Self-Regulatory Organizations; National Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend NSX Rule 16.2(b) and the NSX BLADESM, 21395-21397 [E8-8584]
Download as PDF
<![CDATA[
Federal Register / Vol. 73, No. 77 / Monday, April 21, 2008 / Notices
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the objectives of Section 6 of the Act,10
in general, and furthers the objectives of
Section 6(b)(4),11 in particular, in that it
is designed to provide for the equitable
allocation of reasonable dues, fees and
other charges among CBOE members
and other persons using CBOE facilities.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The proposed rule change does not
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
The Exchange has not solicited, and
does not intend to solicit, comments on
this proposed rule change. The
Exchange has not received any
unsolicited written comments from
members or other interested parties.
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 Act 12 and
Rule 19b–4(f)(2) 13 thereunder. 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:
rwilkins on PROD1PC63 with NOTICES
No. SR–CBOE–2008–36 on the subject
line.
SECURITIES AND EXCHANGE
COMMISSION
Paper Comments
[Release No. 34–57664; File No. SR–NSX–
2008–09]
• Send paper comments in triplicate
to Nancy M. Morris, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
Self-Regulatory Organizations;
National Stock Exchange, Inc.; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change To Amend
NSX Rule 16.2(b) and the NSX
All submissions should refer to File
BLADESM Fee and Rebate Schedule To
Number SR–CBOE–2008–36. This file
Reflect the Availability and Pricing of
number should be included on the
the Zero Display Reserve Order Type
subject line if e-mail is used. To help the Previously Approved by the
Commission
Commission process and review your
comments more efficiently, please use
April 15, 2008.
only one method. The Commission will
Pursuant to Section 19(b)(1) of the
post all comments on the Commission’s Securities Exchange Act of 1934
Internet Web site (https://www.sec.gov/
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
rules/sro.shtml). Copies of the
notice is hereby given that on April 11,
submission, all subsequent
2008, National Stock Exchange, Inc.
amendments, all written statements
(‘‘NSX’’ or ‘‘Exchange’’) filed with the
with respect to the proposed rule
Securities and Exchange Commission
change that are filed with the
(‘‘Commission’’) the proposed rule
Commission, and all written
change as described in Items I, II, and
communications relating to the
III below, which Items have been
substantially prepared by NSX. NSX
proposed rule change between the
Commission and any person, other than filed the proposal pursuant to Section
19(b)(3)(A)(ii) of the Act 3 and Rule 19b–
those that may be withheld from the
4(f)(2) 4 thereunder, as establishing or
public in accordance with the
changing a due, fee, or other charges
provisions of 5 U.S.C. 552, will be
applicable to a member, which renders
available for inspection and copying in
the proposed rule change effective upon
the Commission’s Public Reference
filing with the Commission. The
Room, 100 F Street, NE., Washington,
Commission is publishing this notice to
DC 20549, on official business days
between the hours of 10 a.m. and 3 p.m. solicit comments on the proposed rule
change from interested persons.
Copies of such filing also will be
available for inspection and copying at
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the principal office of the CBOE. All
the Proposed Rule Change
comments received will be posted
without change; the Commission does
NSX proposes to amend NSX Rule
not edit personal identifying
16.2(b)(2) and the NSX BLADESM Fee
information from submissions. You
and Rebate Schedule (‘‘Fee Schedule’’)
should submit only information that
in order to reflect the availability and
you wish to make available publicly. All pricing of the Zero Display Reserve
submissions should refer to File
Order 5 type previously approved by the
Number SR–CBOE–2008–36 and should Commission.6
The text of the proposed rule change
be submitted on or before May 12, 2008.
is available on the Exchange’s Web site
For the Commission, by the Division of
at https://www.nsx.com, at the principal
Trading and Markets, pursuant to delegated
office of the Exchange, and at the
14
authority.
Commission’s Public Reference Room.
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8–8519 Filed 4–18–08; 8:45 am]
BILLING CODE 8010–01–P
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
U.S.C. 78f(b).
U.S.C. 78f(b)(4).
12 15 U.S.C. 78s(b)(3)(A).
13 17 CFR 19b–4(f)(2).
14 17
Jkt 214001
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(ii).
417 CFR 240.19b–4(f)(2).
5 As specified in NSX Rule 11.11(c)(2)(A).
6 See Securities Exchange Act Release No. 57311
(February 12, 2008), 73 FR 9148 (February 19, 2008)
(SR–NSX–2008–03).
2 17
11 15
16:59 Apr 18, 2008
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
1 15
10 15
VerDate Aug<31>2005
21395
PO 00000
CFR 200.30–3(a)(12).
Frm 00093
Fmt 4703
Sfmt 4703
E:\FR\FM\21APN1.SGM
21APN1
21396
Federal Register / Vol. 73, No. 77 / Monday, April 21, 2008 / Notices
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
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
Description
With this rule change, the Exchange is
proposing to amend NSX Rule 16.2(b)(2)
and the NSX Fee Schedule to reflect the
rollout of the Zero Display Reserve
Order 7 type previously approved by the
Commission.8 Specifically, Zero Display
Reserve Orders are proposed to be
excluded from the liquidity provider
rebate structure payable to ETP
Holders 9 in the Automatic Execution
mode of order interaction (‘‘AutoEx’’).10
Accordingly, ETP Holders will receive
no rebate for adding liquidity with Zero
Display Reserve Orders in AutoEx. In
addition, in the Order Delivery 11 mode
of order interaction, Zero Display
Reserve Orders are proposed under NSX
Rule 16.2(b)(2) and the Fee Schedule to
be ineligible for both liquidity provider
rebates and market data credits.
Accordingly, ETP Holders will receive
no rebate for adding liquidity, and will
receive no market data credits, with
respect to Zero Display Reserve Orders
in Order Delivery. However, like other
order types, Zero Display Reserve
Orders are subject to fees for taking
liquidity. This proposed fee and rebate
structure applies to all securities,
regardless of price, which are Zero
Display Reserve Orders.
The proposed fee and rebate structure
with respect to the Zero Display Reserve
Order type is not discriminatory in that
all ETP Holders are eligible to submit
both displayed orders and/or nondisplayed orders (i.e., Zero Display
Reserve Orders) at their own discretion.
The instant filing also proposes to add
the words ‘‘fee,’’ ‘‘rebate’’ and ‘‘credit’’
in several places, as applicable, in the
Fee Schedule for purposes of
7 See
supra note 5.
supra note 6.
9 An ETP Holder is a registered broker or dealer
that has been issued an Equity Trading Permit
(‘‘ETP’’) by the NSX. An ETP Holder will have the
status of a ‘‘member’’ of the Exchange as that term
is defined in Section 3 of the Act.
10 As specified in NSX Rule 11.13(b)(1).
11 As specified in NSX Rule 11.13(b)(2).
rwilkins on PROD1PC63 with NOTICES
8 See
VerDate Aug<31>2005
16:59 Apr 18, 2008
Jkt 214001
clarification. There are no other
currently proposed changes to Fee
Schedule.
Rationale
The amended Fee Schedule is
intended to encourage ETP Holders to
display orders on NSX. Because Zero
Display Reserve Orders are not
displayed orders, the Exchange is
proposing that orders of this type do not
receive any liquidity provider rebate or
market data credit.
The Exchange has determined that
this change is necessary for competitive
reasons. Under the proposed Fee
Schedule, the fees paid by a particular
ETP Holder will continue to depend on
a number of variables, including the
mode of order interaction (AutoEx or
Order Delivery), the types of securities
traded through NSX BLADESM (Tapes
A, B or C), the average daily monthly
liquidity providing volume, and the
price of the securities (with a distinction
for those above and below $1.00). The
use of Zero Display Reserve Orders and
the fees and rebates they incur and
accrue constitutes an additional variable
which ETP Holders may take into
account in allocating order flow. NSX
notes that it operates in a highly
competitive market in which market
participants can readily direct order
flow to competing venues if they deem
fee levels at a particular venue to be
more attractive. Accordingly, the
proposed modifications attempt to keep
the fees reflected in the Fee Schedule
competitive with fees charged by other
venues and to continue to be reasonable
and equitably allocated to those ETP
Holders that opt to direct orders to NSX.
Based upon the information above, the
Exchange believes that the proposed
rule change is consistent with the
protection of investors and the public
interest.
Effective Date and Notice
The Exchange intends to implement
the proposed Fee Schedule in
accordance with the proposed rule
change on April 15, 2008. Pursuant to
NSX Rule 16.1(c), the Exchange will
‘‘provide ETP Holders with notice of all
relevant dues, fees, assessments and
charges of the Exchange’’ through the
issuance of a Regulatory Circular of the
changes to the Fee Schedule and will
provide a copy of the rule filing on the
Exchange’s Web site (https://
www.nsx.com).
2. Statutory Basis
Frm 00094
Fmt 4703
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 become effective upon filing with
the Commission pursuant to Section
19(b)(3)(A)(ii) of the Act 14 and Rule
19b-4(f)(2) 15 thereunder, because it
establishes or changes a due, fee, or
other charge applicable only to a
member.
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.16
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
12 15
The Exchange believes that the
proposed rule change is consistent with
the provisions of Section 6(b) of the
PO 00000
Act,12 in general, and with Section
6(b)(4) of the Act,13 in particular, in that
it provides for the equitable allocation
of reasonable dues, fees, and other
charges among its members and issuers
and other persons using its facilities.
Moreover, the proposed fee and rebate
structure with respect to the Zero
Display Reserve Order type is not
discriminatory in that all ETP Holders
are eligible to submit displayed orders
or utilize the new Zero Display Reserve
Order type and may do so at their
discretion.
Sfmt 4703
U.S.C. 78f(b).
U.S.C. 78f(b)(4).
14 15 U.S.C. 78s(b)(3)(A)(ii).
15 17 CFR 240.19b–4(f)(2).
16 See 15 U.S.C. 78s(b)(3)(C).
13 15
E:\FR\FM\21APN1.SGM
21APN1
Federal Register / Vol. 73, No. 77 / Monday, April 21, 2008 / Notices
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–NSX–2008–09 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–NSX–2008–09. 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 NSX. 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–NSX–2008–09 and should
be submitted on or before May 12, 2008.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.17
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8–8584 Filed 4–18–08; 8:45 am]
rwilkins on PROD1PC63 with NOTICES
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–57670; File No. SR–
NYSEArca–2008–31]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing of Proposed
Rule Change Relating to the Listing
and Trading of Shares of Twelve
Actively Managed Exchange-Traded
Funds of the WisdomTree Trust
April 15, 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 April 4,
2008, NYSE Arca, Inc. (‘‘NYSE Arca’’ or
‘‘Exchange’’), through its wholly owned
subsidiary, NYSE Arca Equities, Inc.
(‘‘NYSE Arca Equities’’), filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I, II, and
III below, which Items have been
substantially prepared by the Exchange.
The Commission is publishing this
notice to solicit comments on the
proposed rule change from interested
persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to list and
trade the shares (‘‘Shares’’) of the
following twelve actively managed
exchange-traded funds of the
WisdomTree Trust (‘‘Trust’’) pursuant to
NYSE Arca Equities Rule 8.600
(Managed Fund Shares): (1)
WisdomTree U.S. Current Income Fund
(‘‘Current Income Fund’’); (2)
WisdomTree Dreyfus Australian Dollar
Fund; (3) WisdomTree Dreyfus Brazilian
Real Fund; (4) WisdomTree Dreyfus
British Pound Sterling Fund; (5)
WisdomTree Dreyfus Canadian Dollar
Fund; (6) WisdomTree Dreyfus Chinese
Yuan Fund; (7) WisdomTree Dreyfus
Euro Fund; (8) WisdomTree Dreyfus
Indian Rupee Fund; (9) WisdomTree
Dreyfus Japanese Yen Fund; (10)
WisdomTree Dreyfus New Zealand
Dollar Fund; (11) WisdomTree Dreyfus
South African Rand Fund; and (12)
WisdomTree Dreyfus South Korean
Won Fund (‘‘International Currency
Income Funds,’’ and together with the
Current Income Fund, collectively, the
‘‘Funds’’). The text of the proposed rule
change is available at the Exchange, the
Commission’s Public Reference Room,
and https://www.nyse.com.
1 15
17 17
CFR 200.30–3(a)(12).
VerDate Aug<31>2005
16:59 Apr 18, 2008
2 17
Jkt 214001
PO 00000
U.S.C. 78s(b)(1).
CFR 240.19b–4.
Frm 00095
Fmt 4703
Sfmt 4703
21397
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. 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 Exchange proposes to list and
trade the Shares of the Funds pursuant
to NYSE Arca Equities Rule 8.600,
which governs the listing and trading of
Managed Fund Shares on the
Exchange.3 Each Fund will be an
actively managed exchange-traded fund.
The Shares will be offered by the Trust,
which was established as a Delaware
statutory trust on December 15, 2005
and is registered with the Commission
as an investment company.4
Description of the Funds and the Shares
WisdomTree Asset Management, Inc.
(‘‘WisdomTree Asset Management’’) is
the investment adviser to each Fund.5
The Exchange represents that
WisdomTree Asset Management is not
3 Managed Fund Shares are securities that: (1)
Represent an interest in a registered investment
company (‘‘Investment Company’’) organized as an
open-end management investment company or
similar entity, that invests in a portfolio of
securities selected by the Investment Company’s
investment adviser consistent with the Investment
Company’s investment objectives and policies; (2)
are issued in a specified aggregate minimum
number in return for a deposit of a specified
portfolio of securities and/or a cash amount with a
value equal to the next determined net asset value
(‘‘NAV’’); and (3) when aggregated in the same
specified minimum number, may be redeemed at a
holder’s request, which holder will be paid a
specified portfolio of securities and/or cash with a
value equal to the next determined NAV. See NYSE
Arca Equities Rule 8.600(c)(1) (defining Managed
Fund Shares). See also Securities Exchange Act
Release No. 57619 (April 4, 2008), 73 FR 19544
(April 10, 2008) (SR–NYSEArca–2008–25)
(approving, among other things, rules permitting
the listing and trading of Managed Fund Shares).
4 See Post-Effective Amendment No. 14 to
Registration Statement on Form N–1A for the Trust
(File Nos. 333–132380 and 811–21864)
(‘‘Registration Statement’’). The descriptions of the
Funds and the Shares contained herein are based
on information in the Registration Statement.
5 WisdomTree Investments, Inc. (‘‘WisdomTree
Investments’’) is the parent company of
WisdomTree Asset Management.
E:\FR\FM\21APN1.SGM
21APN1
]]>Agencies
[Federal Register Volume 73, Number 77 (Monday, April 21, 2008)]
[Notices]
[Pages 21395-21397]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-8584]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-57664; File No. SR-NSX-2008-09]
Self-Regulatory Organizations; National Stock Exchange, Inc.;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Amend NSX Rule 16.2(b) and the NSX BLADE\SM\ Fee and Rebate Schedule To
Reflect the Availability and Pricing of the Zero Display Reserve Order
Type Previously Approved by the Commission
April 15, 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 April 11, 2008, National Stock Exchange, Inc. (``NSX'' 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 substantially prepared by NSX. NSX
filed the proposal pursuant to Section 19(b)(3)(A)(ii) of the Act \3\
and Rule 19b-4(f)(2) \4\ thereunder, as establishing or changing a due,
fee, or other charges applicable to a member, which renders the
proposed rule change 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
NSX proposes to amend NSX Rule 16.2(b)(2) and the NSX BLADE\SM\ Fee
and Rebate Schedule (``Fee Schedule'') in order to reflect the
availability and pricing of the Zero Display Reserve Order \5\ type
previously approved by the Commission.\6\
---------------------------------------------------------------------------
\5\ As specified in NSX Rule 11.11(c)(2)(A).
\6\ See Securities Exchange Act Release No. 57311 (February 12,
2008), 73 FR 9148 (February 19, 2008) (SR-NSX-2008-03).
---------------------------------------------------------------------------
The text of the proposed rule change is available on the Exchange's
Web site at https://www.nsx.com, at the principal office of the
Exchange, 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 Exchange included statements
[[Page 21396]]
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 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
Description
With this rule change, the Exchange is proposing to amend NSX Rule
16.2(b)(2) and the NSX Fee Schedule to reflect the rollout of the Zero
Display Reserve Order \7\ type previously approved by the
Commission.\8\ Specifically, Zero Display Reserve Orders are proposed
to be excluded from the liquidity provider rebate structure payable to
ETP Holders \9\ in the Automatic Execution mode of order interaction
(``AutoEx'').\10\ Accordingly, ETP Holders will receive no rebate for
adding liquidity with Zero Display Reserve Orders in AutoEx. In
addition, in the Order Delivery \11\ mode of order interaction, Zero
Display Reserve Orders are proposed under NSX Rule 16.2(b)(2) and the
Fee Schedule to be ineligible for both liquidity provider rebates and
market data credits. Accordingly, ETP Holders will receive no rebate
for adding liquidity, and will receive no market data credits, with
respect to Zero Display Reserve Orders in Order Delivery. However, like
other order types, Zero Display Reserve Orders are subject to fees for
taking liquidity. This proposed fee and rebate structure applies to all
securities, regardless of price, which are Zero Display Reserve Orders.
---------------------------------------------------------------------------
\7\ See supra note 5.
\8\ See supra note 6.
\9\ An ETP Holder is a registered broker or dealer that has been
issued an Equity Trading Permit (``ETP'') by the NSX. An ETP Holder
will have the status of a ``member'' of the Exchange as that term is
defined in Section 3 of the Act.
\10\ As specified in NSX Rule 11.13(b)(1).
\11\ As specified in NSX Rule 11.13(b)(2).
---------------------------------------------------------------------------
The proposed fee and rebate structure with respect to the Zero
Display Reserve Order type is not discriminatory in that all ETP
Holders are eligible to submit both displayed orders and/or non-
displayed orders (i.e., Zero Display Reserve Orders) at their own
discretion.
The instant filing also proposes to add the words ``fee,''
``rebate'' and ``credit'' in several places, as applicable, in the Fee
Schedule for purposes of clarification. There are no other currently
proposed changes to Fee Schedule.
Rationale
The amended Fee Schedule is intended to encourage ETP Holders to
display orders on NSX. Because Zero Display Reserve Orders are not
displayed orders, the Exchange is proposing that orders of this type do
not receive any liquidity provider rebate or market data credit.
The Exchange has determined that this change is necessary for
competitive reasons. Under the proposed Fee Schedule, the fees paid by
a particular ETP Holder will continue to depend on a number of
variables, including the mode of order interaction (AutoEx or Order
Delivery), the types of securities traded through NSX BLADE\SM\ (Tapes
A, B or C), the average daily monthly liquidity providing volume, and
the price of the securities (with a distinction for those above and
below $1.00). The use of Zero Display Reserve Orders and the fees and
rebates they incur and accrue constitutes an additional variable which
ETP Holders may take into account in allocating order flow. NSX notes
that it operates in a highly competitive market in which market
participants can readily direct order flow to competing venues if they
deem fee levels at a particular venue to be more attractive.
Accordingly, the proposed modifications attempt to keep the fees
reflected in the Fee Schedule competitive with fees charged by other
venues and to continue to be reasonable and equitably allocated to
those ETP Holders that opt to direct orders to NSX. Based upon the
information above, the Exchange believes that the proposed rule change
is consistent with the protection of investors and the public interest.
Effective Date and Notice
The Exchange intends to implement the proposed Fee Schedule in
accordance with the proposed rule change on April 15, 2008. Pursuant to
NSX Rule 16.1(c), the Exchange will ``provide ETP Holders with notice
of all relevant dues, fees, assessments and charges of the Exchange''
through the issuance of a Regulatory Circular of the changes to the 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,\12\ in general, and
with Section 6(b)(4) of the Act,\13\ in particular, in that it provides
for the equitable allocation of reasonable dues, fees, and other
charges among its members and issuers and other persons using its
facilities. Moreover, the proposed fee and rebate structure with
respect to the Zero Display Reserve Order type is not discriminatory in
that all ETP Holders are eligible to submit displayed orders or utilize
the new Zero Display Reserve Order type and may do so at their
discretion.
---------------------------------------------------------------------------
\12\ 15 U.S.C. 78f(b).
\13\ 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 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 become effective upon filing
with the Commission pursuant to Section 19(b)(3)(A)(ii) of the Act \14\
and Rule 19b-4(f)(2) \15\ thereunder, because it establishes or changes
a due, fee, or other charge applicable only to a member.
---------------------------------------------------------------------------
\14\ 15 U.S.C. 78s(b)(3)(A)(ii).
\15\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
At any time within 60 days of the filing of the proposed rule
change, the Commission may summarily abrogate such rule change if it
appears to the Commission that such action is necessary or appropriate
in the public interest, for the protection of investors, or otherwise
in furtherance of the purposes of the Act.\16\
---------------------------------------------------------------------------
\16\ See 15 U.S.C. 78s(b)(3)(C).
---------------------------------------------------------------------------
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
[[Page 21397]]
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-NSX-2008-09 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-NSX-2008-09. 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 NSX. 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-NSX-2008-09 and should be
submitted on or before May 12, 2008.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\17\
---------------------------------------------------------------------------
\17\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8-8584 Filed 4-18-08; 8:45 am]
BILLING CODE 8010-01-P
