Self-Regulatory Organizations; National Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change and Amendment No. 1 Thereto Relating to the Pass-Through of Certain Costs to ETP Holders, 11971-11973 [E8-4175]
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Federal Register / Vol. 73, No. 44 / Wednesday, March 5, 2008 / 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:
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
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–NSCC–2007–17 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.
jlentini on PROD1PC65 with NOTICES
For the Commission by the Division of
Trading and Markets, pursuant to delegated
authority.6
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8–4171 Filed 3–4–08; 8:45 am]
[Release No. 34–57390; File No. SR–NSX–
2008–02]
Self-Regulatory Organizations;
National Stock Exchange, Inc.; Notice
of Filing and Immediate Effectiveness
of a Proposed Rule Change and
Amendment No. 1 Thereto Relating to
the Pass-Through of Certain Costs to
ETP Holders
February 27, 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 February
5, 2008, the National Stock Exchange,
All submissions should refer to File
Inc. (‘‘NSX’’ or the ‘‘Exchange’’) filed
Number SR–NSCC–2007–17. This file
with the Securities and Exchange
number should be included on the
subject line if e-mail is used. To help the Commission (‘‘Commission’’) the
proposed rule change as described in
Commission process and review your
Items I, II, and III below, which Items
comments more efficiently, please use
only one method. The Commission will have been prepared substantially by the
post all comments on the Commission’s Exchange. On February 27, 2008, NSX
filed Amendment No. 1 to the proposed
Internet Web site (https://www.sec.gov/
rule change to make certain clarifying
rules/sro.shtml). Copies of the
changes to the description of its
submission, all subsequent
proposal. NSX has designated this
amendments, all written statements
proposal as one establishing or changing
with respect to the proposed rule
a member due, fee, or other charge
change that are filed with the
imposed by NSX under Section
Commission, and all written
19(b)(3)(A)(ii) of the Act 3 and Rule 19b–
communications relating to the
4(f)(2) thereunder,4 which renders the
proposed rule change between the
proposal effective upon filing with the
Commission and any person, other than Commission. The Commission is
those that may be withheld from the
publishing this notice to solicit
public in accordance with the
comments on the proposed rule change,
provisions of 5 U.S.C. 552, will be
as amended, from interested persons.
available for inspection and copying in
I. Self-Regulatory Organization’s
the Commission’s Public Reference
Statement of the Terms of Substance of
Room, 100 F Street, NE., Washington,
the Proposed Rule Change
DC 20549, on official business days
NSX proposes to amend the NSX
between the hours of 10 a.m. and 3 p.m.
BLADE SM Fee and Rebate Schedule to
Copies of such filing also will be
give the Exchange the explicit authority
available for inspection and copying at
to pass through to a specific ETP Holder
the principal office of NSCC. All
costs that are assessed to the Exchange
comments received will be posted
by a third party that are attributable to
without change; the Commission does
that particular ETP Holder for its use of
not edit personal identifying
the facilities of the Exchange. The text
information from submissions. You
of the proposed rule change is available
should submit only information that
at www.nsx.com, the principal offices of
you wish to make available publicly. All
submissions should refer to File
6 17 CFR 200.30–3(a)(12).
Number SR–NSCC–2007–17 and should
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
be submitted on or before March 26,
3 15 U.S.C. 78s(b)(3)(A)(ii).
2008.
4 17
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CFR 240.19b–4(f)(2).
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11971
the Exchange, and 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
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. NSX
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
With this rule change, the Exchange is
proposing that the NSX BLADE Fee
Schedule be amended to give the
Exchange the explicit authority to pass
through to a specific ETP Holder 5 costs
that are assessed to the Exchange by a
third party vendor that are attributable
to that particular ETP Holder for its use
of the facilities of the Exchange. These
costs include line connectivity and
other technological charges and/or
upgrades assessed for the ETP Holder’s
communications with the Exchange, in
connection with the Cross Connect
service defined below.
The Exchange currently offers ETP
Holders the option of connecting to the
Exchange through a direct connection, a
service provider or through an extranet
provider. ETP Holders electing a direct
connection to the Exchange that do not
utilize a circuit/line obtained from the
third party vendor that houses the
Exchange’s data center must be
connected to the Exchange through a
line or circuit provided by that vendor
(hereinafter the ‘‘Cross Connect’’
service). The third party vendor charges
fees associated with this Cross Connect
service (the ‘‘Cross Connect Fee
Schedule’’). It should be noted that the
third party vendor does not charge a
Cross Connect fee for any ETP Holder
that utilizes the vendor’s circuits.
The Cross Connect Fee Schedule
includes a one-time installation charge
per circuit or line, and monthly fees
which vary depending on the different
5 An ETP Holder is a registered broker or dealer
that has been issued an Equity Trading Permit
(‘‘ETP’’) by NSX. An ETP Holder will have the
status of a ‘‘member’’ of the Exchange as that term
is defined in Section 3(a)(3) of the Act (15 U.S.C.
78c(a)(3)).
E:\FR\FM\05MRN1.SGM
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11972
Federal Register / Vol. 73, No. 44 / Wednesday, March 5, 2008 / Notices
circuit levels selected. These circuit
options include a T–1, T–3 and Ethernet
circuit lines. The vendor also offers this
service to connect to the Exchange’s
primary and back-up data centers. Thus,
to establish connectivity, the ETP
Holder must select the preferred circuit/
line size, number of lines desired and
location preferences. In all cases, the
ETP Holder selects the service that it
desires, and thus, is apprised of and in
fact exercises control over the fees
associated with this connectivity to the
Exchange.
The current Cross Connect Fee
Schedule provides for a one-time
installation charge for a router of $150
and a one-time installation charge
ranging between $100 and $275 per
circuit depending on the circuit
selected. In addition, the current Cross
Connect Fee Schedule provides for
monthly fees ranging between $50 and
$375 per circuit per location. While
these costs are determined between the
ETP Holder and vendor, the Exchange
represents that it will maintain a current
schedule of fees from the third-party
vendor, and will provide this Cross
Connect Fee Schedule to ETP Holders
upon request and/or otherwise make it
available on the Exchange’s Web site.
It should be noted that these costs
could be directly billed to the ETP
Holder by the third party vendor, but for
administrative ease, the Exchange has
agreed to act as an intermediary.
Because the Exchange has an existing
contractual relationship with the third
party vendor, the latter prefers to charge
the Exchange rather than the ETP
Holder directly. These charges are
limited to those that are incurred by the
Exchange from a third party on behalf
of a particular ETP Holder for that ETP
Holder’s benefit and use of the facilities
of the Exchange. In addition, as stated,
the ETP Holder would be notified of any
charges which would be subject to this
pass through provision prior to the
charge being incurred.
This provision is intended to capture
those costs relating to services that
directly benefit and are requested by
ETP Holders for certain services and do
not include the general operating
expenses of the Exchange. Moreover, the
Exchange proposes to pass through such
costs without any markup or premium
imposed by the Exchange.
The Exchange has determined that
this change is necessary for competitive
reasons. The cumulative amount of such
costs, without the ability to pass them
through to the ETP Holders who benefit
from and in fact request the services
giving rise to such costs, puts the
Exchange at a competitive disadvantage.
The Exchange believes that the
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18:03 Mar 04, 2008
Jkt 214001
proposed rule change is consistent with
the protection of investors and the
public interest.
The Exchange intends to pass through
costs to ETP Holders in accordance with
the proposed rule change immediately
upon filing of this proposed rule change
with the Commission for the time
period covered by the February invoice.
Pursuant to Exchange Rule 16.1(c),
the Exchange will ‘‘provide ETP Holders
with notice of all relevant dues, fees,
assessments and charges of the
Exchange’’. The Exchange will issue a
Regulatory Circular of the changes to the
NSX BLADE Fee Schedule and will
provide a copy of the rule filing on the
Exchange’s Web site (https://
www.nsx.com).
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the provisions of Section 6(b) of the
Act,6 in general, and with Section
6(b)(4) of the Act,7 in particular, in that
it provides for the equitable allocation
of reasonable dues, fees and other
charges.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any inappropriate burden on
competition.
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 on
members by the Exchange. Accordingly,
the proposal is effective 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
6 15
U.S.C. 78f.
7 15 U.S.C. 78f(b)(4).
8 15 U.S.C. 78s(b)(3)(A)(ii).
9 17 CFR 240.19b–4(f)(2).
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in furtherance of the purposes of the
Act.10
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–NSX–2008–02 on the
subject line.
Paper comments
• Send paper comments in triplicate
to Nancy M. Morris, Secretary,
Securities and Exchange Commission,
Station Place, 100 F Street, NE.,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–NSX–2008–02. 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 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 publicly available. All
submissions should refer to File
10 For purposes of calculating the 60-day period
within which the Commission may summarily
abrogate the proposed rule change under Section
19(b)(3)(C) of the Act, the Commission considers
the period to commence on February 27, 2008, the
date on which NSX filed Amendment No. 1.
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Federal Register / Vol. 73, No. 44 / Wednesday, March 5, 2008 / Notices
Number SR–NSX–2008–02 and should
be submitted on or before March 26,
2008.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8–4175 Filed 3–4–08; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–57389; File No. SR–
NYSEArca–2008–06]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Order Granting Accelerated
Approval of Proposed Rule Change
Relating to the Dissemination of the
Index Value for Equity Index-Linked
Securities
February 27, 2008.
I. Introduction
On January 11, 2008, NYSE Arca, Inc.
(‘‘NYSE Arca’’ or ‘‘Exchange’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’), pursuant
to Section 19(b)(1) of the Securities
Exchange Act of 1934 (‘‘Act’’) 1 and Rule
19b–4 thereunder,2 a proposed rule
change relating to the dissemination of
the index value for Equity Index-Linked
Securities.3 The proposed rule change
was published for comment in the
Federal Register on February 11, 2008
for a 15-day comment period.4 The
Commission received no comments on
the proposal. This order approves the
proposed rule change on an accelerated
basis.
II. Description of the Proposal
NYSE Arca Equities Rule
5.2(j)(6)(B)(I)(2)(c)(ii) currently provides
that the Exchange will commence
delisting or removal proceedings of an
issue of Equity Index-Linked Securities
(unless the Commission has approved
continued trading of such Securities) if,
among other circumstances, the value of
the index or composite value of the
indexes underlying such issue is no
longer calculated or widely
disseminated on at least a 15-second
basis. The Exchange proposes to amend
11 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 Equity Index-Linked Securities are securities
that provide for the payment at maturity of a cash
amount based on the performance of an underlying
index or indexes of equity securities. See NYSE
Arca Equities Rule 5.2(j)(6).
4 See Securities Exchange Act Release No. 57273
(February 5, 2008), 73 FR 7774.
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1 15
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18:03 Mar 04, 2008
Jkt 214001
NYSE Arca Equities Rule
5.2(j)(6)(B)(I)(2)(c)(ii) to distinguish
between indexes consisting solely of
U.S. equity securities and those
consisting of foreign securities or a
combination of U.S. and foreign equity
securities. The proposed amendment
provides that the Exchange will
commence delisting or removal
proceedings if the underlying index
value or composite index value is no
longer calculated or widely
disseminated: (1) On at least a 15second basis with respect to an index or
indexes containing only securities listed
on a national securities exchange;5 or (2)
on at least a 60-second basis with
respect to an index or indexes
containing foreign country securities. If
the official index value does not change
during some or all of the period when
trading is occurring on the NYSE Arca
Marketplace 6 (for example, for indexes
of foreign country securities, there may
be time zone differences or holidays in
the countries where such indexes’
component stocks trade), then the last
calculated official index value must
remain available throughout NYSE Arca
Marketplace trading hours. The
Exchange seeks to conform the index
dissemination requirements for Equity
Index-Linked Securities to those for
Investment Company Units, which
include exchange-traded funds or
‘‘ETFs,’’ under NYSE Arca Equities Rule
5.2(j)(3).
III. Discussion and Commission’s
Findings
After careful consideration, the
Commission finds that the proposed
rule change is consistent with the
requirements of the Act and the rules
and regulations thereunder applicable to
a national securities exchange.7 In
particular, the Commission finds that
the proposed rule change is consistent
with the requirements of Section 6(b)(5)
of the Act,8 which requires, among other
things, that the Exchange’s rules be
designed to promote just and equitable
principles of trade, to foster cooperation
and coordination with persons engaged
in regulating, clearing, settling,
processing information with respect to,
and facilitating transactions in
securities, to remove impediments to
5 American Depositary Shares and common
shares of foreign issuers listed on U.S. national
securities exchanges included in an index or
indexes would be subject to the 15-second
dissemination requirement.
6 See NYSE Arca Equities Rule 1.1(e) (defining
NYSE Arca Marketplace).
7 In approving this proposed rule change, the
Commission notes that it has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
8 15 U.S.C. 78f(b)(5).
PO 00000
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11973
and perfect the mechanism of a free and
open market and a national market
system, and, in general, to protect
investors and the public interest.
The Commission notes that
opportunities to invest in derivative
securities products based not only on
U.S. equity securities, but also on an
international or global index of equity
securities, provide additional choices to
accommodate particular investment
needs and objectives, to the benefit of
investors. With respect to the
dissemination of the value of an index
that is comprised, at least in part, of
non-U.S. equity component securities,
the proposed 60-second standard
reflects limitations, in some instances,
on the frequency of intra-day trading
information with respect to such foreign
securities and that, in many cases,
trading hours for overseas markets
overlap only in part, or not at all, with
NYSE Arca Marketplace trading hours.9
In addition, if an index or portfolio
value does not change for some of the
time that the derivative securities
product trades on the Exchange, the last
official calculated value must remain
available throughout Exchange trading
hours. The Commission believes that
such 60-second standard relating to the
dissemination of the value of an index
composed, at least in part, of foreign
equity securities should apply to Equity
Index-Linked Securities as well as ETFs
and finds that NYSE Arca’s proposal is
consistent with the Exchange Act on the
same basis that it approved the other
exchanges’ generic listing standards for
ETFs based on international or global
indexes.10
The Commission finds good cause for
approving the proposed rule change
before the 30th day after the date of
publication of notice of filing thereof in
the Federal Register. The Commission
notes that the proposal is substantially
similar to previously approved listing
standards for Investment Company
Units under NYSE Arca Equities Rule
5.2(j)(3) 11 and for ETFs listed and
traded pursuant to similar rules of other
national securities exchanges.12 The
Commission believes that accelerated
approval of the proposed rule change,
9 See Securities Exchange Act Release No. 55621
(April 12, 2007), 72 FR 19571 (April 18, 2007) (SR–
NYSEArca–2006–86) (approving generic listing
standards for ETFs based on international or global
indexes).
10 See, e.g., Securities Exchange Act Release Nos.
55269 (February 9, 2007), 72 FR 7490 (February 15,
2007) (SR–NASDAQ–2006–050); 55113 (January 17,
2007), 72 FR 3179 (January 24, 2007) (SR–NYSE–
2006–101); and 54739 (November 9, 2006), 71 FR
66993 (November 17, 2006) (SR–Amex–2006–78).
11 See supra note 9. See also Commentary
.01(b)(2) to NYSE Arca Equities Rule 5.2(j)(3).
12 See supra note 10.
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]]>Agencies
[Federal Register Volume 73, Number 44 (Wednesday, March 5, 2008)]
[Notices]
[Pages 11971-11973]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-4175]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-57390; File No. SR-NSX-2008-02]
Self-Regulatory Organizations; National Stock Exchange, Inc.;
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change
and Amendment No. 1 Thereto Relating to the Pass-Through of Certain
Costs to ETP Holders
February 27, 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 February 5, 2008, the National Stock Exchange, Inc. (``NSX'' or the
``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 substantially by the
Exchange. On February 27, 2008, NSX filed Amendment No. 1 to the
proposed rule change to make certain clarifying changes to the
description of its proposal. NSX has designated this proposal as one
establishing or changing a member due, fee, or other charge imposed by
NSX 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.
---------------------------------------------------------------------------
\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
NSX proposes to amend the NSX BLADE \SM\ Fee and Rebate Schedule to
give the Exchange the explicit authority to pass through to a specific
ETP Holder costs that are assessed to the Exchange by a third party
that are attributable to that particular ETP Holder for its use of the
facilities of the Exchange. The text of the proposed rule change is
available at www.nsx.com, the principal offices of the Exchange, and
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 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. NSX 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
With this rule change, the Exchange is proposing that the NSX BLADE
Fee Schedule be amended to give the Exchange the explicit authority to
pass through to a specific ETP Holder \5\ costs that are assessed to
the Exchange by a third party vendor that are attributable to that
particular ETP Holder for its use of the facilities of the Exchange.
These costs include line connectivity and other technological charges
and/or upgrades assessed for the ETP Holder's communications with the
Exchange, in connection with the Cross Connect service defined below.
---------------------------------------------------------------------------
\5\ An ETP Holder is a registered broker or dealer that has been
issued an Equity Trading Permit (``ETP'') by NSX. An ETP Holder will
have the status of a ``member'' of the Exchange as that term is
defined in Section 3(a)(3) of the Act (15 U.S.C. 78c(a)(3)).
---------------------------------------------------------------------------
The Exchange currently offers ETP Holders the option of connecting
to the Exchange through a direct connection, a service provider or
through an extranet provider. ETP Holders electing a direct connection
to the Exchange that do not utilize a circuit/line obtained from the
third party vendor that houses the Exchange's data center must be
connected to the Exchange through a line or circuit provided by that
vendor (hereinafter the ``Cross Connect'' service). The third party
vendor charges fees associated with this Cross Connect service (the
``Cross Connect Fee Schedule''). It should be noted that the third
party vendor does not charge a Cross Connect fee for any ETP Holder
that utilizes the vendor's circuits.
The Cross Connect Fee Schedule includes a one-time installation
charge per circuit or line, and monthly fees which vary depending on
the different
[[Page 11972]]
circuit levels selected. These circuit options include a T-1, T-3 and
Ethernet circuit lines. The vendor also offers this service to connect
to the Exchange's primary and back-up data centers. Thus, to establish
connectivity, the ETP Holder must select the preferred circuit/line
size, number of lines desired and location preferences. In all cases,
the ETP Holder selects the service that it desires, and thus, is
apprised of and in fact exercises control over the fees associated with
this connectivity to the Exchange.
The current Cross Connect Fee Schedule provides for a one-time
installation charge for a router of $150 and a one-time installation
charge ranging between $100 and $275 per circuit depending on the
circuit selected. In addition, the current Cross Connect Fee Schedule
provides for monthly fees ranging between $50 and $375 per circuit per
location. While these costs are determined between the ETP Holder and
vendor, the Exchange represents that it will maintain a current
schedule of fees from the third-party vendor, and will provide this
Cross Connect Fee Schedule to ETP Holders upon request and/or otherwise
make it available on the Exchange's Web site.
It should be noted that these costs could be directly billed to the
ETP Holder by the third party vendor, but for administrative ease, the
Exchange has agreed to act as an intermediary. Because the Exchange has
an existing contractual relationship with the third party vendor, the
latter prefers to charge the Exchange rather than the ETP Holder
directly. These charges are limited to those that are incurred by the
Exchange from a third party on behalf of a particular ETP Holder for
that ETP Holder's benefit and use of the facilities of the Exchange. In
addition, as stated, the ETP Holder would be notified of any charges
which would be subject to this pass through provision prior to the
charge being incurred.
This provision is intended to capture those costs relating to
services that directly benefit and are requested by ETP Holders for
certain services and do not include the general operating expenses of
the Exchange. Moreover, the Exchange proposes to pass through such
costs without any markup or premium imposed by the Exchange.
The Exchange has determined that this change is necessary for
competitive reasons. The cumulative amount of such costs, without the
ability to pass them through to the ETP Holders who benefit from and in
fact request the services giving rise to such costs, puts the Exchange
at a competitive disadvantage. The Exchange believes that the proposed
rule change is consistent with the protection of investors and the
public interest.
The Exchange intends to pass through costs to ETP Holders in
accordance with the proposed rule change immediately upon filing of
this proposed rule change with the Commission for the time period
covered by the February invoice.
Pursuant to Exchange Rule 16.1(c), the Exchange will ``provide ETP
Holders with notice of all relevant dues, fees, assessments and charges
of the Exchange''. The Exchange will issue a Regulatory Circular of the
changes to the NSX BLADE Fee Schedule and will provide a copy of the
rule filing on the Exchange's Web site (https://www.nsx.com).
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the provisions of Section 6(b) of the Act,\6\ in general, and with
Section 6(b)(4) of the Act,\7\ in particular, in that it provides for
the equitable allocation of reasonable dues, fees and other charges.
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\6\ 15 U.S.C. 78f.
\7\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any inappropriate burden on competition.
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 on members by the Exchange. Accordingly, the
proposal is effective 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 furtherance
of the purposes of the Act.\10\
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\8\ 15 U.S.C. 78s(b)(3)(A)(ii).
\9\ 17 CFR 240.19b-4(f)(2).
\10\ For purposes of calculating the 60-day period within which
the Commission may summarily abrogate the proposed rule change under
Section 19(b)(3)(C) of the Act, the Commission considers the period
to commence on February 27, 2008, the date on which NSX filed
Amendment No. 1.
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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-NSX-2008-02 on the subject line.
Paper comments
Send paper comments in triplicate to Nancy M. Morris,
Secretary, Securities and Exchange Commission, Station Place, 100 F
Street, NE., Washington, DC 20549-1090.
All submissions should refer to File Number SR-NSX-2008-02. 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 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 publicly available. All
submissions should refer to File
[[Page 11973]]
Number SR-NSX-2008-02 and should be submitted on or before March 26,
2008.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
Florence E. Harmon,
Deputy Secretary.
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\11\ 17 CFR 200.30-3(a)(12).
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[FR Doc. E8-4175 Filed 3-4-08; 8:45 am]
BILLING CODE 8011-01-P
