Self-Regulatory Organizations; National Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Exchange Rule 16 and the NSX Fee Schedule for Order Delivery Mode Transactions, 69703-69704 [E8-27428]

Download as PDF Federal Register / Vol. 73, No. 224 / Wednesday, November 19, 2008 / Notices information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File No. SR–ISE–2008–82 and should be submitted on or before December 10, 2008. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.8 Florence E. Harmon, Acting Secretary. [FR Doc. E8–27421 Filed 11–18–08; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change [Release No. 34–58935; File No. SRndash;NSX–2008–19] Self-Regulatory Organizations; National Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Exchange Rule 16 and the NSX Fee Schedule for Order Delivery Mode Transactions November 13, 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 November 5, 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 comments on the proposed rule change from interested persons. cprice-sewell on PROD1PC64 with NOTICES I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange is proposing to amend Exchange Rule 16.2(b) and the NSX Fee and Rebate Schedule (the ‘‘Fee Schedule’’) issued pursuant to Exchange Rule 16.1(c) in order to (i) eliminate the rebate for adding liquidity in Order Delivery mode of order interaction for all securities and (ii) eliminate the trade and quote market data revenue credit in Order Delivery mode for all 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. 8 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 VerDate Aug<31>2005 15:14 Nov 18, 2008 Jkt 217001 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. 1. Purpose With this rule change, the Exchange is proposing to eliminate all liquidity adding rebates and market data revenue credits in Order Delivery mode of order interaction (‘‘Order Delivery Mode’’).3 In particular, for securities in Order Delivery Mode, this rule change proposes to reduce the rebate for adding liquidity to zero across all Tapes and regardless of the price at which the securities are trading.4 In addition, with respect to Tape B and C 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 for Tape B and C securities, regardless of price. This credit is proposed to be eliminated for all Tape B and C securities executed in Order Delivery Mode, regardless of price, which effectively eliminates tape revenue sharing in Order Delivery Mode.5 Because as a result of the proposed rule change there would be no tape credit sharing program under either 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 current NSX Rule 11.13(b)(1). 4 In particular, for securities trading at or above one dollar in Order Delivery Mode, this rule change proposes to reduce to zero the rebate for adding liquidity from $0.0023 per share executed for Tape A, and from $0.0025 per share executed for Tapes B and C. For securities which trade under one dollar in Order Delivery Mode, this rule change proposes to reduce to zero the rebate for adding liquidity from 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. 5 Pursuant to SR–NSX–2008–17, the Exchange previously eliminated the tape revenue sharing credit program for all Tape A securities in Order Delivery Mode. PO 00000 Frm 00105 Fmt 4703 Sfmt 4703 69703 Order Delivery Mode or Automatic Execution mode of order interaction (‘‘AutoEx’’), the instant rule filing proposes to simplify Rule 16.2 by eliminating the text of Rule 16.2(b) (‘‘Tape Credits’’) in its entirety. To the extent that the Consolidated Tape Association or the Nasdaq Securities Information Processor subsequently adjusts any Tape A, Tape B or Tape C revenue earned by the Exchange for any period(s) during which the tape revenue credit program was in effect, credits paid to ETP Holders would be adjusted, as necessary, in accordance with the rules in effect during such period, including the ‘‘De Minimis Credits’’ rule under current Rule 16.2(b)(5) which establishes an eligibility threshold of $250 per calendar quarter for participation in the tape credit program. No Changes to Automatic Execution Mode For purposes of clarity, the proposed rule change proposes no modifications to the fees and rebates relating to any trades in AutoEx. 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 all tapes through the Order Delivery Mode, through AutoEx, 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 November 6, 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 post a copy of the rule filing on the Exchange’s Web site (www.nsx.com). 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with the provisions of Section 6(b) of the E:\FR\FM\19NON1.SGM 19NON1 69704 Federal Register / Vol. 73, No. 224 / Wednesday, November 19, 2008 / Notices 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 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 or AutoEx 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. 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 8 and subparagraph (f)(2) of Rule 19b–4 9 thereunder, because, as provided in (f)(2), it changes ‘‘a due, fee or other charge 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. cprice-sewell on PROD1PC64 with NOTICES 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 U.S.C. 78f(b). U.S.C. 78f(b)(4). 8 15 U.S.C. 78s(b)(3)(A)(ii). 9 17 CFR 240.19b–4(f)(2). Number SR–NSX–2008–19 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. SECURITIES AND EXCHANGE COMMISSION [Release No. 34–58936; File No. SR-NYSE– 2008–117] Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of All submissions should refer to File Proposed Rule Change To Delete Number SR–NSX–2008–19. This file Section (3) of Exchange Rule 123D, number should be included on the Which Provides for the ‘‘Sub-Penny subject line if e-mail is used. To help the Trading’’ Condition Commission process and review your November 13, 2008. comments more efficiently, please use only one method. The Commission will Pursuant to Section 19(b)(1) 1 of the post all comments on the Commission’s Securities Exchange Act of 1934 (the Internet Web site (https://www.sec.gov/ ‘‘Act’’) 2 and Rule 19b–4 thereunder,3 rules/sro.shtml). Copies of the notice is hereby given that, on submission, all subsequent November 6, 2008, New York Stock amendments, all written statements Exchange LLC (‘‘NYSE’’ or the with respect to the proposed rule ‘‘Exchange’’) filed with the Securities change that are filed with the and Exchange Commission (the Commission, and all written ‘‘Commission’’) the proposed rule communications relating to the change as described in Items I and II, proposed rule change between the below, which Items have been prepared Commission and any person, other than by the self-regulatory organization. The those that may be withheld from the Commission is publishing this notice to public in accordance with the solicit comments on the proposed rule provisions of 5 U.S.C. 552, will be change from interested persons. available for inspection and copying in I. Self-Regulatory Organization’s the Commission’s Public Reference Statement of the Terms of Substance of Room, 100 F Street, NE., Washington, the Proposed Rule Change DC 20549, on official business days between the hours of 10 a.m. and 3 p.m. The Exchange proposes to delete Copies of the filing also will be available section (3) of Exchange Rule 123D, for inspection and copying at the which provides for the ‘‘Sub-penny principal office of the Exchange. All trading’’ condition. The text of the comments received will be posted proposed rule change is available at without change; the Commission does www.nyse.com, NYSE’s principal office, not edit personal identifying and the Commission’s Public Reference information from submissions. You Room. should submit only information that you wish to make available publicly. All II. Self-Regulatory Organization’s submissions should refer to File Statement of the Purpose of, and Number SR–NSX–2008–19 and should Statutory Basis for, the Proposed Rule be submitted on or before December 10, Change 2008. In its filing with the Commission, the For the Commission, by the Division of self-regulatory organization included Trading and Markets, pursuant to delegated statements concerning the purpose of, authority.10 and basis for, the proposed rule change Florence E. Harmon, and discussed any comments it received Acting Secretary. on the proposed rule change. The text [FR Doc. E8–27428 Filed 11–18–08; 8:45 am] of those statements may be examined at BILLING CODE 8011–01–P 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. 6 15 1 15 7 15 VerDate Aug<31>2005 15:14 Nov 18, 2008 U.S.C.78s(b)(1). U.S.C. 78a. 3 17 CFR 240.19b–4. 2 15 10 17 Jkt 217001 PO 00000 CFR 200.30–3(a)(12). Frm 00106 Fmt 4703 Sfmt 4703 E:\FR\FM\19NON1.SGM 19NON1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 73, Number 224 (Wednesday, November 19, 2008)]
[Notices]
[Pages 69703-69704]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-27428]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-58935; File No. SR-ndash;NSX-2008-19]


Self-Regulatory Organizations; National Stock Exchange, Inc.; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Amend Exchange Rule 16 and the NSX Fee Schedule for Order Delivery Mode 
Transactions

November 13, 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 November 5, 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 comments on the 
proposed rule change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange is proposing to amend Exchange Rule 16.2(b) and the 
NSX Fee and Rebate Schedule (the ``Fee Schedule'') issued pursuant to 
Exchange Rule 16.1(c) in order to (i) eliminate the rebate for adding 
liquidity in Order Delivery mode of order interaction for all 
securities and (ii) eliminate the trade and quote market data revenue 
credit in Order Delivery mode for all 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 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    With this rule change, the Exchange is proposing to eliminate all 
liquidity adding rebates and market data revenue credits in Order 
Delivery mode of order interaction (``Order Delivery Mode'').\3\ In 
particular, for securities in Order Delivery Mode, this rule change 
proposes to reduce the rebate for adding liquidity to zero across all 
Tapes and regardless of the price at which the securities are 
trading.\4\
---------------------------------------------------------------------------

    \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 current NSX Rule 11.13(b)(1).
    \4\ In particular, for securities trading at or above one dollar 
in Order Delivery Mode, this rule change proposes to reduce to zero 
the rebate for adding liquidity from $0.0023 per share executed for 
Tape A, and from $0.0025 per share executed for Tapes B and C. For 
securities which trade under one dollar in Order Delivery Mode, this 
rule change proposes to reduce to zero the rebate for adding 
liquidity from 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.
---------------------------------------------------------------------------

    In addition, with respect to Tape B and C 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 for Tape B and C securities, regardless of price. 
This credit is proposed to be eliminated for all Tape B and C 
securities executed in Order Delivery Mode, regardless of price, which 
effectively eliminates tape revenue sharing in Order Delivery Mode.\5\
---------------------------------------------------------------------------

    \5\ Pursuant to SR-NSX-2008-17, the Exchange previously 
eliminated the tape revenue sharing credit program for all Tape A 
securities in Order Delivery Mode.
---------------------------------------------------------------------------

    Because as a result of the proposed rule change there would be no 
tape credit sharing program under either Order Delivery Mode or 
Automatic Execution mode of order interaction (``AutoEx''), the instant 
rule filing proposes to simplify Rule 16.2 by eliminating the text of 
Rule 16.2(b) (``Tape Credits'') in its entirety. To the extent that the 
Consolidated Tape Association or the Nasdaq Securities Information 
Processor subsequently adjusts any Tape A, Tape B or Tape C revenue 
earned by the Exchange for any period(s) during which the tape revenue 
credit program was in effect, credits paid to ETP Holders would be 
adjusted, as necessary, in accordance with the rules in effect during 
such period, including the ``De Minimis Credits'' rule under current 
Rule 16.2(b)(5) which establishes an eligibility threshold of $250 per 
calendar quarter for participation in the tape credit program.

No Changes to Automatic Execution Mode

    For purposes of clarity, the proposed rule change proposes no 
modifications to the fees and rebates relating to any trades in AutoEx.

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 all 
tapes through the Order Delivery Mode, through AutoEx, 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 
November 6, 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 post a 
copy of the rule filing on the Exchange's Web site (www.nsx.com).
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the provisions of Section 6(b) of the

[[Page 69704]]

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 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 or AutoEx 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.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

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 \8\ and subparagraph (f)(2) of Rule 
19b-4 \9\ thereunder, because, as provided in (f)(2), it changes ``a 
due, fee or other charge 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.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \9\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

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-2008-19 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-2008-19. 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 you wish to make available publicly. All 
submissions should refer to File Number SR-NSX-2008-19 and should be 
submitted on or before December 10, 2008.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
---------------------------------------------------------------------------

    \10\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-27428 Filed 11-18-08; 8:45 am]
BILLING CODE 8011-01-P

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