Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change and Amendment No. 1 Thereto Relating to Exchange Fees and Charges, 77847-77849 [06-9864]

Download as PDF Federal Register / Vol. 71, No. 248 / Wednesday, December 27, 2006 / Notices attributes trade volume for direct billing purposes. 2. Statutory BasisThe Exchange states that the basis under the Act for this proposed rule change is the requirement under Section 6(b)(5) 6 that an exchange have rules that are designed to promote just and equitable principles of trade, to serve to remove impediments to and perfect the mechanism of a free and open market and a national market system, and in general, to protect investors and the public interest. The Exchange states that the proposed rule will provide more accurate order identification. B. Self-Regulatory Organization’s Statement on Burden on Competition The Exchange states that the proposed rule change does not 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 states that no written comments were solicited or received with respect to the proposed rule change. jlentini on PROD1PC65 with NOTICES III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the foregoing proposed rule change: (1) Does not significantly affect the protection of investors or the public interest; (2) does not impose any significant burden on competition; and (3) by its terms does not become operative for 30 days after the date of this filing, 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 7 and Rule 19b-4(f)(6) thereunder.8 The Exchange requests that the Commission waive the provision in Rule 19b-4(e)(6)(iii) 9 requiring written notice of the NYSE’s intent to file the proposed rule change at least five days prior to the filing date. The Commission grants the Exchange’s request to waive the pre-filing requirement because a similar version this proposal was filed previously with the Commission. At any time within 60 days of the filing of the proposed rule change, the 6 15 U.S.C. 78f(b)(5). U.S.C. 78s(b)(3)(A). 8 17 CFR 240.19b-4(f)(6). 9 17 CFR 240.19b-4(e)(6)(iii). 7 15 VerDate Aug<31>2005 20:43 Dec 26, 2006 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 (http://www.sec.gov/ rules/sro.shtml); or • Send an e-mail to rulecomments@sec.gov. Please include File No. SR–NYSE–2006–89 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 No. SR–NYSE–2006–89. This file number should be included on the subject line if e-mail is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission’s Internet Web site (http://www.sec.gov/ rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for inspection and copying in the Commission’s Public Reference Room. Copies of such filing will also be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File No. SR–NYSE–2006–89 and should be submitted on or before January 17, 2007. 10 17 Jkt 211001 PO 00000 CFR 200.30–3(a)(12). Frm 00131 Fmt 4703 Sfmt 4703 77847 For the Commission, by the Division of Market Regulation, pursuant to delegated authority.10 Nancy M. Morris, Secretary. [FR Doc. E6–22090 Filed 12–26–06; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–54966; File No. SR– NYSEArca–2006–89] Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change and Amendment No. 1 Thereto Relating to Exchange Fees and Charges December 19, 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 December 1, 2006, NYSE Arca, Inc. (‘‘NYSE Arca’’ 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 substantially prepared by NYSE Arca. On December 15, 2006, the Exchange submitted Amendment No. 1 to the proposed rule change. NYSE Arca has filed the proposal pursuant to 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, as amended, from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change NYSE Arca proposes to amend its Schedule of Fees and Charges For Exchange Services (‘‘Schedule’’) to make a minor change to the Firm Transaction Fee, eliminate certain obsolete fees, and make a nonsubstantive formatting change to the Schedule. The text of the proposed rule change is available on NYSE Arca’s Web site at http://www.nysearca.com, at the principal office of NYSE Arca, and at the Commission’s Public Reference Room. 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 15 U.S.C. 78s(b)(3)(A). 4 17 CFR 240.19b–4(f)(2). 2 17 E:\FR\FM\27DEN1.SGM 27DEN1 77848 Federal Register / Vol. 71, No. 248 / Wednesday, December 27, 2006 / Notices II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, NYSE Arca 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 the these statements may be examined at the places specified in Item IV below. NYSE Arca has prepared summaries, set forth in sections, A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to amend its Schedule in order to make a minor change to the Firm Transaction Fee, eliminate certain obsolete fees, and make a non-substantive formatting change. jlentini on PROD1PC65 with NOTICES Changes to the Firm Transaction Fee NYSE Arca charges transaction fees associated with all option contracts that are executed on the Exchange. The current Firm Transaction Fee applies to OTP Firm 5 proprietary trades that have a customer of that firm on the contra side of the transaction. The Exchange offers this rate as an incentive to OTP Firms to direct their customer orders to NYSE Arca for execution. NYSE Arca applies the Firm Transaction Fee to all trades between an OTP Firm and a customer of the same OTP Firm, whenever a proprietary account of the firm is used. This includes market makers that trade against orders that their affiliated firm represents for customers. The Firm Transaction Fee became applicable for certain market maker transactions upon the filing of a proposed rule change with the commission.6 At that time the Market Maker Transaction Fee was $0.26 per contract and the Firm Transaction Fee was $0.15 per contract. As stated above, the cost savings was offered as a incentive for Firms to send addition customer orders to NYSE Arca. As part of a more recent proposed rule change,7 the Market Maker Transaction Fee was lowered to $0.16 per contract, 5 See NYSE Arca Rule (1(r). Securities Exchange Act Release No. 53165 (January 22, 2006), 71 FR 4955 (January 30, 2006) (SR–PCX–2005–136.. 7 See Securities Exchange Act Release No. 54309 (August 11, 2006), 71 FR 48571 (August 21, 2006) (SR–NYSEArca–2006–25). 6 See VerDate Aug<31>2005 20:43 Dec 26, 2006 Jkt 211001 representing a savings of almost 40% over the previous fee. Because of the reduction in the Market Maker Transaction Fee, the additional savings afforded by the application of the Firm Transaction Fee in certain instances, is no longer significant. In order to simplify the billing process, all market maker transactions will now be billed the same the fee of $0.16 per contract. While this change represents a modest $0.01 increase in certain cases, the Exchange believes that it is more than compensated for by the previous reduction in the Market Maker Transaction Fee. The change to this fee will be reflected in the footnote associated with the Firm Transaction Fee on the Schedule. Elimination of Obsolete Fees Due to changes in the market structure at NYSE Arca certain fees have become outdate and obsolete. The Exchange proposes to eliminate these fees from the Schedule. • Order Cancellation Fee—This fee was applied to orders were cancelled on the PCX Plus automated trading system. This system is no longer in use and accordingly the fee no longer applies. ∑ Booth WorkStation Fee—This fee was assessed to OTP Firms operating on the floor of the Exchange that used certain Exchange provided workstations. These workstations have been replaced by firm proprietary systems; therefore the fee no longer applies. ∑ Printer Fee—Prior to the introduction of the OX system,8 the Exchange provided printers that would generate order tickets in certain cases where orders were not electronically executed or represented. OX is a fully automated system and does not need to print order tickets. The printers are no longer in use and therefore the user fee no longer applies. ∑ Market Maker Held Fees—Market Makers on the floor of the Exchange now use proprietary trading systems to interface with the OX system. The Market Maker Hand Held system is no longer in use on NYSE Area; accordingly the fees associated with it no longer apply. Administrative Changes the Exchange also proposes a change to the formatting of the Schedule. Presently, the Schedule shows a list of explanatory end notes on the last page of the Schedule. With the new format, 8 See Securities Exchange Act Release No. 54238 (July 28, 2006), 71 FR 44758 (August 7, 2006)(SR– NYSEArca–2006–13). PO 00000 Frm 00132 Fmt 4703 Sfmt 4703 the end notes will be moved to the appropriate page that shows the corresponding fee or charge. Except where previously noted, the language in the reference notes will remain the same, just the formatting of the reference note will change. The Exchange believes that by having the reference notes on the same page as the corresponding charge or fee, the Schedule will be more user friendly and easier to read. 2. Statutory Basis The Exchange believes that the proposal is consistent with the provisions of Section 6 of the Act, 9 in general, and with Section 6(b)(4) of the Act,10 in particular, in that the proposal provides for the equitable allocation of reasonable dues, fees, and other charges among its OTP Holders 11 and OTP Firms trading option contracts on NYSE Arca. 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 on the proposed rule change were neither solicited nor received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing proposed rule change is subject to Section 19(b)(3)(A)(ii) of the Act 12 and subparagraph (f)(2) of Rule 19b–4 thereunder 13 because it establishes or changes a due, fee, or other charge applicable only to a member imposed by the self-regulatory organization. Accordingly, the proposal is effective upon Commission receipt of the 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 interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act.14 9 15 U.S.C. 78f. U.S.C. 78f(b)(4). 11 See NYSE Arca rule 1(q). 12 15 U.S.C. 78s(b)(3)(A)(ii). 13 17 CFR 240.19bn–4(f)(2). 14 15 U.S.C. 78s(b)(3)(C). For purposes of calculating the 60-day period within which the 10 15 E:\FR\FM\27DEN1.SGM 27DEN1 Federal Register / Vol. 71, No. 248 / Wednesday, December 27, 2006 / Notices 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 from (http://www.sec.gov/ rules/sro.shtml); or • Send an e-mail to rulecomments@sec.gov. Please include File Number SR–NYSEArca–2006–89 on the subject line. jlentini on PROD1PC65 with NOTICES 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–NYSEArca–2006–89. This file number should be included on the subject line if e-mail is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission’s Internet Web site (http://www.sec.gov/ rules/sro.shtml. Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for inspection and copying in the Commission’s Public Reference Room. Copies of the filing also will be available for inspection and copying at the principal office of NYSE Arca. 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–NYSEArca–2006–89 and should be submitted on or before January 17, 2007. Commission may summarily abrogate the proposal, the Commission considers the period to commence on December 15, 2006, the date on which the Exchange submitted Amendment No. 1. VerDate Aug<31>2005 20:43 Dec 26, 2006 Jkt 211001 For the Commission, by the Division of Market Regulation, pursuant to delegated authority.15 Florence E. Harmon, Deputy Secretary. [FR Doc. 06–9864 Filed 12–26–06; 8:45 am] BILLING CODE 8011–01–M SECURITIES AND EXCHANGE COMMISSION [Release No. 34–54967; File No. SR– NYSEArca–2006–90] Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Order Granting Accelerated Approval of Proposed Rule Change to Trade Exchange-Traded Notes Linked to the MSCI India Total Return Index Pursuant to Unlisted Trading Privileges December 19, 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 December 18, 2006, NYSE Arca, Inc. (the ‘‘Exchange’’), through its wholly owned subsidiary, NYSE Arca Equities, Inc. (‘‘NYSE Arca Equities’’), 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 Commission is publishing this notice and order to solicit comments on the proposal from interested persons and to approve the proposal on an accelerated basis. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange, through NYSE Arca Equities, is proposing to trade Exchange-Traded Notes (‘‘Notes’’) of Barclays Bank PLC (‘‘Barclays’’) linked to the performance of the MSCI India Total Return Index (‘‘Index’’) pursuant to unlisted trading privileges (‘‘UTP’’). The text of the proposed rule change is available on the Exchange’s Web site http://www.nysearca.com, at the principal office of the Exchange, and at the Commission’s Public Reference Room. CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 77849 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 III below. The Exchange has prepared summaries, set forth in Sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange is proposing to trade the Notes of Barclays linked to the performance of the Index pursuant to UTP. The Index is a free-float-adjusted market capitalization index that is designed to measure the market performance, including price performance and income from dividend payments, of Indian equity securities. The Index is currently comprised of the top 68 companies by market capitalization listed on the National Stock Exchange of India. The Index is calculated by Morgan Stanley Capital International Inc. (‘‘MSCI’’) and is denominated in U.S. dollars. A rule proposal for the original listing and trading of the Notes by New York Stock Exchange LLC (‘‘NYSE’’) has been approved by the Commission.3 The Exchange deems the Notes to be an equity securities, thus rendering trading in the Notes subject to the Exchange’s existing rules governing the trading of equity securities. The trading hours for the Notes on the Exchange would be from 9:30 a.m. to 8 p.m. Eastern Time (‘‘ET’’) in accordance with NYSE Arca Equities Rule 7.34(a). Quotations for and last sale information regarding the Notes are disseminated through the Consolidated Quotation System. Bloomberg L.P. disseminates the value of the Index under the ticker symbol ‘‘NDEUSIA’’ and this information is widely disseminated by quotation vendors. The Index is static during the NYSE’s trading day from 9:30 a.m. ET to 4 p.m. ET, which is equivalent to the Exchange’s Core Trading Session. An intraday ‘‘indicative value’’ (‘‘IIV’’) meant to approximate the intrinsic 15 17 1 15 PO 00000 Frm 00133 Fmt 4703 Sfmt 4703 3 See Securities Exchange Act Release No. 54944 (December 15, 2006). E:\FR\FM\27DEN1.SGM 27DEN1

Agencies

[Federal Register Volume 71, Number 248 (Wednesday, December 27, 2006)]
[Notices]
[Pages 77847-77849]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 06-9864]


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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-54966; File No. SR-NYSEArca-2006-89]


Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change and Amendment No. 1 
Thereto Relating to Exchange Fees and Charges

December 19, 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 December 1, 2006, NYSE Arca, Inc. (``NYSE Arca'' 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 substantially prepared by NYSE Arca. On December 15, 
2006, the Exchange submitted Amendment No. 1 to the proposed rule 
change. NYSE Arca has filed the proposal pursuant to 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, as amended, 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

    NYSE Arca proposes to amend its Schedule of Fees and Charges For 
Exchange Services (``Schedule'') to make a minor change to the Firm 
Transaction Fee, eliminate certain obsolete fees, and make a non-
substantive formatting change to the Schedule. The text of the proposed 
rule change is available on NYSE Arca's Web site at http://www.nysearca.com, at the principal office of NYSE Arca, and at the 
Commission's Public Reference Room.

[[Page 77848]]

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 Arca 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 the these statements may be examined at the places specified in 
Item IV below. NYSE Arca has prepared summaries, set forth in sections, 
A, B, and C below, of the most significant aspects of such statements.

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

 1. Purpose
    The Exchange proposes to amend its Schedule in order to make a 
minor change to the Firm Transaction Fee, eliminate certain obsolete 
fees, and make a non-substantive formatting change.
Changes to the Firm Transaction Fee
    NYSE Arca charges transaction fees associated with all option 
contracts that are executed on the Exchange. The current Firm 
Transaction Fee applies to OTP Firm \5\ proprietary trades that have a 
customer of that firm on the contra side of the transaction. The 
Exchange offers this rate as an incentive to OTP Firms to direct their 
customer orders to NYSE Arca for execution. NYSE Arca applies the Firm 
Transaction Fee to all trades between an OTP Firm and a customer of the 
same OTP Firm, whenever a proprietary account of the firm is used. This 
includes market makers that trade against orders that their affiliated 
firm represents for customers. The Firm Transaction Fee became 
applicable for certain market maker transactions upon the filing of a 
proposed rule change with the commission.\6\ At that time the Market 
Maker Transaction Fee was $0.26 per contract and the Firm Transaction 
Fee was $0.15 per contract. As stated above, the cost savings was 
offered as a incentive for Firms to send addition customer orders to 
NYSE Arca. As part of a more recent proposed rule change,\7\ the Market 
Maker Transaction Fee was lowered to $0.16 per contract, representing a 
savings of almost 40% over the previous fee. Because of the reduction 
in the Market Maker Transaction Fee, the additional savings afforded by 
the application of the Firm Transaction Fee in certain instances, is no 
longer significant. In order to simplify the billing process, all 
market maker transactions will now be billed the same the fee of $0.16 
per contract. While this change represents a modest $0.01 increase in 
certain cases, the Exchange believes that it is more than compensated 
for by the previous reduction in the Market Maker Transaction Fee.
---------------------------------------------------------------------------

    \5\ See NYSE Arca Rule (1(r).
    \6\ See Securities Exchange Act Release No. 53165 (January 22, 
2006), 71 FR 4955 (January 30, 2006) (SR-PCX-2005-136..
    \7\ See Securities Exchange Act Release No. 54309 (August 11, 
2006), 71 FR 48571 (August 21, 2006) (SR-NYSEArca-2006-25).
---------------------------------------------------------------------------

    The change to this fee will be reflected in the footnote associated 
with the Firm Transaction Fee on the Schedule.
Elimination of Obsolete Fees
    Due to changes in the market structure at NYSE Arca certain fees 
have become outdate and obsolete. The Exchange proposes to eliminate 
these fees from the Schedule.
     Order Cancellation Fee--This fee was applied to orders 
were cancelled on the PCX Plus automated trading system. This system is 
no longer in use and accordingly the fee no longer applies.
     Booth WorkStation Fee--This fee was assessed to OTP Firms 
operating on the floor of the Exchange that used certain Exchange 
provided workstations. These workstations have been replaced by firm 
proprietary systems; therefore the fee no longer applies.
     Printer Fee--Prior to the introduction of the OX 
system,\8\ the Exchange provided printers that would generate order 
tickets in certain cases where orders were not electronically executed 
or represented. OX is a fully automated system and does not need to 
print order tickets. The printers are no longer in use and therefore 
the user fee no longer applies.
---------------------------------------------------------------------------

    \8\ See Securities Exchange Act Release No. 54238 (July 28, 
2006), 71 FR 44758 (August 7, 2006)(SR-NYSEArca-2006-13).
---------------------------------------------------------------------------

     Market Maker Held Fees--Market Makers on the floor of the 
Exchange now use proprietary trading systems to interface with the OX 
system. The Market Maker Hand Held system is no longer in use on NYSE 
Area; accordingly the fees associated with it no longer apply.
Administrative Changes
    the Exchange also proposes a change to the formatting of the 
Schedule. Presently, the Schedule shows a list of explanatory end notes 
on the last page of the Schedule. With the new format, the end notes 
will be moved to the appropriate page that shows the corresponding fee 
or charge. Except where previously noted, the language in the reference 
notes will remain the same, just the formatting of the reference note 
will change. The Exchange believes that by having the reference notes 
on the same page as the corresponding charge or fee, the Schedule will 
be more user friendly and easier to read.
2. Statutory Basis
    The Exchange believes that the proposal is consistent with the 
provisions of Section 6 of the Act, \9\ in general, and with Section 
6(b)(4) of the Act,\10\ in particular, in that the proposal provides 
for the equitable allocation of reasonable dues, fees, and other 
charges among its OTP Holders \11\ and OTP Firms trading option 
contracts on NYSE Arca.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78f.
    \10\ 15 U.S.C. 78f(b)(4).
    \11\ See NYSE Arca rule 1(q).
---------------------------------------------------------------------------

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 on the proposed rule change were neither solicited 
nor received.

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

    The foregoing proposed rule change is subject to Section 
19(b)(3)(A)(ii) of the Act \12\ and subparagraph (f)(2) of Rule 19b-4 
thereunder \13\ because it establishes or changes a due, fee, or other 
charge applicable only to a member imposed by the self-regulatory 
organization. Accordingly, the proposal is effective upon Commission 
receipt of the 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 interest, for the protection of investors, or 
otherwise in furtherance of the purposes of the Act.\14\
---------------------------------------------------------------------------

    \12\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \13\ 17 CFR 240.19bn-4(f)(2).
    \14\ 15 U.S.C. 78s(b)(3)(C). For purposes of calculating the 60-
day period within which the Commission may summarily abrogate the 
proposal, the Commission considers the period to commence on 
December 15, 2006, the date on which the Exchange submitted 
Amendment No. 1.

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

[[Page 77849]]

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 from (http://www.sec.gov/rules/sro.shtml); or
     Send an e-mail to rule-comments@sec.gov. Please include 
File Number SR-NYSEArca-2006-89 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-NYSEArca-2006-89. 
This file number should be included on the subject line if e-mail is 
used. To help the Commission process and review your comments more 
efficiently, please use only one method. The Commission will post all 
comments on the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml. Copies of the submission, all subsequent amendments, 
all written statements with respect to the proposed rule change that 
are filed with the Commission, and all written communications relating 
to the proposed rule change between the Commission and any person, 
other than those that may be withheld from the public in accordance 
with the provisions of 5 U.S.C. 552, will be available for inspection 
and copying in the Commission's Public Reference Room. Copies of the 
filing also will be available for inspection and copying at the 
principal office of NYSE Arca. 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-NYSEArca-2006-89 and should be submitted on or before 
January 17, 2007.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\15\
---------------------------------------------------------------------------

    \15\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Deputy Secretary.
[FR Doc. 06-9864 Filed 12-26-06; 8:45 am]
BILLING CODE 8011-01-M