Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change and Amendment No. 1 Thereto To Amend Fees for the Entry of Good Till Cancelled or Good Till Date Orders, 54505-54506 [E7-18819]

Download as PDF Federal Register / Vol. 72, No. 185 / Tuesday, September 25, 2007 / Notices SECURITIES AND EXCHANGE COMMISSION [Release No. 34–56452; File No. SR– NYSEArca–2007–89] Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change and Amendment No. 1 Thereto To Amend Fees for the Entry of Good Till Cancelled or Good Till Date Orders September 18, 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 August 28, 2007, NYSE Arca, Inc. (‘‘NYSE Arca’’ or the ‘‘Exchange’’), through its wholly owned subsidiary NYSE Arca Equities, Inc. (‘‘NYSE Arca Equities’’), filed with the Securities and Exchange Commission (the ‘‘Commission’’) the proposed rule change as described in Items I, II , and III below, which Items have been substantially prepared by the Exchange. On September 18, 2007, NYSE Arca filed Amendment No. 1 to the proposed rule change. The Exchange filed the proposed rule change pursuant to section 19(b)(3)(A) of the Act 3 and Rule 19b–4(f)(2) thereunder,4 which renders it effective upon filing with the Commission. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change yshivers on PROD1PC62 with NOTICES The Exchange proposes to amend the section of its Schedule of Fees and Charges for Exchange Services (the ‘‘Fee Schedule’’) that applies to orders submitted by ETP Holders 5 identified with a time-in-force modifier of either Good Till Cancelled (‘‘GTC’’) or Good Till Date (‘‘GTD’’) 6 (either or both referred to herein as an ‘‘Open Order Modifier(s)’’). The text of the proposed rule change is available on the Exchange’s Web site at http:// www.nyse.com, at the Exchange’s Office of the Secretary and at the Commission’s Public Reference Room. 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 15 U.S.C. 78s(b)(3)(A). 4 17 CFR 240.19b–4(f)(2). 5 See NYSE Arca Equities Rule 1.1(n) for definition of ‘‘ETP Holders.’’ 6 See NYSE Arca Equities Rule 7.31(c)(2). VerDate Aug<31>2005 15:20 Sep 24, 2007 Jkt 211001 II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, NYSE Arca 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 1. Purpose The Exchange proposes to amend relevant sections of its Fee Schedule that apply to orders submitted to the Exchange that are affixed with an Open Order Modifier. This filing intends to clarify the intentions of the Exchange regarding fees and credits applicable to such orders since the introduction of Open Order Modifiers,7 and to conform the Fee Schedule to its billing practice. NYSE Arca Equities did not intend to offer, nor has it offered, the credits normally afforded to orders that provide liquidity within its book. According to the amended Fee Schedule, a limit order affixed with an Open Order Modifier that executes within the same day on which it was entered 8 will be subject to and eligible for all charges and credits currently afforded to limit orders not affixed with an Open Order Modifier. However, such orders, or any unexecuted portion thereof, that remain eligible for execution beyond the initial trading day are not eligible for any credits (e.g., Liquidity Provider Credits) when subsequently executed. The Exchange believes this filing to be consistent with its practices since the inception of the Open Order Modifiers, and with the information available to ETP Holders since their introduction. 2. Statutory Basis The Exchange believes the proposed rule change is consistent with section 6(b) of the Act 9 in general and furthers the objectives of section 6(b)(4) 10 in particular in that it is intended to provide for the equitable allocation of 7 See Securities Exchange Act Release No. 53394 (March 1, 2006), 71 FR 11696 (March 8, 2006) (SR– PCX–2006–07). 8 Limit orders affixed with an Open Order Modifier may be entered during any trading session, but are only eligible for execution during the Core Trading Session (9:30 a.m. Eastern Time to 4:00 p.m. Eastern Time). 9 15 U.S.C. 78f(b). 10 15 U.S.C. 78f(b)(4). PO 00000 Frm 00089 Fmt 4703 Sfmt 4703 54505 reasonable dues, fees, and other charges among its members and other persons using its facilities. 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 Written comments on the proposed rule change were neither solicited nor received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing proposed rule change is subject to section 19(b)(3)(A)(ii) of the Act 11 and subparagraph (f)(2) of Rule 19b–4 thereunder 12 because it establishes or changes a due, fee, or other charge applicable only to a member imposed by a 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 interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act.13 IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic Comments • Use the Commission’s Internet comment form (http://www.sec.gov/ rules/sro.shtml); or • Send an e-mail to rule-comments@sec.gov. Please include File Number SR–NYSEArca–2007–89 on the subject line. 11 15 U.S.C. 78s(b)(3)(A)(ii). CFR 240.19b–4(f)(2). 13 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 September 17, 2007, the date on which the NYSE Arca submitted Amendment No. 1. See 15 U.S.C. 78s(b)(3)(C). 12 17 E:\FR\FM\25SEN1.SGM 25SEN1 54506 Federal Register / Vol. 72, No. 185 / Tuesday, September 25, 2007 / Notices Paper Comments • Send paper comments in triplicate to Nancy M. Morris, Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549–1090. SECURITIES AND EXCHANGE COMMISSION [Release No. 34–56454; File No. SR–Phlx– 2007–43] Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; Notice of Filing and Order Granting All submissions should refer to File Accelerated Approval of a Proposed Number SR–NYSEArca–2007–89. This Rule Change, as Modified by file number should be included on the subject line if e-mail is used. To help the Amendment No. 1 Thereto, Relating to Elimination of Calculation Commission process and review your Methodology From Generic Listing comments more efficiently, please use only one method. The Commission will Standards post all comments on the Commission’s September 18, 2007. Internet Web site (http://www.sec.gov/ Pursuant to section 19(b)(1) of the rules/sro.shtml). Copies of the Securities Exchange Act of 1934 submission, all subsequent (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 amendments, all written statements notice is hereby given that on June 15, with respect to the proposed rule 2007, the Philadelphia Stock Exchange, Inc. (‘‘Phlx’’ or ‘‘Exchange’’) filed with change that are filed with the the Securities and Exchange Commission, and all written Commission (‘‘Commission’’) the communications relating to the proposed rule change as described in proposed rule change between the Commission and any person, other than Items I and II below, which Items have been substantially prepared by Phlx. On those that may be withheld from the September 6, 2007, the Exchange public in accordance with the submitted Amendment No. 1 to the provisions of 5 U.S.C. 552, will be proposed rule change. This order available for inspection and copying in provides notice of the proposed rule the Commission’s Public Reference change, as modified by Amendment No. Room, 100 F Street, NE., Washington, 1, and approves the proposed rule DC 20549, on official business days change as amended on an accelerated between the hours of 10 a.m. and 3 p.m. basis. Copies of such filing also will be I. Self-Regulatory Organization’s available for inspection and copying at Statement of the Terms of Substance of the principal office of NYSE Arca. All the Proposed Rule Change comments received will be posted without change; the Commission does Phlx proposes to amend its existing not edit personal identifying Rule 803 (Criteria for Listing—Tier I) to information from submissions. You eliminate the requirement that indexes should submit only information that underlying certain Trust Shares and you wish to make available publicly. All Index Fund Shares (collectively, ‘‘ETFs’’ or ‘‘Exchange Traded Funds’’) 3 are submissions should refer to File calculated following a specific Number SR–NYSEArca–2007–89 and methodology. should be submitted on or before The text of the proposed rule change October 16, 2007. is available at Phlx, the Commission’s For the Commission, by the Division of Public Reference Room, and http:// Market Regulation, pursuant to delegated www.phlx.com. 14 authority. Florence E. Harmon, Deputy Secretary. [FR Doc. E7–18819 Filed 9–24–07; 8:45 am] yshivers on PROD1PC62 with NOTICES BILLING CODE 8010–01–P II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, Phlx 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. Phlx has prepared 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 See definitions of Trust Shares and Index Fund Shares in Phlx Rules 803(i) and 803(l), respectively. 2 17 14 17 CFR 200.30–3(a)(12). VerDate Aug<31>2005 15:20 Sep 24, 2007 Jkt 211001 PO 00000 Frm 00090 Fmt 4703 Sfmt 4703 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 the proposed rule change is to amend Phlx Rule 803 (Criteria for Listing—Tier I) regarding Phlx’s generic listing standards pursuant to Rule 19b–4(e) under the Act (‘‘Rule 19b–4(e)’’) 4 for ETFs to eliminate the requirement that an underlying index be calculated following one of five specified methodologies. The Exchange currently has generic listing standards which permit the listing and trading of various ETFs subject to the procedures contained in Rule 19b–4(e) (without the need to file a rule change for each security). By amending its generic listing standards, the Exchange intends to reduce the time frame for listing ETFs based on indexes that utilize methodologies not currently identified in the generic listing standards and thereby reduce the burdens on issuers and other market participants. The generic listing standards for ETFs presently provide that their underlying indexes be calculated based on the market capitalization, modified market capitalization, price, equal-dollar, or modified equal-dollar weighting methodology.5 The proposed rule change would eliminate this standard and, as a result, the Exchange would no longer consider index methodology in its review of an ETF’s eligibility for listing and trading pursuant to Rule 19b–4(e). The Exchange notes that, as the market for Trust Shares and Index Fund Shares in particular and exchange traded funds in general has grown and the relevant product lines have matured, there has been an increase in the number of methodologies used to calculate the underlying indexes. To accommodate this development, the Exchange proposes to eliminate any calculation methodology for the underlying index from generic listing standards, as has been done by other exchanges, including the American Stock Exchange LLC (‘‘Amex’’).6 4 17 CFR 240.19b–4(e). Phlx Rule 803(i)(11)(d) and (l)(6)(D) regarding Trust Shares and Index Fund Shares, respectively. 6 See Securities Exchange Act Release No. 55544 (March 27, 2007), 72 FR 15923 (April 3, 2007) (SR– Amex–2007–07) (order approving the elimination from the Amex’s generic listing standards for portfolio depositary receipts of the requirement that 5 See E:\FR\FM\25SEN1.SGM 25SEN1

Agencies

[Federal Register Volume 72, Number 185 (Tuesday, September 25, 2007)]
[Notices]
[Pages 54505-54506]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-18819]



[[Page 54505]]

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-56452; File No. SR-NYSEArca-2007-89]


Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change and Amendment No. 1 
Thereto To Amend Fees for the Entry of Good Till Cancelled or Good Till 
Date Orders

September 18, 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 August 28, 2007, NYSE Arca, Inc. (``NYSE Arca'' or the 
``Exchange''), through its wholly owned subsidiary NYSE Arca Equities, 
Inc. (``NYSE Arca Equities''), filed with the Securities and Exchange 
Commission (the ``Commission'') the proposed rule change as described 
in Items I, II , and III below, which Items have been substantially 
prepared by the Exchange. On September 18, 2007, NYSE Arca filed 
Amendment No. 1 to the proposed rule change. The Exchange filed the 
proposed rule change pursuant to section 19(b)(3)(A) of the Act \3\ and 
Rule 19b-4(f)(2) thereunder,\4\ which renders it 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).
---------------------------------------------------------------------------

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

    The Exchange proposes to amend the section of its Schedule of Fees 
and Charges for Exchange Services (the ``Fee Schedule'') that applies 
to orders submitted by ETP Holders \5\ identified with a time-in-force 
modifier of either Good Till Cancelled (``GTC'') or Good Till Date 
(``GTD'') \6\ (either or both referred to herein as an ``Open Order 
Modifier(s)''). The text of the proposed rule change is available on 
the Exchange's Web site at http://www.nyse.com, at the Exchange's 
Office of the Secretary and at the Commission's Public Reference Room.
---------------------------------------------------------------------------

    \5\ See NYSE Arca Equities Rule 1.1(n) for definition of ``ETP 
Holders.''
    \6\ See NYSE Arca Equities Rule 7.31(c)(2).
---------------------------------------------------------------------------

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 Arca 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

1. Purpose
    The Exchange proposes to amend relevant sections of its Fee 
Schedule that apply to orders submitted to the Exchange that are 
affixed with an Open Order Modifier. This filing intends to clarify the 
intentions of the Exchange regarding fees and credits applicable to 
such orders since the introduction of Open Order Modifiers,\7\ and to 
conform the Fee Schedule to its billing practice.
---------------------------------------------------------------------------

    \7\ See Securities Exchange Act Release No. 53394 (March 1, 
2006), 71 FR 11696 (March 8, 2006) (SR-PCX-2006-07).
---------------------------------------------------------------------------

    NYSE Arca Equities did not intend to offer, nor has it offered, the 
credits normally afforded to orders that provide liquidity within its 
book. According to the amended Fee Schedule, a limit order affixed with 
an Open Order Modifier that executes within the same day on which it 
was entered \8\ will be subject to and eligible for all charges and 
credits currently afforded to limit orders not affixed with an Open 
Order Modifier. However, such orders, or any unexecuted portion 
thereof, that remain eligible for execution beyond the initial trading 
day are not eligible for any credits (e.g., Liquidity Provider Credits) 
when subsequently executed.
---------------------------------------------------------------------------

    \8\ Limit orders affixed with an Open Order Modifier may be 
entered during any trading session, but are only eligible for 
execution during the Core Trading Session (9:30 a.m. Eastern Time to 
4:00 p.m. Eastern Time).
---------------------------------------------------------------------------

    The Exchange believes this filing to be consistent with its 
practices since the inception of the Open Order Modifiers, and with the 
information available to ETP Holders since their introduction.
2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with 
section 6(b) of the Act \9\ in general and furthers the objectives of 
section 6(b)(4) \10\ in particular in that it is intended to provide 
for the equitable allocation of reasonable dues, fees, and other 
charges among its members and other persons using its facilities.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78f(b).
    \10\ 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.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants or Others

    Written comments on the proposed rule change were neither solicited 
nor received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The foregoing proposed rule change is subject to section 
19(b)(3)(A)(ii) of the Act \11\ and subparagraph (f)(2) of Rule 19b-4 
thereunder \12\ because it establishes or changes a due, fee, or other 
charge applicable only to a member imposed by a 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 interest, for the protection of investors, or 
otherwise in furtherance of the purposes of the Act.\13\
---------------------------------------------------------------------------

    \11\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \12\ 17 CFR 240.19b-4(f)(2).
    \13\ 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 September 17, 2007, the date on which the NYSE Arca 
submitted Amendment No. 1. See 15 U.S.C. 78s(b)(3)(C).
---------------------------------------------------------------------------

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://
www.sec.gov/rules/sro.shtml); or
     Send an e-mail to rule-comments@sec.gov. Please include 
File Number SR-NYSEArca-2007-89 on the subject line.

[[Page 54506]]

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-2007-89. 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 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-2007-89 and should 
be submitted on or before October 16, 2007.
---------------------------------------------------------------------------

    \14\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\14\
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-18819 Filed 9-24-07; 8:45 am]
BILLING CODE 8010-01-P