[Federal Register Volume 71, Number 128 (Wednesday, July 5, 2006)]
[Notices]
[Pages 38198-38199]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-10414]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-54055; File No. SR-NYSE-2006-32]


Self-Regulatory Organizations; New York Stock Exchange LLC; Order 
Approving Proposed Rule Change Relating to the NYSE Retail Trading 
Product and the NYSE Program Trading Product

June 28, 2006.

I. Introduction

    On May 9, 2006, the New York Stock Exchange LLC (``NYSE'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``Commission''), pursuant to section 19(b)(1) of the Securities 
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a 
proposed rule change relating to the NYSE Retail Trading Product and 
the NYSE Program Trading Product (collectively, the ``NYSE Trading 
Information Products'').\3\ The proposed rule change was published for 
comment in the Federal Register on May 24, 2006.\4\ The Commission 
received no comments regarding the proposal. This order approves the 
proposed rule change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ A proposal to introduce the NYSE Trading Information 
Products without charge as a 60-day pilot program was effective upon 
filing with the Commission. See Securities Exchange Act Release No. 
53835 (May 18, 2006), 71 FR 30456 (May 26, 2006).
    \4\ See Securities Exchange Act Release No. 53834 (May 18, 
2006), 71 FR 30011.
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II. Description of the Proposal

    The NYSE Retail Trading Product consists of: (A) A real-time data 
feed of certain execution report information that has been recorded as 
trades for the accounts of ``individual investors;'' \5\ and (B) an 
end-of-day summary of the retail trading activity on the Exchange for 
that day, including total buy and sell retail share volume for each 
stock traded. The NYSE Program Trading Product consists of: (A) A real-
time data feed of certain execution report information that has been 
recorded as program trades; \6\ and (B) an end-of-day summary of 
program trading activity on the Exchange for that day, including total 
index arbitrage program trading volume. Each published report of a 
trade execution that is included in the data feed for either product 
will indicate such information as the security's symbol, the size of 
the trade, the time of the trade's execution, and other related 
information.
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    \5\ For purposes of the NYSE Retail Trading Product, the account 
of an ``individual investor'' means an account covered by section 
11(a)(1)(E) of the Act. 15 U.S.C. 78k(a)(1)(E).
    \6\ For purposes of the NYSE Program Trading Product, ``program 
trading'' refers to program trading as defined in NYSE Rule 80A, 
Supplementary Material .40(b).
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    The NYSE proposes to establish fees for these data products. 
Specifically, NYSE proposes to charge a $1,500 monthly access fee for 
receipt of the NYSE Retail Trading Product data feed (for receipt of 
the real-time data feed, the end-of-day summaries, or both); a $1,500 
monthly access fee for receipt of the NYSE Program Trading Product data 
feed (for receipt of the real-time data feed, the end-of-day summaries, 
or both); a $2.00 monthly display fee for each display device receiving 
the NYSE Retail Trading Product information and/or the NYSE Program 
Trading Product information that the vendor makes available from the 
real-time data feed; and a $250 monthly fee for vendors that only 
provide end of day summaries of NYSE Trading Information Products.
    In addition, the NYSE proposes to provide each vendor of the NYSE 
Trading Information Products with a monthly credit of $2 for each 
device that the vendor has entitled to receive displays of the NYSE 
Trading Information Products, up to a maximum of either $3,000 per 
month if the vendor pays the monthly access fees for both the NYSE 
Retail Trading Product data feed and the NYSE Program Trading Product 
data feed (which total monthly access fees total $3,000); or $1,500 per 
month if the vendor pays the monthly access fees for either the NYSE 
Retail Trading Product data feed or the NYSE Program Trading Product 
data feed, but not both (either of which monthly access fees equals 
$1,500).
    Finally, NYSE proposes to require vendors receiving the NYSE 
Trading Information Products, to provide subscribers, by link or 
otherwise, in a manner that is reasonably transparent and accessible to 
subscribers, a description of the NYSE Retail Trading Product and the 
NYSE Program Trading Product. The NYSE will require vendors to update 
their Exhibit A to their contract with NYSE for receipt and 
redistribution of NYSE Trading Information Products to describe how 
they will make this description available.

III. Discussion

    The Commission finds that the proposed rule change is consistent 
with the requirements of the Act and the rules and regulations 
thereunder applicable to a national securities

[[Page 38199]]

exchange.\7\ Specifically, the Commission finds that the proposal is 
consistent with section 6(b)(4) of the Act,\8\ which requires that the 
rules of an exchange provide for the equitable allocation of reasonable 
dues, fees, and other charges among its members and issuers and other 
persons using its facilities. In this regard, the Commission notes that 
the NYSE has represented that, in arriving at the fees for the NYSE 
Trading Information Products, the NYSE considered the cost of 
collecting, processing, and making the products available, and assessed 
the value of the products relative to other data products that the NYSE 
makes available, including NYSE OpenBook.\9\ Further, the Commission 
notes that its fees will be uniformly charged to all persons who wish 
to receive the data.
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    \7\ In approving this proposed rule change the Commission has 
considered the proposed rule's impact on efficiency, competition, 
and capital formation. 15 U.S.C. 78c(f).
    \8\ 15 U.S.C. 78f(b)(4).
    \9\ The Commission recently approved the fees for the real-time 
OpenBook service. See Securities Exchange Act Release No. 53585 
(March 31, 2006), 71 FR 17934 (April 7, 2006) (order approving File 
Nos. SR-NYSE-2004-43 and SR-NYSE-2005-32).
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    In addition, the Commission finds that the proposal is consistent 
with section 6(b)(5) of the Act,\10\ which requires, among other 
things, that the rules of a national securities exchange be designed to 
promote just and equitable principles of trade, to remove impediments 
to and perfect the mechanism of a free and open market and a national 
market system and, in general, to protect investors and the public 
interest. Specifically, the Commission finds that NYSE's proposal to 
require vendors to provide subscribers with a description of the NYSE 
Trading Information Products is designed to explain and describe the 
NYSE Trading Information Products so that users will be better able to 
understand and use the data.
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    \10\ 15 U.S.C. 78f(b)(5).
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IV. Conclusion

    It is therefore ordered, pursuant to section 19(b)(2) of the 
Act,\11\ that the proposed rule change (SR-NYSE-2006-32) is approved.
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    \11\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\12\
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    \12\ 17 CFR 200.30-3(a)(12).
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Nancy M. Morris,
Secretary.
[FR Doc. E6-10414 Filed 7-3-06; 8:45 am]
BILLING CODE 8010-01-P