[Federal Register Volume 74, Number 46 (Wednesday, March 11, 2009)]
[Notices]
[Pages 10640-10642]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-5204]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-59521; File No. SR-NYSEArca-2009-15]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Rule Change by NYSE Arca, Inc. Implementing Fee Change

March 5, 2009.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby 
given that, on February 27, 2009, NYSE Arca, Inc. (``NYSE Arca'' or the 
``Exchange'') filed with the Securities and Exchange Commission (the 
``Commission'') the proposed rule change as described in Items I, II, 
and III below, which Items have been prepared by the self-regulatory 
organization. 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\ 15 U.S.C. 78a.
    \3\ 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 proposes to amend the section of its Schedule of Fees 
and Charges for Exchange Services (the ``Schedule''). While changes to 
the Schedule pursuant to this proposal will be effective upon filing, 
the changes will become operative on March 2, 2009. The amended section 
of the Schedule is included as Exhibit 5 hereto.\4\ A copy of this 
filing is available on the Exchange's Web site at http://www.nyse.com, 
at the Exchange's principal office and at the Commission's Public 
Reference Room.
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    \4\ The Commission notes that while provided in Exhibit 5 to the 
filing, the text of the proposed rule change is not attached to this 
notice but is available at the Commission's Public Reference Room 
and at http://www.nyse.com.
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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 self-regulatory organization 
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 those 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 parts 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 proposes to make multiple changes to its Schedule that 
will take effect on March 2, 2009. A more detailed description of the 
proposed changes follows.
Tier 1 Rate Changes
    Tier 1 rates are applied to customers with an average daily share 
volume per month greater than 90 million shares in Tape A, B and C, 
including adding liquidity of more than 45 million shares. In Tape A 
and Tape C securities the Exchange will continue its inverted pricing 
structure, but proposes a new rebate of $0.0029 for orders that add 
liquidity and new fee of $0.0028 for orders that remove liquidity. 
Previously in Tape A and Tape C securities the Exchange paid a rebate 
of $0.0028 for orders that added liquidity and charged a fee of $0.0027 
for orders that removed liquidity.
Mid-Point Passive Liquidity Orders
    The Exchange proposes a rebate of $0.0020 per share for resting 
Mid-point Passive Liquidity (``MPL'') Orders \5\ in Tape A and Tape C 
securities for all customers. Previously the Exchange paid a rebate of 
$0.0015 for resting MPL orders in Tape A and Tape C securities. The 
Exchange proposes a rebate of $0.0010 per share for resting MPL orders

[[Page 10641]]

in Tape B securities for all customers. Previously the Exchange did not 
pay a rebate for resting MPL orders in Tape B securities.
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    \5\ The MPL order is an undisplayed limit order that offers 
price improvement to customers by executing at the mid-point of the 
National Best Bid and Offer (NBBO). MPL orders will generally 
interact with all order types including contra MPLs, but excluding 
cross or directed orders.
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Orders Routed to the NYSE in Tape A
    The Exchange proposes a $0.0018 per share fee for orders in Tape A 
securities routed outside the Book to the NYSE for customers qualifying 
for Tier 1, Tier 2 or the Take Tier. Previously the Exchange charged 
$0.0008 per share for orders in Tape A securities routed outside the 
Book to the NYSE in Tier 1, Tier 2, and the Take Tier. The Exchange 
proposes a $0.0020 per share fee for orders in Tape A securities routed 
outside the Book to the NYSE for customers qualifying for Basic Rates.
    The following changes apply universally to all tiered pricing and 
basic rate pricing in Tape A securities. The Exchange proposes a 
$0.0016 per share fee for Primary Sweep Orders in Tape A securities 
routed outside the book to the NYSE. Previously the Exchange charged 
$0.0006 per share fee for Primary Sweep Orders in Tape A securities 
routed outside the book to the NYSE. The Exchange also proposes a 
$0.0018 per share fee for Primary Only Plus (``PO+'') Orders routed to 
the NYSE that remove liquidity. Previously the Exchange charged an 
$0.0008 per share fee for Primary Only Plus (``PO+'') Orders routed to 
the NYSE that removed liquidity. The Exchange will continue to charge 
no fee for PO and PO+ Orders routed to the NYSE for participation at 
the open. To compliment the new PO+ fee, the Exchange proposes a 
$0.0010 per share credit for PO+ Orders that provide liquidity to the 
NYSE. Previously the Exchange did not pay a rebate for PO+ Orders 
providing liquidity to the NYSE. For PO+ Market-On-Close (``MOC'') and 
Limit-On-Close (``LOC'') Orders routed to the NYSE, the Exchange 
proposes a $0.0005 per share fee. Previously the Exchange charged a 
$0.0004 per share fee PO+ MOC and LOC Orders routed to the NYSE.
Basic Rate Changes
    Basic Rates apply to those customers that do not reach one of the 
volume tiered pricing levels. The Exchange proposes a Basic Rate fee of 
$0.0030 for orders that remove liquidity in Tape A and Tape C 
securities. This fee was previously $0.0029. The rebate for orders that 
add liquidity will remain unchanged at $0.0023.
IOI Tier Changes
    The Exchange also proposes adding an additional IOI Tier. The new 
Tier 1 will pay a rebate of $.0012 per share for ETP Holders and Market 
Makers that send an IOI to the Exchange resulting in an execution with 
an average daily share volume per month greater than or equal to 10 
million shares. The current Tier 1 will become the new Tier 2 and will 
pay a rebate of $0.001 per share for ETP Holders and Market Makers that 
send an IOI to the Exchange resulting in an execution with an average 
daily share volume per month between 5 million shares and 9,999,999 
shares. Finally, the current Tier 2 will become the new Tier 3 and will 
pay a rebate of $0.0005 per share for ETP Holders and Market Makers 
that send an IOI to the Exchange resulting in an execution with an 
average daily share volume per month between 2.5 million shares and 
4,999,999 shares.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the provisions of Section 6 of the Securities Exchange Act of 1934 
(the ``Act''), in general, and Section 6(b)(4) of the Act, in 
particular, in that it is designed to provide for the equitable 
allocation of reasonable dues, fees, and other charges among its 
members and other persons using its facilities. The proposed rates are 
part of the Exchange's continued effort to attract and enhance 
participation on the Exchange, by offering attractive rebates for 
liquidity providers and volume-based incentives. The Exchange believes 
that the proposed changes to the Schedule are equitable in that they 
apply uniformly to our Users.

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

    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 is effective upon filing pursuant to 
Section 19(b)(3)(A) \6\ of the Act and subparagraph (f)(2) of Rule 19b-
4 \7\ thereunder, because it establishes a due, fee, or other charge 
imposed by NYSE Arca on its members. 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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    \6\ 15 U.S.C. 78s(b)(3)(A).
    \7\ 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. 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-2009-15 on the subject line.

Paper Comments

     Send paper comments in triplicate to Elizabeth M. Murphy, 
Secretary, Securities and Exchange Commission, 100 F Street, NE., 
Washington, DC 20549-1090.

All submissions should refer to File Number SR-NYSEArca-2009-15. 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, 100 F Street, 
NE., Washington, DC 20549, on official business days between the hours 
of 10 a.m. and 3 p.m. Copies of the filing will also be available for 
inspection and copying at the principal office of the self-regulatory 
organization. All comments received will be posted without change; the 
Commission does not edit personal identifying information from 
submissions. You should submit only

[[Page 10642]]

information that you wish to make available publicly. All submissions 
should refer to File Number SR-NYSEArca-2009-15 and should be submitted 
on or before April 1, 2009.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\8\
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    \8\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E9-5204 Filed 3-10-09; 8:45 am]
BILLING CODE 8011-01-P