Page 41474-41475]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr17au09-122]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-60468; File No. SR-NYSEArca-2009-52]

 
Self-Regulatory Organizations; NYSE Arca, Inc.; Order Approving 
Proposed Rule Change To Amend the Schedule of Fees and Charges for 
Exchange Services

August 10, 2009.

I. Introduction

    On June 10, 2009, NYSE Arca, Inc. (``NYSE Arca'' or ``Exchange'') 
through its wholly-owned subsidiary, NYSE Arca Equities, Inc. (``NYSE 
Arca Equities''), filed with the Securities and Exchange Commission 
(``Commission''), pursuant to Section 19(b)(1) of the Securities 
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a 
proposed rule change amending its Schedule of Fees and Charges for 
Exchange Services (``Fee Schedule'') to revise the Listing Fees 
applicable to Derivative Securities Products. The proposed rule change 
was published in the Federal Register on July 7, 2009.\3\ The 
Commission received no comments on the proposal. This order approves 
the proposed rule change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 60184 (June 29, 
2009), 74 FR 32209 (July 7, 2009) (hereinafter referred to as 
``Notice'').
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II. Description of the Proposal

    The Exchange proposes amending its Fee Schedule to revise the 
Listing Fees applicable to Derivative Securities Products listed under 
NYSE Arca Rules 5.2(j)(3) (Investment Company Units), 8.100 (Portfolio 
Depository Receipts), 8.200 (Trust Issued Receipts), 8.201 (Commodity-
Based Trust Shares), 8.202 (Currency Trust Shares), 8.203 (Commodity 
Index Trust Shares), 8.204 (Commodity Futures Trust Shares), 8.300 
(Partnership Units), 8.500 (Trust Units), and 8.600 (Managed Fund 
Shares) on NYSE Arca, LLC, the equities facility of NYSE Arca Equities. 
Specifically, the Exchange proposes to add a new provision to the Fee 
Schedule which states that in the case where a sponsor, managing owner, 
general partner or equivalent (collectively, the ``Sponsor'') is 
listing a new Derivative Securities Product on the Exchange for the 
first time, the Sponsor will be charged a one time consultation fee in 
the amount of $20,000.
    The proposed consulting charge would apply to all new Sponsors 
listing a new Derivative Securities Product for the first time on the 
Exchange. Therefore, under the proposal Sponsors who have previously 
issued a new Derivative Securities Product would not be charged the 
proposed consulting fee. Moreover, the current Listing and Annual Fees 
applicable to Derivative Securities Products would remain unchanged and 
be applicable to all Sponsors of Derivative Securities Products.

III. Discussion and Commission's Findings

    After careful review, the Commission finds that the proposed rule 
change is consistent with the requirements of the Act and the rules and 
regulations thereunder applicable to a national securities exchange. 
Specifically, the Commission finds that the proposal is consistent with 
Sections 6(b)(4) and (b)(5) of the Act,\4\ which require, among other 
things, that the rules of an exchange (i) provide for the equitable 
allocation of reasonable dues, fees, and other charges among its 
members and issuers and other persons using its facilities, and (ii) 
are not designed to permit unfair discrimination between customers, 
issuers, brokers, or dealers.
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    \4\ 15 U.S.C. 78f(b)(4) and (b)(5).
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    According to the Exchange, the imposition of the proposed one-time 
consulting charge to new Sponsors of new Derivative Securities Products 
is necessary to adequately compensate the Exchange for all of the 
additional resources dedicated to such new Sponsors, such as the 
additional legal and business resources required to properly advise 
novice Sponsors through the listing process.\5\ The Exchange believes 
that the proposed consulting fee would enable the Exchange to continue 
to provide new issuers with the level of service necessary to 
successfully navigate an initial launch of a Derivative Securities 
Product. Moreover, the Exchange has represented that the proposed new 
Sponsor Fee is substantially below the

[[Page 41475]]

initial listing fee for issuers of traditional equity securities, e.g., 
common stock.\6\
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    \5\ See Notice, supra note 3.
    \6\ Id.
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    Accordingly, the Commission believes that the Exchange's proposed 
rule change provides for the equitable allocation of reasonable dues, 
fees, and other charges among issuers and further, does not unfairly 
discriminate between issuers given the additional time and resources 
dedicated to new Sponsors of Derivative Securities Products and given 
that the listing fees, including the one-time consulting fee, for 
Derivative Securities Products is substantially below the listing fee 
for traditional equity securities.\7\ Further, the Commission believes 
that the proposed one time consulting fee is equitable in that it 
applies uniformly to all new issuers of Derivative Securities Products. 
For the foregoing reasons, the Commission finds that the proposed rule 
change is consistent with the Act.\8\
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    \7\ The Commission notes that the current listing fee for 
Derivative Securities Products is $5,000, while the lowest listing 
fee for common stock is $100,000. See NYSE Arca Equities, Inc. 
Schedule of Fees and Charges for Exchange Services.
    \8\ 15 U.S.C. 78f(b)(4). In approving the proposed rule change, 
the Commission has considered the proposed rule's impact on 
efficiency, competition and capital formation. See 15 U.S.C. 78c(f).
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IV. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\9\ that the proposed rule change (SR-NYSEArca-2009-52) be, and it 
hereby is, approved.
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    \9\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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Elizabeth M. Murphy,
Secretary.
[FR Doc. E9-19623 Filed 8-14-09; 8:45 am]

BILLING CODE 8010-01-P