Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change and Amendment No. 1 Thereto To Amend the Gross FOCUS Fee, 44206-44208 [E7-15313]
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44206
Federal Register / Vol. 72, No. 151 / Tuesday, August 7, 2007 / Notices
The Exchange proposes to amend
NYSE Rule 2(b) to provide that
membership in FINRA is a condition to
becoming a member organization of
NYSE. NYSE intends to retain for itself
the discretion to deem an applicant
unacceptable for NYSE membership,
and is retaining Rule 308 (Acceptability
Proceedings) for this purpose.
The Exchange recognizes that the
proposed amendments to both the
NYSE’s and NASD’s membership rules
will not be approved as of the date of
the closing of the Transaction and
therefore, as of the closing of the
Transaction, NYSE-only firms may not
yet be approved FINRA members.
Accordingly, the Exchange proposes
that NYSE-only member organizations
be provided a 60-day grace period
within which they must apply for and
be approved for FINRA membership.
This grace period would run from the
later of the date of Commission approval
of either this proposed filing or NASD’s
proposed filing to amend its
membership rules.
2. Statutory Basis
The Exchange states that the statutory
basis for proposed rule change is the
requirement under section 6(b)(5) 10 of
the Act. Section 6(b)(5) requires, among
other things, that the rules of an
exchange be designed to promote just
and equitable principles of trade, to
remove impediments to and perfect the
mechanism of a free and open market
and a national market system and, in
general, to protect investors and the
public interest.
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.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
jlentini on PROD1PC65 with NOTICES
The Exchange has neither solicited
nor received written comments on the
proposed rule change.
Euronext, Inc., a publicly-traded corporation, the
Exchange amended its rules to reflect the separation
of trading privileges at the Exchange from equity
ownership in the Exchange. Securities Exchange
Act Release No. 53382 (February 27, 2006), 71 FR
11251 (March 6, 2006) (File No. SR–NYSE–2005–
77).
10 15 U.S.C. 78f(b)(5).
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15:56 Aug 06, 2007
Jkt 211001
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Within 35 days of the date of
publication of this notice in the Federal
Register or within such longer period (i)
as the Commission may designate up to
90 days of such date if it finds such
longer period to be appropriate and
publishes its reasons for so finding or
(ii) as to which the NYSE consents, the
Commission will:
(A) By order approve such proposed
rule change, or
(B) institute proceedings to determine
whether the proposed rule change
should be disapproved.
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–NYSE–2007–67 on the
subject line.
• 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–2007–67. 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, 100 F Street, NE., Washington,
DC 20549, on official business days
between the hours of 10 a.m. and 3 p.m.
Frm 00131
Fmt 4703
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.11
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–15274 Filed 8–6–07; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–56181; File No. SR–NYSE–
2007–70]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change and
Amendment No. 1 Thereto To Amend
the Gross FOCUS Fee
August 1, 2007.
Paper Comments
PO 00000
Copies of such filing also will be
available for inspection and copying at
the principal office of the 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–2007–67 and should
be submitted on or before August 28,
2007.
Sfmt 4703
Pursuant to section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’), 1 and Rule 19b–4 thereunder,2
notice is hereby given that on July 27,
2007, the New York Stock Exchange
LLC (‘‘NYSE’’ 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 prepared by the NYSE. On
August 1, 2007, NYSE filed Amendment
No. 1 to the proposed rule change.3 The
NYSE has designated this proposal as
one establishing or changing a due, fee,
or other charge imposed by the NYSE
under section 19(b)(3)(A)(ii) of the Act,4
and Rule 19b–4(f)(2) thereunder,5 which
renders the proposal effective upon
filing with the Commission. The
Commission is publishing this notice to
solicit comments on the proposed rule
11 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 Amendment No. 1 deleted a sentence in the
statutory basis section of Exhibit 1 to the proposed
rule change that was mistakenly included in the
proposal and amended the Fee Schedule in Exhibit
5 to reference the file number of this proposal.
4 15 U.S.C. 78s(b)(3)(A)(ii).
5 17 CFR 240.19b–4(f)(2).
1 15
E:\FR\FM\07AUN1.SGM
07AUN1
Federal Register / Vol. 72, No. 151 / Tuesday, August 7, 2007 / Notices
change, as modified by Amendment No.
1, from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to reduce its
gross FOCUS (Financial and
Operational Combined Uniform Single
Report) fee by 75% as of January 1,
2008. In addition, following the closing
of the proposed consolidation of the
member firm regulatory functions of the
National Association of Securities
Dealers, Inc. (‘‘NASD’’) and NYSE
Regulation, Inc. (‘‘NYSE Regulation’’),
the Exchange will transfer 75% of the
gross FOCUS fees paid by member
organizations for the remainder of 2007
to the resultant combined self-regulatory
organization, Financial Industry
Regulatory Authority, Inc. (‘‘FINRA’’).
The text of the proposed rule change
is available on the NYSE’s Web site
(https://www.nyse.com), at the principal
office of the 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, the
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. 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
jlentini on PROD1PC65 with NOTICES
1. Purpose
On November 28, 2006, NYSE
Regulation and NASD announced a plan
to consolidate their member regulation
operations into a combined organization
that will be the sole U.S. private-sector
provider of member firm regulation for
securities firms that conduct business
with the public (the ‘‘Transaction’’). The
objective of the Transaction is to
increase consistency and efficiency of
member firm regulation, including
examination, enforcement, and rule
making, for the benefit of individual
investors and overall market integrity. It
is also an objective of the Transaction to
reduce the regulatory and financial
burdens placed on member firms as a
result of duplicate self-regulatory
structures.
VerDate Aug<31>2005
15:56 Aug 06, 2007
Jkt 211001
The Exchange charges its member
organizations a fee of $0.42 per $1,000
of gross revenues as reported by each
member firm in its FOCUS report,6
subject to minimum annual fees of
$180.00 for member organizations who
do not conduct a public business,
$1,000.00 for introducing firms, and
$2,000.00 for carrying firms and
specialists. These fees are imposed on
all Exchange member organizations
other than those members for whom
another self-regulatory organization is
the designated examining authority
(‘‘DEA’’) under Rule 17d–1 7 of the Act.
The Exchange allocates the FOCUS fees
to NYSE Regulation to fund its
performance of its regulatory activities
with respect to member organizations.
As a substantial proportion of these
regulatory activities will be performed
by FINRA after the Transaction, the
Exchange has agreed with the NASD
that, subject to the closing of the
Transaction, 75% of the gross FOCUS
fees paid to the Exchange during the
remainder of 2007 after the closing of
the Transaction will be remitted to
FINRA. The Exchange believes that this
apportionment of the FOCUS fee
revenues is consistent with the relative
regulatory activities that will be
performed by NYSE Regulation and
FINRA respectively after the
Transaction. NYSE Regulation and the
NASD have agreed upon this
transitional period in which the
Exchange remits FOCUS fee revenue to
FINRA as a matter of administrative
convenience to avoid the need for
substantial adjustment of member firm
billing arrangements mid-year.
Assuming that the Transaction has
closed, commencing January 1, 2008,
the Exchange will reduce its FOCUS
fees, including the minimum fees, by
75%, but will charge these fees to all
members notwithstanding that they will
be members of both the Exchange and
FINRA.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the objectives of section 6 of the Act 8
in general and furthers the objectives of
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 among its
6 FOCUS (Securities Exchange Act Form X–17A–
5) is an acronym for Financial and Operational
Combined Uniform Single Report. The report is
filed periodically with the Commission pursuant to
Rule 17a–5 under the Act.
7 17 CFR 240.17d–1.
8 15 U.S.C. 78f.
9 15 U.S.C. 78f(b)(4).
PO 00000
Frm 00132
Fmt 4703
Sfmt 4703
44207
members and other persons using its
facilities.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange believes that the
proposed rule change does not 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
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)
of the Act 10 and Rule 19b–4(f)(2) 11
thereunder because it changes a fee
imposed by the Exchange. 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.12
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–NYSE–2007–70 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Nancy M. Morris, Secretary,
Securities and Exchange Commission,
10 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(2).
12 The effective date of the original proposed rule
is July 27, 2007. The effective date of Amendment
No. 1 is August 1, 2007. For purposes of calculating
the 60-day period within which the Commission
may summarily abrogate the proposed rule change
under Section 19(b)(3)(C) of the Act, the
Commission considers the period to commence on
August 1, 2007, the date on which the NYSE
submitted Amendment No. 1. See 15 U.S.C.
78s(b)(3)(C).
11 17
E:\FR\FM\07AUN1.SGM
07AUN1
44208
Federal Register / Vol. 72, No. 151 / Tuesday, August 7, 2007 / Notices
100 F Street, NE., Washington, DC
20549–1090.
All submissions should refer to File
Number SR–NYSE–2007–70. 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, 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 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–2007–70 and should
be submitted on or before August 28,
2007.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.13
Nancy M. Morris,
Secretary.
[FR Doc. E7–15313 Filed 8–6–07; 8:45 am]
notice is hereby given that on July 25,
2007, NYSE Arca, Inc. (‘‘NYSE Arca’’ or
‘‘Exchange’’), through its wholly owned
subsidiary, NYSE Arca Equities, Inc.
(‘‘NYSE Arca Equities’’ or
‘‘Corporation’’) 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 the proposed rule
change pursuant to section 19(b)(3)(A)
of the Act 3 and Rule 19b–4(f)(6)
thereunder, which renders it effective
upon filing with the Commission.4 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, through NYSE Arca
Equities, is proposing to amend its Rule
7.31(t) in order to modify the Auction
Only Limit Order. The text of the
proposed rule change is available at the
Exchange, the Commission’s Public
Reference Room, and https://
www.nyse.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, 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 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
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–56180; File No. SR–
NYSEArca–2007–72]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Modify the Auction
Only Limit Order Type
1. Purpose
As part of its continuing efforts to
provide additional flexibility and
increased functionality to its system and
its Users,5 the Exchange proposes to
modify the Auction Only Limit Order
(‘‘Auction Only’’). Currently, this order
type is defined as a limit order that may
be executed only during the Market
Order Auction 6 or the Trading Halt
Auction.7 The Exchange proposes to
jlentini on PROD1PC65 with NOTICES
August 1, 2007.
Pursuant to section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
13 17
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
VerDate Aug<31>2005
15:56 Aug 06, 2007
Jkt 211001
3 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
NYSE Arca Rule 1.1(yy) for the definition
of ‘‘User.’’
6 See NYSE Arca Rule 7.35(c) for a description of
the ‘‘Market Order Auction.’’
7 See NYSE Arca Rule 7.35(f) for a description of
the ‘‘Trading Halt Auction.’’
4 17
5 See
PO 00000
Frm 00133
Fmt 4703
Sfmt 4703
amend and expand Rule 7.31(t) to
include market orders and to make the
order available in all auctions.
According to the proposed rule
change, the Auction Only order will be
executable during the next auction
following entry of the order and that any
unexecuted balance will be cancelled.
Auction Only orders are only available
for auctions on the Exchange and are
not routed to other exchanges.
The Exchange believes that the
implementation of the aforementioned
rule change will enhance order entry
and execution opportunities on NYSE
Arca.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
section 6(b) of the Act 8 in general, and
furthers the objectives of section 6(b)(5)
of the Act 9 in particular, in that it is
designed to prevent fraudulent and
manipulative acts and practices, to
promote just and equitable principles of
trade, to foster cooperation and
coordination with persons engaged in
facilitating transactions in securities,
and to remove impediments to and
perfect the mechanisms of a free and
open market and a national market
system.
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.
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
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) 10 of the Act and Rule 19b–
4(f)(6) thereunder.11 At any time within
60 days of the filing of the proposed rule
8 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
10 15 U.S.C. 78s(b)(3)(A).
11 17 CFR 240.19b–4(f)(6).
9 15
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07AUN1
]]>Agencies
[Federal Register Volume 72, Number 151 (Tuesday, August 7, 2007)]
[Notices]
[Pages 44206-44208]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-15313]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-56181; File No. SR-NYSE-2007-70]
Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
and Amendment No. 1 Thereto To Amend the Gross FOCUS Fee
August 1, 2007.
Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''), \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on July 27, 2007, the New York Stock Exchange LLC (``NYSE'' 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 prepared by the NYSE. On August 1,
2007, NYSE filed Amendment No. 1 to the proposed rule change.\3\ The
NYSE has designated this proposal as one establishing or changing a
due, fee, or other charge imposed by the NYSE under section
19(b)(3)(A)(ii) of the Act,\4\ and Rule 19b-4(f)(2) thereunder,\5\
which renders the proposal effective upon filing with the Commission.
The Commission is publishing this notice to solicit comments on the
proposed rule
[[Page 44207]]
change, as modified by Amendment No. 1, from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ Amendment No. 1 deleted a sentence in the statutory basis
section of Exhibit 1 to the proposed rule change that was mistakenly
included in the proposal and amended the Fee Schedule in Exhibit 5
to reference the file number of this proposal.
\4\ 15 U.S.C. 78s(b)(3)(A)(ii).
\5\ 17 CFR 240.19b-4(f)(2).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to reduce its gross FOCUS (Financial and
Operational Combined Uniform Single Report) fee by 75% as of January 1,
2008. In addition, following the closing of the proposed consolidation
of the member firm regulatory functions of the National Association of
Securities Dealers, Inc. (``NASD'') and NYSE Regulation, Inc. (``NYSE
Regulation''), the Exchange will transfer 75% of the gross FOCUS fees
paid by member organizations for the remainder of 2007 to the resultant
combined self-regulatory organization, Financial Industry Regulatory
Authority, Inc. (``FINRA'').
The text of the proposed rule change is available on the NYSE's Web
site (https://www.nyse.com), at the principal office of the 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, the 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. 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
On November 28, 2006, NYSE Regulation and NASD announced a plan to
consolidate their member regulation operations into a combined
organization that will be the sole U.S. private-sector provider of
member firm regulation for securities firms that conduct business with
the public (the ``Transaction''). The objective of the Transaction is
to increase consistency and efficiency of member firm regulation,
including examination, enforcement, and rule making, for the benefit of
individual investors and overall market integrity. It is also an
objective of the Transaction to reduce the regulatory and financial
burdens placed on member firms as a result of duplicate self-regulatory
structures.
The Exchange charges its member organizations a fee of $0.42 per
$1,000 of gross revenues as reported by each member firm in its FOCUS
report,\6\ subject to minimum annual fees of $180.00 for member
organizations who do not conduct a public business, $1,000.00 for
introducing firms, and $2,000.00 for carrying firms and specialists.
These fees are imposed on all Exchange member organizations other than
those members for whom another self-regulatory organization is the
designated examining authority (``DEA'') under Rule 17d-1 \7\ of the
Act. The Exchange allocates the FOCUS fees to NYSE Regulation to fund
its performance of its regulatory activities with respect to member
organizations.
---------------------------------------------------------------------------
\6\ FOCUS (Securities Exchange Act Form X-17A-5) is an acronym
for Financial and Operational Combined Uniform Single Report. The
report is filed periodically with the Commission pursuant to Rule
17a-5 under the Act.
\7\ 17 CFR 240.17d-1.
---------------------------------------------------------------------------
As a substantial proportion of these regulatory activities will be
performed by FINRA after the Transaction, the Exchange has agreed with
the NASD that, subject to the closing of the Transaction, 75% of the
gross FOCUS fees paid to the Exchange during the remainder of 2007
after the closing of the Transaction will be remitted to FINRA. The
Exchange believes that this apportionment of the FOCUS fee revenues is
consistent with the relative regulatory activities that will be
performed by NYSE Regulation and FINRA respectively after the
Transaction. NYSE Regulation and the NASD have agreed upon this
transitional period in which the Exchange remits FOCUS fee revenue to
FINRA as a matter of administrative convenience to avoid the need for
substantial adjustment of member firm billing arrangements mid-year.
Assuming that the Transaction has closed, commencing January 1, 2008,
the Exchange will reduce its FOCUS fees, including the minimum fees, by
75%, but will charge these fees to all members notwithstanding that
they will be members of both the Exchange and FINRA.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the objectives of section 6 of the Act \8\ in general and furthers
the objectives of 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 among its members and other persons using
its facilities.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78f.
\9\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange believes that the proposed rule change does not 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
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) of the Act \10\ and Rule 19b-4(f)(2) \11\ thereunder
because it changes a fee imposed by the Exchange. 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.\12\
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\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 17 CFR 240.19b-4(f)(2).
\12\ The effective date of the original proposed rule is July
27, 2007. The effective date of Amendment No. 1 is August 1, 2007.
For purposes of calculating the 60-day period within which the
Commission may summarily abrogate the proposed rule change under
Section 19(b)(3)(C) of the Act, the Commission considers the period
to commence on August 1, 2007, the date on which the NYSE submitted
Amendment No. 1. See 15 U.S.C. 78s(b)(3)(C).
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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-NYSE-2007-70 on the subject line.
Paper Comments
Send paper comments in triplicate to Nancy M. Morris,
Secretary, Securities and Exchange Commission,
[[Page 44208]]
100 F Street, NE., Washington, DC 20549-1090.
All submissions should refer to File Number SR-NYSE-2007-70. 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, 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 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-2007-70 and should be
submitted on or before August 28, 2007.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\13\
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\13\ 17 CFR 200.30-3(a)(12).
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Nancy M. Morris,
Secretary.
[FR Doc. E7-15313 Filed 8-6-07; 8:45 am]
BILLING CODE 8010-01-P
