Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Prohibit Specialists From Charging Commissions on Transactions in Their Specialty Securities, 71217-71219 [E6-20874]

Download as PDF Federal Register / Vol. 71, No. 236 / Friday, December 8, 2006 / Notices Section 6(b)(4) 10 in particular, in that it is designed to provide for the equitable allocation of reasonable dues, fees and other charges among its members and other persons using its facilities. 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 Written comments were neither solicited nor received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing proposed rule change has become effective upon filing pursuant to Section 19(b)(3)(A) of the Act 11 and Rule 19b–4(f)(2) 12 thereunder because it establishes or changes a due, fee, or other charge imposed by the Exchange. At any time within 60 days of the filing of the 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 All submissions should refer to File Number SR–NYSE–2006–106. 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 Commissions 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 NYSE. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR–NYSE–2006–106 and should be submitted on or before December 29, 2006. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.13 Florence E. Harmon, Deputy Secretary. [FR Doc. E6–20872 Filed 12–7–06; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–54850; File No. SR–NYSE– 2006–105] Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Prohibit Specialists From Charging Commissions on Transactions in Their Specialty Securities Paper Comments sroberts on PROD1PC70 with NOTICES • 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 No. SR–NYSE–2006–106 on the subject line. November 30, 2006. • Send paper comments in triplicate to Nancy M. Morris, Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549–1090. 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 November 30, 2006, the New York Stock Exchange LLC (‘‘Exchange’’ or ‘‘NYSE’’) filed with the Securities and Exchange Commission (‘‘Commission’’) the proposed rule change as described in Items I and II below, which Items have been substantially prepared by the Exchange. The Exchange has designated this proposal as non-controversial under Section 19(b)(3)(A)(iii) of the Act 3 and Rule 19b–4(f)(6) thereunder,4 which renders the proposed rule change effective upon filing with the Commission. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to adopt new Rule 104B prohibiting specialist firms from charging commissions on transactions in their specialty securities, including exchange traded fund (‘‘ETF’’) securities, and to make changes to Rules 104 and 123B to reflect the fact that specialists will no longer be able to charge commissions. In connection with the elimination of specialist commissions, the Exchange proposes in a separate filing (the ‘‘Fee Filing’’) 5 to institute a program of revenue sharing for the specialists. The proposed rule changes will take effect as of December 1, 2006. The amendments to the Exchange’s Rules are included in Exhibit 5 to the Exchange’s filing. 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 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 NYSE has prepared summaries, set forth in Sections A, B, and C below, of the most significant aspects of such statements. The text of the proposed rule change is available on the Exchange’s Web site (http://www.nyse.com), at the Exchange’s Office of the Secretary, and at the Commission’s Public Reference Room. 3 15 10 15 U.S.C. 78f(b)(4). 11 15 U.S.C. 78s(b)(3)(A). 12 17 CFR 19b–4(f)(2). VerDate Aug<31>2005 19:05 Dec 07, 2006 13 17 CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. Jkt 211001 PO 00000 Frm 00098 Fmt 4703 Sfmt 4703 71217 U.S.C. 78s(b)(3)(A)(iii). CFR 240.19b–4(f)(6). 5 See SR–NYSE–2006–106 (filed on November 30, 2006). 4 17 E:\FR\FM\08DEN1.SGM 08DEN1 71218 Federal Register / Vol. 71, No. 236 / Friday, December 8, 2006 / Notices A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change sroberts on PROD1PC70 with NOTICES 1. Purpose The Exchange proposes to adopt new Rule 104B prohibiting specialist firms from charging commissions on transactions in their specialty securities, including ETF securities, and to make changes to Rules 104 and 123B to reflect the fact that specialists will no longer be able to charge commissions. In connection with the elimination of specialist commissions, the Exchange proposes, in the separate Fee Filing, to: (i) Eliminate the specialist trading privilege fee and the specialist allocation fee, and (ii) institute a program of revenue sharing for the specialists. In the Fee Filing, the Exchange is also: (i) Eliminating its $750,000 monthly fee cap on equity transactions, (ii) adopting a flat equity transaction fee of $0.000275 per share, and (iii) applying the $0.0030 per share ETF fee to ETFs traded on an unlisted trading privilege basis. We are requesting that the Commission make the effectiveness of this filing operative on December 1, 2006, the same day the changes contained in the Fee Filing take effect. The Exchange proposes to implement new Rule 104B prohibiting specialist firms from charging commissions on transactions in their specialty securities, including ETFs, and to make technical conforming changes to Rules 104 and 123B to reflect the fact that specialists will no longer be able to charge commissions on equity or ETF transactions.6 The elimination of specialist commissions will take effect on December 1, 2006, and will not have retroactive effect. Therefore, specialist firms will not be prohibited from collecting commissions owed on transactions completed before that date. Subsection (4) of Supplementary Material .20 of Rule 104 (‘‘Dealings by Specialists’’) provides that, for those members registered as a regular specialist subject to the Commission’s Net Capital Rule,7 the term ‘‘net liquid assets’’ refers to excess net capital computed in accordance with the 6 The ETF transactions with respect to which specialists will be prohibited from charging commissions will include transactions in Investment Company Units pursuant to Exchange Rule 1100, Trust Issued Receipts pursuant to Exchange Rule 1200, and streetTRACKS Gold Shares pursuant to Exchange Rule 1300, Currency Trust Shares pursuant to Exchange Rule 1300A, Commodity Trust Shares pursuant to Exchange Rule 1300B or any security governed by Exchange Rule series 1100, 1200, 1300, 1300A or 1300B. 7 See 17 CFR 240.15c3–1. VerDate Aug<31>2005 19:05 Dec 07, 2006 Jkt 211001 provisions of Rule 325 (‘‘Capital Requirements’’) with certain adjustments, including deductions for floor brokerage and/or commissions receivable. Similarly, Rule 123B(b)(1) and Supplementary Material .10 to Rule 123B provide that a specialist may not charge floor brokerage (i.e., a commission) for the execution of an order which he or she receives by means of the Exchange’s automated order routing system, known as SuperDot, if such order is executed within five minutes of receipt by the specialist. As, under new Rule 104B, specialists will be prohibited from charging any commissions in relation to trades in their specialty securities, the foregoing provisions will cease to be relevant and the Exchange proposes to delete them upon adoption of new Rule 104B. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with the objectives of Section 6 8 of the Securities Exchange Act of 1934 in general and furthers the objectives of Section 6(b)(5) 9 in particular, in that it is designed to promote just and equitable principles of trade, to remove impediments, and to perfect the mechanism of, a free and open market and a national market system, and, in general, to protect investors and the public interest. 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 Written comments were neither solicited nor received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The Exchange has filed the proposed rule change pursuant to Section 19(b)(3)(A) of the Act 10 and subparagraph (f)(6) of Rule 19b–4 thereunder.11 Because the Exchange has designated the foregoing proposed rule change as one that: (i) Does not significantly affect the protection of investors or the public interest; (ii) does 8 15 U.S.C. 78f. U.S.C. 78f(b)(5). 10 15 U.S.C. 78s(b)(3)(A). 11 17 CFR 240.19b–4(f)(6). 9 15 PO 00000 Frm 00099 Fmt 4703 Sfmt 4703 not impose any significant burden on competition; and (iii) does not become operative for 30 days from the date on which it was filed, or such shorter time as the Commission may designate, if consistent with the protection of investors and the public interest, the proposed rule change has become effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b–4(f)(6)(iii) thereunder.12 The Exchange requests that the Commission waive the 30-day operative delay specified in Rule 19b–4(f)(6)(iii) with respect to the proposed rule change.13 The Exchange represents that the specialist firms affected by the proposal have all agreed to the elimination of commissions contingent upon the Exchange’s implementation of the revenue sharing program proposed in the Fee Filing. As the proposal and the revision to the Exchange’s trading fees are both parts of an integrated plan in which (i) the revenues generated from the revised fees will partially offset the cost to the Exchange of the payments the Exchange will make to the specialists under the revenue sharing program, and (ii) the cost to customers of the increased transaction fees will be offset at least partially by the elimination of commissions, it is essential that the proposals in this filing takes effect at the same time as the fee change. Therefore, the Exchange believes that waiving the 30-day operative delay is consistent with the protection of investors and the public interest. The Commission has determined to waive the 30-day delay and allow the proposed rule change to become operative on December 1, 2006.14 The Commission believes that waiving the 30-day operative delay is consistent with the protection of investors and the public interest because the Exchange has represented that the elimination of specialist commissions will benefit investors by helping to offset their increased transaction fees under the Fee Filing. At any time within 60 days of the filing of the 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 12 The Exchange provided written notice to the Commission of its intent to file the proposed rule change, along with a brief description and text of the proposed rule change, at least five business days prior to filing, as required by Rule 19b–4(f)(6)(iii). 13 17 CFR 240.19b–4(f)(6)(iii). 14 For purposes only of waiving the operative delay of this proposal, 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). E:\FR\FM\08DEN1.SGM 08DEN1 Federal Register / Vol. 71, No. 236 / Friday, December 8, 2006 / Notices 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: For the Commission, by the Division of Market Regulation, pursuant to delegated authority.15 Florence E. Harmon, Deputy Secretary. [FR Doc. E6–20874 Filed 12–7–06; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–54849; File No. SR–NYSE– 2006–104] 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 No. SR–NYSE–2006–105 on the subject line. Paper Comments sroberts on PROD1PC70 with NOTICES • Send paper comments in triplicate to Nancy M. Morris, Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549–1090. Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Waive Initial Listing Fee and One-Time Special Charge in Connection With Listing New Class of Common Shares Payable by Any Company Listed on Another National Securities Exchange That Transfers the Listing of Its Primary Class of Common Shares to the NYSE November 30, 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 November All submissions should refer to File 29, 2006, The New York Stock Exchange Number SR–NYSE–2006–105. This file LLC (‘‘Exchange’’ or ‘‘NYSE’’) filed with number should be included on the the Securities and Exchange subject line if e-mail is used. To help the Commission (‘‘Commission’’) the Commission process and review your proposed rule change as described in comments more efficiently, please use Items I and II below, which Items have only one method. The Commission will been prepared substantially by NYSE. post all comments on the Commissions The Exchange filed the proposal as a Internet Web site (http://www.sec.gov/ ‘‘non-controversial’’ proposed rule rules/sro.shtml). Copies of the change pursuant to Section 19(b)(3)(A) submission, all subsequent of the Act,3 and Rule 19b–4(f)(6) amendments, all written statements thereunder,4 which renders the proposal with respect to the proposed rule effective upon filing with the change that are filed with the Commission.5 The Commission is Commission, and all written publishing this notice to solicit communications relating to the comments on the proposed rule change proposed rule change between the from interested persons. Commission and any person, other than I. Self-Regulatory Organization’s those that may be withheld from the Statement of the Terms of Substance of public in accordance with the the Proposed Rule Change provisions of 5 U.S.C. 552, will be NYSE proposes to amend Section available for inspection and copying in 902.03 of its Listed Company Manual to the Commission’s Public Reference Room. Copies of such filing also will be provide that there shall be no initial listing fee payable by any company available for inspection and copying at the principal office of the Exchange. All listed on another national securities exchange that transfers the listing of its comments received will be posted without change; the Commission does 1 15 U.S.C. 78s(b)(1). not edit personal identifying 2 17 CFR 240.19b–4. information from submissions. You 3 15 U.S.C. 78s(b)(3)(A). should submit only information that 4 17 CFR 240.19b–4(f)(6). you wish to make available publicly. All 5 NYSE gave the Commission written notice of its submissions should refer to File intention to file the proposed rule change on Number SR–NYSE–2006–105 and November 29, 2006. The Commission reviewed the proposed rule change and gave NYSE permission to should be submitted on or before file the proposed rule change on the same day. December 29, 2006. 15 17 NYSE has asked the Commission to waive the 30day operative delay. See Rule 19b–4(f)(6)(iii). 17 CFR 240.19b–4(f)(6)(iii). CFR 200.30–3(a)(12). VerDate Aug<31>2005 19:05 Dec 07, 2006 Jkt 211001 PO 00000 Frm 00100 Fmt 4703 Sfmt 4703 71219 primary class of common shares to the Exchange. The Exchange will eliminate initial listing fees for issuers listed on other national securities exchanges that transfer their listing to the Exchange on or after November 29, 2006. In addition, the Exchange will waive with respect to such issuers the special one-time charge of $37,500 payable in connection with the initial listing of any class of common shares. The text of the proposed rule change is available at www.nyse.com, at the NYSE, and at the Commission’s Public Reference Room. II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, NYSE included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. NYSE has prepared summaries, set forth in Sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose NYSE proposes to amend Section 902.03 of its Listed Company Manual to provide that there shall be no initial listing fee payable by any company listed on another national securities exchange that transfers the listing of its primary class of common shares to the Exchange. NYSE will eliminate entry and application fees for exchange issuers that transfer their listing to the Exchange on or after November 29, 2006. In addition, the Exchange will waive with respect to such issuers the special one-time charge of $37,500 payable in connection with the initial listing of any class of common shares. For issuers that have paid these fees, the Exchange will refund the money. Companies transferring from other national securities exchanges will still be required to pay the annual listing fee payable by all companies, prorated for the first portion of a calendar year after the listing date. Companies transferring from other national securities exchanges will be subject to the same level of annual fees and listing of additional shares fees as other NYSE issuers. The proposed rule change will not affect the Exchange’s commitment of resources to its regulatory oversight of the listing E:\FR\FM\08DEN1.SGM 08DEN1

Agencies

[Federal Register Volume 71, Number 236 (Friday, December 8, 2006)]
[Notices]
[Pages 71217-71219]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-20874]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-54850; File No. SR-NYSE-2006-105]


Self-Regulatory Organizations; New York Stock Exchange LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Prohibit Specialists From Charging Commissions on Transactions in Their 
Specialty Securities

November 30, 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 November 30, 2006, the New York Stock Exchange LLC (``Exchange'' or 
``NYSE'') filed with the Securities and Exchange Commission 
(``Commission'') the proposed rule change as described in Items I and 
II below, which Items have been substantially prepared by the Exchange. 
The Exchange has designated this proposal as non-controversial under 
Section 19(b)(3)(A)(iii) of the Act \3\ and Rule 19b-4(f)(6) 
thereunder,\4\ which renders the proposed rule change 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)(iii).
    \4\ 17 CFR 240.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to adopt new Rule 104B prohibiting specialist 
firms from charging commissions on transactions in their specialty 
securities, including exchange traded fund (``ETF'') securities, and to 
make changes to Rules 104 and 123B to reflect the fact that specialists 
will no longer be able to charge commissions. In connection with the 
elimination of specialist commissions, the Exchange proposes in a 
separate filing (the ``Fee Filing'') \5\ to institute a program of 
revenue sharing for the specialists. The proposed rule changes will 
take effect as of December 1, 2006. The amendments to the Exchange's 
Rules are included in Exhibit 5 to the Exchange's filing.
---------------------------------------------------------------------------

    \5\ See SR-NYSE-2006-106 (filed on November 30, 2006).
---------------------------------------------------------------------------

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 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 NYSE has prepared summaries, set forth in Sections 
A, B, and C below, of the most significant aspects of such statements.
    The text of the proposed rule change is available on the Exchange's 
Web site (http://www.nyse.com), at the Exchange's Office of the 
Secretary, and at the Commission's Public Reference Room.

[[Page 71218]]

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to adopt new Rule 104B prohibiting specialist 
firms from charging commissions on transactions in their specialty 
securities, including ETF securities, and to make changes to Rules 104 
and 123B to reflect the fact that specialists will no longer be able to 
charge commissions. In connection with the elimination of specialist 
commissions, the Exchange proposes, in the separate Fee Filing, to: (i) 
Eliminate the specialist trading privilege fee and the specialist 
allocation fee, and (ii) institute a program of revenue sharing for the 
specialists. In the Fee Filing, the Exchange is also: (i) Eliminating 
its $750,000 monthly fee cap on equity transactions, (ii) adopting a 
flat equity transaction fee of $0.000275 per share, and (iii) applying 
the $0.0030 per share ETF fee to ETFs traded on an unlisted trading 
privilege basis. We are requesting that the Commission make the 
effectiveness of this filing operative on December 1, 2006, the same 
day the changes contained in the Fee Filing take effect.
    The Exchange proposes to implement new Rule 104B prohibiting 
specialist firms from charging commissions on transactions in their 
specialty securities, including ETFs, and to make technical conforming 
changes to Rules 104 and 123B to reflect the fact that specialists will 
no longer be able to charge commissions on equity or ETF 
transactions.\6\ The elimination of specialist commissions will take 
effect on December 1, 2006, and will not have retroactive effect. 
Therefore, specialist firms will not be prohibited from collecting 
commissions owed on transactions completed before that date.
---------------------------------------------------------------------------

    \6\ The ETF transactions with respect to which specialists will 
be prohibited from charging commissions will include transactions in 
Investment Company Units pursuant to Exchange Rule 1100, Trust 
Issued Receipts pursuant to Exchange Rule 1200, and 
streetTRACKS[supreg] Gold Shares pursuant to Exchange Rule 1300, 
Currency Trust Shares pursuant to Exchange Rule 1300A, Commodity 
Trust Shares pursuant to Exchange Rule 1300B or any security 
governed by Exchange Rule series 1100, 1200, 1300, 1300A or 1300B.
---------------------------------------------------------------------------

    Subsection (4) of Supplementary Material .20 of Rule 104 
(``Dealings by Specialists'') provides that, for those members 
registered as a regular specialist subject to the Commission's Net 
Capital Rule,\7\ the term ``net liquid assets'' refers to excess net 
capital computed in accordance with the provisions of Rule 325 
(``Capital Requirements'') with certain adjustments, including 
deductions for floor brokerage and/or commissions receivable. 
Similarly, Rule 123B(b)(1) and Supplementary Material .10 to Rule 123B 
provide that a specialist may not charge floor brokerage (i.e., a 
commission) for the execution of an order which he or she receives by 
means of the Exchange's automated order routing system, known as 
SuperDot, if such order is executed within five minutes of receipt by 
the specialist. As, under new Rule 104B, specialists will be prohibited 
from charging any commissions in relation to trades in their specialty 
securities, the foregoing provisions will cease to be relevant and the 
Exchange proposes to delete them upon adoption of new Rule 104B.
---------------------------------------------------------------------------

    \7\ See 17 CFR 240.15c3-1.
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the objectives of Section 6 \8\ of the Securities Exchange Act of 
1934 in general and furthers the objectives of Section 6(b)(5) \9\ in 
particular, in that it is designed to promote just and equitable 
principles of trade, to remove impediments, and to perfect the 
mechanism of, a free and open market and a national market system, and, 
in general, to protect investors and the public interest.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78f.
    \9\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

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

    Written comments were neither solicited nor received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The Exchange has filed the proposed rule change pursuant to Section 
19(b)(3)(A) of the Act \10\ and subparagraph (f)(6) of Rule 19b-4 
thereunder.\11\ Because the Exchange has designated the foregoing 
proposed rule change as one that: (i) Does not significantly affect the 
protection of investors or the public interest; (ii) does not impose 
any significant burden on competition; and (iii) does not become 
operative for 30 days from the date on which it was filed, or such 
shorter time as the Commission may designate, if consistent with the 
protection of investors and the public interest, the proposed rule 
change has become effective pursuant to Section 19(b)(3)(A) of the Act 
and Rule 19b-4(f)(6)(iii) thereunder.\12\
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78s(b)(3)(A).
    \11\ 17 CFR 240.19b-4(f)(6).
    \12\ The Exchange provided written notice to the Commission of 
its intent to file the proposed rule change, along with a brief 
description and text of the proposed rule change, at least five 
business days prior to filing, as required by Rule 19b-4(f)(6)(iii).
---------------------------------------------------------------------------

    The Exchange requests that the Commission waive the 30-day 
operative delay specified in Rule 19b-4(f)(6)(iii) with respect to the 
proposed rule change.\13\ The Exchange represents that the specialist 
firms affected by the proposal have all agreed to the elimination of 
commissions contingent upon the Exchange's implementation of the 
revenue sharing program proposed in the Fee Filing. As the proposal and 
the revision to the Exchange's trading fees are both parts of an 
integrated plan in which (i) the revenues generated from the revised 
fees will partially offset the cost to the Exchange of the payments the 
Exchange will make to the specialists under the revenue sharing 
program, and (ii) the cost to customers of the increased transaction 
fees will be offset at least partially by the elimination of 
commissions, it is essential that the proposals in this filing takes 
effect at the same time as the fee change. Therefore, the Exchange 
believes that waiving the 30-day operative delay is consistent with the 
protection of investors and the public interest.
---------------------------------------------------------------------------

    \13\ 17 CFR 240.19b-4(f)(6)(iii).
---------------------------------------------------------------------------

    The Commission has determined to waive the 30-day delay and allow 
the proposed rule change to become operative on December 1, 2006.\14\ 
The Commission believes that waiving the 30-day operative delay is 
consistent with the protection of investors and the public interest 
because the Exchange has represented that the elimination of specialist 
commissions will benefit investors by helping to offset their increased 
transaction fees under the Fee Filing.
---------------------------------------------------------------------------

    \14\ For purposes only of waiving the operative delay of this 
proposal, 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).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of the 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

[[Page 71219]]

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 (http://
www.sec.gov/rules/sro.shtml); or
     Send an e-mail to rule-comments@sec.gov. Please include 
File No. SR-NYSE-2006-105 on the subject line.

Paper Comments

     Send paper comments in triplicate to Nancy M. Morris, 
Secretary, Securities and Exchange Commission, 100 F Street, NE., 
Washington, DC 20549-1090.

All submissions should refer to File Number SR-NYSE-2006-105. 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 Commissions 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 
available publicly. All submissions should refer to File Number SR-
NYSE-2006-105 and should be submitted on or before December 29, 2006.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\15\
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    \15\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Deputy Secretary.
[FR Doc. E6-20874 Filed 12-7-06; 8:45 am]
BILLING CODE 8011-01-P