Self-Regulatory Organizations; National Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Modify Fees for Transactions Executed Through NSX BLADE and ITS Plans Priced at Less Than $1.00 Per Share, 15745-15747 [E7-5988]
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<![CDATA[
Federal Register / Vol. 72, No. 62 / Monday, April 2, 2007 / Notices
is no regulatory reason to distinguish
Tape A transactions on NSTS from Tape
A transactions on NSX BLADE, and is
therefore proposing an equivalent rebate
program. As with the Exchange’s other
tape rebate programs, to the extent that
market data revenue from Tape A
transactions is subject to any
adjustment, credits provided under the
Tape A program may be adjusted
accordingly.
The Exchange believes the proposed
rule change is consistent with the
protection of investors and the public
interest because it lowers the cost of
trading and market data to brokerdealers and the investing public, and
because it enhances competition in the
trading of Tape A securities.
2. Statutory Basis
NSX believes that the proposed rule
change is consistent with the provisions
of Section 6(b) of the Act,8 in general,
and with Section 6(b)(4) of the Act,9 in
particular, in that it is designed to
provide for the equitable allocation of
reasonable dues, fees and other charges
by crediting members on a pro rata
basis.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
NSX does not believe that the
proposed rule change will impose any
inappropriate burden on competition.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
The Exchange has neither solicited
nor received written comments on the
proposed rule change.
hsrobinson on PROD1PC76 with NOTICES
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule
change does not:
(i) Significantly affect the protection
of investors or the public interest;
(ii) Impose any significant burden on
competition; and
(iii) Become operative for 30 days
from the date on which it was filed, or
such shorter time as the Commission
may designate, it has become effective
pursuant to Section 19(b)(3)(A) of the
Act 10 and Rule 19b–4(f)(6)
thereunder.11 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
U.S.C. 78f(b).
9 15 U.S.C. 78f(b)(4)
10 15 U.S.C. 78s(b)(3)(A).
11 17 CFR 240.19b–4(f)(6).
18:39 Mar 30, 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:
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–NSX–2007–02 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–NSX–2007–02. 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
12 17
CFR 240.19b–4(f)(6)(iii).
purposes only of waiving the 30-day
operative delay of this proposal, the Commission
has considered the proposed rule’s impact on
efficiency, competition, and capital formation. 15
U.S.C. 78c(f).
13 For
8 15
VerDate Aug<31>2005
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.
The Exchange has asked that the
Commission waive the 30-day operative
delay contained in Rule 19b–4(f)(6)(iii)
under the Act.12 The Commission
believes waiver of the 30-day operative
delay is consistent with the protection
of investors and the public interest,
because the proposed rule change
contains no novel regulatory issues, and
is designed to enhance competition in
the trading of Tape A securities.
Accordingly, the Commission
designates the proposed rule change to
be effective and operative upon filing
with the Commission.13
Jkt 211001
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Frm 00102
Fmt 4703
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15745
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 NSX. 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–NSX–2007–02 and should
be submitted on or before April 23,
2007.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.14
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–5985 Filed 3–30–07; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–55524; File No. SR–NSX–
2007–03]
Self-Regulatory Organizations;
National Stock Exchange, Inc.; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change To Modify
Fees for Transactions Executed
Through NSX BLADE and ITS Plans
Priced at Less Than $1.00 Per Share
March 26, 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 March 2,
2007, the National Stock Exchange, Inc.
(‘‘NSX’’ 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.
NSX 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
from interested persons.
14 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).
4 17 CFR 240.19b–4(f)(2).
1 15
E:\FR\FM\02APN1.SGM
02APN1
15746
Federal Register / Vol. 72, No. 62 / Monday, April 2, 2007 / Notices
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange is proposing changes to
its fees for transactions priced at less
than $1.00 per share that are executed
through NSX BLADE, the Exchange’s
new trading platform. These changes are
being proposed in order to comply with
Rule 610(c) of Regulation NMS under
the Act. The Exchange is also proposing
corresponding changes to its Fee
Schedule applicable to transactions
under the Intermarket Trading System
Plan and/or the Plan for the purpose of
Creating and Operating an Intermarket
Communications Linkage (‘‘ITS Plans’’)
for transactions executed through the
ITS Plans (‘‘ITS Transactions’’). The text
of the proposed rule change is available
at NSX, the Commission’s Public
Reference Room, and https://
www.nsx.com.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
NSX 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. NSX has prepared
summaries, set forth in Sections A, B,
and C below, of the most significant
aspects of such statements.
hsrobinson on PROD1PC76 with NOTICES
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange has created a new state
of the art trading platform, known as
NSX BLADE, which utilizes a strict
price/time priority system as the
ultimate replacement for the Exchange’s
legacy system, National Securities
Trading System (‘‘NSTS’’). Pursuant to
Exchange Rule 16.1(a), the Exchange
maintains a Fee Schedule that contains
its current fees, dues and other charges
applicable to transactions in NSX
BLADE (‘‘NSX BLADE Fee Schedule’’).
Currently, the NSX BLADE Fee
Schedule provides for an execution fee
of $0.0030 per share for removing
liquidity from NSX BLADE (in other
words, a charge for taking liquidity
against an order in NSX BLADE), and a
rebate of $0.0030 per share executed for
adding liquidity into NSX BLADE (in
other words, a rebate for the addition of
liquidity to NSX BLADE, provided that
it results in an execution through NSX
VerDate Aug<31>2005
18:39 Mar 30, 2007
Jkt 211001
BLADE). Thus, ETP Holders taking
liquidity against an order in NSX
BLADE are currently charged a fee of
$0.0030 per share executed, and ETP
Holders providing liquidity into NSX
BLADE are currently paid a rebate of
$0.0030 per share executed.
Rule 610(c)(2) of Regulation NMS 5
generally requires that the fees charged
by a trading center for execution of an
order against a quotation of less than
$1.00 per share cannot exceed or
accumulate to more than 0.3% of the
quotation price per share. In order to
comply with this rule, the Exchange is
proposing a 0.3% per share liquidity
taker fee and a 0.3% per share liquidity
provider rebate for transactions that are
priced at less than $1.00 per share. This
fee and rebate structure would be in lieu
of the $0.0030 per share liquidity taker
fee and the $0.0030 liquidity provider
rebate described above. In other words,
for transactions that are priced at less
than $1.00 per share, ETP Holders
would be charged 0.3% of the price per
share for taking liquidity against an
order in NSX BLADE, and would
receive a rebate of 0.3% of the price per
share for the addition of liquidity to
NSX BLADE, provided that it results in
an execution through NSX BLADE. For
example, if a transaction was executed
on NSX BLADE for 100 shares at $0.50
per share, any liquidity taker fee or
liquidity provider rebate applicable to
the transaction would be equal to $0.15
($.050 × 0.3% × 100).
In addition, changes are being
proposed to the Fee Schedule for ITS
Transactions, to provide for a
corresponding 0.3% per share liquidity
taker fee for ITS Transactions executed
through NSX BLADE that are priced at
less than $1.00 per share. ETP Holders
taking liquidity from NSX BLADE will
be charged under the NSX BLADE Fee
Schedule, and executions on NSX
BLADE through an ITS Plan will be
charged under the Fee Schedule for ITS
Transactions (although the rates of the
two execution fees are identical). The
Exchange bills non-ETP Holders using
the facilities of the Exchange for ITS
Transactions under the Fee Schedule for
ITS Transactions.
In connection with this rule change,
language is also proposed to be added
to the NSX BLADE Fee Schedule stating
that with respect to ITS Transactions
executed through NSX BLADE, the
Exchange will pay the applicable
liquidity provider rebate ($0.0030 per
share or 0.3% per share, depending on
the execution price) only after it
receives payment of the liquidity taker
fee applicable to the execution.
5 17
PO 00000
CFR 242.610(c)(2).
Frm 00103
Fmt 4703
Sfmt 4703
Pursuant to NSX Rule 16.1(c), the
Exchange will ‘‘provide ETP Holders
with notice of all relevant dues, fees,
assessments and charges of the
Exchange.’’ ETP Holders and others,
including self-regulatory organizations
that are the subject of exchange-toexchange billing, using the Exchange
will be advised of these fees through the
Exchange’s website. In addition, ETP
Holders will, simultaneously with this
filing, be notified through the issuance
of a Regulatory Circular of the changes
to the Fee Schedules applicable to
transactions through NSX BLADE and
the ITS Plans.
The fees have been designed in this
manner in order to ensure that the
Exchange can continue to fulfill its
obligations under the Act.
2. Statutory Basis
NSX believes that the proposed rule
change is consistent with the provisions
of Section 6 of the Act,6 in general, and
with Sections 6(b)(4) of the Act,7 in
particular, in that the proposal provides
for the equitable allocation of reasonable
dues, fees, and other charges.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will result in
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
Written comments were neither
solicited nor received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to Section
19(b)(3)(A)(ii) of the Act 8 and
subparagraph (f)(2) of Rule 19b–4
thereunder 9 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
6 15
U.S.C. 78f.
U.S.C. 78f(b)(4).
8 15 U.S.C. 78s(b)(3)(A)(ii).
9 17 CFR 240.19b–4(f)(2).
7 15
E:\FR\FM\02APN1.SGM
02APN1
Federal Register / Vol. 72, No. 62 / Monday, April 2, 2007 / Notices
interest, for the protection of investors,
or otherwise in furtherance of the
purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.10
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–5988 Filed 3–30–07; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
Electronic Comments
[Release No. 34–55528; File No. SR–NYSE–
2007–28]
• 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–NSX–2007–03 on the
subject line.
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing of Proposed Rule Change To
Exempt Limited Partnerships From
Certain of Its Shareholder Approval
Rules
March 26, 2007.
hsrobinson on PROD1PC76 with NOTICES
Paper Comments
Pursuant to Section 19(b)(1) 1 of the
• Send paper comments in triplicate
Securities Exchange Act of 1934 (the
to Nancy M. Morris, Secretary,
‘‘Act’’),2 and Rule 19b–4 thereunder,3
Securities and Exchange Commission,
notice is hereby given that on March 9,
100 F Street, NE., Washington, DC
2007, New York Stock Exchange LLC
20549–1090.
(the ‘‘NYSE’’ or the ‘‘Exchange’’) filed
with the Securities and Exchange
All submissions should refer to File
Commission (‘‘Commission’’) the
Number SR–NSX–2007–03. This file
proposed rule changes as described in
number should be included on the
Items I, II, and III below, which items
subject line if e-mail is used. To help the
have been substantially prepared by the
Commission process and review your
Exchange. The Commission is
comments more efficiently, please use
publishing this notice to solicit
only one method. The Commission will
comments on the proposed rule changes
post all comments on the Commission’s
from interested persons.
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
I. Self-Regulatory Organization’s
submission, all subsequent
Statement of the Terms of Substance of
amendments, all written statements
the Proposed Rule Change
with respect to the proposed rule
The Exchange proposes to amend the
change that are filed with the
Exchange’s Listed Company Manual
Commission, and all written
(the ‘‘Manual’’) to exempt limited
communications relating to the
partnerships from the obligation to
proposed rule change between the
Commission and any person, other than obtain shareholder approval under the
circumstances set forth in Sections
those that may be withheld from the
312.03(b), (c), and (d) for the issuance of
public in accordance with the
common stock and securities
provisions of 5 U.S.C. 552, will be
convertible into or exchangeable for
available for inspection and copying in
common stock.4
the Commission’s Public Reference
The text of the proposed rule change
Room. Copies of the filing also will be
is available on the Exchange’s Web site
available for inspection and copying at
at https://www.nyse.com, the Office of
the principal office of NSX. All
the Secretary, the Exchange and at the
comments received will be posted
Commission’s Public Reference Room.
without change; the Commission does
not edit personal identifying
10 17 CFR 200.30–3(a)(12).
information from submissions. You
1 15 U.S.C. 78s(b)(1).
should submit only information that
2 15 U.S.C. 78a.
you wish to make available publicly. All
3 17 CFR 240.19b–4.
submissions should refer to File
4 NYSE-listed limited partnerships would still be
Number SR–NSX–2007–03 and should
subject to the Exchange’s shareholder approval
requirements for equity compensation plans. See
be submitted on or before April 23,
NYSE Listed Company Manual Sections 303A.08
2007.
and 312.03(a).
VerDate Aug<31>2005
18:39 Mar 30, 2007
Jkt 211001
PO 00000
Frm 00104
Fmt 4703
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15747
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
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 proposes to exempt
limited partnerships from the obligation
to obtain shareholder approval under
the circumstances set forth in Manual
Sections 312.03(b), (c), and (d) for the
issuance of common stock and
securities convertible into or
exchangeable for common stock.5
Subject to certain exceptions specified
therein, Manual Sections 312.03(b), (c),
and (d) require listed issuers to obtain
shareholder approval prior to the
issuance of common stock or securities
convertible into or exchangeable for
common stock in any transaction or
series of related transactions in the
following situations:
• Where the potential dilution exceeds
either one percent of the number of shares of
common stock or one percent of the voting
power outstanding before the issuance to: (a)
a director, officer or substantial security
holder of the company (each a ‘‘Related
Party’’); (b) a subsidiary, affiliate or other
closely-related person of a Related Party; or
(c) any company or entity in which a Related
Party has a substantial direct or indirect
interest.
• If the Related Party involved in a
transaction covered by the preceding bullet is
classified as such solely because such person
is a substantial security holder, and if the
issuance relates to a sale of stock for cash at
a price at least as great as each of the book
and market value of the issuer’s common
stock, then shareholder approval will not be
required unless the number of shares of
common stock to be issued, or unless the
number of shares of common stock into
which the securities may be convertible or
exercisable, exceeds either five percent of the
number of shares of common stock or five
percent of the voting power outstanding
before the issuance.
• If: (a) the common stock has, or will have
upon issuance, voting power equal to or in
5 See
E:\FR\FM\02APN1.SGM
supra note 4.
02APN1
]]>Agencies
[Federal Register Volume 72, Number 62 (Monday, April 2, 2007)]
[Notices]
[Pages 15745-15747]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-5988]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-55524; File No. SR-NSX-2007-03]
Self-Regulatory Organizations; National Stock Exchange, Inc.;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Modify Fees for Transactions Executed Through NSX BLADE and ITS Plans
Priced at Less Than $1.00 Per Share
March 26, 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 March 2, 2007, the National Stock Exchange, Inc. (``NSX'' 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. NSX 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
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).
---------------------------------------------------------------------------
[[Page 15746]]
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange is proposing changes to its fees for transactions
priced at less than $1.00 per share that are executed through NSX
BLADE, the Exchange's new trading platform. These changes are being
proposed in order to comply with Rule 610(c) of Regulation NMS under
the Act. The Exchange is also proposing corresponding changes to its
Fee Schedule applicable to transactions under the Intermarket Trading
System Plan and/or the Plan for the purpose of Creating and Operating
an Intermarket Communications Linkage (``ITS Plans'') for transactions
executed through the ITS Plans (``ITS Transactions''). The text of the
proposed rule change is available at NSX, the Commission's Public
Reference Room, and https://www.nsx.com.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, NSX 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. NSX 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 has created a new state of the art trading platform,
known as NSX BLADE, which utilizes a strict price/time priority system
as the ultimate replacement for the Exchange's legacy system, National
Securities Trading System (``NSTS''). Pursuant to Exchange Rule
16.1(a), the Exchange maintains a Fee Schedule that contains its
current fees, dues and other charges applicable to transactions in NSX
BLADE (``NSX BLADE Fee Schedule'').
Currently, the NSX BLADE Fee Schedule provides for an execution fee
of $0.0030 per share for removing liquidity from NSX BLADE (in other
words, a charge for taking liquidity against an order in NSX BLADE),
and a rebate of $0.0030 per share executed for adding liquidity into
NSX BLADE (in other words, a rebate for the addition of liquidity to
NSX BLADE, provided that it results in an execution through NSX BLADE).
Thus, ETP Holders taking liquidity against an order in NSX BLADE are
currently charged a fee of $0.0030 per share executed, and ETP Holders
providing liquidity into NSX BLADE are currently paid a rebate of
$0.0030 per share executed.
Rule 610(c)(2) of Regulation NMS \5\ generally requires that the
fees charged by a trading center for execution of an order against a
quotation of less than $1.00 per share cannot exceed or accumulate to
more than 0.3% of the quotation price per share. In order to comply
with this rule, the Exchange is proposing a 0.3% per share liquidity
taker fee and a 0.3% per share liquidity provider rebate for
transactions that are priced at less than $1.00 per share. This fee and
rebate structure would be in lieu of the $0.0030 per share liquidity
taker fee and the $0.0030 liquidity provider rebate described above. In
other words, for transactions that are priced at less than $1.00 per
share, ETP Holders would be charged 0.3% of the price per share for
taking liquidity against an order in NSX BLADE, and would receive a
rebate of 0.3% of the price per share for the addition of liquidity to
NSX BLADE, provided that it results in an execution through NSX BLADE.
For example, if a transaction was executed on NSX BLADE for 100 shares
at $0.50 per share, any liquidity taker fee or liquidity provider
rebate applicable to the transaction would be equal to $0.15 ($.050 x
0.3% x 100).
---------------------------------------------------------------------------
\5\ 17 CFR 242.610(c)(2).
---------------------------------------------------------------------------
In addition, changes are being proposed to the Fee Schedule for ITS
Transactions, to provide for a corresponding 0.3% per share liquidity
taker fee for ITS Transactions executed through NSX BLADE that are
priced at less than $1.00 per share. ETP Holders taking liquidity from
NSX BLADE will be charged under the NSX BLADE Fee Schedule, and
executions on NSX BLADE through an ITS Plan will be charged under the
Fee Schedule for ITS Transactions (although the rates of the two
execution fees are identical). The Exchange bills non-ETP Holders using
the facilities of the Exchange for ITS Transactions under the Fee
Schedule for ITS Transactions.
In connection with this rule change, language is also proposed to
be added to the NSX BLADE Fee Schedule stating that with respect to ITS
Transactions executed through NSX BLADE, the Exchange will pay the
applicable liquidity provider rebate ($0.0030 per share or 0.3% per
share, depending on the execution price) only after it receives payment
of the liquidity taker fee applicable to the execution.
Pursuant to NSX Rule 16.1(c), the Exchange will ``provide ETP
Holders with notice of all relevant dues, fees, assessments and charges
of the Exchange.'' ETP Holders and others, including self-regulatory
organizations that are the subject of exchange-to-exchange billing,
using the Exchange will be advised of these fees through the Exchange's
website. In addition, ETP Holders will, simultaneously with this
filing, be notified through the issuance of a Regulatory Circular of
the changes to the Fee Schedules applicable to transactions through NSX
BLADE and the ITS Plans.
The fees have been designed in this manner in order to ensure that
the Exchange can continue to fulfill its obligations under the Act.
2. Statutory Basis
NSX believes that the proposed rule change is consistent with the
provisions of Section 6 of the Act,\6\ in general, and with Sections
6(b)(4) of the Act,\7\ in particular, in that the proposal provides for
the equitable allocation of reasonable dues, fees, and other charges.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78f.
\7\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
result in any burden on competition that is not necessary or
appropriate in furtherance of the purposes of the Act.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants or Others
Written comments were neither solicited nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(ii) of the Act \8\ and subparagraph (f)(2) of Rule 19b-4
thereunder \9\ 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
[[Page 15747]]
interest, for the protection of investors, or otherwise in furtherance
of the purposes of the Act.
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\8\ 15 U.S.C. 78s(b)(3)(A)(ii).
\9\ 17 CFR 240.19b-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-NSX-2007-03 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-NSX-2007-03. 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 the filing
also will be available for inspection and copying at the principal
office of NSX. 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-NSX-
2007-03 and should be submitted on or before April 23, 2007.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\10\
Florence E. Harmon,
Deputy Secretary.
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\10\ 17 CFR 200.30-3(a)(12).
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[FR Doc. E7-5988 Filed 3-30-07; 8:45 am]
BILLING CODE 8010-01-P
