Document ID: SEC-2009-0903-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing of Proposed Rule Change To Amend the Schedule of Fees and Charges for Exchange Services
Posted Date: 2009-07-07T04:00Z

[Federal Register: July 7, 2009 (Volume 74, Number 128)]
[Notices]               
[Page 32209-32210]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr07jy09-105]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-60184; File No. SR-NYSEArca-2009-52]

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

June 29, 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 June 10, 2009, NYSE Arca, Inc. (``NYSE Arca'' or the 
``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 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

    NYSE Arca, Inc. (``NYSE Arca'' or ``Exchange'') [sic], 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 Listing Fees 
applicable to Derivative Securities Products under NYSE Arca Rules 
5.2(j)(3), 8.100, 8.200, 8.201, 8.202, 8.203, 8.204, 8.300, 8.500 and 
8.600 on NYSE Arca, LLC (``NYSE Arca Marketplace''), the equities 
facility of NYSE Arca Equities. The revised Fee Schedule is attached as 
Exhibit 5 [sic]. The text of the proposed rule change 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 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 Listing Fee applicable to Derivative Securities Products 
listed on the NYSE Arca Marketplace under 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), 
and 8.600 (Managed Fund Shares). 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.
    Under the current Fee Schedule for Derivative Securities Products, 
the Listing Fee is $5,000 and the Annual Fees range between $2,000 and 
$25,000 depending on the number of shares outstanding for each issue. 
The current Listing and Annual Fees applicable to Derivative Securities 
Products will remain unchanged and be applicable to all Sponsors of 
Derivative Securities Products. The proposed consulting charge would 
apply to all new Sponsors listing for the first time, a new Derivative 
Securities Product. Therefore, existing issuers, issuing a new 
Derivative Securities Product would not be charged the proposed 
consulting fee.
    The Exchange believes that the imposition of this proposed one time 
consulting charge to new Sponsors of new Derivative Securities Products 
is necessary in order to adequately compensate the Exchange for all of 
the additional Exchange resources dedicated to such new Sponsors, such 
as the additional legal and business resources required to properly 
advise novice Sponsors through the listing process. The Exchange 
dedicates extensive time and resources to new Sponsors in the way of 
conference calls, meetings, correspondences, etc., to educate such new 
Sponsors about the listing and approval process, a process that veteran 
Sponsors are already familiar with. The Exchange notes that the 
proposed new Sponsor Fee is substantially below the initial listing fee 
for issuers of traditional equity securities, e.g., common stock. The 
Exchange further believes that the proposed consulting fee will 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.
2. Statutory Basis
    NYSE Arca believes that the proposal is consistent with Section 
6(b) \4\ of the Securities Exchange Act of 1934 (the ``Act'') [sic], 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 the proposal is

[[Page 32210]]

consistent with Section 6(b)(5) \6\ of the Act, in particular, in that 
it does not unfairly discriminate against new Sponsors given the 
additional Exchange resources dedicated to such new Sponsors, such as 
the additional extensive time, legal and business resources required to 
properly advise novice Sponsors through the listing and approval 
process.\7\ The Exchange believes that the proposed consulting fee is 
reasonable, given the amount of resources dedicated by the Exchange to 
new issuers of new Derivative Securities Products. The Exchange 
believes that the proposed changes to the Fee Schedule are equitable in 
that they apply uniformly to all new issuers of new Derivative 
Securities Products.
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    \4\ 15 U.S.C. 78f(b).
    \5\ 15 U.S.C. 78f(b)(4).
    \6\ 15 U.S.C. 78f(b)(5).
    \7\ The Commission notes that the Exchange has represented that 
the proposed rule change does not unfairly discriminate against new 
Sponsors vis-[agrave]-vis Sponsors who have previously listed 
Derivative Securities Products or other first time issuers of other 
securities listed on the Exchange because of the additional 
extensive time, legal and business resources dedicated to new 
Sponsors. Telephone call between Sharon Lawson, Senior Special 
Counsel, and Terri Evans, Division of Trading and Markets, 
Commission, and Sudhir Bhattacharyya, Vice President, NYSE Euronext 
and Laura Morrison, Vice President, NYSE Euronext, June 18, 2009.
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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 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-2009-52 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-2009-52. 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, 100 F Street, 
NE., Washington, DC 20549, 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-2009-52 and should be submitted 
on or before July 28, 2009.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\8\
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    \8\ 17 CFR 200.30-3(a)(12).
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Elizabeth M. Murphy,
Secretary.
[FR Doc. E9-15900 Filed 7-6-09; 8:45 am]

BILLING CODE 8010-01-P