Self-Regulatory Organizations; New York Stock Exchange LLC; Order Approving Proposed Rule Change Implementing a Cap on Vendors' Administrative Charges for NYSE OpenBook, 22989-22990 [E9-11356]
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Federal Register / Vol. 74, No. 93 / Friday, May 15, 2009 / Notices
Office Building, Washington, DC 20503
or send an e-mail to Shagufta Ahmed at
Shagufta_Ahmed@omb.eop.gov; and (ii)
Charles Boucher, Director/CIO,
Securities and Exchange Commission,
C/O Shirley Martinson, 6432 General
Green Way, Alexandria, VA 22312; or
send an e-mail to:
PRA_Mailbox@sec.gov. Comments must
be submitted to OMB within 30 days of
this notice.
Dated: May 11, 2009.
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–11361 Filed 5–14–09; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–59898; File No. SR–NYSE–
2009–37]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Order
Approving Proposed Rule Change
Implementing a Cap on Vendors’
Administrative Charges for NYSE
OpenBook
May 11, 2009.
I. Introduction
On March 26, 2009, the New York
Stock Exchange LLC (‘‘NYSE’’ or
‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’), pursuant to Section
19(b)(1) of the Securities Exchange Act
of 1934 (the ‘‘Act’’),1 and Rule 19b–4
thereunder,2 a proposed rule change to
introduce a cap on the monthly charges
that broker-dealers and vendors are
required to pay for their use of NYSE
OpenBook data for the purposes of
administering their provision of NYSE
OpenBook product offerings. The
proposed rule change was published for
comment in the Federal Register on
April 8, 2009.3 The Commission
received no comments on the proposal.
This order approves the proposed rule
change.
II. Description of the Proposal
The Exchange proposes to introduce a
cap on the monthly charges that brokerdealers and vendors are required to pay
for their use of NYSE OpenBook data for
the purposes of administering their
provision of NYSE OpenBook product
offerings. A one-year pilot program to
simplify and modernize market data
administration (the ‘‘Unit of Count
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 See Securities Exchange Act Release No. 59681
(April 1, 2009), 74 FR 16017.
2 17
VerDate Nov<24>2008
16:43 May 14, 2009
Jkt 217001
Filing’’) was recently approved for its
NYSE OpenBook product packages.4
The Unit of Count Filing redefined some
of the basic ‘‘units of measure’’ that
vendors are required to report to the
Exchange and on which the Exchange
bases its fees for its NYSE OpenBook
product packages.
Under the proposal, the Exchange
proposes to establish a maximum
monthly amount of $1500 (the
‘‘Monthly Maximum’’) for entitlements
consisting of unique individuals within
a vendor’s organization to whom the
vendor distributes NYSE OpenBook
data for the sole purpose of
administering the vendor’s distribution
of NYSE OpenBook services externally
to the vendor’s customers. The Monthly
Maximum of $1500 means that a vendor
would have to pay for no more than 25
NYSE OpenBook administrative
personnel.
III. Discussion and Commission
Findings
After careful consideration, the
Commission finds that the proposed
rule change is consistent with the
requirements of the Act and the rules
and regulations thereunder applicable to
a national securities exchange.5 In
particular, the Commission finds that
the proposal is consistent with Section
6(b)(4) of the Act,6 which requires 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) 7 that the rules of an
exchange be designed to promote just
and equitable principles of trade, to
remove impediments to and perfect the
mechanism of a free and open market
and a national market system and, in
general, to protect investors and the
public interest, and not be designed to
permit unfair discrimination between
customers, issuers, brokers, or dealers.
The Commission also finds that the
proposed rule change is consistent with
the provisions of Section 6(b)(8) of the
Act,8 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
4 See Securities Exchange Act Release No. 59544
(March 9, 2009), 74 FR 11162 (March 16, 2009) (SR–
NYSE–2008–131).
5 In approving this proposed rule change, the
Commission notes that it has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. 15 U.S.C. 78c(f).
6 15 U.S.C. 78f(b)(4).
7 15 U.S.C. 78f(b)(5).
8 15 U.S.C. 78f(b)(8).
PO 00000
Frm 00109
Fmt 4703
Sfmt 4703
22989
rule change is consistent with Rule
603(a) of Regulation NMS,9 adopted
under Section 11A(c)(1) of the Act,
which requires an exclusive processor
that distributes information with respect
to quotations for or transactions in an
NMS stock to do so on terms that are
fair and reasonable and that are not
unreasonably discriminatory.10
This proposal would cap the fees for
NYSE OpenBook when used by vendors
for administrative purposes. The
Commission has reviewed the proposal
using the approach set forth in the
NYSE Arca Order for non-core market
data fees.11 The Commission recently
found that NYSE was subject to
significant competitive forces in setting
fees for its depth-of-book order data in
the Unit of Count Filing.12 There are a
variety of alternative sources of
information that impose significant
competitive pressures on the NYSE in
setting the terms for distributing its
depth-of-book order data. The
Commission believes that the
availability of those alternatives, as well
as the NYSE’s compelling need to attract
order flow, imposed significant
competitive pressure on the NYSE to act
equitably, fairly, and reasonably in
setting the terms of its proposal.
Because the NYSE was subject to
significant competitive forces in setting
the terms of the proposal, the
Commission will approve the proposal
in the absence of a substantial
countervailing basis to find that its
terms nevertheless fail to meet an
applicable requirement of the Act or the
rules thereunder. An analysis of the
proposal does not provide such a basis.
IV. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,13 that the
proposed rule change (SR–NYSE–2009–
37) is hereby approved.
9 17
CFR 242.603(a).
is an exclusive processor of NYSE depthof-book 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 information with respect to quotations
or transactions on an exclusive basis on its own
behalf.
11 Securities Exchange Act Release No. 59039
(December 2, 2008), 73 FR 74770 (December 9,
2008) (SR–NYSEArca–2006–21) (‘‘NYSE Arca
Order’’). In the NYSE Arca Order, the Commission
describes in great detail the competitive factors that
apply to non-core market data products. The
Commission hereby incorporates by reference the
data and analysis from the NYSE Arca Order into
this order.
12 See Securities Exchange Act Release No. 59544
(March 9, 2009), 74 FR 11162 (March 16, 2009) (SR–
NYSE–2008–131).
13 15 U.S.C. 78s(b)(2).
10 NYSE
E:\FR\FM\15MYN1.SGM
15MYN1
22990
Federal Register / Vol. 74, No. 93 / Friday, May 15, 2009 / Notices
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–11356 Filed 5–14–09; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–59891; File No. SR–Phlx–
2009–24]
Self-Regulatory Organizations;
NASDAQ OMX PHLX, Inc.; Order
Approving Proposed Rule Change, as
Modified by Amendment No. 1 Thereto,
Increasing Transaction Fees for
Linkage Inbound Principal Orders and
Principal Acting as Agent Orders
May 8, 2009.
I. Introduction
On March 24, 2009, the NASDAQ
OMX PHLX, Inc. (‘‘Phlx’’ or
‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’), pursuant to Section
19(b)(1) of the Securities Exchange Act
of 1934 (the ‘‘Act’’),1 and Rule 19b–4
thereunder,2 a proposed rule change
seeking to increase transaction fees
applicable to the execution of Principal
Acting as Agent Orders (‘‘P/A Orders’’) 3
and Principal Orders (‘‘P Orders’’) 4 sent
to the Exchange via the Intermarket
Options Linkage (‘‘Linkage’’) under the
Plan for the Purpose of Creating and
Operating an Intermarket Option
Linkage (the ‘‘Plan’’).5 On March 26,
2009, Phlx submitted Amendment No. 1
to the proposed rule change. The
proposed rule change was published for
comment in the Federal Register on
April 8, 2009.6 The Commission
received no comments on the proposal.
This order approves the proposed rule
change, as amended.
14 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 A P/A Order, is an order for the principal
account of a specialist (or equivalent entity on
another Participant Exchange that is authorized to
represent Public Customer orders), reflecting the
terms of a related unexecuted Public Customer
order for which the specialist is acting as agent. See
Exchange Rule 1083(k)(i).
4 A P Order is an order for the principal account
of an Eligible Market Maker. See Exchange Rule
1083(k)(ii).
5 See Securities Exchange Act Release Nos. 43086
(July 28, 2000), 65 FR 48023 (August 4, 2000) (order
approving the Plan) and 43573 (November 16,
2000), 65 FR 70851 (November 28, 2000) (order
approving Phlx as a participant in the Plan).
6 See Securities Exchange Act Release No. 59669
(April 1, 2009), 74 FR 16026.
1 15
VerDate Nov<24>2008
16:43 May 14, 2009
Jkt 217001
II. Description of the Proposal
The Exchange proposes to amend the
Equity Options Fees portion of its fee
schedule relating to transaction fees
applicable to the execution of P/A
Orders and P Orders sent to the Linkage
under the Plan. Specifically, the
Exchange proposes to increase its
transaction fees for P/A Orders from the
current $0.15 per option contract to
$0.30 per option contract, and for P
Orders from the current $0.25 per
option contract to $0.45 per contract.
This proposal is part of an existing pilot
program, which is scheduled to expire
July 31, 2009.7
The Exchange states that the purpose
of the proposed rule change is to raise
revenue for the Exchange. The Exchange
also represents that, consistent with
current practice, the Exchange: (i) Will
charge the clearing member organization
of the sender of P Orders and P/A
Orders; and (ii) will not charge for the
execution of Satisfaction Orders sent
through Linkage.
The Exchange also proposes a
technical amendment to the schedule of
Equity Option Fees by correcting a
typographical error, changing the word
‘‘overlaying’’ to read ‘‘overlying.’’
III. Discussion and Commission
Findings
After careful consideration, the
Commission finds that the proposed
rule change is consistent with the
requirements of the Act and the rules
and regulations thereunder applicable to
a national securities exchange.8 In
particular, the Commission finds that
the proposal is consistent with Section
6(b)(4) of the Act,9 which requires 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. The Commission notes that
the Options Linkage fees are assessed
pursuant to a pilot scheduled to end on
July 31, 2009 and that the Commission
is continuing to evaluate whether such
fees are appropriate.
IV. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,10 that the
proposed rule change (SR–Phlx–2009–
24), as amended, is hereby approved.
7 See Securities Exchange Act Release No. 58144
(July 11, 2008), 73 FR 41394 (July 18, 2008) (SR–
Phlx–2008–49).
8 In approving this proposed rule change, the
Commission notes that it has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. 15 U.S.C. 78c(f).
9 15 U.S.C. 78f(b)(4).
10 15 U.S.C. 78s(b)(2).
PO 00000
Frm 00110
Fmt 4703
Sfmt 4703
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–11357 Filed 5–14–09; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–59893; File No. SR–
NYSEArca–2009–38]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Implementing Fee
Change
May 8, 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 April 30,
2009, NYSE Arca, Inc. (‘‘NYSE Arca’’ 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.
NYSE Arca filed the proposal pursuant
to Section 19(b)(3)(A) 4 of the Act and
Rule 19b–4(f)(2) 5 thereunder. 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 amend its
Schedule of Fees and Charges for
Exchange Services (the ‘‘Schedule’’).
While changes to the Schedule pursuant
to this proposal will be effective upon
filing, the changes will become
operative on May 1, 2009. 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, the
self-regulatory organization included
statements concerning the purpose of,
and basis for, the proposed rule change
and discussed any comments it received
11 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.
4 15 U.S.C. 78s(b)(3)(A).
5 17 CFR 240.19b–4(f)(2).
1 15
E:\FR\FM\15MYN1.SGM
15MYN1
]]>Agencies
[Federal Register Volume 74, Number 93 (Friday, May 15, 2009)]
[Notices]
[Pages 22989-22990]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-11356]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-59898; File No. SR-NYSE-2009-37]
Self-Regulatory Organizations; New York Stock Exchange LLC; Order
Approving Proposed Rule Change Implementing a Cap on Vendors'
Administrative Charges for NYSE OpenBook
May 11, 2009.
I. Introduction
On March 26, 2009, the New York Stock Exchange LLC (``NYSE'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission''), pursuant to Section 19(b)(1) of the Securities
Exchange Act of 1934 (the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ a
proposed rule change to introduce a cap on the monthly charges that
broker-dealers and vendors are required to pay for their use of NYSE
OpenBook data for the purposes of administering their provision of NYSE
OpenBook product offerings. The proposed rule change was published for
comment in the Federal Register on April 8, 2009.\3\ The Commission
received no comments on the proposal. This order approves the proposed
rule change.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ See Securities Exchange Act Release No. 59681 (April 1,
2009), 74 FR 16017.
---------------------------------------------------------------------------
II. Description of the Proposal
The Exchange proposes to introduce a cap on the monthly charges
that broker-dealers and vendors are required to pay for their use of
NYSE OpenBook data for the purposes of administering their provision of
NYSE OpenBook product offerings. A one-year pilot program to simplify
and modernize market data administration (the ``Unit of Count Filing'')
was recently approved for its NYSE OpenBook product packages.\4\ The
Unit of Count Filing redefined some of the basic ``units of measure''
that vendors are required to report to the Exchange and on which the
Exchange bases its fees for its NYSE OpenBook product packages.
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release No. 59544 (March 9,
2009), 74 FR 11162 (March 16, 2009) (SR-NYSE-2008-131).
---------------------------------------------------------------------------
Under the proposal, the Exchange proposes to establish a maximum
monthly amount of $1500 (the ``Monthly Maximum'') for entitlements
consisting of unique individuals within a vendor's organization to whom
the vendor distributes NYSE OpenBook data for the sole purpose of
administering the vendor's distribution of NYSE OpenBook services
externally to the vendor's customers. The Monthly Maximum of $1500
means that a vendor would have to pay for no more than 25 NYSE OpenBook
administrative personnel.
III. Discussion and Commission Findings
After careful consideration, the Commission finds that the proposed
rule change is consistent with the requirements of the Act and the
rules and regulations thereunder applicable to a national securities
exchange.\5\ In particular, the Commission finds that the proposal is
consistent with Section 6(b)(4) of the Act,\6\ which requires 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)
\7\ that the rules of an 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.
---------------------------------------------------------------------------
\5\ In approving this proposed rule change, the Commission notes
that it has considered the proposed rule's impact on efficiency,
competition, and capital formation. 15 U.S.C. 78c(f).
\6\ 15 U.S.C. 78f(b)(4).
\7\ 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,\8\ 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,\9\ adopted under
Section 11A(c)(1) of the Act, which requires an exclusive processor
that distributes information with respect to quotations for or
transactions in an NMS stock to do so on terms that are fair and
reasonable and that are not unreasonably discriminatory.\10\
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78f(b)(8).
\9\ 17 CFR 242.603(a).
\10\ NYSE is an exclusive processor of NYSE depth-of-book 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 information with respect to quotations or
transactions on an exclusive basis on its own behalf.
---------------------------------------------------------------------------
This proposal would cap the fees for NYSE OpenBook when used by
vendors for administrative purposes. The Commission has reviewed the
proposal using the approach set forth in the NYSE Arca Order for non-
core market data fees.\11\ The Commission recently found that NYSE was
subject to significant competitive forces in setting fees for its
depth-of-book order data in the Unit of Count Filing.\12\ There are a
variety of alternative sources of information that impose significant
competitive pressures on the NYSE in setting the terms for distributing
its depth-of-book order data. The Commission believes that the
availability of those alternatives, as well as the NYSE's compelling
need to attract order flow, imposed significant competitive pressure on
the NYSE to act equitably, fairly, and reasonably in setting the terms
of its proposal.
---------------------------------------------------------------------------
\11\ Securities Exchange Act Release No. 59039 (December 2,
2008), 73 FR 74770 (December 9, 2008) (SR-NYSEArca-2006-21) (``NYSE
Arca Order''). In the NYSE Arca Order, the Commission describes in
great detail the competitive factors that apply to non-core market
data products. The Commission hereby incorporates by reference the
data and analysis from the NYSE Arca Order into this order.
\12\ See Securities Exchange Act Release No. 59544 (March 9,
2009), 74 FR 11162 (March 16, 2009) (SR-NYSE-2008-131).
---------------------------------------------------------------------------
Because the NYSE was subject to significant competitive forces in
setting the terms of the proposal, the Commission will approve the
proposal in the absence of a substantial countervailing basis to find
that its terms nevertheless fail to meet an applicable requirement of
the Act or the rules thereunder. An analysis of the proposal does not
provide such a basis.
IV. Conclusion
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\13\ that the proposed rule change (SR-NYSE-2009-37) is hereby
approved.
---------------------------------------------------------------------------
\13\ 15 U.S.C. 78s(b)(2).
[[Page 22990]]
---------------------------------------------------------------------------
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
---------------------------------------------------------------------------
\14\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-11356 Filed 5-14-09; 8:45 am]
BILLING CODE 8010-01-P
