Bob Airo, Vice President
NYSE Group

Laura Morrison, Managing Director
NYSE Group

Dear Ms. Morrison and Dear Mr. Airo:

As you know, the NYSE has recently posted a Rule 600 TC Fee Schedule change with the SEC. Presently, Bay Crest Partners, LLC believes the following:

  1. As in the NYSE lease-to-permit process change, though an overwhelmingly a good idea, had poor initial execution as to pricing to the Membership - so does this fee change in the way it is initially being rolled out.

  2. Larger Member Firms will have a substantially smaller increase (due to the 750 K cap) than smaller firms.

  3. The NYSE will be the beneficiary of duplicative charges collected under the proposed fee schedule change if a Member Firm should come into contact with another Member Firm's order.

  4. The NYSE impact to Bay Crest statement grossly underestimates the fee increase to Bay Crest.

  5. The fee change is solely an NYSE Group earnings management tool that will ultimately backfire as Member Firms seek non-NYSE avenues for order execution (in fact, rule NMS may actually support this).

Please respond at your earliest convenience to our speculations as we have retained counsel to make comment to the SEC regarding this matter.


Joseph McCaffrey
CEO & Managing LLC Member

Amerivest Partners, LLC
(212) 422-0404 (Phone)

Bay Crest Partners, LLC
(212) 480-1400 (Phone)

40 Wall Street, 45th Floor
New York, NY 10005
(212) 248-3815 Fax

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