Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Rule Change by NYSE Arca, Inc. Amending Its Schedule of Fees and Charges for Exchange Services in Order To Establish a New Fee for Electronically Executed Complex Orders, 53312-53314 [E8-21330]
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53312
Federal Register / Vol. 73, No. 179 / Monday, September 15, 2008 / Notices
(B) Institute proceedings to determine
whether the proposed rule change
should be disapproved.
The Exchange has requested
accelerated approval of this proposed
rule change prior to the 30th day after
the date of publication of the notice of
the filing thereof. The Commission is
considering granting accelerated
approval of the proposed rule change at
the end of a 15-day comment period.
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:
mstockstill on PROD1PC66 with NOTICES
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–2008–92 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–2008–92. 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 the 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
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20:22 Sep 12, 2008
Jkt 214001
you wish to make available publicly. All
submissions should refer to File
Number SR–NYSEArca–2008–92 and
should be submitted on or before
September 30, 2008.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.24
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–21329 Filed 9–12–08; 8:45 am]
of those 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 parts of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–58473; File No. SR–
NYSEArca–2008–97]
Self-Regulatory Organizations; Notice
of Filing and Immediate Effectiveness
of Rule Change by NYSE Arca, Inc.
Amending Its Schedule of Fees and
Charges for Exchange Services in
Order To Establish a New Fee for
Electronically Executed Complex
Orders
September 8, 2008.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that, on
September 5, 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, II, and III below, which Items
have been prepared by the self–
regulatory organization. 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 (‘‘Schedule’’) in
order to establish certain Transaction
Fees.
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
self-regulatory organization 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
24 17
CFR 200.30–3(a)(12).
U.S.C.78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
1 15
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1. Purpose
The purpose of this filing is to amend
the existing Schedule in order to create
a new fee structure covering
electronically executed Complex
Orders.4
Pursuant to a recent rule filing 5 the
Exchange will be introducing automated
complex order trading for all market
participants on NYSE Arca. In
conjunction with this new functionality,
the Exchange proposes to introduce two
new transaction fees specific to
Complex Order executions. Pursuant to
this proposal, electronically entered and
executed Complex Orders when
executed against similar contra-side
Complex Orders will be subject to a
reduced transaction fee.
Complex Orders that are executed
against other similar Complex Orders
will be subject to a transaction fee of
$0.10 per contract. For example, if a
Complex Order, comprised of two legs,
executes against a similar two-legged
Complex Order, each market participant
will be charged $0.20 ($0.10 per
contract). To expand on this example, if
the same strategy is executed a total of
ten (10) times, each participant would
be charged $2.00. If a Complex Order
comprised of three legs executes against
a similar three-legged Complex Order,
then each participant would be charged
$0.30 for the transaction. To expand on
this example, if the same three-legged
Complex Order is executed a total of ten
(10) times, each participant would be
changed $3.00. All electronically
executed Complex Orders, regardless of
whether they are entered by Market
Makers, Brokers Dealers, or OTP Firms
representing Public Customers, will be
billed this same rate when their order is
executed against another Complex
Order.
4 NYSE Arca Rule 6.62(e) defines a ‘‘Complex
Order’’ as any order involving the simultaneous
purchase and/or sale of two or more different
option series in the same underlying security, for
the same account, in a ratio that is equal to or
greater than one-to-three (.333) and less than or
equal to three-to-one (3.00) and for the purpose of
executing a particular investment strategy.
5 See Securities Exchange Act Release No. 58174
(July 16, 2008), 73 FR 42640 (July 22, 2008) (order
approving SR–NYSEArca–2008–54, establishing
rules pertaining to automated electronic trading of
Complex Orders).
E:\FR\FM\15SEN1.SGM
15SEN1
mstockstill on PROD1PC66 with NOTICES
Federal Register / Vol. 73, No. 179 / Monday, September 15, 2008 / Notices
The Exchange proposes a separate fee
for electronically executed Complex
Orders when the same member firm
represents both sides of the transaction.
Complex Orders, entered by a firm that
trade against a similar Complex Order
represented by the same firm, will be
subject to a transaction fee of $0.05 per
contract. For example, if a Complex
Order comprised of two legs is entered
by Firm A and executes against a similar
two-legged Complex Order also for Firm
A, the firm will be charged a total of
$0.20 (four contracts at $.05 per
contract) for each time the complex
order strategy is executed. To expand on
this example, if the same two-legged
Complex Order is executed a total of ten
(10) times, the transaction would be
subject to a $1.00 fee per Complex
Order, and since the same firm is a party
to both sides of the transaction, they
would be charged a total of $2.00. If a
Complex Order entered by Firm A,
which is comprised of three legs,
executes against a similar three-legged
Complex Order entered by Firm A, then
the firm would be charged a total of
$0.30 for each time the three-legged
Complex Order is executed. To expand
on this example, if the same threelegged Complex Order is executed a
total of ten (10) times, the transaction
would be subject to a $1.50 fee per
Complex Order, and since the firm
represents both sides of the transaction,
they would be charged a total of $3.00.
There may be occasions where a
Complex Order will not execute against
a similar contra-side Complex Order,
but instead will execute against the
individual leg markets represented by
quotes and/or orders in the
Consolidated Book. This scenario will
occur when the best price for the
Complex Order strategy is actually
represented by a combination of
individual quotes and/or orders, resting
in the Consolidated Book. In situations
where Complex Orders are executed
utilizing two or more individual quotes
or orders from the Consolidated Book,
standard transaction fees, as shown on
the Schedule, will apply to all
participants on the trade. For Complex
Order transactions in Penny Pilot issues,
when the Complex Order is executed
against individual quotes and/or orders
represented in the Consolidated Book,
the Complex Order will be deemed to be
taking liquidity from the Consolidated
Book and therefore will be subject to the
‘‘Take Liquidity’’ rates, as shown on the
Schedule.
NYSE Arca plans to implement these
fees in conjunction with the planned
introduction of the initial phase of
automated electronic Complex Order
trading on September 15, 2008.
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20:22 Sep 12, 2008
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53313
2. Statutory Basis
IV. Solicitation of Comments
The Exchange believes that the
proposed rule change is consistent with
the provisions of Section 6 of the Act,6
in general, and Section 6(b)(4) of the
Act,7 in particular, in that it is designed
to provide for the equitable allocation of
reasonable dues, fees, and other charges
among its members and other persons
using its facilities. in that it provides for
the equitable allocation of reasonable
dues, fees and other charges among its
members and other market participants
on NYSE Arca. [sic] The Exchange
believes that the proposed rates are
reasonable. The proposed rate structure
is part of the Exchange’s efforts to attract
and enhance participation on the
Exchange, with respect to the
implementation of electronic complex
order trading. The Exchange also
believes that the proposed changes to
the Fee Schedule are equitable in that
they apply uniformly to all market
participants on NYSE Arca.
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:
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 foregoing rule change is effective
upon filing pursuant to Section
19(b)(3)(A) 8 of the Act and
subparagraph (f)(2) of Rule 19b–4 9
thereunder, because it establishes a due,
fee, or other charge imposed by NYSE
Arca.
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.
6 15
U.S.C. 78f.
U.S.C. 78f(b)(4).
8 15 U.S.C. 78s(b)(3)(A).
9 17 CFR 240.19b–4(f)(2).
7 15
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Frm 00126
Fmt 4703
Sfmt 4703
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–2008–97 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–2008–97. 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 the filing will also be available
for inspection and copying at the
principal office of the self-regulatory
organization. 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–2008–97 and should be
submitted on or before October 6, 2008.
E:\FR\FM\15SEN1.SGM
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53314
Federal Register / Vol. 73, No. 179 / Monday, September 15, 2008 / Notices
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–21330 Filed 9–12–08; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–58474; File No. SR–
NYSEArca–2008–79]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Order Approving Proposed
Rule Change To List and Trade
ELEMENTSSM Linked to the CS/RT
Emerging Infrastructure Total Return
Index Powered by HOLTTM Due 2023
September 8, 2008.
I. Introduction
On July 22, 2008, NYSE Arca, Inc.
(‘‘Exchange’’ or ‘‘NYSE Arca’’), through
its wholly owned subsidiary, NYSE
Arca Equities, Inc. (‘‘NYSE Arca
Equities’’), filed with the Securities and
Exchange Commission (‘‘Commission’’)
pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2 a
proposed rule change to list and trade
the ELEMENTSTM Linked to the CS/RT
Emerging Infrastructure Total Return
Index Powered by HOLTTM due 2023.
The proposed rule change was
published for comment in the Federal
Register on August 7, 2008.3 The
Commission received no comment
letters on the proposed rule change.
This order approves the proposed rule
change.
II. Description of the Proposed Rule
Change
The Exchange proposed to list and
trade the ELEMENTSSM Linked to the
CS/RT Emerging Infrastructure Total
Return Index Powered by HOLTTM due
2023 (the ‘‘Notes’’), which are linked to
the CS/RT Emerging Infrastructure Total
Return Index Powered by HOLTTM (U.S.
dollar) (the ‘‘Index’’), under NYSE Arca
Equities Rule 5.2(j)(6), which includes
the Exchange’s listing standards for
Equity Index-Linked Securities.4 The
Notes are senior unsecured debt
10 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 See Securities Exchange Act Release No. 58276
(July 31, 2008), 73 FR 46126.
4 Equity Index-Linked Securities are securities
that provide for the payment at maturity of a cash
amount based on the performance of an underlying
index or indexes of equity securities (‘‘Equity
Reference Asset’’). See NYSE Arca Equities Rule
5.2(j)(6)(i).
mstockstill on PROD1PC66 with NOTICES
1 15
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20:22 Sep 12, 2008
Jkt 214001
obligations of Credit Suisse, acting
through its Nassau Branch (‘‘Credit
Suisse’’). The Index is comprised of 50
equally-weighted exchange-listed
emerging infrastructure-related
companies that are chosen according to
a rules-based methodology for scoring
stocks (each an ‘‘Index Component’’
and, collectively, the ‘‘Index
Components’’). The Index enables
investors to participate in the
performance of a selection of companies
that have a focus on infrastructure,
power and utilities, or agriculture and
derive at least 15% of their revenue
from the Global Emerging Markets
(‘‘GEM’’). A GEM is defined as any
country except the United States,
Canada, Australia, New Zealand, Japan,
Hong Kong, Singapore, Austria,
Belgium, Luxembourg, Denmark,
Finland, France, Germany, Greece,
Ireland, Italy, the Netherlands, Norway,
Portugal, Spain, Sweden, and the
United Kingdom.5
The Exchange submitted the proposed
rule change because the Index does not
meet all of the ‘‘generic’’ listing
requirements of NYSE Arca Equities
Rule 5.2(j)(6) applicable to the listing of
Equity Index-Linked Securities.
Specifically, the Index meets all such
requirements except for those set forth
in NYSE Arca Equities Rule
5.2(j)(6)(B)(I)(1)(b)(v).6 The Exchange
represented that: (1) Except for NYSE
Arca Equities Rule 5.2(j)(6)(B)(I)(1)(b)(v),
5 The Exchange stated that detailed descriptions
of the Notes, the Index (including the methodology
used to determine the composition of the Index),
fees, redemption procedures and payment at
redemption, payment at maturity, taxes, and risk
factors relating to the Notes are available in the
prospectus or on the Web site for the Notes
(https://www.credit-suisse.com), as applicable. See
Credit Suisse’s prospectus, as amended, filed
pursuant to Rule 424(b)(2) under the Act (File No.
333–132936–14).
6 NYSE Arca Equities Rule 5.2(j)(6)(B)(I)(1)(b)(v)
provides that all component securities of the
underlying index shall be either (A) securities
(other than foreign country securities and American
Depository Receipts (‘‘ADRs’’)) that are (x) issued by
an Act reporting company or by an investment
company registered under the Investment Company
Act of 1940, which, in each case, are listed on a
national securities exchange, and (y) an ‘‘NMS
stock’’ (as defined in Rule 600 of Regulation NMS)
or (B) foreign country securities or ADRs, provided
that foreign country securities or foreign country
securities underlying ADRs having their primary
trading market outside the United States on foreign
trading markets that are not members of the
Intermarket Surveillance Group (‘‘ISG’’) or parties
to comprehensive surveillance sharing agreements
with the Exchange will not in the aggregate
represent more than 20% of the dollar weight of the
index. See Securities Exchange Act Release No.
58376 (August 18, 2008), 73 FR 49726 (August 22,
2008) (SR–NYSEArca–2008–70) (approving certain
amendments to NYSE Arca Equities Rule
5.2(j)(6)(B)(I) and, as a result, renumbering NYSE
Arca Equities Rule 5.2(j)(6)(B)(I)(1)(b)(vi) to NYSE
Arca Equities Rule 5.2(j)(6)(B)(I)(1)(b)(v), among
other subsections).
PO 00000
Frm 00127
Fmt 4703
Sfmt 4703
the Notes currently satisfy all of the
generic listing standards under NYSE
Arca Equities Rule 5.2(j)(6) applicable to
Equity Index-Linked Securities; (2) the
continued listing standards under NYSE
Arca Equities Rule 5.2(j)(6) applicable to
Equity Index-Linked Securities shall
apply to the Notes; and (3) Credit Suisse
is required to comply with Rule 10A–3
under the Act 7 for the initial and
continued listing of the Notes. In
addition, the Exchange represented that
the Notes will comply with all other
requirements applicable to Equity
Index-Linked Securities including, but
not limited to, requirements relating to
the dissemination of key information
such as the Equity Reference Asset
value, rules and policies governing the
trading of equity securities, trading
hours, trading halts, surveillance,
firewalls, and Information Bulletins to
ETP Holders, as set forth in prior
Commission orders approving the
generic listing rules applicable to the
listing and trading of Index-Linked
Securities, generally, and Equity IndexLinked Securities, in particular.8
The Exchange stated that, as of April
30, 2008, the market capitalization of
the ten largest Index Components
accounting for the top 20% of the Index
weight was approximately $873.9
billion. The highest weighted stock was
Vodafone Group PLC, which accounted
for 2% of the Index weight and had a
market capitalization of approximately
$209.6 billion.
With respect to NYSE Arca Equities
Rule 5.2(j)(6)(B)(I)(1)(b)(v), which
requires that at least 80% of the
component stock trade on markets that
are members of ISG or parties to
comprehensive surveillance sharing
agreements with the Exchange, the
Exchange represented that it has
attempted, but was unable, to enter into
comprehensive surveillance sharing
agreements with markets on which
approximately 36% of the Index
Components trade. Specifically, the
Exchange does not have comprehensive
surveillance sharing agreements with
Euronext Amsterdam (2%), Euronext
Lisbon (2%), Euronext Paris (6%), JSE
Securities Exchange (Johannesburg)
(6%), Borsa Italiana (Milan) (4%),
Prague Stock Exchange (2%), Bovespa
˜
(State of Sao Paulo Stock Exchange)
7 17
CFR 240.10A–3.
e.g., Securities Exchange Act Release Nos.
52204 (August 3, 2005), 70 FR 46559 (August 10,
2005) (SR–PCX–2005–63); 56637 (October 10,
2007), 72 FR 58704 (October 16, 2007) (SR–
NYSEArca–2007–92); 56838 (November 26, 2007),
72 FR 67774 (November 30, 2007) (SR–NYSEArca–
2007–118); 56879 (December 3, 2007), 72 FR 69271
(December 7, 2007) (SR–NYSEArca–2007–110); and
57132 (January 11, 2008), 73 FR 3300 (January 17,
2008) (SR–NYSEArca–2007–125).
8 See,
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]]>Agencies
[Federal Register Volume 73, Number 179 (Monday, September 15, 2008)]
[Notices]
[Pages 53312-53314]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-21330]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-58473; File No. SR-NYSEArca-2008-97]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Rule Change by NYSE Arca, Inc. Amending Its Schedule
of Fees and Charges for Exchange Services in Order To Establish a New
Fee for Electronically Executed Complex Orders
September 8, 2008.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby
given that, on September 5, 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, II,
and III below, which Items have been prepared by the self-regulatory
organization. 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\ 15 U.S.C. 78a.
\3\ 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 (``Schedule'') in order to establish certain
Transaction Fees.
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 self-regulatory organization
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 those 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 parts of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The purpose of this filing is to amend the existing Schedule in
order to create a new fee structure covering electronically executed
Complex Orders.\4\
---------------------------------------------------------------------------
\4\ NYSE Arca Rule 6.62(e) defines a ``Complex Order'' as any
order involving the simultaneous purchase and/or sale of two or more
different option series in the same underlying security, for the
same account, in a ratio that is equal to or greater than one-to-
three (.333) and less than or equal to three-to-one (3.00) and for
the purpose of executing a particular investment strategy.
---------------------------------------------------------------------------
Pursuant to a recent rule filing \5\ the Exchange will be
introducing automated complex order trading for all market participants
on NYSE Arca. In conjunction with this new functionality, the Exchange
proposes to introduce two new transaction fees specific to Complex
Order executions. Pursuant to this proposal, electronically entered and
executed Complex Orders when executed against similar contra-side
Complex Orders will be subject to a reduced transaction fee.
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 58174 (July 16,
2008), 73 FR 42640 (July 22, 2008) (order approving SR-NYSEArca-
2008-54, establishing rules pertaining to automated electronic
trading of Complex Orders).
---------------------------------------------------------------------------
Complex Orders that are executed against other similar Complex
Orders will be subject to a transaction fee of $0.10 per contract. For
example, if a Complex Order, comprised of two legs, executes against a
similar two-legged Complex Order, each market participant will be
charged $0.20 ($0.10 per contract). To expand on this example, if the
same strategy is executed a total of ten (10) times, each participant
would be charged $2.00. If a Complex Order comprised of three legs
executes against a similar three-legged Complex Order, then each
participant would be charged $0.30 for the transaction. To expand on
this example, if the same three-legged Complex Order is executed a
total of ten (10) times, each participant would be changed $3.00. All
electronically executed Complex Orders, regardless of whether they are
entered by Market Makers, Brokers Dealers, or OTP Firms representing
Public Customers, will be billed this same rate when their order is
executed against another Complex Order.
[[Page 53313]]
The Exchange proposes a separate fee for electronically executed
Complex Orders when the same member firm represents both sides of the
transaction. Complex Orders, entered by a firm that trade against a
similar Complex Order represented by the same firm, will be subject to
a transaction fee of $0.05 per contract. For example, if a Complex
Order comprised of two legs is entered by Firm A and executes against a
similar two-legged Complex Order also for Firm A, the firm will be
charged a total of $0.20 (four contracts at $.05 per contract) for each
time the complex order strategy is executed. To expand on this example,
if the same two-legged Complex Order is executed a total of ten (10)
times, the transaction would be subject to a $1.00 fee per Complex
Order, and since the same firm is a party to both sides of the
transaction, they would be charged a total of $2.00. If a Complex Order
entered by Firm A, which is comprised of three legs, executes against a
similar three-legged Complex Order entered by Firm A, then the firm
would be charged a total of $0.30 for each time the three-legged
Complex Order is executed. To expand on this example, if the same
three-legged Complex Order is executed a total of ten (10) times, the
transaction would be subject to a $1.50 fee per Complex Order, and
since the firm represents both sides of the transaction, they would be
charged a total of $3.00.
There may be occasions where a Complex Order will not execute
against a similar contra-side Complex Order, but instead will execute
against the individual leg markets represented by quotes and/or orders
in the Consolidated Book. This scenario will occur when the best price
for the Complex Order strategy is actually represented by a combination
of individual quotes and/or orders, resting in the Consolidated Book.
In situations where Complex Orders are executed utilizing two or more
individual quotes or orders from the Consolidated Book, standard
transaction fees, as shown on the Schedule, will apply to all
participants on the trade. For Complex Order transactions in Penny
Pilot issues, when the Complex Order is executed against individual
quotes and/or orders represented in the Consolidated Book, the Complex
Order will be deemed to be taking liquidity from the Consolidated Book
and therefore will be subject to the ``Take Liquidity'' rates, as shown
on the Schedule.
NYSE Arca plans to implement these fees in conjunction with the
planned introduction of the initial phase of automated electronic
Complex Order trading on September 15, 2008.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the provisions of Section 6 of the Act,\6\ in general, and Section
6(b)(4) of the Act,\7\ in particular, in that it is designed to provide
for the equitable allocation of reasonable dues, fees, and other
charges among its members and other persons using its facilities. in
that it provides for the equitable allocation of reasonable dues, fees
and other charges among its members and other market participants on
NYSE Arca. [sic] The Exchange believes that the proposed rates are
reasonable. The proposed rate structure is part of the Exchange's
efforts to attract and enhance participation on the Exchange, with
respect to the implementation of electronic complex order trading. The
Exchange also believes that the proposed changes to the Fee Schedule
are equitable in that they apply uniformly to all market participants
on NYSE Arca.
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\6\ 15 U.S.C. 78f.
\7\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any 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 foregoing rule change is effective upon filing pursuant to
Section 19(b)(3)(A) \8\ of the Act and subparagraph (f)(2) of Rule 19b-
4 \9\ thereunder, because it establishes a due, fee, or other charge
imposed by NYSE Arca.
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\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 17 CFR 240.19b-4(f)(2).
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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 rule-comments@sec.gov. Please include
File Number SR-NYSEArca-2008-97 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-2008-97. 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 the filing will also be available for
inspection and copying at the principal office of the self-regulatory
organization. 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-2008-97 and should be submitted on or before October 6, 2008.
[[Page 53314]]
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
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\10\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-21330 Filed 9-12-08; 8:45 am]
BILLING CODE 8010-01-P
