Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Its Schedule of Fees and Charges for Exchange Services in Order To Extend the Current Pilot Program Regarding Transaction Fees Charged for Trades Executed Through the Intermarket Options Linkage, 38482-38483 [E8-15213]
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38482
Federal Register / Vol. 73, No. 130 / Monday, July 7, 2008 / Notices
11.1(b) would be eligible for MRP
disposition.
Rule 11.18—Supervision
The current language of Rule 11.18(b)
provides that only OTP Holders and
firms for whom the Exchange is the
Designated Examining Authority
(‘‘DEA’’) are subject to its supervisory
requirements. The Exchange proposed
to amend Rule 11.18 to provide that all
OTP Holders and firms, regardless of
DEA, are subject to the Exchange’s
supervisory requirements. The
Exchange also proposed to make
violations of Rule 11.18 eligible for MRP
disposition.
Rule 10.12—Minor Rule Plan
The Exchange proposed to make
several modifications to its MRP,
including to:
• Make several trading and
recordkeeping rules eligible for MRP
disposition.5
• Modify the Recommended Fine
Schedule in Rule 10.12(k) so that MRP
fines are based not on the number of
violations but on the number of times
the Exchange has imposed one or more
MRP fines upon an OTP Holder or firm
for the violation of a particular rule.
• Enable the Exchange to require that
violators of Rules 6.94(a) and (c) 6 not
only pay the MRP fines for their
violations, but also disgorge any
quantifiable monetary gains attributable
to these violations;
• Allow Exchange enforcement staff,
as part of an MRP disposition of certain
supervisory-related offenses, not only to
impose a monetary fine, but also to
require the violator to make specified
changes to its supervisory or other
compliance procedures; and
• Enable the Exchange to require
violators of Rule 2.23 (Registration) to
remit all the fees that they should have
paid in connection with registration, in
addition to any MRP fines.
III. Discussion
mstockstill on PROD1PC66 with NOTICES
The Commission finds that the
proposed rule change is consistent with
the requirements of the Act and the
rules and regulations thereunder
applicable to a national securities
exchange.7 In particular, the
Commission believes that the proposed
rule change relating to both the MRP
5 See Notice, 73 FR at 30180, for a detailed
description of these additions.
6 Rules 6.94(a) and (c) require OTP Holders to
avoid violations of its trade-through rules and,
where such violation is unavoidable, to provide
satisfaction orders.
7 In approving this proposal, the Commission has
considered its impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
VerDate Aug<31>2005
17:39 Jul 03, 2008
Jkt 214001
and the related underlying rules is
consistent with Section 6(b)(5) of the
Act,8 which requires that the rules of an
exchange be designed to promote just
and equitable principles of trade, to
remove impediments to and to perfect
the mechanism of a free and open
market and a national market system,
and, in general, to protect investors and
the public interest.
The Commission further believes that
the proposed changes to the Exchange’s
MRP are consistent with Sections 6(b)(1)
and 6(b)(6) of the Act,9 which require
that the rules of an exchange enforce
compliance with, and provide
appropriate discipline for, violations of
Commission and Exchange rules. In
addition, because the MRP provides
procedural rights to contest the fine and
permits disciplinary proceedings on the
matter, the Commission believes that
the MRP, as amended by this proposal,
provides a fair procedure for the
disciplining of members and persons
associated with members, consistent
with Sections 6(b)(7) and 6(d)(1) of the
Act.10 Finally, the Commission finds
that the proposal is consistent with the
public interest, the protection of
investors, or otherwise in furtherance of
the purposes of the Act, as required by
Rule 19d–1(c)(2) under the Act,11 which
governs minor rule violation plans. The
Commission believes that the proposed
rule change would strengthen the
Exchange’s ability to carry out its
oversight and enforcement
responsibilities as a self-regulatory
organization in cases where full
disciplinary proceedings are unsuitable
in view of the minor nature of the
particular violation.
In approving this proposed rule
change, the Commission in no way
minimizes the importance of
compliance with NYSE Arca rules and
all other rules subject to the imposition
of fines under the MRP. The
Commission believes that the violation
of any self-regulatory organization’s
rules, as well as Commission rules, is a
serious matter. However, the Exchange
provides a reasonable means of
addressing rule violations that do not
rise to the level of requiring formal
disciplinary proceedings, while
providing greater flexibility in handling
certain violations. The Commission
expects that the Exchange would
continue to conduct surveillance with
due diligence and make a determination
based on its findings, on a case-by-case
basis, whether a fine of more or less
PO 00000
than the recommended amount is
appropriate for MRP disposition or
whether a violation requires formal
disciplinary action.
III. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act 12 and Rule
19d–1(c)(2) under the Act 13 that the
proposed rule change (SR–NYSEArca–
2008–49) be, and it hereby is, approved
and declared effective.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–15197 Filed 7–3–08; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–58056; File No. SR–
NYSEArca–2008–67]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend Its Schedule of
Fees and Charges for Exchange
Services in Order To Extend the
Current Pilot Program Regarding
Transaction Fees Charged for Trades
Executed Through the Intermarket
Options Linkage
June 30, 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 June 24,
2008, NYSE Arca, Inc. (‘‘NYSE Arca’’ or
‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I, II, and
III below, which Items have been
prepared substantially 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 amend its
Schedule of Fees and Charges for
Exchange Services in order to extend
until July 31, 2009 the current pilot
program regarding transaction fees
12 15
U.S.C. 78s(b)(2).
CFR 240.19d–1(c)(2).
14 17 CFR 200.30–3(a)(12) and 17 CFR 200.30–
3(a)(44).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
13 17
8 15
U.S.C. 78f(b)(5).
U.S.C. 78f(b)(1) and 78f(b)(6).
10 15 U.S.C. 78f(b)(7) and 78f(d)(1).
11 17 CFR 240.19d–1(c)(2).
9 15
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Federal Register / Vol. 73, No. 130 / Monday, July 7, 2008 / Notices
charged for trades executed through the
intermarket options linkage (‘‘Linkage’’).
The text of the proposed rule change is
available at https://www.nyse.com, the
Exchange, and the Commission’s Public
Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of, and basis for,
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. 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 proposed rule
change is to extend for one year the
pilot program establishing an NYSE
Arca fee for Principal (‘‘P’’) Orders and
Principal Acting as Agent (‘‘P/A’’)
Orders executed through Linkage. The
fee currently is effective for a pilot
program set to expire on July 31, 2008,
and this filing would extend the fee
through July 31, 2009. The fee that
NYSE Arca charges for P and P/A orders
is the basic execution fee for trading on
NYSE Arca. This is the same fee that all
NYSE Arca Option Trading Permit
Holders pay for non-customer
transactions executed on the Exchange.
The Exchange does not charge for the
execution of Satisfaction Orders sent
through Linkage and is not proposing to
charge for such orders. The Exchange is
making no substantive changes to the
operation of the pilot program, other
than extending the pilot program
through July 31, 2009.
mstockstill on PROD1PC66 with NOTICES
2. Statutory Basis
The Exchange believes that the
proposal is consistent with Section 6(b)
of the Act,3 in general, and Section
6(b)(4),4 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 P
and P/A orders through Linkage.
3 15
4 15
U.S.C. 78f(b).
U.S.C. 78f(b)(4).
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18:42 Jul 03, 2008
Jkt 214001
B. Self-Regulatory Organization’s
Statement on Burden on Competition
38483
Electronic Comments
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
• 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–2008–67 on the
subject line.
Paper Comments
No written comments were solicited
or received with respect to the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The Exchange has filed the proposed
rule change pursuant to Section
19(b)(3)(A)(iii) of the Act 5 and Rule
19b–4(f)(6) thereunder.6 Because the
proposed rule change does not: (i)
Significantly affect the protection of
investors or the public interest; (ii)
impose any significant burden on
competition; and (iii) become operative
prior to 30 days from the date on which
it was filed, or such shorter time as the
Commission may designate, if
consistent with the protection of
investors and the public interest, the
proposed rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act 7 and Rule 19b–4(f)(6) 8
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:
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
7 15 U.S.C. 78s(b)(3)(A).
8 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires the Exchange to give the
Commission written notice of the Exchange’s intent
to file the proposed rule change along with a brief
description and text of the proposed rule change,
at least five business days prior to the date of filing
of the proposed rule change, or such shorter time
as designated by the Commission. The Exchange
has satisfied the pre-filing requirement.
PO 00000
5 15
6 17
Frm 00095
Fmt 4703
Sfmt 4703
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street, NE.,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–NYSEArca–2008–67. 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 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–2008–67 and should be
submitted on or before July 28, 2008.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.9
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–15213 Filed 7–3–08; 8:45 am]
BILLING CODE 8010–01–P
9 17
E:\FR\FM\07JYN1.SGM
CFR 200.30–3(a)(12).
07JYN1
]]>Agencies
[Federal Register Volume 73, Number 130 (Monday, July 7, 2008)]
[Notices]
[Pages 38482-38483]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-15213]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-58056; File No. SR-NYSEArca-2008-67]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Amend Its
Schedule of Fees and Charges for Exchange Services in Order To Extend
the Current Pilot Program Regarding Transaction Fees Charged for Trades
Executed Through the Intermarket Options Linkage
June 30, 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 June 24, 2008, NYSE Arca, Inc. (``NYSE Arca'' or ``Exchange'') filed
with the Securities and Exchange Commission (``Commission'') the
proposed rule change as described in Items I, II, and III below, which
Items have been prepared substantially by the Exchange. 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.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend its Schedule of Fees and Charges for
Exchange Services in order to extend until July 31, 2009 the current
pilot program regarding transaction fees
[[Page 38483]]
charged for trades executed through the intermarket options linkage
(``Linkage''). The text of the proposed rule change is available at
https://www.nyse.com, the Exchange, and the Commission's Public
Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of, and basis for, the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. 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 proposed rule change is to extend for one year
the pilot program establishing an NYSE Arca fee for Principal (``P'')
Orders and Principal Acting as Agent (``P/A'') Orders executed through
Linkage. The fee currently is effective for a pilot program set to
expire on July 31, 2008, and this filing would extend the fee through
July 31, 2009. The fee that NYSE Arca charges for P and P/A orders is
the basic execution fee for trading on NYSE Arca. This is the same fee
that all NYSE Arca Option Trading Permit Holders pay for non-customer
transactions executed on the Exchange. The Exchange does not charge for
the execution of Satisfaction Orders sent through Linkage and is not
proposing to charge for such orders. The Exchange is making no
substantive changes to the operation of the pilot program, other than
extending the pilot program through July 31, 2009.
2. Statutory Basis
The Exchange believes that the proposal is consistent with Section
6(b) of the Act,\3\ in general, and Section 6(b)(4),\4\ 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 P and P/A orders through
Linkage.
---------------------------------------------------------------------------
\3\ 15 U.S.C. 78f(b).
\4\ 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
No written comments were solicited or received with respect to the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \5\ and Rule 19b-4(f)(6) thereunder.\6\
Because the proposed rule change does not: (i) Significantly affect the
protection of investors or the public interest; (ii) impose any
significant burden on competition; and (iii) become operative prior to
30 days from the date on which it was filed, or such shorter time as
the Commission may designate, if consistent with the protection of
investors and the public interest, the proposed rule change has become
effective pursuant to Section 19(b)(3)(A) of the Act \7\ and Rule 19b-
4(f)(6) \8\ 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.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78s(b)(3)(A)(iii).
\6\ 17 CFR 240.19b-4(f)(6).
\7\ 15 U.S.C. 78s(b)(3)(A).
\8\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires the Exchange to give the Commission written notice of the
Exchange's intent to file the proposed rule change along with a
brief description and text of the proposed rule change, at least
five business days prior to the date of filing of the proposed rule
change, or such shorter time as designated by the Commission. The
Exchange has satisfied the pre-filing requirement.
---------------------------------------------------------------------------
IV. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://
www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-NYSEArca-2008-67 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street, NE., Washington, DC 20549-1090.
All submissions should refer to File Number SR-NYSEArca-2008-67. 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 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-2008-67 and should be submitted on or before
July 28, 2008.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
---------------------------------------------------------------------------
\9\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-15213 Filed 7-3-08; 8:45 am]
BILLING CODE 8010-01-P
