Document ID: SEC-2010-0087-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; NYSE Arca, Inc.; Order Approving Proposed Rule Change Relating to the Listing Fee and Annual Fee Applicable to Derivative Securities Products
Posted Date: 2010-01-19T05:00Z

[Federal Register Volume 75, Number 11 (Tuesday, January 19, 2010)]
[Notices]
[Pages 2896-2897]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-801]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-61330; File No. SR-NYSEArca-2009-106

Self-Regulatory Organizations; NYSE Arca, Inc.; Order Approving 
Proposed Rule Change Relating to the Listing Fee and Annual Fee 
Applicable to Derivative Securities Products

January 12, 2010.
    On November 24, 2009, NYSE Arca, Inc. (``NYSE Arca'' or the 
``Exchange'') filed with the Securities and Exchange Commission (the 
``Commission''), pursuant to Section 19(b)(1) of the Securities 
Exchange Act of 1934 (the ``Act'') \1\ and Rule 19b-4 thereunder,\2\ a 
proposal to amend its Schedule of Fees and Charges for Exchange 
Services (``Fee Schedule'') to revise the listing and annual fees 
applicable to Derivative Securities Products (``DSPs'') listed on NYSE 
Arca, LLC (``NYSE Arca Marketplace''), the equities facility of NYSE 
Arca Equities. The proposed rule change was published for comment in 
the Federal Register on December 10, 2009.\3\ The Commission received 
no comments regarding 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. 61104 (December 3, 
2009), 74 FR 65568.
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    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 and, in 
particular, the requirements of Section 6 of the Act.\4\ Specifically, 
the Commission finds that the proposed rule change is consistent with 
Section 6(b)(4) of the Act,\5\ which requires that the rules of the 
exchange provide for the equitable allocation of reasonable dues, fees, 
and other charges among its members and issuers and other persons using 
its facilities. The Commission also finds that the proposed rule change 
is consistent with Section 6(b)(5) of the Act,\6\ which requires, among 
other things, that the rules of a national securities exchange be 
designed to promote just and equitable principles of trade, to remove 
impediments to and perfect the mechanism of a free and open market and 
a national market system, and, in general, to protect investors and the 
public interest.
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    \4\ 15 U.S.C. 78f. In approving this proposed rule change, the 
Commission has considered the proposed rule's impact on efficiency, 
competition, and capital formation. 15 U.S.C. 78c(f).
    \5\ 15 U.S.C. 78f(b)(4).
    \6\ 15 U.S.C. 78f(b)(5).
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    NYSE Arca proposes to revise its listing fee and annual fee 
applicable to DSPs listed on the NYSE Arca Marketplace.\7\ 
Specifically, NYSE Arca proposes to increase the listing fee for each 
issue of DSPs from current $5,000 to $7,500, except Managed Fund Shares 
listed under NYSE Arca Equities Rule 8.600 and Managed Trust Securities 
listed under NYSE Arca Equities Rule 8.700. For Managed Fund Shares and 
Managed Trust Securities, the Exchange proposes to increase the listing 
fee from current $5,000 to $10,000.
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    \7\ As specified in footnote 3 to the Fee Schedule, for the 
purposes of the Fee Schedule, the term ``Derivative Securities 
Products'' includes securities described in NYSE Arca Equities Rules 
5.2(j)(3) (Investment Company Units); 8.100 (Portfolio Depositary 
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); 8.600 (Managed Fund 
Shares); and 8.700 (Managed Trust Securities).
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    The Exchange also proposes to amend the annual fee applicable to 
DSPs. Except Managed Fund Shares and Managed Trust Securities, the 
Exchange proposes to increase the annual fee for DSPs from current 
$2,000 to $5,000 for each issue with fewer than 25 million shares 
outstanding; from current $4,000 to $7,500 for each issue with 25 
million

[[Page 2897]]

to 49,999,999 shares outstanding; and from current $8,000 to $10,000 
for each such issue with 50 million to 99,999,999 shares outstanding. 
For DSP issues that have 100 million shares or more outstanding, except 
Managed Fund Shares and Managed Trust Securities, the annual fee would 
remain unchanged.
    For Managed Fund Shares and Managed Trust Securities, the Exchange 
proposes to impose an annual fee for each such issue as follows:

                           Shares Outstanding
                              [Each issue]
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                                                              Annual Fee
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Less than 25 million.......................................       $7,500
25 million up to 49,999,999................................       10,000
50 million up to 99,999,999................................       12,500
100 million up to 249,999,999..............................       20,000
250 million up to 499,999,999..............................       30,000
500 million and over.......................................       40,000
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    The Exchange represents that, as the industry evolves with 
innovative product lines for investors, the proposed increases in the 
listing fee and the annual fee support the increased costs incurred by 
the Exchange for the rule making process, listing administration 
process, issuer services, and consultative legal services provided to 
issuers. Additionally, the Exchange states that a higher listing fee 
and annual fee for Managed Fund Shares and Managed Trust Securities 
reflect the greater resources the Exchange generally expends to provide 
services in connection with the listing and administration of these 
securities. The Commission finds that the proposed rule change is 
designed to equitably allocate reasonable dues, fees, and other charges 
among issuers of DSPs, and is consistent with the requirements of the 
Act.\8\
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    \8\ 15 U.S.C. 78f.
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    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\9\ that the proposed rule change (SR-NYSEArca-2009-106), be, and 
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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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-801 Filed 1-15-10; 8:45 am]
BILLING CODE 8011-01-P