Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Implement Transaction Fees for NYSE MatchPoint, 6539-6540 [E8-1878]

Download as PDF Federal Register / Vol. 73, No. 23 / Monday, February 4, 2008 / Notices 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 FINRA. 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–FINRA–2007–042 and should be submitted on or before February 25, 2008. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.10 Florence E. Harmon, Deputy Secretary. [FR Doc. E8–1960 Filed 2–1–08; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–57216; File No. SR–NYSE– 2008–06] 22, 2008, for shares executed on the new NYSE MatchPointSM (‘‘NYSE MatchPoint’’ or ‘‘MatchPoint’’) 5 system. The Exchange will charge each Member Organization $.0015 per share executed on the MatchPoint system, with the exception of MatchPoint executions that are effectuated through an optional ‘‘internal match’’ process. The text of the proposed rule change is available at the Exchange, the Commission’s Public Reference Room, and http:// 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 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. Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Implement Transaction Fees for NYSE MatchPoint A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change January 28, 2008. The Exchange proposes to implement an equity transaction fee for executions on the NYSE MatchPoint system to take effect with the scheduled launch of MatchPoint on January 22, 2008. The MatchPoint system is an electronic facility of the Exchange that matches aggregated orders at predetermined, one-minute sessions throughout regular hours and after hours of the Exchange. The proposed transactional fee of $.0015 per executed share, for single and portfolio orders, will be charged to both the buyer(s) and seller(s) of the executed shares, with the exception of MatchPoint executions that are effectuated through an optional ‘‘internal match’’ process.6 More specifically, when the same user enters ebenthall on PRODPC61 with NOTICES 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 January 22, 2008, 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. 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,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. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change NYSE proposes to implement an equity transaction fee effective January 10 17 CFR 200.30–3(a)(12). 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). 1 15 VerDate Aug<31>2005 15:15 Feb 01, 2008 Jkt 214001 1. Purpose 5 See Securities Exchange Act Release No. 57058 (December 28, 2007), 73 FR 903 (January 4, 2008) (SR–NYSE–2007–102). 6 See NYSE Rule 1500 (NYSE MatchPointSM), subparagraph (b)(2)(D): ‘‘’NYSE MatchPoint Internal Match Constraint’ or ’internal match constraint’ shall mean an optional order constraint that limits the execution of portfolios and single orders by directing the portfolio and single orders to first trade with other portfolios or single orders of the same User before trading with other orders in a particular matching session. If, after an internal match occurs and residual orders remain, the residual orders will be available to trade with all other orders. These constraints are only active for a single matching session.’’ PO 00000 Frm 00087 Fmt 4703 Sfmt 4703 6539 different orders into MatchPoint for internal matching purposes under the same mnemonic and for the same matching session, any resulting executions will not be subject to this transaction fee.7 Only NYSE members, member organizations and sponsoring member organizations will be charged this transaction fee. Transaction fees for executions of orders entered by sponsored participants (who are nonmembers) will be charged to the sponsoring member organization. The following examples will demonstrate how the proposed MatchPoint transactional fee will be charged: Example 1: User A enters a buy order into MatchPoint for 1,000 shares of XYZ security and designates the order for the 11 a.m. matching session. User B enters a sell order into MatchPoint for 1,000 shares of XYZ security and designates the order for the 11 a.m. matching session. During the 11 a.m. matching session, User A’s buy order for 1,000 shares of XYZ security and User B’s sell order for 1,000 shares of XYZ security match and execute. User A is charged $.0015 per executed share (1,000 shares × $.0015 = $1.50). User B is also charged $.0015 per executed share (1,000 shares × $.0015 = $1.50). Example 2: User A enters a portfolio order into MatchPoint for a customer to buy 1,000 shares of XYZ security with an internal match constraint under the mnemonic ‘‘Q’’ for the 2 p.m. matching session. User A then enters another portfolio order into MatchPoint for a second customer to sell 1,000 shares of XYZ security with an internal match constraint under the same mnemonic (‘‘Q’’) for the 2 p.m. matching session. During the 2 p.m. matching session, the above described portfolio orders entered by User A internally match and execute. Thus, User A’s customers both receive executions of 1,000 shares of XYZ security, but no transaction fee is charged to A for these internally matched executions. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with the provisions of section 6 8 of the Act 9 in general, and section 6(b)(4) of the Act 10 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. Specifically, the proposed transaction fee is reasonable 7 Because orders are entered by a ‘‘mnemonic’’ (i.e., member identifier and/or account identifier) and because mnemonics are categorized as either ‘‘agency’’ or ‘‘proprietary,’’ agency and proprietary orders cannot be entered under the same mnemonic. Thus, agency and proprietary orders cannot match and execute against each other in an internal match. 8 15 U.S.C. 78f. 9 15 U.S.C. 78a. 10 15 U.S.C. 78f(b)(4). E:\FR\FM\04FEN1.SGM 04FEN1 6540 Federal Register / Vol. 73, No. 23 / Monday, February 4, 2008 / Notices in light of the costs incurred by the Exchange for the operation of the MatchPoint system. Additionally, the transaction fee is equitable as the fee is applied to all users of the MatchPoint system equally. B. Self-Regulatory Organization’s Statement on Burden on Competition NYSE does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purpose 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 11 and Rule 19b–4(f)(2) 12 thereunder because it establishes a due, fee, or other charge applicable to a member imposed by NYSE. 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. 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: ebenthall on PRODPC61 with NOTICES 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 Number SR–NYSE–2008–06 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–2008–06. 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 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–2008–06 and should be submitted on or before February 25, 2008. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.13 Nancy M. Morris, Secretary. [FR Doc. E8–1878 Filed 2–1–08; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–57213; File No. SR– NYSE–2008–07] Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to the Extension of Crossing Sessions III and IV Pilots January 28, 2008. 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 January 22, 2008, the New York Stock Exchange CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 U.S.C. 78s(b)(3)(A). 12 17 CFR 240.19b–4(f)(2). VerDate Aug<31>2005 15:15 Feb 01, 2008 Jkt 214001 I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The NYSE proposes to extend until February 1, 2009 the following pilot programs: Crossing Session III, for the execution of guaranteed price coupled orders by member organizations to fill the balance of customer orders at a price that was guaranteed to a customer prior to the close of the Exchange’s 9:30 a.m. to 4 p.m. trading session; and Crossing Session IV, whereby an unfilled balance of an order may be filled at a price such that the entire order is filled at no worse price than the Volume Weighted Average Price (‘‘VWAP’’) for the subject security. The text of the proposed rule change is available on the NYSE’s Web site (http://www.nyse.com), at the NYSE’s Office of Secretary, 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 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 In SR–NYSE–2002–40,5 the Commission approved the establishment of two new crossing sessions (Crossing Sessions III and IV) in the Exchange’s Off-Hours Trading 3 15 U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(6). 5 See Securities Exchange Act Release No. 48857 (December 1, 2003), 68 FR 68440 (December 8, 2003) (SR–NYSE–2002–40). 4 17 13 17 11 15 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 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. PO 00000 Frm 00088 Fmt 4703 Sfmt 4703 E:\FR\FM\04FEN1.SGM 04FEN1

Agencies

[Federal Register Volume 73, Number 23 (Monday, February 4, 2008)]
[Notices]
[Pages 6539-6540]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-1878]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-57216; File No. SR-NYSE-2008-06]


Self-Regulatory Organizations; New York Stock Exchange LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Implement Transaction Fees for NYSE MatchPoint

January 28, 2008.
    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 January 22, 2008, 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. 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,\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.
---------------------------------------------------------------------------

    \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

    NYSE proposes to implement an equity transaction fee effective 
January 22, 2008, for shares executed on the new NYSE 
MatchPointSM (``NYSE MatchPoint'' or ``MatchPoint'') \5\ 
system. The Exchange will charge each Member Organization $.0015 per 
share executed on the MatchPoint system, with the exception of 
MatchPoint executions that are effectuated through an optional 
``internal match'' process. The text of the proposed rule change is 
available at the Exchange, the Commission's Public Reference Room, and 
http://www.nyse.com.
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    \5\ See Securities Exchange Act Release No. 57058 (December 28, 
2007), 73 FR 903 (January 4, 2008) (SR-NYSE-2007-102).
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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

    The Exchange proposes to implement an equity transaction fee for 
executions on the NYSE MatchPoint system to take effect with the 
scheduled launch of MatchPoint on January 22, 2008. The MatchPoint 
system is an electronic facility of the Exchange that matches 
aggregated orders at predetermined, one-minute sessions throughout 
regular hours and after hours of the Exchange. The proposed 
transactional fee of $.0015 per executed share, for single and 
portfolio orders, will be charged to both the buyer(s) and seller(s) of 
the executed shares, with the exception of MatchPoint executions that 
are effectuated through an optional ``internal match'' process.\6\ More 
specifically, when the same user enters different orders into 
MatchPoint for internal matching purposes under the same mnemonic and 
for the same matching session, any resulting executions will not be 
subject to this transaction fee.\7\ Only NYSE members, member 
organizations and sponsoring member organizations will be charged this 
transaction fee. Transaction fees for executions of orders entered by 
sponsored participants (who are non-members) will be charged to the 
sponsoring member organization.
---------------------------------------------------------------------------

    \6\ See NYSE Rule 1500 (NYSE MatchPoint\SM\), subparagraph 
(b)(2)(D): ``'NYSE MatchPoint Internal Match Constraint' or 
'internal match constraint' shall mean an optional order constraint 
that limits the execution of portfolios and single orders by 
directing the portfolio and single orders to first trade with other 
portfolios or single orders of the same User before trading with 
other orders in a particular matching session. If, after an internal 
match occurs and residual orders remain, the residual orders will be 
available to trade with all other orders. These constraints are only 
active for a single matching session.''
    \7\ Because orders are entered by a ``mnemonic'' (i.e., member 
identifier and/or account identifier) and because mnemonics are 
categorized as either ``agency'' or ``proprietary,'' agency and 
proprietary orders cannot be entered under the same mnemonic. Thus, 
agency and proprietary orders cannot match and execute against each 
other in an internal match.
---------------------------------------------------------------------------

    The following examples will demonstrate how the proposed MatchPoint 
transactional fee will be charged:

    Example 1: User A enters a buy order into MatchPoint for 1,000 
shares of XYZ security and designates the order for the 11 a.m. 
matching session. User B enters a sell order into MatchPoint for 
1,000 shares of XYZ security and designates the order for the 11 
a.m. matching session. During the 11 a.m. matching session, User A's 
buy order for 1,000 shares of XYZ security and User B's sell order 
for 1,000 shares of XYZ security match and execute. User A is 
charged $.0015 per executed share (1,000 shares x $.0015 = $1.50). 
User B is also charged $.0015 per executed share (1,000 shares x 
$.0015 = $1.50).
    Example 2: User A enters a portfolio order into MatchPoint for a 
customer to buy 1,000 shares of XYZ security with an internal match 
constraint under the mnemonic ``Q'' for the 2 p.m. matching session. 
User A then enters another portfolio order into MatchPoint for a 
second customer to sell 1,000 shares of XYZ security with an 
internal match constraint under the same mnemonic (``Q'') for the 2 
p.m. matching session. During the 2 p.m. matching session, the above 
described portfolio orders entered by User A internally match and 
execute. Thus, User A's customers both receive executions of 1,000 
shares of XYZ security, but no transaction fee is charged to A for 
these internally matched executions.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the provisions of section 6 \8\ of the Act \9\ in general, and 
section 6(b)(4) of the Act \10\ 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. 
Specifically, the proposed transaction fee is reasonable

[[Page 6540]]

in light of the costs incurred by the Exchange for the operation of the 
MatchPoint system. Additionally, the transaction fee is equitable as 
the fee is applied to all users of the MatchPoint system equally.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78f.
    \9\ 15 U.S.C. 78a.
    \10\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    NYSE does not believe that the proposed rule change will impose any 
burden on competition that is not necessary or appropriate in 
furtherance of the purpose 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 \11\ and Rule 19b-4(f)(2) \12\ thereunder 
because it establishes a due, fee, or other charge applicable to a 
member imposed by NYSE. 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.
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    \11\ 15 U.S.C. 78s(b)(3)(A).
    \12\ 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-2008-06 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-2008-06. 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 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-2008-06 and should be 
submitted on or before February 25, 2008.

    For the Commission, by the Division of Trading and Markets, 
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. E8-1878 Filed 2-1-08; 8:45 am]
BILLING CODE 8011-01-P