Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by New York Stock Exchange LLC To Modify Rebates Payable to Designated Market Makers, 46816-46818 [E9-21884]
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46816
Federal Register / Vol. 74, No. 175 / Friday, September 11, 2009 / Notices
since the rule’s enactment, and (2)
update the ‘‘subject market’’ language to
make it consistent with the language
used in the SEC’s Firm Quote Rule (Rule
602 of Regulation NMS), specifically
that, if at the time an order for the
purchase or sale of the quoted security
is presented the member is in the
process of effecting a transaction and
immediately after the completion of
such transaction communicates a
revised quotation size, such member
shall not be obligated to purchase or sell
the quoted security in an amount greater
than such revised quotation size.
FINRA will announce the
implementation date of the proposed
rule change in a Regulatory Notice to be
published no later than 90 days
following Commission approval.
2. Statutory Basis
FINRA believes that the proposed rule
change is consistent with the provisions
of Section 15A(b)(6) of the Act,8 which
requires, among other things, that
FINRA rules must be designed to
prevent fraudulent and manipulative
acts and practices, to promote just and
equitable principles of trade and, in
general, to protect investors and the
public interest. FINRA believes that
adopting the proposed rules as part of
the Consolidated FINRA Rulebook will
continue to enhance market quality by
providing for increased reliability and
usefulness of quotation information.
FINRA notes that the proposed rules
have been in operation for numerous
decades and believes that they have
since proven effective in achieving the
statutory mandates.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
FINRA does not believe that the
proposed rule change will result in any
burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act.
cprice-sewell on DSKGBLS3C1PROD with NOTICES
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
Written comments were neither
solicited nor received.
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
8 15
U.S.C. 78o–3(b)(6).
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15:23 Sep 10, 2009
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publishes its reasons for so finding or
(ii) as to which the self-regulatory
organization consents, the Commission
will:
(A) By order approve such 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 (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–FINRA–2009–055 on the
subject line.
should refer to File Number SR–FINRA–
2009–055 and should be submitted on
or before October 2, 2009.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.9
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–21883 Filed 9–10–09; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–60614; File No. SR–NYSE–
2009–90]
Self-Regulatory Organizations; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change by New York
Stock Exchange LLC To Modify
Rebates Payable to Designated Market
Makers
September 2, 2009.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (the
‘‘Act’’),2 and Rule 19b–4 thereunder,3
Paper Comments
notice is hereby given that on August
• Send paper comments in triplicate
31, 2009, New York Stock Exchange
to Elizabeth M. Murphy, Secretary,
LLC (‘‘NYSE’’ or ‘‘Exchange’’) filed with
Securities and Exchange Commission,
the Securities and Exchange
100 F Street, NE., Washington, DC
Commission (‘‘Commission’’) the
20549–1090.
proposed rule changes as described in
All submissions should refer to File
Number SR–FINRA–2009–055. This file Items I, II and III below, which items
have been prepared by the Exchange.
number should be included on the
subject line if e-mail is used. To help the The Commission is publishing this
notice to solicit comments on the
Commission process and review your
proposed rule changes from interested
comments more efficiently, please use
only one method. The Commission will persons.
post all comments on the Commission’s I. Self-Regulatory Organization’s
Internet Web site (https://www.sec.gov/
Statement of the Terms of Substance of
rules/sro.shtml). Copies of the
the Proposed Rule Change
submission, all subsequent
The Exchange proposes to amend its
amendments, all written statements
schedule of rebates payable to
with respect to the proposed rule
Designated Market Makers (‘‘DMMs’’),
change that are filed with the
with effect from September 1, 2009. The
Commission, and all written
text of the proposed rule change is
communications relating to the
available on the Exchange’s Web site
proposed rule change between the
(https://www.nyse.com), at the
Commission and any person, other than
Exchange’s Office of the Secretary, and
those that may be withheld from the
at the Commission’s Public Reference
public in accordance with the
Room.
provisions of 5 U.S.C. 552, will be
available for inspection and copying in
II. Self-Regulatory Organization’s
the Commission’s Public Reference
Statement of the Purpose of, and
Room, 100 F Street, NE., Washington,
Statutory Basis for, the Proposed Rule
DC 20549, on official business days
Change
between the hours of 10 a.m. and 3 p.m.
In its filing with the Commission, the
Copies of the filing also will be available self-regulatory organization included
for inspection and copying at the
statements concerning the purpose of
principal office of FINRA. All comments and basis for the proposed rule change
received will be posted without change; and discussed any comments it received
the Commission does not edit personal
identifying information from
9 17 CFR 200.30–3(a)(12).
submissions. You should submit only
1 15 U.S.C. 78s(b)(1).
2 15 U.S.C. 78a et seq.
information that you wish to make
3 17 CFR 240.19b–4.
available publicly. All submissions
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Federal Register / Vol. 74, No. 175 / Friday, September 11, 2009 / Notices
on the proposed rule change. The text
of these statements may be examined at
the places specified in Item IV below.
The NYSE has prepared summaries, set
forth in Sections A, B and C below, of
the most significant aspects of such
statements.
cprice-sewell on DSKGBLS3C1PROD with NOTICES
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to revise its
schedule of rebates paid to DMMs for
providing liquidity on the Exchange,
with effect from September 1, 2009.
Currently, DMMs receive:
• A rebate of $0.0030 per share when
adding liquidity in round lots of active
securities (i.e., securities with an
average daily consolidated volume
(‘‘ADV’’) in the previous month equal to
or greater than 1,000,000 shares per
month) (‘‘More Active Securities’’) if the
More Active Security has a stock price
of $1.00 or more; and
• A rebate of $0.0035 per share when
adding liquidity in round lots of
securities that have an ADV of less than
1,000,000 shares per month in the
previous month (‘‘Less Active
Securities’’) if the Less Active Security
has a stock price of $1.00 or more. Each
DMM also receives all of the market
data quote revenue (the ‘‘Quoting
Share’’) received by the Exchange from
the Consolidated Tape Association
under the Revenue Allocation Formula
of Regulation NMS with respect to any
Less Active Security (regardless of
whether the stock price exceeds $1.00)
in any month in which the DMM meets
the quoting requirement of Rule
104(a)(1)(A) for that specific security.
DMMs are entitled to the foregoing
rebates when (i) posting displayed and
non-displayed orders on Display Book,
including s-quote and s-quote reserve
orders; (ii) when providing liquidity on
non-displayed interest using the Capital
Commitment Schedule; or, prior to the
implementation of the Capital
Commitment Schedule, using the
following message activities: price
improvement, size improvement (PRIN
FILL), matching away market quotes; 4
(iii) when executing trades in the crowd
and at Liquidity Replenishment Points;
and (iv) when providing liquidity on
market-at-the-close and limit-at-theclose transactions. Rebates do not apply
to executions at the open.
Commencing September 1, 2009, the
schedule of rebates for DMMs described
4 The Capital Commitment Schedule has been
implemented since this language was included in
the Price List and the language is now moot.
VerDate Nov<24>2008
15:23 Sep 10, 2009
Jkt 217001
above will be replaced with a new
schedule of rebates. Under the revised
schedule of rebates, DMMs will receive:
• A rebate of $0.0025 per share when
adding liquidity in round lots of More
Active Securities if the More Active
Security has a stock price of $1.00 or
more and the DMM quotes at the
National Best Bid or Offer (‘‘NBBO’’) in
the applicable security at least 10% of
the time in the applicable month (‘‘More
Active Securities Quoting
Requirement’’);
• A rebate of $0.0030 per share when
adding liquidity in round lots of More
Active Securities if the More Active
Security has a stock price of $1.00 or
more and the DMM meets both (i) the
More Active Securities Quoting
Requirement and (ii) the More Active
Securities Quoted Size Ratio
Requirement. A DMM will meet the
‘‘More Active Securities Quoted Size
Ratio Requirement’’ when the DMM
Quoted Size Ratio for an applicable
month is 15% of the NYSE Quoted Size.
The ‘‘NYSE Quoted Size’’ will be
calculated by multiplying the average
number of shares quoted on the NYSE
at the NBBO by the percentage of time
the NYSE had a quote posted at the
NBBO. The ‘‘DMM Quoted Size Ratio’’
will be calculated by multiplying the
average number of shares of the
applicable security quoted at the NBBO
by the DMM by the percentage of time
during which the DMM quoted at the
NBBO; 5
• A rebate of $0.0015 per share when
adding liquidity in round lots of More
Active Securities if the More Active
Security has a stock price of $1.00 or
more and the DMM does not meet the
More Active Securities Quoting
Requirement in the applicable security
in the applicable month;
• A rebate of $0.0035 per share when
adding liquidity in round lots of Less
Active Securities, if the Less Active
Security has a stock price of $1.00 or
more and the DMM quotes at the NBBO
in the applicable security at least 15%
of the time in the applicable month (the
‘‘Less Active Securities Quoting
5 The following is an example of how the DMM
Quoted Size will be calculated:
• The numerator is calculated as follows: if the
DMM quotes at the NBBO for an average of 1000
shares for 60% of the time over the course of the
month in stock ABC, then the numerator would be
600 shares = (1000 shares × 60% of the time over
the course of the month);
• The denominator is calculated as follows: if the
NYSE was at the NBBO for an average of 10,000
shares for 70% of the time over the course of the
month, then the NYSE Quoted Size is 7,000 shares
= (10,000 shares × 70% of the time over the course
of the month);
• The DMM Quoted Size Ratio is 8.5% = 600/
7000.
PO 00000
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46817
Requirement’’). Each DMM will also
receive all of the Quoting Share the
Exchange receives from the
Consolidated Tape Association under
the Revenue Allocation Formula of
Regulation NMS with respect to any
Less Active Security (regardless of
whether the stock price exceeds $1.00)
in any month in which the DMM meets
the Less Active Securities Quoting
Requirement for that specific security);
and
• A rebate of $0.0015 per share when
adding liquidity in round lots of Less
Active Securities if the Less Active
Security has a stock price of $1.00 or
more and the DMM does not meet the
Less Active Securities Quoting
Requirement in the applicable security
in the applicable month.
Rebates under the new rebate
schedule will be applied when (i)
posting displayed and non-displayed
orders on Display Book, including squote and s-quote reserve orders; (ii)
when providing liquidity on nondisplayed interest using the Capital
Commitment Schedule, and (iii) when
executing trades in the crowd and at
Liquidity Replenishment Points.6
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the provisions of Section 6 7 of the Act
in general and Section 6(b)(4) of the
Act 8 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. The Exchange
believes that the proposal does not
constitute an inequitable allocation of
dues, fees and other charges as
providing credits to DMMs when they
add liquidity to the market assists in the
effective operation of the NYSE’s market
model. The removal of the reference to
the types of messages for which the
associated executions qualified for
rebates prior to the implementation of
the Capital Commitment Schedule is not
a substantive change as the Capital
Commitment Schedule has been
implemented.
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 purpose of the Act.
6 When providing liquidity on market-at-the-close
and limit-at-the-close transactions, DMMs will
continue to receive a rebate of $0.0005 per share.
Rebates do not apply to executions at the open.
7 15 U.S.C. 78f.
8 15 U.S.C. 78f(b)(4).
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46818
Federal Register / Vol. 74, No. 175 / Friday, September 11, 2009 / Notices
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
Written comments were neither
solicited nor received.
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) 9 of the Act and Rule 19b–
4(f)(2) 10 thereunder.
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:
cprice-sewell on DSKGBLS3C1PROD with NOTICES
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–NYSE–2009–90 on the
subject line.
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 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–NYSE–
2009–90 and should be submitted on or
before October 2, 2009.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–21884 Filed 9–10–09; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–60621; File No. SR–
NYSEArca–2009–77]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing of Proposed
Rule Change Amending NYSE Arca
Options Rule 5.3(j)
September 3, 2009.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 2 and Rule 19b–4 thereunder,3
Paper Comments
notice is hereby given that on August
• Send paper comments in triplicate
19, 2009, NYSE Arca, Inc. (‘‘NYSE
to Elizabeth M. Murphy, Secretary,
Arca’’ or the ‘‘Exchange’’) filed with the
Securities and Exchange Commission,
Securities and Exchange Commission
100 F Street, NE., Washington, DC
(the ‘‘Commission’’) the proposed rule
20549–1090.
change as described in Items I, II, and
All submissions should refer to File
III below, which Items have been
Number SR–NYSE–2009–90. This file
prepared by the self-regulatory
number should be included on the
organization. The Commission is
subject line if e-mail is used. To help the publishing this notice to solicit
Commission process and review your
comments on the proposed rule change
comments more efficiently, please use
from interested persons.
only one method. The Commission will
post all comments on the Commission’s I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
Internet Web site (https://www.sec.gov/
the Proposed Rule Change
rules/sro.shtml). Copies of the
submission, all subsequent
The Exchange proposes to amend the
amendments, all written statements
definition of Futures-Linked Securities
with respect to the proposed rule
for the trading of options on Indexchange that are filed with the
Linked Securities. The text of the
Commission, and all written
proposed rule change is attached as
communications relating to the
Exhibit 5 to the 19b–4 form. A copy of
proposed rule change between the
11 17 CFR 200.30–3(a)(12).
Commission and any person, other than
1 15
U.S.C. 78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
9 15
U.S.C. 78s(b)(3)(A).
10 17 CFR 240.19b–4(f)(2).
VerDate Nov<24>2008
15:23 Sep 10, 2009
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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 Rules [sic] 5.3(j)
designates the listing and trading of
options on equity index-linked
securities (‘‘Equity Index-Linked
Securities’’), commodity-linked
securities (‘‘Commodity-Linked
Securities’’), currency-linked securities
(‘‘Currency-Linked Securities’’), fixed
income index-linked securities (‘‘Fixed
Income Index-Linked Securities’’),
futures-linked securities (‘‘FuturesLinked Securities’’) and multifactor
index-linked securities (‘‘Multifactor
Index-Linked Securities’’), collectively
known as ‘‘Index-Linked Securities’’ (as
defined in NYSE Arca Equities Rule
5.2(j)(6)) that are principally traded on
a national securities exchange and an
‘‘NMS Stock’’ (as defined in Rule 600 of
Regulation NMS under the Securities
and Exchange Act of 1934). The
Exchange proposes to amend the
definition of Futures-Linked Securities
for the trading of options on IndexLinked Securities to include products
linked to CBOE Volatility Index (VIX)
Futures. This proposal is substantially
similar to the previously approved
NYSE Arca Equities Rule 5.2(j)(6)(v).4
Specifically, the Exchange proposes to
add the CBOE Volatility Index (VIX)
Futures to the definition of a Futures
Reference Asset in NYSE Arca Rule
5.3(j)(1)(E).
Index-Linked Securities are designed
for investors who desire to participate in
a specific market segment by providing
exposure to one or more identifiable
4 See Securities Exchange Act Release No. 34–
58968 (November 17, 2008), 73 FR 64647 (SR–
NYSEArca–2008–111).
2 15
Jkt 217001
this filing is available on the Exchange’s
Web site at www.nyse.com, at the
Exchange’s principal office and at the
Commission’s Public Reference Room.
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]]>Agencies
[Federal Register Volume 74, Number 175 (Friday, September 11, 2009)]
[Notices]
[Pages 46816-46818]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-21884]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-60614; File No. SR-NYSE-2009-90]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by New York Stock Exchange LLC To
Modify Rebates Payable to Designated Market Makers
September 2, 2009.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (the ``Act''),\2\ and Rule 19b-4 thereunder,\3\ notice is hereby
given that on August 31, 2009, New York Stock Exchange LLC (``NYSE'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule changes as described in Items I, II
and III below, which items have been prepared by the Exchange. The
Commission is publishing this notice to solicit comments on the
proposed rule changes from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 15 U.S.C. 78a et seq.
\3\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend its schedule of rebates payable to
Designated Market Makers (``DMMs''), with effect from September 1,
2009. The text of the proposed rule change is available on the
Exchange's Web site (https://www.nyse.com), at the Exchange's Office of
the Secretary, 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
[[Page 46817]]
on the proposed rule change. The text of these statements may be
examined at the places specified in Item IV below. The NYSE 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 Exchange proposes to revise its schedule of rebates paid to
DMMs for providing liquidity on the Exchange, with effect from
September 1, 2009.
Currently, DMMs receive:
A rebate of $0.0030 per share when adding liquidity in
round lots of active securities (i.e., securities with an average daily
consolidated volume (``ADV'') in the previous month equal to or greater
than 1,000,000 shares per month) (``More Active Securities'') if the
More Active Security has a stock price of $1.00 or more; and
A rebate of $0.0035 per share when adding liquidity in
round lots of securities that have an ADV of less than 1,000,000 shares
per month in the previous month (``Less Active Securities'') if the
Less Active Security has a stock price of $1.00 or more. Each DMM also
receives all of the market data quote revenue (the ``Quoting Share'')
received by the Exchange from the Consolidated Tape Association under
the Revenue Allocation Formula of Regulation NMS with respect to any
Less Active Security (regardless of whether the stock price exceeds
$1.00) in any month in which the DMM meets the quoting requirement of
Rule 104(a)(1)(A) for that specific security.
DMMs are entitled to the foregoing rebates when (i) posting
displayed and non-displayed orders on Display Book, including s-quote
and s-quote reserve orders; (ii) when providing liquidity on non-
displayed interest using the Capital Commitment Schedule; or, prior to
the implementation of the Capital Commitment Schedule, using the
following message activities: price improvement, size improvement (PRIN
FILL), matching away market quotes; \4\ (iii) when executing trades in
the crowd and at Liquidity Replenishment Points; and (iv) when
providing liquidity on market-at-the-close and limit-at-the-close
transactions. Rebates do not apply to executions at the open.
---------------------------------------------------------------------------
\4\ The Capital Commitment Schedule has been implemented since
this language was included in the Price List and the language is now
moot.
---------------------------------------------------------------------------
Commencing September 1, 2009, the schedule of rebates for DMMs
described above will be replaced with a new schedule of rebates. Under
the revised schedule of rebates, DMMs will receive:
A rebate of $0.0025 per share when adding liquidity in
round lots of More Active Securities if the More Active Security has a
stock price of $1.00 or more and the DMM quotes at the National Best
Bid or Offer (``NBBO'') in the applicable security at least 10% of the
time in the applicable month (``More Active Securities Quoting
Requirement'');
A rebate of $0.0030 per share when adding liquidity in
round lots of More Active Securities if the More Active Security has a
stock price of $1.00 or more and the DMM meets both (i) the More Active
Securities Quoting Requirement and (ii) the More Active Securities
Quoted Size Ratio Requirement. A DMM will meet the ``More Active
Securities Quoted Size Ratio Requirement'' when the DMM Quoted Size
Ratio for an applicable month is 15% of the NYSE Quoted Size. The
``NYSE Quoted Size'' will be calculated by multiplying the average
number of shares quoted on the NYSE at the NBBO by the percentage of
time the NYSE had a quote posted at the NBBO. The ``DMM Quoted Size
Ratio'' will be calculated by multiplying the average number of shares
of the applicable security quoted at the NBBO by the DMM by the
percentage of time during which the DMM quoted at the NBBO; \5\
---------------------------------------------------------------------------
\5\ The following is an example of how the DMM Quoted Size will
be calculated:
The numerator is calculated as follows: if the DMM
quotes at the NBBO for an average of 1000 shares for 60% of the time
over the course of the month in stock ABC, then the numerator would
be 600 shares = (1000 shares x 60% of the time over the course of
the month);
The denominator is calculated as follows: if the NYSE
was at the NBBO for an average of 10,000 shares for 70% of the time
over the course of the month, then the NYSE Quoted Size is 7,000
shares = (10,000 shares x 70% of the time over the course of the
month);
The DMM Quoted Size Ratio is 8.5% = 600/7000.
---------------------------------------------------------------------------
A rebate of $0.0015 per share when adding liquidity in
round lots of More Active Securities if the More Active Security has a
stock price of $1.00 or more and the DMM does not meet the More Active
Securities Quoting Requirement in the applicable security in the
applicable month;
A rebate of $0.0035 per share when adding liquidity in
round lots of Less Active Securities, if the Less Active Security has a
stock price of $1.00 or more and the DMM quotes at the NBBO in the
applicable security at least 15% of the time in the applicable month
(the ``Less Active Securities Quoting Requirement''). Each DMM will
also receive all of the Quoting Share the Exchange receives from the
Consolidated Tape Association under the Revenue Allocation Formula of
Regulation NMS with respect to any Less Active Security (regardless of
whether the stock price exceeds $1.00) in any month in which the DMM
meets the Less Active Securities Quoting Requirement for that specific
security); and
A rebate of $0.0015 per share when adding liquidity in
round lots of Less Active Securities if the Less Active Security has a
stock price of $1.00 or more and the DMM does not meet the Less Active
Securities Quoting Requirement in the applicable security in the
applicable month.
Rebates under the new rebate schedule will be applied when (i)
posting displayed and non-displayed orders on Display Book, including
s-quote and s-quote reserve orders; (ii) when providing liquidity on
non-displayed interest using the Capital Commitment Schedule, and (iii)
when executing trades in the crowd and at Liquidity Replenishment
Points.\6\
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\6\ When providing liquidity on market-at-the-close and limit-
at-the-close transactions, DMMs will continue to receive a rebate of
$0.0005 per share. Rebates do not apply to executions at the open.
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2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the provisions of Section 6 \7\ of the Act in general and Section
6(b)(4) of the Act \8\ 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. The Exchange
believes that the proposal does not constitute an inequitable
allocation of dues, fees and other charges as providing credits to DMMs
when they add liquidity to the market assists in the effective
operation of the NYSE's market model. The removal of the reference to
the types of messages for which the associated executions qualified for
rebates prior to the implementation of the Capital Commitment Schedule
is not a substantive change as the Capital Commitment Schedule has been
implemented.
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\7\ 15 U.S.C. 78f.
\8\ 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 purpose of the Act.
[[Page 46818]]
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
Written comments were neither solicited nor received.
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) \9\ of the Act and Rule 19b-4(f)(2) \10\
thereunder.
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\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 17 CFR 240.19b-4(f)(2).
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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 (https://www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-NYSE-2009-90 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-NYSE-2009-90. 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 (https://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 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-
NYSE-2009-90 and should be submitted on or before October 2, 2009.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
Florence E. Harmon,
Deputy Secretary.
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\11\ 17 CFR 200.30-3(a)(12).
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[FR Doc. E9-21884 Filed 9-10-09; 8:45 am]
BILLING CODE 8010-01-P
