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]
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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 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
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
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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
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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 (https://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 (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–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
(https://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
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Fmt 4703
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]]>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]
-----------------------------------------------------------------------
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).
---------------------------------------------------------------------------
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
https://www.nyse.com.
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 57058 (December 28,
2007), 73 FR 903 (January 4, 2008) (SR-NYSE-2007-102).
---------------------------------------------------------------------------
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).
---------------------------------------------------------------------------
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.
---------------------------------------------------------------------------
\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 (https://
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 (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-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\
---------------------------------------------------------------------------
\13\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Nancy M. Morris,
Secretary.
[FR Doc. E8-1878 Filed 2-1-08; 8:45 am]
BILLING CODE 8011-01-P
