Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Institute a Revised System of Payments to Specialist Firms, 57371-57372 [E7-19751]
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Federal Register / Vol. 72, No. 194 / Tuesday, October 9, 2007 / 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. The text of
these statements may be examined at
the places specified in Item IV below.
The Exchange has prepared summaries,
set forth in Sections A, B, and C below,
of the most significant aspects of such
statements.
SECURITIES AND EXCHANGE
COMMISSION
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
information from submissions. You
should submit only information that
you wish to make available publicly. All
submissions should refer to File
Number SR–NYSE–2007–88 and should
be submitted on or before October 30,
2007.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.11
Nancy M. Morris,
Secretary.
[FR Doc. E7–19750 Filed 10–5–07; 8:45 am]
[Release No. 34–56591; File No. SR–NYSE–
2007–89]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Institute a
Revised System of Payments to
Specialist Firms
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.
mstockstill on PROD1PC66 with NOTICES
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
NYSE proposes to amend its system of
variable payments to specialist firms for
liquidity provision (‘‘Liquidity
Provision Payments’’ or ‘‘LPPs’’). For
each of the three months in the threemonth period commencing October 1,
2007, 20% of Exchange transaction fee
revenues will be allocated to the
Liquidity Provision Payment pool. In
January 2008, and each month
thereafter, the percentage allocated will
be 17%. The text of the proposed rule
change is available at NYSE, the
Commission’s Public Reference Room,
and https://www.nyse.com.
11 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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17:07 Oct 05, 2007
Jkt 214001
1. Purpose
On September 1, 2007, the Exchange
instituted a program to provide variable
Liquidity Provision Payments to
specialist firms.3
Liquidity Provision Payments are
based on two revenue sources in NYSElisted securities (excluding exchange
traded funds): (1) The Exchange’s share
of market data revenue derived from
quoting share; and (2) the Exchange’s
transaction fee revenue.
Under the transaction fee revenue
portion of the LPPs, the Exchange
distributes among the specialists each
month a payment pool consisting of the
Exchange’s NYSE-listed stock
transaction revenue on matched volume
(excluding crossing services) in both
electronic and manually executed
transactions. The pool size was initially
set at 25% of the above-noted Exchange
transaction revenue and the Exchange
noted in the Initial LPP Filing that this
percentage may change if the Exchange
adjusts its pricing and/or based on other
conditions such as specialist
performance. The Exchange proposes to
reset at 20% the percentage of Exchange
transaction fee revenue allocated to the
LPP payment pool for each of the three
months in the three-month period
commencing October 1, 2007. In January
2008, and each month thereafter, the
percentage allocated will be 17%.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the objectives of Section 6 of the Act 4
in general and furthers the objectives of
Section 6(b)(4) of the Act 5 in particular,
in that it is designed to provide for the
equitable allocation of reasonable dues,
3 See Securities Exchange Act Release No. 56337
(August 29, 2007), 72 FR 51287 (September 6, 2007)
(SR–NYSE–2007–78) (the ‘‘Initial LPP Filing’’).
4 15 U.S.C. 78f.
5 15 U.S.C. 78f(b)(4).
PO 00000
Frm 00088
Fmt 4703
Sfmt 4703
57371
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 were neither
solicited nor received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing proposed rule change
has become effective upon filing
pursuant to Section 19(b)(3)(A) of the
Act 6 and Rule 19b–4(f)(2) 7 thereunder,
because it establishes or changes a due,
fee, or other charge imposed by the
Exchange.
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.
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–2007–89 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–2007–89. This file
number should be included on the
6 15
7 17
E:\FR\FM\09OCN1.SGM
U.S.C. 78s(b)(3)(A).
CFR 19b–4(f)(2).
09OCN1
57372
Federal Register / Vol. 72, No. 194 / Tuesday, October 9, 2007 / Notices
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 Commissions
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–2007–89 and should
be submitted on or before October 30,
2007.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.8
Nancy M. Morris,
Secretary.
[FR Doc. E7–19751 Filed 10–5–07; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–56595; File No. SR–
NYSEArca–2007–93]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change as Modified by
Amendment No. 2 Thereto Relating to
Exchange Fees and Charges
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 18, 2007, NYSE Arca, Inc.
(‘‘NYSE Arca’’ or ‘‘Exchange’’) filed
with the Securities and Exchange
mstockstill on PROD1PC66 with NOTICES
DATE:
Commission (‘‘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 28, 2007, the
NYSE Arca submitted Amendment No.
1 to the proposed rule change. On
September 28, 2007, NYSE Arca
withdrew Amendment No. 1 and filed
Amendment No. 2. NYSE Arca has
designated this proposal as one
establishing or changing a due, fee, or
other charge imposed by NYSE Arca
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, as amended, from interested
persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
NYSE Arca proposes to amend its
Schedule of Fees and Charges for
Exchange Services (‘‘Rate Schedule’’).
The text of the proposed rule change is
available at the Exchange, the
Commission’s Public Reference Room,
and https://www.nysearca.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 text of these
statements may be examined at the
places specified in Item IV below. NYSE
Arca 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
NYSE Arca states that the purpose of
this filing is to amend the existing NYSE
Arca Rate Schedule by establishing a
pilot program under which the
Exchange will cap, on a monthly basis,
the Firm Facilitation Fee (‘‘Pilot
Program’’). The Exchange also proposes
to apply the Firm Facilitation Fee when
non-OTP Firm 5 accounts, as well as
3 15
U.S.C. 78s(b)(3)(A)(ii).
CFR 240.19b–4(f)(2).
5 A non-OTP Firm is a broker dealer whose
proprietary trades clear as Firm (clearance symbol
8 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
17:07 Oct 05, 2007
4 17
Jkt 214001
PO 00000
Frm 00089
Fmt 4703
Sfmt 4703
OTP Firm accounts, are used to
facilitate customer orders. The Exchange
also proposes adding language to the
Rate Schedule, to clarify that the Firm
Facilitation Fee is applicable to
manually executed orders only.
Although effective upon filing, the
Exchange intends this fee change to
become operative on October 1, 2007.
NYSE Arca presently charges OTP
Holders a Firm Facilitation Fee of $0.15
per contract. The Firm Facilitation Fee
is applicable when a proprietary trading
account of an OTP Firm is used to
facilitate an order for a customer of the
OTP Firm. As part of this filing, the
Exchange is now proposing to apply the
Firm Facilitation Fee to any transaction
in which a firm proprietary account, of
either an OTP Firm or non-OTP Firm, is
used to facilitate an order for a customer
of that same firm.6 Presently, OTP Firms
are charged the Broker Dealer & Firm
Manual rate of $0.26 for facilitation
trades they execute on behalf of nonOTP firms. According to the proposal,
the Exchange will now apply the Firm
Facilitation rate of $0.15 to such trades.
The Exchange proposes to establish a
pilot program, under which OTP Firms
will be eligible for a monthly cap of
$50,000 on Firm Facilitation Fees. The
$50,000 cap will be applicable to each
firm account that is used for facilitating
orders of customers of that same firm.
Examples of how the Firm Facilitation
Fee cap will be applied are shown
below.
Example 1
OTP Firm A carries accounts for customers
of the firm, for which the firm may, on
occasion, facilitate certain option orders.
During a given calendar month, the firm
facilitates a number of orders for their
customers, for which the firm incurs Firm
Facilitation Fees totaling $60,000. Under the
Pilot Program, the fee cap would have been
met, and the Firm would be billed only
$50,000.
Example 2
OTP Firm B carries accounts of public
customers, as well as accounts of non-OTP
Firms, who themselves may wish to facilitate
orders for their own customers. During a
given calendar month, OTP Firm B
represents facilitation orders for a non-OTP
Firm for which it incurs Firm Facilitation
Fees totaling $60,000. During the same
month, OTP Firm B also represents
facilitation orders for another non-OTP Firm
for which they incur Facilitation Fees
totaling $60,000. While OTP Firm B itself has
F) with the Options Clearing Corporation (‘‘OCC’’)
and is not an NYSE Arca OTP holder.
6 In both instances the Firm Facilitation Fee will
be applied to trades that have an OCC clearance
account ‘‘F’’ on the trade side and an OCC clearance
account ‘‘C’’ on the contra side of the transaction.
Both sides of the trade will clear under the same
clearing firm symbol.
E:\FR\FM\09OCN1.SGM
09OCN1
]]>Agencies
[Federal Register Volume 72, Number 194 (Tuesday, October 9, 2007)]
[Notices]
[Pages 57371-57372]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-19751]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-56591; File No. SR-NYSE-2007-89]
Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Institute a Revised System of Payments to Specialist Firms
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.
---------------------------------------------------------------------------
\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
NYSE proposes to amend its system of variable payments to
specialist firms for liquidity provision (``Liquidity Provision
Payments'' or ``LPPs''). For each of the three months in the three-
month period commencing October 1, 2007, 20% of Exchange transaction
fee revenues will be allocated to the Liquidity Provision Payment pool.
In January 2008, and each month thereafter, the percentage allocated
will be 17%. The text of the proposed rule change is available at NYSE,
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. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
Sections A, B, and C below, of the most significant aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
On September 1, 2007, the Exchange instituted a program to provide
variable Liquidity Provision Payments to specialist firms.\3\
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release No. 56337 (August 29,
2007), 72 FR 51287 (September 6, 2007) (SR-NYSE-2007-78) (the
``Initial LPP Filing'').
---------------------------------------------------------------------------
Liquidity Provision Payments are based on two revenue sources in
NYSE-listed securities (excluding exchange traded funds): (1) The
Exchange's share of market data revenue derived from quoting share; and
(2) the Exchange's transaction fee revenue.
Under the transaction fee revenue portion of the LPPs, the Exchange
distributes among the specialists each month a payment pool consisting
of the Exchange's NYSE-listed stock transaction revenue on matched
volume (excluding crossing services) in both electronic and manually
executed transactions. The pool size was initially set at 25% of the
above-noted Exchange transaction revenue and the Exchange noted in the
Initial LPP Filing that this percentage may change if the Exchange
adjusts its pricing and/or based on other conditions such as specialist
performance. The Exchange proposes to reset at 20% the percentage of
Exchange transaction fee revenue allocated to the LPP payment pool for
each of the three months in the three-month period commencing October
1, 2007. In January 2008, and each month thereafter, the percentage
allocated will be 17%.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the objectives of Section 6 of the Act \4\ in general and furthers
the objectives of Section 6(b)(4) of the Act \5\ 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.
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78f.
\5\ 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 were neither solicited nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing proposed rule change has become effective upon filing
pursuant to Section 19(b)(3)(A) of the Act \6\ and Rule 19b-4(f)(2) \7\
thereunder, because it establishes or changes a due, fee, or other
charge imposed by the Exchange.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78s(b)(3)(A).
\7\ 17 CFR 19b-4(f)(2).
---------------------------------------------------------------------------
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.
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-2007-89 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-2007-89. This file
number should be included on the
[[Page 57372]]
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 Commissions 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-2007-89 and should be submitted on or before
October 30, 2007.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\8\
---------------------------------------------------------------------------
\8\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Nancy M. Morris,
Secretary.
[FR Doc. E7-19751 Filed 10-5-07; 8:45 am]
BILLING CODE 8011-01-P
