Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change and Amendment No. 2 Thereto Relating to Exchange Fees and Charges, 6306-6308 [E7-2129]
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Federal Register / Vol. 72, No. 27 / Friday, February 9, 2007 / Notices
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule
change does not: (1) Significantly affect
the protection of investors or the public
interest; (2) impose any significant
burden on competition; and (3) become
operative for thirty 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, it has
become effective pursuant to Section
19(b)(3)(A) of the Act 11 and Rule 19b–
4(f)(6) 12 thereunder.13
A proposed rule change filed under
Commission Rule 19b–4(f)(6) 14
normally does not become operative
prior to thirty days after the date of
filing. The CBOE requests that the
Commission waive the 30-day operative
delay, as specified in Rule 19b–
4(f)(6)(iii), and designate the proposed
rule change to become operative
immediately to allow the Exchange to
continue to operate under the existing
allocation parameters for orders
represented in open outcry in Hybrid on
an uninterrupted basis. The
Commission believes that waiving the
30-day operative delay is consistent
with the protection of investors and the
public interest because such waiver will
allow the CBOE to continue to operate
under the Rule without interruption.
For these reasons, the Commission
designates the proposed rule change as
effective and operative upon filing.15
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 the 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.
11 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
13 Pursuant to Rule 19b–4(f)(6)(iii), the Exchange
has given the Commission written notice 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 the date
on which the Exchange filed the proposed rule
change. See 17 CFR 240.19b–4(f)(6)(iii).
14 17 CFR 240.19b–4(f)(6).
15 For the purposes only of waiving the operative
date of this proposal, the Commission has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. 15
U.S.C. 78c(f).
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12 17
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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–CBOE–2007–10 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Nancy M. Morris, Secretary,
Securities and Exchange Commission,
Station Place, 100 F Street, NE.,
Washington, DC 20549–1090.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–55223; File No. SR–
NYSEArca–2007–07]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change and Amendment No. 2
Thereto Relating to Exchange Fees
and Charges
February 1, 2007.
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 January
22, 2007, NYSE Arca, Inc. (‘‘NYSE
Arca’’ or ‘‘Exchange’’) filed with the
All submissions should refer to File
Securities and Exchange Commission
Number SR–CBOE–2007–10. This file
(‘‘Commission’’) the proposed rule
number should be included on the
subject line if e-mail is used. To help the change as described in Items I, II, and
III below, which Items have been
Commission process and review your
substantially prepared by NYSE Arca.
comments more efficiently, please use
only one method. The Commission will On January 29, 2007, the Exchange filed
post all comments on the Commission’s Amendment No. 1 to the proposed rule
change. On January 31, 2007, NYSE
Internet Web site (https://www.sec.gov/
Arca withdrew Amendment No. 1 and
rules/sro.shtml). Copies of the
filed Amendment No. 2 to the proposed
submission, all subsequent
rule change. The Exchange has
amendments, all written statements
designated this proposal as one
with respect to the proposed rule
establishing or changing a due, fee or
change that are filed with the
other charge imposed by the Exchange
Commission, and all written
under Section 19(b)(3)(A) 3 and Rule
communications relating to the
19b–4(f)(2) thereunder,4 which renders
proposed rule change between the
Commission and any person, other than the proposal effective upon filing with
the Commission. The Commission is
those that may be withheld from the
publishing this notice to solicit
public in accordance with the
comments on the proposed rule change,
provisions of 5 U.S.C. 552, will be
as amended, from interested persons.
available for inspection and copying in
the Commission’s Public Reference
I. Self-Regulatory Organization’s
Room. Copies of such filing also will be Statement of the Terms of Substance of
available for inspection and copying at
the Proposed Rule Change
the principal office of the CBOE. All
comments received will be posted
NYSE Arca proposes to amend its
without change; the Commission does
Schedule of Fees and Charges for
not edit personal identifying
Services (‘‘Schedule’’) in order to revise
information from submissions. You
certain Transaction Fees and to
should submit only information that
eliminate Marketing Fees for issues that
you wish to make available publicly. All trade as part of the Penny Pilot Program
submissions should refer to File
(‘‘Pilot’’ or ‘‘Penny Pilot Program’’).5
Number SR–CBOE–2007–10 and should The text of the proposed rule change is
be submitted on or before March 2,
available at https://www.nysearca.com/
2007.
regulation/filings.asp, at the Exchange,
and at the Commission’s Public
For the Commission, by the Division of
Reference Room.
Market Regulation, pursuant to delegated
authority.16
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–2139 Filed 2–8–07; 8:45 am]
BILLING CODE 8010–01–P
16 17
PO 00000
CFR 200.30–3(a)(12).
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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).
5 See Securities Exchange Act Release No. 55156
(January 23, 2007) 72 FR 4759 (February 1, 2007)
(SR–NYSEArca–2006–73).
2 17
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Federal Register / Vol. 72, No. 27 / Friday, February 9, 2007 / 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
proposal. The text of 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 purpose of the proposed rule
change is to revise the existing NYSE
Arca Schedule in conjunction with the
introduction of the Penny Pilot Program.
The Exchange plans to include the
following issues as part of the Penny
Pilot Program. Agilent Technologies:
(A), Advanced Micro Devices (AMD),
Caterpillar (CAT), Flextronics
International (FLEX), General Electric
(GE), Intel (INTC), iShares Russell 2000
Index fund (IWM), Microsoft (MSFT),
Nasdaq-100 Index Tracking Stock
(QQQQ), Semiconductor Holders Trust
(SMH), Sun Microsystems (SUNW),
Texas Instruments (TXN), and Whole
Foods Markets (WFMI). NYSE Arca is
proposing to amend its Schedule in
order to make the following changes to
certain fees and charges that are
assessed to OTP Holders and OTP
Firms 6 in the above listed issues.
Transaction Fees
jlentini on PROD1PC65 with NOTICES
NYSE Arca is proposing to implement
a Post/Take pricing model for
electronically executed transactions in
issues that are part of the Penny Pilot
Program. Under the proposed rate
schedule, all electronic orders that add
or ‘‘post’’ liquidity to the Consolidated
Book (resting orders and resting quotes)
will receive a transaction credit upon
execution. Registered Market Makers 7
will receive a credit of $0.30 per
contract. All other trade participants,
including but not limited to BrokersDealers and OTP Firms representing
both Firm and Public Customer orders,
6 The terms OTP Holders and OTP Firms are
defined in NYSE Arca Rules 1.1(q) and 1.1(r),
respectively. OTP Holders and OTP Firms have the
status of a ‘‘member’’ of NYSE Arca as that term is
defined in Section 3 of the Act.
7 The term Market Maker is defined in NYSE Arca
Rules 6.1(c) and 6.1A(a)(8).
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will receive a credit of $0.25 per
contract.
The Transaction Fee for all trade
participants that ‘‘take’’ liquidity from
the Consolidated Book (incoming
electronic quotes and orders that are
executed upon receipt) will be $0.50 per
contract. This fee will be applied to all
trade participants, including Market
Makers, Broker-Dealers and OTP Firms
executing orders on behalf of Public
Customers.
Electronically entered Contingency
Orders, such as All or None (‘‘AON’’)
and Immediate or Cancel (‘‘IOC’’) are
deemed to be taking liquidity and
therefore will be assessed the $0.50 per
contract fee.
Orders that take place as part of an
Opening Auction are deemed to neither
take nor post liquidity. For this reason,
in issues that trade as part of the Penny
Pilot Program, executions that take
place as part of an Opening Auction will
neither be assessed nor credited the
Transaction Fee.
Linkage Fees
Linkage Orders executed at NYSE
Arca are subject to the same billing
treatment as other Broker Dealer
orders.8 Since Linkage Orders that are
sent to and executed on NYSE Arca will
be taking liquidity, these orders will be
assessed a $0.50 per contract fee. This
fee remains unchanged from the present
fee. Linkage Orders that are not
executed upon receipt are rejected back
to the sender and are never posted in
the Consolidated Book. Therefore, a
Linkage Order would never be eligible
to receive a credit of the Transaction
Fee.
Royalty Fees
For electronic executions in issues
included in the Penny Pilot Program,
where the Exchange pays a Royalty Fee
to a licensed underwriter, the Royalty
Fee will be passed through to the
trading participant on the ‘‘take’’ side of
the transaction. Royalty Fees will not be
assessed on executions occurring during
the Opening Auction in Pilot issues.
Open Outcry executions in Pilot issues
and all executions in non-Pilot issues
will be subject to the current billing
treatment covering Royalty Fees.
The above rates apply only to
electronically executed transactions in
Penny Pilot issues mentioned above,
effective upon the date that they rollout
as part of the Pilot. Initial plans for the
Penny Pilot Program do not include any
issues that have Royalty Fees associated
with them. In the event that the
Exchange was to propose the inclusion
of a Royalty Fee issue in the Penny Pilot
Program, it would do so through a rule
filing with the Commission pursuant to
Rule 19b–4.
Marketing Fees
The Exchange presently assesses
Market Makers 9 a $0.65 per contract
Marketing Fee on all transactions
involving public customer orders. For
orders in the NASDAQ–100 Tracking
Stock (QQQQ), the Exchange charges
Market Makers $0.95 per contract; in the
Standard and Poor’s Depository
Receipts (SPY), the Exchange charges
$1.00 per contract. Market Makers are
assessed Marketing Fees on both public
customer orders and Broker Dealer
orders in the QQQQ and the SPY.
Market Maker to Market Maker orders
are never assessed a Marketing Fee.
As part of the Penny Pilot Program,
NYSE Arca will be quoting and trading
a limited number of issues in one cent
increments. For transactions in issues
which are included as part of the Penny
Pilot Program, the Exchange will no
longer collect a Marketing Fee. All other
aspects of the Marketing Fee will remain
the same.
Rollout of the Pilot
The Penny Pilot Program commenced
on January 26, 2007.10 Initially, as
mentioned above, only a limited
number of issues will be included in the
Pilot. It is anticipated that the rollout of
all issues will be completed over a three
week period. The above rate changes
apply only to transactions in Pilot
issues, effective upon the date that they
rollout as part of the Penny Pilot
Program.
2. Statutory Basis
NYSE Arca believes that the proposed
rule change is consistent with Section
6(b) of the Act,11 in general, and furthers
the objectives of Section 6(b)(4) of the
Act,12 in particular, in that it is designed
to provide for the equitable allocation of
dues, fees and other charges among its
members.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
NYSE Arca 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.
9 See
8 Fees
imposed on Linkage Orders are subject to
an Exchange pilot program and will expire on July
31, 2007.
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6307
supra, note 7.
supra, note 5.
11 15 U.S.C. 78f(b).
12 15 U.S.C. 78f(b)(4).
10 See
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6308
Federal Register / Vol. 72, No. 27 / Friday, February 9, 2007 / Notices
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
No written comments were solicited
or received with respect to the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing 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
thereunder 14 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 such
proposed rule change, the Commission
may summarily abrogate such rule
change if it appears to the Commission
that such action is necessary of
appropriate in the public interest, for
the protection of investors, or otherwise
in the 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:
jlentini on PROD1PC65 with NOTICES
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–NYSEArca–2007–07 on the
subject line.
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 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 No.
SR–NYSEArca–2007–07 and should be
submitted on or before March 2, 2007.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.15
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–2129 Filed 2–8–07; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–55232; File No. SR–
NYSEArca–2007–09]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing of Proposed
Rule Change Relating to Expanding
the Business Activities of Archipelago
Securities, L.L.C.
February 2, 2007.
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 January
Paper Comments
25, 2007, NYSE Arca, Inc. (‘‘NYSE
• Send paper comments in triplicate
Arca’’ or the ‘‘Exchange’’) filed with the
to Nancy M. Morris, Secretary,
Securities and Exchange Commission
Securities and Exchange Commission,
(‘‘Commission’’) the proposed rule
100 F Street, NE, Washington DC
change as described in Items I, II, and
20549–1090.
III below, which Items have been
All submissions should refer to File
substantially prepared by NYSE Arca.
Number SR–NYSEArca–2007–07. This
The Commission is publishing this
file number should be included on the
notice to solicit comments on the
subject line if e-mail is used. To help the proposed rule change from interested
Commission process and review your
persons.
comments more efficiently, please use
only one method. The Commission will I. Self-Regulatory Organization’s
post all comments on the Commission’s Statement of the Terms of Substance of
the Proposed Rule Change
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
NYSE Arca is proposing to expand the
submission, all subsequent
business activities of Archipelago
amendments, all written statements
Securities, L.L.C. (‘‘Archipelago
with respect to the proposed rule
Securities’’), a registered broker-dealer,
change that are filed with the
15 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
13 15
U.S.C. 78s(b)(3)(A).
14 17 CFR 240.19b7–4(f)(2).
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1 15
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a member of several self-regulatory
organizations including the NASD, and
a facility of the Exchange. With this
filing, the Exchange proposes that, in
addition to providing an optional
outbound order routing service for the
Exchange, Archipelago Securities shall
act as a marketing agent on behalf of
NYSE Arca Tech 100 Index (the
‘‘Index’’) and NYSE Arca Tech 100 ETF
(the ‘‘ETF’’) and provide reasonable
services attendant thereto.
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 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
In October 2001, the Commission
approved Wave Securities, L.L.C.
(‘‘Wave’’) to operate as a facility of the
Exchange, as that term is defined in
Section 3(a)(2) of the Act.3 At that time,
the Commission authorized Wave to
perform outbound router services for the
Exchange, as a facility of the Exchange.
Archipelago Securities succeeded Wave
in the second quarter of 2003 and
assumed certain of Wave’s duties,
including the outbound router function.
The Commission subsequently reapproved the outbound router function
as a facility of the Exchange in
connection with the acquisition of the
Pacific Exchange, Inc. by Archipelago
Holdings, Inc., the parent company of
the Exchange.4 Pursuant to the
Archipelago/PCX Acquisition Release,
any expansion of the business activities
of Archipelago Securities must be
approved by the Commission. Most
recently, the Commission approved the
expansion of the business activities of
Archipelago Securities to include, as a
facility of the Exchange, the function of
3 See Securities Exchange Act Release No. 44983
(October 25, 2001), 66 FR 55225 (November 1, 2001)
(SR–PCX–00–25).
4 See Securities Exchange Act Release No. 52497
(September 22, 2005), 70 FR 56949 (September 29,
2005) (SR–PCX–2005–90) (‘‘Archipelago/PCX
Acquisition Release’’).
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]]>Agencies
[Federal Register Volume 72, Number 27 (Friday, February 9, 2007)]
[Notices]
[Pages 6306-6308]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-2129]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-55223; File No. SR-NYSEArca-2007-07]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change and Amendment No. 2
Thereto Relating to Exchange Fees and Charges
February 1, 2007.
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 January 22, 2007, 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 January 29,
2007, the Exchange filed Amendment No. 1 to the proposed rule change.
On January 31, 2007, NYSE Arca withdrew Amendment No. 1 and filed
Amendment No. 2 to the proposed rule change. The Exchange has
designated this proposal as one establishing or changing a due, fee or
other charge imposed by the Exchange under Section 19(b)(3)(A) \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
Services (``Schedule'') in order to revise certain Transaction Fees and
to eliminate Marketing Fees for issues that trade as part of the Penny
Pilot Program (``Pilot'' or ``Penny Pilot Program'').\5\ The text of
the proposed rule change is available at https://www.nysearca.com/
regulation/filings.asp, at the Exchange, and at the Commission's Public
Reference Room.
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 55156 (January 23,
2007) 72 FR 4759 (February 1, 2007) (SR-NYSEArca-2006-73).
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[[Page 6307]]
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 proposal. The text of 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 purpose of the proposed rule change is to revise the existing
NYSE Arca Schedule in conjunction with the introduction of the Penny
Pilot Program. The Exchange plans to include the following issues as
part of the Penny Pilot Program. Agilent Technologies: (A), Advanced
Micro Devices (AMD), Caterpillar (CAT), Flextronics International
(FLEX), General Electric (GE), Intel (INTC), iShares Russell 2000 Index
fund (IWM), Microsoft (MSFT), Nasdaq-100 Index Tracking Stock (QQQQ),
Semiconductor Holders Trust (SMH), Sun Microsystems (SUNW), Texas
Instruments (TXN), and Whole Foods Markets (WFMI). NYSE Arca is
proposing to amend its Schedule in order to make the following changes
to certain fees and charges that are assessed to OTP Holders and OTP
Firms \6\ in the above listed issues.
---------------------------------------------------------------------------
\6\ The terms OTP Holders and OTP Firms are defined in NYSE Arca
Rules 1.1(q) and 1.1(r), respectively. OTP Holders and OTP Firms
have the status of a ``member'' of NYSE Arca as that term is defined
in Section 3 of the Act.
---------------------------------------------------------------------------
Transaction Fees
NYSE Arca is proposing to implement a Post/Take pricing model for
electronically executed transactions in issues that are part of the
Penny Pilot Program. Under the proposed rate schedule, all electronic
orders that add or ``post'' liquidity to the Consolidated Book (resting
orders and resting quotes) will receive a transaction credit upon
execution. Registered Market Makers \7\ will receive a credit of $0.30
per contract. All other trade participants, including but not limited
to Brokers-Dealers and OTP Firms representing both Firm and Public
Customer orders, will receive a credit of $0.25 per contract.
---------------------------------------------------------------------------
\7\ The term Market Maker is defined in NYSE Arca Rules 6.1(c)
and 6.1A(a)(8).
---------------------------------------------------------------------------
The Transaction Fee for all trade participants that ``take''
liquidity from the Consolidated Book (incoming electronic quotes and
orders that are executed upon receipt) will be $0.50 per contract. This
fee will be applied to all trade participants, including Market Makers,
Broker-Dealers and OTP Firms executing orders on behalf of Public
Customers.
Electronically entered Contingency Orders, such as All or None
(``AON'') and Immediate or Cancel (``IOC'') are deemed to be taking
liquidity and therefore will be assessed the $0.50 per contract fee.
Orders that take place as part of an Opening Auction are deemed to
neither take nor post liquidity. For this reason, in issues that trade
as part of the Penny Pilot Program, executions that take place as part
of an Opening Auction will neither be assessed nor credited the
Transaction Fee.
Linkage Fees
Linkage Orders executed at NYSE Arca are subject to the same
billing treatment as other Broker Dealer orders.\8\ Since Linkage
Orders that are sent to and executed on NYSE Arca will be taking
liquidity, these orders will be assessed a $0.50 per contract fee. This
fee remains unchanged from the present fee. Linkage Orders that are not
executed upon receipt are rejected back to the sender and are never
posted in the Consolidated Book. Therefore, a Linkage Order would never
be eligible to receive a credit of the Transaction Fee.
---------------------------------------------------------------------------
\8\ Fees imposed on Linkage Orders are subject to an Exchange
pilot program and will expire on July 31, 2007.
---------------------------------------------------------------------------
Royalty Fees
For electronic executions in issues included in the Penny Pilot
Program, where the Exchange pays a Royalty Fee to a licensed
underwriter, the Royalty Fee will be passed through to the trading
participant on the ``take'' side of the transaction. Royalty Fees will
not be assessed on executions occurring during the Opening Auction in
Pilot issues. Open Outcry executions in Pilot issues and all executions
in non-Pilot issues will be subject to the current billing treatment
covering Royalty Fees.
The above rates apply only to electronically executed transactions
in Penny Pilot issues mentioned above, effective upon the date that
they rollout as part of the Pilot. Initial plans for the Penny Pilot
Program do not include any issues that have Royalty Fees associated
with them. In the event that the Exchange was to propose the inclusion
of a Royalty Fee issue in the Penny Pilot Program, it would do so
through a rule filing with the Commission pursuant to Rule 19b-4.
Marketing Fees
The Exchange presently assesses Market Makers \9\ a $0.65 per
contract Marketing Fee on all transactions involving public customer
orders. For orders in the NASDAQ-100 Tracking Stock (QQQQ), the
Exchange charges Market Makers $0.95 per contract; in the Standard and
Poor's Depository Receipts (SPY), the Exchange charges $1.00 per
contract. Market Makers are assessed Marketing Fees on both public
customer orders and Broker Dealer orders in the QQQQ and the SPY.
Market Maker to Market Maker orders are never assessed a Marketing Fee.
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\9\ See supra, note 7.
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As part of the Penny Pilot Program, NYSE Arca will be quoting and
trading a limited number of issues in one cent increments. For
transactions in issues which are included as part of the Penny Pilot
Program, the Exchange will no longer collect a Marketing Fee. All other
aspects of the Marketing Fee will remain the same.
Rollout of the Pilot
The Penny Pilot Program commenced on January 26, 2007.\10\
Initially, as mentioned above, only a limited number of issues will be
included in the Pilot. It is anticipated that the rollout of all issues
will be completed over a three week period. The above rate changes
apply only to transactions in Pilot issues, effective upon the date
that they rollout as part of the Penny Pilot Program.
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\10\ See supra, note 5.
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2. Statutory Basis
NYSE Arca believes that the proposed rule change is consistent with
Section 6(b) of the Act,\11\ in general, and furthers the objectives of
Section 6(b)(4) of the Act,\12\ in particular, in that it is designed
to provide for the equitable allocation of dues, fees and other charges
among its members.
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\11\ 15 U.S.C. 78f(b).
\12\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition
NYSE Arca 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.
[[Page 6308]]
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants or Others
No written comments were solicited or received with respect to the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing 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
thereunder \14\ 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 such proposed rule change, the Commission may summarily
abrogate such rule change if it appears to the Commission that such
action is necessary of appropriate in the public interest, for the
protection of investors, or otherwise in the furtherance of the
purposes of the Act.
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\13\ 15 U.S.C. 78s(b)(3)(A).
\14\ 17 CFR 240.19b7-4(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 Number SR-NYSEArca-2007-07 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-2007-07. This
file number should be included on the subject line if e-mail is used.
To help the Commission process and review your comments more
efficiently, please use only one method. The Commission will post all
comments on the Commission's Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the submission, all subsequent amendments,
all written statements with respect to the proposed rule change that
are filed with the Commission, and all written communications relating
to the proposed rule change between the Commission and any person,
other than those that may be withheld from the public in accordance
with the provisions of 5 U.S.C. 552, will be available for inspection
and copying in the Commission's Public Reference Room. Copies of such
filing also will be available for inspection and copying at the
principal 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 No. SR-NYSEArca-2007-07 and should be submitted on or before March
2, 2007.
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).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-2129 Filed 2-8-07; 8:45 am]
BILLING CODE 8010-01-P
