[Federal Register Volume 69, Number 218 (Friday, November 12, 2004)]
[Notices]
[Pages 65488-65489]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E4-3151]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-50639; File No. SR-NYSE-2004-53]


Self-Regulatory Organizations; Notice of Filing of Proposed Rule 
Change and Amendment Nos. 1 and 2 by New York Stock Exchange, Inc. 
Relating to a Fee for the NYSE Alerts Datafeed

November 5, 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 September 17, 2004, the New York Stock Exchange (``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 NYSE. On October 
15, 2004, the NYSE filed Amendment No. 1 to the proposed rule 
change.\3\ On October 28, 2004, the NYSE filed Amendment No. 2 to the 
proposed rule change.\4\ The Commission is publishing this notice to 
solicit comments on the proposed rule change, as amended, from 
interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See letter from Mary Yeager, Assistant Secretary, NYSE, to 
Nancy Sanow, Assistant Director, Division of Market Regulation 
(``Division''), Commission, dated October 14, 2004 (``Amendment No. 
1''). In Amendment No. 1, the NYSE clarified that the information 
that would be included in the NYSE Alerts datafeed would continue to 
be available to the public through the Consolidated Tape Association 
network and through various news services.
    \4\ See letter from Mary Yeager, Assistant Secretary, NYSE, to 
Nancy Sanow, Assistant Director, Division, Commission, dated October 
27, 2004 (``Amendment No. 2''). In Amendment No. 2, the NYSE 
submitted the amended NYSE fee schedule incorporating the proposed 
$500 NYSE Alerts datafeed fee.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The NYSE proposes to establish a fee of $500 per month for a 
customer's receipt of the NYSE Alerts datafeed.
    Below is the text of the proposed rule change, as amended.\5\ 
Proposed new language is italicized.
---------------------------------------------------------------------------

    \5\ Upon the Exchange's request, the Commission made technical 
corrections to the proposed rule text. Telephone conversation 
between Ronald Jordan, Vice President, NYSE, and Sapna C. Patel, 
Special Counsel, Division, Commission, on November 1, 2004.
---------------------------------------------------------------------------

* * * * *

NYSE MARKET INFORMATION PRICE LIST

Market Information

Schedule of Monthly Charges
(Excluding Applicable Taxes)
* * * * *
Report Service
* * * * *

NYSE Broker Volume (Annual Charges)
  NYSE Broker Volume Database access fee....................   $3,000.00
  NYSE Broker Volume Device fee--per terminal from NYSE.....    3,600.00
  NYSE Broker Volume Device fee--per terminal from a vendor.    1,200.00
  (Maximum monthly device fee per subscriber)...............    2,500.00
NYSE Alerts SM * * *
  Access Fee................................................     500.00
 
* * * No Display fees apply.

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 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 NYSE 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 will make available to vendors and investors its NYSE 
Alerts datafeed. NYSE Alerts is a real-time datafeed service that NYSE 
will make available through NYSE's Common Access Point (CAP) network. 
The NYSE Alerts datafeed will include the following categories of 
information:
     MOC Market Imbalances. MOC Market Imbalances occur when 
the number of shares of a stock that market participants offer to buy 
(sell) at the closing price significantly exceed the number of shares 
of the stock that other market participants are willing to sell (buy) 
at the close price. NYSE Rule 123C requires the publication of MOC 
Market Imbalances at certain times during the trading session. MOC 
Market Imbalances may also be published--regardless of the size of the 
imbalance or the time of publication--if the imbalance is determined to 
be significant.
     Delayed Openings/Trading Halts. Delayed openings and 
trading halts facilitate the maintenance of orderly markets. NYSE Rule 
123D requires the dissemination of information related to delayed 
openings and trading halts.
     ITS Pre-Opening Indications/Trading Range Indications. 
Pre-Opening Indications and Trading Range Indications are non-firm 
quotes that convey approximations of what a stock's opening price or 
trading range will be after a delayed opening or following a trading 
halt. Exchange policy requires the dissemination of Pre-Opening 
Indications prior to the opening of a stock following a trading halt or 
opening delay or when there is a significant opening price disparity 
from the prior close.
     Trading Collar Messages. Trading collars are restrictions 
on index arbitrage trading. Trading collar restrictions are triggered 
when the Dow Jones Industrial Average advances or declines by a 
prescribed amount, as determined on a quarter-by-quarter basis. When a 
change in the Dow Jones Industrial Average triggers a trading collar, 
the Exchange will disseminate a formatted message indicating which 
types of Index Arbitrage orders may be entered and which types of Index 
Arbitrage orders must be cancelled.
     Circuit Breaker Messages. Circuit breakers control extreme 
market volatility by halting all NYSE trading for a period as 
determined by the percentage decline of the Dow Jones Industrial 
Average.
    (More information regarding the content contained in the NYSE 
Alerts datafeed can be found on the NYSE Web site at http://www.nysedata.com/alerts.)
    Pursuant to this proposed rule change, the NYSE proposes to 
establish a $500 per-month fee for receipt of access to NYSE Alerts. 
The NYSE believes that this access fee would reflect an equitable 
allocation of its overall costs to users of its facilities. The NYSE 
believes that the fee would enable the users of the NYSE Alerts service 
to make an appropriate contribution to the recovery of the overall 
costs of the

[[Page 65489]]

NYSE's operations and is reasonably related to the value that the NYSE 
Alerts service provides to those who use it. The NYSE plans to impose 
no fee for the display of NYSE Alerts information.
2. Statutory Basis
    The NYSE believes that the basis under the Act for the proposed 
rule change is the requirement under Section 6(b)(4) \6\ 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.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange believes that the proposed fee change 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, as amended, 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-2004-53 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-2004-53. 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 Section, 450 Fifth 
Street, NW., Washington, DC 20549. 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-
NYSE-2004-53 and should be submitted on or before December 3, 2004.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\7\
---------------------------------------------------------------------------

    \7\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Margaret H. McFarland,
Deputy Secretary.
 [FR Doc. E4-3151 Filed 11-10-04; 8:45 am]
BILLING CODE 8010-01-P