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 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 (http://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 http://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 http://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 (http:// 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 (http://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 (http://www.sec.gov/ rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for inspection and copying in the Commission’s Public Reference Room, 100 F Street, NE., Washington, DC 20549, on official business days between the hours of 10 a.m. and 3 p.m. Copies of such filing also will be available for inspection and copying at the principal office of 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 http://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]


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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 http://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 (http://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 (http://
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 (http://www.sec.gov/rules/
sro.shtml). Copies of the submission, all subsequent amendments, all 
written statements with respect to the proposed rule change that are 
filed with the Commission, and all written communications relating to 
the proposed rule change between the Commission and any person, other 
than those that may be withheld from the public in accordance with the 
provisions of 5 U.S.C. 552, will be available for inspection and 
copying in the Commission's Public Reference Room, 100 F Street, NE., 
Washington, DC 20549, on official business days between the hours of 10 
a.m. and 3 p.m. Copies of such filing also will be available for 
inspection and copying at the principal office of 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