Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to Temporary Waiver of the Specialist Marketing and Investor Education Fee for Specialists in Certain Listed Investment Company Units, 57368-57369 [E7-19749]

Download as PDF 57368 Federal Register / Vol. 72, No. 194 / Tuesday, October 9, 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. 34–56589; File No. SR–NYSE– 2007–85] Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of All submissions should refer to File a Proposed Rule Change Relating to Number SR–NYSE–2007–92. This file Temporary Waiver of the Specialist number should be included on the subject line if e-mail is used. To help the Marketing and Investor Education Fee for Specialists in Certain Listed Commission process and review your Investment Company Units comments more efficiently, please use only one method. The Commission will October 1, 2007. post all comments on the Commission’s Pursuant to Section 19(b)(1) of the Internet Web site (http://www.sec.gov/ Securities Exchange Act of 1934 rules/sro.shtml). Copies of the (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 submission, all subsequent notice is hereby given that on amendments, all written statements September 25, 2007, the New York Stock Exchange LLC (‘‘NYSE’’ or with respect to the proposed rule ‘‘Exchange’’) filed with the Securities change that are filed with the and Exchange Commission Commission, and all written (‘‘Commission’’) the proposed rule communications relating to the change as described in Items I and II proposed rule change between the Commission and any person, other than below, which Items have been substantially prepared by the Exchange. those that may be withheld from the The Exchange has designated this public in accordance with the proposal as one establishing or changing provisions of 5 U.S.C. 552, will be a due, fee, or other charge imposed by available for inspection and copying in NYSE under Section 19(b)(3)(A)(ii) of the Commission’s Public Reference the Act 3 and Rule 19b–4(f)(2) Room. Copies of the filing also will be thereunder,4 which renders the proposal available for inspection and copying at effective upon filing with the the principal office of the Exchange. All Commission. The Commission is comments received will be posted publishing this notice to solicit without change; the Commission does comments on the proposed rule change not edit personal identifying from interested persons. information from submissions. You I. Self-Regulatory Organization’s should submit only information that you wish to make available publicly. All Statement of the Terms of Substance of the Proposed Rule Change submissions should refer to File The Exchange proposes, for the period Number SR–NYSE–2007–92 and should from August 1, 2007 to December 1, be submitted on or before October 30, 2007, to waive the Specialist Marketing 2007. and Investor Education Fee (‘‘Fee’’) for For the Commission, by the Division of those specialists in listed Investment Market Regulation, pursuant to delegated Company Units (‘‘ICUs’’) otherwise authority.11 subject to such fee that have been Nancy M. Morris, reallocated following the previous Secretary. specialist’s withdrawal from registration [FR Doc. E7–19748 Filed 10–5–07; 8:45 am] as specialist in such ICUs. mstockstill on PROD1PC66 with NOTICES BILLING CODE 8011–01–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, 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 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 15 U.S.C. 78s(b)(3)(A)(ii). 4 17 CFR 240.19b–4(f)(2). places specified in Item IV below. NYSE has substantially 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 currently imposes the Fee on Exchange specialists in ICUs in circumstances where the Exchange undertakes to provide funds to a third party for marketing and investor education in connection with the listing of those ICUs (also known as exchange traded funds).5 The Exchange states that the fee is imposed in a fair and equitable manner on all specialists trading the securities subject to a third party fee or payment. The amount paid by the specialists is calculated and apportioned following each calendar quarter among the specialist units allocated ICUs that are subject to an Exchange payment to third parties. This amount represents fivesixths (83.33%) of the annual amount payable by the Exchange, as apportioned for the quarter. Such amount is apportioned to specialist units for each ICU that is subject to the Fee, calculated based on the ‘‘Notional NYSE ADV’’ for each relevant ICU. Notional NYSE ADV is defined as the average daily share volume on the NYSE for the calendar quarter for the particular ICU multiplied by the average consolidated closing price for the quarter for such ICU. One of the specialist units previously registered in a number of the ICUs subject to the Fee notified the Exchange in July 2007 of its intention to withdraw from registration as specialist from the Exchange in all listed products. As a result, the Exchange was required to reallocate these ICUs to other specialist units within a short time frame following notification by the previous specialist unit. This reallocation was accomplished on August 1, 2007. Under these circumstances, given that the specialist firms, to which the ICUs were reallocated on short notice, were not able to anticipate or budget for the expense, the Exchange considered it necessary, appropriate, and equitable to waive the Fee with respect to such reallocated ICUs for the period August 1, 2007 to December 1, 2007. 1 15 2 17 11 17 CFR 200.30–3(a)(12). VerDate Aug<31>2005 17:07 Oct 05, 2007 Jkt 214001 PO 00000 Frm 00085 Fmt 4703 Sfmt 4703 5 See Securities Exchange Act Release No. 51872 (June 17, 2005), 70 FR 36683 (June 24, 2005) (SR– NYSE–2005–42). E:\FR\FM\09OCN1.SGM 09OCN1 Federal Register / Vol. 72, No. 194 / Tuesday, October 9, 2007 / Notices 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with Section 6(b) of the Act,6 in general, and furthers the objectives of Section 6(b)(4) of the Act,7 in particular, in that it is designed to provide for the equitable allocation of reasonable dues, fees, and other charges among Exchange members, issuers, and other persons using the facilities of the Exchange. B. Self-Regulatory Organization’s Statement on Burden on Competition The Exchange does not believe that the proposed rule change would 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 The foregoing proposed rule change has been designated as a fee change pursuant to Section 19(b)(3)(A)(ii) of the Act 8 and Rule 19b–4(f)(2) 9 thereunder, because it establishes or changes a due, fee, or other charge imposed by the Exchange. Accordingly, the proposal will take effect upon filing with the Commission. 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 the furtherance of the purposes of the Act. mstockstill on PROD1PC66 with NOTICES 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 rulecomments@sec.gov. Please include File U.S.C. 78f(b). U.S.C. 78f(b)(4). 8 15 U.S.C. 78s(b)(3)(A)(ii). 9 17 CFR 240.19b–4(f)(2). Number SR–NYSE–2007–85 on the subject line. SECURITIES AND EXCHANGE COMMISSION Paper Comments [Release No. 34–56590; File No. SR–NYSE– 2007–88] • 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–2007–85. 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–NYSE–2007–85 and should be submitted on or before October 30, 2007. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.10 Nancy M. Morris, Secretary. [FR Doc. E7–19749 Filed 10–5–07; 8:45 am] BILLING CODE 8011–01–P 6 15 Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Modify the Exchange’s Transaction Fees and Certain Trading Floor Fees October 1, 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 September 27, 2007, the New York Stock Exchange LLC (‘‘Exchange’’ or ‘‘NYSE’’) 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. 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 NYSE proposes to amend its equity transaction fees, effective October 1, 2007. Member Organizations will no longer be charged a fee: (i) If they are posting liquidity on the NYSE and the applicable order is executed against an inbound order; (ii) for non-electronic agency transactions of at least 10,000 shares between floor brokers in the crowd; and (iii) for agency cross transactions of at least 10,000 shares. Member Organizations will be charged $.0008 per share when an executed order takes liquidity from the NYSE. Member organizations will be charged $.0004 per share (on both sides of the transaction) on: (i) Odd lot transactions (including the odd lot portion of partial round lots); (ii) at the opening and at the opening only orders; (iii) market at-theclose and limit at-the-close orders; and (iv) non-electronic agency transactions of less than 10,000 shares between floor brokers in the crowd. Equity transaction fees will be capped at $120 per transaction side. The Exchange is also changing its routing fee from $.0025 per share to $.0030 per share. In addition, the routing fee will now apply to transactions where the related order is placed by a broker on the Exchange trading floor. Finally, the Exchange is eliminating its broker booth fees and the $11,000 per license trading floor 7 15 VerDate Aug<31>2005 17:07 Oct 05, 2007 1 15 10 17 Jkt 214001 57369 PO 00000 CFR 200.30–3(a)(12). Frm 00086 Fmt 4703 Sfmt 4703 2 17 E:\FR\FM\09OCN1.SGM U.S.C. 78s(b)(1). CFR 240.19b–4. 09OCN1

Agencies

[Federal Register Volume 72, Number 194 (Tuesday, October 9, 2007)]
[Notices]
[Pages 57368-57369]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-19749]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-56589; File No. SR-NYSE-2007-85]


Self-Regulatory Organizations; New York Stock Exchange LLC; 
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change 
Relating to Temporary Waiver of the Specialist Marketing and Investor 
Education Fee for Specialists in Certain Listed Investment Company 
Units

October 1, 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 September 25, 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 and 
II below, which Items have been substantially prepared by the Exchange. 
The Exchange has designated this proposal as one establishing or 
changing a due, fee, or other charge imposed by NYSE 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.
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    \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).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes, for the period from August 1, 2007 to 
December 1, 2007, to waive the Specialist Marketing and Investor 
Education Fee (``Fee'') for those specialists in listed Investment 
Company Units (``ICUs'') otherwise subject to such fee that have been 
reallocated following the previous specialist's withdrawal from 
registration as specialist in such ICUs.

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. NYSE has substantially 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 currently imposes the Fee on Exchange specialists in 
ICUs in circumstances where the Exchange undertakes to provide funds to 
a third party for marketing and investor education in connection with 
the listing of those ICUs (also known as exchange traded funds).\5\ The 
Exchange states that the fee is imposed in a fair and equitable manner 
on all specialists trading the securities subject to a third party fee 
or payment.
---------------------------------------------------------------------------

    \5\ See Securities Exchange Act Release No. 51872 (June 17, 
2005), 70 FR 36683 (June 24, 2005) (SR-NYSE-2005-42).
---------------------------------------------------------------------------

    The amount paid by the specialists is calculated and apportioned 
following each calendar quarter among the specialist units allocated 
ICUs that are subject to an Exchange payment to third parties. This 
amount represents five-sixths (83.33%) of the annual amount payable by 
the Exchange, as apportioned for the quarter. Such amount is 
apportioned to specialist units for each ICU that is subject to the 
Fee, calculated based on the ``Notional NYSE ADV'' for each relevant 
ICU. Notional NYSE ADV is defined as the average daily share volume on 
the NYSE for the calendar quarter for the particular ICU multiplied by 
the average consolidated closing price for the quarter for such ICU.
    One of the specialist units previously registered in a number of 
the ICUs subject to the Fee notified the Exchange in July 2007 of its 
intention to withdraw from registration as specialist from the Exchange 
in all listed products. As a result, the Exchange was required to 
reallocate these ICUs to other specialist units within a short time 
frame following notification by the previous specialist unit. This 
reallocation was accomplished on August 1, 2007. Under these 
circumstances, given that the specialist firms, to which the ICUs were 
reallocated on short notice, were not able to anticipate or budget for 
the expense, the Exchange considered it necessary, appropriate, and 
equitable to waive the Fee with respect to such reallocated ICUs for 
the period August 1, 2007 to December 1, 2007.

[[Page 57369]]

2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act,\6\ in general, and furthers the 
objectives of Section 6(b)(4) of the Act,\7\ in particular, in that it 
is designed to provide for the equitable allocation of reasonable dues, 
fees, and other charges among Exchange members, issuers, and other 
persons using the facilities of the Exchange.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78f(b).
    \7\ 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 would 
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

    The foregoing proposed rule change has been designated as a fee 
change pursuant to Section 19(b)(3)(A)(ii) of the Act \8\ and Rule 19b-
4(f)(2) \9\ thereunder, because it establishes or changes a due, fee, 
or other charge imposed by the Exchange. Accordingly, the proposal will 
take effect upon filing with the Commission. 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 the furtherance of the 
purposes of the Act.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \9\ 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 (http://
www.sec.gov/rules/sro.shtml); or
     Send an e-mail to rule-comments@sec.gov. Please include 
File Number SR-NYSE-2007-85 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-NYSE-2007-85. 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-NYSE-2007-85 and should be 
submitted on or before October 30, 2007.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\10\
---------------------------------------------------------------------------

    \10\ 17 CFR 200.30-3(a)(12).
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Nancy M. Morris,
Secretary.
[FR Doc. E7-19749 Filed 10-5-07; 8:45 am]
BILLING CODE 8011-01-P