[Federal Register Volume 74, Number 203 (Thursday, October 22, 2009)]
[Notices]
[Pages 54612-54613]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-25429]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-60834; File No. SR-NYSEArca-2009-88]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change Amending Its
Schedule of Fees and Charges for Exchange Services
October 16, 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 September 30, 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. NYSE Arca filed the proposal pursuant to
Section 19(b)(3)(A) \4\ of the Act and Rule 19b-4(f)(2) \5\ thereunder.
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.
\4\ 15 U.S.C. 78s(b)(3)(A).
\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 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 October 1, 2009. 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.
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,
[[Page 54613]]
of the most significant parts 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 make changes to its Schedule that will
take effect on October 1, 2009. A more detailed description of the
proposed changes follows.
PO and PO+ Orders routed to Amex:
The Exchange proposes to add a new rate for PO and PO+ orders
(collectively ``PO Orders'') routed to Amex in Tape B securities. The
Exchange will pay a $0.0030 per share credit for PO Orders routed to
Amex that provide liquidity to the NYSE Amex Book. The Exchange will
also charge a fee of $0.0025 per share for PO Orders routed to Amex
that remove liquidity from the NYSE Amex Book. These fees will mirror
the inverted pricing available on Amex, also scheduled to become
effective on October 1, 2009.
Auction Orders:
The Exchange also proposes to charge $0.0007 for Market-On-Close
(``MOC'') and Limit-On-Close (``LOC'') orders executed in the Closing
Auction in all Tape A and Tape C securities. The proposed rate is
applicable to all tiers and basic rate pricing. This brings the rate in
line with the current rate charged for MOC/LOC orders executed in Tape
C ETF and ETNs. The Exchange also proposes to charge $0.0007 for PO
Orders routed to the New York Stock Exchange (``NYSE'') and NYSE Amex
that execute in the opening auction. This brings the rate in line with
the current rate charged for PO Orders routed to the NYSE or NYSE Amex
that execute in the closing auction, and is applicable to all tiered
and basic rate pricing levels. The Exchange further proposes to charge
$0.0007 per share for orders executed in the Opening or Market Order
Auction in NYSE Arca primary listed securities. This brings the rate in
line with the current rate charged for MOC and LOC orders executed in
the Closing Auction in NYSE Arca primary listed securities, and is
applicable to all tiered and basic rate pricing levels.
Finally, the Exchange proposes to clarify that the rebate paid to
Lead Market Makers for orders that provide liquidity to the Book will
only apply to displayed liquidity. This is consistent with the current
practice and simply adds clarity to the Schedule.
The Exchange believes the proposed fees are reasonable and
equitable in that they apply uniformly to all ETP Holders. The proposed
changes will become operative on October 1, 2009.
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''),\6\ in general, and 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 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.
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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
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) \8\ of the Act and subparagraph (f)(2) of Rule 19b-
4 \9\ thereunder, because it establishes a due, fee, or other charge
imposed by NYSE Arca on its members.
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\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 17 CFR 240.19b-4(f)(2).
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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.
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-2009-88 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-2009-88. 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 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 Number SR-NYSEArca-2009-88 and should
be submitted on or before November 12, 2009.
For the Commission, by the Division of Trading and Markets,
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. E9-25429 Filed 10-21-09; 8:45 am]
BILLING CODE 8011-01-P