Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to the Establishment of a NYSE TradeWorks Usage Fee, 29205-29206 [E6-7641]

Download as PDF Federal Register / Vol. 71, No. 97 / Friday, May 19, 2006 / Notices At any time within 60 days of the filing of such 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.26 IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change, as amended, is consistent with the Act. Comments may be submitted by any of the following methods: the principal office of NASDAQ. 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–NASDAQ–2006–007 and should be submitted on or before June 9, 2006. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.27 Jill M. Peterson, Assistant Secretary. [FR Doc. 06–4689 Filed 5–18–06; 8:45 am] BILLING CODE 8010–01–M Electronic Comments • Use the Commission’s Internet comment form (http://www.sec.gov/ rules/sro.shtml); or • Send an e-mail to rulecomments@sec.gov. Please include File Number SR–NASDAQ–2006–007 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 20549–1090. wwhite on PROD1PC61 with NOTICES All submissions should refer to File Number SR–NASDAQ–2006–007. 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 also will be available for inspection and copying at prior to the date of the filing of the proposed rule change. 26 See Section 19(b)(3)(C) of the Act, 15 U.S.C. 78s(b)(3)(C). For the purposes of calculating the 60day period within which the Commission may summarily abrogate the proposed rule change under Section 19(b)(3)(C) of the Act, the Commission considers that period to commence on May 8, 2006, the date Nasdaq filed Amendment No. 1 to the proposed rule change. See 15 U.S.C. 78s(b)(3)(C). VerDate Aug<31>2005 17:37 May 18, 2006 Jkt 208001 SECURITIES AND EXCHANGE COMMISSION [Release No. 34–53800; File No. SR–NYSE– 2006–26] Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to the Establishment of a NYSE TradeWorks Usage Fee May 15, 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 April 20, 2006, the New York Stock Exchange LLC (‘‘NYSE’’ 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 NYSE. The Exchange has designated this proposal as one establishing or changing a due, fee or other charge imposed by the Exchange under Section 19(b)(3)(A),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. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to establish a fee to be paid by Member Organizations 5 that wish to continue to use the Exchange’s proprietary order 27 17 CFR 200.30–3(a)(12). 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). 5 See NYSE Rule 2(b). 1 15 PO 00000 Frm 00087 Fmt 4703 Sfmt 4703 29205 management system, NYSE TradeWorksSM (‘‘TradeWorks’’),6 for the period from the date of this filing (April 20, 2006) until December 31, 2006. The text of the proposed rule change is available on the NYSE’s Web site at http://www.nyse.com, the NYSE’s Office of the Secretary, 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, NYSE included statements concerning the purpose of, and basis for, the proposed rule change and discussed any comments it received on the proposal. The text of these statements may be examined at the places specified in Item IV below. NYSE 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 According to the NYSE, it has provided TradeWorks to Member Organizations free of charge. The Exchange expects to be able to introduce a new order management system in place of TradeWorks at the beginning of 2007. In the interim, the Exchange had planned to discontinue TradeWorks as of the end of March 2006, and estimated that this would save it approximately $2 million over the course of the nine months before the scheduled implementation of the new system. However, a number of Member Organizations expressed a desire to continue to use TradeWorks for the remainder of 2006. To accommodate this request, the Exchange will continue to provide TradeWorks to those Member Organizations who have agreed to bear a portion of the cost of maintaining the system for that period. The Exchange proposes that each Member Organization wishing to continue to use TradeWorks pay a portion of the costs 6 According to the Exchange, the NYSE TradeWorks is a messaging system, which enables Member Organizations’ broker booths on the floor to communicate with their trading desks and floor brokers. TradeWorks is not used to send orders to the floor. Instead, TradeWorks is primarily used by the brokers’ booth clerks to receive requests for ‘‘market looks’’ (quick evaluations of trading interest in a particular security) from the trading desk and route them to the floor brokers to respond to those requests. Telephone conversation between John Carey, Assistant General Counsel, NYSE, and Johnna B. Dumler, Attorney, Division of Market Regulation, Commission, on May 12, 2006. E:\FR\FM\19MYN1.SGM 19MYN1 29206 Federal Register / Vol. 71, No. 97 / Friday, May 19, 2006 / Notices associated with the maintenance of TradeWorks. The Exchange will bear the remaining cost. According to the Exchange, this arrangement will entail a payment by each Member Organization who elects to continue to use TradeWorks of $10,000 for each percentage point of usage attributable to that Member Organization, allocated according to each Member Organization’s usage of TradeWorks based on usage data for February 2006. The fee will be billed in nine monthly installments. The Exchange submits that seventeen Member Organizations, representing approximately 35% of February 2006 usage, have agreed to continue to use TradeWorks on these terms, representing a total billing of $358,500. The Exchange will not permit Member Organizations to use TradeWorks that have not agreed in advance to the foregoing payment as a fee covering the entire period from the date of this filing until December 31, 2006. 2. Statutory Basis The NYSE believes that the proposed rule change is consistent with Section 6(b) of the Act,7 in general, and furthers the objectives of Section 6(b)(4) of the Act,8 in particular, in that it is designed to assure the equitable allocation of reasonable dues, fees and other charges among its members and issuers and other persons using its facilities. B. Self-Regulatory Organization’s Statement on Burden on Competition The NYSE 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. wwhite on PROD1PC61 with NOTICES 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 foregoing rule change has become effective pursuant to Section 19(b)(3)(A) of the Act 9 and subparagraph (f)(2) of Rule 19b–4 thereunder,10 since it establishes or changes a due, fee or other charge imposed by the Exchange. At any time within 60 days of the filing of such proposed rule change, the 7 15 U.S.C. 78f(b). U.S.C. 78f(b)(4). 9 15 U.S.C. 78s(b)(3)(A). 10 17 CFR 240.19b–4(f)(2). 8 15 VerDate Aug<31>2005 17:37 May 18, 2006 Jkt 208001 Commission may summarily abrogate such rule change if it appears to the Commission that such action is necessary of appropriate in the public interest, for the protection of investors, or otherwise in the furtherance of the purposes of the Act. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.11 Jill M. Peterson, Assistant Secretary. [FR Doc. E6–7641 Filed 5–18–06; 8:45 am] BILLING CODE 8010–01–P 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 rulecomments@sec.gov. Please include File Number SR–NYSE–2006–26 on the subject line. SECURITIES AND EXCHANGE COMMISSION [Release No. 34–53794; File No. SR–OCC– 2005–23] Self-Regulatory Organizations; The Options Clearing Corporation; Notice of Filing of a Proposed Rule Change Relating to the Use of Margin Deposit in the Event of a Clearing Member Liquidation May 11, 2006. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’),1 notice is hereby given that on December 16, 2004, The Options Paper Comments Clearing Corporation (‘‘OCC’’) filed with • Send paper comments in triplicate the Securities and Exchange to Nancy M. Morris, Secretary, Commission (‘‘Commission’’) the Securities and Exchange Commission, proposed rule change as described in 100 F Street, NE., Washington DC Items I, II, and III below, which items 20549–1090. have been prepared primarily by OCC. The Commission is publishing this All submissions should refer to File notice to solicit comments on the Number SR–NYSE–2006–26. This file proposed rule change from interested number should be included on the subject line if e-mail is used. To help the persons. Commission process and review your I. Self-Regulatory Organization’s comments more efficiently, please use Statement of the Terms of Substance of only one method. The Commission will the Proposed Rule Change post all comments on the Commission’s Internet Web site (http://www.sec.gov/ The proposed rule change would have rules/sro.shtml). Copies of the two complementary purposes. It would submission, all subsequent (1) eliminate certain unnecessary amendments, all written statements restrictions on the use of margin in the with respect to the proposed rule liquidation of a suspended Clearing change that are filed with the Member under Chapter XI of the Rules Commission, and all written and (2) ensure that other restrictions on communications relating to the the use of margin that are appropriately proposed rule change between the imposed in the By-Laws are properly Commission and any person, other than reflected in Chapter XI of the Rules. those that may be withheld from the II. Self-Regulatory Organization’s public in accordance with the Statement of the Purpose of, and provisions of 5 U.S.C. 552, will be Statutory Basis for, the Proposed Rule available for inspection and copying in Change the Commission’s Public Reference Section. Copies of such filing also will In its filing with the Commission, be available for inspection and copying OCC included statements concerning at the principal office of the NYSE. All the purpose of and basis for the comments received will be posted proposed rule change and discussed any without change; the Commission does comments it received on the proposed not edit personal identifying rule change. The text of these statements information from submissions. You may be examined at the places specified should submit only information that in Item IV below. OCC has prepared you wish to make available publicly. All summaries, set forth in sections (A), (B), submissions should refer to File No. SR–NYSE–2006–26 and should be 11 17 CFR 200.30–3(a)(12). submitted on or before June 9, 2006. 1 15 U.S.C. 78s(b)(1). PO 00000 Frm 00088 Fmt 4703 Sfmt 4703 E:\FR\FM\19MYN1.SGM 19MYN1

Agencies

[Federal Register Volume 71, Number 97 (Friday, May 19, 2006)]
[Notices]
[Pages 29205-29206]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-7641]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-53800; File No. SR-NYSE-2006-26]


Self-Regulatory Organizations; New York Stock Exchange LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
Relating to the Establishment of a NYSE TradeWorks Usage Fee

May 15, 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 April 20, 2006, the New York Stock Exchange LLC (``NYSE'' 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 NYSE. The Exchange 
has designated this proposal as one establishing or changing a due, fee 
or other charge imposed by the Exchange under Section 19(b)(3)(A),\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 establish a fee to be paid by Member 
Organizations \5\ that wish to continue to use the Exchange's 
proprietary order management system, NYSE TradeWorksSM 
(``TradeWorks''),\6\ for the period from the date of this filing (April 
20, 2006) until December 31, 2006.
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    \5\ See NYSE Rule 2(b).
    \6\ According to the Exchange, the NYSE TradeWorks is a 
messaging system, which enables Member Organizations' broker booths 
on the floor to communicate with their trading desks and floor 
brokers. TradeWorks is not used to send orders to the floor. 
Instead, TradeWorks is primarily used by the brokers' booth clerks 
to receive requests for ``market looks'' (quick evaluations of 
trading interest in a particular security) from the trading desk and 
route them to the floor brokers to respond to those requests. 
Telephone conversation between John Carey, Assistant General 
Counsel, NYSE, and Johnna B. Dumler, Attorney, Division of Market 
Regulation, Commission, on May 12, 2006.
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    The text of the proposed rule change is available on the NYSE's Web 
site at http://www.nyse.com, the NYSE's Office of the Secretary, 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, NYSE included statements 
concerning the purpose of, and basis for, the proposed rule change and 
discussed any comments it received on the proposal. The text of these 
statements may be examined at the places specified in Item IV below. 
NYSE 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
    According to the NYSE, it has provided TradeWorks to Member 
Organizations free of charge. The Exchange expects to be able to 
introduce a new order management system in place of TradeWorks at the 
beginning of 2007. In the interim, the Exchange had planned to 
discontinue TradeWorks as of the end of March 2006, and estimated that 
this would save it approximately $2 million over the course of the nine 
months before the scheduled implementation of the new system. However, 
a number of Member Organizations expressed a desire to continue to use 
TradeWorks for the remainder of 2006. To accommodate this request, the 
Exchange will continue to provide TradeWorks to those Member 
Organizations who have agreed to bear a portion of the cost of 
maintaining the system for that period. The Exchange proposes that each 
Member Organization wishing to continue to use TradeWorks pay a portion 
of the costs

[[Page 29206]]

associated with the maintenance of TradeWorks. The Exchange will bear 
the remaining cost.
    According to the Exchange, this arrangement will entail a payment 
by each Member Organization who elects to continue to use TradeWorks of 
$10,000 for each percentage point of usage attributable to that Member 
Organization, allocated according to each Member Organization's usage 
of TradeWorks based on usage data for February 2006. The fee will be 
billed in nine monthly installments. The Exchange submits that 
seventeen Member Organizations, representing approximately 35% of 
February 2006 usage, have agreed to continue to use TradeWorks on these 
terms, representing a total billing of $358,500. The Exchange will not 
permit Member Organizations to use TradeWorks that have not agreed in 
advance to the foregoing payment as a fee covering the entire period 
from the date of this filing until December 31, 2006.
2. Statutory Basis
    The NYSE believes that the proposed rule change is consistent with 
Section 6(b) of the Act,\7\ in general, and furthers the objectives of 
Section 6(b)(4) of the Act,\8\ in particular, in that it is designed to 
assure the equitable allocation of reasonable dues, fees and other 
charges among its members and issuers and other persons using its 
facilities.
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    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The NYSE 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 foregoing rule change has become effective pursuant to Section 
19(b)(3)(A) of the Act \9\ and subparagraph (f)(2) of Rule 19b-4 
thereunder,\10\ since it establishes or changes a due, fee or other 
charge imposed by the Exchange.
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    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 17 CFR 240.19b-4(f)(2).
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    At any time within 60 days of the filing of such proposed rule 
change, the Commission may summarily abrogate such rule change if it 
appears to the Commission that such action is necessary of appropriate 
in the public interest, for the protection of investors, or otherwise 
in the 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-NYSE-2006-26 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-NYSE-2006-26. 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 Section. Copies of such 
filing also will be available for inspection and copying at the 
principal office of the NYSE. 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-NYSE-2006-26 and should be submitted on or before June 9, 
2006.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. E6-7641 Filed 5-18-06; 8:45 am]
BILLING CODE 8010-01-P