Self-Regulatory Organizations; National Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Exchange Rule 16 and NSX Fee Schedule Concerning Liquidity-Adding Rebates and Market Data Credits for Order Delivery Transactions, 60377-60378 [E8-24118]
Download as PDF
Federal Register / Vol. 73, No. 198 / Friday, October 10, 2008 / Notices
you wish to make available publicly. All
submissions should refer to File
Number SR–Phlx–2008–67 and should
be submitted on or before October 31,
2008.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–24119 Filed 10–9–08; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–58731; File No. SR–NSX–
2008–17]
Self-Regulatory Organizations;
National Stock Exchange, Inc.; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change To Amend
Exchange Rule 16 and NSX Fee
Schedule Concerning Liquidity—
Adding Rebates and Market Data
Credits for Order Delivery
Transactions
October 3, 2008.
mstockstill on PROD1PC66 with NOTICES
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’)1 and Rule 19b–4 thereunder,2
notice is hereby given that on
September 22, 2008, National Stock
Exchange, Inc. (‘‘NSX’’ or the
‘‘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 by the Exchange. The
Commission is publishing this notice to
solicit comment on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
National Stock Exchange, Inc. (‘‘NSX’’
or ‘‘Exchange’’) is proposing to amend
Exchange Rule 16 and the NSX Fee and
Rebate Schedule (the ‘‘Fee Schedule’’)
in order to (i) reduce the rebate for
adding liquidity in Order Delivery mode
of order interaction for those securities
trading at one dollar or more and (ii)
eliminate the trade and quote market
data revenue credit in Order Delivery
mode for all Tape A securities.
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.
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
20:11 Oct 09, 2008
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
Purpose
With this rule change, the Exchange is
proposing to reduce the liquidity adding
rebates and market data revenue credits
in Order Delivery mode of order
interaction (‘‘Order Delivery Mode’’).3
In particular, this rule change proposes
to reduce the rebate for adding liquidity
in securities trading at or above one
dollar in Order Delivery Mode to a flat
rebate of $0.0023 per share executed for
Tape A, and to $0.0025 per share
executed for Tapes B and C. In addition,
the Exchange is proposing to eliminate
the trade and quote market data revenue
credit for all Tape A securities executed
in Order Delivery Mode.
Reduction of Rebate for Adding
Liquidity in Order Delivery Mode
With respect to securities traded at
one dollar or more in Order Delivery
Mode, the instant filing proposes
simplifying the Fee Schedule by
reducing the per share executed rebate
to a flat rate of $0.0023 for Tape A
securities and to $0.0025 for Tapes B
and C securities. Currently, the per
share rebate for adding liquidity across
all tapes in Order Delivery Mode for
securities executed at one dollar or more
is $0.0027 if ‘‘Executed ADV’’ is equal
to or greater than 60 million, and
$0.0026 if ‘‘Executed ADV’’ is less than
60 million. As set forth in explanatory
endnote number 6 to the Fee Schedule
(which endnote is proposed to be
deleted as no longer necessary),
‘‘Executed ADV’’ means, with respect to
an ETP Holder, ‘‘the number of shares
such ETP Holder has executed on
average per trading day (excluding
partial trading days and securities under
3 This rule change proposes no changes to the fees
and rebates applicable to securities executed in the
Automatic Execution (‘‘Auto Ex’’) mode of order
interaction under NSX Rule 16.2(b)(1).
13 17
VerDate Aug<31>2005
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 parts of such
statements.
Jkt 217001
PO 00000
Frm 00150
Fmt 4703
Sfmt 4703
60377
one dollar) across all tapes on NSX for
the calendar month in which the
executions occurred.’’ The instant filing
proposes to simplify the Fee Schedule
by eliminating the tiered rebate
structure in Order Delivery Mode based
on ‘‘Executed ADV’’ and replacing it
with a flat fee based solely on whether
the security is Tape A, B or C. The
instant filing will affect the calculation
of the ‘‘Executed ADV’’ for the month of
September, 2008. Accordingly, the
‘‘Executed ADV’’ will be calculated
based on the average per trading day
(excluding partial trading days and
securities under one dollar) across all
tapes on NSX for the period beginning
September 1, 2008 and ending
September 22, 2008, the period when
the old Fee Schedule (prior to the
instant modification) was in effect.
Notice will be provided to ETP Holders
respecting the calculation of the
Executed ADV.
The instant rule filing proposes no
changes to the liquidity adding rebates
applicable to securities trading at less
than one dollar in Order Delivery
Mode.4
Elimination of Market Data Revenue
Credit for Tape A Securities in Order
Delivery Mode
With respect to Tape A securities in
Order Delivery Mode, the instant filing
proposes to eliminate the market data
revenue credit in both trades and
quotes. Currently in Order Delivery
Mode, ETP Holders receive a credit of
50% of both trade and quote market
data revenues across all tapes. This
credit is proposed to be eliminated for
all Tape A securities in Order Delivery
Mode, regardless of price.
No Changes to Auto Ex
For purposes of clarity, the proposed
rule change proposes no modifications
to the fees and rebates relating to any
trades in Auto Ex.
Rationale
The Exchange has determined that
these changes are necessary to increase
the revenue of the Exchange and to
adequately fund its regulatory and
general business functions. The
proposed modification is reasonable and
equitably allocated to those ETP Holders
that opt to provide liquidity in Order
Delivery Mode, and is not
discriminatory because ETP Holders are
free to elect whether to send orders in
4 Securities which trade under one dollar in
Order Delivery Mode and which add liquidity
currently receive a rebate of 0.10% of the trade
value, where ‘‘trade value’’ means a dollar amount
equal to the price per share multiplied by the
number of shares executed.
E:\FR\FM\10OCN1.SGM
10OCN1
60378
Federal Register / Vol. 73, No. 198 / Friday, October 10, 2008 / Notices
all tapes through the Order Delivery
Mode, through Auto Ex, and as liquidity
providing trades and quotes. Based
upon the information above, the
Exchange believes that the proposed
rule change is consistent with the
protection of investors and the public
interest.
Operative Date and Notice
The Exchange intends to make the
proposed credit and rebate structure
effective on filing of this proposed rule
for trading on September 23, 2008.
Pursuant to Exchange 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).
Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the provisions of Section 6(b) of the
Act,5 in general, and Section 6(b)(4) of
the Act,6 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 the facilities of the
Exchange. Moreover, the proposed fee
and rebate structure is not
discriminatory in that all ETP Holders
are eligible to submit (or not submit)
liquidity adding trades and quotes in
Order Delivery Mode in all tapes and
may do so at their discretion.
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.
mstockstill on PROD1PC66 with NOTICES
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 proposed rule change has taken
effect upon filing pursuant to Section
19(b)(3)(A)(ii) of the Act 7 and
subparagraph (f)(2) of Rule 19b–4 8
thereunder, because, as provided in
5 15
U.S.C. 78f(b).
U.S.C. 78f(b)(4).
7 15 U.S.C. 78s(b)(3)(A)(ii).
8 17 CFR 240.19b–4 [sic].
6 15
VerDate Aug<31>2005
20:11 Oct 09, 2008
Jkt 217001
(f)(2), it ‘‘changes a due, fee or other
charge imposed by the Exchange
applicable only to a member’’ (known
on the Exchange as an ETP Holder). At
any time within sixty (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:
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–NSX–2008–17 on the
subject line.
information from submissions. You
should submit only information that
you wish to make available publicly. All
submissions should refer to File
Number SR–NSX–2008–17 and should
be submitted on or before October 31,
2008.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.9
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–24118 Filed 10–9–08; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–58741; File No. SR–NYSE–
2008–97]
Self-Regulatory Organizations; Notice
of Filing of Proposed Rule Change by
New York Stock Exchange LLC To
Adopt an Initial Listing Standard
Applicable Only to Companies
Transferring From NYSE Arca
October 6, 2008.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (the
Paper Comments
‘‘Act’’),2 and Rule 19b–4 thereunder,3
notice is hereby given that on October
• Send paper comments in triplicate
1, 2008, New York Stock Exchange LLC
to Secretary, Securities and Exchange
(the ‘‘NYSE’’ or the ‘‘Exchange’’) filed
Commission, 100 F Street, NE.,
with the Securities and Exchange
Washington, DC 20549–1090.
Commission the proposed rule changes
All submissions should refer to File
as described in Items I, II and III below,
Number SR–NSX–2008–17. This file
which items have been prepared by the
number should be included on the
subject line if e-mail is used. To help the Exchange. The Commission is
publishing this notice to solicit
Commission process and review your
comments on the proposed rule changes
comments more efficiently, please use
only one method. The Commission will from interested persons.
post all comments on the Commission’s I. Self-Regulatory Organization’s
Internet Web site (https://www.sec.gov/
Statement of the Terms of Substance of
rules/sro.shtml). Copies of the
the Proposed Rule Change
submission, all subsequent
The Exchange proposes to amend
amendments, all written statements
Section 102.01C of the Exchange’s
with respect to the proposed rule
Listed Company Manual (the ‘‘Manual’’)
change that are filed with the
to adopt an initial listing standard that
Commission, and all written
will be applicable only to companies
communications relating to the
that are listed on NYSE Arca, Inc.
proposed rule change between the
Commission and any person, other than (‘‘NYSE Arca’’) as of October 1, 2008
and that transfer to the Exchange on or
those that may be withheld from the
before March 31, 2009. The Exchange
public in accordance with the
also proposes to apply the continued
provisions of 5 U.S.C. 552, will be
listing standard applicable under
available for inspection and copying in
Section 802.01B to companies listed
the Commission’s Public Reference
under the Earnings Test to companies
Room, 100 F Street, NE., Washington,
listed under the proposed new initial
DC 20549, on official business days
4
between the hours of 10 a.m. and 3 p.m. listing standard.
Copies of such filing also will be
9 17 CFR 200.30–3(a)(12).
available for inspection and copying at
1 15 U.S.C. 78s(b)(1).
the principal office of the Exchange. All
2 15 U.S.C. 78a.
comments received will be posted
3 17 CFR 240.19b–4.
without change; the Commission does
4 The Commission notes that NYSE is also
proposing to adopt a new initial listing standard for
not edit personal identifying
PO 00000
Frm 00151
Fmt 4703
Sfmt 4703
E:\FR\FM\10OCN1.SGM
10OCN1
Agencies
[Federal Register Volume 73, Number 198 (Friday, October 10, 2008)]
[Notices]
[Pages 60377-60378]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-24118]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-58731; File No. SR-NSX-2008-17]
Self-Regulatory Organizations; National Stock Exchange, Inc.;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Amend Exchange Rule 16 and NSX Fee Schedule Concerning Liquidity--
Adding Rebates and Market Data Credits for Order Delivery Transactions
October 3, 2008.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act'')\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on September 22, 2008, National Stock Exchange, Inc. (``NSX'' or
the ``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 by the Exchange. The
Commission is publishing this notice to solicit comment 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
National Stock Exchange, Inc. (``NSX'' or ``Exchange'') is
proposing to amend Exchange Rule 16 and the NSX Fee and Rebate Schedule
(the ``Fee Schedule'') in order to (i) reduce the rebate for adding
liquidity in Order Delivery mode of order interaction for those
securities trading at one dollar or more and (ii) eliminate the trade
and quote market data revenue credit in Order Delivery mode for all
Tape A securities.
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
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 parts of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule Change
Purpose
With this rule change, the Exchange is proposing to reduce the
liquidity adding rebates and market data revenue credits in Order
Delivery mode of order interaction (``Order Delivery Mode'').\3\ In
particular, this rule change proposes to reduce the rebate for adding
liquidity in securities trading at or above one dollar in Order
Delivery Mode to a flat rebate of $0.0023 per share executed for Tape
A, and to $0.0025 per share executed for Tapes B and C. In addition,
the Exchange is proposing to eliminate the trade and quote market data
revenue credit for all Tape A securities executed in Order Delivery
Mode.
---------------------------------------------------------------------------
\3\ This rule change proposes no changes to the fees and rebates
applicable to securities executed in the Automatic Execution (``Auto
Ex'') mode of order interaction under NSX Rule 16.2(b)(1).
---------------------------------------------------------------------------
Reduction of Rebate for Adding Liquidity in Order Delivery Mode
With respect to securities traded at one dollar or more in Order
Delivery Mode, the instant filing proposes simplifying the Fee Schedule
by reducing the per share executed rebate to a flat rate of $0.0023 for
Tape A securities and to $0.0025 for Tapes B and C securities.
Currently, the per share rebate for adding liquidity across all tapes
in Order Delivery Mode for securities executed at one dollar or more is
$0.0027 if ``Executed ADV'' is equal to or greater than 60 million, and
$0.0026 if ``Executed ADV'' is less than 60 million. As set forth in
explanatory endnote number 6 to the Fee Schedule (which endnote is
proposed to be deleted as no longer necessary), ``Executed ADV'' means,
with respect to an ETP Holder, ``the number of shares such ETP Holder
has executed on average per trading day (excluding partial trading days
and securities under one dollar) across all tapes on NSX for the
calendar month in which the executions occurred.'' The instant filing
proposes to simplify the Fee Schedule by eliminating the tiered rebate
structure in Order Delivery Mode based on ``Executed ADV'' and
replacing it with a flat fee based solely on whether the security is
Tape A, B or C. The instant filing will affect the calculation of the
``Executed ADV'' for the month of September, 2008. Accordingly, the
``Executed ADV'' will be calculated based on the average per trading
day (excluding partial trading days and securities under one dollar)
across all tapes on NSX for the period beginning September 1, 2008 and
ending September 22, 2008, the period when the old Fee Schedule (prior
to the instant modification) was in effect. Notice will be provided to
ETP Holders respecting the calculation of the Executed ADV.
The instant rule filing proposes no changes to the liquidity adding
rebates applicable to securities trading at less than one dollar in
Order Delivery Mode.\4\
---------------------------------------------------------------------------
\4\ Securities which trade under one dollar in Order Delivery
Mode and which add liquidity currently receive a rebate of 0.10% of
the trade value, where ``trade value'' means a dollar amount equal
to the price per share multiplied by the number of shares executed.
---------------------------------------------------------------------------
Elimination of Market Data Revenue Credit for Tape A Securities in
Order Delivery Mode
With respect to Tape A securities in Order Delivery Mode, the
instant filing proposes to eliminate the market data revenue credit in
both trades and quotes. Currently in Order Delivery Mode, ETP Holders
receive a credit of 50% of both trade and quote market data revenues
across all tapes. This credit is proposed to be eliminated for all Tape
A securities in Order Delivery Mode, regardless of price.
No Changes to Auto Ex
For purposes of clarity, the proposed rule change proposes no
modifications to the fees and rebates relating to any trades in Auto
Ex.
Rationale
The Exchange has determined that these changes are necessary to
increase the revenue of the Exchange and to adequately fund its
regulatory and general business functions. The proposed modification is
reasonable and equitably allocated to those ETP Holders that opt to
provide liquidity in Order Delivery Mode, and is not discriminatory
because ETP Holders are free to elect whether to send orders in
[[Page 60378]]
all tapes through the Order Delivery Mode, through Auto Ex, and as
liquidity providing trades and quotes. Based upon the information
above, the Exchange believes that the proposed rule change is
consistent with the protection of investors and the public interest.
Operative Date and Notice
The Exchange intends to make the proposed credit and rebate
structure effective on filing of this proposed rule for trading on
September 23, 2008. Pursuant to Exchange 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).
Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the provisions of Section 6(b) of the Act,\5\ in general, and
Section 6(b)(4) of the Act,\6\ 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 the facilities of the
Exchange. Moreover, the proposed fee and rebate structure is not
discriminatory in that all ETP Holders are eligible to submit (or not
submit) liquidity adding trades and quotes in Order Delivery Mode in
all tapes and may do so at their discretion.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78f(b).
\6\ 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 proposed rule change has taken effect upon filing pursuant to
Section 19(b)(3)(A)(ii) of the Act \7\ and subparagraph (f)(2) of Rule
19b-4 \8\ thereunder, because, as provided in (f)(2), it ``changes a
due, fee or other charge imposed by the Exchange applicable only to a
member'' (known on the Exchange as an ETP Holder). At any time within
sixty (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.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78s(b)(3)(A)(ii).
\8\ 17 CFR 240.19b-4 [sic].
---------------------------------------------------------------------------
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-NSX-2008-17 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-NSX-2008-17. 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 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-NSX-2008-17 and should be
submitted on or before October 31, 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. E8-24118 Filed 10-9-08; 8:45 am]
BILLING CODE 8011-01-P