Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Order Granting Accelerated Approval of Proposed Rule Change, as Modified by Amendment No. 1, Amending the Linkage Fees Portion of the Schedule of Fees and Charges for Exchange Services, 18842-18844 [E8-7113]
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18842
Federal Register / Vol. 73, No. 67 / Monday, April 7, 2008 / Notices
Market Maker Post Liquidity Incentive
Credit
NYSE Arca proposes to add a new fee
credit, which will be available to Market
Makers and Lead Market Makers
(‘‘LMMs’’) who reach a certain level of
monthly contact volume in Penny Pilot
Issues. Market Makers and LMMs that
achieve specific posting volume
thresholds for quotes and orders in
Penny Pilot issues will receive
additional credits as follows:
Post liquidity incentive thresholds
Credit
> 1,000,000 posting contracts/month ......................................................................................................................................
> 5,000,000 posting contracts/month ......................................................................................................................................
The incentive credit is incremental
and will apply to the posting volumes
executed within each tier, and this
credit is earned in addition to the
standard Post Liquidity fee credit. For
example, if a Market Maker trades
6,000,000 contracts in one month, the
Post Liquidity fee credit would be $0.30
for the first 1 million contracts, for
contracts 1,000,001 to 5,000,000 the
credit would be $0.30 plus a one-cent
incentive credit for a marginal credit
rate of $0.31, and for contracts 5,000,001
to 6,000,000, the credit would be $0.30
plus a five-cent incentive credit for a
marginal credit rate of $0.35.
The Incentive Credit will be
calculated on a monthly basis, and will
be reflected on OTP Holders’ bills on a
quarterly basis.
By offering the Market Maker Post
Liquidity Incentive Credit, NYSE Arca
hopes to attract additional Market
Makers and LMM quotes and orders to
the Exchange, which in turn should lead
to tighter spreads and deeper liquidity,
which will benefit all market
participants.
2. Statutory Basis
The Exchange believes that the
proposal is consistent with Section 6(b)
of the Act,6 in general, and furthers the
objectives of Section 6(b)(4) of the Act,7
in particular, in that it provides for the
equitable allocation of reasonable dues,
fees, and other charges among its
members.
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.
rfrederick on PROD1PC67 with NOTICES
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
Written comments on the proposed
rule change were neither solicited nor
received.
6 15
7 15
U.S.C. 78f(b).
U.S.C. 78f(b)(4).
VerDate Aug<31>2005
15:24 Apr 04, 2008
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing rule change
establishes or changes a due, fee, or
other charge imposed by the Exchange,
it has become effective pursuant to
Section 19(b)(3)(A) of the Act8 and
subparagraph (f)(2) of Rule 19b–49
thereunder. 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–NYSEArca–2008–36 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–NYSEArca–2008–36. 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
8 15
9 17
Jkt 214001
PO 00000
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(2).
Frm 00111
Fmt 4703
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for inspection and copying in
the Commission’s Public Reference
Room, 100 F Street, NE., Washington,
DC 20549, on official business days
between the hours of 10 a.m. and 3 p.m.
Copies of such filing also will be
available for inspection and copying at
the principal office of the Exchange. All
comments received will be posted
without change; the Commission does
not edit personal identifying
information from submissions. You
should submit only information that
you wish to make available publicly. All
submissions should refer to File No.
SR–NYSEArca–2008–36 and should be
submitted on or before April 28, 2008.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8–7112 Filed 4–4–08; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–57588; File No. SR–
NYSEArca–2008–37]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and Order
Granting Accelerated Approval of
Proposed Rule Change, as Modified by
Amendment No. 1, Amending the
Linkage Fees Portion of the Schedule
of Fees and Charges for Exchange
Services
March 31, 2008.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
10 17
Sfmt 4703
$.01/contract.
$.05/contract.
E:\FR\FM\07APN1.SGM
CFR 200.30–3(a)(12).
07APN1
Federal Register / Vol. 73, No. 67 / Monday, April 7, 2008 / Notices
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on March 28,
2008, NYSE Arca, Inc. (‘‘NYSE Arca’’ or
the ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(the ‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been
substantially prepared by the Exchange.
On March 31, 2008, the Exchange filed
Amendment No. 1 to the proposed rule
change. 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 is proposing to amend the
Linkage Fees portion of the Schedule of
Fees and Charges for Exchange Services
(‘‘Schedule’’). 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
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 III below. The
Exchange has prepared summaries, set
forth in Sections A, B, and C below, of
the most significant aspects of such
statements.
rfrederick on PROD1PC67 with NOTICES
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of this filing is to amend
the existing Schedule in order to revise
the Linkage Fees portion of the
Schedule, so as to conform with fee
changes the Exchange has proposed for
certain Broker Dealer executions. The
Exchange plans to implement the
revised Broker Dealer fees on April 1,
2008.
Executions on NYSE Arca resulting
from orders sent via the Intermarket
Option Linkage (‘‘Linkage Orders’’) are
subject to the same billing treatment as
other Broker Dealer orders.3 Presently,
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 As stated in the proposal to establish a pilot
program for Linkage Fees: ‘‘[i]n connection with the
launch of the options intermarket linkage, the
2 17
VerDate Aug<31>2005
15:24 Apr 04, 2008
Jkt 214001
the Exchange charges $0.50 for all
electronically executed Linkage Orders.
The Exchange assesses this rate for
Linkage Order executions in all issues,
including those that trade as part of the
Penny Pilot.4
Options that overlay issues that trade
as part of the Penny Pilot are subject to
a Post/Take pricing model.5 On March
28, 2008, NYSE Arca filed with the
Commission a proposal that lowers the
‘‘Take Liquidity’’ fee for electronically
executed Broker Dealer orders in issues
that trade as part of the Penny Pilot from
$0.50 to $0.45.6 Linkage Orders that are
executed in Penny Pilot issues are
assessed the same rate as other Broker
Dealer orders that take liquidity,
because Linkage Orders ‘‘take’’ liquidity
that is resting in the NYSE Arca
Consolidated Book as opposed to
‘‘posting’’ liquidity. In conjunction with
the change to the Take Liquidity fee that
the Exchange has previously proposed,
NYSE Arca is now proposing to create
a new fee for electronically executed
Linkage Orders in Penny Pilot issues.
Such orders that were previously
charged a $0.50 fee will now be assessed
a reduced fee of $0.45. Linkage Fees for
non-Penny Pilot issues remain the same.
This change will keep Linkage Fees
consistent with other fees charged for
Broker Dealer executions.
The Exchange plans to implement this
new, lower Linkage Fee in conjunction
with the implementation of the revised
Take Liquidity fee on April 1, 2008,
pending Commission approval.
2. Statutory Basis
The Exchange believes that the
proposal is consistent with Section 6(b)
of the Act,7 in general, and Section
Exchange seeks to include in its Schedule of Fees
and Charges For Exchange Services a provision that
applies to linkage fees stating that executions
resulting from Linkage Orders will be subject to the
same billing treatment as other broker-dealer
executions.’’
See Securities Exchange Act Release No. 47560
(March 21, 2003), 68 FR 15257 (March 28, 2003)
(SR–PCX–2003–08). See also Securities Exchange
Act Release Nos. 47786 (May 2, 2003), 68 FR 24779
(May 8, 2003) (order approving SR–PCX–2003–08)
and 56133 (July 25, 2007), 72 FR 42210 (August 1,
2007) (SR–NYSEArca–2007–66) (order approving
extension of Linkage Fee pilot program through July
31, 2008).
4 The Exchange may trade option contracts in
one-cent increments in certain approved issues as
part of the Penny Pilot through March 27, 2009. See
Securities Exchange Act Release No. 56568
(September 27, 2007), 72 FR 56422 (October 3,
2007) (SR–NYSEArca–2007–88).
5 A detailed description of the Post/Take pricing
model is shown in the Trade Related Charges
section of the Schedule.
6 See SR–NYSEArca–2008–36. Fee changes made
pursuant to SR–NYSEArca–2008–36, which was
effective upon filing, are reflected in the Schedule.
7 15 U.S.C. 78f(b).
PO 00000
Frm 00112
Fmt 4703
Sfmt 4703
18843
6(b)(4),8 in particular, in that it provides
for the equitable allocation of reasonable
dues, fees, and other charges among its
members and other persons using its
facilities for the purpose of executing
Linkage Orders that are routed to the
Exchange from other market centers.
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 on the proposed
rule change were neither solicited nor
received.
III. 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–NYSEArca–2008–37 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–NYSEArca–2008–37. 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
8 15
E:\FR\FM\07APN1.SGM
U.S.C. 78f(b)(4).
07APN1
18844
Federal Register / Vol. 73, No. 67 / Monday, April 7, 2008 / Notices
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for inspection and copying in
the Commission’s Public Reference
Room, 100 F Street, NE., Washington,
DC 20549, on official business days
between the hours of 10 a.m. and 3 p.m.
Copies of such filing also will be
available for inspection and copying at
the principal office of the Exchange. All
comments received will be posted
without change; the Commission does
not edit personal identifying
information from submissions. You
should submit only information that
you wish to make available publicly. All
submissions should refer to File
Number SR–NYSEArca–2008–37 and
should be submitted on or before April
28, 2008.
proposed rule change (SR–NYSEArca–
2008–37), as modified by Amendment
No. 1, is hereby approved on an
accelerated basis.
IV. Commission’s Findings and Order
Granting Accelerated Approval of
Proposed Rule Change
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 9 and, in
particular, with the requirements of
Section 6(b) of the Act.10 In particular,
the Commission finds that the
Exchange’s proposal is consistent with
Section 6(b)(4) of the Act,11 which
requires that the rules of the Exchange
provide for the equitable allocation or
reasonable dues, fees, and other charges
among its members and other persons
using its facilities. The Commission
notes that proposal conforms Linkage
Fees with those fees charged on other
Broker Dealer executions.
The Commission finds good cause,
pursuant to Section 19(b)(2)(B) of the
Act,12 for approving the proposed rule
change prior to the 30th day after the
date of publication of the notice of the
filing thereof in the Federal Register.
An accelerated approval will not only
permit the Exchange to comply with the
terms of the Linkage Fee pilot
program 13 but will also allow the
Exchange to immediately implement a
lower fee for market participants
executing Linkage Orders on NYSE
Arca.
Self-Regulatory Organizations; The
Options Clearing Corporation; Notice
of Filing of a Proposed Rule Change
Relating to Late Exercises
rfrederick on PROD1PC67 with NOTICES
V. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act 14 that the
9 In approving this rule, the Commission notes
that it has considered its impact on efficiency,
competition, and capital formation. 15 U.S.C. 78c(f).
10 15 U.S.C. 78f(b).
11 15 U.S.C. 78f(b)(4).
12 15 U.S.C. 78s(b)(2)(B).
13 See note 3 supra.
14 15 U.S.C. 78s(b)(2).
VerDate Aug<31>2005
15:24 Apr 04, 2008
Jkt 214001
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.15
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8–7113 Filed 4–4–08; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–57584; File No. SR–OCC–
2007–16]
March 31, 2008.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 notice is hereby given that on
December 7, 2007, The Options Clearing
Corporation (‘‘OCC’’) filed with the
Securities and Exchange Commission
the proposed rule change as described
in Items I, II and III below, which Items
have been prepared primarily by OCC.
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 the Substance
of the Proposed Rule Change
The proposed rule change would
amend OCC’s rules relating to the
submission of late items and the fees
associated with filing exercise notices
after the start of critical processing.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
OCC 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. OCC has prepared
summaries, set forth in sections A, B,
and C below, of the most significant
aspects of such statements.
15 17
1 15
PO 00000
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
Frm 00113
Fmt 4703
Sfmt 4703
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
The purpose of this rule filing is to
amend OCC’s (1) Rule 801 to modify the
fee applied to exercise notices that are
accepted by OCC after the start of
critical processing, (2) Rule 805 to make
conforming changes to the filing fees
applied to the submission of
supplementary exercise notices
tendered after critical processing, and
(3) Rule 205 to clarify the unusual or
unforeseen circumstances when OCC
may extend the cut-off time for
submitting instructions to OCC.
1. Background
Rule 801 addresses the exercise of
options other than at expiration. Subject
to specified exceptions and conditions,
Rule 801(d) grants certain individuals 2
the discretion to permit a clearing
member to file, revoke, or modify any
exercise notice after the prescribed
deadline for the purpose of correcting a
bona fide error. However, the requesting
clearing member is liable to OCC for a
late filing fee in escalating increments
and time segments. Currently, these fees
are:
(i) A fee of $5,000 for any request
accepted between the prescribed
deadline and the start of critical
processing (provided that the request
does not materially affect such start
time) 3 and
(ii) a filing fee of $20,000 per line item
listed on any exercise notice accepted
for filing after the start of critical
processing, with 50% of the fee to be
distributed to the assigned clearing
member or on a pro rata basis if more
than one clearing member is assigned.4
Clearing members with short
positions that have been assigned a late
exercise are to receive notification
thereof by 8 a.m. CT.
2. Discussion
At the March 2007 OCC Roundtable
meeting,5 a clearing member raised the
issue of processing late exercises other
2 Those individuals are OCC’s Chairman,
Management Vice Chairman, President, or a
designee of such officer.
3 The current deadline for submitting exercise
notices is 7:00 p.m. CT.
4 OCC will accept exercises until as late as 6:30
a.m. However, OCC will not accept a request to
revoke or modify an exercise after the start of
critical processing.
5 OCC’s Roundtable is an OCC-sponsored
advisory group comprised of representatives from
OCC’s participant exchanges, OCC, a cross-section
of OCC clearing members, and industry service
bureaus. The Roundtable considers operational
improvements that may be made to increase
efficiencies and lower costs in the options industry.
E:\FR\FM\07APN1.SGM
07APN1
]]>Agencies
[Federal Register Volume 73, Number 67 (Monday, April 7, 2008)]
[Notices]
[Pages 18842-18844]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-7113]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-57588; File No. SR-NYSEArca-2008-37]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Order Granting Accelerated Approval of Proposed Rule Change, as
Modified by Amendment No. 1, Amending the Linkage Fees Portion of the
Schedule of Fees and Charges for Exchange Services
March 31, 2008.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
[[Page 18843]]
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on March 28, 2008, NYSE Arca, Inc. (``NYSE Arca'' or the ``Exchange'')
filed with the Securities and Exchange Commission (the ``Commission'')
the proposed rule change as described in Items I and II below, which
Items have been substantially prepared by the Exchange. On March 31,
2008, the Exchange filed Amendment No. 1 to the proposed rule change.
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.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
NYSE Arca is proposing to amend the Linkage Fees portion of the
Schedule of Fees and Charges for Exchange Services (``Schedule''). 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 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 III 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
The purpose of this filing is to amend the existing Schedule in
order to revise the Linkage Fees portion of the Schedule, so as to
conform with fee changes the Exchange has proposed for certain Broker
Dealer executions. The Exchange plans to implement the revised Broker
Dealer fees on April 1, 2008.
Executions on NYSE Arca resulting from orders sent via the
Intermarket Option Linkage (``Linkage Orders'') are subject to the same
billing treatment as other Broker Dealer orders.\3\ Presently, the
Exchange charges $0.50 for all electronically executed Linkage Orders.
The Exchange assesses this rate for Linkage Order executions in all
issues, including those that trade as part of the Penny Pilot.\4\
---------------------------------------------------------------------------
\3\ As stated in the proposal to establish a pilot program for
Linkage Fees: ``[i]n connection with the launch of the options
intermarket linkage, the Exchange seeks to include in its Schedule
of Fees and Charges For Exchange Services a provision that applies
to linkage fees stating that executions resulting from Linkage
Orders will be subject to the same billing treatment as other
broker-dealer executions.''
See Securities Exchange Act Release No. 47560 (March 21, 2003),
68 FR 15257 (March 28, 2003) (SR-PCX-2003-08). See also Securities
Exchange Act Release Nos. 47786 (May 2, 2003), 68 FR 24779 (May 8,
2003) (order approving SR-PCX-2003-08) and 56133 (July 25, 2007), 72
FR 42210 (August 1, 2007) (SR-NYSEArca-2007-66) (order approving
extension of Linkage Fee pilot program through July 31, 2008).
\4\ The Exchange may trade option contracts in one-cent
increments in certain approved issues as part of the Penny Pilot
through March 27, 2009. See Securities Exchange Act Release No.
56568 (September 27, 2007), 72 FR 56422 (October 3, 2007) (SR-
NYSEArca-2007-88).
---------------------------------------------------------------------------
Options that overlay issues that trade as part of the Penny Pilot
are subject to a Post/Take pricing model.\5\ On March 28, 2008, NYSE
Arca filed with the Commission a proposal that lowers the ``Take
Liquidity'' fee for electronically executed Broker Dealer orders in
issues that trade as part of the Penny Pilot from $0.50 to $0.45.\6\
Linkage Orders that are executed in Penny Pilot issues are assessed the
same rate as other Broker Dealer orders that take liquidity, because
Linkage Orders ``take'' liquidity that is resting in the NYSE Arca
Consolidated Book as opposed to ``posting'' liquidity. In conjunction
with the change to the Take Liquidity fee that the Exchange has
previously proposed, NYSE Arca is now proposing to create a new fee for
electronically executed Linkage Orders in Penny Pilot issues. Such
orders that were previously charged a $0.50 fee will now be assessed a
reduced fee of $0.45. Linkage Fees for non-Penny Pilot issues remain
the same. This change will keep Linkage Fees consistent with other fees
charged for Broker Dealer executions.
---------------------------------------------------------------------------
\5\ A detailed description of the Post/Take pricing model is
shown in the Trade Related Charges section of the Schedule.
\6\ See SR-NYSEArca-2008-36. Fee changes made pursuant to SR-
NYSEArca-2008-36, which was effective upon filing, are reflected in
the Schedule.
---------------------------------------------------------------------------
The Exchange plans to implement this new, lower Linkage Fee in
conjunction with the implementation of the revised Take Liquidity fee
on April 1, 2008, pending Commission approval.
2. Statutory Basis
The Exchange believes that the proposal is consistent with Section
6(b) of the Act,\7\ in general, and Section 6(b)(4),\8\ in particular,
in that it provides for the equitable allocation of reasonable dues,
fees, and other charges among its members and other persons using its
facilities for the purpose of executing Linkage Orders that are routed
to the Exchange from other market centers.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78f(b).
\8\ 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 on the proposed rule change were neither solicited
nor received.
III. 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-NYSEArca-2008-37 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-NYSEArca-2008-37. 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
[[Page 18844]]
public in accordance with the provisions of 5 U.S.C. 552, will be
available for inspection and copying in the Commission's Public
Reference Room, 100 F Street, NE., Washington, DC 20549, on official
business days between the hours of 10 a.m. and 3 p.m. Copies of such
filing also will be available for inspection and copying at the
principal office of the Exchange. All comments received will be posted
without change; the Commission does not edit personal identifying
information from submissions. You should submit only information that
you wish to make available publicly. All submissions should refer to
File Number SR-NYSEArca-2008-37 and should be submitted on or before
April 28, 2008.
IV. Commission's Findings and Order Granting Accelerated Approval of
Proposed Rule Change
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 \9\ and, in particular, with the requirements of Section 6(b)
of the Act.\10\ In particular, the Commission finds that the Exchange's
proposal is consistent with Section 6(b)(4) of the Act,\11\ which
requires that the rules of the Exchange provide for the equitable
allocation or reasonable dues, fees, and other charges among its
members and other persons using its facilities. The Commission notes
that proposal conforms Linkage Fees with those fees charged on other
Broker Dealer executions.
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\9\ In approving this rule, the Commission notes that it has
considered its impact on efficiency, competition, and capital
formation. 15 U.S.C. 78c(f).
\10\ 15 U.S.C. 78f(b).
\11\ 15 U.S.C. 78f(b)(4).
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The Commission finds good cause, pursuant to Section 19(b)(2)(B) of
the Act,\12\ for approving the proposed rule change prior to the 30th
day after the date of publication of the notice of the filing thereof
in the Federal Register. An accelerated approval will not only permit
the Exchange to comply with the terms of the Linkage Fee pilot program
\13\ but will also allow the Exchange to immediately implement a lower
fee for market participants executing Linkage Orders on NYSE Arca.
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\12\ 15 U.S.C. 78s(b)(2)(B).
\13\ See note 3 supra.
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V. Conclusion
It is therefore ordered, pursuant to Section 19(b)(2) of the Act
\14\ that the proposed rule change (SR-NYSEArca-2008-37), as modified
by Amendment No. 1, is hereby approved on an accelerated basis.
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\14\ 15 U.S.C. 78s(b)(2).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
Florence E. Harmon,
Deputy Secretary.
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\15\ 17 CFR 200.30-3(a)(12).
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[FR Doc. E8-7113 Filed 4-4-08; 8:45 am]
BILLING CODE 8011-01-P
