Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Amend the Linkage Order Fee, 13319-13320 [E7-5117]
Download as PDF
<![CDATA[
Federal Register / Vol. 72, No. 54 / Wednesday, March 21, 2007 / Notices
you wish to make available publicly. All
submissions should refer to File
Number SR–OPRA–2007–02 and should
be submitted on or before April 11,
2007.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.11
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–5087 Filed 3–20–07; 8:45 am]
March 5, 2007, the Linkage Order Fee
for transactions routed to any other
market will be $0.0025 per share. The
Linkage Order Fee will not apply to
transactions where a broker on the
Exchange trading floor placed the
related order.
The text of the proposed rule change
is available on the NYSE’s Web site at
https://www.nyse.com, at NYSE and at
the Commission’s Public Reference
Room.
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–55462; File No. SR–NYSE–
2007–18]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change to Amend the
Linkage Order Fee
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 February
22, 2007, the New York Stock Exchange
LLC (‘‘NYSE’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I, II, and
III below, which Items have been
prepared substantially by NYSE. NYSE
submitted the proposed rule change
under Section 19(b)(3)(A) of the Act 3
and Rule 19b–4(f)(2) thereunder,4 which
renders the proposal effective upon
filing with the Commission.5 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 modify the
fee (the ‘‘Linkage Order Fee’’) it charges
its member organizations in connection
with orders in equities executed in
another market pursuant to the ‘‘Plan for
the Purpose of Creating and Operating
an Intermarket Communications
Linkage’’ (the ‘‘Linkage Plan’’).6 As of
11 17
CFR 200.30–3(a)(29).
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).
5 NYSE stipulated the implementation date to be
March 5, 2007.
6 The Linkage Plan was filed with the
Commission pursuant to Rule 608 of Regulation
NMS under the Act. The purpose of the Linkage
Plan is to enable the Plan Participants to act jointly
in planning, developing, operating and regulating
the NMS Linkage System electronically linking the
jlentini on PROD1PC65 with NOTICES
1 15
VerDate Aug<31>2005
17:08 Mar 20, 2007
Jkt 211001
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
The Exchange’s Linkage Order fee is
currently fixed at $0.000275 per share.
As of March 5, 2007, the Linkage Order
Fee for transactions routed to any other
market will be $0.0025 per share. The
Linkage Order Fee is the only
transaction fee the Exchange charges its
customers on transactions routed to
other markets. These transactions are
not subject to the Exchange’s regular
equity transaction fees. The Linkage
Order Fee will not apply to transactions
where a broker on the Exchange trading
floor placed the related order. Instead, if
routed to another market, such
transactions will be billed at the
Exchange’s regular equity transaction
fee rate. At the time of the Linkage
Order Fee’s adoption,7 the Exchange
stated that the Linkage Order Fee was
intended to permit the Exchange to
recover fees billed to Archipelago
Securities LLC (‘‘Archipelago
Securities’’), as the NYSE’s Sponsoring
Plan Participant Markets to one another, as
described in the Linkage Plan. Following approval
by the Commission, the Plan became operative on
October 1, 2006. The Plan terminates on June 30,
2007; however, participants that wish to extend the
term could agree to do so, subject to Commission
approval. See Securities Exchange Act Release No.
54551 (Sept. 29, 2006), 71 FR 59148 (Oct. 6, 2006)
(approving the Linkage Plan).
7 See Securities Exchange Act Release No. 54727
(November 8, 2006); 71 FR 66820 (November 16,
2006) (SR–NYSE–2006–79).
PO 00000
Frm 00084
Fmt 4703
Sfmt 4703
13319
Member, by other markets for orders
executed pursuant to the Linkage Plan.
The current Linkage Order Fee is set at
the level of the NYSE’s own equity
transaction fee. However, as the
Exchange is charged much higher fees
than the current Linkage Order Fee in
connection with most transactions
routed to other markets, the current
Linkage Order Fee is enabling the
Exchange to recoup only a fraction of its
routing costs.8 The revised Linkage
Order Fee is more closely related to the
actual transaction fees charged to
Archipelago Securities by such other
markets and will enable the Exchange to
recoup most of the transaction fees for
which it is responsible in relation to
transactions it routes to other markets
through the Linkage.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the provisions of Section 6(b) of the
Act,9 in general, and Section 6(b)(4) of
the Act,10 in particular, in that it is
designed to provide for the equitable
allocation of reasonable dues, fees and
other charges among the Exchange’s
members and other persons using its
facilities. The fee is intended to permit
the Exchange to recover fees billed to
Archipelago Securities, as a Sponsoring
Member, by other markets for orders
executed pursuant to the Linkage Plan.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
NYSE 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
NYSE has neither solicited nor
received comments on the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The proposed rule change has become
effective pursuant to Section
19(b)(3)(A)(ii) of the Act 11 and
8 Archipelago Securities is billed by the
destination markets for orders entered on the
Exchange by entering firms but routed to other
markets for execution. The Exchange assumed
responsibility for fees paid by Archipelago
Securities to Participant markets in its capacity as
the Exchange’s Sponsoring Member. See id.
9 15 U.S.C. 78f.
10 15 U.S.C. 78f(b)(4).
11 15 U.S.C. 78s(b)(3)(a)(ii).
E:\FR\FM\21MRN1.SGM
21MRN1
13320
Federal Register / Vol. 72, No. 54 / Wednesday, March 21, 2007 / Notices
information from submissions. You
should submit only information that
you wish to make available publicly. All
submissions should refer to File
Number SR–NYSE–2007–18 and should
be submitted on or before April 11,
2007.
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:
BILLING CODE 8010–01–P
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–NYSE–2007–18 on the
subject line.
jlentini on PROD1PC65 with NOTICES
subparagraph (f)(2) of Rule 19b–4
thereunder,12 because it establishes or
changes a due, fee, or other charge
imposed by the NYSE. 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.
Self-Regulatory Organizations;
American Stock Exchange LLC; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change Relating to
Transaction Charges for Equities,
ETFs, and Nasdaq UTP Securities
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–2007–18. This file
number should be included on the
subject line if e-mail is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for inspection and copying in
the Commission’s Public Reference
Room. Copies of such filing also will be
available for inspection and copying at
the principal offices of NYSE. All
comments received will be posted
without change; the Commission does
not edit personal identifying
12 17
CFR 240.19b–4(f)(2).
VerDate Aug<31>2005
17:08 Mar 20, 2007
Jkt 211001
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.13
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–5117 Filed 3–20–07; 8:45 am]
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–55458; File No. SR–Amex–
2007–23]
March 13, 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 February
22, 2007, the American Stock Exchange
LLC (‘‘Amex’’ 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 the
Exchange. Amex has designated this
proposal as one establishing or changing
a due, fee, or other charge imposed by
a self-regulatory organization pursuant
to Section 19(b)(3)(A)(ii) of the Act 3 and
Rule 19b–4(f)(2) thereunder,4 which
renders the proposal effective upon
filing with the Commission. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to revise the
equities, Exchange Traded Funds and
Trust Issued Receipts (‘‘ETFs’’), and
Nasdaq UTP Fee Schedules
(collectively, the ‘‘Fee Schedule’’) to
modify transaction charges in equities,
ETFs, and Nasdaq UTP securities.
13 13
17 CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(ii).
4 17 CFR 240.19b–4(f)(2).
1 15
PO 00000
Frm 00085
Fmt 4703
Sfmt 4703
The text of the proposed rule change
is available on the Exchange’s Web site
(https://www.amex.com), at the
Exchange’s principal office, and at the
Commission’s Public Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of, and basis for,
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in Sections A, B, and C below, of
the most significant 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 recently adopted new
transaction charges for its members and
member organizations largely relating to
the Exchange’s new hybrid market
trading platform (known as AEMI), the
upcoming implementation of Regulation
NMS, and changes in the competitive
landscape for equities and ETFs.5 These
new transaction charges became
effective January 2, 2007.6 Since the
adoption of the new transaction fees, the
Exchange has been having difficulty
with its billing system’s ability to obtain
the data necessary to calculate an
accurate bill and provide data to the
clearing firms in a timely manner so
they can accurately pass these charges
on to their customers. As a result, the
Exchange in this filing proposes to
revert back to transaction charges for
customers 7 in equities and ETFs in
effect prior to January 2, 2007. In
5 See Securities Exchange Act Release No. 55195
(January 30, 2007) 72 FR 5469 (February 6, 2007)
(Amex File No. 2006–117).
6 This discussion originally stated, at various
points, that the new transaction charges became
effective January 3, 2007; however, the approved
date of effectiveness was actually January 2, 2007.
E-mail communication between Leah Mesfin,
Special Counsel, Division of Market Regulation,
Commission, and Claire P. McGrath, Senior Vice
President and General Counsel, Amex, on March 2,
2007.
7 Customers are defined for purposes of the
Equity and ETF Fee Schedules to include all market
participants except specialists and registered
traders. Therefore, customers (and the fees charged
to them) include members’ off-floor proprietary
accounts, competing market makers and other
member and non-member broker-dealers. The
Nasdaq UTP Fee Schedule defines customers to
include any market participant other than a
‘‘competing market maker.’’
E:\FR\FM\21MRN1.SGM
21MRN1
]]>Agencies
[Federal Register Volume 72, Number 54 (Wednesday, March 21, 2007)]
[Notices]
[Pages 13319-13320]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-5117]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-55462; File No. SR-NYSE-2007-18]
Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change to
Amend the Linkage Order Fee
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 February 22, 2007, the New York Stock Exchange LLC (``NYSE'') filed
with the Securities and Exchange Commission (``Commission'') the
proposed rule change as described in Items I, II, and III below, which
Items have been prepared substantially by NYSE. NYSE submitted the
proposed rule change under Section 19(b)(3)(A) of the Act \3\ and Rule
19b-4(f)(2) thereunder,\4\ which renders the proposal effective upon
filing with the Commission.\5\ The Commission is publishing this notice
to solicit comments on the proposed rule change from interested
persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A).
\4\ 17 CFR 240.19b-4(f)(2).
\5\ NYSE stipulated the implementation date to be March 5, 2007.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to modify the fee (the ``Linkage Order Fee'')
it charges its member organizations in connection with orders in
equities executed in another market pursuant to the ``Plan for the
Purpose of Creating and Operating an Intermarket Communications
Linkage'' (the ``Linkage Plan'').\6\ As of March 5, 2007, the Linkage
Order Fee for transactions routed to any other market will be $0.0025
per share. The Linkage Order Fee will not apply to transactions where a
broker on the Exchange trading floor placed the related order.
---------------------------------------------------------------------------
\6\ The Linkage Plan was filed with the Commission pursuant to
Rule 608 of Regulation NMS under the Act. The purpose of the Linkage
Plan is to enable the Plan Participants to act jointly in planning,
developing, operating and regulating the NMS Linkage System
electronically linking the Plan Participant Markets to one another,
as described in the Linkage Plan. Following approval by the
Commission, the Plan became operative on October 1, 2006. The Plan
terminates on June 30, 2007; however, participants that wish to
extend the term could agree to do so, subject to Commission
approval. See Securities Exchange Act Release No. 54551 (Sept. 29,
2006), 71 FR 59148 (Oct. 6, 2006) (approving the Linkage Plan).
---------------------------------------------------------------------------
The text of the proposed rule change is available on the NYSE's Web
site at https://www.nyse.com, at 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
The Exchange's Linkage Order fee is currently fixed at $0.000275
per share. As of March 5, 2007, the Linkage Order Fee for transactions
routed to any other market will be $0.0025 per share. The Linkage Order
Fee is the only transaction fee the Exchange charges its customers on
transactions routed to other markets. These transactions are not
subject to the Exchange's regular equity transaction fees. The Linkage
Order Fee will not apply to transactions where a broker on the Exchange
trading floor placed the related order. Instead, if routed to another
market, such transactions will be billed at the Exchange's regular
equity transaction fee rate. At the time of the Linkage Order Fee's
adoption,\7\ the Exchange stated that the Linkage Order Fee was
intended to permit the Exchange to recover fees billed to Archipelago
Securities LLC (``Archipelago Securities''), as the NYSE's Sponsoring
Member, by other markets for orders executed pursuant to the Linkage
Plan. The current Linkage Order Fee is set at the level of the NYSE's
own equity transaction fee. However, as the Exchange is charged much
higher fees than the current Linkage Order Fee in connection with most
transactions routed to other markets, the current Linkage Order Fee is
enabling the Exchange to recoup only a fraction of its routing
costs.\8\ The revised Linkage Order Fee is more closely related to the
actual transaction fees charged to Archipelago Securities by such other
markets and will enable the Exchange to recoup most of the transaction
fees for which it is responsible in relation to transactions it routes
to other markets through the Linkage.
---------------------------------------------------------------------------
\7\ See Securities Exchange Act Release No. 54727 (November 8,
2006); 71 FR 66820 (November 16, 2006) (SR-NYSE-2006-79).
\8\ Archipelago Securities is billed by the destination markets
for orders entered on the Exchange by entering firms but routed to
other markets for execution. The Exchange assumed responsibility for
fees paid by Archipelago Securities to Participant markets in its
capacity as the Exchange's Sponsoring Member. See id.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the provisions of Section 6(b) of the Act,\9\ in general, and
Section 6(b)(4) of the Act,\10\ in particular, in that it is designed
to provide for the equitable allocation of reasonable dues, fees and
other charges among the Exchange's members and other persons using its
facilities. The fee is intended to permit the Exchange to recover fees
billed to Archipelago Securities, as a Sponsoring Member, by other
markets for orders executed pursuant to the Linkage Plan.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78f.
\10\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
NYSE 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
NYSE has neither solicited nor received comments on the proposed
rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The proposed rule change has become effective pursuant to Section
19(b)(3)(A)(ii) of the Act \11\ and
[[Page 13320]]
subparagraph (f)(2) of Rule 19b-4 thereunder,\12\ because it
establishes or changes a due, fee, or other charge imposed by the NYSE.
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.
---------------------------------------------------------------------------
\11\ 15 U.S.C. 78s(b)(3)(a)(ii).
\12\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
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-NYSE-2007-18 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-2007-18. This
file number should be included on the subject line if e-mail is used.
To help the Commission process and review your comments more
efficiently, please use only one method. The Commission will post all
comments on the Commission's Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the submission, all subsequent amendments,
all written statements with respect to the proposed rule change that
are filed with the Commission, and all written communications relating
to the proposed rule change between the Commission and any person,
other than those that may be withheld from the public in accordance
with the provisions of 5 U.S.C. 552, will be available for inspection
and copying in the Commission's Public Reference Room. Copies of such
filing also will be available for inspection and copying at the
principal offices of 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-2007-18 and should be submitted on or before April 11, 2007.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\13\
---------------------------------------------------------------------------
\13\ 13 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-5117 Filed 3-20-07; 8:45 am]
BILLING CODE 8010-01-P
