Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change and Amendment Nos. 1 and 2 Thereto Relating to Fees for Tracking Orders Submitted and Executed on NYSE Arca, Inc., Regulatory Filing and Registration Fees for Equity Trading Permit Holders, and Drop Copy Processing Fees for Certain Trades in Listed and Nasdaq Securities, 55044-55046 [E6-15587]

Download as PDF 55044 Federal Register / Vol. 71, No. 182 / Wednesday, September 20, 2006 / Notices DC 20549–1090. Copies of such filing also will be available for inspection and copying at 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–2006–031 and should be submitted on or before October 11, 2006. IV. Commission’s Findings and Order Granting Accelerated Approval of Proposed Rule Change After careful consideration, the Commission finds that the proposed rule change is consistent with the requirements of the Act 6 and the rules and regulations thereunder applicable to a national securities exchange.7 In particular, the Commission finds that the proposed rule change, as amended, is consistent with the requirements of Section 6(b)(5) of the Exchange Act,8 which requires, among other things, that the Exchange’s rules 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. Nasdaq Rule 3350 prohibits short sales in Nasdaq Global Market securities at or below the current best (inside) bid displayed in the Nasdaq Market Center when the current best (inside) bid is below the previous best (inside) bid in the security (the ‘‘bid test’’). Nasdaq Rule 3350 is inapplicable to National Capital Market securities. The proposed rule change amends Nasdaq Rule 3350(c) to exempt from its price test securities included in the Nasdaq-100 Index. The Commission is currently conducting the Pilot to study and evaluate the overall effectiveness and necessity of short sale prices tests.9 On 6 15 U.S.C. 78f. approving this proposed rule change, the Commission notes that it has considered the proposed rule’s impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). 8 15 U.S.C. 78f(b)(5). 9 See Securities Exchange Act Release No. 50104 (July 28, 2004), 69 FR 48032 (August 6, 2004) (‘‘First Pilot Order’’). The Pilot suspended price tests for the following: (1) Short sales in the securities identified in Appendix A to the First Pilot Order; (2) short sales in the securities included in the Russell 1000 index effected between 4:15 p.m. EST and the open of the effective transaction reporting plan of the Consolidated Tape Association (‘‘consolidated tape’’) on the following day; and (3) short sales in any security not included in paragraphs (1) and (2) effected in the period between the close of the consolidated tape and the open of the consolidated tape on the following day. jlentini on PROD1PC65 with NOTICES 7 In VerDate Aug<31>2005 17:40 Sep 19, 2006 Jkt 205001 April 20, 2006, we extended the Pilot in order to maintain the status quo for price tests of Pilot securities while we complete our analysis of the results of the Pilot and conduct any additional rulemaking that we determine may be warranted.10 We have not reached any conclusions regarding price tests. However, we believe that this proposed rule change is consistent with the statute. In accordance with Section 6(b) of the Act, the proposed amendment is designed to remove impediments to and perfect the mechanism of a free and open market and a national market system. In addition, the proposed amendment does not impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act. Nasdaq securities are currently not subject to any price test when traded on other exchanges. Currently, Nasdaq and the NASD (for Nasdaq securities traded over the counter and reported to a NASD facility) are the only markets required to apply a price test to Nasdaq securities. Thus, Nasdaq believes it is at a competitive disadvantage with regard to these securities as market participants may make order routing decisions based on this disparity. In addition, we note that the stocks included in the Nasdaq100 Index are highly liquid and less likely to be subject to manipulation than less liquid stocks. Nasdaq has requested that the Commission find good cause for approving the proposed rule change prior to the 30th day after publication of notice thereof in the Federal Register. The Commission notes that a substantially similar rule filing, SR– NASD–2006–076, that would have exempted all securities included in the Nasdaq-100 Index from the price test in former NASD Rule 3350, was previously filed by NASD on June 15, 2006, through its subsidiary, The Nasdaq Stock Market, Inc., prior to Nasdaq commencing operations as a national securities exchange.11 SR–NASD–2006– 076 was published for comment in the Federal Register on June 22, 2006. The Commission received no comments on the proposal. Accordingly, the Commission finds good cause exists, consistent with Sections 6(b)(5) and 19(b)(2) of the Act,12 to approve the proposed rule change on an accelerated basis, prior to the 30th day after the date 10 See Order Extending Term of Short Sale Pilot, Release No. 34–53684 (April 20, 2006), 71 FR 24765 (April 26, 2006). 11 See also, supra n. 4. 12 15 U.S.C. 78f(b)(5); 15 U.S.C. 78s(b)(2). PO 00000 Frm 00069 Fmt 4703 Sfmt 4703 of publication of the notice of filing thereof in the Federal Register. V. Conclusion It is therefore ordered, pursuant to Section 19(b)(2) of the Act that the proposed rule change (SR–NASDAQ– 2006–031) is approved on an accelerated basis. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.13 Nancy M. Morris, Secretary. [FR Doc. E6–15572 Filed 9–19–06; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–54438; File No. SR– NYSEArca–2006–43] Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change and Amendment Nos. 1 and 2 Thereto Relating to Fees for Tracking Orders Submitted and Executed on NYSE Arca, Inc., Regulatory Filing and Registration Fees for Equity Trading Permit Holders, and Drop Copy Processing Fees for Certain Trades in Listed and Nasdaq Securities September 13, 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 June 30, 2006, NYSE Arca, Inc. (‘‘NYSE Arca’’ or ‘‘Exchange’’), through its wholly owned subsidiary NYSE Arca Equities, Inc. (‘‘NYSE Arca Equities’’), filed with the Securities and Exchange Commission (‘‘Commission’’ or ‘‘SEC’’) the proposed rule change as described in Items I, II and III below, which Items have been prepared by NYSE Arca Equities. On August 16, 2006, the Exchange amended the proposed rule change.3 On September 8, 2006, the Exchange again amended the proposed rule change.4 The Commission is publishing this notice to solicit comments on the proposed rule change, as amended, from interested persons. 13 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 See Amendment No. 1. 4 See Amendment No. 2. 1 15 E:\FR\FM\20SEN1.SGM 20SEN1 Federal Register / Vol. 71, No. 182 / Wednesday, September 20, 2006 / Notices I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend NYSE Arca Equities Schedule of Fees and Charges (‘‘Equities Schedule’’) to (i) clarify the description of the Equity Trading Permit (‘‘ETP’’) Holder transaction credit applicable to round lots in Nasdaq securities; (ii) remove rebates applicable to Tracking Orders; (iii) move regulatory fees from NYSE Arca’s Schedule of Fees and Charges to the Equities Schedule; and (iv) remove drop copy processing fees. The text of the proposed rule change is available at the Commission’s Public Reference Room, at the Exchange, and on the Exchange’s Web site at https:// www.nysearca.com. 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, as amended. 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 jlentini on PROD1PC65 with NOTICES 1. Purpose The Exchange proposes to amend the Schedule, effective July 1, 2006, to reflect (i) clarification of the description of the ETP Holder transaction credit applicable to round lots in Nasdaq securities; (ii) removal of the current eligible rebates for Tracking Orders; (iii) addition of the regulatory fees applicable to Equity Trading Permit (‘‘ETP’’) Holders and their registered representatives currently only listed within NYSE Arca’s Schedule of Fees and Charges; and (iv) removal of the processing fee listed for drop copies for transactions of off-board trades in listed and Nasdaq securities. ETP Holder Transaction Credits and Tracking Order Rebates The Exchange proposes to amend the description of the ETP Holder transaction credit applicable to round lots in Nasdaq securities so that the description is consistent with the description of the credit applicable to VerDate Aug<31>2005 17:40 Sep 19, 2006 Jkt 205001 round lots in listed securities (except NYSE non-ETF listed securities). Specifically, the Exchange wishes to amend the Schedule to clarify that the credit for round lots in Nasdaq securities applies to limit orders residing in the Book that execute against inbound marketable orders. Such language was inadvertently omitted from the Schedule.5 Currently, Tracking Orders (in addition to all limit orders that provide liquidity for the NYSE Arca Equities Book as noted above), are eligible for this ETP Holder transaction credit applicable to round lots. Because the Exchange no longer wishes to provide an incentive to attract Tracking Orders to the Exchange, the Exchange has amended the Schedule so that the Exchange no longer provides this ETP Holder transaction credit to Tracking Orders. In addition, the Exchange has amended the Schedule to state that Tracking Orders will no longer be eligible for a type of market data revenue sharing credit referred to as the liquidity provider credit. Specifically, the Exchange has amended the Schedule to eliminate the liquidity provider credit for Tracking Orders in over-the-counter securities on Tape B (previously only exchange-listed securities were ineligible to receive the liquidity provider credit). Regulatory Fees for ETP Holders Regulatory fees that are applicable to both Options and Equity Permit holders have been listed on NYSE Arca’s Schedule of Fees and Charges. To more clearly identify all regulatory fees that are assessed to ETP Firms in one place, the Exchange is adding the list of regulatory fees applicable to ETPs that was formerly listed in the NYSE Arca Schedule of Fees and Charges to the NYSE Arca Equities’ Schedule. In so doing, the Exchange changed the term ‘‘Registered Options Principal’’ to ‘‘Registered Principal’’ to make clear that all Registered Principals, not just Registered Options Principals, are subject to the registration fees listed on the Schedule. Such change is proposed in order to make the Schedule consistent with the general registration requirements of NYSE Arca Equities Rules. Drop Copy Processing Fee Currently, the Schedule identifies a ‘‘Drop Copy Processing Fee’’ of $0.001 per share, applicable to off-board trades in listed and Nasdaq securities. The Exchange believes that such fees were introduced years ago as a means to cover any additional costs associated in providing drop copies. The Exchange’s practice over the years, however, has been to supply drop copies to those ETP Holders that request them without assessing any fees. Therefore, in order to make the Schedule consistent with Exchange practice, the Exchange is amending the Schedule to eliminate this fee. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with Section 6(b) of the Act,6 in general, and Section 6(b)(4) of the Act,7 in particular, in that it provides for the equitable allocation of reasonable dues, fees and other charges among its ETP Holders, issuers, and other persons using its facilities. B. Self-Regulatory Organization’s Statement on Burden on Competition Nasdaq 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, as amended, has become effective pursuant to Section 19(b)(3)(A)(ii) of the Act 8 and subparagraph (f)(2) of Rule 19b–4 thereunder 9 because it establishes or changes a due, fee, or other charge applicable only to a member imposed by the self-regulatory organization. Accordingly, the proposal is effective upon receipt of the filing by the Commission. At any time within 60 days of the filing of the proposed rule change, the Commission may summarily abrogate the rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, 6 15 5 This is the only change made to the Schedule in Amendment No. 1 as compared to the Exchange’s original proposed rule change. PO 00000 Frm 00070 Fmt 4703 Sfmt 4703 55045 U.S.C. 78f(b). U.S.C. 78f(b)(4). 8 15 U.S.C. 78s(b)(3)(A)(ii). 9 17 CFR 240.19b–4(f)(2). 7 15 E:\FR\FM\20SEN1.SGM 20SEN1 55046 Federal Register / Vol. 71, No. 182 / Wednesday, September 20, 2006 / Notices or otherwise in furtherance of the purposes of the Act.10 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: jlentini on PROD1PC65 with NOTICES Electronic Comments • Use the Commission’s Internet comment form (https://www.sec.gov/ rules/sro.shtml); or • Send an e-mail to rulecomments@sec.gov. Please include File No. SR–NYSEArca–2006–43 on the subject line. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.11 Nancy M. Morris, Secretary. [FR Doc. E6–15587 Filed 9–19–06; 8:45 am] BILLING CODE 8010–01–P SMALL BUSINESS ADMINISTRATION Data Collection Available for Public Comments and Recommendations Notice and request for comments. ACTION: SUMMARY: In accordance with the Paperwork Reduction Act of 1995, this notice announces the Small Business Administration’s intentions to request Paper Comments approval on a new and/or currently • Send paper comments in triplicate approved information collection. to Nancy M. Morris, Secretary, DATES: Submit comments on or before Securities and Exchange Commission, November 20, 2006. Station Place, 100 F Street, NE., ADDRESSES: Send all comments Washington, DC 20549–1090. regarding whether this information All submissions should refer to File No. collection is necessary for the proper SR–NYSEArca–2006–43. This file performance of the function of the number should be included on the subject line if e-mail is used. To help the agency, whether the burden estimates are accurate, and if there are ways to Commission process and review your minimize the estimated burden and comments more efficiently, please use only one method. The Commission will enhance the quality of the collection, to post all comments on the Commission’s Pam Swilling, Program Review Analyst, Office of Surety Guarantee, Small Internet Web site (https://www.sec.gov/ Business Administration, 409 3rd Street, rules/sro.shtml). Copies of the SW., 8th Floor, Washington, DC 20416. submission, all subsequent FOR FURTHER INFORMATION CONTACT: Pam amendments, all written statements Swilling, Program Review Analyst, with respect to the proposed rule Office of Surety Guarantee 202–205– change that are filed with the 6546 pam.swilling@sba.gov or Curtis B. Commission, and all written Rich, Management Analyst, 202–205– communications relating to the 7030 curtis.rich@sba.gov. proposed rule change between the Commission and any person, other than SUPPLEMENTARY INFORMATION: Title: ‘‘Surety Bond Guarantee those that may be withheld from the Assistance’’. public in accordance with the Description of Respondents: Small provisions of 5 U.S.C. 552, will be Business Contractors Applying for the available for inspection and copying in Surety Bond Guarantee Program. the Commission’s Public Reference Form Nos: 990, 991, 994, 994B, 994C, Room. Copies of such filing will also be 994F, 994H. available for inspection and copying at Annual Responses: 31,113. the principal office of the Exchange. All Annual Burden: 15,071. comments received will be posted without change; the Commission does ADDRESSES: Send all comments not edit personal identifying regarding whether this information information from submissions. You collection is necessary for the proper should submit only information that performance of the function of the you wish to make available publicly. All agency, whether the burden estimates submissions should refer to File No. are accurate, and if there are ways to SR–NYSEArca–2006–43 and should be minimize the estimated burden and submitted on or before October 11, enhance the quality of the collection, to 2006. David Caulfield, Senior Program Analyst, Office of HUBZone 10 15 U.S.C. 78s(b)(3)(C). For purposes of Empowerment Contracting, Small calculating the 60-day period within which the Business Administration, 409 3rd Street, Commission may summarily abrogate the proposal, SW., 8th Floor, Washington, DC 20416 the Commission considers the period to commence on September 8, 2006, the date on which the Exchange filed Amendment No. 2. VerDate Aug<31>2005 18:15 Sep 19, 2006 Jkt 208001 11 17 PO 00000 CFR 200.30–3(a)(12). Frm 00071 Fmt 4703 Sfmt 4703 FOR FURTHER INFORMATION CONTACT: David Caulfield, Senior Program Analyst, Office of Surety Guarantee 202–205–6457 david.caulfield@sba.gov or Curtis B. Rich, Management Analyst, 202–205–7030 curtis.rich@sba.gov. SUPPLEMENTARY INFORMATION: Title: ‘‘HUBZone Application Data Update’’. Description of Respondents: Small Business Concerns. Form No: N/A. Annual Responses: 6,000. Annual Burden: 3,000. Jacqueline White, Chief, Administrative Information Branch. [FR Doc. 06–7786 Filed 9–19–06; 8:45 am] BILLING CODE 8025–01–P SMALL BUSINESS ADMINISTRATION Data Collection Available for Public Comments and Recommendations Notice and request for comments. ACTION: SUMMARY: In accordance with the Paperwork Reduction Act of 1995, this notice announces the Small Business Administration’s intentions to request approval on a new and/or currently approved information collection. DATES: Submit comments on or before November 20, 2006. ADDRESSES: Send all comments regarding whether these information collections are necessary for the proper performance of the function of the agency, whether the burden estimates are accurate, and if there are ways to minimize the estimated burden and enhance the quality of the collections, to Gail Hepler, Chief 7a Loan Policy Branch, Office of Financial Assistance, Small Business Administration, 409 3rd Street, SW., Suite 8300, Washington, DC 20416. FOR FURTHER INFORMATION CONTACT: Gail Hepler, Chief 7a Loan Policy Branch, Office of Financial Assistance 202–205– 7530 gail.hepler@sba.gov or Curtis B. Rich, Management Analyst, 202–205– 7030 curtis.rich@sba.gov. SUPPLEMENTARY INFORMATION: Title: ‘‘Gulf Coast Relief Financing Pilot Information Collection’’. Description of Respondents: Small Business devastated by Hurricanes Katrina and Rita. Form Nos: 2276 A/B/C, 2281, 2282. Annual Responses: 500. Annual Burden: 375. Jacqueline White, Chief, Administrative Information Branch. [FR Doc. 06–7946 Filed 9–19–06; 8:45 am] BILLING CODE 8025–01–P E:\FR\FM\20SEN1.SGM 20SEN1

Agencies

[Federal Register Volume 71, Number 182 (Wednesday, September 20, 2006)]
[Notices]
[Pages 55044-55046]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-15587]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-54438; File No. SR-NYSEArca-2006-43]


Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change and Amendment Nos. 
1 and 2 Thereto Relating to Fees for Tracking Orders Submitted and 
Executed on NYSE Arca, Inc., Regulatory Filing and Registration Fees 
for Equity Trading Permit Holders, and Drop Copy Processing Fees for 
Certain Trades in Listed and Nasdaq Securities

September 13, 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 June 30, 2006, NYSE Arca, Inc. (``NYSE Arca'' or ``Exchange''), 
through its wholly owned subsidiary NYSE Arca Equities, Inc. (``NYSE 
Arca Equities''), filed with the Securities and Exchange Commission 
(``Commission'' or ``SEC'') the proposed rule change as described in 
Items I, II and III below, which Items have been prepared by NYSE Arca 
Equities. On August 16, 2006, the Exchange amended the proposed rule 
change.\3\ On September 8, 2006, the Exchange again amended the 
proposed rule change.\4\ The Commission is publishing this notice to 
solicit comments on the proposed rule change, as amended, from 
interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Amendment No. 1.
    \4\ See Amendment No. 2.

---------------------------------------------------------------------------

[[Page 55045]]

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

    The Exchange proposes to amend NYSE Arca Equities Schedule of Fees 
and Charges (``Equities Schedule'') to (i) clarify the description of 
the Equity Trading Permit (``ETP'') Holder transaction credit 
applicable to round lots in Nasdaq securities; (ii) remove rebates 
applicable to Tracking Orders; (iii) move regulatory fees from NYSE 
Arca's Schedule of Fees and Charges to the Equities Schedule; and (iv) 
remove drop copy processing fees. The text of the proposed rule change 
is available at the Commission's Public Reference Room, at the 
Exchange, and on the Exchange's Web site at https://www.nysearca.com.

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, as 
amended. 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
    The Exchange proposes to amend the Schedule, effective July 1, 
2006, to reflect (i) clarification of the description of the ETP Holder 
transaction credit applicable to round lots in Nasdaq securities; (ii) 
removal of the current eligible rebates for Tracking Orders; (iii) 
addition of the regulatory fees applicable to Equity Trading Permit 
(``ETP'') Holders and their registered representatives currently only 
listed within NYSE Arca's Schedule of Fees and Charges; and (iv) 
removal of the processing fee listed for drop copies for transactions 
of off-board trades in listed and Nasdaq securities.

ETP Holder Transaction Credits and Tracking Order Rebates

    The Exchange proposes to amend the description of the ETP Holder 
transaction credit applicable to round lots in Nasdaq securities so 
that the description is consistent with the description of the credit 
applicable to round lots in listed securities (except NYSE non-ETF 
listed securities). Specifically, the Exchange wishes to amend the 
Schedule to clarify that the credit for round lots in Nasdaq securities 
applies to limit orders residing in the Book that execute against 
inbound marketable orders. Such language was inadvertently omitted from 
the Schedule.\5\
---------------------------------------------------------------------------

    \5\ This is the only change made to the Schedule in Amendment 
No. 1 as compared to the Exchange's original proposed rule change.
---------------------------------------------------------------------------

    Currently, Tracking Orders (in addition to all limit orders that 
provide liquidity for the NYSE Arca Equities Book as noted above), are 
eligible for this ETP Holder transaction credit applicable to round 
lots. Because the Exchange no longer wishes to provide an incentive to 
attract Tracking Orders to the Exchange, the Exchange has amended the 
Schedule so that the Exchange no longer provides this ETP Holder 
transaction credit to Tracking Orders.
    In addition, the Exchange has amended the Schedule to state that 
Tracking Orders will no longer be eligible for a type of market data 
revenue sharing credit referred to as the liquidity provider credit. 
Specifically, the Exchange has amended the Schedule to eliminate the 
liquidity provider credit for Tracking Orders in over-the-counter 
securities on Tape B (previously only exchange-listed securities were 
ineligible to receive the liquidity provider credit).

Regulatory Fees for ETP Holders

    Regulatory fees that are applicable to both Options and Equity 
Permit holders have been listed on NYSE Arca's Schedule of Fees and 
Charges. To more clearly identify all regulatory fees that are assessed 
to ETP Firms in one place, the Exchange is adding the list of 
regulatory fees applicable to ETPs that was formerly listed in the NYSE 
Arca Schedule of Fees and Charges to the NYSE Arca Equities' Schedule.
    In so doing, the Exchange changed the term ``Registered Options 
Principal'' to ``Registered Principal'' to make clear that all 
Registered Principals, not just Registered Options Principals, are 
subject to the registration fees listed on the Schedule. Such change is 
proposed in order to make the Schedule consistent with the general 
registration requirements of NYSE Arca Equities Rules.

Drop Copy Processing Fee

    Currently, the Schedule identifies a ``Drop Copy Processing Fee'' 
of $0.001 per share, applicable to off-board trades in listed and 
Nasdaq securities. The Exchange believes that such fees were introduced 
years ago as a means to cover any additional costs associated in 
providing drop copies. The Exchange's practice over the years, however, 
has been to supply drop copies to those ETP Holders that request them 
without assessing any fees. Therefore, in order to make the Schedule 
consistent with Exchange practice, the Exchange is amending the 
Schedule to eliminate this fee.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act,\6\ in general, and Section 6(b)(4) of the 
Act,\7\ in particular, in that it provides for the equitable allocation 
of reasonable dues, fees and other charges among its ETP Holders, 
issuers, and other persons using its facilities.
---------------------------------------------------------------------------

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

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

    Nasdaq 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, as amended, has become 
effective pursuant to Section 19(b)(3)(A)(ii) of the Act \8\ and 
subparagraph (f)(2) of Rule 19b-4 thereunder \9\ because it establishes 
or changes a due, fee, or other charge applicable only to a member 
imposed by the self-regulatory organization. Accordingly, the proposal 
is effective upon receipt of the filing by the Commission. At any time 
within 60 days of the filing of the proposed rule change, the 
Commission may summarily abrogate the rule change if it appears to the 
Commission that such action is necessary or appropriate in the public 
interest, for the protection of investors,

[[Page 55046]]

or otherwise in furtherance of the purposes of the Act.\10\
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \9\ 17 CFR 240.19b-4(f)(2).
    \10\ 15 U.S.C. 78s(b)(3)(C). For purposes of calculating the 60-
day period within which the Commission may summarily abrogate the 
proposal, the Commission considers the period to commence on 
September 8, 2006, the date on which the Exchange filed Amendment 
No. 2.
---------------------------------------------------------------------------

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:

Electronic Comments

     Use the Commission's Internet comment form (https://
www.sec.gov/rules/sro.shtml); or
     Send an e-mail to rule-comments@sec.gov. Please include 
File No. SR-NYSEArca-2006-43 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 No. SR-NYSEArca-2006-43. 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 (https://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 will also 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 available publicly. All submissions should refer to 
File No. SR-NYSEArca-2006-43 and should be submitted on or before 
October 11, 2006.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\11\
---------------------------------------------------------------------------

    \11\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Nancy M. Morris,
Secretary.
 [FR Doc. E6-15587 Filed 9-19-06; 8:45 am]
BILLING CODE 8010-01-P
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