[Federal Register Volume 77, Number 89 (Tuesday, May 8, 2012)]
[Notices]
[Pages 27106-27107]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-11001]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-66904; File No. SR-NYSEArca-2012-40]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change Implementing a Fee
Change for the Floor Broker Electronic Order Capture Device
May 2, 2012.
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 April 30, 2012, NYSE Arca, Inc. (the ``Exchange'' or ``NYSE Arca'')
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 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\ 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 NYSE Arca Options Fee Schedule
(``Fee Schedule'') to revise the fee for the Floor Broker Electronic
Order Capture Device (``EOC Device''). The text of the proposed rule
change is available at the Exchange, the Commission's Public Reference
Room, and 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, 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 amend the Fee Schedule to revise the fee
for the EOC Device.
[[Page 27107]]
The EOC Device is used by Floor Brokerage operations to comply with
the requirements of NYSE Arca Rule 6.67, Order Format and System Entry
Requirements, namely, the systemization of order details and electronic
tracking of all events in the life of an order, up to and including
cancellation or execution. The Exchange's current Electronic Order
Capture System \3\ platform was implemented in February 2010, and the
$175 monthly fee for the new EOC Devices began being charged on March
1, 2010.
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\3\ See NYSE Arca Rule 6.1(b)(39).
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Effective May 1, 2012, the Exchange proposes to cap the current
monthly fee of $175 for each EOC Device at $4,200, which represents 24
months of charges. If any OTP Holder has paid more than $4,200 as of
that date, the Exchange will provide a credit so that such OTP Holder
will be charged the same total amount as other OTP Holders.\4\ If an
OTP Holder requests a new EOC Device or the Exchange replaces the
current Electronic Order Capture System platform, the OTP Holder will
be charged $175 per month for each new EOC Device until the $4,200 cap
is reached again.
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\4\ For example, if an OTP Holder began using an EOC Device on
March 1, 2010, the OTP Holder will have paid a total of $4,550 by
May 1, 2012. The Exchange will credit such an OTP Holder $350.
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2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the provisions of Section 6(b) \5\ of the Securities Exchange Act
of 1934 (the ``Act''), in general, and Section 6(b)(4) \6\ 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 and is not unfairly
discriminatory. The Exchange believes that it is reasonable to
implement a cap that takes into account (1) the value to the OTP Holder
of the equipment, installation, and maintenance provided by the
Exchange, and (2) the cost to the Exchange of providing such resources
and services. In addition, the Exchange believes that it is reasonable
to resume the monthly fee if an OTP Holder requests a new EOC Device or
the Exchange replaces the current platform because the Exchange will be
incurring new costs to provide a new EOC Device. The Exchange also
believes that the cap is equitably allocated and not unfairly
discriminatory because it will apply to all OTP Holders beginning on
the same date and take into account payments made for EOC Devices
currently used. The Exchange recognizes that certain OTP Holders have
been using an EOC Device since February 2010, when the most recent
Electronic Order Capture System was implemented, and will provide a
credit so that all OTP Holders using the current EOC Device will be
subject to the same total fees. As such, the Exchange believes that the
proposed change is reasonable, equitable, and not unfairly
discriminatory.
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\5\ 15 U.S.C. 78f(b).
\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 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) \7\ of the Act and subparagraph (f)(2) of Rule 19b-
4 \8\ thereunder, because it establishes a due, fee, or other charge
imposed by the NYSE Arca.
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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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At any time within 60 days of the filing of such proposed rule
change, the Commission summarily may temporarily suspend 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 email to [email protected]. Please include
File Number SR-NYSEArca-2012-40 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-2012-40. This
file number should be included on the subject line if email 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 Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549, on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such 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-2012-40 and should
be submitted on or before May 29, 2012.
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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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-11001 Filed 5-7-12; 8:45 am]
BILLING CODE 8011-01-P