Document ID: SEC-2006-0116-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: National Stock Exchange
Posted Date: 2006-01-31T05:00Z

[Federal Register: January 31, 2006 (Volume 71, Number 20)]
[Notices]               
[Page 5098-5099]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr31ja06-82]                         

-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-53174; File No. SR-NSX-2006-01]

 
Self-Regulatory Organizations; National Stock Exchange; Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change To Amend Its 
Fee Schedule Contained in Exchange Rule 11.10(A) To Decrease the 
Monthly Transaction Fee Cap

January 24, 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 January 19, 2006, the National Stock Exchange (``NSX'' 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 NSX 
filed the proposed rule change pursuant to Section 19(b)(3)(A)(ii) 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.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \4\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend its fee schedule reflected in 
Exchange Rule 11.10(A) to reduce its monthly transaction fee cap in 
Exchange Rule 11.10(A)(i) from $200,000 to $50,000. The text of the 
proposed rule change is set forth below. Proposed new language is in 
italics; proposed deletions are in [brackets].
CHAPTER XI
Trading Rules
* * * * *
Rule 11.10 National Securities Trading System Fees
A. Trading Fees
    (a)-(h) No change.
    (i) Transaction Fee Cap. The monthly transaction fee charged to 
each member shall be equal to the lesser of (1) the amount assessed 
pursuant to Paragraph (A)(a) through (A)(h) of this Rule 11.10 or (2) 
[$200,000] $50,000.
    (j)-(r) No change.
* * * * *

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 NSX has prepared summaries, set forth in Sections A, 
B, and C below, of the most significant aspects of such statements.

[[Page 5099]]

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

1. Purpose
    The Exchange's fee schedule reflected in Exchange Rule 11.10(A) 
currently provides for fees payable by members based upon, among other 
things, transactions executed on the Exchange. The Exchange's current 
fee schedule provides for a monthly transaction fee cap of the lesser 
of the fees contained in Exchange Rule 11.10(A)(a) to 11.10(A)(h) or 
$200,000. With this filing, the Exchange proposes to reduce the dollar 
cap parameter from $200,000 to $50,000. This proposal will allow the 
Exchange to cap the transaction fee (which consists of trading fees in 
respect of agency, odd lot, professional agency, proprietary and 
preferencing transactions, as well as the fees associated with crosses 
and meets and the agency order mix fee) at $50,000 per month for 
competitive reasons in an attempt to preserve order flow. Please note 
that this transaction fee is calculated shortly after the month end 
activity (i.e., the transaction fee for January would be calculated in 
February) and would be collected thereafter (in February), after the 
effective date of this filing. Accordingly, the Exchange will utilize 
this new rule in the calculation of the January fee (which would 
represent a reduction of the transaction fees for all NSX members).
    The NSX believes the reduction of the fee cap will in no way impede 
the Exchange's current regulatory program or its ability to enforce 
compliance by its members with the Exchange's Rules or the Act.
2. Statutory Basis
    The NSX believes the proposed rule change is consistent with 
Section 6(b) of the Act,\5\ in general, and furthers the objectives of 
Section 6(b)(4) of the Act,\6\ in particular, in that it is designed to 
provide for the equitable allocation of reasonable dues, fees, and 
other charges.
---------------------------------------------------------------------------

    \5\ 15 U.S.C. 78f(b).
    \6\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

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.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    The Exchange has neither solicited nor recieved written comments on 
the proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The foregoing rule change establishes or changes a due, fee, or 
other charge applicable only to a member imposed by the Exchange, and, 
therefore, has become effective pursuant to Section 19(b)(3)(A)(ii) of 
the Act \7\ and subparagraph (f)(2) of Rule 19b-4 thereunder.\8\ 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.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \8\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

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 No. SR-NSX-2006-01 on the subject line.

Paper Comments

     Send paper comments in triplicate to Nancy M. Morris, 
Secretary, Securities and Exchange Commission, Station Place, 100 F 
Street, NE., Washington, DC 20549-9303.

All submissions should refer to File No. SR-NSX-2006-01. 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 Room. Copies of such 
filing will also be available for inspection and copying at the 
principal office of the NSX. 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-NSX-2006-01 and should be submitted on or before February 
21, 2006.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\9\
---------------------------------------------------------------------------

    \9\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Nancy M. Morris,
Secretary.
[FR Doc. E6-1177 Filed 1-30-06; 8:45 am]

BILLING CODE 8010-01-P