Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by NYSE Alternext U.S. LLC To Adopt a Price List for Equity Transactions after the Relocation of NYSE Alternext Equities Trading and To Establish Certain Other Fees, 75151-75154 [E8-29137]
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Federal Register / Vol. 73, No. 238 / Wednesday, December 10, 2008 / Notices
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–59045; File No. SR–
NYSEALTR–2008–09]
Self-Regulatory Organizations; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change by NYSE
Alternext U.S. LLC To Adopt a Price
List for Equity Transactions after the
Relocation of NYSE Alternext Equities
Trading and To Establish Certain Other
Fees
December 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
November 28, 2008, NYSE Alternext
U.S. LLC (the ‘‘Exchange’’ or ‘‘NYSE
Alternext’’) 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 Exchange. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to adopt a
new equities pricing schedule
applicable to NYSE Alternext members
after the relocation of all equities
trading currently conducted on or
through the American Stock Exchange
legacy trading systems and facilities
located at 86 Trinity Place, New York,
New York, to the NYSE trading facilities
and systems located at 11 Wall Street,
New York, New York (the ‘‘NYSE
Alternext Trading Systems’’), which
will be operated by the NYSE on behalf
of NYSE Alternext (the ‘‘Equities
Relocation’’) and to make changes to the
NYSE Alternext U.S. Price List to reflect
the fact that it will relate only to options
trading after the Equities Relocation (to
be renamed the ‘‘NYSE Alternext
Options Price List’’). The text of the
proposed rule change is available on the
Exchange’s Web site (https://
www.amex.com), at the Exchange’s
Office of the Secretary, 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
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 these statements may be examined at
the places specified in Item IV below.
NYSE Alternext has prepared
summaries, set forth in Sections A, B
and C below, of the most significant
aspects of such statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
NYSE Alternext proposes to adopt a
new pricing schedule (the ‘‘NYSE
Equity per Share Credit—per transaction—when adding liquidity ......................
Agency cross trades (i.e., a trade where a Member Organization has customer
orders to buy and sell an equivalent amount of the same security) of 10,000
shares or more.
Non-electronic agency transactions of 10,000 shares or more between floor
brokers in the crowd.
At the opening or at the opening only orders ........................................................
Equity per Share Charge—per transaction (charged to both sides)—for all odd
lot transactions (including the odd lot portions of partial round lots).
Equity per Share charge—market at-the-close and limit at-the-close orders .......
Equity per Share Charge—Agency cross trades of less than 10,000 shares .........
Equity per Share Charge for all other transactions (i.e., when taking liquidity
from the Exchange)—per transaction.
Routing Fee 4—per share (except floor brokers) .....................................................
Routing Fee—per share (floor brokers) ...................................................................
mstockstill on PROD1PC66 with NOTICES
Member organizations other than
DMMs will be subject to the following
1 15
2 17
U.S.C. 78s(b)(1).
CFR 240.19b–4.
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PO 00000
Frm 00075
Fmt 4703
Sfmt 4703
Equity Transaction Fees
Member organizations other than
Designated Market Makers (‘‘DMMs’’)
will be subject to the following schedule
of fees and rebates with respect to
transactions in equity securities 3 with a
trading price of $1.00 or more:
No Charge.
No Charge.
$0.0010.
$0.0005.
$0.0005.
$0.0025.
$0.0030.
$0.0029.
securities with a trading price less than
$1.00:
No Charge.
0.25% of total dollar value of the transaction.
3 Equity transaction fees apply to transactions in
rights, warrants and closed end funds.
4 All routing fees set forth in the NYSE Alternext
Equities Price List apply to all orders routed from
Jkt 217001
Alternext Equities Price List’’)
applicable to Exchange members
engaging in equities transactions after
the Equities Relocation and to make
changes to the NYSE Alternext U.S.
Price List to reflect the fact that it will
relate only to options trading after the
Equities Relocation and will be renamed
the NYSE Alternext Options Price List.
While the specific amounts of the
transaction fees and credits are different
on the proposed NYSE Alternext
Equities Price List from those on the
NYSE price list, the proposed NYSE
Alternext Equities Price List has been
structured so as to be generally similar
to the NYSE Price List. This is
particularly appropriate because
member organizations of NYSE
Alternext that trade equities after the
Equities Relocation and NYSE member
organizations will all become member
organizations of both exchanges at the
time of the Equities Relocation. This
dual membership structure will allow
all member organizations to trade on
both exchanges and makes it desirable
to harmonize the pricing structures of
the two exchanges as much as possible.
$0.0015.
No Charge.
schedule of fees and rebates with
respect to transactions in equity
Equity per Share Charge when adding liquidity to the Exchange ........................
Equity per Share Charge when taking liquidity from the Exchange—per transaction.
75151
NYSE Alternext and executed in another market.
Routing Fees are in lieu of NYSE Alternext
transaction charges.
E:\FR\FM\10DEN1.SGM
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75152
Federal Register / Vol. 73, No. 238 / Wednesday, December 10, 2008 / Notices
Equity per Share Charge—Market at the Close and Limit at the Close Orders ...
Equity per Share Charge—per transaction (charged to both sides)—for all odd
lot transactions (including the odd lot portions of partial round lots).
Routing Fee—per share ............................................................................................
DMMs will be subject to the following
schedule of fees and rebates with
respect to transactions in equity
securities with a trading price of $1.00
or more:
Equity per Share Charge when taking liquidity from the Exchange ....................
Equity per Share Credit 5 when adding liquidity to the Exchange .......................
Executions at the opening .......................................................................................
Equity per Share Credit—per transaction—for all odd lot transactions (including the odd lot portions of partial round lots).
Equity per Share Credit for executions at the close ..............................................
Routing Fee—per Share Charge ..............................................................................
DMMs will be subject to the following
schedule of fees and rebates with
respect to transactions in equity
mstockstill on PROD1PC66 with NOTICES
VerDate Aug<31>2005
16:49 Dec 09, 2008
Jkt 217001
No Charge.
0.15% of the total dollar value of the transaction.
0.3% of the total dollar value of the transaction.
Frm 00076
Fmt 4703
Sfmt 4703
NYSE Alternext Bonds System
Transactions on the NYSE Alternext
Bonds System will be subject to the
following fee schedule:
$0.50 per bond.
$0.20 per bond.
$0.10 per bond.
will pay the same fees as NYSE member
organizations in relation to their
employees working on the trading floor
and equipment used on the trading
floor. The applicable charges are as
follows:
$1,000.00.
$408.50.
$139.75.
$480.00.
Direct Pass Through.7
$0.16.
$0.26.
or, prior to the implementation of the Capital
Commitment Schedule, using the following
message activities: Price improvement, size
improvement (PRIN FILL), matching away market
quotes; (iii) when executing trades in the crowd and
PO 00000
Crossing Session I (single stocks) or
Crossing Session II (portfolios).
$5,000.00 per year.
Floor Fees
As NYSE Alternext equities trading
will take place in the NYSE trading
facilities after the Equities Relocation,
NYSE Alternext member organizations
conducting an equities trading business
Clerk Badge Fee:
Annual Fee per Clerk .......................................................................................
Radio Paging Service:
Base charge (unit and first channel) ................................................................
Each additional channel ...................................................................................
Financial Vendor Services:
Administrative Fee Per ITPN User 6 ................................................................
Various Products ...............................................................................................
Member Telephone Service:
Toll call amount billed by Verizon plus a per call surcharge on:
Toll calls $0.69 and below ...............................................................................
Toll calls greater than $0.69 .............................................................................
Cellular Phones:
5 Rebates will be applied when (i) Posting
displayed and non-displayed orders on Display
Book, including s-quote and s-quote reserve orders;
(ii) when providing liquidity on non-displayed
interest using the Capital Commitment Schedule;
$0.0005.
$0.0030.
meets the quoting requirement of Rule
104(a)(1)(A) for that specific security.
However the DMM quoting requirement
for securities trading below $1.00 will
not come into effect until after the first
two months of operation.
Crossing sessions. There will be no
fees with respect to transactions in
Exchange-Sponsored Graphic User Interface ‘‘GUI’’ .............................................
Execution Fee per bond for orders that take liquidity from the NYSE Alternext
Bonds Book (effective through December 31, 2008):
Orders of one to ten (10) bonds .......................................................................
Orders of eleven (11) to twenty-five (25) bonds .............................................
Orders of twenty-six (26) bonds or more ........................................................
Transaction fees on bond transactions
are subject to a $100.00 maximum fee
per transaction (through December 31,
2008).
$0.0015.
$0.0035.
No Charge.
$0.0005.
securities with a trading price less than
$1.00:
Equity per Share Charge when taking liquidity from the Exchange ....................
Equity per Share Credit when adding liquidity to the Exchange .........................
Routing Fee—per Share Charge ..............................................................................
Each DMM will receive all of the
market data quote revenue (the
‘‘Quoting Share’’) received by the
Exchange from the Consolidated Tape
Association under the Revenue
Allocation Formula of Regulation NMS
with respect to any security (with a
trading price either above or below
$1.00) in any month in which the DMM
The lesser of (i) $0.0005 per share, and (ii) 0.25% of the
total dollar value of the transaction.
The lesser of (i) $0.0010 per share, and (ii) 0.25% of the
total dollar value of the transaction.
0.3% of the total dollar value of the transaction.
at Liquidity Replenishment Points; and (iv) when
providing liquidity on market-at-the-close and
limit-at-the-close transactions. Rebates will not
apply to executions at the open.
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Federal Register / Vol. 73, No. 238 / Wednesday, December 10, 2008 / Notices
Phone and Headset ...........................................................................................
Ongoing Maintenance—per phone ..................................................................
Booth Telephone System:
Annual Telephone Line Charge .......................................................................
Single line phone, jack, and data jack .............................................................
Service Charges 9:
Install single jack (voice or data) .....................................................................
Relocate jack ......................................................................................................
Remove jack ......................................................................................................
Install voice or data line ...................................................................................
Disconnect data line .........................................................................................
Change phone line subscriber ..........................................................................
Miscellaneous telephone charges 10
Broker Subscriber Service:
e-Broker Hand Held Device (annual charge per handheld device) ...............
System Processing Fees
Online Comparison System (OCS):
Transaction Fees:
Next Day Submission (Adds or Adjustments) and Questioned Trade:
Charge—per submission or questioned trade .................................................
Step Out Charge (Adds or Adjustments)—per transaction ............................
Transactions submitted to the Exchange for trade date comparison
(Adds)—per submission.
Merged Order Report:
Charge per copy (other than first copy):
Machine Readable Output and Print Image Transmission ............................
Hard Copy .........................................................................................................
Other Changes
The sections of the NYSE Alternext
U.S. Price List in place prior to the
Equities Relocation that set forth the
Network B market data fees and the
equity listing fees are included in the
proposed NYSE Alternext Equities Price
List. No changes are being made to any
of these fees in this filing. Pricing for
Exchange publications, including copies
of the Exchange’s Rule Book and
Company Guide, will be included in
both the equities and options price lists
going forward.
mstockstill on PROD1PC66 with NOTICES
Options Price List
The NYSE Alternext U.S. Price List in
effect prior to the Equities Relocation is
being renamed the NYSE Alternext
Options Price List. All pricing
information relating to the trading of
securities other than options is being
deleted and either (i) moved to the
NYSE Alternext Equities Price List or
replaced with new fees as discussed
above or (ii) eliminated as no longer
relevant.11
6 ITPN ‘‘User’’ is a member or person associated
with a member, who has been entitled to receive
one or more third party market data vendor service
offerings via the Exchange’s Integrated Technology
Program Network.
7 Plus appropriate sales tax where applicable.
8 Plus sales tax.
9 The Exchange will make all efforts to perform
services during hours covered by the maintenance
contract; however, tasks performed during overtime
hours will be billed at a rate of 25% above the
normal service charge.
10 To be billed at $106 per hour in 15 minute
increments.
11 Pricing for Exchange Traded Fund and
Exchange Traded Notes is eliminated because those
securities will not be traded on the Exchange after
VerDate Aug<31>2005
16:49 Dec 09, 2008
Jkt 217001
No Charge.
$240.00.8
$400.00 per phone number.
$129.00.
$161.25.
$107.50.
$53.75.
$107.50.
$53.75.
$53.75.
$5,000.00.
$0.50.
$0.25.
$0.10.
$3.00 per 1,000 records.
$4.50 per 1,000 lines.
Regulatory Fees
NYSE Alternext Equities Rule 2
provides that, at the time of the Equities
Relocation, all NYSE member
organizations will automatically become
NYSE Alternext member organizations.
By acquiring NYSE Alternext
membership, the NYSE member
organizations that were not previously
NYSE Alternext members would
become subject to the NYSE Alternext
registration fees for all of their
employees who serve as registered
representatives. As these NYSE member
organizations that have no NYSE
Alternext business prior to the Equities
Relocation will become NYSE Alternext
members without any action on their
own part, NYSE Alternext will waive
the application of its registered
representative fees to those firms for the
month of December. NYSE Alternext
expects to submit a filing to adopt a
revised registered representative fee
commencing January 1, 2009.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the provisions of Section 6 12 of the Act
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
the Relocation. Similarly, the Exchange will not
facilitate UTP trading after the Relocation, so the
pricing for the New UTP Trading Platform is no
longer relevant. Consistent with the NYSE Price
List, the NYSE Alternext U.S. Equities Price List
will not make reference to Section 31 fees collected
by the Exchange for payment to the Commission.
12 15 U.S.C. 78f.
PO 00000
Frm 00077
Fmt 4703
Sfmt 4703
75153
using its facilities. The Exchange
believes that the proposal does not
constitute an inequitable allocation of
dues, fees and other charges as the same
fees will be charged to all member
organizations.
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
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 foregoing rule change is effective
upon filing pursuant to Section
19(b)(3)(A) 13 of the Act and Rule 19b–
4(f)(2) 14 thereunder.
At any time within 60 days of the
filing of the proposed rule change, the
Commission may summarily abrogate
such rule change if it appears to the
Commission that such action is
necessary or appropriate in the public
interest, for the protection of investors,
or otherwise in furtherance of the
purposes of the Act.
13 15
14 17
E:\FR\FM\10DEN1.SGM
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(2).
10DEN1
75154
Federal Register / Vol. 73, No. 238 / Wednesday, December 10, 2008 / 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:
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.15
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–29137 Filed 12–9–08; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
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–NYSEALTR–2008–09 on
the subject line.
Paper Comments
[Release No. 34–59049; File No. SR–
NYSEArca–2008–132]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Offer a New Order
Type Known as the Adding Liquidity
Only Order
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street, NE.,
Washington, DC 20549–1090.
December 3, 2008.
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–
NYSEALTR–2008–09 and should be
submitted on or before December 31,
2008.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
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 November
All submissions should refer to File
21, 2008, NYSE Arca, Inc. (‘‘NYSE
Number SR–NYSEALTR–2008–09. This Arca’’ or ‘‘Exchange’’) filed with the
file number should be included on the
Securities and Exchange Commission
subject line if e-mail is used. To help the (‘‘Commission’’) the proposed rule
change as described in Items I and II
Commission process and review your
below, which Items have been prepared
comments more efficiently, please use
only one method. The Commission will by NYSE Arca. NYSE Arca filed the
post all comments on the Commission’s proposed rule change pursuant to
Section 19(b)(3)(A) of the Act 3 and Rule
Internet Web site (https://www.sec.gov/
19b–4(f)(6) thereunder,4 which renders
rules/sro.shtml). Copies of the
it effective upon filing with the
submission, all subsequent
Commission. The Commission is
amendments, all written statements
publishing this notice to solicit
with respect to the proposed rule
comments on the proposed rule change
change that are filed with the
from interested persons.
Commission, and all written
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16:49 Dec 09, 2008
Jkt 217001
The Exchange proposes to amend
Rule 7.31 in order to offer a new order
type known as the Adding Liquidity
Only order. The text of the proposed
rule change is attached as Exhibit 5. A
copy of this filing is available on the
Exchange’s Web site at https://
www.nyse.com, at the Exchange’s
principal office 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,
NYSE Arca included statements
concerning the purpose of, and basis for,
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(6).
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. NYSE
Arca has prepared summaries, set forth
in Sections A, B, and C below, of the
most significant aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
In order to provide additional
flexibility and increased functionality to
its system and its Users,5 the Exchange
proposes to add NYSE Arca Equities
Rule 7.31(nn) in order to offer an
additional order type known as the
Adding Liquidity Only (‘‘ALO’’) order.
The ALO is a limit order that is
posted to the NYSE Arca book only in
the event that the order adds liquidity.
If the order received is marketable (at or
outside of the NBBO) at the time of
entry, the entire order will be rejected.
Any order at the time of entry that will
lock or cross the market will be rejected.
ALO orders that, at the time of entry,
would otherwise interact with undisplayed orders will be rejected.
Once accepted and placed in the
NYSE Arca book, ALO orders will not
route to an away market center. Also,
once an ALO order posts to the NYSE
Arca book, if the market moves and
thereby causes either a locked or
crossed market, the ALO will stand its
ground.
ALO Orders are designed to
encourage displayed liquidity and offer
NYSE Arca Users greater discretion and
flexibility to post liquidity on NYSE
Arca.
2. Statutory Basis
The proposed rule change is
consistent with Section 6(b) of the Act,6
in general, and furthers the objectives of
Section 6(b)(5),7 in particular, in that it
is designed to prevent fraudulent and
manipulative acts and practices, to
promote just and equitable principles of
trade, to foster cooperation and
coordination with persons engaged in
facilitating transactions in securities,
and to remove impediments to and
perfect the mechanisms of a free and
open market and a national market
system. Specifically, the ALO order is
designed to encourage displayed
15 17
1 15
PO 00000
Frm 00078
Fmt 4703
Sfmt 4703
5 See NYSE Arca Rule 1.1(yy) for the definition
of ‘‘User.’’
6 15 U.S.C. 78f(b).
7 15 U.S.C. 78f(b)(5).
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]]>Agencies
[Federal Register Volume 73, Number 238 (Wednesday, December 10, 2008)]
[Notices]
[Pages 75151-75154]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-29137]
[[Page 75151]]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-59045; File No. SR-NYSEALTR-2008-09]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by NYSE Alternext U.S. LLC To
Adopt a Price List for Equity Transactions after the Relocation of NYSE
Alternext Equities Trading and To Establish Certain Other Fees
December 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 November 28, 2008, NYSE Alternext U.S. LLC (the ``Exchange''
or ``NYSE Alternext'') 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
Exchange. The Commission is publishing this notice to solicit comments
on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to adopt a new equities pricing schedule
applicable to NYSE Alternext members after the relocation of all
equities trading currently conducted on or through the American Stock
Exchange legacy trading systems and facilities located at 86 Trinity
Place, New York, New York, to the NYSE trading facilities and systems
located at 11 Wall Street, New York, New York (the ``NYSE Alternext
Trading Systems''), which will be operated by the NYSE on behalf of
NYSE Alternext (the ``Equities Relocation'') and to make changes to the
NYSE Alternext U.S. Price List to reflect the fact that it will relate
only to options trading after the Equities Relocation (to be renamed
the ``NYSE Alternext Options Price List''). The text of the proposed
rule change is available on the Exchange's Web site (https://
www.amex.com), at the Exchange's Office of the Secretary, 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 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 these statements may be examined at
the places specified in Item IV below. NYSE Alternext has prepared
summaries, set forth in Sections A, B and C below, of the most
significant aspects of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
NYSE Alternext proposes to adopt a new pricing schedule (the ``NYSE
Alternext Equities Price List'') applicable to Exchange members
engaging in equities transactions after the Equities Relocation and to
make changes to the NYSE Alternext U.S. Price List to reflect the fact
that it will relate only to options trading after the Equities
Relocation and will be renamed the NYSE Alternext Options Price List.
While the specific amounts of the transaction fees and credits are
different on the proposed NYSE Alternext Equities Price List from those
on the NYSE price list, the proposed NYSE Alternext Equities Price List
has been structured so as to be generally similar to the NYSE Price
List. This is particularly appropriate because member organizations of
NYSE Alternext that trade equities after the Equities Relocation and
NYSE member organizations will all become member organizations of both
exchanges at the time of the Equities Relocation. This dual membership
structure will allow all member organizations to trade on both
exchanges and makes it desirable to harmonize the pricing structures of
the two exchanges as much as possible.
Equity Transaction Fees
Member organizations other than Designated Market Makers (``DMMs'')
will be subject to the following schedule of fees and rebates with
respect to transactions in equity securities \3\ with a trading price
of $1.00 or more:
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\3\ Equity transaction fees apply to transactions in rights,
warrants and closed end funds.
Equity per Share Credit--per transaction-- $0.0015.
when adding liquidity.
Agency cross trades (i.e., a trade where a No Charge.
Member Organization has customer orders
to buy and sell an equivalent amount of
the same security) of 10,000 shares or
more.
Non-electronic agency transactions of No Charge.
10,000 shares or more between floor
brokers in the crowd.
At the opening or at the opening only No Charge.
orders.
Equity per Share Charge--per transaction $0.0010.
(charged to both sides)--for all odd lot
transactions (including the odd lot
portions of partial round lots).
Equity per Share charge--market at-the- $0.0005.
close and limit at-the-close orders.
Equity per Share Charge--Agency cross $0.0005.
trades of less than 10,000 shares.
Equity per Share Charge for all other $0.0025.
transactions (i.e., when taking liquidity
from the Exchange)--per transaction.
Routing Fee \4\--per share (except floor $0.0030.
brokers).
Routing Fee--per share (floor brokers).... $0.0029.
Member organizations other than DMMs will be subject to the
following schedule of fees and rebates with respect to transactions in
equity securities with a trading price less than $1.00:
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\4\ All routing fees set forth in the NYSE Alternext Equities
Price List apply to all orders routed from NYSE Alternext and
executed in another market. Routing Fees are in lieu of NYSE
Alternext transaction charges.
Equity per Share Charge when adding No Charge.
liquidity to the Exchange.
Equity per Share Charge when taking 0.25% of total dollar value
liquidity from the Exchange--per of the transaction.
transaction.
[[Page 75152]]
Equity per Share Charge--Market at the The lesser of (i) $0.0005
Close and Limit at the Close Orders. per share, and (ii) 0.25%
of the total dollar value
of the transaction.
Equity per Share Charge--per transaction The lesser of (i) $0.0010
(charged to both sides)--for all odd lot per share, and (ii) 0.25%
transactions (including the odd lot of the total dollar value
portions of partial round lots). of the transaction.
Routing Fee--per share.................... 0.3% of the total dollar
value of the transaction.
DMMs will be subject to the following schedule of fees and rebates
with respect to transactions in equity securities with a trading price
of $1.00 or more:
Equity per Share Charge when taking $0.0015.
liquidity from the Exchange.
Equity per Share Credit \5\ when adding $0.0035.
liquidity to the Exchange.
Executions at the opening................. No Charge.
Equity per Share Credit--per transaction-- $0.0005.
for all odd lot transactions (including
the odd lot portions of partial round
lots).
Equity per Share Credit for executions at $0.0005.
the close.
Routing Fee--per Share Charge............. $0.0030.
DMMs will be subject to the following schedule of fees and rebates
with respect to transactions in equity securities with a trading price
less than $1.00:
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\5\ Rebates will be applied when (i) Posting displayed and non-
displayed orders on Display Book, including s-quote and s-quote
reserve orders; (ii) when providing liquidity on non-displayed
interest using the Capital Commitment Schedule; or, prior to the
implementation of the Capital Commitment Schedule, using the
following message activities: Price improvement, size improvement
(PRIN FILL), matching away market quotes; (iii) when executing
trades in the crowd and at Liquidity Replenishment Points; and (iv)
when providing liquidity on market-at-the-close and limit-at-the-
close transactions. Rebates will not apply to executions at the
open.
Equity per Share Charge when taking No Charge.
liquidity from the Exchange.
Equity per Share Credit when adding 0.15% of the total dollar
liquidity to the Exchange. value of the transaction.
Routing Fee--per Share Charge............. 0.3% of the total dollar
value of the transaction.
Each DMM will receive all of the market data quote revenue (the
``Quoting Share'') received by the Exchange from the Consolidated Tape
Association under the Revenue Allocation Formula of Regulation NMS with
respect to any security (with a trading price either above or below
$1.00) in any month in which the DMM meets the quoting requirement of
Rule 104(a)(1)(A) for that specific security. However the DMM quoting
requirement for securities trading below $1.00 will not come into
effect until after the first two months of operation.
Crossing sessions. There will be no fees with respect to
transactions in Crossing Session I (single stocks) or Crossing Session
II (portfolios).
NYSE Alternext Bonds System
Transactions on the NYSE Alternext Bonds System will be subject to
the following fee schedule:
Exchange-Sponsored Graphic User Interface $5,000.00 per year.
``GUI''.
Execution Fee per bond for orders that
take liquidity from the NYSE Alternext
Bonds Book (effective through December
31, 2008):
Orders of one to ten (10) bonds....... $0.50 per bond.
Orders of eleven (11) to twenty-five $0.20 per bond.
(25) bonds.
Orders of twenty-six (26) bonds or $0.10 per bond.
more.
Transaction fees on bond transactions are subject to a $100.00
maximum fee per transaction (through December 31, 2008).
Floor Fees
As NYSE Alternext equities trading will take place in the NYSE
trading facilities after the Equities Relocation, NYSE Alternext member
organizations conducting an equities trading business will pay the same
fees as NYSE member organizations in relation to their employees
working on the trading floor and equipment used on the trading floor.
The applicable charges are as follows:
Clerk Badge Fee:
Annual Fee per Clerk.................. $1,000.00.
Radio Paging Service:
Base charge (unit and first channel).. $408.50.
Each additional channel............... $139.75.
Financial Vendor Services:
Administrative Fee Per ITPN User \6\.. $480.00.
Various Products...................... Direct Pass Through.\7\
Member Telephone Service:
Toll call amount billed by Verizon plus a
per call surcharge on:
Toll calls $0.69 and below............ $0.16.
Toll calls greater than $0.69......... $0.26.
Cellular Phones:
[[Page 75153]]
Phone and Headset..................... No Charge.
Ongoing Maintenance--per phone........ $240.00.\8\
Booth Telephone System:
Annual Telephone Line Charge.......... $400.00 per phone number.
Single line phone, jack, and data jack $129.00.
Service Charges \9\:
Install single jack (voice or data)... $161.25.
Relocate jack......................... $107.50.
Remove jack........................... $53.75.
Install voice or data line............ $107.50.
Disconnect data line.................. $53.75.
Change phone line subscriber.......... $53.75.
Miscellaneous telephone charges \10\
Broker Subscriber Service:
e-Broker Hand Held Device (annual $5,000.00.
charge per handheld device).
System Processing Fees
Online Comparison System (OCS):
Transaction Fees:
Next Day Submission (Adds or Adjustments)
and Questioned Trade:
Charge--per submission or questioned $0.50.
trade.
Step Out Charge (Adds or Adjustments)-- $0.25.
per transaction.
Transactions submitted to the Exchange $0.10.
for trade date comparison (Adds)--per
submission.
Merged Order Report:
Charge per copy (other than first copy):
Machine Readable Output and Print $3.00 per 1,000 records.
Image Transmission.
Hard Copy............................. $4.50 per 1,000 lines.
Other Changes
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\6\ ITPN ``User'' is a member or person associated with a
member, who has been entitled to receive one or more third party
market data vendor service offerings via the Exchange's Integrated
Technology Program Network.
\7\ Plus appropriate sales tax where applicable.
\8\ Plus sales tax.
\9\ The Exchange will make all efforts to perform services
during hours covered by the maintenance contract; however, tasks
performed during overtime hours will be billed at a rate of 25%
above the normal service charge.
\10\ To be billed at $106 per hour in 15 minute increments.
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The sections of the NYSE Alternext U.S. Price List in place prior
to the Equities Relocation that set forth the Network B market data
fees and the equity listing fees are included in the proposed NYSE
Alternext Equities Price List. No changes are being made to any of
these fees in this filing. Pricing for Exchange publications, including
copies of the Exchange's Rule Book and Company Guide, will be included
in both the equities and options price lists going forward.
Options Price List
The NYSE Alternext U.S. Price List in effect prior to the Equities
Relocation is being renamed the NYSE Alternext Options Price List. All
pricing information relating to the trading of securities other than
options is being deleted and either (i) moved to the NYSE Alternext
Equities Price List or replaced with new fees as discussed above or
(ii) eliminated as no longer relevant.\11\
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\11\ Pricing for Exchange Traded Fund and Exchange Traded Notes
is eliminated because those securities will not be traded on the
Exchange after the Relocation. Similarly, the Exchange will not
facilitate UTP trading after the Relocation, so the pricing for the
New UTP Trading Platform is no longer relevant. Consistent with the
NYSE Price List, the NYSE Alternext U.S. Equities Price List will
not make reference to Section 31 fees collected by the Exchange for
payment to the Commission.
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Regulatory Fees
NYSE Alternext Equities Rule 2 provides that, at the time of the
Equities Relocation, all NYSE member organizations will automatically
become NYSE Alternext member organizations. By acquiring NYSE Alternext
membership, the NYSE member organizations that were not previously NYSE
Alternext members would become subject to the NYSE Alternext
registration fees for all of their employees who serve as registered
representatives. As these NYSE member organizations that have no NYSE
Alternext business prior to the Equities Relocation will become NYSE
Alternext members without any action on their own part, NYSE Alternext
will waive the application of its registered representative fees to
those firms for the month of December. NYSE Alternext expects to submit
a filing to adopt a revised registered representative fee commencing
January 1, 2009.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the provisions of Section 6 \12\ of the Act 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. The Exchange believes that the proposal does not
constitute an inequitable allocation of dues, fees and other charges as
the same fees will be charged to all member organizations.
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\12\ 15 U.S.C. 78f.
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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
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 foregoing rule change is effective upon filing pursuant to
Section 19(b)(3)(A) \13\ of the Act and Rule 19b-4(f)(2) \14\
thereunder.
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\13\ 15 U.S.C. 78s(b)(3)(A).
\14\ 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.
[[Page 75154]]
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-NYSEALTR-2008-09 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-NYSEALTR-2008-09. 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-NYSEALTR-2008-09 and should be submitted on or before
December 31, 2008.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
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\15\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-29137 Filed 12-9-08; 8:45 am]
BILLING CODE 8011-01-P
