Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing of Proposed Rule Change Relating to a Pilot Program for NYSE Arca BBO Data, 33500-33501 [06-5301]

Download as PDF 33500 Federal Register / Vol. 71, No. 111 / Friday, June 9, 2006 / Notices For the Commission, by the Division of Market Regulation, pursuant to delegated authority.12 Jill M. Peterson, Assistant Secretary. [FR Doc. 06–5300 Filed 6–7–06; 1:12 pm] 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 BILLING CODE 8010–01–P 1. Purpose SECURITIES AND EXCHANGE COMMISSION [Release No. 34–53591; File No. SR– NYSEArca–2006–23] Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing of Proposed Rule Change Relating to a Pilot Program for NYSE Arca BBO Data June 7, 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 May 23, 2006, the NYSE Arca, Inc. (‘‘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 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, through its wholly owned subsidiary, NYSE Arca Equities, Inc. (‘‘NYSE Arca’’), proposes to establish as a six-month pilot program market data fees for the receipt and use of market data relating to the Exchange’s best bids and offers. The text of the proposed rule change is available on the Exchange’s Web site (http:// www.archipelago.com), at the Exchange’s Office of the Secretary, and at the Commission’s Public Reference Room. jlentini on PROD1PC65 with NOTICES 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 Exchange has prepared summaries, set 12 17 CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. VerDate Aug<31>2005 16:01 Jun 08, 2006 Jkt 208001 (a) The Service. Through NYSE Arca, L.L.C., the equities trading facility of NYSE Arca, the Exchange makes ArcaBookSM, a compilation of all limit orders resident in the NYSE Arca limit order book, available on a real-time basis. The Exchange proposes to permit vendors to cull best bids and offers from its ArcaBookSM product to create an NYSE Arca Best-Bid-and-Offer service for distribution to its professional and nonprofessional subscribers (a ‘‘BBO Service’’).3 (b) Proposed Fees. Contemporaneously with the proposed rule change, the Exchange has submitted another proposed rule change that proposes to establish market data fees and a Market Data Fee Schedule for the receipt and use of certain of the Exchange’s market data services, including ArcaBook (‘‘ArcaBook Fee Filing’’).4 The ArcaBook fees include access fees and professional and nonprofessional device fees. With the proposed rule change, the Exchange proposes as a six-month pilot program to supplement those fees and that fee schedule with the addition of device fees for the Exchange’s BBO Service. The Exchange is proposing to set the device fee for professional subscribers who receive BBO Services for both ‘‘CTA Plan 5 and ETF Securities’’ and ‘‘UTP Plan Securities’’ (but no other bids and offers that are included in ArcaBook) at $15, rather than the combined fee of $30 that would otherwise apply to the receipt of ArcaBook data for both CTA Plan and ETF Securities and UTP Plan Securities. The combined monthly professional subscriber device fee of $15 compares 3 The Exchange notes that it makes available to vendors the best bids and offers that are included in ArcaBook data no earlier than it makes those best bids and offers available to the processors under the Consolidated Quotation System Plan (‘‘CQ Plan’’) and the Reporting Plan for Nasdaq/National Market System Securities Traded on an Exchange on an Unlisted or Listed Basis (‘‘UTP Plan’’). The Commission made minor clarifications to the description of the service contained in this paragraph pursuant to telephone conversations between Janet Angstadt, Acting General Counsel, NYSE Arca, Inc. and Kelly Riley, Assistant Director, Commission, on June 6, 2006. 4 See Securities Act Release No. 34–53592, June 7, 2006. 5 Consolidated Tape Association Plan (‘‘CTA Plan’’). PO 00000 Frm 00067 Fmt 4703 Sfmt 4703 favorably with comparable device fees in the industry for similar products. For instance, the 14-tier rate schedule under the CTA Plan imposes device fees ranging from $127.25 for a professional subscriber using one device to $18.75 for a professional subscriber using more than 10,000 devices. Under the UTP Plan, the comparable fee is $20. Similarly, the Exchange is proposing to set the device fee for nonprofessional subscribers who receive both BBO Services (but no other bids and offers that are included in ArcaBook) at $5, rather than the combined fee of $10 that would otherwise apply. In differentiating between professional and nonprofessional subscribers, the Exchange proposes to apply the same criteria for qualification as a nonprofessional subscriber as the CTA and CQ Plan Participants use, as described in the proposed ArcaBook Fee Filing. The $5 nonprofessional subscriber fee is higher than the nonprofessional subscriber fees that are payable under the CQ and UTP Plans in recognition of the fact that NYSE Arca provides the data to vendors simultaneously with its delivery of the data to the processors under the CQ and UTP Plans. This allows vendors to receive the best bids and offers, and to distribute that data to their subscribers, more quickly than under the CQ and UTP Plans because it eliminates the processing time of the Plans’ processors. The ArcaBook Fee Filing establishes a monthly maximum amount of device fees payable by any broker-dealer in respect of certain subscribers that maintain brokerage accounts with the broker-dealer. The Exchange proposes to subject BBO Service fees payable by any broker-dealer in respect of those same subscribers to that monthly maximum. NYSE Arca believes that the proposed BBO Service fees would reflect an equitable allocation of its overall costs to users of its facilities. (c) Free Trial Period. As an incentive to prospective subscribers, the Exchange proposes to offer subscribers the right to receive BBO Services free of charge for the duration of the calendar month in which the subscriber first becomes authorized to receive the data. For example, if a subscriber (whether professional or nonprofessional) becomes authorized to receive the NYSE Arca BBO Services on May 10, the device fees set forth in the proposed rule change will not apply during that month of May. 2. Statutory Basis The basis under the Act for the proposed rule change are the E:\FR\FM\09JNN1.SGM 09JNN1 Federal Register / Vol. 71, No. 111 / Friday, June 9, 2006 / Notices requirement under Section 6(b)(4) 6 that an exchange have rules that provide for the equitable allocation of reasonable dues, fees and other charges among its members and other persons using its facilities and the requirements under Section 6(b)(5) 7 that the rules of an exchange be designed to promote just and equitable principles of trade and not to permit unfair discrimination between customers, issuers, brokers or dealers. B. Self-Regulatory Organization’s Statement on Burden on Competition The Exchange believes that the proposed fee change will not impose any burden on competition that is not necessary or appropriate in the 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 The Exchange has not solicited, and does not intend to solicit, comments regarding the proposed rule change. The Exchange has not received any unsolicited written comments from Exchange participants or other interested parties. 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 NYSE consents, the Commission will: A. By order approve such 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: jlentini on PROD1PC65 with NOTICES 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 6 15 7 15 U.S.C. 78f(b)(4). U.S.C. 78f(b)(5). VerDate Aug<31>2005 16:01 Jun 08, 2006 Number SR–NYSEArca–2006–23 on the subject line. (FEMA–1605–DR) , dated August 29, 2005. Incident: Hurricane Katrina. Paper Comments Incident Period: August 29, 2005 • Send paper comments in triplicate through September 26, 2005. to Nancy M. Morris, Secretary, Effective Date: May 31, 2006. Securities and Exchange Commission, EIDL Loan Application Deadline Date: Station Place, 100 F Street, NE., June 28, 2006. Washington, DC 20549–1090. ADDRESSES: Submit completed loan All submissions should refer to File applications to: U.S. Small Business Number SR–NYSEArca–2006–23. This Administration, National Processing file number should be included on the and Disbursement Center, 14925 subject line if e-mail is used. To help the Kingsport Road, Fort Worth, TX 76155. Commission process and review your FOR FURTHER INFORMATION CONTACT: A. comments more efficiently, please use Escobar, Office of Disaster Assistance, only one method. The Commission will U.S. Small Business Administration, post all comments on the Commission’s 409 3rd Street, SW., Suite 6050, Internet Web site (http://www.sec.gov/ Washington, DC 20416. rules/sro.shtml). Copies of the SUPPLEMENTARY INFORMATION: The notice submission, all subsequent of the President’s major disaster amendments, all written statements declaration for the State of Alabama, with respect to the proposed rule dated August 29, 2005, is hereby change that are filed with the amended to extend the deadline for Commission, and all written filing applications for economic injury communications relating to the as a result of this disaster to June 28, proposed rule change between the 2006. Commission and any person, other than All other information in the original those that may be withheld from the declaration remains unchanged. public in accordance with the (Catalog of Federal Domestic Assistance provisions of 5 U.S.C. 552, will be Numbers 59002 and 59008) available for inspection and copying in the Commission’s Public Reference Herbert L. Mitchell, Room. Copies of such filing also will be Associate Administrator for Disaster available for inspection and copying at Assistance. the principal office of the Exchange. All [FR Doc. E6–8967 Filed 6–8–06; 8:45 am] comments received will be posted BILLING CODE 8025–01–P without change; the Commission does not edit personal identifying information from submissions. You SMALL BUSINESS ADMINISTRATION should submit only information that you wish to make publicly available. All [Disaster Declaration #10205 and #10206] submissions should refer to File Louisiana Disaster Number LA–00004 Number SR–NYSEArca–2006–23 and AGENCY: U.S. Small Business should be submitted on or before June Administration. 30, 2006. ACTION: Amendment 12. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.8 Jill M. Peterson, Assistant Secretary. [FR Doc. 06–5301 Filed 6–7–06; 1:12 pm] BILLING CODE 8010–01–P SMALL BUSINESS ADMINISTRATION [Disaster Declaration #10180 and #10181] Alabama Disaster Number AL–00003 U.S. Small Business Administration. ACTION: Amendment 6. AGENCY: SUMMARY: This is an amendment of the Presidential declaration of a major disaster for the State of Alabama 8 17 Jkt 208001 33501 PO 00000 CFR 200.30–3(a)(12). Frm 00068 Fmt 4703 Sfmt 4703 SUMMARY: This is an amendment of the Presidential declaration of a major disaster for the State of Louisiana (FEMA–1607–DR) , dated September 24, 2005. Incident: Hurricane Rita. Incident Period: September 23, 2005 through November 1, 2005. Effective Date: May 31, 2006. EIDL Loan Application Deadline Date: July 26, 2006. ADDRESSES: Submit completed loan applications to: U.S. Small Business Administration, National Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155. FOR FURTHER INFORMATION CONTACT: A. Escobar, Office of Disaster Assistance, U.S. Small Business Administration, 409 3rd Street, SW., Suite 6050, Washington, DC 20416. E:\FR\FM\09JNN1.SGM 09JNN1

Agencies

[Federal Register Volume 71, Number 111 (Friday, June 9, 2006)]
[Notices]
[Pages 33500-33501]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 06-5301]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-53591; File No. SR-NYSEArca-2006-23]


Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing 
of Proposed Rule Change Relating to a Pilot Program for NYSE Arca BBO 
Data

June 7, 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 May 23, 2006, the NYSE Arca, Inc. (``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 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.
---------------------------------------------------------------------------

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

    The Exchange, through its wholly owned subsidiary, NYSE Arca 
Equities, Inc. (``NYSE Arca''), proposes to establish as a six-month 
pilot program market data fees for the receipt and use of market data 
relating to the Exchange's best bids and offers. The text of the 
proposed rule change is available on the Exchange's Web site (http://
www.archipelago.com), at the Exchange'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, 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 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
    (a) The Service. Through NYSE Arca, L.L.C., the equities trading 
facility of NYSE Arca, the Exchange makes ArcaBook\SM\, a compilation 
of all limit orders resident in the NYSE Arca limit order book, 
available on a real-time basis. The Exchange proposes to permit vendors 
to cull best bids and offers from its ArcaBookSM product to 
create an NYSE Arca Best-Bid-and-Offer service for distribution to its 
professional and nonprofessional subscribers (a ``BBO Service'').\3\
---------------------------------------------------------------------------

    \3\ The Exchange notes that it makes available to vendors the 
best bids and offers that are included in ArcaBook data no earlier 
than it makes those best bids and offers available to the processors 
under the Consolidated Quotation System Plan (``CQ Plan'') and the 
Reporting Plan for Nasdaq/National Market System Securities Traded 
on an Exchange on an Unlisted or Listed Basis (``UTP Plan'').
    The Commission made minor clarifications to the description of 
the service contained in this paragraph pursuant to telephone 
conversations between Janet Angstadt, Acting General Counsel, NYSE 
Arca, Inc. and Kelly Riley, Assistant Director, Commission, on June 
6, 2006.
---------------------------------------------------------------------------

    (b) Proposed Fees. Contemporaneously with the proposed rule change, 
the Exchange has submitted another proposed rule change that proposes 
to establish market data fees and a Market Data Fee Schedule for the 
receipt and use of certain of the Exchange's market data services, 
including ArcaBook (``ArcaBook Fee Filing'').\4\ The ArcaBook fees 
include access fees and professional and nonprofessional device fees.
---------------------------------------------------------------------------

    \4\ See Securities Act Release No. 34-53592, June 7, 2006.
---------------------------------------------------------------------------

    With the proposed rule change, the Exchange proposes as a six-month 
pilot program to supplement those fees and that fee schedule with the 
addition of device fees for the Exchange's BBO Service. The Exchange is 
proposing to set the device fee for professional subscribers who 
receive BBO Services for both ``CTA Plan \5\ and ETF Securities'' and 
``UTP Plan Securities'' (but no other bids and offers that are included 
in ArcaBook) at $15, rather than the combined fee of $30 that would 
otherwise apply to the receipt of ArcaBook data for both CTA Plan and 
ETF Securities and UTP Plan Securities.
---------------------------------------------------------------------------

    \5\ Consolidated Tape Association Plan (``CTA Plan'').
---------------------------------------------------------------------------

    The combined monthly professional subscriber device fee of $15 
compares favorably with comparable device fees in the industry for 
similar products. For instance, the 14-tier rate schedule under the CTA 
Plan imposes device fees ranging from $127.25 for a professional 
subscriber using one device to $18.75 for a professional subscriber 
using more than 10,000 devices. Under the UTP Plan, the comparable fee 
is $20.
    Similarly, the Exchange is proposing to set the device fee for 
nonprofessional subscribers who receive both BBO Services (but no other 
bids and offers that are included in ArcaBook) at $5, rather than the 
combined fee of $10 that would otherwise apply. In differentiating 
between professional and nonprofessional subscribers, the Exchange 
proposes to apply the same criteria for qualification as a 
nonprofessional subscriber as the CTA and CQ Plan Participants use, as 
described in the proposed ArcaBook Fee Filing. The $5 nonprofessional 
subscriber fee is higher than the nonprofessional subscriber fees that 
are payable under the CQ and UTP Plans in recognition of the fact that 
NYSE Arca provides the data to vendors simultaneously with its delivery 
of the data to the processors under the CQ and UTP Plans. This allows 
vendors to receive the best bids and offers, and to distribute that 
data to their subscribers, more quickly than under the CQ and UTP Plans 
because it eliminates the processing time of the Plans' processors.
    The ArcaBook Fee Filing establishes a monthly maximum amount of 
device fees payable by any broker-dealer in respect of certain 
subscribers that maintain brokerage accounts with the broker-dealer. 
The Exchange proposes to subject BBO Service fees payable by any 
broker-dealer in respect of those same subscribers to that monthly 
maximum.
    NYSE Arca believes that the proposed BBO Service fees would reflect 
an equitable allocation of its overall costs to users of its 
facilities.
    (c) Free Trial Period. As an incentive to prospective subscribers, 
the Exchange proposes to offer subscribers the right to receive BBO 
Services free of charge for the duration of the calendar month in which 
the subscriber first becomes authorized to receive the data. For 
example, if a subscriber (whether professional or nonprofessional) 
becomes authorized to receive the NYSE Arca BBO Services on May 10, the 
device fees set forth in the proposed rule change will not apply during 
that month of May.
2. Statutory Basis
    The basis under the Act for the proposed rule change are the

[[Page 33501]]

requirement under Section 6(b)(4) \6\ that an exchange have rules that 
provide for the equitable allocation of reasonable dues, fees and other 
charges among its members and other persons using its facilities and 
the requirements under Section 6(b)(5) \7\ that the rules of an 
exchange be designed to promote just and equitable principles of trade 
and not to permit unfair discrimination between customers, issuers, 
brokers or dealers.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78f(b)(4).
    \7\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange believes that the proposed fee change will not impose 
any burden on competition that is not necessary or appropriate in the 
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

    The Exchange has not solicited, and does not intend to solicit, 
comments regarding the proposed rule change. The Exchange has not 
received any unsolicited written comments from Exchange participants or 
other interested parties.

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 NYSE consents, the Commission will:
    A. By order approve such 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-2006-23 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.

All submissions should refer to File Number SR-NYSEArca-2006-23. 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 the 
principal office of the Exchange. 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 publicly available. All submissions should refer to 
File Number SR-NYSEArca-2006-23 and should be submitted on or before 
June 30, 2006.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\8\
---------------------------------------------------------------------------

    \8\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Jill M. Peterson,
Assistant Secretary.
[FR Doc. 06-5301 Filed 6-7-06; 1:12 pm]
BILLING CODE 8010-01-P