Self-Regulatory Organizations; National Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Implement a Fee Schedule Under Rule 16.1(a) and 16.1(c) for Transactions Executed Through the Intermarket Trading System Plan and/or the Plan for the Purpose of Creating and Operating an Intermarket Communications Linkage, 65867-65869 [E6-18947]
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Federal Register / Vol. 71, No. 217 / Thursday, November 9, 2006 / Notices
Finally, IM–2110–2 currently contains
provisions that prescribe the minimum
level of price-improvement for
securities trading in non-decimalized
fractions. Given that equities no longer
trade in fractions, NASD proposes to
delete such fractional references as part
of this proposed rule change.
As a result of the proposed changes
described above, NASD is proposing to
apply limit order protection
requirements uniformly to all equity
securities by extending the scope of the
Manning Rule to OTC equity
securities.19 In doing so, NASD also is
proposing to repeal NASD Rule 6541, as
those requirements would be subsumed
in the proposed expansion of the
Manning Rule.
NASD intends to announce the
effective date of the proposed rule
change in a Notice to Members to be
published no later than 60 days
following Commission approval. In
recognition of the technological and
systems changes the proposed rule
change may require, NASD proposed to
set the effective date at 90 days
following publication of the Notice to
Members announcing Commission
approval.
2. Statutory Basis
NASD believes that the proposed rule
change is consistent with the provisions
of Section 15A(b)(6) of the Act,20 which
requires, among other things, that NASD
rules must be designed to prevent
fraudulent and manipulative acts and
practices, to promote just and equitable
principles of trade, and, in general, to
protect investors and the public interest.
NASD believes that the proposed rule
change will improve treatment of
customer limit orders and promote
investor protection.
sroberts on PROD1PC70 with NOTICES
B. Self-Regulatory Organization’s
Statement on Burden on Competition
NASD does not believe that the
proposed rule change will result in any
burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act.
242.600(b)(46). As such, the term ‘‘NMS stock,’’ for
purposes of IM–2110–2, would include, among
other things, exchange traded funds (ETFs).
19 In addition to the differences between IM–
2110–2 and NASD Rule 6541 described above, the
Commission also approved amendments to IM–
2110–2 that generally require a member that has
traded ahead of a customer limit order at a price
that is more favorable than the customer limit order
price, to pass along that price improvement to the
customer limit order. This requirement currently
does not apply under NASD Rule 6541. See
Securities Exchange Act Release No. 52210 (August
4, 2005), 70 FR 46897 (August 11, 2005) (File No.
SR–NASD–2004–089). See also NASD Notice to
Members 05–64 (October 2005).
20 15 U.S.C. 78o–3(b)(6).
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16:26 Nov 08, 2006
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C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
Written comments were neither
solicited nor received by NASD.
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 NASD consents, the
Commission will:
(A) by order approve such proposed
rule change, as amended, or
(B) institute proceedings to determine
whether the proposed rule change, as
amended, 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, as amended, is consistent with
the Act.
At the NASD’s request, the
Commission also is seeking comment on
whether 90 days from the publication of
NASD’s Notice to Members provides
adequate time for implementation of the
proposal or whether additional
implementation time may be needed
and the reasons therefor. 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–NASD–2005–146 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–NASD–2005–146. 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
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65867
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 NASD. 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–NASD–2005–146 and
should be submitted on or before
November 30, 2006.
For the Commission, by the Division
of Market Regulation, pursuant to
delegated authority.21
Nancy M. Morris,
Secretary.
[FR Doc. E6–18977 Filed 11–8–06; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–54692; File No. SR–NSX–
2006–12]
Self-Regulatory Organizations;
National Stock Exchange, Inc.; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change To
Implement a Fee Schedule Under Rule
16.1(a) and 16.1(c) for Transactions
Executed Through the Intermarket
Trading System Plan and/or the Plan
for the Purpose of Creating and
Operating an Intermarket
Communications Linkage
November 2, 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 October
2, 2006, the National Stock Exchange,
Inc.SM (‘‘NSX’’ 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 NSX. NSX
submitted the proposed rule change
21 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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65868
Federal Register / Vol. 71, No. 217 / Thursday, November 9, 2006 / Notices
under Section 19(b)(3)(A) of the Act 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 is proposing to
implement a Fee Schedule under Rule
16.1(a) and 16.1(c) for transactions
executed through the Intermarket
Trading System Plan and/or the Plan for
the Purpose of Creating and Operating
an Intermarket Communications
Linkage (‘‘ITS Plans’’).5 The text of the
proposed rule change is available on the
Exchange’s Web site at https://
www.nsx.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 parts of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
In anticipation of the approval of the
Exchange’s new trading rules,6 the
Exchange amended its rules in July 2006
to add Chapter XVI to its rules to set
forth, in their own chapter, rules
relating to fees, dues, assessments and
the tape rebate program. The rule
change, SR–NSX–2006–10, was filed
pursuant to Section 19(b)(3)(A) of the
3 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(2).
5 Since October 1, 2006, the effective date of the
‘‘Plan for the Purpose of Creating and Operating an
Intermarket Communications Linkage Pursuant to
Section 11A(a)(3)(B) of the Securities Exchange Act
of 1934’’ (‘‘Linkage Plan’’), connectivity between
markets is provided pursuant to the Linkage Plan.
See Securities Exchange Act Release No. 54551
(September 29, 2006), 71 FR 59148 (October 6,
2006) (approving the NMS Linkage Plan).
6 See Securities Exchange Act Release No. 54391
(August 31, 2006), 71 FR 52836 (September 7,
2006).
sroberts on PROD1PC70 with NOTICES
4 17
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16:26 Nov 08, 2006
Jkt 211001
Act, which rendered it effective upon
filing.7 As part of that filing, Rule
16.1(c) states that the Exchange will
‘‘provide ETP Holders with notice of all
relevant dues, fees, assessments and
charges of the Exchange. Such notice
may be made available to ETP Holders
on the Exchange’s Web site or by any
other method deemed reasonable by the
Exchange.’’
As part of this rule change, the
Exchange is filing a Fee Schedule under
Rule 16.1(a) and 16.1(c) for transactions
executed through the ITS Plans.8 The
Fee Schedule provides for the ability to
pass through costs that are assessed by
a third party to the Exchange if such
costs are attributable to transactions
executed through the ITS Plans.9
While SR–NSX–2006–10 was effective
upon filing, Rule 16.3 allows the
Exchange to delay the effectiveness of
Chapter XVI until it gives written notice
to its ETP Holders. The Exchange will
give notice declaring Rule 16.1(a) and
16.1(c) of Chapter XVI effective solely to
implement the pass-through cost
provisions for transactions executed
through the ITS Plans. All other fees
continue to be governed by Rule 11.10
for National Securities Trading System
Fees. Moreover, nothing in the proposed
Fee Schedule alters in any way any fees
otherwise owed under NSX Rule 11.10.
Pursuant to newly approved Rule
16.1(c), the Exchange will ‘‘provide ETP
Holders with notice of all relevant dues,
fees, assessments and charges of the
Exchange.’’ ETP Holders and others
using the Exchange will be advised of
these fees through the Exchange’s Web
site. In addition, the ETP Holders will,
simultaneous with the filing, be notified
through the issuance of a Regulatory
Circular declaring Rule 16.1(a) and
16.1(c) of Chapter XVI effective, and
attaching the new Fee Schedule
applicable to transactions through the
ITS plans.
The fees have been designed in this
manner in order to ensure that the
Exchange can continue to fulfill its
7 See Securities Exchange Act Release No. 54194
(July 24, 2006), 71 FR 43258 (July 31, 2006) (Rule
16.3 provides that the new Chapter XVI will
become effective upon written notice by the
Exchange to the ETP Holders).
8 As set forth in Release No. 34–54194, the
Exchange proposed to maintain a separate fee
schedule that contains its current fees, dues and
other charges, instead of including all of its specific
fees, dues and charges in the text of its rules.
9 See Securities Exchange Act Release Nos. 54548
(September 29, 2006), 71 FR 59159 (October 6,
2006) and 54480 (September 21, 2006) 71 FR 57596
(September 29, 2006) (which allow Linkage Plan
participants to directly bill, and to accept direct
billing from, any such Linkage Plan participants
that are unable to implement Sponsoring Member
billing by October 1, 2006.)
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Frm 00098
Fmt 4703
Sfmt 4703
obligations under Section 6(b) of the
Act.10
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the provisions of Section 6(b) of the
Act,11 in general, and Section 6(b)(4) of
the Act,12 in particular, in that it is
designed to provide for the equitable
allocation of reasonable dues, fees and
other charges.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
The Exchange has neither solicited
nor received written comments on the
proposed rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The proposed rule change has become
effective pursuant to Section
19(b)(3)(A)(ii) of the Act 13 and
subparagraph (f)(2) of Rule 19b–4 14
thereunder, because it involves a
member due, fee or other charge. 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.
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 (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
10 15
U.S.C. 78f(b).
id.
12 15 U.S.C. 78f(b)(4).
13 15 U.S.C. 78s(b)(3)(A)(ii).
14 17 CFR 240.19b–4(f)(2).
11 See
E:\FR\FM\09NON1.SGM
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Federal Register / Vol. 71, No. 217 / Thursday, November 9, 2006 / Notices
Number SR–NSX–2006–12 on the
subject line.
SECURITIES AND EXCHANGE
COMMISSION
Paper Comments
[Release No. 34–54694; File No. SR–NYSE–
2006–93]
• Send paper comments in triplicate
to Nancy Morris, Secretary, Securities
and Exchange Commission, 100 F
Street, NE., Washington, DC 20549–
1090.
All submissions should refer to File
No. SR–NSX–2006–12. This file number
should be included in the subject line
if e-mail is used. To help the
Commission process and review
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 filings 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 number
SR–NSX–2006–12 and should be
submitted on or before November 30,
2006.
For the Commission, by the Division of
Market Regulation, pursuant to the delegated
authority.15
Nancy Morris,
Secretary.
[FR Doc. E6–18947 Filed 11–8–06; 8:45 am]
sroberts on PROD1PC70 with NOTICES
BILLING CODE 8011–01–P
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing of Proposed Rule Change
Relating to Amendments to NYSE Rule
607 Concerning the Use of the Random
Selection Method To Appoint
Arbitrators in Matters Not Involving
Customers
November 2, 2006.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 1 and Rule 19b–4 thereunder,2
notice is hereby given that on October
24, 2006, the New York Stock Exchange
LLC (‘‘NYSE’’ or the ‘‘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
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
NYSE is proposing to amend Rule
607(c) to provide that in all arbitration
matters not involving customers,
claimants may use the ‘‘Random List
Selection’’ method for arbitrator
appointment. Below is the text of the
proposed rule change. Proposed new
language is in italics; proposed
deletions are in brackets.
*
*
*
*
*
Rule 607. Appointment of Arbitrators
(c) Party Requests for [Agreement on
Arbitrator Selection] Random List
Selection
If the customer [or non-member]
requests in writing within 45 days from
the time the statement of claim is filed,
[or, if all parties agree and so notify the
Exchange within that time frame,]
arbitrators will be selected according to
Random List Selection, as described
below. In all arbitration matters not
involving customers, if the claimant
requests in writing within 45 days from
the time the statement of claim is filed,
arbitrators will be selected according to
Random List Selection, as described
below. The Exchange will accommodate
any reasonable alternative way to select
arbitrators, provided the parties agree.
*
*
*
*
*
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
NYSE included statements concerning
the purpose of and basis for the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
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
Under the Random List Selection
methodology, the Director of Arbitration
sends parties a randomly generated list
of five public arbitrators for claims
heard by a single arbitrator. If the claim
is heard by three arbitrators, the Director
of Arbitration provides parties a
randomly generated list of 10 public
arbitrators and another list of five
securities industry arbitrators. Each
party is then allocated strikes against
these arbitrators.3 Currently, customers
or non-members may request in writing
a Random List Selection within 45 days
after they file a statement of claim. The
parties also may agree to this
methodology provided that they notify
the NYSE within this timeframe.4 If
parties do not request a Random List
Selection, the Director of Arbitration
will select the arbitrator(s) and name a
chairman of each panel.5 NYSE Rule
607(c) also permits the NYSE to
accommodate reasonable alternatives to
select arbitrators, provided that all
parties agree on the methodology.
Under the proposed amendments to
NYSE Rule 607(c), the Random List
Selection methodology could be used in
all arbitration matters not involving
customers if the claimant requests that
methodology in writing within 45 days
after filing its statement of claim. The
proposed amendments would not
change the ability of a customer to
request the Random Selection Method.
The purpose of these amendments is to
allow non-member or member claimants
to use the Random List Selection
method and to ensure that their choice
of methodology for arbitrator
appointment would prevail.
3 NYSE
Rule 607(c)(2)(i).
Rule 607(c).
5 NYSE Rule 607(b).
1 15
15 17
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
CFR 200.30–3(a)(12).
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16:26 Nov 08, 2006
Jkt 211001
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4 NYSE
Sfmt 4703
65869
E:\FR\FM\09NON1.SGM
09NON1
]]>Agencies
[Federal Register Volume 71, Number 217 (Thursday, November 9, 2006)]
[Notices]
[Pages 65867-65869]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-18947]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-54692; File No. SR-NSX-2006-12]
Self-Regulatory Organizations; National Stock Exchange, Inc.;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Implement a Fee Schedule Under Rule 16.1(a) and 16.1(c) for
Transactions Executed Through the Intermarket Trading System Plan and/
or the Plan for the Purpose of Creating and Operating an Intermarket
Communications Linkage
November 2, 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 October 2, 2006, the National Stock Exchange, Inc.SM
(``NSX'' 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 NSX. NSX
submitted the proposed rule change
[[Page 65868]]
under Section 19(b)(3)(A) of the Act \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.
---------------------------------------------------------------------------
\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).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange is proposing to implement a Fee Schedule under Rule
16.1(a) and 16.1(c) for transactions executed through the Intermarket
Trading System Plan and/or the Plan for the Purpose of Creating and
Operating an Intermarket Communications Linkage (``ITS Plans'').\5\ The
text of the proposed rule change is available on the Exchange's Web
site at https://www.nsx.com, at the Exchange's Office of the Secretary
and at the Commission's Public Reference Room.
---------------------------------------------------------------------------
\5\ Since October 1, 2006, the effective date of the ``Plan for
the Purpose of Creating and Operating an Intermarket Communications
Linkage Pursuant to Section 11A(a)(3)(B) of the Securities Exchange
Act of 1934'' (``Linkage Plan''), connectivity between markets is
provided pursuant to the Linkage Plan. See Securities Exchange Act
Release No. 54551 (September 29, 2006), 71 FR 59148 (October 6,
2006) (approving the NMS Linkage Plan).
---------------------------------------------------------------------------
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 parts of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
In anticipation of the approval of the Exchange's new trading
rules,\6\ the Exchange amended its rules in July 2006 to add Chapter
XVI to its rules to set forth, in their own chapter, rules relating to
fees, dues, assessments and the tape rebate program. The rule change,
SR-NSX-2006-10, was filed pursuant to Section 19(b)(3)(A) of the Act,
which rendered it effective upon filing.\7\ As part of that filing,
Rule 16.1(c) states that the Exchange will ``provide ETP Holders with
notice of all relevant dues, fees, assessments and charges of the
Exchange. Such notice may be made available to ETP Holders on the
Exchange's Web site or by any other method deemed reasonable by the
Exchange.''
---------------------------------------------------------------------------
\6\ See Securities Exchange Act Release No. 54391 (August 31,
2006), 71 FR 52836 (September 7, 2006).
\7\ See Securities Exchange Act Release No. 54194 (July 24,
2006), 71 FR 43258 (July 31, 2006) (Rule 16.3 provides that the new
Chapter XVI will become effective upon written notice by the
Exchange to the ETP Holders).
---------------------------------------------------------------------------
As part of this rule change, the Exchange is filing a Fee Schedule
under Rule 16.1(a) and 16.1(c) for transactions executed through the
ITS Plans.\8\ The Fee Schedule provides for the ability to pass through
costs that are assessed by a third party to the Exchange if such costs
are attributable to transactions executed through the ITS Plans.\9\
---------------------------------------------------------------------------
\8\ As set forth in Release No. 34-54194, the Exchange proposed
to maintain a separate fee schedule that contains its current fees,
dues and other charges, instead of including all of its specific
fees, dues and charges in the text of its rules.
\9\ See Securities Exchange Act Release Nos. 54548 (September
29, 2006), 71 FR 59159 (October 6, 2006) and 54480 (September 21,
2006) 71 FR 57596 (September 29, 2006) (which allow Linkage Plan
participants to directly bill, and to accept direct billing from,
any such Linkage Plan participants that are unable to implement
Sponsoring Member billing by October 1, 2006.)
---------------------------------------------------------------------------
While SR-NSX-2006-10 was effective upon filing, Rule 16.3 allows
the Exchange to delay the effectiveness of Chapter XVI until it gives
written notice to its ETP Holders. The Exchange will give notice
declaring Rule 16.1(a) and 16.1(c) of Chapter XVI effective solely to
implement the pass-through cost provisions for transactions executed
through the ITS Plans. All other fees continue to be governed by Rule
11.10 for National Securities Trading System Fees. Moreover, nothing in
the proposed Fee Schedule alters in any way any fees otherwise owed
under NSX Rule 11.10.
Pursuant to newly approved Rule 16.1(c), the Exchange will
``provide ETP Holders with notice of all relevant dues, fees,
assessments and charges of the Exchange.'' ETP Holders and others using
the Exchange will be advised of these fees through the Exchange's Web
site. In addition, the ETP Holders will, simultaneous with the filing,
be notified through the issuance of a Regulatory Circular declaring
Rule 16.1(a) and 16.1(c) of Chapter XVI effective, and attaching the
new Fee Schedule applicable to transactions through the ITS plans.
The fees have been designed in this manner in order to ensure that
the Exchange can continue to fulfill its obligations under Section 6(b)
of the Act.\10\
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78f(b).
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the provisions of Section 6(b) of the Act,\11\ in general, and
Section 6(b)(4) of the Act,\12\ in particular, in that it is designed
to provide for the equitable allocation of reasonable dues, fees and
other charges.
---------------------------------------------------------------------------
\11\ See id.
\12\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants or Others
The Exchange has neither solicited nor received written comments on
the proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The proposed rule change has become effective pursuant to Section
19(b)(3)(A)(ii) of the Act \13\ and subparagraph (f)(2) of Rule 19b-4
\14\ thereunder, because it involves a member due, fee or other charge.
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.
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\13\ 15 U.S.C. 78s(b)(3)(A)(ii).
\14\ 17 CFR 240.19b-4(f)(2).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://
www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File
[[Page 65869]]
Number SR-NSX-2006-12 on the subject line.
Paper Comments
Send paper comments in triplicate to Nancy Morris,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.
All submissions should refer to File No. SR-NSX-2006-12. This file
number should be included in the subject line if e-mail is used. To
help the Commission process and review 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
filings 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 number SR-NSX-2006-12 and should be submitted on or before
November 30, 2006.
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\15\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Market Regulation,
pursuant to the delegated authority.\15\
Nancy Morris,
Secretary.
[FR Doc. E6-18947 Filed 11-8-06; 8:45 am]
BILLING CODE 8011-01-P
