[Federal Register Volume 69, Number 170 (Thursday, September 2, 2004)]
[Notices]
[Pages 53760-53761]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E4-2038]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-50275; File No. SR-NYSE-2004-43]


Self-Regulatory Organizations; New York Stock Exchange, Inc.; 
Notice of Filing of a Proposed Rule Change Establishing Fees for 
Receiving NYSE OpenBook[supreg] on a Real-Time Basis

August 26, 2004.
    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 August 11, 2004, 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 is proposing to establish fees for providing NYSE 
OpenBook on a real-time basis.

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 believes that NYSE OpenBook responds to the demands of 
some market participants for depth-of-market data, a demand that has 
resulted, in part, from decimalization's six-fold increase in the 
number of price points. The NYSE OpenBook service is a compilation of 
limit order data that the Exchange provides to market data vendors, 
broker-dealers, private network providers and other entities through a 
data feed. The Exchange represents that for every limit price, NYSE 
OpenBook includes the aggregate order volume.
    Currently, the Exchange updates NYSE OpenBook every five seconds. 
The Exchange proposes to make available a second enhanced NYSE OpenBook 
service that would update NYSE OpenBook limit order information in 
real-time. The Exchange believes that the real-time service responds to 
the desire of some market participants for more frequently updated 
depth-of-market data. According to the Exchange, the proposed real-time 
service will allow subscribers to choose to either continue to receive 
their current NYSE OpenBook service unchanged, or upgrade to the new 
real-time service.
    The fees for the present NYSE OpenBook service are two-fold: (1) 
$5,000 per month for the receipt of, and the right to redistribute, the 
data feed and (2) $50.00 per month for each terminal through which the 
end user is able to display the service. The Commission approved the 
current fees for NYSE OpenBook in December 2001.\3\
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    \3\ See Securities Exchange Act Release No. 44962 (December 7, 
2001), 66 FR 54562 (December 14, 2001) (SR-NYSE-2001-42).
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    The Exchange proposes to establish a fee of $60.00 per month for 
each terminal through which the end user is able to display the real-
time NYSE OpenBook service. According to the Exchange, the current 
monthly $5,000 data feed fee will entitle an entity to receive the 
five-second NYSE OpenBook data feed, the real-time NYSE OpenBook data 
feed, or both. The Exchange states that the current data feed fee will 
also entitle an entity to receive the NYSE LiquidityQuote R[supreg] 
data feed.
    The Exchange believes that the fee for the real-time NYSE OpenBook 
service reflects an equitable allocation of its overall costs 
associated with using its facilities. The Exchange states that it 
reviewed and discussed the fee with the Exchange's Board of Executives 
(``BoE'') at its June 3, 2004 meeting following a presentation by NYSE 
senior management. (The BoE, which is a constituent panel that advises 
the Exchange's independent Board of Directors and senior management, is 
comprised of representatives of individual and institutional investors, 
listed companies, members and member organizations.) The Exchange also 
states that all members of the Exchange's Board of Directors attended 
the BoE meeting, listened to the presentation and discussion, and later 
that day approved the new service and proposed fee.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act,\4\ in general, and Section 6(b)(4) of the 
Act,\5\ 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.
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    \4\ 15 U.S.C. 78f(b).
    \5\ 15 U.S.C. 78f(b)(4).
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 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

    The Exchange has not received solicited or 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

[[Page 53761]]

(ii) as to which the Exchange consents, the Commission will:
    (A) By order approve such proposed rule change, as amended, 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. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an e-mail to [email protected]. Please include 
File Number SR-NYSE-2004-43 on the subject line.

Paper Comments

     Send paper comments in triplicate to Jonathan G. Katz, 
Secretary, Securities and Exchange Commission, 450 Fifth Street, NW., 
Washington, DC 20549-0609.
    All submissions should refer to File Number SR-NYSE-2004-43. 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 (http://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. Copies of such 
filing also will be available for inspection and copying at the 
principal office of the NYSE. 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-NSYE-2004-43 and should be submitted on or before 
September 23, 2004.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\6\
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    \6\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
 [FR Doc. E4-2038 Filed 9-1-04; 8:45 am]
BILLING CODE 8010-01-P