[Federal Register Volume 73, Number 18 (Monday, January 28, 2008)]
[Notices]
[Pages 4929-4931]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-1374]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-57176; File No. SR-NYSE-2008-04]
Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Implement a Four-Month Pilot Program To Offer Liquidity Takers a
Reduced Transaction Fee Structure for Certain Bond Trades Executed on
the NYSE Bonds\SM\ System
January 18, 2008.
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 January 11, 2008, the New York Stock Exchange LLC ( ``NYSE'' or the
``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 NYSE.
The Exchange has designated this proposal as one establishing or
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changing a due, fee, or other charge imposed by the Exchange under
Section 19(b)(3)(A)(ii) of the Act \3\ and Rule 19b-4(f)(2)
thereunder,\4\ which renders the proposal 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)(ii).
\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 implement a four-month pilot program that
will offer liquidity takers a reduced transaction fee structure for
certain bond trades executed on the NYSE Bonds\SM\ system. This pilot
program will terminate on the close of business May 15, 2008 and will
apply to all orders. The text of the proposed rule change is available
at the Exchange's principal office, in the Commission's Public
Reference Room, and at 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, 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
text of these statements may be examined at the places specified in
Item IV below. NYSE 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
The Exchange proposes to implement a four-month pilot program that
will offer liquidity takers a reduced transaction fee structure for
transaction fees for certain bond trades executed on NYSE Bonds. This
pilot program will commence on January 15, 2008 and will terminate at
the close of business May 15, 2008.
The Exchange proposes to reduce transaction fees charged to
liquidity takers for transactions executed on NYSE Bonds with a
staggered transaction fee schedule based on the number of bonds
purchased in excess of ten bonds. Currently, the transaction fee for
orders that take liquidity from the market is $0.50 per bond. This fee
remains unchanged for orders up to ten bonds. The proposed fee filing
provides for the following transaction fee schedule: (1) When the
liquidity taker purchases between one to ten bonds, the Exchange will
charge an execution fee of $0.50 per bond; (2) when the liquidity taker
purchases between 11 and 25 bonds, the Exchange will charge an
execution fee of $0.20 per bond; and (3) when the liquidity taker
purchases 26 bonds or more, the Exchange will charge an execution fee
of $0.10 per bond. The Exchange will impose a $100 fee cap per
transaction.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the provisions of Section 6 of the Act \5\ in general and furthers
the objectives of Section 6(b)(4) of the Act \6\ 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.
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\5\ 15 U.S.C. 78f.
\6\ 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 purposes of the Act.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants or Others
The Exchange has neither solicited nor received written comments on
the proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing rule change establishes or changes a due,
fee, or other charge imposed by the Exchange, it has become effective
pursuant to Section 19(b)(3)(A) of the Act \7\ and subparagraph (f)(2)
of Rule 19b-4 thereunder.\8\ 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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\7\ 15 U.S.C. 78s(b)(3)(A).
\8\ 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-NYSE-2008-04 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-2008-04. 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 such filing also will be available for
inspection and copying at the principal office of 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-4-NYSE-2008-04 and should be
submitted on or before February 19, 2008.
[[Page 4931]]
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
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\9\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8-1374 Filed 1-25-08; 8:45 am]
BILLING CODE 8011-01-P