The Commission finds that the proposed rule change, to extend the pilot program for two months, is
[[Page 66958]]
consistent with the requirements of the Act and the rules and regulations thereunder applicable to a national securities exchange.\9\ In particular, it is consistent with section 6(b)(4) of the Act,\10\ which requires that the rules of a national securities exchange provide for the equitable allocation of reasonable dues, fees, and other charges among its members and issuers and other parties using its facilities, and section 6(b)(5) of the Act,\11\ which requires, among other things, that the rules of a national securities exchange be designed to promote just and equitable principles of trade, to remove impediments to and perfect the mechanism of a free and open market and a national market system and, in general, to protect investors and the public interest, and not be designed to permit unfair discrimination between customers, issuers, brokers, or dealers.
\9\ In approving this proposed rule change, the Commission has considered the proposed rule's impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f).
\10\ 15 U.S.C. 78f(b)(4).

\11\ 15 U.S.C. 78f(b)(5).

The Commission also finds that the proposed rule change is consistent with the provisions of section 6(b)(8) of the Act,\12\ which requires that the rules of an exchange not impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act. Finally, the Commission finds that the proposed rule change is consistent with Rule 603(a) of Regulation NMS,\13\ adopted under section 11A(c)(1) of the Act, which requires an exclusive processor that distributes information with respect to quotations for or transactions in an NMS stock to do so on terms that are fair and reasonable and that are not unreasonably discriminatory.\14\ \12\ 15 U.S.C. 78f(b)(8).
\13\ 17 CFR 242.603(a).
\14\ NYSE Arca is an exclusive processor of its last sale data under Section 3(a)(22)(B) of the Act, 15 U.S.C. 78c(a)(22)(B), which defines an exclusive processor as, among other things, an exchange that distributes data on an exclusive basis on its own behalf.

The Commission approved the fee for NYSE Arca Realtime Reference Prices for a pilot period which runs until October 31, 2008.\15\ The Commission notes that the Exchange proposes to extend the pilot program for two months. The Exchange proposes no other changes to the existing pilot program.

\15\ See supra note 3.

On June 4, 2008, the Commission approved for public comment a draft approval order that sets forth a marketbased approach for analyzing proposals by selfregulatory organizations to impose fees for ``non core'' market data products that would encompass the NYSE Arca Realtime Reference Prices.\16\ The Commission believes that the proposal is consistent with the Act for the reasons noted preliminarily in the Draft Approval Order. Pending review by the Commission of comments received on the Draft Approval Order, and final Commission action thereon, the Commission believes that approving NYSE Arca's proposal to extend the pilot program that imposes a fee for NYSE Arca Realtime Reference Prices for two months would be beneficial to investors and in the public interest, in that it should result in increased broad public dissemination of realtime pricing information. The broader approach ultimately taken by the Commission with respect to noncore market data fees will necessarily guide Commission action regarding fees for the NYSE Arca Realtime Reference Prices beyond the pilot period. \16\ See Securities Exchange Act Release No. 57917 (June 4, 2008), 73 FR 32751 (June 10, 2008) (Notice of Proposed Order Approving Proposal by NYSE Arca, Inc. to Establish Fees for Certain Market Data and Request for Comment) (``Draft Approval Order'').

The Commission finds good cause for approving the proposed rule change before the thirtieth day after the date of publication of notice of filing thereof in the Federal Register. Accelerating approval of this proposal should benefit investors by facilitating their access to widespread, free, realtime pricing information contained in the NYSE Arca Realtime Reference Prices. Therefore, the Commission finds good cause, consistent with Section 19(b)(2) of the Act,\17\ to approve the proposed rule change on an accelerated basis to extend the operation of the pilot until December 31, 2008, while the Commission analyzes comments on the Draft Approval Order.
\17\ 15 U.S.C. 78s(b)(2).

V. Conclusion

It is therefore ordered, pursuant to section 19(b)(2) of the Act, that the proposed rule change (SRNYSEArca2008122) is hereby approved on an accelerated basis until December 31, 2008.

For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\18\
\18\ 17 CFR 200.303(a)(12).
Florence E. Harmon,
Acting Secretary.
[FR Doc. E826627 Filed 111008; 8:45 am]
BILLING CODE 801101P

SUMMARY: NYSE Arca, Inc.,

DOCUMENT BODY 2: October 31, 2008.

Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 (``Act'') \1\ and Rule 19b4 thereunder,\2\ notice is hereby given that on October 31, 2008, 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 and II below, which Items have been prepared by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons, and is approving the proposal on an accelerated basis.
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b4.
I. SelfRegulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change

The Exchange proposes to extend the expiration date of its pilot program for the NYSE Arca Realtime Reference
[[Page 66957]]
Prices service until December 31, 2008. There is no new rule text. II. SelfRegulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change

In its filing with the Commission, the selfregulatory 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 III below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant parts of such statements.
A. SelfRegulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change

1. Purpose

In File No. SRNYSEArca200896, the Exchange established a pilot program that allows the Exchange to test the viability of a new NYSE Arcaonly market data service that allows a vendor to redistribute on a realtime basis last sale prices of transactions that take place on the Exchange (``NYSE Arca Realtime Reference Prices'') and to establish a flat monthly fee for that service. The Commission approved that pilot program on August 29, 2008.\3\
\3\ See Securities Exchange Act Release No. 58444 (August 29, 2008), 73 FR 51872 (September 5, 2008) (SRNYSEArca200896).

The Exchange intends for the NYSE Arca Realtime Reference Prices service to accomplish three goals:

1. To provide a lowcost service that will make realtime prices widely available to millions of casual investors;

2. To provide vendors with a realtime substitute for delayed prices; and

3. To relieve vendors of administrative burdens. This pilot program is similar to pilot programs that the Nasdaq Stock Market, Inc. (``Nasdaq''),\4\ and the New York Stock Exchange, LLC (``NYSE''),\5\ have established.
\4\ See Securities Exchange Act Release Nos. 57965 (June 16, 2008), 73 FR 35178 (June 20, 2008) (SRNASDAQ2006060); 57973 (June 16, 2008), 73 FR 35430 (June 23, 2008) (SRNASDAQ2008050).
\5\ See Securities Exchange Act Release No. 57966 (June 16, 2008), 73 FR 35182 (June 20, 2008) (SRNYSE200704).

The pilot program allows internet service providers, traditional market data vendors, and others (``NYSE ArcaOnly Vendors'') to make available NYSE Arca Realtime Reference Prices on a realtime basis.\6\ The NYSE Arca Realtime Reference Price information includes last sale prices for all securities that trade on the Exchange. It includes only prices, and not the size of each trade and not bid/asked quotations. \6\ The Exchange notes that it will make the NYSE Arca Realtime Reference Prices available to vendors no earlier than it makes those prices available to the processor under the CTA Plan.

It features a flat, fixed monthly vendor fee, no userbased fees, no vendor reporting requirements, and no professional or non professional subscriber agreements.

The Exchange established November 1, 2008, as the end date for the pilot program. The Exchange now seeks to extend that end date to December 31, 2008. Prior to the end of the pilot period, the Exchange will assess its experience with the product and either will submit a proposed rule change that seeks to extend or modify the pilot program or to make it permanent, or it will announce publicly that it does not seek to extend the pilot program beyond the program's termination date. 2. Statutory Basis

The basis under the Act for this proposed rule change is the requirement under Section 6(b)(4) \7\ that an exchange have rules that provide for the equitable allocation of reasonable dues, fees and other charges among its members and other persons using its facilities and the requirements under Section 6(b)(5) \8\ that the rules of an exchange be designed to promote just and equitable principles of trade and not to permit unfair discrimination between customers, issuers, brokers or dealers.
\7\ 15 U.S.C. 78f(b)(4).

\8\ 15 U.S.C. 78f(b)(5).

The Exchange believes that the pilot program benefits investors by facilitating their prompt access to widespread, free, realtime pricing information contained in the NYSE Arca Realtime Reference Prices service. Extending the pilot program will extend those benefits while the Exchange assesses the service.
B. SelfRegulatory Organization's Statement on Burden on Competition

The Exchange does not believe that this proposed rule change will result in any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act.
C. SelfRegulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants or Others

The Exchange has not received any unsolicited written comments from members or other interested parties.

III. 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

The Commission finds that the proposed rule change, to extend the pilot program for two months, is
[[Page 66958]]
consistent with the requirements of the Act and the rules and regulations thereunder applicable to a national securities exchange.\9\ In particular, it is consistent with section 6(b)(4) of the Act,\10\ which requires that the rules of a national securities exchange provide for the equitable allocation of reasonable dues, fees, and other charges among its members and issuers and other parties using its facilities, and section 6(b)(5) of the Act,\11\ which requires, among other things, that the rules of a national securities exchange be designed to promote just and equitable principles of trade, to remove impediments to and perfect the mechanism of a free and open market and a national market system and, in general, to protect investors and the public interest, and not be designed to permit unfair discrimination between customers, issuers, brokers, or dealers.
\9\ In approving this proposed rule change, the Commission has considered the proposed rule's impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f).
\10\ 15 U.S.C. 78f(b)(4).

\11\ 15 U.S.C. 78f(b)(5).

The Commission also finds that the proposed rule change is consistent with the provisions of section 6(b)(8) of the Act,\12\ which requires that the rules of an exchange not impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act. Finally, the Commission finds that the proposed rule change is consistent with Rule 603(a) of Regulation NMS,\13\ adopted under section 11A(c)(1) of the Act, which requires an exclusive processor that distributes information with respect to quotations for or transactions in an NMS stock to do so on terms that are fair and reasonable and that are not unreasonably discriminatory.\14\ \12\ 15 U.S.C. 78f(b)(8).
\13\ 17 CFR 242.603(a).
\14\ NYSE Arca is an exclusive processor of its last sale data under Section 3(a)(22)(B) of the Act, 15 U.S.C. 78c(a)(22)(B), which defines an exclusive processor as, among other things, an exchange that distributes data on an exclusive basis on its own behalf.

The Commission approved the fee for NYSE Arca Realtime Reference Prices for a pilot period which runs until October 31, 2008.\15\ The Commission notes that the Exchange proposes to extend the pilot program for two months. The Exchange proposes no other changes to the existing pilot program.

\15\ See supra note 3.

On June 4, 2008, the Commission approved for public comment a draft approval order that sets forth a marketbased approach for analyzing proposals by selfregulatory organizations to impose fees for ``non core'' market data products that would encompass the NYSE Arca Realtime Reference Prices.\16\ The Commission believes that the proposal is consistent with the Act for the reasons noted preliminarily in the Draft Approval Order. Pending review by the Commission of comments received on the Draft Approval Order, and final Commission action thereon, the Commission believes that approving NYSE Arca's proposal to extend the pilot program that imposes a fee for NYSE Arca Realtime Reference Prices for two months would be beneficial to investors and in the public interest, in that it should result in increased broad public dissemination of realtime pricing information. The broader approach ultimately taken by the Commission with respect to noncore market data fees will necessarily guide Commission action regarding fees for the NYSE Arca Realtime Reference Prices beyond the pilot period. \16\ See Securities Exchange Act Release No. 57917 (June 4, 2008), 73 FR 32751 (June 10, 2008) (Notice of Proposed Order Approving Proposal by NYSE Arca, Inc. to Establish Fees for Certain Market Data and Request for Comment) (``Draft Approval Order'').

The Commission finds good cause for approving the proposed rule change before the thirtieth day after the date of publication of notice of filing thereof in the Federal Register. Accelerating approval of this proposal should benefit investors by facilitating their access to widespread, free, realtime pricing information contained in the NYSE Arca Realtime Reference Prices. Therefore, the Commission finds good cause, consistent with Section 19(b)(2) of the Act,\17\ to approve the proposed rule change on an accelerated basis to extend the operation of the pilot until December 31, 2008, while the Commission analyzes comments on the Draft Approval Order.
\17\ 15 U.S.C. 78s(b)(2).

V. Conclusion

It is therefore ordered, pursuant to section 19(b)(2) of the Act, that the proposed rule change (SRNYSEArca2008122) is hereby approved on an accelerated basis until December 31, 2008.

For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\18\
\18\ 17 CFR 200.303(a)(12).
Florence E. Harmon,
Acting Secretary.
[FR Doc. E826627 Filed 111008; 8:45 am]
BILLING CODE 801101P