[Federal Register Volume 72, Number 89 (Wednesday, May 9, 2007)]
[Notices]
[Pages 26434-26435]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-8811]



[[Page 26434]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-55698; File No. SR-NYSE-2007-44]


Self-Regulatory Organizations; New York Stock Exchange LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Establish Fees for NYSE Bonds

May 2, 2007.
    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 May 1, 2007, the New York Stock Exchange LLC (``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 substantially prepared by the 
Exchange. The Exchange filed the proposed rule change pursuant to 
Section 19(b)(3)(A) of the Act \3\ and Rule 19b-4(f)(2) thereunder,\4\ 
which renders it effective upon filing with the Commission. 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.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 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 eliminate certain fees applicable to NYSE 
BondsSM (``NYSE Bonds'') and adopt a new transaction fee of 
$0.50 per bond for executions on NYSE Bonds that remove liquidity from 
NYSE Bonds. The text of the proposed rule change is available at the 
Exchange, the Commission's Public Reference Room, and http://www.nyse.com.

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 
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
    On Monday, April 22, 2007, the Exchange implemented the operation 
of its NYSE Bond platform. Only NYSE members and member organizations 
that have executed and delivered to the Exchange the NYSE Bonds Service 
and Access Agreement, including member organizations that were 
subscribers to the Automated Bond System (``ABS''), are eligible to 
access NYSE Bonds (``Eligible Members'').
    Through this filing, the Exchange proposes to eliminate certain 
fees associated with the NYSE Bonds platform.\5\ Specifically, the 
Exchange proposes to eliminate its current $15,000 annual subscription 
charge, the $5,000 additional display charge, the current usage fees 
($0.05, $0.10, $0.20, and $0.30), the $0.10 Fixed Income Public Agency 
Transaction fee, and the $5,000 computer-to-computer service fee 
effective on May 1, 2007.
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    \5\ The current fees applicable to the NYSE Bonds system were 
carried over from ABS. See Securities Exchange Act Release No. 55496 
(March 20, 2007), 72 FR 14631 (March 28, 2007) (SR-NYSE-2006-37).
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    The current fee structure for NYSE Bonds is a tier-based structure 
with a range from $0.05 to $0.30 per order entered, depending on the 
amount of fixed income orders submitted by the member organization 
within the calendar year. The Exchange further proposes to amend the 
current transaction fees to charge a new transaction fee of $0.50 per 
bond for executions on NYSE Bonds that remove liquidity from the NYSE 
Bonds book. To facilitate the move to the new fee structure, the 
Exchange intends to waive the assessment of any transaction fees on 
NYSE Bonds for fixed income orders executed through the system for the 
period of April 23, 2007 through April 30, 2007.
    Beginning Tuesday, May 1, 2007, the Exchange will implement a fee 
of $5,000 per year to be assessed to Eligible Members that utilize an 
Exchange-sponsored fixed income order management and entry (``Graphic 
User Interface'' or ``GUI'') system for accessing NYSE Bonds. Eligible 
Members that do not utilize the GUI will not be assessed the annual 
fee.
    Finally, the Exchange further seeks to remove the current cap on 
the total fees incurred by member organizations that participate on or 
submit orders to NYSE Bonds. The current cap is $20,000 per year per 
member organization; however, the Exchange may seek to impose a cap of 
such fees at a later date.
    The Exchange believes that the new transaction fees that are 
scheduled to become operative on May 1, 2007 will bring the NYSE Bonds 
platform more in line with the current fixed income market.
2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with 
Section 6(b) of the Act \6\ in general and furthers the objectives of 
Section 6(b)(4) \7\ in particular in that it is intended to provide for 
the equitable allocation of reasonable dues, fees, and other charges 
among its members 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 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

    Written comments on the proposed rule change were neither solicited 
nor received.

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

    The foregoing proposed rule change is subject to Section 
19(b)(3)(A)(ii) of the Act \8\ and subparagraph (f)(2) of Rule 19b-4 
thereunder \9\ because it establishes or changes a due, fee, or other 
charge applicable only to a member imposed by a self-regulatory 
organization. Accordingly, the proposal is effective upon Commission 
receipt of the filing. At any time within 60 days of the filing of the 
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 furtherance of the purposes of the Act.
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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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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.

[[Page 26435]]

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 e-mail to [email protected]. Please include File 
Number SR-NYSE-2007-44 on the subject line.

Paper Comments

     Send paper comments in triplicate to Nancy M. Morris, 
Secretary, Securities and Exchange Commission, 100 F Street, NE, 
Washington, DC 20549-1090.
    All submissions should refer to File Number SR-NYSE-2007-44. 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 will also 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-2007-44 and should be submitted on or before May 
30, 2007.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-8811 Filed 5-8-07; 8:45 am]
BILLING CODE 8010-01-P