Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to Firm Facilitation, Royalty, and Booth Fees, 35290-35291 [E7-12391]
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35290
Federal Register / Vol. 72, No. 123 / Wednesday, June 27, 2007 / Notices
DC 20549, on official business days
between the hours of 10 a.m. and 3 p.m.
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
Number SR–NYSEArca–2007–54 and
should be submitted on or before July
18, 2007.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
NYSE Arca proposes to amend its
Schedule of Fees and Charges for
Exchange Services (‘‘Schedule’’) by
making a technical change to the Firm
Facilitation fee, eliminating one Royalty
Fee, adding another, and capping the
fees it charges to OTP Firms for booths
on the options trading floor. The text of
the proposed rule change is available at
the Exchange, its Web Site (https://
www.nyse.com/regulation), and the
Commission’s Public Reference Room.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.13
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–12389 Filed 6–26–07; 8:45 am]
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.
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–55906; File No. SR–
NYSEArca–2007–46]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change Relating to Firm
Facilitation, Royalty, and Booth Fees
June 13, 2007.
jlentini on PROD1PC65 with NOTICES
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 May 31,
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 the Exchange.
NYSE Arca 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)(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.
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
VerDate Aug<31>2005
15:50 Jun 26, 2007
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of this filing is to amend
the existing Schedule by: (1) Making a
technical change to the Firm Facilitation
Fee; (2) eliminating one Royalty Fee; (3)
adding one new Royalty Fee; and (4)
establishing a monthly cap on Booth
Fees. A brief description of each
proposed changes is provided below.
Firm Facilitation Fees. The Firm
Facilitation rate applies to transactions
involving a proprietary trading account
of an OTP Firm 5 that has a customer of
that OTP Firm on the contra side of the
transaction. This practice is generally
referred to as ‘‘facilitating’’ an order.
Facilitation Orders on NYSE Arca are
manually traded via open outcry and are
not presently eligible for electronic
execution. Open outcry trades are not
subject to the Post/Take pricing model
that NYSE Arca utilizes for issues that
trade as part of the Penny Pilot.
Accordingly, the Schedule now reads
‘‘N/A’’ for Firm Facilitation fees under
both ‘‘Post’’ and ‘‘Take’’ Liquidity. Once
the Facilitation Orders are fully
automated, the Exchange will file with
5 See NYSE Arca Options Rule 1.1(r) (defining
‘‘OTP Firm’’).
Jkt 211001
PO 00000
Frm 00076
Fmt 4703
Sfmt 4703
the Commission, a proposal for a new
Post/Take rate for this order type.
Royalty Fees. The Exchange proposes
to eliminate Royalty Fees for options
traded on the NASDAQ Fidelity
Composite Index ETF (ONEQ). The
Exchange will no longer collect the
$0.12 per contract fee on any trades in
ONEQ. By eliminating these fees, the
Exchange hopes to attract additional
order flow and encourage more trading
by market participants.
The Exchange plans to commence
trading of options on the KBW Bank
Index (BKX). The Exchange has entered
into a licensing agreement with Keefe,
Bruyette & Woods Inc., the firm that
created and maintains the fund. As a
part of this agreement, NYSE Arca will
pay a fee to Keefe, Bruyette & Woods on
every contract traded on the Exchange.
Effective with this filing, the Exchange
will assess a $0.10 Royalty Fee, on a per
contract basis, for Firm, Broker/Dealer,
and Market Maker transactions in
options on the KBW Bank Index. For
electronic executions in issues included
in the Penny Pilot, Royalty Fees will be
passed through to the trading
participant on the ‘‘Take’’ side of the
transaction.6
Booth Fees. OTP Firms apply for, and
receive permission to use, booths on the
options trading floor. The Exchange
currently charges a $350 per month fee
for each booth that an OTP Firm uses,
without any monthly cap. The Exchange
now proposes capping this fee at $3500
per month. Going forward, firms will
pay a maximum monthly booth fee of
$3500 regardless of how many booths
they are authorized to use.
2. Statutory Basis
The Exchange believes that the
proposal is consistent with Section 6(b)
of the Act,7 in general, and Section
6(b)(4),8 in particular, in that it provides
for the equitable allocation of reasonable
dues, fees, and other charges among its
members.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act.
6 See telephone conversation between Andrew
Stevens, Assistant General Counsel, Amex, and
Christopher Chow, Special Counsel, Commission,
on June 13, 2007.
7 15 U.S.C. 78f(b).
8 15 U.S.C. 78f(b)(4).
E:\FR\FM\27JNN1.SGM
27JNN1
Federal Register / Vol. 72, No. 123 / Wednesday, June 27, 2007 / Notices
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.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing proposed rule change
has been designated as a fee change
pursuant to Section 19(b)(3)(A)(ii) of the
Act 9 and Rule 19b–4(f)(2) 10 thereunder,
because it establishes or changes a due,
fee, or other charge imposed by the
Exchange. Accordingly, the proposal is
effective upon filing with the
Commission. 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 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–2007–46 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–2007–46. 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
9 15
U.S.C. 78s(b)(3)(A)(ii).
CFR 240.19b–4(f)(2).
15:50 Jun 26, 2007
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.11
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–12391 Filed 6–26–07; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–55939; File No. SR–OCC–
2007–06]
Self-Regulatory Organizations; The
Options Clearing Corporation; Notice
of Filing of a Proposed Rule Change
Relating to Credit Default Basket
Options
June 21, 2007.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 notice is hereby given that on
April 20, 2007, The Options Clearing
Corporation (‘‘OCC’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) and on June 16, 2007,
amended the proposed rule change
described in Items I, II, and III below,
which items have been prepared
primarily by OCC. The Commission is
publishing this notice to solicit
comments from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The purposed rule change would
permit OCC to clear and settle credit
default basket options (‘‘CDBOs’’).
11 17
10 17
VerDate Aug<31>2005
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 the Exchange. All
comments received will be posted
without change; the Commission does
not edit personal identifying
information from submissions. You
should submit only information that
you wish to make available publicly. All
submissions should refer to File
Number SR–NYSEArca–2007–46 and
should be submitted on or before July
18, 2007.
1 15
Jkt 211001
PO 00000
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
Frm 00077
Fmt 4703
Sfmt 4703
35291
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
OCC 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. OCC has prepared
summaries, set forth in sections (A), (B),
and (C) below, of the most significant
aspects of these statements.2
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
The purpose of the proposed rule
change is to permit OCC to clear and
settle CDBOs, which are options related
to the creditworthiness of an issuer or
guarantor (‘‘reference entity’’) of one or
more specified debt securities
(‘‘reference obligations’’). CDBOs are
proposed to be traded by the Chicago
Board Options Exchange (‘‘CBOE’’).3
CDBOs are binary options that pay a
fixed amount to the holder of the option
upon the occurrence of a ‘‘credit event’’
affecting the reference obligations.4
Characteristics of CDBOs are described
below, followed by an explanation of
the specific rule changes being proposed
in order that OCC may clear and settle
them.
Description of Credit Default Basket
Options
CDBOs are structured as binary
options with an automatic exercise
feature. They are very similar to Credit
Default Options (‘‘CDOs’’) that were
recently approved for trading by CBOE
and clearing by OCC except that CDBOs
are based upon multiple reference
entities instead of a single reference
entity.5 A CDBO will be automatically
exercised and an exercise settlement
amount will be payable if a ‘‘credit
event’’ occurs with respect to any one of
the reference entities at any time prior
to the last day of trading. As in the case
2 The Commission has modified the text of the
summaries prepared by OCC.
3 Securities Exchange Act Release No. 55938
(June 21, 2007) (notice of filing of proposed rule
change) [File No. SR–CBOE–2007–26].
4 ‘‘Binary’’ options (also sometimes referred to as
‘‘digital’’ options) are ‘‘all-or-nothing’’ options that
pay a fixed amount if automatically exercised and
otherwise pay nothing.
5 Securities Exchange Act Release No. 55871
(June 6, 2007), 72 FR 32372 (June 12, 2007) [File
No. SR–CBOE–2006–84]. See also Securities
Exchange Act Release No. 55872 (June 6, 2007), 72
FR 32693 (June 13, 2007) [File No. SR–OCC–2007–
01].
E:\FR\FM\27JNN1.SGM
27JNN1
]]>Agencies
[Federal Register Volume 72, Number 123 (Wednesday, June 27, 2007)]
[Notices]
[Pages 35290-35291]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-12391]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-55906; File No. SR-NYSEArca-2007-46]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of a Proposed Rule Change Relating to Firm
Facilitation, Royalty, and Booth Fees
June 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 May 31, 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 the Exchange. NYSE Arca 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)(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.
---------------------------------------------------------------------------
\1\ 15 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).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
NYSE Arca proposes to amend its Schedule of Fees and Charges for
Exchange Services (``Schedule'') by making a technical change to the
Firm Facilitation fee, eliminating one Royalty Fee, adding another, and
capping the fees it charges to OTP Firms for booths on the options
trading floor. The text of the proposed rule change is available at the
Exchange, its Web Site (https://www.nyse.com/regulation), and 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 purpose of this filing is to amend the existing Schedule by:
(1) Making a technical change to the Firm Facilitation Fee; (2)
eliminating one Royalty Fee; (3) adding one new Royalty Fee; and (4)
establishing a monthly cap on Booth Fees. A brief description of each
proposed changes is provided below.
Firm Facilitation Fees. The Firm Facilitation rate applies to
transactions involving a proprietary trading account of an OTP Firm \5\
that has a customer of that OTP Firm on the contra side of the
transaction. This practice is generally referred to as ``facilitating''
an order. Facilitation Orders on NYSE Arca are manually traded via open
outcry and are not presently eligible for electronic execution. Open
outcry trades are not subject to the Post/Take pricing model that NYSE
Arca utilizes for issues that trade as part of the Penny Pilot.
Accordingly, the Schedule now reads ``N/A'' for Firm Facilitation fees
under both ``Post'' and ``Take'' Liquidity. Once the Facilitation
Orders are fully automated, the Exchange will file with the Commission,
a proposal for a new Post/Take rate for this order type.
---------------------------------------------------------------------------
\5\ See NYSE Arca Options Rule 1.1(r) (defining ``OTP Firm'').
---------------------------------------------------------------------------
Royalty Fees. The Exchange proposes to eliminate Royalty Fees for
options traded on the NASDAQ Fidelity Composite Index ETF (ONEQ). The
Exchange will no longer collect the $0.12 per contract fee on any
trades in ONEQ. By eliminating these fees, the Exchange hopes to
attract additional order flow and encourage more trading by market
participants.
The Exchange plans to commence trading of options on the KBW Bank
Index (BKX). The Exchange has entered into a licensing agreement with
Keefe, Bruyette & Woods Inc., the firm that created and maintains the
fund. As a part of this agreement, NYSE Arca will pay a fee to Keefe,
Bruyette & Woods on every contract traded on the Exchange. Effective
with this filing, the Exchange will assess a $0.10 Royalty Fee, on a
per contract basis, for Firm, Broker/Dealer, and Market Maker
transactions in options on the KBW Bank Index. For electronic
executions in issues included in the Penny Pilot, Royalty Fees will be
passed through to the trading participant on the ``Take'' side of the
transaction.\6\
---------------------------------------------------------------------------
\6\ See telephone conversation between Andrew Stevens, Assistant
General Counsel, Amex, and Christopher Chow, Special Counsel,
Commission, on June 13, 2007.
---------------------------------------------------------------------------
Booth Fees. OTP Firms apply for, and receive permission to use,
booths on the options trading floor. The Exchange currently charges a
$350 per month fee for each booth that an OTP Firm uses, without any
monthly cap. The Exchange now proposes capping this fee at $3500 per
month. Going forward, firms will pay a maximum monthly booth fee of
$3500 regardless of how many booths they are authorized to use.
2. Statutory Basis
The Exchange believes that the proposal is consistent with Section
6(b) of the Act,\7\ in general, and Section 6(b)(4),\8\ in particular,
in that it provides for the equitable allocation of reasonable dues,
fees, and other charges among its members.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act.
[[Page 35291]]
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.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing proposed rule change has been designated as a fee
change pursuant to Section 19(b)(3)(A)(ii) of the Act \9\ and Rule 19b-
4(f)(2) \10\ thereunder, because it establishes or changes a due, fee,
or other charge imposed by the Exchange. Accordingly, the proposal is
effective upon filing with the Commission. 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 furtherance of the purposes of
the Act.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78s(b)(3)(A)(ii).
\10\ 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-NYSEArca-2007-46 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-2007-46. 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 the Exchange. All comments received will be posted
without change; the Commission does not edit personal identifying
information from submissions. You should submit only information that
you wish to make available publicly. All submissions should refer to
File Number SR-NYSEArca-2007-46 and should be submitted on or before
July 18, 2007.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\11\
---------------------------------------------------------------------------
\11\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-12391 Filed 6-26-07; 8:45 am]
BILLING CODE 8010-01-P
