[Federal Register Volume 68, Number 93 (Wednesday, May 14, 2003)]
[Notices]
[Pages 25923-25924]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-11994]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-47813; File No. SR-NYSE-2003-11]


Self-Regulatory Organizations; Notice of Filing of Proposed Rule 
Change by the New York Stock Exchange, Inc. Relating to NYSE Broker 
Volume Web Service

May 8, 2003.
    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 April 22, 2003, 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 
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.
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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 its NYSE Broker Volume 
Web Service, a new service that allows subscribers to view reports of 
broker share volume information that the NYSE produces from the NYSE 
Broker Volume Database. The text of the proposed rule change is below. 
Proposed new language is in italics.
NYSE 2003 PRICE LIST
* * * * *
MARKET DATA FEES
* * * * *
Schedule of Monthly Charges (excluding applicable taxes)
* * * * *
NYSE Broker Volume

    NYSE Broker Volume Web Service--per user--$300.00*
    NYSE Broker Volume Database access fee--$3,000.00
    NYSE Broker Volume Device Fee--per terminal--$100.00
    (Maximum monthly device fee per subscriber--$2,500.00)
    * Applies for web access to reports directly from NYSE. Persons 
that subscribe on or prior to October 1, 2003, receive a 30-day waiver 
of the NYSE Broker Volume Web Service fee.
* * * * *

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 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 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 Exchange proposes to establish fees to make NYSE Broker Volume 
information available via a new Web-based service (the ``NYSE Broker 
Volume Web Service''). Subscribers to this new service will be able to 
log-on to the NYSE Web site (www.nysedata.com) (``Web site'') and 
receive formatted displays containing aggregate broker-dealer volume 
rankings in NYSE-traded securities. NYSE produces these displays from 
NYSE's electronic database of raw share volume information. NYSE 
creates that database from trades in NYSE-listed securities that 
participating NYSE members execute on NYSE (the ``NYSE Broker Volume 
Database''). NYSE developed the NYSE Broker Volume Database to respond 
to requests from broker-dealers and others.
    Vendors currently make broker volume reports available without the 
use of the NYSE Broker Volume

[[Page 25924]]

Database. They produce those services from volume data that broker-
dealers voluntarily provide. NYSE constituents have told NYSE that they 
do not find those reports sufficient and have asked NYSE to distribute 
broker volume information that reflects members' actual trading 
activity as reported to NYSE. In response, NYSE created the NYSE Broker 
Volume Database and made that database available to vendors as an 
alternative to the databases that vendors are creating for themselves. 
On November 12, 2002, NYSE filed a proposed rule change \3\ to 
establish fees for vendor access to the NYSE Broker Volume Database and 
for vendor distribution to subscribers of Broker Volume Reports that 
vendors generate from the NYSE Broker Volume Database (the ``2002 
Filing''). The 2002 Filing imposes a per-device subscriber fee that is 
subject to a per-subscriber monthly maximum that is reached when a 
subscriber has 25 devices.
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    \3\ Securities Exchange Act Release No. 46847 (November 19, 
2002), 67 FR 70799 (November 26, 2002)(SR-NYSE-2002-61).
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    Pursuant to the 2002 Filing, vendors may redistribute information 
from the NYSE Broker Volume Database in the form of controlled displays 
of broker volume reports. Vendors may display the reports according to 
their own preferences and styles and in the manner that they consider 
most useful to their subscribers. However, to date, no vendors have 
taken advantage of the opportunity to access the NYSE Broker Volume 
Database or to make reports generated from that database available to 
subscribers. Yet, NYSE continues to receive requests for broker volume 
information from its members and investors.
    Accordingly, the Exchange proposes to provide a NYSE Broker Volume 
Web Service, which will allow market participants to gain access to 
NYSE Broker Volume displays that NYSE creates from the NYSE Broker 
Volume Database. NYSE will provide the NYSE Broker Volume Web Service 
on a controlled display directly to subscribers over the Web site.
    The Exchange proposes to charge subscribers $300 per month for each 
user that has access to the NYSE Broker Volume Web Service. NYSE has 
established a secure information display and retrieval system through 
the combined use of user IDs and passwords. Persons with access to NYSE 
Broker Volume displays through the NYSE Broker Volume Web Service will 
not be able to manipulate the information contained in the displays or 
to redistribute the displays to others. The Exchange will require each 
subscriber to execute a suitable subscriber agreement with the 
Exchange. The Exchange will not cap the NYSE Broker Volume Web Service 
fees payable in respect of a subscriber, as it does in respect of 
subscribers that receive broker volume reports from a vendor.
    For any individual that first subscribes to the NYSE Broker Volume 
Web Service on or prior to October 1, 2003, NYSE will waive the NYSE 
Broker Volume Web Service fee for 30 days (the ``Free Trial Period''). 
The Free Trial Period will be applied on a rolling basis, determined by 
the date on which NYSE first entitles a new individual subscriber or 
potential individual subscriber to receive the NYSE Broker Volume Web 
Service. A specific individual subscriber may only receive this fee 
waiver one time.
2. Statutory Basis
    The NYSE believes the proposed rule change is consistent with 
section 6(b)(4) of the Act \4\ because 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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    \4\ 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 proposal will 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

    Within 35 days of the date of publication of this notice in the 
Federal Register or within such longer period (i) as the Commission may 
designate up to 90 days of such date if it finds such longer period to 
be appropriate and publishes its reasons for so finding or (ii) as to 
which the Exchange consents, the Commission will:
    (A) By order approve such proposed rule change, or
    (B) Institute proceedings to determine whether the proposed rule 
change should be disapproved.

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. 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-2003-11 and 
should be submitted by June 4, 2003.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\5\
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    \5\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 03-11994 Filed 5-13-03; 8:45 am]
BILLING CODE 8010-01-P