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 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 http://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 (http://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 (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 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 (http://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]


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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.
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    \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.
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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.
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    \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).
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    The text of the proposed rule change is available on the NYSE's Web 
site at http://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.
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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.
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    \9\ 15 U.S.C. 78f.
    \10\ 15 U.S.C. 78f(b)(4).
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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.
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    \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 (http://
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 (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 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\
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    \13\ 13 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E7-5117 Filed 3-20-07; 8:45 am]
BILLING CODE 8010-01-P