[Federal Register Volume 71, Number 70 (Wednesday, April 12, 2006)]
[Notices]
[Pages 18797-18798]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-5366]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-53600; File No. SR-NYSEArca-2006-07]


Self-Regulatory Organizations; NYSE Acra, Inc.; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change, and Amendment No. 
1 Thereto, Relating to Exchange Fees and Charges

April 4, 2006.
    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 March 21, 2006, NYSE Arca, Inc. (``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. On March 31, 2006, the Exchange filed 
Amendment No. 1 to the proposed rule change.\3\ The Exchange has 
designated this proposal as one establishing or changing a due, fee, or 
other charge imposed by the Exchange under Section 19(b)(3)(A)(ii),\4\ 
and Rule 19b-4(f)(2) thereunder,\5\ which renders the proposal 
effective upon filing with the Commission. The Commission is publishing 
this notice to solicit comments on the proposed rule change, as 
amended, from interested persons.
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    \1\ 1 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Amendment No. 1 made clarifying changes to the rule text and 
purpose section of the proposed rule change.
    \4\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \5\ 17 CFR 240.19b-4(f)(2).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend its Schedule of Fees and Charges for 
Exchange Services (``Schedule'') in order to assess a royalty fee on 
options contracts traded on certain Exchange Traded Funds (``ETFs''). 
The text of the proposed rule change, as amended, is available on the 
Exchange's Web site at http://www.nysearca.com, at the Exchange's 
Office of the Secretary, 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 included statements 
concerning the purpose of, and basis for, the proposed rule change, as 
amended, and discussed any comments it received on 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 the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to amend its Schedule in order to assess a 
$0.10 royalty fee on options contracts traded on the following ETFs: 
the Russell 1000 Index Fund (IWB), The Russell 1000 Value Index Fund 
(IWD), the Russell 2000 Index Fund (IWM), the Russell 2000 Value Index 
Fund (IWN), the Russell 2000 Growth Fund (IWO), and the Russell Midcap 
Index Fund (IWR). The Exchange proposes to charge $0.10 per contract 
side on all market maker, firm and broker dealer transactions. 
According to the Exchange, consistent with the present Schedule, 
customers will not be assessed the royalty fee.
    The Exchange also proposes to add additional language to footnote 6 
of the Trade-Related Charges section of the Schedule. According to the 
Exchange, this language is being added to cross reference an existing 
section in the Schedule that contains information on how royalty fees 
associated with Options Strategy Executions are assessed. These fees 
are explained under the ``Limit of Fees on Options Strategy 
Executions'' section of the Schedule. The Exchange notes that the 
additional language to this footnote simply serves as a reference to 
the existing explanation.
2. Statutory Basis
    The Exchange believes that the proposed rule change, as amended, is 
consistent with Section 6(b) of the Act,\6\ in general, and furthers 
the objectives of Section 6(b)(4) of the Act,\7\ in particular, in that 
it is designed to provide for the equitable allocation of reasonable 
dues, fees, and other charges among its members and issuers and other 
persons using its facilities.
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    \6\ 15 U.S.C. 78f(b).
    \7\ 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, as 
amended, 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

    No written comments were solicited or received with respect to the 
proposed rule change.

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

    The foregoing rule change, as amended, has become effective 
pursuant to Section 19(b)(3)(A)(ii) of the Act \8\ and subparagraph 
(f)(2) of Rule 19b-4 thereunder,\9\ since it establishes or changes a 
due, fee or other charge imposed by the Exchange.
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    \8\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \9\ 17 CFR 240.19b-4(f)(2).
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    At any time within 60 days of the filing of such 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 the furtherance of the purposes of the Act.\10\
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    \10\ The effective date of the original proposed rule change is 
March 21, 2006, and the effective date of Amendment No. 1 is March 
31, 2006. For purposes of calculating the 60-day period within which 
the Commission may summarily abrogate the proposed rule change under 
Section 19(b)(3)(C) of the Act, the Commission considers the period 
to commence on March 31, 2006, the date on which the Exchange filed 
Amendment No. 1. See 15 U.S.C. 78s(b)(3)(C).
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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 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-NYSEArca-2006-07 on the subject line.

Paper Comments

     Send paper comments in triplicate to Nancy M. Morris, 
Secretary,

[[Page 18798]]

Securities and Exchange Commission, 100 F Street, NE., Washington, DC 
20549-1090.
    All submissions should refer to File Number SR-NYSEArca-2006-07. 
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. Copies of 
such filing also will be available for inspection and copying at the 
principal office of the Exchange. 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 No. SR-NYSEArca-2006-07 and should be submitted on or before May 
3, 2006.
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    \11\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\11\
Nancy M. Morris,
Secretary.
[FR Doc. E6-5366 Filed 4-11-06; 8:45 am]
BILLING CODE 8010-01-P