Document ID: SEC-2007-1203-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: NYSE Arca, Inc.
Posted Date: 2007-08-28T04:00Z

[Federal Register: August 28, 2007 (Volume 72, Number 166)]
[Notices]               
[Page 49341-49342]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr28au07-155]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-56295; File No. SR-NYSEArca-2007-82]

 
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change, as Modified by 
Amendment No. 1 Thereto, Amending Fees for the Entry of Mid-Point 
Passive Liquidity or Primary Sweep Orders

August 21, 2007.
    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 August 3, 2007, NYSE Arca, Inc. (``NYSE Arca'' or the ``Exchange''), 
through its wholly owned subsidiary NYSE Arca Equities, Inc. (``NYSE 
Arca Equities''), filed with the Securities and Exchange Commission 
(the ``Commission'') the proposed rule change as described in Items I, 
II, and III below, which Items have been substantially prepared by the 
Exchange. On August 20, 2007, the Exchange submitted Amendment No. 1 to 
the proposed rule change.\3\ The Exchange filed the proposed rule 
change pursuant to section 19(b)(3)(A) of the Act \4\ and Rule 19b-
4(f)(2) thereunder,\5\ which renders it effective upon filing with the 
Commission. The Commission is publishing this notice to solicit 
comments on the proposed rule change, as amended, from interested 
persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Amendment No. 1 replaced and superseded the original filing 
in its entirety.
    \4\ 15 U.S.C. 78s(b)(3)(A).
    \5\ 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 the section of its Schedule of Fees 
and Charges for Exchange Services (the ``Fee Schedule'') as it applies 
to orders submitted by Users \6\ designated as a (1) Mid-Point Passive 
Liquidity Order (``MPL Order'') \7\ or (2) Primary Sweep Order 
(``PSO'').\8\ The text of the proposed rule change is available at the 
Exchange, the Commission's Public Reference Room, and http://www.nyse.com
.

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    \6\ See NYSE Arca Rule 1.1(yy) for the definition of ``User.''
    \7\ See NYSE Arca Equities Rule 7.31(h)(5). See also Securities 
Exchange Act Release No. 56072 (July 13, 2007), 72 FR 39867 (July 
20, 2007) (SR-NYSEArca-2007-61).
    \8\ See NYSE Arca Equities Rule 7.31(kk). See also Securities 
Exchange Act Release No. 55896 (June 11, 2007), 72 FR 33795 (June 
19, 2007) (SR-NYSEArca-2007-50)
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II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, NYSE Arca 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 
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 Exchange proposes to amend its Fee Schedule as it applies to 
Users submitting any order that is designated as either an MPL Order or 
PSO.
    First, with the adoption of the MPL Order and the changes to the 
Fee Schedule proposed herein, any order designated as an MPL Order 
shall not be eligible for a per share credit, if such order executes 
against an incoming marketable order, regardless of order

[[Page 49342]]

type. According to the proposal, MPL Orders will be exempted from 
credits that currently appear in the following sections of the 
Exchange's Fee Schedule: NYSE ARCA MARKETPLACE: TRADE RELATED CHARGES, 
NYSE ARCA MARKETPLACE: MARKET MAKER FEES AND CHARGES, and the ETP 
Holder Transaction Credit and Market Data Revenue Sharing Credit under 
NYSE ARCA MARKETPLACE: OTHER FEES AND CHARGES. Consistent with the 
proposal to exempt MPL Orders from any credits, the Exchange will not 
assess fees to ETP Holders submitting MPL Orders for execution, as such 
orders shall not be viewed as removing liquidity from the NYSE Arca 
book.
    Secondly, consistent with the proposal to exempt Users submitting 
MPL Orders from any credits, the Exchange will not assess fees to Users 
submitting MPL Orders for execution, as such orders shall not be viewed 
as removing liquidity from the NYSE Arca book. Accordingly, MPL Orders 
will be exempted from fees that currently appear in the following 
sections of the Exchange's Fee Schedule: NYSE ARCA MARKETPLACE: TRADE 
RELATED CHARGES and NYSE ARCA MARKETPLACE: MARKET MAKER FEES AND 
CHARGES.
    Finally, the Exchange proposes to amend the Fee Schedule to exempt 
Users from the $0.001 per share fee for any order routed to the New 
York Stock Exchange, L.L.C. (``NYSE'') if such order is for a security 
listed on the NYSE and is designated as a PSO. Accordingly, PSOs will 
be exempted from the $0.001 per share fee for orders routed outside the 
book to the NYSE that currently appears in the following section of the 
Exchange's Fee Schedule: NYSE ARCA MARKETPLACE: TRADE RELATED CHARGES.
2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with 
section 6(b) of the Act \9\ in general and furthers the objectives of 
section 6(b)(4) \10\ in particular that it is intended to provide for 
the equitable allocation of reasonable dues, fees, and other charges 
among its members and other persons using its facilities.
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    \9\ 15 U.S.C. 78f(b).
    \10\ 15 U.S.C. 78f(b)(4).
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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

    Written comments on the proposed rule change were neither solicited 
nor received.

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

    The foregoing proposed rule change is subject to section 
19(b)(3)(A)(ii) of the Act \11\ and subparagraph (f)(2) of Rule 19b-4 
thereunder \12\ because it establishes or changes a due, fee, or other 
charge applicable only to a member imposed by a self-regulatory 
organization. Accordingly, the proposal is effective upon Commission 
receipt of the filing. 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.
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    \11\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \12\ 17 CFR 240.19b-4(f)(2).
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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-2007-82 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-NYSEArca-2007-82. 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 such filing also will be available for 
inspection and copying at the principal office of NYSE Arca. 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-2007-82 and should 
be submitted on or before September 18, 2007.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\13\
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    \13\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-16908 Filed 8-27-07; 8:45 am]

BILLING CODE 8010-01-P