Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Order Granting Accelerated Approval of Proposed Rule Change To Extend the Pilot Program for NYSE Arca Realtime Reference Prices Service, 66956-66958 [E8-26627]
Download as PDF
66956
Federal Register / Vol. 73, No. 219 / Wednesday, November 12, 2008 / Notices
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 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 you wish to make
available publicly. All submissions
should refer to File Number SR–
NASDAQ–2008–086 and should be
submitted on or before December 3,
2008.
mstockstill on PROD1PC66 with NOTICES
IV. Commission’s Findings and Order
Granting Accelerated Approval of a
Proposed Rule Change
The Commission finds that the
proposed rule change, to extend the
pilot program for two months, is
consistent with the requirements of the
Act and the rules and regulations
thereunder applicable to a national
securities exchange.6 In particular, it is
consistent with section 6(b)(4) of the
Act,7 which requires that the rules of a
national securities exchange provide for
the equitable allocation of reasonable
dues, fees, and other charges among its
members and issuers and other parties
using its facilities, and section 6(b)(5) of
the Act,8 which requires, among other
things, that the rules of a national
securities exchange be designed to
promote just and equitable principles of
trade, to remove impediments to and
perfect the mechanism of a free and
open market and a national market
system and, in general, to protect
investors and the public interest, and
not be designed to permit unfair
discrimination between customers,
issuers, brokers, or dealers.
The Commission also finds that the
proposed rule change is consistent with
the provisions of section 6(b)(8) of the
Act,9 which requires that the rules of an
exchange not impose any burden on
competition not necessary or
appropriate in furtherance of the
purposes of the Act. Finally, the
Commission finds that the proposed
rule change is consistent with Rule
603(a) of Regulation NMS,10 adopted
under section 11A(c)(1) of the Act,
which requires an exclusive processor
6 In
approving this proposed rule change, the
Commission has considered the proposed rule’s
impact on efficiency, competition, and capital
formation. See 15 U.S.C. 78c(f).
7 15 U.S.C. 78f(b)(4).
8 15 U.S.C. 78f(b)(5).
9 15 U.S.C. 78f(b)(8).
10 17 CFR 242.603(a).
VerDate Aug<31>2005
18:30 Nov 10, 2008
Jkt 217001
that distributes information with respect
to quotations for or transactions in an
NMS stock to do so on terms that are
fair and reasonable and that are not
unreasonably discriminatory.11
The Commission approved the fee for
the NASDAQ Last Sale Data Feeds for
a pilot period which runs until October
31, 2008.12 The Commission approved
the fee for the NASDAQ Last Sale Data
Feeds for a pilot period which runs
until October 31, 2008. The Commission
notes that the Exchange proposes to
extend the pilot program for two
months. The Exchange proposes no
other changes to the existing pilot
program.
On June 4, 2008, the Commission
approved for public comment a draft
approval order that sets forth a marketbased approach for analyzing proposals
by self-regulatory organizations to
impose fees for ‘‘non-core’’ market data
products that would encompass the
NASDAQ Last Sale Data Feeds.13 The
Commission believes that the proposal
is consistent with the Act for the
reasons noted preliminarily in the Draft
Approval Order. Pending review by the
Commission of comments received on
the Draft Approval Order, and final
Commission action thereon, the
Commission believes that approving
NASDAQ’s proposal to extend the pilot
program that imposes a fee for the
NASDAQ Last Sale Data Feeds for two
months would be beneficial to investors
and in the public interest, in that it
should result in increased broad public
dissemination of real-time pricing
information. The broader approach
ultimately taken by the Commission
with respect to non-core market data
fees will necessarily guide Commission
action regarding fees for the NASDAQ
Last Sale Data Feeds beyond the pilot
period.
The Commission finds good cause for
approving the proposed rule change
before the thirtieth day after the date of
publication of notice of filing thereof in
the Federal Register. Accelerating
approval of this proposal should benefit
investors by facilitating their access to
widespread, free, real-time pricing
11 NASDAQ is an exclusive processor of its last
sale data under Section 3(a)(22)(B) of the Act, 15
U.S.C. 78c(a)(22)(B), which defines an exclusive
processor as, among other things, an exchange that
distributes data on an exclusive basis on its own
behalf.
12 See Securities Exchange Act Release No. 57965
(June 16, 2008), 73 FR 35178 (June 20, 2008) (SR–
NASDAQ–2006–060).
13 See Securities Exchange Act Release No. 57917
(June 4, 2008), 73 FR 32751 (June 10, 2008) (Notice
of Proposed Order Approving Proposal by NYSE
Arca, Inc. to Establish Fees for Certain Market Data
and Request for Comment) (‘‘Draft Approval
Order’’).
PO 00000
Frm 00122
Fmt 4703
Sfmt 4703
information contained in the NASDAQ
Last Sale Data Feeds. Therefore, the
Commission finds good cause,
consistent with Section 19(b)(2) of the
Act,14 to approve the proposed rule
change on an accelerated basis to extend
the operation of the pilot until
December 31, 2008, while the
Commission analyzes comments on the
Draft Approval Order.
V. Conclusion
It is therefore ordered, pursuant to
section 19(b)(2) of the Act, that the
proposed rule change (SR–NASDAQ–
2008–086) is hereby approved on an
accelerated basis until December 31,
2008.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.15
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–26626 Filed 11–10–08; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–58895; File No. SR–
NYSEArca–2008–122]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and Order
Granting Accelerated Approval of
Proposed Rule Change To Extend the
Pilot Program for NYSE Arca Realtime
Reference Prices Service
October 31, 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 October
31, 2008, NYSE Arca, Inc. (the
‘‘Exchange’’ or ‘‘NYSE Arca’’), filed with
the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I and II below, which Items have
been prepared by the Exchange. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons, and is
approving the proposal on an
accelerated basis.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to extend the
expiration date of its pilot program for
the NYSE Arca Realtime Reference
14 15
U.S.C. 78s(b)(2).
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
15 17
E:\FR\FM\12NON1.SGM
12NON1
Federal Register / Vol. 73, No. 219 / Wednesday, November 12, 2008 / Notices
Prices service until December 31, 2008.
There is no new rule text.
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 III 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
Statutory Basis for, the Proposed Rule
Change
mstockstill on PROD1PC66 with NOTICES
1. Purpose
In File No. SR–NYSEArca–2008–96,
the Exchange established a pilot
program that allows the Exchange to test
the viability of a new NYSE Arca-only
market data service that allows a vendor
to redistribute on a real-time basis last
sale prices of transactions that take
place on the Exchange (‘‘NYSE Arca
Realtime Reference Prices’’) and to
establish a flat monthly fee for that
service. The Commission approved that
pilot program on August 29, 2008.3
The Exchange intends for the NYSE
Arca Realtime Reference Prices service
to accomplish three goals:
1. To provide a low-cost service that
will make real-time prices widely
available to millions of casual investors;
2. To provide vendors with a real-time
substitute for delayed prices; and
3. To relieve vendors of
administrative burdens.
This pilot program is similar to pilot
programs that the Nasdaq Stock Market,
Inc. (‘‘Nasdaq’’),4 and the New York
Stock Exchange, LLC (‘‘NYSE’’),5 have
established.
The pilot program allows internet
service providers, traditional market
data vendors, and others (‘‘NYSE ArcaOnly Vendors’’) to make available NYSE
Arca Realtime Reference Prices on a
real-time basis.6 The NYSE Arca
3 See Securities Exchange Act Release No. 58444
(August 29, 2008), 73 FR 51872 (September 5, 2008)
(SR–NYSEArca–2008–96).
4 See Securities Exchange Act Release Nos. 57965
(June 16, 2008), 73 FR 35178 (June 20, 2008) (SR–
NASDAQ–2006–060); 57973 (June 16, 2008), 73 FR
35430 (June 23, 2008) (SR–NASDAQ–2008–050).
5 See Securities Exchange Act Release No. 57966
(June 16, 2008), 73 FR 35182 (June 20, 2008) (SR–
NYSE–2007–04).
6 The Exchange notes that it will make the NYSE
Arca Realtime Reference Prices available to vendors
VerDate Aug<31>2005
18:30 Nov 10, 2008
Jkt 217001
Realtime Reference Price information
includes last sale prices for all securities
that trade on the Exchange. It includes
only prices, and not the size of each
trade and not bid/asked quotations.
It features a flat, fixed monthly vendor
fee, no user-based fees, no vendor
reporting requirements, and no
professional or non-professional
subscriber agreements.
The Exchange established November
1, 2008, as the end date for the pilot
program. The Exchange now seeks to
extend that end date to December 31,
2008. Prior to the end of the pilot
period, the Exchange will assess its
experience with the product and either
will submit a proposed rule change that
seeks to extend or modify the pilot
program or to make it permanent, or it
will announce publicly that it does not
seek to extend the pilot program beyond
the program’s termination date.
2. Statutory Basis
The basis under the Act for this
proposed rule change is the requirement
under Section 6(b)(4) 7 that an exchange
have rules that provide for the equitable
allocation of reasonable dues, fees and
other charges among its members and
other persons using its facilities and the
requirements under Section 6(b)(5) 8
that the rules of an exchange be
designed to promote just and equitable
principles of trade and not to permit
unfair discrimination between
customers, issuers, brokers or dealers.
The Exchange believes that the pilot
program benefits investors by
facilitating their prompt access to
widespread, free, real-time pricing
information contained in the NYSE Arca
Realtime Reference Prices service.
Extending the pilot program will extend
those benefits while the Exchange
assesses the service.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
this proposed rule change will result in
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 received any
unsolicited written comments from
members or other interested parties.
no earlier than it makes those prices available to the
processor under the CTA Plan.
7 15 U.S.C. 78f(b)(4).
8 15 U.S.C. 78f(b)(5).
PO 00000
Frm 00123
Fmt 4703
Sfmt 4703
66957
III. 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–NYSEArca–2008–122 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–2008–122. 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 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 you wish to make
available publicly. All submissions
should refer to File Number SR–
NYSEArca–2008–122 and should be
submitted on or before December 1,
2008.
IV. Commission’s Findings and Order
Granting Accelerated Approval of a
Proposed Rule Change
The Commission finds that the
proposed rule change, to extend the
pilot program for two months, is
E:\FR\FM\12NON1.SGM
12NON1
66958
Federal Register / Vol. 73, No. 219 / Wednesday, November 12, 2008 / Notices
consistent with the requirements of the
Act and the rules and regulations
thereunder applicable to a national
securities exchange.9 In particular, it is
consistent with section 6(b)(4) of the
Act,10 which requires that the rules of
a national securities exchange provide
for the equitable allocation of reasonable
dues, fees, and other charges among its
members and issuers and other parties
using its facilities, and section 6(b)(5) of
the Act,11 which requires, among other
things, that the rules of a national
securities exchange be designed to
promote just and equitable principles of
trade, to remove impediments to and
perfect the mechanism of a free and
open market and a national market
system and, in general, to protect
investors and the public interest, and
not be designed to permit unfair
discrimination between customers,
issuers, brokers, or dealers.
The Commission also finds that the
proposed rule change is consistent with
the provisions of section 6(b)(8) of the
Act,12 which requires that the rules of
an exchange not impose any burden on
competition not necessary or
appropriate in furtherance of the
purposes of the Act. Finally, the
Commission finds that the proposed
rule change is consistent with Rule
603(a) of Regulation NMS,13 adopted
under section 11A(c)(1) of the Act,
which requires an exclusive processor
that distributes information with respect
to quotations for or transactions in an
NMS stock to do so on terms that are
fair and reasonable and that are not
unreasonably discriminatory.14
The Commission approved the fee for
NYSE Arca Realtime Reference Prices
for a pilot period which runs until
October 31, 2008.15 The Commission
notes that the Exchange proposes to
extend the pilot program for two
months. The Exchange proposes no
other changes to the existing pilot
program.
On June 4, 2008, the Commission
approved for public comment a draft
approval order that sets forth a marketbased approach for analyzing proposals
by self-regulatory organizations to
mstockstill on PROD1PC66 with NOTICES
9 In
approving this proposed rule change, the
Commission has considered the proposed rule’s
impact on efficiency, competition, and capital
formation. See 15 U.S.C. 78c(f).
10 15 U.S.C. 78f(b)(4).
11 15 U.S.C. 78f(b)(5).
12 15 U.S.C. 78f(b)(8).
13 17 CFR 242.603(a).
14 NYSE Arca is an exclusive processor of its last
sale data under Section 3(a)(22)(B) of the Act, 15
U.S.C. 78c(a)(22)(B), which defines an exclusive
processor as, among other things, an exchange that
distributes data on an exclusive basis on its own
behalf.
15 See supra note 3.
VerDate Aug<31>2005
18:30 Nov 10, 2008
Jkt 217001
impose fees for ‘‘non-core’’ market data
products that would encompass the
NYSE Arca Realtime Reference Prices.16
The Commission believes that the
proposal is consistent with the Act for
the reasons noted preliminarily in the
Draft Approval Order. Pending review
by the Commission of comments
received on the Draft Approval Order,
and final Commission action thereon,
the Commission believes that approving
NYSE Arca’s proposal to extend the
pilot program that imposes a fee for
NYSE Arca Realtime Reference Prices
for two months would be beneficial to
investors and in the public interest, in
that it should result in increased broad
public dissemination of real-time
pricing information. The broader
approach ultimately taken by the
Commission with respect to non-core
market data fees will necessarily guide
Commission action regarding fees for
the NYSE Arca Realtime Reference
Prices beyond the pilot period.
The Commission finds good cause for
approving the proposed rule change
before the thirtieth day after the date of
publication of notice of filing thereof in
the Federal Register. Accelerating
approval of this proposal should benefit
investors by facilitating their access to
widespread, free, real-time pricing
information contained in the NYSE Arca
Realtime Reference Prices. Therefore,
the Commission finds good cause,
consistent with Section 19(b)(2) of the
Act,17 to approve the proposed rule
change on an accelerated basis to extend
the operation of the pilot until
December 31, 2008, while the
Commission analyzes comments on the
Draft Approval Order.
V. Conclusion
It is therefore ordered, pursuant to
section 19(b)(2) of the Act, that the
proposed rule change (SR–NYSEArca–
2008–122) is hereby approved on an
accelerated basis until December 31,
2008.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.18
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–26627 Filed 11–10–08; 8:45 am]
16 See Securities Exchange Act Release No. 57917
(June 4, 2008), 73 FR 32751 (June 10, 2008) (Notice
of Proposed Order Approving Proposal by NYSE
Arca, Inc. to Establish Fees for Certain Market Data
and Request for Comment) (‘‘Draft Approval
Order’’).
17 15 U.S.C. 78s(b)(2).
18 17 CFR 200.30–3(a)(12).
Frm 00124
Fmt 4703
Federal Aviation Administration
15th Meeting: RTCA Special
Committee 206/EUROCAE WG 76
Plenary
Federal Aviation
Administration (FAA), DOT.
ACTION: Notice of RTCA Special
Committee 206 meeting.
AGENCY:
SUMMARY: The FAA is issuing this notice
to advise the public of a meeting of
RTCA Special Committee 206:
Aeronautical Information Services Data
Link.
DATES: The meeting will be held
December 9–12, 2008 from 9 a.m. to 5
p.m.
ADDRESSES: The meeting will be held at
(training facilities), Rua C, Edificio 7,
Aeroporto de Lisboa, 1700–008 Sisboa,
Portugal. Hosted by: NAV Portugal,
https://www.nav.pt.
´
FOR FURTHER INFORMATION CONTACT: Jose
Resendes, jose.resendes@nav.pt also
Ana Paula Frangolho—32–2–729 4702.
SUPPLEMENTARY INFORMATION: Pursuant
to section 10(a) (2) of the Federal
Advisory Committee Act (Pub. L. 92–
463, 5 U.S.C., Appendix 2), notice is
hereby given for a Special Committee
206 meeting/EUROCE WG 76. The
agenda will include:
9 December
Opening Plenary (Chairman’s
Remarks and Introductions, Review and
Approve Meeting Agenda and Minutes,
Discussion).
• Schedule for this week
• Action Item Review
• Schedule for next meetings
Presentations.
• Flight Test Campaign of
FLYSAFE—Laurence Mutuel
• Action Items—Gary Livack and
Kevin Mattison
• Action Items—Christian
Bousmanne
• Others to be determined
SPR and INTEROP.
10 December
AIS Subgroup meeting.
Meteorology Subgroup meeting.
11 December
Subgroup 1 and Subgroup 2 meetings.
BILLING CODE 8011–01–P
PO 00000
DEPARTMENT OF TRANSPORTATION
Sfmt 4703
12 December
Subgroup 1 and Subgroup 2 meetings.
Closing Plenary Session (Other
Business, Meeting Plans and Dates,
Closing Remarks, Adjourn).
Attendance is open to the interested
public but limited to space availability.
E:\FR\FM\12NON1.SGM
12NON1
Agencies
[Federal Register Volume 73, Number 219 (Wednesday, November 12, 2008)]
[Notices]
[Pages 66956-66958]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-26627]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-58895; File No. SR-NYSEArca-2008-122]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Order Granting Accelerated Approval of Proposed Rule Change To
Extend the Pilot Program for NYSE Arca Realtime Reference Prices
Service
October 31, 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 October 31, 2008, NYSE Arca, Inc. (the ``Exchange'' or ``NYSE
Arca''), filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I and
II below, which Items have been prepared by the Exchange. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons, and is approving the
proposal on an accelerated basis.
---------------------------------------------------------------------------
\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 extend the expiration date of its pilot
program for the NYSE Arca Realtime Reference
[[Page 66957]]
Prices service until December 31, 2008. There is no new rule text.
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 III 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
Statutory Basis for, the Proposed Rule Change
1. Purpose
In File No. SR-NYSEArca-2008-96, the Exchange established a pilot
program that allows the Exchange to test the viability of a new NYSE
Arca-only market data service that allows a vendor to redistribute on a
real-time basis last sale prices of transactions that take place on the
Exchange (``NYSE Arca Realtime Reference Prices'') and to establish a
flat monthly fee for that service. The Commission approved that pilot
program on August 29, 2008.\3\
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release No. 58444 (August 29,
2008), 73 FR 51872 (September 5, 2008) (SR-NYSEArca-2008-96).
---------------------------------------------------------------------------
The Exchange intends for the NYSE Arca Realtime Reference Prices
service to accomplish three goals:
1. To provide a low-cost service that will make real-time prices
widely available to millions of casual investors;
2. To provide vendors with a real-time substitute for delayed
prices; and
3. To relieve vendors of administrative burdens.
This pilot program is similar to pilot programs that the Nasdaq Stock
Market, Inc. (``Nasdaq''),\4\ and the New York Stock Exchange, LLC
(``NYSE''),\5\ have established.
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release Nos. 57965 (June 16,
2008), 73 FR 35178 (June 20, 2008) (SR-NASDAQ-2006-060); 57973 (June
16, 2008), 73 FR 35430 (June 23, 2008) (SR-NASDAQ-2008-050).
\5\ See Securities Exchange Act Release No. 57966 (June 16,
2008), 73 FR 35182 (June 20, 2008) (SR-NYSE-2007-04).
---------------------------------------------------------------------------
The pilot program allows internet service providers, traditional
market data vendors, and others (``NYSE Arca-Only Vendors'') to make
available NYSE Arca Realtime Reference Prices on a real-time basis.\6\
The NYSE Arca Realtime Reference Price information includes last sale
prices for all securities that trade on the Exchange. It includes only
prices, and not the size of each trade and not bid/asked quotations.
---------------------------------------------------------------------------
\6\ The Exchange notes that it will make the NYSE Arca Realtime
Reference Prices available to vendors no earlier than it makes those
prices available to the processor under the CTA Plan.
---------------------------------------------------------------------------
It features a flat, fixed monthly vendor fee, no user-based fees,
no vendor reporting requirements, and no professional or non-
professional subscriber agreements.
The Exchange established November 1, 2008, as the end date for the
pilot program. The Exchange now seeks to extend that end date to
December 31, 2008. Prior to the end of the pilot period, the Exchange
will assess its experience with the product and either will submit a
proposed rule change that seeks to extend or modify the pilot program
or to make it permanent, or it will announce publicly that it does not
seek to extend the pilot program beyond the program's termination date.
2. Statutory Basis
The basis under the Act for this proposed rule change is the
requirement under Section 6(b)(4) \7\ that an exchange have rules that
provide for the equitable allocation of reasonable dues, fees and other
charges among its members and other persons using its facilities and
the requirements under Section 6(b)(5) \8\ that the rules of an
exchange be designed to promote just and equitable principles of trade
and not to permit unfair discrimination between customers, issuers,
brokers or dealers.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78f(b)(4).
\8\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
The Exchange believes that the pilot program benefits investors by
facilitating their prompt access to widespread, free, real-time pricing
information contained in the NYSE Arca Realtime Reference Prices
service. Extending the pilot program will extend those benefits while
the Exchange assesses the service.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that this proposed rule change will
result in 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 received any unsolicited written comments from
members or other interested parties.
III. 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-2008-122 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-2008-122. 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 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
you wish to make available publicly. All submissions should refer to
File Number SR-NYSEArca-2008-122 and should be submitted on or before
December 1, 2008.
IV. Commission's Findings and Order Granting Accelerated Approval of a
Proposed Rule Change
The Commission finds that the proposed rule change, to extend the
pilot program for two months, is
[[Page 66958]]
consistent with the requirements of the Act and the rules and
regulations thereunder applicable to a national securities exchange.\9\
In particular, it is consistent with section 6(b)(4) of the Act,\10\
which requires that the rules of a national securities exchange provide
for the equitable allocation of reasonable dues, fees, and other
charges among its members and issuers and other parties using its
facilities, and section 6(b)(5) of the Act,\11\ which requires, among
other things, that the rules of a national securities exchange be
designed to promote just and equitable principles of trade, to remove
impediments to and perfect the mechanism of a free and open market and
a national market system and, in general, to protect investors and the
public interest, and not be designed to permit unfair discrimination
between customers, issuers, brokers, or dealers.
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\9\ In approving this proposed rule change, the Commission has
considered the proposed rule's impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
\10\ 15 U.S.C. 78f(b)(4).
\11\ 15 U.S.C. 78f(b)(5).
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The Commission also finds that the proposed rule change is
consistent with the provisions of section 6(b)(8) of the Act,\12\ which
requires that the rules of an exchange not impose any burden on
competition not necessary or appropriate in furtherance of the purposes
of the Act. Finally, the Commission finds that the proposed rule change
is consistent with Rule 603(a) of Regulation NMS,\13\ adopted under
section 11A(c)(1) of the Act, which requires an exclusive processor
that distributes information with respect to quotations for or
transactions in an NMS stock to do so on terms that are fair and
reasonable and that are not unreasonably discriminatory.\14\
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\12\ 15 U.S.C. 78f(b)(8).
\13\ 17 CFR 242.603(a).
\14\ NYSE Arca is an exclusive processor of its last sale data
under Section 3(a)(22)(B) of the Act, 15 U.S.C. 78c(a)(22)(B), which
defines an exclusive processor as, among other things, an exchange
that distributes data on an exclusive basis on its own behalf.
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The Commission approved the fee for NYSE Arca Realtime Reference
Prices for a pilot period which runs until October 31, 2008.\15\ The
Commission notes that the Exchange proposes to extend the pilot program
for two months. The Exchange proposes no other changes to the existing
pilot program.
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\15\ See supra note 3.
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On June 4, 2008, the Commission approved for public comment a draft
approval order that sets forth a market-based approach for analyzing
proposals by self-regulatory organizations to impose fees for ``non-
core'' market data products that would encompass the NYSE Arca Realtime
Reference Prices.\16\ The Commission believes that the proposal is
consistent with the Act for the reasons noted preliminarily in the
Draft Approval Order. Pending review by the Commission of comments
received on the Draft Approval Order, and final Commission action
thereon, the Commission believes that approving NYSE Arca's proposal to
extend the pilot program that imposes a fee for NYSE Arca Realtime
Reference Prices for two months would be beneficial to investors and in
the public interest, in that it should result in increased broad public
dissemination of real-time pricing information. The broader approach
ultimately taken by the Commission with respect to non-core market data
fees will necessarily guide Commission action regarding fees for the
NYSE Arca Realtime Reference Prices beyond the pilot period.
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\16\ See Securities Exchange Act Release No. 57917 (June 4,
2008), 73 FR 32751 (June 10, 2008) (Notice of Proposed Order
Approving Proposal by NYSE Arca, Inc. to Establish Fees for Certain
Market Data and Request for Comment) (``Draft Approval Order'').
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The Commission finds good cause for approving the proposed rule
change before the thirtieth day after the date of publication of notice
of filing thereof in the Federal Register. Accelerating approval of
this proposal should benefit investors by facilitating their access to
widespread, free, real-time pricing information contained in the NYSE
Arca Realtime Reference Prices. Therefore, the Commission finds good
cause, consistent with Section 19(b)(2) of the Act,\17\ to approve the
proposed rule change on an accelerated basis to extend the operation of
the pilot until December 31, 2008, while the Commission analyzes
comments on the Draft Approval Order.
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\17\ 15 U.S.C. 78s(b)(2).
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V. Conclusion
It is therefore ordered, pursuant to section 19(b)(2) of the Act,
that the proposed rule change (SR-NYSEArca-2008-122) is hereby approved
on an accelerated basis until December 31, 2008.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\18\
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\18\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-26627 Filed 11-10-08; 8:45 am]
BILLING CODE 8011-01-P