Document ID: SEC-2008-1513-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NYSE Arca, Inc.
Posted Date: 2008-11-05T05:00Z

[Federal Register: November 5, 2008 (Volume 73, Number 215)]
[Notices]               
[Page 65916-65917]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr05no08-106]                         

[[Page 65916]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-58875; File No. SR-NYSEArca-2008-117]

 
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change Amending its 
Schedule of Fees and Charges for Exchange Services

October 29, 2008.
    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 October 28, 2008, NYSE Arca, Inc. (``NYSE Arca'' 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 Exchange filed the 
proposed rule change pursuant to section 19(b)(3)(A) of the Act \3\ and 
Rule 19b-4(f)(2) thereunder,\4\ which renders the proposal effective 
upon filing with the Commission. 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.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(2).
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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 its Schedule of Fees and Charges for 
Exchange Services. The text of the proposed rule change is attached as 
Exhibit 5 to the proposed rule change filing, is available on the 
Exchange's Web site at http://www.nyse.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 Exchange 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 purpose of this filing is to amend the Royalty Fees section of 
the NYSE Arca Schedule of Rates and Charges (``Schedule'') by adding a 
new fee for transactions in Foreign Currency Options (``FCO'').
    The Exchange recently filed with the U.S. Securities and Exchange 
Commission (``Commission``) a proposal that will allow the Exchange to 
list and trade FCOs.\5\ The Exchange intends to license the contract 
terms governing FCOs from the International Securities Exchange 
(``ISE``) and in turn list and trade specific ISE proprietary FCO 
products, commonly known as FX ISE Foreign Currency Options.
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    \5\ See Securities and Exchange Commission Release No. 34-58800, 
October 16, 2008 (notice of immediate effectiveness of SR-NYSEArca-
2008-109).
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    As a part of this license agreement with the ISE, NYSE Arca will 
pay a fee to the ISE, on every FCO contract traded on the Exchange. 
Effective with this filing, the Exchange will assess a $0.10 Royalty 
Fee on a per contract basis for Firm, Broker/Dealer, and Market Maker 
transactions in the following FCOs.
    British Pound (BPX), Japanese Yen (YUK), Canadian Dollar (CDD), 
Australian Dollar (AUX), Euro (EUI), Swiss Franc (SFC).
    The Exchange also proposes to amend the existing Schedule in order 
to expand the group of issues eligible for Post / Take pricing. 
Currently, NYSE Arca offers market participants a Post / Take pricing 
model for electronically executed transactions in issues that are 
included in the Penny Pilot. In addition to the issues included in the 
Penny Pilot, FCO's will also be traded in one cent increments. The 
Exchange proposes to modify the Schedule to make FCO's eligible for 
Post / Take pricing.\6\ The Exchange intends to apply this fee 
structure in conjunction with the launch of trading in FCOs on the 
Exchange.
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    \6\ The Exchange has not yet implemented its Tier 1 Post/Take 
pricing. As a result, the basic Post/Take pricing structure 
applicable to electronic executions in Penny Pilot Issues shall 
apply.
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2. Statutory Basis
    The Exchange believes that the proposal is consistent with section 
6(b) of the Act, in general, and section 6(b)(4), in particular, in 
that it provides for the equitable allocation of dues, fees and other 
charges among its members and other market participants that use the 
trading facilities of NYSE Arca. The Exchange is proposing to (i) 
charge its Users the same royalty fee it pays to the ISE pursuant to 
its license to list and trade FCOs on the Exchange and (ii) modify the 
Schedule to make FCO's eligible for Post/Take pricing.

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 proposed rule change is effective upon filing pursuant to 
section 19(b)(3)(A)(ii) of the Act and SEC Rule 19b-4(f)(2) thereunder 
in that it establishes or changes a due, fee, or other charge imposed 
on members by the self-regulatory organization.
    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-NYSEArca-2008-117 on the subject line.

Paper Comments

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

    All submissions should refer to File Number SR-NYSEArca-2008-117. 
This

[[Page 65917]]

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 will also 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 No. SR-NYSEArca-2008-117 and should be submitted on or before 
November 26, 2008.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\7\
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    \7\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Acting Secretary.
 [FR Doc. E8-26345 Filed 11-4-08; 8:45 am]

BILLING CODE 8011-01-P