[Federal Register Volume 73, Number 215 (Wednesday, November 5, 2008)]
[Notices]
[Pages 65912-65913]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-26346]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-58878; File No. SR-NYSEArca-2008-114]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
of Proposed Rule Change To Revise the Listing and Annual Fees
Applicable to Paired Trust Shares
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 22, 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 NYSE Arca. 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.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
NYSE Arca, through its wholly owned subsidiary NYSE Arca Equities,
Inc. (``NYSE Arca Equities''), is proposing to amend its Schedule of
Fees and Charges (``Fee Schedule'') to revise the listing and annual
fees applicable to Paired Trust Shares listed on NYSE Arca, LLC (``NYSE
Arca Marketplace''), the equities facility of NYSE Arca Equities. The
text of the proposed rule change 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, 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
NYSE Arca has determined to revise Exchange listing fees under the
Exchange's Schedule of Fees and Charges for Exchange Services (``Fee
Schedule'') to include Paired Trust Shares listed under NYSE Arca
Equities Rule 8.400 under the term ``Structured Products'' \3\ for
purposes of the Fee Schedule, rather than under the term ``Derivative
Securities Products,'' \4\ where Paired Trust Shares are currently
included. Therefore, the Exchange proposes to delete the term ``Paired
Trust Shares'' from Footnote 3 of the Fee Schedule and to add such term
in Footnote 4 of the Fee Schedule.
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\3\ As set forth in footnote 4 of the Fee Schedule, Structured
Products currently are defined as securities listed under Rule
5.2(j)(1) (Other Securities); 5.2(j)(2) (Equity Linked Notes); Rule
5.2(j)(4) (Index-Linked Exchangeable Notes); Rule 5.2(j)(6) (Equity
Index-Linked Securities, Commodity-Linked Securities, and Currency-
Linked Securities); and Rule 8.3 (Currency and Index Warrants).
\4\ As set forth in footnote 3 of the Fee Schedule, Derivative
Securities Products currently include securities described in NYSE
Arca Equities Rules 5.2(j)(3) (Investment Company Units); 8.100
(Portfolio Depositary Receipts); 8.200 (Trust Issued Receipts),
8.201 (Commodity-Based Trust Shares); 8.202 (Currency Trust Shares);
8.203 (Commodity Index Trust Shares); 8.204 (Commodity Futures Trust
Shares); 8.300 (Partnership Units); 8.400 (Paired Trust Shares);
8.500 (Trust Units); and 8.600 (Managed Fund Shares).
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Under the current Fee Schedule, the Listing Fee for Derivative
Securities Products is $5,000 per issue. The Listing Fee for Structured
Products is based on the number of shares outstanding, and ranges from
$5,000 to $45,000 per issue. The Annual Fee for Derivative Securities
Products is based on the number of shares outstanding per issue, and
ranges from $2,000 to $25,000. The Annual Fee for Structured Products
also is based on the number of shares outstanding per issue, and ranges
from $10,000 to $55,000.
The Exchange believes Paired Trust Shares \5\ are appropriately
categorized as Structured Products for purposes of the Fee Schedule.
The trusts issuing such securities, like issuers of other categories of
Structured Products and unlike issuers of Derivative Securities
Products, do not hold underlying securities, commodities, futures or
other financial instruments (other than U.S. Treasuries, and repurchase
agreements on U.S. Treasuries to secure specified obligations).
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\5\ Paired Trust Shares currently traded on the Exchange
pursuant to Rule 8.400 include shares of the MacroShares Oil Trusts,
which are traded on the Exchange pursuant to unlisted trading
privileges. See Securities Exchange Act Release No. 58058 (June 30,
2008), 73 FR 38484 (July 7, 2008) (SR-NYSEArca-2008-65). The
Commission has approved MacroShares Medical Inflation Trusts for
listing on the Exchange pursuant to Rule 8.400. See Securities
Exchange Act Release No. 58312 (August 5, 2008), 73 FR 46689 (August
11, 2008) (SR-NYSEArca-2008-63). In addition, the Commission has
approved MacroShares Major Metro Housing Trusts for listing on the
Exchange pursuant to Rule 8.400. See Securities Exchange Act Release
No. 58704 (October 1, 2008), 73 FR 59026 (October 8, 2008) (SR-
NYSEArca-2008-92). However, no issue of Paired Trust Shares is
currently listed on the Exchange.
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In addition, the Exchange proposes to amend punctuation in Footnote
4 of the Fee Schedule and to amend Footnote 4 to add Fixed Income
Index-Linked Securities, Futures-Linked Securities and Multifactor
Index-Linked Securities to the securities covered by Rule 5.2(j)(6).
Following Commission approval of the most recent amendment to Footnote
4 to the Fee Schedule,\6\ Rule 5.2(j)(6) was amended to include these
securities.\7\ The Exchange, therefore, proposes to update Footnote 4
to reflect that such securities are covered by Rule 5.2(j)(6).
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\6\ See Securities Exchange Act Release No. 56975 (December 17,
2007), 72 FR 73393 (December 27, 2007) (SR-NYSEArca-2007-87) (order
approving amendments to Fee Schedule relating to Structured
Products).
\7\ See Securities Exchange Act Release No. 57701 (April 23,
2008), 73 FR 23281 (April 29, 2008) (SR-NYSEArca-2008-20) (order
approving amendments to Rule 5.2(j)(6) relating to Fixed Income
Index-Linked Securities, Futures-Linked Securities and Multifactor
Index-Linked Securities).
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2. Statutory Basis
NYSE Arca believes that the proposal is consistent with Section
6(b) \8\ of the
[[Page 65913]]
Act, in general, and Section 6(b)(4) \9\ of the Act, in particular, in
that it provides for the equitable allocation of reasonable dues, fees
and other charges among its issuers and other persons using its
facilities. The Exchange believes Paired Trust Shares are appropriately
categorized as Structured Products for purposes of the Fee Schedule.
The proposed amendment would therefore permit assessment of comparable
fees to similarly structured products.
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\8\ 15 U.S.C. 78f(b).
\9\ 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
Within 35 days of the date of publication of this notice in the
Federal Register or within such longer period (i) as the Commission may
designate up to 90 days of such date if it finds such longer period to
be appropriate and publishes its reasons for so finding or (ii) as to
which the self-regulatory organization consents, the Commission will:
A. by order approve the proposed rule change; or
B. institute proceedings to determine whether the proposed rule
change should be disapproved.
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-2008-114 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-2008-114. 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-2008-114 and should
be submitted on or before November 26, 2008.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
Florence E. Harmon,
Acting Secretary.
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\10\ 17 CFR 200.30-3(a)(12).
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[FR Doc. E8-26346 Filed 11-4-08; 8:45 am]
BILLING CODE 8011-01-P