[Federal Register Volume 67, Number 228 (Tuesday, November 26, 2002)]
[Notices]
[Pages 70799-70800]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-29945]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-46847; File No. SR-NYSE-2002-61]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the New York Stock Exchange, 
Inc. Establishing Fees for the NYSE Broker Volume Service

November 19, 2002.
    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 November 12, 2002, the New York Stock Exchange, Inc. (``NYSE'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``Commission'') the proposed rule change as described in items I, II 
and III below, which items have been prepared by the Exchange. The 
Exchange filed the proposal pursuant to section 19(b)(3)(A) of the 
Act,\3\ and rule 19b-4(f)(6) thereunder,\4\ which renders the proposal 
effective upon filing with the Commission. The Commission is publishing 
this notice to solicit comments on the proposed rule change from 
interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(6). The NYSE provided the Commission 
with at least five business days' written notice of its intention to 
file this proposed rule change.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to establish fees for the NYSE Broker Volume 
service (``Service''), a new information service that the Exchange 
plans to make available. The text of the proposed rule change is 
available at the NYSE and at the Commission.

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 NYSE included statements 
concerning the purpose of and basis for its proposal and discussed any 
comments it received regarding the proposal. The text of these 
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 aspects of such statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The NYSE proposes to establish fees for the Service, which provides 
access to the NYSE Broker Volume Database (``Database''), and permits 
vendors to provide subscribers with NYSE Broker Volume Reports. The 
Database is an electronic database of share volume information relating 
to trades that each participating Exchange member has entered into on 
the Exchange in each

[[Page 70800]]

Exchange traded issue.\5\ The Database will be updated on both a daily 
and monthly basis. The Database will have information only from 
Exchange members who have specifically agreed that their trades may be 
included in the Database, and members may elect whether to have their 
information included on a daily only basis, a monthly only basis, or on 
a both daily and monthly basis. Users of the Database will be able to 
sort and recall information either based on the traded security or 
based on the participating Exchange member.
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    \5\ Note that the database will not contain information on bonds 
traded through the NYSE Automated Bond System.
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    NYSE Broker Volume Reports will consist of the controlled displays 
of data reports that a vendor will create from the information 
contained in the Database. While these Reports will be provided by 
various vendors and will be subject to each vendor's display 
preferences or styles, the NYSE anticipates that these Reports would 
provide a ranking of executed NYSE volume by participating Exchange 
member for each NYSE-traded issue, with total volume per issue 
indicated for each participating member. Of course, in these Reports, 
vendors will be free to also present the NYSE Broker Volume data in 
such manner as they may consider useful to their subscribers, such as 
sortable by industry, sector, etc.
    The Exchange proposes to charge $3,000 per month for access to the 
Database. The fee will entitle a recipient to use the information 
included in the database in any manner within its organization. It will 
also entitle a recipient to create NYSE Broker Volume Reports for 
distribution to subscribers. The Exchange will require each Database 
recipient to enter into an appropriate database-access agreement with 
the NYSE. That agreement will specify that a recipient that creates 
NYSE Broker Volume Reports for distribution to subscribers must 
identify distributed NYSE Broker Volume Reports as being based entirely 
on NYSE information. Note that there will be no restrictions on a 
vendor's separately displaying other markets' broker volume activity. A 
report that combines broker volume information from a variety of 
sources will also be permitted as long as the NYSE Broker Volume that 
is a component thereof is separately identified as such in the same 
display.
    The Exchange proposes to charge vendors $100 per month for each 
subscriber device to which the vendor provides NYSE Broker Volume 
Reports. The Exchange will require each subscriber to execute a 
suitable subscriber agreement with the Exchange. The Exchange proposes 
to cap that monthly device charge at a maximum monthly amount of $2,500 
per subscriber.
    The Exchange notes that the Service directly responds to requests 
from professional NYSE market participants to increase the availability 
of NYSE broker volume information. Sell-side representatives use 
currently available share volume information to display their trading 
activity in specific Exchange-listed issues, while buy-side 
representatives use the data to determine which sell-side 
representative to select for execution of their orders. The Service 
will supplement existing services with a secure, controlled mechanism 
that will enhance the ability of these representatives to use such data 
and to demonstrate or observe trading patterns.
2. Statutory Basis
    The Exchange believes that the proposed rule is consistent with the 
provisions of section 6(b)(4) of the Act,\6\ in that it provides for 
the equitable allocation of reasonable dues, fees and other charges 
among its members and other persons using its facilities.
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    \6\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange believes that the proposed rule change would not 
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 solicited, and does not intend to solicit, 
comments regarding the proposed rule change.
    The Exchange has not received any unsolicited written comments from 
members or other interested parties.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Because the foregoing proposed rule change does not:
    (i) Significantly affect the protection of investors or the public 
interest;
    (ii) Impose any significant burden on competition; and
    (iii) Become operative for 30 days from the date on which it was 
filed, or such shorter time as the Commission may designate, it has 
become effective pursuant to section 19(b)(3)(A) of the Act \7\ and 
rule 19b-4(f)(6) 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.
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    \7\ 15 U.S.C. 78s(b)(3)(A).
    \8\ 17 CFR 240.19b-4(f)(6).
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IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposal is 
consistent with the Act. Persons making written submissions should file 
six copies thereof with the Secretary, Securities and Exchange 
Commission, 450 Fifth Street, NW., Washington, DC 20549-0609. 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. Copies of such filing will also be available for 
inspection and copying at the principal office of the NYSE. All 
submissions should refer to file number SR-NYSE-2002-61 and should be 
submitted by December 17, 2002.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 02-29945 Filed 11-25-02; 8:45 am]
BILLING CODE 8010-01-P