Self-Regulatory Organizations; National Stock Exchange, Inc.; Notice of Filing and Order Granting Accelerated Approval of Proposed Rule Change To Modify a Rule Relating to Market Data Revenue Credits for Transactions Executed Through NSX BLADE, 37809-37811 [E7-13399]

Download as PDF Federal Register / Vol. 72, No. 132 / Wednesday, July 11, 2007 / Notices 37809 available for inspection and copying at the principal office of the NASD. 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–NASD–2007–046 and should be submitted on or before August 1, 2007. clarify that the Exchange will not provide any tape credits for market data revenue generated by quotes. The text of the proposed rule change is available at the NSX, the Commission’s Public Reference Room, and http:// www.nsx.com/RulesFilings.asp. 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.14 Florence E. Harmon, Deputy Secretary. [FR Doc. E7–13398 Filed 7–10–07; 8:45 am] Electronic Comments • Use the Commission’s Internet comment form (http://www.sec.gov/ rules/sro.shtml); or • Send e-mail to rulecomments@sec.gov. Please include File Number SR–NASD–2007–046 on the subject line. jlentini on PROD1PC65 with NOTICES waive the 30-day operative date so that the proposal may take effect upon filing.13 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. SECURITIES AND EXCHANGE COMMISSION 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 III below. The Exchange has prepared summaries, set forth in Sections A, B, and C below, of the most significant aspects of such statements. 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–NASD–2007–046. 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, 100 F Street, NE., Washington, DC 20549, on official business days between the hours of 10 a.m. and 3 p.m. Copies of such filing will also be 13 For purposes only of waiving the operative delay for this proposal, the Commission has considered the proposed rule’s impact on efficiency, competition, and capital formation. 15 U.S.C. 78c(f). VerDate Aug<31>2005 17:56 Jul 10, 2007 Jkt 211001 BILLING CODE 8010–01–P [Release No. 34–56008; File No. SR–NSX– 2007–07] Self-Regulatory Organizations; National Stock Exchange, Inc.; Notice of Filing and Order Granting Accelerated Approval of Proposed Rule Change To Modify a Rule Relating to Market Data Revenue Credits for Transactions Executed Through NSX BLADE July 3, 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 18, 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 and II below, which Items have been substantially prepared by the Exchange. The Exchange filed Amendment No. 1 to the proposed rule change on June 29, 2007. The Commission is publishing this notice to solicit comment on the proposed rule change from interested persons and is approving the proposal as modified by Amendment No. 1 on an accelerated basis. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange is proposing to amend Exchange Rule 16.2(b) to increase its tape credits from 50 percent to 100 percent of market data revenues generated by transactions in Tape A, Tape B, and Tape C securities and to PO 00000 14 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 Frm 00111 Fmt 4703 Sfmt 4703 II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose Exchange Rule 16.2(b) currently provides for a 50 percent transaction credit on revenues generated by transactions in Tape A, Tape B, and Tape C securities, using the Exchange’s NSX BLADE.SM The credit is allocable to ETP Holders on a pro rata basis based upon Tape A, Tape B, and Tape C revenue generated by an ETP Holder’s transactions on the Exchange. The Exchange derives the funds for these credits from payments it receives from the joint industry plans that allocate market data revenues to self-regulatory organizations (‘‘SROs’’). Prior to April 1, 2007, the formula to calculate market data revenue was based solely on the trading activity of an SRO. As of April 1, 2007, the market data formulas under the joint industry plans that allocate market data revenues to SROs were changed by Regulation NMS.3 The joint industry plans’ formula for market data revenue is now a new two-step process: First, distributable plan market data revenues are allocated among individual securities (symbol-by-symbol); and, second, revenues that are allocated to an individual security are allocated among the SROs such that 50% of the revenue is attributable to transactions on an SRO 3 17 CFR 242.600 to 242.612. See also Securities Exchange Act Release No. 53829 (May 18, 2006) 71 FR 30038 (May 24, 2006). E:\FR\FM\11JYN1.SGM 11JYN1 37810 Federal Register / Vol. 72, No. 132 / Wednesday, July 11, 2007 / Notices jlentini on PROD1PC65 with NOTICES and 50% is attributable to certain types of quoting activity on an SRO.4 With the instant proposed rule change, the Exchange is proposing that Exchange Rule 16.2(b) be amended to increase from 50% to 100% the percentage of Tape A, Tape B, and Tape C revenue shared with its ETP Holders that is based on reporting transactions in securities on the Exchange. The Exchange is also proposing to clarify explicitly in Exchange Rule 16.2(b) its present practice of not providing any credit to ETP Holders with respect to market data revenue that is based on their reporting quotes of securities in the Exchange’s system. In addition, simultaneous with the implementation of this proposed rule change, the Exchange intends to harmonize its pro rata calculations of its credits to ETP Holders with the new Market Data formula under Regulation NMS to reflect the symbol-by-symbol and other components of the allocation of the Trading Share portion of the formula. Thus, the Exchange will begin providing credits to ETP Holders for market data revenue for transactions executed through the Exchange based on a pro rata distribution of the market data revenue actually generated by such ETP Holder’s transactions in individual securities, as opposed to a pro rata distribution of that ETP Holder’s total trading activity in a particular tape. The Exchange has determined that this change is necessary for competitive reasons. The increase of the trade market data revenue credits to 100% will allow the Exchange to offer a more competitive program to its current and potential ETP Holders. The Exchange’s retention of market data revenue based upon reporting quotes will be included in the Exchange’s general operating revenues which are used to fund, among other things, the Exchange’s regulatory oversight functions. The Exchange believes that 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, Tape B and Tape C securities. 4 The Allocation Amendment to the CTA, CQ, and the Nasdaq UTP Plans contains the market data formula respecting quotes. In general, Quote Credits can be earned for each second of time (with a minimum of one second) multiplied by the dollar value of size that an automated best bid or offer is submitted to the plan processors that is equal to the NBBO, provided the quote does not lock or cross a previously displayed automated quotation. See Securities Exchange Act Release No. 51808 (June 9, 2005), 70 FR 37496 (June 29, 2005). VerDate Aug<31>2005 17:56 Jul 10, 2007 Jkt 211001 Beginning with the Exchange’s second quarter of 2007, which began April 1st and ends June 30th, the Exchange intends to calculate its quarterly market data credits owed to its ETP Holders in accordance with the proposed rule change. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with the provisions of Section 6(b) of the Act,5 in general, and Section 6(b)(4) of the Act,6 in particular, in that it is designed to provide 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 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. 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, 100 F Street, NE., Washington, 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 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–NSX–2007–07 and should be submitted on or before August 1, 2007. IV. Commission’s Findings and Order Granting Accelerated Approval of III. Solicitation of Comments Proposed Rule Change Interested persons are invited to After careful consideration, the submit written data, views, and Commission finds that the proposed rule change is consistent with the arguments concerning the foregoing, requirements of the Act and the rules including whether the proposed rule and regulations thereunder applicable to change is consistent with the Act. a national securities exchange,7 and, in Comments may be submitted by any of particular, with the requirements of the following methods: Section 6(b) of the Act 8 and the rules Electronic Comments and regulations thereunder. The • Use the Commission’s Internet Commission finds that the Exchange’s comment form (http://www.sec.gov/ proposal to increase its tape credits is rules/sro.shtml); or consistent with Section 6(b)(4) of the • Send an e-mail to ruleAct,9 which requires, among other comments@sec.gov. Please include File things, that exchanges have an equitable No. SR–NSX–2007–07 on the subject allocation of reasonable dues, fees, and line. other charges among their members and issuers and other persons using their Paper Comments facilities. The Commission further notes • Send paper comments in triplicate that the Exchange’s proposal to to Nancy M. Morris, Secretary, harmonize its market data revenue Securities and Exchange Commission, credit program with the new formula 100 F Street, NE., Washington, DC under Regulation NMS is consistent 20549–1090. with the promotion of a national market system. All submissions should refer to File The Commission finds good cause, Number SR–NSX–2007–07. This file pursuant to Section 19(b)(2)(B) of the number should be included on the subject line if e-mail is used. To help the Act,10 for approving the proposed rule change prior to the 30th day after the Commission process and review your date of publication of the notice of the comments more efficiently, please use only one method. The Commission will 7 post all comments on the Commission’s thatIn approving this rule, the Commission notes it has considered its impact on efficiency, Internet Web site (http://www.sec.gov/ competition, and capital formation. 15 U.S.C. 78c(f). PO 00000 8 15 U.S.C. 78f(b). U.S.C. 78f(b)(4). 10 15 U.S.C. 78s(b)(2)(B). 5 15 U.S.C. 78f(b). 6 15 U.S.C. 78f(b)(4). Frm 00112 Fmt 4703 9 15 Sfmt 4703 E:\FR\FM\11JYN1.SGM 11JYN1 Federal Register / Vol. 72, No. 132 / Wednesday, July 11, 2007 / Notices filing thereof in the Federal Register. The Commission believes that granting accelerated approval would facilitate the undelayed increase in the distribution of the market data revenue to ETP Holders and allow the Exchange to offer a more competitive market data revenue credit program. V. Conclusion It is therefore ordered, pursuant to Section 19(b)(2) of the Act 11 that the proposed rule change (SR–NSX–2007– 07), as modified by Amendment No. 1, is hereby approved on an accelerated basis. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.12 Florence E. Harmon, Deputy Secretary. [FR Doc. E7–13399 Filed 7–10–07; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–56015; File No. SR–NYSE– 2007–48] Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing of Proposed Rule Change and Amendment No.1 Thereto Relating to Proposed Amendments to Rule 600 To Provide Guidance Regarding New and Pending Arbitration Claims in Light of the Consolidation of NYSE Regulation Into NASD DR July 5, 2007. On May 23, 2007, pursuant to Section 19(b)(1) 1 of the Securities Exchange Act of 1934 (the ‘‘Act’’) 2 and Rule 19b–4 thereunder,3 the New York Stock Exchange LLC (‘‘NYSE’’ or the ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’) a proposed rule change that was published for comment in the Federal Register on June 4, 2007.4 On June 21, 2007, the NYSE filed Amendment No. 1 to revise the proposed rule change as described in Items I, II, and III below, which Items have been substantially prepared by the NYSE.5 The Commission is publishing this notice to solicit comments on the 11 15 U.S.C. 78s(b)(2). CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). 2 15 U.S.C. 78a. 3 17 CFR 240.19b–4. 4 See Release No. 34–55818 (May 25, 2007), 72 FR 30898 (June 4, 2007). 5 Amendment No. 1 replaced and superseded the original filing in its entirety. jlentini on PROD1PC65 with NOTICES 12 17 VerDate Aug<31>2005 17:56 Jul 10, 2007 Jkt 211001 proposed rule change, as amended, from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change NYSE proposes to amend current Rule 600 and adopt a new Rule 600A. As part of the consolidation of the member firm regulation function of NYSE Regulation, Inc. (‘‘NYSE Regulation’’) with the National Association of Securities Dealers, Inc. (‘‘NASD’’), NYSE Regulation will cease to provide an arbitration program, and its existing arbitration department (‘‘NYSE Arbitration’’) will be consolidated with that of NASD Dispute Resolution, Inc. (‘‘NASD DR’’). The proposed amendments provide that the arbitration rules of the Exchange shall apply only to NYSE arbitration cases pending prior to the date which is the later of the date of approval of this proposed rule change or the date of the consolidation (the ‘‘Effective Date’’), and that, thereafter, disputes between NYSE member organizations, associated persons, and/ or their customers will be arbitrated under the NASD DR Codes of Arbitration Procedure. The text of the proposed rule is set forth below. Proposed new language is italicized. * * * * * Rule 600 Arbitration * * * * * Supplementary Material Rules 600 through 639, and Rule 347, with the exception of Rule 600A, apply only to arbitrations filed prior to [insert later of effective date of the consolidation or approval of this proposed rule change] and are otherwise of no force or effect. Notwithstanding the foregoing, arbitrations filed with NYSE Arca on or prior to January 31, 2007 continue to be governed by the NYSE Arca Rule 12 in effect on or prior to January 31, 2007, and arbitrations filed with NYSE Arca Equities on or prior to January 31, 2007 continue to be governed by the NYSE Arca Equities Rule 12 in effect on or prior to January 31, 2007. On and after [insert date of the consolidation] all such arbitrations filed prior to [insert later of effective date of the consolidation or approval of this proposed rule change] shall, until concluded, be administered by NASD Dispute Resolution, Inc. (‘‘NASD DR’’) pursuant to a Regulatory Services Agreement with the Exchange. * * * * * PO 00000 Frm 00113 Fmt 4703 Sfmt 4703 37811 Rule 600A (a) Duty to Arbitrate. (i) Any dispute, claim or controversy between or among member organizations and/or associated persons shall be arbitrated pursuant to the NASD DR Codes of Arbitration Procedure; and, (ii) any dispute, claim or controversy between a customer or non-member and a member organization and/or associated person arising in connection with the business of such member organization and/or in connection with the activities of an associated person, shall be arbitrated pursuant to NASD DR Codes of Arbitration Procedure as provided by any duly executed and enforceable written agreement, or upon the demand of the customer or non-member. Such obligation to arbitrate shall extend only to those matters that are permitted to be arbitrated under NASD DR Codes of Arbitration Procedure. (b) Referrals. The Exchange may receive, investigate and take disciplinary action with respect to any referral it receives from a NASD DR arbitrator of any matter which comes to the attention of such arbitrator during and in connection with the arbitrator’s participation in a proceeding, either from the record of the proceeding or from material or communications related to the proceeding, that the arbitrator has reason to believe may constitute a violation of the Exchange’s Rules or the federal securities laws. (c) Failure to Arbitrate or to Pay an Arbitration Award. Any member organization or associated person who fails to submit to arbitration a matter required to be arbitrated pursuant to this Rule, or that fails to honor an arbitration award made pursuant to the NASD DR Codes of Arbitration Procedure, or made under the auspices of any other self-regulatory organization, shall be subject to disciplinary proceedings in accordance with Exchange Rule 476. (d) Other Actions. The submission of any matter to arbitration as provided for under this Rule shall in no way limit or preclude any right, action or determination by the Exchange that it would otherwise be authorized to adopt, administer or enforce. * * * * * 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. The text of these statements may be examined at the E:\FR\FM\11JYN1.SGM 11JYN1

Agencies

[Federal Register Volume 72, Number 132 (Wednesday, July 11, 2007)]
[Notices]
[Pages 37809-37811]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-13399]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-56008; File No. SR-NSX-2007-07]


Self-Regulatory Organizations; National Stock Exchange, Inc.; 
Notice of Filing and Order Granting Accelerated Approval of Proposed 
Rule Change To Modify a Rule Relating to Market Data Revenue Credits 
for Transactions Executed Through NSX BLADE

July 3, 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 18, 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 and 
II below, which Items have been substantially prepared by the Exchange. 
The Exchange filed Amendment No. 1 to the proposed rule change on June 
29, 2007. The Commission is publishing this notice to solicit comment 
on the proposed rule change from interested persons and is approving 
the proposal as modified by Amendment No. 1 on an accelerated basis.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange is proposing to amend Exchange Rule 16.2(b) to 
increase its tape credits from 50 percent to 100 percent of market data 
revenues generated by transactions in Tape A, Tape B, and Tape C 
securities and to clarify that the Exchange will not provide any tape 
credits for market data revenue generated by quotes. The text of the 
proposed rule change is available at the NSX, the Commission's Public 
Reference Room, and http://www.nsx.com/RulesFilings.asp.

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 III 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
    Exchange Rule 16.2(b) currently provides for a 50 percent 
transaction credit on revenues generated by transactions in Tape A, 
Tape B, and Tape C securities, using the Exchange's NSX 
BLADE.SM The credit is allocable to ETP Holders on a pro 
rata basis based upon Tape A, Tape B, and Tape C revenue generated by 
an ETP Holder's transactions on the Exchange. The Exchange derives the 
funds for these credits from payments it receives from the joint 
industry plans that allocate market data revenues to self-regulatory 
organizations (``SROs''). Prior to April 1, 2007, the formula to 
calculate market data revenue was based solely on the trading activity 
of an SRO. As of April 1, 2007, the market data formulas under the 
joint industry plans that allocate market data revenues to SROs were 
changed by Regulation NMS.\3\ The joint industry plans' formula for 
market data revenue is now a new two-step process: First, distributable 
plan market data revenues are allocated among individual securities 
(symbol-by-symbol); and, second, revenues that are allocated to an 
individual security are allocated among the SROs such that 50% of the 
revenue is attributable to transactions on an SRO

[[Page 37810]]

and 50% is attributable to certain types of quoting activity on an 
SRO.\4\
---------------------------------------------------------------------------

    \3\ 17 CFR 242.600 to 242.612. See also Securities Exchange Act 
Release No. 53829 (May 18, 2006) 71 FR 30038 (May 24, 2006).
    \4\ The Allocation Amendment to the CTA, CQ, and the Nasdaq UTP 
Plans contains the market data formula respecting quotes. In 
general, Quote Credits can be earned for each second of time (with a 
minimum of one second) multiplied by the dollar value of size that 
an automated best bid or offer is submitted to the plan processors 
that is equal to the NBBO, provided the quote does not lock or cross 
a previously displayed automated quotation. See Securities Exchange 
Act Release No. 51808 (June 9, 2005), 70 FR 37496 (June 29, 2005).
---------------------------------------------------------------------------

    With the instant proposed rule change, the Exchange is proposing 
that Exchange Rule 16.2(b) be amended to increase from 50% to 100% the 
percentage of Tape A, Tape B, and Tape C revenue shared with its ETP 
Holders that is based on reporting transactions in securities on the 
Exchange. The Exchange is also proposing to clarify explicitly in 
Exchange Rule 16.2(b) its present practice of not providing any credit 
to ETP Holders with respect to market data revenue that is based on 
their reporting quotes of securities in the Exchange's system.
    In addition, simultaneous with the implementation of this proposed 
rule change, the Exchange intends to harmonize its pro rata 
calculations of its credits to ETP Holders with the new Market Data 
formula under Regulation NMS to reflect the symbol-by-symbol and other 
components of the allocation of the Trading Share portion of the 
formula. Thus, the Exchange will begin providing credits to ETP Holders 
for market data revenue for transactions executed through the Exchange 
based on a pro rata distribution of the market data revenue actually 
generated by such ETP Holder's transactions in individual securities, 
as opposed to a pro rata distribution of that ETP Holder's total 
trading activity in a particular tape.
    The Exchange has determined that this change is necessary for 
competitive reasons. The increase of the trade market data revenue 
credits to 100% will allow the Exchange to offer a more competitive 
program to its current and potential ETP Holders. The Exchange's 
retention of market data revenue based upon reporting quotes will be 
included in the Exchange's general operating revenues which are used to 
fund, among other things, the Exchange's regulatory oversight 
functions.
    The Exchange believes that 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 broker-dealers and the 
investing public and because it enhances competition in the trading of 
Tape A, Tape B and Tape C securities.
    Beginning with the Exchange's second quarter of 2007, which began 
April 1st and ends June 30th, the Exchange intends to calculate its 
quarterly market data credits owed to its ETP Holders in accordance 
with the proposed rule change.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the provisions of Section 6(b) of the Act,\5\ in general, and 
Section 6(b)(4) of the Act,\6\ in particular, in that it is designed to 
provide for the equitable allocation of reasonable dues, fees, and 
other charges.
---------------------------------------------------------------------------

    \5\ 15 U.S.C. 78f(b).
    \6\ 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 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.

III. 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 No. SR-NSX-2007-07 on the subject line.

Paper Comments

     Send paper comments in triplicate to Nancy M. Morris, 
Secretary, Securities and Exchange Commission, 100 F Street, NE., 
Washington, DC 20549-1090.

All submissions should refer to File Number SR-NSX-2007-07. This file 
number should be included on the subject line if e-mail is used. To 
help the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's Internet Web site (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, 100 F Street, NE., 
Washington, 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 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-NSX-2007-07 and should be 
submitted on or before August 1, 2007.

IV. Commission's Findings and Order Granting Accelerated Approval of 
Proposed Rule Change

    After careful consideration, the Commission finds that the proposed 
rule change is consistent with the requirements of the Act and the 
rules and regulations thereunder applicable to a national securities 
exchange,\7\ and, in particular, with the requirements of Section 6(b) 
of the Act \8\ and the rules and regulations thereunder. The Commission 
finds that the Exchange's proposal to increase its tape credits is 
consistent with Section 6(b)(4) of the Act,\9\ which requires, among 
other things, that exchanges have an equitable allocation of reasonable 
dues, fees, and other charges among their members and issuers and other 
persons using their facilities. The Commission further notes that the 
Exchange's proposal to harmonize its market data revenue credit program 
with the new formula under Regulation NMS is consistent with the 
promotion of a national market system.
---------------------------------------------------------------------------

    \7\ In approving this rule, the Commission notes that it has 
considered its impact on efficiency, competition, and capital 
formation. 15 U.S.C. 78c(f).
    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

    The Commission finds good cause, pursuant to Section 19(b)(2)(B) of 
the Act,\10\ for approving the proposed rule change prior to the 30th 
day after the date of publication of the notice of the

[[Page 37811]]

filing thereof in the Federal Register. The Commission believes that 
granting accelerated approval would facilitate the undelayed increase 
in the distribution of the market data revenue to ETP Holders and allow 
the Exchange to offer a more competitive market data revenue credit 
program.
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78s(b)(2)(B).
---------------------------------------------------------------------------

V. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the Act 
\11\ that the proposed rule change (SR-NSX-2007-07), as modified by 
Amendment No. 1, is hereby approved on an accelerated basis.
---------------------------------------------------------------------------

    \11\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\12\
---------------------------------------------------------------------------

    \12\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-13399 Filed 7-10-07; 8:45 am]
BILLING CODE 8010-01-P