[Federal Register Volume 73, Number 215 (Wednesday, November 5, 2008)]
[Notices]
[Pages 65916-65917]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-26345]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-58875; File No. SR-NYSEArca-2008-117]
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 29, 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 October 28, 2008, NYSE Arca, Inc. (``NYSE Arca'' 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 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 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).
\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 amend its Schedule of Fees and Charges for
Exchange Services. The text of the proposed rule change is attached as
Exhibit 5 to the proposed rule change 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 Exchange 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. 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
The purpose of this filing is to amend the Royalty Fees section of
the NYSE Arca Schedule of Rates and Charges (``Schedule'') by adding a
new fee for transactions in Foreign Currency Options (``FCO'').
The Exchange recently filed with the U.S. Securities and Exchange
Commission (``Commission``) a proposal that will allow the Exchange to
list and trade FCOs.\5\ The Exchange intends to license the contract
terms governing FCOs from the International Securities Exchange
(``ISE``) and in turn list and trade specific ISE proprietary FCO
products, commonly known as FX ISE Foreign Currency Options.
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\5\ See Securities and Exchange Commission Release No. 34-58800,
October 16, 2008 (notice of immediate effectiveness of SR-NYSEArca-
2008-109).
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As a part of this license agreement with the ISE, NYSE Arca will
pay a fee to the ISE, on every FCO contract traded on the Exchange.
Effective with this filing, the Exchange will assess a $0.10 Royalty
Fee on a per contract basis for Firm, Broker/Dealer, and Market Maker
transactions in the following FCOs.
British Pound (BPX), Japanese Yen (YUK), Canadian Dollar (CDD),
Australian Dollar (AUX), Euro (EUI), Swiss Franc (SFC).
The Exchange also proposes to amend the existing Schedule in order
to expand the group of issues eligible for Post / Take pricing.
Currently, NYSE Arca offers market participants a Post / Take pricing
model for electronically executed transactions in issues that are
included in the Penny Pilot. In addition to the issues included in the
Penny Pilot, FCO's will also be traded in one cent increments. The
Exchange proposes to modify the Schedule to make FCO's eligible for
Post / Take pricing.\6\ The Exchange intends to apply this fee
structure in conjunction with the launch of trading in FCOs on the
Exchange.
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\6\ The Exchange has not yet implemented its Tier 1 Post/Take
pricing. As a result, the basic Post/Take pricing structure
applicable to electronic executions in Penny Pilot Issues shall
apply.
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2. Statutory Basis
The Exchange believes that the proposal is consistent with section
6(b) of the Act, in general, and section 6(b)(4), in particular, in
that it provides for the equitable allocation of dues, fees and other
charges among its members and other market participants that use the
trading facilities of NYSE Arca. The Exchange is proposing to (i)
charge its Users the same royalty fee it pays to the ISE pursuant to
its license to list and trade FCOs on the Exchange and (ii) modify the
Schedule to make FCO's eligible for Post/Take pricing.
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 proposed rule change is effective upon filing pursuant to
section 19(b)(3)(A)(ii) of the Act and SEC Rule 19b-4(f)(2) thereunder
in that it establishes or changes a due, fee, or other charge imposed
on members by the self-regulatory organization.
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-2008-117 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street, NE., Washington, DC 20549-1090.
All submissions should refer to File Number SR-NYSEArca-2008-117.
This
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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, on official
business days between the hours of 10 a.m. and 3 p.m. Copies of such
filing will also 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 No. SR-NYSEArca-2008-117 and should be submitted on or before
November 26, 2008.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\7\
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\7\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-26345 Filed 11-4-08; 8:45 am]
BILLING CODE 8011-01-P