Self-Regulatory Organizations; NYSE Arca, Inc.; Order Approving Proposed Rule Change To Amend the Schedule of Fees and Charges for Exchange Services, 41474-41475 [E9-19623]

Download as PDF 41474 Federal Register / Vol. 74, No. 157 / Monday, August 17, 2009 / Notices (f)(2) of Rule 19b–4 9 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. available publicly. All submissions should refer to File Number SR–Phlx– 2009–66 and should be submitted on or before September 8, 2009. 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: BILLING CODE 8010–01–P mstockstill on DSKH9S0YB1PROD with NOTICES 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–Phlx-2009–66 on the subject line. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.10 Florence E. Harmon, Deputy Secretary. [FR Doc. E9–19572 Filed 8–14–09; 8:45 am] SECURITIES AND EXCHANGE COMMISSION [Release No. 34–60468; File No. SR– NYSEArca–2009–52] Self-Regulatory Organizations; NYSE Arca, Inc.; Order Approving Proposed Rule Change To Amend the Schedule of Fees and Charges for Exchange Services August 10, 2009. I. Introduction On June 10, 2009, NYSE Arca, Inc. Paper Comments (‘‘NYSE Arca’’ or ‘‘Exchange’’) through its wholly-owned subsidiary, NYSE • Send paper comments in triplicate Arca Equities, Inc. (‘‘NYSE Arca to Elizabeth M. Murphy, Secretary, Equities’’), filed with the Securities and Commission, 100 F Street, NE., Exchange Commission (‘‘Commission’’), Washington, DC 20549–1090. pursuant to Section 19(b)(1) of the All submissions should refer to File Securities Exchange Act of 1934 Number SR–Phlx-2009–66. This file (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 a number should be included on the proposed rule change amending its subject line if e-mail is used. To help the Schedule of Fees and Charges for Commission process and review your Exchange Services (‘‘Fee Schedule’’) to comments more efficiently, please use only one method. The Commission will revise the Listing Fees applicable to post all comments on the Commission’s Derivative Securities Products. The proposed rule change was published in Internet Web site (https://www.sec.gov/ the Federal Register on July 7, 2009.3 rules/sro.shtml). Copies of the The Commission received no comments submission, all subsequent on the proposal. This order approves the amendments, all written statements proposed rule change. with respect to the proposed rule change that are filed with the II. Description of the Proposal Commission, and all written The Exchange proposes amending its communications relating to the Fee Schedule to revise the Listing Fees proposed rule change between the Commission and any person, other than applicable to Derivative Securities Products listed under NYSE Arca Rules those that may be withheld from the 5.2(j)(3) (Investment Company Units), public in accordance with the 8.100 (Portfolio Depository Receipts), provisions of 5 U.S.C. 552, will be 8.200 (Trust Issued Receipts), 8.201 available for inspection and copying in (Commodity-Based Trust Shares), 8.202 the Commission’s Public Reference Room on official business days between (Currency Trust Shares), 8.203 (Commodity Index Trust Shares), 8.204 the hours of 10 a.m. and 3 p.m. Copies (Commodity Futures Trust Shares), of such filing also will be available for 8.300 (Partnership Units), 8.500 (Trust inspection and copying at the principal Units), and 8.600 (Managed Fund office of the Exchange. All comments received will be posted without change; Shares) on NYSE Arca, LLC, the equities the Commission does not edit personal 10 17 CFR 200.30–3(a)(12). identifying information from 1 15 U.S.C. 78s(b)(1). submissions. You should submit only 2 17 CFR 240.19b–4. information that you wish to make 3 See Securities Exchange Act Release No. 60184 9 17 (June 29, 2009), 74 FR 32209 (July 7, 2009) (hereinafter referred to as ‘‘Notice’’). CFR 240.19b–4(f)(2). VerDate Nov<24>2008 17:55 Aug 14, 2009 Jkt 217001 PO 00000 Frm 00109 Fmt 4703 Sfmt 4703 facility of NYSE Arca Equities. Specifically, the Exchange proposes to add a new provision to the Fee Schedule which states that in the case where a sponsor, managing owner, general partner or equivalent (collectively, the ‘‘Sponsor’’) is listing a new Derivative Securities Product on the Exchange for the first time, the Sponsor will be charged a one time consultation fee in the amount of $20,000. The proposed consulting charge would apply to all new Sponsors listing a new Derivative Securities Product for the first time on the Exchange. Therefore, under the proposal Sponsors who have previously issued a new Derivative Securities Product would not be charged the proposed consulting fee. Moreover, the current Listing and Annual Fees applicable to Derivative Securities Products would remain unchanged and be applicable to all Sponsors of Derivative Securities Products. III. Discussion and Commission’s Findings After careful review, 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. Specifically, the Commission finds that the proposal is consistent with Sections 6(b)(4) and (b)(5) of the Act,4 which require, among other things, that the rules of an exchange (i) provide for the equitable allocation of reasonable dues, fees, and other charges among its members and issuers and other persons using its facilities, and (ii) are not designed to permit unfair discrimination between customers, issuers, brokers, or dealers. According to the Exchange, the imposition of the proposed one-time consulting charge to new Sponsors of new Derivative Securities Products is necessary to adequately compensate the Exchange for all of the additional resources dedicated to such new Sponsors, such as the additional legal and business resources required to properly advise novice Sponsors through the listing process.5 The Exchange believes that the proposed consulting fee would enable the Exchange to continue to provide new issuers with the level of service necessary to successfully navigate an initial launch of a Derivative Securities Product. Moreover, the Exchange has represented that the proposed new Sponsor Fee is substantially below the 4 15 U.S.C. 78f(b)(4) and (b)(5). Notice, supra note 3. 5 See E:\FR\FM\17AUN1.SGM 17AUN1 Federal Register / Vol. 74, No. 157 / Monday, August 17, 2009 / Notices initial listing fee for issuers of traditional equity securities, e.g., common stock.6 Accordingly, the Commission believes that the Exchange’s proposed rule change provides for the equitable allocation of reasonable dues, fees, and other charges among issuers and further, does not unfairly discriminate between issuers given the additional time and resources dedicated to new Sponsors of Derivative Securities Products and given that the listing fees, including the onetime consulting fee, for Derivative Securities Products is substantially below the listing fee for traditional equity securities.7 Further, the Commission believes that the proposed one time consulting fee is equitable in that it applies uniformly to all new issuers of Derivative Securities Products. For the foregoing reasons, the Commission finds that the proposed rule change is consistent with the Act.8 IV. Conclusion It is therefore ordered, pursuant to Section 19(b)(2) of the Act,9 that the proposed rule change (SR–NYSEArca– 2009–52) be, and it hereby is, approved. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.10 Elizabeth M. Murphy, Secretary. [FR Doc. E9–19623 Filed 8–14–09; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–60466; File No. SR–Phlx– 2009–65] Self-Regulatory Organizations; Notice of Filing of Proposed Rule Change by NASDAQ OMX PHLX, Inc. Relating to Strike Price Intervals of $0.50 for Options on Stocks Trading at or Below $3.00 August 10, 2009. Pursuant to Section 19(b)(1) 1 of the Securities Exchange Act of 1934 (the ‘‘Act’’) 2 and Rule 19b–4 thereunder,3 mstockstill on DSKH9S0YB1PROD with NOTICES 6 Id. 7 The Commission notes that the current listing fee for Derivative Securities Products is $5,000, while the lowest listing fee for common stock is $100,000. See NYSE Arca Equities, Inc. Schedule of Fees and Charges for Exchange Services. 8 15 U.S.C. 78f(b)(4). In approving the 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). 9 15 U.S.C. 78s(b)(2). 10 17 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. VerDate Nov<24>2008 17:55 Aug 14, 2009 Jkt 217001 notice is hereby given that, on July 31, 2009, NASDAQ OMX PHLX, Inc. (‘‘Phlx’’ or ‘‘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 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, pursuant to Section 19(b)(1) of the Act 4 and Rule 19b–4 thereunder,5 proposes to amend Rule 1012, Series of Options Open for Trading, Commentary .05, in order to establish strike price intervals of $0.50, beginning at $1, for certain options classes whose underlying security closed at or below $3 in its primary market on the previous trading day. The text of the proposed rule change is available on the Exchange’s Web site at https://www.nasdaqtrader.com/ micro.aspx?id=PHLXRulefilings, at the principal office of the Exchange, and at the Commission’s Public Reference Room. II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the Exchange 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 purpose of the proposed rule change is to expand the ability of investors to hedge risks associated with stocks trading at or under $3. Currently, Commentary .05(a)(ii) to Phlx Rule 1012 provides that the interval of strike prices of series of options on individual stocks may be $2.50 or greater where the strike price is $25 or less. Additionally, Commentary .05(a)(i) to Phlx Rule 1012 allows the Exchange to establish $1 4 15 5 17 PO 00000 U.S.C. 78s(b)(1). CFR 240.19b–4. Frm 00110 Fmt 4703 Sfmt 4703 41475 strike price intervals (the ‘‘$1 Strike Program’’) on options classes overlying no more than fifty-five individual stocks designated by the Exchange. In order to be eligible for selection into the $1 Strike Program, the underlying stock must close below $50 in its primary market on the previous trading day. If selected for the $1 Strike Program, the Exchange may list strike prices at $1 intervals from $1 to $50, but no $1 strike price may be listed that is greater than $5 from the underlying stock’s closing price in its primary market on the previous day. The Exchange may also list $1 strikes on any other option class designated by another securities exchange that employs a similar $1 Strike Program its own rules.6 The Exchange is restricted from listing any series that would result in strike prices being within $0.50 of a strike price set pursuant to Commentary .05(a)(ii) to Phlx Rule 1012 at intervals of $2.50. The Exchange is now proposing to establish strike prices of $1, $1.50, $2, $2.50, $3 and $3.50 for certain stocks that trade at or under $3.00.7 The listing of these strike prices will be limited to options classes whose underlying security closed at or below $3 in its primary market on the previous trading day, and which have national average daily volume that equals or exceeds 1000 contracts per day as determined by The Options Clearing Corporation during the preceding three calendar months. The listing of $0.50 strike prices would be limited to options classes overlying no more than 5 individual stocks (the ‘‘$0.50 Strike Program’’) as specifically designated by the Exchange. The Exchange would also be able to list $0.50 strike prices on any other option classes if those classes were specifically designated by other securities exchanges that employed a similar $0.50 Strike Program under their respective rules. Currently, the Exchange may list options on stocks trading at $3 at strike prices of $1, $2, $3, $4, $5, $6, $7 and $8 if they are designated to participate 6 The Exchange may not list long-term option series (‘‘LEAPS’’) at $1 strike price intervals for any class selected for the Program. 7 The Exchange recently amended Exchange Rule 1010, Withdrawal of Approval of Underlying Securities or Options, to eliminate the $3 market price per share requirement for continued approval for an underlying security. The amendment eliminated the prohibition against listing additional series or options on an underlying security at any time when the price per share of such underlying security is less than $3. The Exchange explained in that proposed rule change that the market price for a large number of securities has fallen below $3 in the current volatile market environment. See Securities Exchange Act Release No. 59346 (February 3, 2009), 74 FR 6681 (February 10, 2009). E:\FR\FM\17AUN1.SGM 17AUN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 74, Number 157 (Monday, August 17, 2009)]
[Notices]
[Pages 41474-41475]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-19623]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-60468; File No. SR-NYSEArca-2009-52]


Self-Regulatory Organizations; NYSE Arca, Inc.; Order Approving 
Proposed Rule Change To Amend the Schedule of Fees and Charges for 
Exchange Services

August 10, 2009.

I. Introduction

    On June 10, 2009, NYSE Arca, Inc. (``NYSE Arca'' or ``Exchange'') 
through its wholly-owned subsidiary, NYSE Arca Equities, Inc. (``NYSE 
Arca Equities''), filed with the Securities and Exchange Commission 
(``Commission''), pursuant to Section 19(b)(1) of the Securities 
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a 
proposed rule change amending its Schedule of Fees and Charges for 
Exchange Services (``Fee Schedule'') to revise the Listing Fees 
applicable to Derivative Securities Products. The proposed rule change 
was published in the Federal Register on July 7, 2009.\3\ The 
Commission received no comments on the proposal. This order approves 
the proposed rule change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 60184 (June 29, 
2009), 74 FR 32209 (July 7, 2009) (hereinafter referred to as 
``Notice'').
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II. Description of the Proposal

    The Exchange proposes amending its Fee Schedule to revise the 
Listing Fees applicable to Derivative Securities Products listed under 
NYSE Arca Rules 5.2(j)(3) (Investment Company Units), 8.100 (Portfolio 
Depository Receipts), 8.200 (Trust Issued Receipts), 8.201 (Commodity-
Based Trust Shares), 8.202 (Currency Trust Shares), 8.203 (Commodity 
Index Trust Shares), 8.204 (Commodity Futures Trust Shares), 8.300 
(Partnership Units), 8.500 (Trust Units), and 8.600 (Managed Fund 
Shares) on NYSE Arca, LLC, the equities facility of NYSE Arca Equities. 
Specifically, the Exchange proposes to add a new provision to the Fee 
Schedule which states that in the case where a sponsor, managing owner, 
general partner or equivalent (collectively, the ``Sponsor'') is 
listing a new Derivative Securities Product on the Exchange for the 
first time, the Sponsor will be charged a one time consultation fee in 
the amount of $20,000.
    The proposed consulting charge would apply to all new Sponsors 
listing a new Derivative Securities Product for the first time on the 
Exchange. Therefore, under the proposal Sponsors who have previously 
issued a new Derivative Securities Product would not be charged the 
proposed consulting fee. Moreover, the current Listing and Annual Fees 
applicable to Derivative Securities Products would remain unchanged and 
be applicable to all Sponsors of Derivative Securities Products.

III. Discussion and Commission's Findings

    After careful review, 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. 
Specifically, the Commission finds that the proposal is consistent with 
Sections 6(b)(4) and (b)(5) of the Act,\4\ which require, among other 
things, that the rules of an exchange (i) provide for the equitable 
allocation of reasonable dues, fees, and other charges among its 
members and issuers and other persons using its facilities, and (ii) 
are not designed to permit unfair discrimination between customers, 
issuers, brokers, or dealers.
---------------------------------------------------------------------------

    \4\ 15 U.S.C. 78f(b)(4) and (b)(5).
---------------------------------------------------------------------------

    According to the Exchange, the imposition of the proposed one-time 
consulting charge to new Sponsors of new Derivative Securities Products 
is necessary to adequately compensate the Exchange for all of the 
additional resources dedicated to such new Sponsors, such as the 
additional legal and business resources required to properly advise 
novice Sponsors through the listing process.\5\ The Exchange believes 
that the proposed consulting fee would enable the Exchange to continue 
to provide new issuers with the level of service necessary to 
successfully navigate an initial launch of a Derivative Securities 
Product. Moreover, the Exchange has represented that the proposed new 
Sponsor Fee is substantially below the

[[Page 41475]]

initial listing fee for issuers of traditional equity securities, e.g., 
common stock.\6\
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    \5\ See Notice, supra note 3.
    \6\ Id.
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    Accordingly, the Commission believes that the Exchange's proposed 
rule change provides for the equitable allocation of reasonable dues, 
fees, and other charges among issuers and further, does not unfairly 
discriminate between issuers given the additional time and resources 
dedicated to new Sponsors of Derivative Securities Products and given 
that the listing fees, including the one-time consulting fee, for 
Derivative Securities Products is substantially below the listing fee 
for traditional equity securities.\7\ Further, the Commission believes 
that the proposed one time consulting fee is equitable in that it 
applies uniformly to all new issuers of Derivative Securities Products. 
For the foregoing reasons, the Commission finds that the proposed rule 
change is consistent with the Act.\8\
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    \7\ The Commission notes that the current listing fee for 
Derivative Securities Products is $5,000, while the lowest listing 
fee for common stock is $100,000. See NYSE Arca Equities, Inc. 
Schedule of Fees and Charges for Exchange Services.
    \8\ 15 U.S.C. 78f(b)(4). In approving the 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).
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IV. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\9\ that the proposed rule change (SR-NYSEArca-2009-52) be, and it 
hereby is, approved.
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    \9\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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Elizabeth M. Murphy,
Secretary.
[FR Doc. E9-19623 Filed 8-14-09; 8:45 am]
BILLING CODE 8010-01-P

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