Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Order Granting Accelerated Approval of Proposed Rule Change To Extend the Pilot Period for the NYSE Realtime Reference Prices Pilot Program, 749-751 [E9-9]
Download as PDF
<![CDATA[
Federal Register / Vol. 74, No. 4 / Wednesday, January 7, 2009 / Notices
the provisions of Section 6 of the Act 5
in general and furthers the objectives of
Section 6(b)(4) of the Act 6 in particular,
in that it is designed to provide for the
equitable allocation of reasonable dues,
fees, and other charges among its
members and other persons using its
facilities.
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 purposes of the Act.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
No written comments were solicited
or received with respect to the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing rule change
establishes or changes a due, fee, or
other charge imposed by the Exchange,
it has become effective pursuant to
Section 19(b)(3)(A) of the Act 7 and
subparagraph (f)(2) of Rule 19b–4
thereunder.8 At any time within 60 days
of the filing of the proposed rule change,
the Commission may summarily
abrogate such rule change if it appears
to the Commission that such action is
necessary or appropriate in the public
interest, for the protection of investors,
or otherwise in furtherance of the
purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–NYSE–2008–137 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
U.S.C. 78f.
6 15 U.S.C. 78f(b)(4).
7 15 U.S.C. 78s(b)(3)(A).
8 17 CFR 240.19b–4(f)(2).
VerDate Nov<24>2008
16:10 Jan 06, 2009
Commission, 100 F Street, NE.,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–NYSE–2008–137. This file
number should be included on the
subject line if e-mail is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for inspection and copying in
the Commission’s Public Reference
Room, 100 F Street, NE., Washington,
DC 20549, on official business days
between the hours of 10 a.m. and 3 p.m.
Copies of such filing also will be
available for inspection and copying at
the principal office of NYSE. 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–NYSE–2008–137 and
should be submitted on or before
January 28, 2009.
(‘‘Act’’)1 and Rule 19b–4 thereunder,2
notice is hereby given that on December
29, 2008, the New York Stock Exchange
LLC (‘‘NYSE’’ or the ‘‘Exchange’’) 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.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.9
Florence E. Harmon,
Acting Secretary.
[FR Doc. E9–4 Filed 1–6–09; 8:45 am]
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–59185; File No. SR–NYSE–
2008–141]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing and Order Granting Accelerated
Approval of Proposed Rule Change To
Extend the Pilot Period for the NYSE
Realtime Reference Prices Pilot
Program
December 30, 2008.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
5 15
9 17
Jkt 217001
749
PO 00000
CFR 200.30–3(a)(12).
Frm 00079
Fmt 4703
Sfmt 4703
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
NYSE proposes to extend the
expiration date of its pilot program for
the NYSE Realtime Reference Prices
service until March 31, 2009. 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.
1. Purpose
In File No. SR–NYSE–2007–04, the
Exchange established a pilot program
that allows the Exchange to test the
viability of a new NYSE-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 Realtime
Reference Prices’’) and to establish a flat
monthly fee for that service. The
Commission approved that pilot
program on June 16, 2008.3
The Exchange intends for the NYSE
Realtime Reference Prices service to
accomplish three goals:
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 See Securities Exchange Act Release No. 57966
(June 16, 2008), 73 FR 35182 (June 20, 2008) (SR–
NYSE–2007–04).
2 17
E:\FR\FM\07JAN1.SGM
07JAN1
750
Federal Register / Vol. 74, No. 4 / Wednesday, January 7, 2009 / Notices
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.4 and NYSE Arca, Inc.5 have
established.
The pilot program allows internet
service providers, traditional market
data vendors, and others to make
available NYSE Realtime Reference
Prices on a real-time basis.6 The NYSE
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 then extended
that end date to December 31, 2008.7
The Exchange now seeks to extend that
end date to March 31, 2009. 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)8 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)9 that
the rules of an exchange be designed to
promote just and equitable principles of
trade and not to permit unfair
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. 58444
(August 29, 2008), 73 FR 51872 (September 5, 2008)
(SR–NYSEArca–2008–96).
6 The Exchange notes that it will make the NYSE
Realtime Reference Prices available to vendors no
earlier than it makes those prices available to the
processor under the CTA Plan.
7 See Securities Exchange Act Release No. 58893
(October 31, 2008), 73 FR 66093 (November 6, 2008)
(SR–NYSE–2008–113).
8 15 U.S.C. 78f(b)(4).
9 15 U.S.C. 78f(b)(5).
VerDate Nov<24>2008
16:10 Jan 06, 2009
Jkt 217001
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
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 impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act.
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–NYSE–
2008–141 and should be submitted on
or before January 27, 2009.
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.
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 three months, is
consistent with the requirements of the
Act and the rules and regulations
III. Solicitation of Comments
thereunder applicable to a national
Interested persons are invited to
securities exchange.10 In particular, it is
submit written data, views, and
consistent with Section 6(b)(4) of the
arguments concerning the foregoing,
Act,11 which requires that the rules of
including whether the proposed rule
a national securities exchange provide
change is consistent with the Act.
for the equitable allocation of reasonable
Comments may be submitted by any of
dues, fees, and other charges among its
the following methods:
members and issuers and other parties
using its facilities, and Section 6(b)(5) of
Electronic Comments
the Act,12 which requires, among other
• Use the Commission’s Internet
things, that the rules of a national
comment form (https://www.sec.gov/
securities exchange be designed to
rules/sro.shtml); or
promote just and equitable principles of
• Send an e-mail to ruletrade, to remove impediments to and
comments@sec.gov. Please include File
perfect the mechanism of a free and
Number SR–NYSE–2008–141 on the
open market and a national market
subject line.
system and, in general, to protect
investors and the public interest, and
Paper Comments
not be designed to permit unfair
• Send paper comments in triplicate
discrimination between customers,
to Secretary, Securities and Exchange
issuers, brokers, or dealers.
Commission, 100 F Street, NE.,
The Commission also finds that the
Washington, DC 20549–1090.
proposed rule change is consistent with
All submissions should refer to File
the provisions of Section 6(b)(8) of the
Number SR–NYSE–2008–141. This file
Act,13 which requires that the rules of
number should be included on the
an exchange not impose any burden on
subject line if e-mail is used. To help the competition not necessary or
Commission process and review your
appropriate in furtherance of the
comments more efficiently, please use
purposes of the Act. Finally, the
only one method. The Commission will Commission finds that the proposed
post all comments on the Commission’s rule change is consistent with Rule
Internet Web site (https://www.sec.gov/
603(a) of Regulation NMS,14 adopted
rules/sro.shtml). Copies of the
under Section 11A(c)(1) of the Act,
submission, all subsequent
10 In approving this proposed rule change, the
amendments, all written statements
Commission has considered the proposed rule’s
with respect to the proposed rule
impact on efficiency, competition, and capital
change that are filed with the
formation. See 15 U.S.C. 78c(f).
Commission, and all written
11 15 U.S.C. 78f(b)(4).
communications relating to the
12 15 U.S.C. 78f(b)(5).
13 15 U.S.C. 78f(b)(8).
proposed rule change between the
14 17 CFR 242.603(a).
Commission and any person, other than
PO 00000
Frm 00080
Fmt 4703
Sfmt 4703
E:\FR\FM\07JAN1.SGM
07JAN1
Federal Register / Vol. 74, No. 4 / Wednesday, January 7, 2009 / Notices
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.15
The Commission approved the fee for
NYSE Realtime Reference Prices for a
pilot period which runs until December
31, 2008.16 The Commission notes that
the Exchange proposes to extend the
pilot program for three months. The
Exchange proposes no other changes to
the existing pilot program.
On December 2, 2008, the
Commission issued an approval order
(‘‘Order’’) that sets forth a market-based
approach for analyzing proposals by
self-regulatory organizations to impose
fees for ‘‘non-core’’ market data
products, such as NYSE Realtime
Reference Prices.17 The Commission
believes that NYSE’s proposal to
temporarily extend the pilot program is
consistent with the Act for the reasons
noted in the Order.18 The Commission
believes that approving NYSE’s
proposal to temporarily extend the pilot
program that imposes a fee for NYSE
Realtime Reference Prices for an
additional three months will be
beneficial to investors and in the public
interest, in that it is intended to allow
continued broad public dissemination
of increased real-time pricing
information. In addition, extending the
pilot program for an additional three
months will allow NYSE, consistent
with its representation,19 to file, the
public to comment on, and the
Commission to analyze consistent with
the Order and in light of Section 19(b)
of the Act, a proposal to permanently
approve the fee for NYSE Realtime
Reference Prices.
The Commission finds good cause for
approving the proposed rule change
before the thirtieth day after the date of
15 NYSE 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.
16 See supra notes 3 and 7. NYSE reduced the flat
monthly fee for NYSE Realtime Reference Prices
from $100,000 per month to $70,000 per month. See
Securities Exchange Act Release No. 58443 (August
29, 2008), 73 FR 52436 (September 9, 2008) (SR–
NYSE–2008–79).
17 See Securities Exchange Act Release No. 59039
(December 2, 2008), 73 FR 74770 (December 9,
2008) (Order Setting Aside Action by Delegated
Authority and Approving Proposed Rule Change
Relating to NYSE Arca Data).
18 See supra notes 3 and 7.
19 The Exchange represents that it intends to file
a proposal seeking permanent approval of NYSE
Realtime Reference Prices. Telephone conversation
between Ronald Jordan, Executive Vice President,
Market Data Services, NYSE Euronext, and John
Roeser, Assistant Director, Division of Trading and
Markets, Commission, on December 30, 2008.
VerDate Nov<24>2008
16:10 Jan 06, 2009
Jkt 217001
publication of notice of filing thereof in
the Federal Register. Accelerating
approval of this proposal is expected to
benefit investors by continuing to
facilitate their access to widespread,
free, real-time pricing information
contained in NYSE Realtime Reference
Prices. Therefore, the Commission finds
good cause, consistent with Section
19(b)(2) of the Act,20 to approve the
proposed rule change on an accelerated
basis to extend the operation of the pilot
until March 31, 2009.
V. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act, that the
proposed rule change (SR–NYSE–2008–
141) is hereby approved on an
accelerated basis until March 31, 2009.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.21
Florence E. Harmon,
Acting Secretary.
[FR Doc. E9–9 Filed 1–6–09; 8:45 am]
BILLING CODE 8011–01–P
751
Book Clerk program from January 1,
2009 through March 31, 2009.
The text of the proposed rule change
is available at https://www.nyse.com,
NYSE Alternext, and 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 those statements may be examined at
the places specified in Item IV below.
The Exchange has prepared summaries,
set forth in sections A, B, and C below,
of the most significant parts of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–59176; File No. SR–
NYSEALTR–2008–20]
Self-Regulatory Organizations; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change by NYSE
Alternext U.S. LLC Extending the
Implementation of the NYSE Alternext
Book Clerk Program From January 1,
2009 Through March 31, 2009
December 30, 2008.
Pursuant to Section 19(b)(1)1 of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that, on December
29, 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 and II below, which Items have
been prepared by NYSE Alternext. 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 extend the
implementation of the NYSE Alternext
20 15
U.S.C. 78s(b)(2).
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
21 17
PO 00000
Frm 00081
Fmt 4703
Sfmt 4703
The Commission previously approved
a proposed rule change by the American
Stock Exchange (‘‘Amex’’), the
predecessor of the Exchange before
Amex’s acquisition by NYSE Euronext,
Inc. on October 1, 2008 (the
‘‘Acquisition’’), to (1) Eliminate the
obligation and ability of an Amex
options specialist to act as an agent in
connection with orders in his or her
assigned options classes, (2) establish an
Amex Book Clerk (now NYSE Alternext
Book Clerk) program (‘‘ABC program’’)
to designate unaffiliated persons
responsible for operating and
maintaining the customer limit order
book and effecting proper executions,
and (3) amending certain Amex rules
relating to the operation of the ABC
program.4
Exchange Rule 995–ANTE originally
provided that the roll-out of the ABC
program would occur over a six-month
period ending on May 1, 2008. On May
1, 2008, Amex filed a proposal to extend
the roll-out of the ABC program from
May 2, 2008 through December 31,
2008, and that proposal was designated
by the Commission as operative upon
filing.5 Due to integration activities
subsequent to the Acquisition, the
Exchange seeks an additional extension
of the roll-out period from January 1,
4 See Securities Exchange Act Release No. 56804
(November 16, 2007), 72 FR 66002 (November 26,
2007) (SR–Amex–2006–107) (‘‘ABC Proposal’’).
5 See Securities Exchange Act Release No. 57770
(May 2, 2008), 73 FR 26452 (May 9, 2008) (SR–
Amex–2008–37).
E:\FR\FM\07JAN1.SGM
07JAN1
]]>Agencies
[Federal Register Volume 74, Number 4 (Wednesday, January 7, 2009)]
[Notices]
[Pages 749-751]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-9]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-59185; File No. SR-NYSE-2008-141]
Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing and Order Granting Accelerated Approval of Proposed
Rule Change To Extend the Pilot Period for the NYSE Realtime Reference
Prices Pilot Program
December 30, 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 December 29, 2008, the New York Stock Exchange LLC (``NYSE'' or the
``Exchange'') 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
NYSE proposes to extend the expiration date of its pilot program
for the NYSE Realtime Reference Prices service until March 31, 2009.
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-NYSE-2007-04, the Exchange established a pilot
program that allows the Exchange to test the viability of a new NYSE-
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 Realtime Reference Prices'') and to establish a flat
monthly fee for that service. The Commission approved that pilot
program on June 16, 2008.\3\
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release No. 57966 (June 16,
2008), 73 FR 35182 (June 20, 2008) (SR-NYSE-2007-04).
---------------------------------------------------------------------------
The Exchange intends for the NYSE Realtime Reference Prices service
to accomplish three goals:
[[Page 750]]
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.\4\ and NYSE Arca, Inc.\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. 58444 (August 29,
2008), 73 FR 51872 (September 5, 2008) (SR-NYSEArca-2008-96).
---------------------------------------------------------------------------
The pilot program allows internet service providers, traditional
market data vendors, and others to make available NYSE Realtime
Reference Prices on a real-time basis.\6\ The NYSE 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 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 then extended that end date to December 31,
2008.\7\ The Exchange now seeks to extend that end date to March 31,
2009. 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.
---------------------------------------------------------------------------
\7\ See Securities Exchange Act Release No. 58893 (October 31,
2008), 73 FR 66093 (November 6, 2008) (SR-NYSE-2008-113).
---------------------------------------------------------------------------
2. Statutory Basis
The basis under the Act for this proposed rule change is the
requirement under Section 6(b)(4)\8\ 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)\9\ 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.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78f(b)(4).
\9\ 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 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
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 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-NYSE-2008-141 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-NYSE-2008-141. 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-
NYSE-2008-141 and should be submitted on or before January 27, 2009.
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 three months, is consistent with the requirements of
the Act and the rules and regulations thereunder applicable to a
national securities exchange.\10\ In particular, it is consistent with
Section 6(b)(4) of the Act,\11\ 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,\12\ 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.
---------------------------------------------------------------------------
\10\ 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).
\11\ 15 U.S.C. 78f(b)(4).
\12\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
The Commission also finds that the proposed rule change is
consistent with the provisions of Section 6(b)(8) of the Act,\13\ 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,\14\ adopted under
Section 11A(c)(1) of the Act,
[[Page 751]]
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.\15\
---------------------------------------------------------------------------
\13\ 15 U.S.C. 78f(b)(8).
\14\ 17 CFR 242.603(a).
\15\ NYSE 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.
---------------------------------------------------------------------------
The Commission approved the fee for NYSE Realtime Reference Prices
for a pilot period which runs until December 31, 2008.\16\ The
Commission notes that the Exchange proposes to extend the pilot program
for three months. The Exchange proposes no other changes to the
existing pilot program.
---------------------------------------------------------------------------
\16\ See supra notes 3 and 7. NYSE reduced the flat monthly fee
for NYSE Realtime Reference Prices from $100,000 per month to
$70,000 per month. See Securities Exchange Act Release No. 58443
(August 29, 2008), 73 FR 52436 (September 9, 2008) (SR-NYSE-2008-
79).
---------------------------------------------------------------------------
On December 2, 2008, the Commission issued an approval order
(``Order'') that sets forth a market-based approach for analyzing
proposals by self-regulatory organizations to impose fees for ``non-
core'' market data products, such as NYSE Realtime Reference
Prices.\17\ The Commission believes that NYSE's proposal to temporarily
extend the pilot program is consistent with the Act for the reasons
noted in the Order.\18\ The Commission believes that approving NYSE's
proposal to temporarily extend the pilot program that imposes a fee for
NYSE Realtime Reference Prices for an additional three months will be
beneficial to investors and in the public interest, in that it is
intended to allow continued broad public dissemination of increased
real-time pricing information. In addition, extending the pilot program
for an additional three months will allow NYSE, consistent with its
representation,\19\ to file, the public to comment on, and the
Commission to analyze consistent with the Order and in light of Section
19(b) of the Act, a proposal to permanently approve the fee for NYSE
Realtime Reference Prices.
---------------------------------------------------------------------------
\17\ See Securities Exchange Act Release No. 59039 (December 2,
2008), 73 FR 74770 (December 9, 2008) (Order Setting Aside Action by
Delegated Authority and Approving Proposed Rule Change Relating to
NYSE Arca Data).
\18\ See supra notes 3 and 7.
\19\ The Exchange represents that it intends to file a proposal
seeking permanent approval of NYSE Realtime Reference Prices.
Telephone conversation between Ronald Jordan, Executive Vice
President, Market Data Services, NYSE Euronext, and John Roeser,
Assistant Director, Division of Trading and Markets, Commission, on
December 30, 2008.
---------------------------------------------------------------------------
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 is expected to benefit investors by continuing to
facilitate their access to widespread, free, real-time pricing
information contained in NYSE Realtime Reference Prices. Therefore, the
Commission finds good cause, consistent with Section 19(b)(2) of the
Act,\20\ to approve the proposed rule change on an accelerated basis to
extend the operation of the pilot until March 31, 2009.
---------------------------------------------------------------------------
\20\ 15 U.S.C. 78s(b)(2).
---------------------------------------------------------------------------
V. Conclusion
It is therefore ordered, pursuant to Section 19(b)(2) of the Act,
that the proposed rule change (SR-NYSE-2008-141) is hereby approved on
an accelerated basis until March 31, 2009.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\21\
Florence E. Harmon,
Acting Secretary.
---------------------------------------------------------------------------
\21\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
[FR Doc. E9-9 Filed 1-6-09; 8:45 am]
BILLING CODE 8011-01-P
