Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Implementing an Equity Transaction Fee for Shares Executed on or Through the New York Block Exchange Effective Upon Filing With the Commission, 6188-6189 [E9-2429]
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6188
Federal Register / Vol. 74, No. 23 / Thursday, February 5, 2009 / Notices
protection of investors and the public
interest to allow limited partnerships to
distribute annual reports to their limited
partners under the same terms and
conditions as Nasdaq’s other listed
operating companies. The Commission
believes that waiving the 30-day
operative delay for limited partnerships
will also allow these partnerships who
have just filed, or are about to file, their
annual reports with the Commission, to
immediately take advantage of the same
means of distribution under Nasdaq
rules that are available for any other
operating company. For these reasons,
the Commission designates that the
proposed rule change become operative
immediately upon filing.13
At any time within 60 days of the
filing of the proposed rule change, the
Commission may summarily abrogate
the 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–NASDAQ–2009–003 on the
subject line.
rwilkins on PROD1PC63 with NOTICES
Paper Comments
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
All submissions should refer to File
Number SR–NASDAQ–2009–003. 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
13 For
purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. 15 U.S.C. 78c(f).
VerDate Nov<24>2008
16:34 Feb 04, 2009
Jkt 217001
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–
NASDAQ–2009–003 and should be
submitted on or before February 26,
2009.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–2427 Filed 2–4–09; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–59327; File No. SR–NYSE–
2009–09]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change Implementing
an Equity Transaction Fee for Shares
Executed on or Through the New York
Block Exchange Effective Upon Filing
With the Commission
January 30, 2009.
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 January
28, 2009, New York Stock Exchange
LLC (‘‘NYSE’’ or the ‘‘Exchange’’) 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 selfregulatory organization. The
Commission is publishing this notice to
14 17
CFR 200.30–3(a)(12).
U.S.C.78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
1 15
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Frm 00056
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Sfmt 4703
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 implement
an equity transaction fee effective
January 29, 2009, for shares executed on
the New York Block Exchange SM
(‘‘NYBX’’ or the ‘‘Facility’’).4 The
Exchange will charge each Member
Organization $.0025 per share executed
on the NYBX.
The text of the proposed rule change
is available at https://www.nyse.com, the
Exchange, 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 the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to implement
an equity transaction fee for executions
on or through the New York Block
Exchange system with effect from the
scheduled launch date of January 29,
2009. The NYBX will be an electronic
facility of the Exchange to provide for
the continuous matching and execution
of securities listed on the NYSE of all
non-displayed orders with the aggregate
of all displayed and non-displayed
orders of the NYSE Display Book®
(‘‘Display Book’’ or ‘‘DBK’’) while also
considering protected quotations of all
automated trading centers (‘‘away
markets’’). The proposed transactional
fee of $.0025 per executed share will be
charged to both the buyer(s) and
seller(s) of the executed shares. The fee
will be charged for all executions of
NYBX orders, including those NYBX
executions that take place in the DBK or
4 See Securities Exchange Act Release No. 59281
(January 22, 2008) 74 FR 5014 (January 28, 2009)
(SR–NYSE–2008–120) and Securities Exchange Act
Release No. 59282 (January 22, 2009), 74 FR 5009
(January 28, 2009) (SR–NYSE–2008–119).
E:\FR\FM\05FEN1.SGM
05FEN1
Federal Register / Vol. 74, No. 23 / Thursday, February 5, 2009 / Notices
rwilkins on PROD1PC63 with NOTICES
in away markets. Only NYSE members,
member organizations and sponsoring
member organizations will be charged
this transaction fee. Transaction fees for
executions of orders entered by
sponsored participants will be charged
to the sponsoring member organization.
The following example will
demonstrate how the proposed NYBX
transactional fee will be charged:
Example No 1:
User A enters a buy order into NYBX
for 10,000 shares of XYZ security. User
B enters a sell order into NYBX for
10,000 shares of XYZ security. User A’s
buy order for 10,000 shares of XYZ
security and User B’s sell order for
10,000 shares of XYZ security execute
in or through NYBX. User A is charged
$.0025 per executed share (10,000
shares × $.0025 = $25.00). User B is also
charged $.0025 per executed share
(10,000 shares × $.0025 = $25.00).
NYBX Executions in the DBK or in
Away Markets:
The NYBX transactional fee will be
charged for all executions of all orders
entered into the NYBX facility, whether
such executions take place in the NYBX
facility, the DBK or in away markets.
Therefore, in the example above, if the
execution of 10,000 shares of XYZ
security takes place within the NYBX
facility, Users A and B would each be
charged $.0025 per executed share
(10,000 shares × $.0025 = $25.00).
However, if Users A and B’s NYBX
orders are routed to the DBK for
execution, and the execution of the
orders take place in the DBK, Users A
and B would each be charged $.0025 per
executed share (10,000 shares × $.0025
= $25.00). Similarly, if Users A and B’s
NYBX orders are routed to away
markets pursuant to Rule 611 of
Regulation NMS, and the execution of
the orders take place on the away
markets, Users A and B would each be
charged $.0025 per executed share
(10,000 shares × $.0025 = $25.00).
Therefore, Users A and B will not pay
any additional transactional fee for the
execution of NYBX orders to the extent
that an NYBX order or a portion thereof
may be executed in the DBK or in the
away markets.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the provisions of Section 6 5 of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 6 in general and Section 6(b)(4) of
the Act 7 in particular, in that it provides
for the equitable allocation of reasonable
5 15
U.S.C. 78f.
U.S.C. 78a.
7 15 U.S.C. 78f(b)(4).
6 15
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16:34 Feb 04, 2009
Jkt 217001
dues, fees and other charges among its
members and other persons using its
facilities. Specifically, the proposed
transaction fee is reasonable in light of
the costs incurred by the Exchange for
the operation of the NYBX system.
Further, the NYBX fee is consistent with
some exchanges’ fees and lower than
other exchanges’ fees for removal of
liquidity. For example, the BATS
Exchange, Inc. fee for removal of
liquidity is $.0025 per execution,8 while
the Nasdaq 9 and International
Securities Exchange (‘‘ISE’’) 10 fee is
$.0030, NYSE Arca is $.0029 11 and
Direct Edge is $.0026.12 Additionally,
the transaction fee is equitable as the fee
is applied to all users of the NYBX
system equally.
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
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
The foregoing rule change is effective
upon filing pursuant to Section
19(b)(3)(A) 13 of the Act and
subparagraph (f)(2) of Rule 19b–4 14
thereunder, because it establishes a due,
fee, or other charge imposed by NYSE.
At any time within 60 days of the filing
of such proposed rule change, the
Commission may summarily abrogate
such rule change if it appears to the
Commission that such action is
necessary or appropriate in the public
interest, for the protection of investors,
or otherwise in furtherance of the
purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
8 See
the BATS Exchange, Inc. Price List for 2009.
the Nasdaq Price List for 2009.
10 See the International Securities Exchange Price
List for 2009.
11 See the NYSE Arca Price List for 2009.
12 See the Direct Edge Price List for 2009.
13 15 U.S.C. 78s(b)(3)(A).
14 17 CFR 240.19b–4(f)(2).
9 See
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Fmt 4703
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6189
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–2009–09 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
All submissions should refer to File
Number SR–NYSE–2009–09. 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, 100 F Street, NE., Washington,
DC 20549, on official business days
between the hours of 10 a.m. and 3 p.m.
Copies of such filing also will be
available for inspection and copying at
the principal office of the Exchange. All
comments received will be posted
without change; the Commission does
not edit personal identifying
information from submissions. You
should submit only information that
you wish to make available publicly. All
submissions should refer to File
Number SR–NYSE–2009–09 and should
be submitted on or before February 26,
2009.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.15
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–2429 Filed 2–4–09; 8:45 am]
BILLING CODE 8011–01–P
15 17
E:\FR\FM\05FEN1.SGM
CFR 200.30–3(a)(12).
05FEN1
]]>Agencies
[Federal Register Volume 74, Number 23 (Thursday, February 5, 2009)]
[Notices]
[Pages 6188-6189]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-2429]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-59327; File No. SR-NYSE-2009-09]
Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Implementing an Equity Transaction Fee for Shares Executed on or
Through the New York Block Exchange Effective Upon Filing With the
Commission
January 30, 2009.
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 January 28, 2009, New York Stock Exchange LLC (``NYSE''
or the ``Exchange'') 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 self-
regulatory organization. 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\ 15 U.S.C. 78a.
\3\ 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 implement an equity transaction fee
effective January 29, 2009, for shares executed on the New York Block
Exchange SM (``NYBX'' or the ``Facility'').\4\ The Exchange
will charge each Member Organization $.0025 per share executed on the
NYBX.
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release No. 59281 (January 22,
2008) 74 FR 5014 (January 28, 2009) (SR-NYSE-2008-120) and
Securities Exchange Act Release No. 59282 (January 22, 2009), 74 FR
5009 (January 28, 2009) (SR-NYSE-2008-119).
---------------------------------------------------------------------------
The text of the proposed rule change is available at https://
www.nyse.com, the Exchange, 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 the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to implement an equity transaction fee for
executions on or through the New York Block Exchange system with effect
from the scheduled launch date of January 29, 2009. The NYBX will be an
electronic facility of the Exchange to provide for the continuous
matching and execution of securities listed on the NYSE of all non-
displayed orders with the aggregate of all displayed and non-displayed
orders of the NYSE Display Book[supreg] (``Display Book'' or ``DBK'')
while also considering protected quotations of all automated trading
centers (``away markets''). The proposed transactional fee of $.0025
per executed share will be charged to both the buyer(s) and seller(s)
of the executed shares. The fee will be charged for all executions of
NYBX orders, including those NYBX executions that take place in the DBK
or
[[Page 6189]]
in away markets. Only NYSE members, member organizations and sponsoring
member organizations will be charged this transaction fee. Transaction
fees for executions of orders entered by sponsored participants will be
charged to the sponsoring member organization.
The following example will demonstrate how the proposed NYBX
transactional fee will be charged:
Example No 1:
User A enters a buy order into NYBX for 10,000 shares of XYZ
security. User B enters a sell order into NYBX for 10,000 shares of XYZ
security. User A's buy order for 10,000 shares of XYZ security and User
B's sell order for 10,000 shares of XYZ security execute in or through
NYBX. User A is charged $.0025 per executed share (10,000 shares x
$.0025 = $25.00). User B is also charged $.0025 per executed share
(10,000 shares x $.0025 = $25.00).
NYBX Executions in the DBK or in Away Markets:
The NYBX transactional fee will be charged for all executions of
all orders entered into the NYBX facility, whether such executions take
place in the NYBX facility, the DBK or in away markets. Therefore, in
the example above, if the execution of 10,000 shares of XYZ security
takes place within the NYBX facility, Users A and B would each be
charged $.0025 per executed share (10,000 shares x $.0025 = $25.00).
However, if Users A and B's NYBX orders are routed to the DBK for
execution, and the execution of the orders take place in the DBK, Users
A and B would each be charged $.0025 per executed share (10,000 shares
x $.0025 = $25.00). Similarly, if Users A and B's NYBX orders are
routed to away markets pursuant to Rule 611 of Regulation NMS, and the
execution of the orders take place on the away markets, Users A and B
would each be charged $.0025 per executed share (10,000 shares x $.0025
= $25.00). Therefore, Users A and B will not pay any additional
transactional fee for the execution of NYBX orders to the extent that
an NYBX order or a portion thereof may be executed in the DBK or in the
away markets.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the provisions of Section 6 \5\ of the Securities Exchange Act of
1934 (the ``Act'') \6\ in general and Section 6(b)(4) of the Act \7\ in
particular, in that it provides for the equitable allocation of
reasonable dues, fees and other charges among its members and other
persons using its facilities. Specifically, the proposed transaction
fee is reasonable in light of the costs incurred by the Exchange for
the operation of the NYBX system. Further, the NYBX fee is consistent
with some exchanges' fees and lower than other exchanges' fees for
removal of liquidity. For example, the BATS Exchange, Inc. fee for
removal of liquidity is $.0025 per execution,\8\ while the Nasdaq \9\
and International Securities Exchange (``ISE'') \10\ fee is $.0030,
NYSE Arca is $.0029 \11\ and Direct Edge is $.0026.\12\ Additionally,
the transaction fee is equitable as the fee is applied to all users of
the NYBX system equally.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78f.
\6\ 15 U.S.C. 78a.
\7\ 15 U.S.C. 78f(b)(4).
\8\ See the BATS Exchange, Inc. Price List for 2009.
\9\ See the Nasdaq Price List for 2009.
\10\ See the International Securities Exchange Price List for
2009.
\11\ See the NYSE Arca Price List for 2009.
\12\ See the Direct Edge Price List for 2009.
---------------------------------------------------------------------------
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
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
The foregoing rule change is effective upon filing pursuant to
Section 19(b)(3)(A) \13\ of the Act and subparagraph (f)(2) of Rule
19b-4 \14\ thereunder, because it establishes a due, fee, or other
charge imposed by NYSE. At any time within 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.
---------------------------------------------------------------------------
\13\ 15 U.S.C. 78s(b)(3)(A).
\14\ 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-NYSE-2009-09 on the subject line.
Paper Comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-NYSE-2009-09. 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, 100 F Street, NE.,
Washington, DC 20549, on official business days between the hours of 10
a.m. and 3 p.m. Copies of such filing also will be available for
inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-NYSE-2009-09 and should be
submitted on or before February 26, 2009.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
---------------------------------------------------------------------------
\15\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-2429 Filed 2-4-09; 8:45 am]
BILLING CODE 8011-01-P
