Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Order Granting Accelerated Approval to Amendment No. 4 to a Proposed Rule Change Relating to the Exchange's Schedule of Fees and Charges, 55257-55258 [06-7842]

Download as PDF Federal Register / Vol. 71, No. 183 / Thursday, September 21, 2006 / Notices also readily available in newspapers and other publications and from a variety of on-line services. Based on the representations made in the NYSE proposal, the Commission believes that pricing and other important information about the Fund is adequate and consistent with the Act. D. Listing and Trading The Commission finds that adequate rules and procedures exist to govern the listing and trading of the Funds’ shares. Fund shares will be deemed equity securities subject to NYSE rules governing the trading of equity securities, including, among others, rules governing trading halts, responsibilities of the specialist, account opening and customer suitability requirements, and the election of stop and stop limit orders. In addition, the Exchange states that iShares are subject to the criteria for initial and continued listing of ICUs in Section 703.16 of the NYSE Manual. E. Surveillance The Exchange represents that its surveillance procedures are adequate to properly monitor the trading of the Funds. The Exchange states that it is able to obtain trading information from ISG from other exchanges that are members or affiliates of the ISG. F. Accelerated Approval The Commission finds good cause, pursuant to section 19(b)(2) of the Act,27 for approving the proposed rule change prior to the thirtieth day after the date of publication of notice in the Federal Register. The Commission notes that the proposal is consistent with the listing and trading standards in NYSE Rule 703.16 (ICUs), and the Commission has previously approved similar products based on foreign indices.28 The Funds are substantially identical in structure to other iShares Funds based on foreign stock indexes, including the iShares S&P Global 1200 Index Fund, which has an established and active trading history on the NYSE and other exchanges.29 The Commission does not believe that the proposed rule change, as amended, raises novel regulatory issues. Consequently, the Commission believes that it is appropriate to permit investors to benefit from the flexibility afforded 27 15 U.S.C. 78s(b)(2). Securities Exchange Act Release Nos. 44990 (October 25, 2001), 66 FR 56869 (November 13, 2001) (SR–Amex–2001–45); 42748 (May 2, 2000), 65 FR 30155 (May 10, 2000) (SR–Amex–98– 49); and 36947 (March 8, 1996), 61 FR 10606 (March 14, 1996) (SR–Amex–95–43). 29 See Securities Exchange Act Release No. 52178 (July 29, 2005), 70 FR 46244 (August 9, 2005) (SR– NYSE–2005–41) jlentini on PROD1PC65 with NOTICES 28 See VerDate Aug<31>2005 16:30 Sep 20, 2006 Jkt 208001 by trading these products as soon as possible. V. Conclusion It is therefore ordered, pursuant to section 19(b)(2) of the Act, that the proposed rule change (SR–NYSE–2006– 60) is hereby approved on an accelerated basis.30 For the Commission, by the Division of Market Regulation, pursuant to delegated authority.31 J. Lynn Taylor, Assistant Secretary. [FR Doc. 06–7896 Filed 9–20–06; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–54430; File No. SR– NYSEArca–2006–20] Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Order Granting Accelerated Approval to Amendment No. 4 to a Proposed Rule Change Relating to the Exchange’s Schedule of Fees and Charges September 12, 2006. I. Introduction On May 17, 2006, NYSE Arca, Inc. (‘‘NYSE Arca’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’) pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’),1 and Rule 19b–4 thereunder,2 the proposed rule change to amend the Trade Related Charges portion of its Schedule of Fees and Charges (‘‘Schedule’’). On May 26, 2006, the Exchange filed Amendment No. 1 to the proposed rule change. On June 30, 2006, the Exchange filed Amendment No. 2 to the proposed rule change. On July 7, 2006, the Exchange filed Amendment No. 3 to the proposed rule change.3 The proposed rule change, as amended, was published for comment in the Federal Register on July 20, 2006.4 Two comment letters were submitted in connection with this filing.5 30 15 U.S.C. 78s(b)(2). CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 See Form 19b–4 dated July 7, 2006 (‘‘Amendment No. 3’’). Amendment No. 3 replaced and superseded the original filing and Amendments No. 1 and 2 in their entirety. 4 See Securities Exchange Act Release No. 54130 (July 11, 2006), 71 FR 41305. 5 See letter from Arthur J. Gross, Arthur J. Gross SP, dated August 9, 2006, and letter from Gennaro J. Lettera, dated August 9, 2006. The Exchange believes that these commenters intended to address a separate proposed rule change, SR–NYSE–2006– 31 17 PO 00000 Frm 00098 Fmt 4703 Sfmt 4703 55257 On August 31, 2006, the Exchange filed Amendment No. 4.6 This order grants accelerated approval of Amendment No. 4, and solicits comments from interested persons on Amendment No. 4. I. Description of the Proposal A. Fees for Manually Executed Linkage Orders NYSE Arca proposes to combine two existing fees associated with certain Linkage Orders.7 Presently, the Exchange assesses on Linkage Orders a $0.21 transaction fee and a $0.05 comparison fee.8 To simplify the Schedule, the Exchange proposes combining these fees into one transaction fee of $0.26 for Linkage Orders executed manually. This fee is equal to the fee for manually executed orders from broker-dealers. B. Fees for Electronically Executed Linkage Orders Under the current NYSE Arca Schedule, electronically executed orders from broker-dealers are charged $0.50 per contract (‘‘BD Electronic Transaction Fee’’). The BD Electronic Transaction Fee was recently revised to combine a previously assessed transaction fee of $0.26 and a BD Surcharge of $0.25.9 The current $0.50 BD Electronic Transaction Fee represents a $0.01 reduction in the total fee for electronic executions of orders from broker-dealers. In Amendment No. 4, the Exchange proposes to modify its Schedule to make clear that 46, not the instant proposed rule change. See e-mail from Janet Angstadt, Acting General Counsel, NYSE Arca, to Timothy Fox, Special Counsel, Division of Market Regulation, Commission, dated August 16, 2006. The Commission believes that the commenters’ concerns do not relate to the instant proposed rule change and, as such, these letters are not addressed in this order. 6 Amendment No. 4 was filed to reconcile the original filing, as amended, with the subsequent immediately effective rule filing, as discussed infra note 9 and accompanying text. Amendment No. 4 replaces and supersedes the original filing and subsequent amendments in their entirety. 7 ‘‘Linkage Orders’’ are immediate or cancel orders containing certain information that are routed through the Intermarket Linkage System (‘‘Linkage’’). See Section 2(16) of the Plan for the Purpose of Creating and Operating an Intermarket Option Linkage (‘‘Linkage Plan’’). As used in this approval order, the term, ‘‘Linkage Orders,’’ refers only to Principal Acting as Agent Orders and Principal Orders. See Sections 2(16)(a) and 2(16)(b) of the Linkage Plan. 8 These fees are applicable through an Exchange Pilot Program due to expire on July 31, 2007. See Securities Exchange Act Release No. 54230 (July 27, 2006), 71 FR 44757 (August 7, 2006) (SR– NYSEArca–2006–41). 9 See Securities Exchange Act Release No. 54309 (August 11, 2006), 71 FR 48571 (August 21, 2006) (SR–NYSEArca–2006–25). E:\FR\FM\21SEN1.SGM 21SEN1 55258 Federal Register / Vol. 71, No. 183 / Thursday, September 21, 2006 / Notices electronically executed Linkage Orders also will be charged $0.50 per contract. The Exchange acknowledges that the Exchange’s previous version of its Schedule did not reflect that the BD Surcharge was imposed on electronically executed Linkage Orders.10 In Amendment No. 4, the Exchange proposes to modify the Schedule to make clear that the BD Surcharge will be included as a component of the $0.50 fee assessed for electronically executed Linkage Orders. jlentini on PROD1PC65 with NOTICES III. Discussion and Commission Findings The Commission has reviewed carefully the proposed rule change, as amended, and finds that it is consistent with the requirements of the Act and the rules and regulations thereunder applicable to a national securities exchange.11 In particular, the Commission believes that the proposal is consistent with Section 6(b)(4) of the Act,12 which requires that the rules of an exchange provide an equitable allocation of reasonable dues, fees and other charges among its members and other persons using its facilities. Under the current NYSE Arca Schedule, manually executed BD orders are charged $0.26 per contract and electronically executed orders from broker-dealers are charged $0.50 per contract. The Exchange proposed that manually executed Linkage Orders be charged $0.26 per contract and electronically executed Linkage Orders be charged $0.50 per contract. Accordingly, the Commission believes that the Exchange’s proposed Schedule clearly sets forth the fees imposed on Linkage Orders. As discussed above, the Exchange acknowledges, in Amendment No. 4, that prior versions of its Schedule did not represent that the $0.25 BD Surcharge was applied to electronically executed Linkage Orders. Because the Exchange assessed the BD Surcharge on Linkage Orders prior to this approval and, therefore, without authority, parties assessed the BD Surcharge for Linkage Orders prior to the approval of this proposed rule change may seek reimbursement. The Commission finds good cause for approving proposed Amendment No. 4 before the 30th day after the date of publication of notice of filing thereof in the Federal Register pursuant to Section 10 The Schedule set forth the Transaction and Comparison fees assessed on Linkage Orders. 11 In approving this proposed rule change, the Commission has considered the proposed rule’s impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). 12 15 U.S.C. 78f(b)(4). VerDate Aug<31>2005 16:30 Sep 20, 2006 Jkt 208001 19(b)(2) of the Act.13 The Exchange filed Amendment No. 4 to reconcile the proposed rules in the original filing, as amended, with the Exchange’s current rules, which reflect an immediately effective proposed rule change filed after this proposed rule change was published for comment.14 The Commission believes that in Amendment No. 4, the Exchange proposes no significant changes to the fees proposed in the original filing. Therefore, the Commission finds good cause exists to accelerate approval of Amendment No. 4, pursuant to Section 19(b)(2) of the Act.15 IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning Amendment No. 4, including whether Amendment No. 4 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 rulecomments@sec.gov. Please include File Number SR–NYSEArca–2006–20 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 Amendment No. 4 to SR–NYSEArca– 2006–20. 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 also will be 13 15 U.S.C. 78s(b)(2). supra note 9. 15 15 U.S.C. 78s(b)(2). 14 See PO 00000 Frm 00099 Fmt 4703 Sfmt 4703 available for inspection and copying at the principal offices 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 Amendment No. 4 to SR–NYSEArca–2006–20 and should be submitted on or before October 12, 2006. V. Conclusion It is therefore ordered, pursuant to Section 19(b)(2) of the Act,16 that Amendment No. 4 to the proposed rule change (SR–NYSEArca–2006–20) be, and hereby is, approved on an accelerated basis. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.17 J. Lynn Taylor, Assistant Secretary. [FR Doc. 06–7842 Filed 9–20–06; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–54448; File No. SR–OCC– 2006–07] Self-Regulatory Organizations; The Options Clearing Corporation; Order Approving Proposed Rule Change Relating to a Surcharge for NonClearing Member Subscribers That Have Not Met a Mandated Conversion Date for Its Data Distribution Service September 14, 2006. I. Introduction On May 15, 2006, The Options Clearing Corporation (‘‘OCC’’) filed with the Securities and Exchange Commission (‘‘Commission’’) proposed rule change SR-OCC–2006–07 pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’).1 Notice of the proposal was published in the Federal Register on July 10, 2006.2 On July 21, 2006, OCC amended the proposed rule change.3 No comment letters were received. For the reasons discussed below, the Commission is approving the proposed rule change. 16 15 U.S.C. 78s(b)(2). CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). 2 Securities Exchange Act Release No. 54060 (June 28, 2006), 71 FR 38961. 3 The amendment, as noted below, is not substantive and did not require republication of the notice. Infra, note 4 and accompanying text. 17 17 E:\FR\FM\21SEN1.SGM 21SEN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 71, Number 183 (Thursday, September 21, 2006)]
[Notices]
[Pages 55257-55258]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 06-7842]


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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-54430; File No. SR-NYSEArca-2006-20]


Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing 
and Order Granting Accelerated Approval to Amendment No. 4 to a 
Proposed Rule Change Relating to the Exchange's Schedule of Fees and 
Charges

September 12, 2006.

I. Introduction

    On May 17, 2006, NYSE Arca, Inc. (``NYSE Arca'' or ``Exchange'') 
filed with the Securities and Exchange Commission (``Commission'') 
pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ the proposed rule change to 
amend the Trade Related Charges portion of its Schedule of Fees and 
Charges (``Schedule''). On May 26, 2006, the Exchange filed Amendment 
No. 1 to the proposed rule change. On June 30, 2006, the Exchange filed 
Amendment No. 2 to the proposed rule change. On July 7, 2006, the 
Exchange filed Amendment No. 3 to the proposed rule change.\3\ The 
proposed rule change, as amended, was published for comment in the 
Federal Register on July 20, 2006.\4\ Two comment letters were 
submitted in connection with this filing.\5\
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Form 19b-4 dated July 7, 2006 (``Amendment No. 3''). 
Amendment No. 3 replaced and superseded the original filing and 
Amendments No. 1 and 2 in their entirety.
    \4\ See Securities Exchange Act Release No. 54130 (July 11, 
2006), 71 FR 41305.
    \5\ See letter from Arthur J. Gross, Arthur J. Gross SP, dated 
August 9, 2006, and letter from Gennaro J. Lettera, dated August 9, 
2006. The Exchange believes that these commenters intended to 
address a separate proposed rule change, SR-NYSE-2006-46, not the 
instant proposed rule change. See e-mail from Janet Angstadt, Acting 
General Counsel, NYSE Arca, to Timothy Fox, Special Counsel, 
Division of Market Regulation, Commission, dated August 16, 2006. 
The Commission believes that the commenters' concerns do not relate 
to the instant proposed rule change and, as such, these letters are 
not addressed in this order.
---------------------------------------------------------------------------

    On August 31, 2006, the Exchange filed Amendment No. 4.\6\ This 
order grants accelerated approval of Amendment No. 4, and solicits 
comments from interested persons on Amendment No. 4.
---------------------------------------------------------------------------

    \6\ Amendment No. 4 was filed to reconcile the original filing, 
as amended, with the subsequent immediately effective rule filing, 
as discussed infra note 9 and accompanying text. Amendment No. 4 
replaces and supersedes the original filing and subsequent 
amendments in their entirety.
---------------------------------------------------------------------------

I. Description of the Proposal

A. Fees for Manually Executed Linkage Orders

    NYSE Arca proposes to combine two existing fees associated with 
certain Linkage Orders.\7\ Presently, the Exchange assesses on Linkage 
Orders a $0.21 transaction fee and a $0.05 comparison fee.\8\ To 
simplify the Schedule, the Exchange proposes combining these fees into 
one transaction fee of $0.26 for Linkage Orders executed manually. This 
fee is equal to the fee for manually executed orders from broker-
dealers.
---------------------------------------------------------------------------

    \7\ ``Linkage Orders'' are immediate or cancel orders containing 
certain information that are routed through the Intermarket Linkage 
System (``Linkage''). See Section 2(16) of the Plan for the Purpose 
of Creating and Operating an Intermarket Option Linkage (``Linkage 
Plan''). As used in this approval order, the term, ``Linkage 
Orders,'' refers only to Principal Acting as Agent Orders and 
Principal Orders. See Sections 2(16)(a) and 2(16)(b) of the Linkage 
Plan.
    \8\ These fees are applicable through an Exchange Pilot Program 
due to expire on July 31, 2007. See Securities Exchange Act Release 
No. 54230 (July 27, 2006), 71 FR 44757 (August 7, 2006) (SR-
NYSEArca-2006-41).
---------------------------------------------------------------------------

B. Fees for Electronically Executed Linkage Orders

    Under the current NYSE Arca Schedule, electronically executed 
orders from broker-dealers are charged $0.50 per contract (``BD 
Electronic Transaction Fee''). The BD Electronic Transaction Fee was 
recently revised to combine a previously assessed transaction fee of 
$0.26 and a BD Surcharge of $0.25.\9\ The current $0.50 BD Electronic 
Transaction Fee represents a $0.01 reduction in the total fee for 
electronic executions of orders from broker-dealers. In Amendment No. 
4, the Exchange proposes to modify its Schedule to make clear that

[[Page 55258]]

electronically executed Linkage Orders also will be charged $0.50 per 
contract.
---------------------------------------------------------------------------

    \9\ See Securities Exchange Act Release No. 54309 (August 11, 
2006), 71 FR 48571 (August 21, 2006) (SR-NYSEArca-2006-25).
---------------------------------------------------------------------------

    The Exchange acknowledges that the Exchange's previous version of 
its Schedule did not reflect that the BD Surcharge was imposed on 
electronically executed Linkage Orders.\10\ In Amendment No. 4, the 
Exchange proposes to modify the Schedule to make clear that the BD 
Surcharge will be included as a component of the $0.50 fee assessed for 
electronically executed Linkage Orders.
---------------------------------------------------------------------------

    \10\ The Schedule set forth the Transaction and Comparison fees 
assessed on Linkage Orders.
---------------------------------------------------------------------------

III. Discussion and Commission Findings

    The Commission has reviewed carefully the proposed rule change, as 
amended, and finds that it is consistent with the requirements of the 
Act and the rules and regulations thereunder applicable to a national 
securities exchange.\11\ In particular, the Commission believes that 
the proposal is consistent with Section 6(b)(4) of the Act,\12\ which 
requires that the rules of an exchange provide an equitable allocation 
of reasonable dues, fees and other charges among its members and other 
persons using its facilities. Under the current NYSE Arca Schedule, 
manually executed BD orders are charged $0.26 per contract and 
electronically executed orders from broker-dealers are charged $0.50 
per contract. The Exchange proposed that manually executed Linkage 
Orders be charged $0.26 per contract and electronically executed 
Linkage Orders be charged $0.50 per contract. Accordingly, the 
Commission believes that the Exchange's proposed Schedule clearly sets 
forth the fees imposed on Linkage Orders.
---------------------------------------------------------------------------

    \11\ In approving this proposed rule change, the Commission has 
considered the proposed rule's impact on efficiency, competition, 
and capital formation. See 15 U.S.C. 78c(f).
    \12\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

    As discussed above, the Exchange acknowledges, in Amendment No. 4, 
that prior versions of its Schedule did not represent that the $0.25 BD 
Surcharge was applied to electronically executed Linkage Orders. 
Because the Exchange assessed the BD Surcharge on Linkage Orders prior 
to this approval and, therefore, without authority, parties assessed 
the BD Surcharge for Linkage Orders prior to the approval of this 
proposed rule change may seek reimbursement.
    The Commission finds good cause for approving proposed Amendment 
No. 4 before the 30th day after the date of publication of notice of 
filing thereof in the Federal Register pursuant to Section 19(b)(2) of 
the Act.\13\ The Exchange filed Amendment No. 4 to reconcile the 
proposed rules in the original filing, as amended, with the Exchange's 
current rules, which reflect an immediately effective proposed rule 
change filed after this proposed rule change was published for 
comment.\14\ The Commission believes that in Amendment No. 4, the 
Exchange proposes no significant changes to the fees proposed in the 
original filing. Therefore, the Commission finds good cause exists to 
accelerate approval of Amendment No. 4, pursuant to Section 19(b)(2) of 
the Act.\15\
---------------------------------------------------------------------------

    \13\ 15 U.S.C. 78s(b)(2).
    \14\ See supra note 9.
    \15\ 15 U.S.C. 78s(b)(2).
---------------------------------------------------------------------------

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning Amendment No. 4, including whether Amendment No. 4 
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 Number SR-NYSEArca-2006-20 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 Amendment No. 4 to SR-NYSEArca-
2006-20. 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 also will be available for inspection and copying at the 
principal offices 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 
Amendment No. 4 to SR-NYSEArca-2006-20 and should be submitted on or 
before October 12, 2006.

V. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\16\ that Amendment No. 4 to the proposed rule change (SR-NYSEArca-
2006-20) be, and hereby is, approved on an accelerated basis.
---------------------------------------------------------------------------

    \16\ 15 U.S.C. 78s(b)(2).
    \17\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\17\
J. Lynn Taylor,
Assistant Secretary.
[FR Doc. 06-7842 Filed 9-20-06; 8:45 am]
BILLING CODE 8010-01-P

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