Self-Regulatory Organizations; NYSE Amex, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change, as Modified by Amendment No. 1, Implementing a Fee for Complex Orders to Its Schedule of Fees and Charges for Exchange Services, 49426-49428 [E9-23306]
Download as PDF
49426
Federal Register / Vol. 74, No. 186 / Monday, September 28, 2009 / Notices
D. Proposed Supplementary Material
In addition, FINRA proposed to add a
‘‘Supplementary Material’’ section to
proposed FINRA Rule 2150 that would:
• Codify existing staff guidance
clarifying that a ‘‘guarantee’’ extended
to all holders of a particular security by
an issuer as part of that security
generally would not be subject to the
prohibition against guarantees and that
a permissible sharing arrangement
remains subject to other applicable
FINRA rules;
• Clarify that the rule does not
preclude a member from determining on
an after-the-fact basis, to reimburse a
customer for transaction losses,
provided however that the member shall
comply with all reporting requirements
that may be applicable to such
payment; 8
• Consistent with NYSE Rule 352(c),
clarify that the rule does not preclude a
member from correcting a bona fide
error; and
• Clarify that the required written
authorization(s) shall be preserved for a
period of at least six years after the date
the account is closed, which is
consistent with the retention period
under the SEA for similar records.
FINRA stated in its proposal that it
intends to announce the
implementation date of the proposed
rule change in a Regulatory Notice to be
published no later than 90 days
following Commission approval.
srobinson on DSKHWCL6B1PROD with NOTICES
III. Discussion
After careful review, the Commission
finds that the proposed rule change is
consistent with the requirements of the
Act and the rules and regulations
thereunder applicable to a national
securities association.9 In particular, the
Commission believes the proposal is
consistent with the requirements of
Section 15A(b)(6) of the Act,10 which
requires, among other things, that the
Association’s rules 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. Further, the Commission
believes it is appropriate to transfer
these NASD Rules into the FINRA
Consolidated Rulebook, with the
changes specified, and to delete the
noted NYSE Rules as proposed because
8 Associated persons would not similarly be
permitted to reimburse their customers for losses
under the rule given the concern that such
payments may conceal individual misconduct.
9 In approving this rule proposal, the Commission
has considered the proposed rule’s impact on
efficiency, competition, and capital formation. 15
U.S.C. 78c(f).
10 15 U.S.C. 78o–3(b)(6).
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the proposal will protect investors
against potential misconduct.
IV. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,11 that the
proposed rule change (SR–FINRA–
2009–014) is approved.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–23307 Filed 9–25–09; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–60698; File No. SR–
NYSEAmex–2009–61]
Self-Regulatory Organizations; NYSE
Amex, LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change, as Modified by
Amendment No. 1, Implementing a Fee
for Complex Orders to Its Schedule of
Fees and Charges for Exchange
Services
September 21, 2009.
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
September 9, 2009, NYSE Amex, LLC
(the ‘‘Exchange’’ or ‘‘NYSE Amex’’) 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 Amex.
NYSE Amex filed Amendment No. 1 to
the proposal on September 18, 2009.3
NYSE Amex filed the proposed rule
change, as amended, pursuant to
Section 19(b)(3)(A) of the Act 4 and Rule
19b–4(f)(2) thereunder,5 which renders
the proposed rule change, as amended,
effective upon filing with the
Commission. The Commission is
publishing this notice to solicit
comments on the proposed rule change,
as amended, from interested persons.
11 15
U.S.C. 78s(b)(2).
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 Amendment No. 1 revises the proposal to: (1)
Correct an example in the purpose section of the
proposal of the fee applicable when one firm
represents both sides of a transaction; and (2)
provide additional discussion of the statutory basis
for the proposal.
4 15 U.S.C. 78s(b)(3)(A).
5 17 CFR 19b–4(f)(2).
12 17
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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
section of its Schedule of Fees and
Charges for Exchange Services (the
‘‘Schedule’’). While changes to the
Schedule pursuant to this proposal will
be effective upon filing, the changes will
become operative on September 9, 2009.
The amended section of the Schedule is
included as Exhibit 5 hereto. A copy of
this filing is available on the Exchange’s
Web site at https://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
Exchange 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 these
statements may be examined at the
places specified in Item IV below. The
self-regulatory organization 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
Pursuant to a recent rule filing 6 the
Exchange will be introducing automated
complex order trading for all market
participants on NYSE Amex. In
conjunction with this new functionality,
the Exchange proposes to introduce two
new transaction fees specific to
Complex Order executions.
Complex Orders that are executed
against other similar Complex Orders
will be subject to a transaction fee of
$0.10 per contract. For example, if a
Complex Order, comprised of two legs,
executes against a similar two-legged
Complex Order, each market participant
will be charged $0.20 ($0.10 per
contract). To expand on this example, if
the same strategy is executed a total of
ten (10) times, each participant would
be charged $2.00. If a Complex Order
comprised of three legs executes against
a similar three-legged Complex Order
then each participant would be charged
$0.30, for the transaction. To expand on
this example, if the same three-legged
6 See Securities and Exchange Act Release No.
60554 (August 21, 2009) 74 FR 43737 (August 27,
2009) (Order granting accelerated approval of
NYSEAmex–2009–42).
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Federal Register / Vol. 74, No. 186 / Monday, September 28, 2009 / Notices
Complex Order is executed a total of ten
(10) times, each participant would be
changed $3.00. All electronically
executed Complex Orders, regardless of
whether they are entered by Market
Makers, Brokers Dealers, or OTP Firms
representing Public Customers, will be
billed this same rate when their order is
executed against another Complex
Order.
The Exchange proposes a separate fee
for electronically executed Complex
Orders when the same member firm
represents both sides of the transaction.
Complex Orders, entered by a firm that
trade against a similar Complex Order
represented by the same firm, will be
subject to a transaction fee of $0.05 per
contract side. For example, if a Complex
Order comprised of two legs is entered
by Firm A, and executes against a
similar two-legged Complex Order also
for Firm A, the firm will be charged a
total of $0.20 (four contracts at $.05 per
contract), for each time the complex
order strategy is executed. To expand on
this example, if the same strategy is
executed a total of ten (10) times, the
firm would be subject to a transaction
fee of $1.00 per Complex Order, and
since the same firm is a party to both
sides of the transaction, they would be
charged a total of $2.00. If a Complex
Order entered by Firm A, which is
comprised of three legs, executes against
a similar three-legged Complex Order
entered by Firm A, then the firm would
be charged $0.30, for each time the three
legged Complex Order is executed. To
expand on this example, if the same
three-legged Complex Order is executed
a total of ten (10) times, the firm would
be subject to a transaction fee of $1.50
per Complex Order, and since the firm
represents both sides of the transaction,
they would be charged a total of $3.00.
There may be occasions where a
Complex Order will not execute against
a similar contra-side Complex Order,
but instead will execute against the
individual leg markets represented by
quotes and/or orders in the
Consolidated Book. This scenario will
occur when the best price for the
Complex Order strategy is actually
represented by a combination of
individual quotes and/or orders, resting
in the Consolidated Book. In situations
where Complex Orders are executed
utilizing two or more individual quotes
or orders from the Consolidated Book,
standard transaction fees, as shown on
the Schedule, will apply to all
participants on the trade. Additionally,
standard Marketing Charges apply to all
electronic complex order executions.
The Exchange believes that the
proposed changes to the Schedule are
equitable in that they apply uniformly
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16:33 Sep 25, 2009
Jkt 217001
to all similarly situated Users.
Additionally, the proposed fees are the
same as those currently charged by
NYSE Arca.7
2. Basis
The Exchange believes that the
proposal is consistent with Section 6(b)
of the Act, in general, and Section
6(b)(4), in particular, in that it provides
for the equitable allocation of dues, fees
and other charges among its members.
The Exchange believes that the
proposed rates are reasonable. The
proposed rate structure is part of the
Exchange’s efforts to attract and
enhance participation on the Exchange,
with respect to the implementation of
electronic complex order trading. The
Exchange also believes that the
proposed changes to the Fee Schedule
are equitable in that they apply
uniformly to all market participants on
NYSE Amex.
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, as
amended, has become effective pursuant
to Section 19(b)(3)(A) of the Act 8 and
Rule 19b–4(f)(2) 9 thereunder because it
establishes a due, fee, or other charge
imposed by NYSE Amex.
At any time within 60 days of the
filing of such proposed rule change, as
amended, 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.10
7 See Securities and Exchange Act Release No.
58473 (September 8, 2008) 73 FR 53312 (September
15, 2008) (Notice of filing and immediate
effectiveness for SR–NYSEArca–2008–97).
8 5 U.S.C. 78s(b)(3)(A).
9 17 CFR 19b–4(f)(2).
10 The Commission considers the 60-day period
within which the Commission may summarily
abrogate the proposal pursuant to Section
19(b)(3)(C) of the Act, 15 U.S.C. 78s(b)(3)(C), to
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49427
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change, as amended, 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–NYSEAmex–2009–61 on
the subject line.
Paper Comments
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
Station Place, 100 F Street, NE.,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–NYSEAmex–2009–61. 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, 100 F Street, NE., Washington,
DC 20549, 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 NYSEAmex. 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 publicly available. All
submissions should refer to File
Number SR–NYSEAmex–2009–61 and
should be submitted on or before
October 19, 2009.
commence on September 18, 2009, the date NYSE
Amex filed Amendment No. 1 to the proposal.
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Federal Register / Vol. 74, No. 186 / Monday, September 28, 2009 / Notices
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–23306 Filed 9–25–09; 8:45 am]
permitted to use personal portable or
wireless communications devices.5 The
text of the proposed rule change is
available at the Exchange, the
Commission’s Public Reference Room,
and https://www.nyse.com.
BILLING CODE 8010–01–P
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–60692; File No. SR–
NYSEAmex–2009–57]
Self-Regulatory Organizations; Notice
of Filing of Proposed Rule Change by
NYSE Amex LLC, as Modified by
Amendment No. 1, Amending Rule
36—NYSE Amex Equities To Conform
With Proposed Amendments to
Corresponding NYSE Rule 36 To
Permit the Use of Personal Portable or
Wireless Communication Devices Off
the Exchange Trading Floor and
Outside Other Restricted Access Areas
September 18, 2009.
srobinson on DSKHWCL6B1PROD with NOTICES
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
27, 2009, NYSE Amex LLC
(‘‘NYSEAmex’’ or the ‘‘Exchange’’) filed
with the Securities and Exchange
Commission (the ‘‘Commission’’) the
proposed rule change, as described in
Items I, II, and III below, which Items
have been prepared by the Exchange.
On September 17, 2009, the Exchange
filed Amendment No. 1 to the proposed
rule change.4 The Commission is
publishing this notice to solicit
comments on the proposed rule change,
as modified by Amendment No. 1, from
interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
Rule 36—NYSE Amex Equities
(Communications Between Exchange
and Members’ Offices) to conform with
proposed amendments to corresponding
NYSE Rule 36 submitted in a
companion filing by the Exchange’s
corporate affiliate, the New York Stock
Exchange LLC (‘‘NYSE’’). This
Amendment No. 1 supersedes the
original filing in its entirety.
Amendment No. 1 serves to clarify in
the rule text the specific areas where
employees of member organizations are
11 17
CFR 200.30–3(a)(12).
U.S.C.78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
4 Amendment No. 1 supersedes and replaces the
original filing in its entirety.
1 15
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16:33 Sep 25, 2009
Jkt 217001
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
This Amendment No. 1 to SR–
NYSEAmex–2009–57 supersedes and
replaces the original filing in its
entirety.
The purpose of the proposed rule
changes is to amend Rule 36—NYSE
Amex Equities (Communications
Between Exchange and Members’
Offices) to conform with proposed
amendments to corresponding NYSE
Rule 36 submitted in a companion filing
by the Exchange’s corporate affiliate, the
NYSE.6
Background
As described more fully in a related
rule filing 7, NYSE Euronext acquired
The Amex Membership Corporation
(‘‘AMC’’) pursuant to an Agreement and
Plan of Merger, dated January 17, 2008
(the ‘‘Merger’’). In connection with the
Merger, the Exchange’s predecessor, the
American Stock Exchange LLC, a
subsidiary of AMC, became a subsidiary
of NYSE Euronext called NYSE
5 The Commission notes that the rule text makes
clear that personal portable or wireless
communication devices can only be used outside of
the Trading Floor and all other restricted access
areas.
6 See SR–NYSE–2009–84. The Commission notes
that the rule text makes clear that personal portable
or wireless communication devices can only be
used outside of the Trading Floor and all other
restricted access areas. See supra note 5.
7 See Securities Exchange Act Release No. 58673
(September 29, 2008), 73 FR 57707 (October 3,
2008) (SR–NYSE–2008–60 and SR–Amex–2008–
62).
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Frm 00069
Fmt 4703
Sfmt 4703
Alternext US LLC 8, and continues to
operate as a national securities exchange
registered under Section 6 of the Act.9
The effective date of the Merger was
October 1, 2008.
In connection with the Merger, on
December 1, 2008, the Exchange
relocated all equities trading conducted
on the Exchange legacy trading systems
and facilities located at 86 Trinity Place,
New York, New York, to trading systems
and facilities located at 11 Wall Street,
New York, New York (the ‘‘Equities
Relocation’’). The Exchange’s equity
trading systems and facilities at 11 Wall
Street (the ‘‘NYSE Amex Trading
Systems’’) are operated by the NYSE on
behalf of the Exchange.10
As part of the Equities Relocation,
NYSE Amex adopted NYSE Rules 1–
1004, subject to such changes as
necessary to apply the Rules to the
Exchange, as the NYSE Amex Equities
Rules to govern trading on the NYSE
Amex Trading Systems.11 The NYSE
Amex Equities Rules, which became
operative on December 1, 2008, are
substantially identical to the current
NYSE Rules 1–1004 and the Exchange
continues to update the NYSE Amex
Equities Rules as necessary to conform
with rule changes to corresponding
NYSE Rules filed by the NYSE.
Proposed Conforming Amendments to
NYSE Amex Equities Rules
As noted above, the Exchange
proposes to amend Rule 36—NYSE
Amex Equities to conform with
proposed amendments to corresponding
NYSE Rule 36 submitted in a
companion filing by the NYSE. As
discussed in more detail below, the
NYSE is filing the proposed rule
changes to permit the use of personal
portable or wireless communication
devices off the NYSE Trading Floor. The
Exchange is proposing to adopt the
NYSE’s proposed rule changes, subject
to such technical changes as are
necessary to apply the changes to the
Exchange.
8 NYSE Alternext US LLC was subsequently
renamed NYSE Amex LLC. See Securities Exchange
Act Release No. 59575 (March 13, 2009), 74 FR
11803 (March 19, 2009) (SR–NYSEALTR–2009–24).
9 15 U.S.C. 78f.
10 See Securities Exchange Act Release No. 58705
(October 1, 2008), 73 FR 58995 (October 8, 2008)
(SR–Amex–2008–63).
11 See Securities Exchange Act Release Nos.
58705 (October 1, 2008), 73 FR 58995 (October 8,
2008) (SR–Amex–2008–63); 58833 (October 22,
2008), 73 FR 64642 (October 30, 2008) (SR–NYSE–
2008–106); 58839 (October 23, 2008), 73 FR 64645
(October 30, 2008) (SR–NYSEALTR–2008–03);
59022 (November 26, 2008), 73 FR 73683
(December 3, 2008) (SR–NYSEALTR–2008–10); and
59027 (November 28, 2008), 73 FR 73681
(December 3, 2008) (SR–NYSEALTR–2008–11).
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Agencies
[Federal Register Volume 74, Number 186 (Monday, September 28, 2009)]
[Notices]
[Pages 49426-49428]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-23306]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-60698; File No. SR-NYSEAmex-2009-61]
Self-Regulatory Organizations; NYSE Amex, LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change, as Modified by
Amendment No. 1, Implementing a Fee for Complex Orders to Its Schedule
of Fees and Charges for Exchange Services
September 21, 2009.
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 September 9, 2009, NYSE Amex, LLC (the ``Exchange'' or ``NYSE
Amex'') 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 Amex. NYSE Amex
filed Amendment No. 1 to the proposal on September 18, 2009.\3\ NYSE
Amex filed the proposed rule change, as amended, pursuant to Section
19(b)(3)(A) of the Act \4\ and Rule 19b-4(f)(2) thereunder,\5\ which
renders the proposed rule change, as amended, effective upon filing
with the Commission. The Commission is publishing this notice to
solicit comments on the proposed rule change, as amended, from
interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ Amendment No. 1 revises the proposal to: (1) Correct an
example in the purpose section of the proposal of the fee applicable
when one firm represents both sides of a transaction; and (2)
provide additional discussion of the statutory basis for the
proposal.
\4\ 15 U.S.C. 78s(b)(3)(A).
\5\ 17 CFR 19b-4(f)(2).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend the section of its Schedule of Fees
and Charges for Exchange Services (the ``Schedule''). While changes to
the Schedule pursuant to this proposal will be effective upon filing,
the changes will become operative on September 9, 2009. The amended
section of the Schedule is included as Exhibit 5 hereto. A copy of this
filing is available on the Exchange's Web site at https://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 Exchange 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 these statements may be examined at the places specified in
Item IV below. The self-regulatory organization 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
Pursuant to a recent rule filing \6\ the Exchange will be
introducing automated complex order trading for all market participants
on NYSE Amex. In conjunction with this new functionality, the Exchange
proposes to introduce two new transaction fees specific to Complex
Order executions.
---------------------------------------------------------------------------
\6\ See Securities and Exchange Act Release No. 60554 (August
21, 2009) 74 FR 43737 (August 27, 2009) (Order granting accelerated
approval of NYSEAmex-2009-42).
---------------------------------------------------------------------------
Complex Orders that are executed against other similar Complex
Orders will be subject to a transaction fee of $0.10 per contract. For
example, if a Complex Order, comprised of two legs, executes against a
similar two-legged Complex Order, each market participant will be
charged $0.20 ($0.10 per contract). To expand on this example, if the
same strategy is executed a total of ten (10) times, each participant
would be charged $2.00. If a Complex Order comprised of three legs
executes against a similar three-legged Complex Order then each
participant would be charged $0.30, for the transaction. To expand on
this example, if the same three-legged
[[Page 49427]]
Complex Order is executed a total of ten (10) times, each participant
would be changed $3.00. All electronically executed Complex Orders,
regardless of whether they are entered by Market Makers, Brokers
Dealers, or OTP Firms representing Public Customers, will be billed
this same rate when their order is executed against another Complex
Order.
The Exchange proposes a separate fee for electronically executed
Complex Orders when the same member firm represents both sides of the
transaction. Complex Orders, entered by a firm that trade against a
similar Complex Order represented by the same firm, will be subject to
a transaction fee of $0.05 per contract side. For example, if a Complex
Order comprised of two legs is entered by Firm A, and executes against
a similar two-legged Complex Order also for Firm A, the firm will be
charged a total of $0.20 (four contracts at $.05 per contract), for
each time the complex order strategy is executed. To expand on this
example, if the same strategy is executed a total of ten (10) times,
the firm would be subject to a transaction fee of $1.00 per Complex
Order, and since the same firm is a party to both sides of the
transaction, they would be charged a total of $2.00. If a Complex Order
entered by Firm A, which is comprised of three legs, executes against a
similar three-legged Complex Order entered by Firm A, then the firm
would be charged $0.30, for each time the three legged Complex Order is
executed. To expand on this example, if the same three-legged Complex
Order is executed a total of ten (10) times, the firm would be subject
to a transaction fee of $1.50 per Complex Order, and since the firm
represents both sides of the transaction, they would be charged a total
of $3.00.
There may be occasions where a Complex Order will not execute
against a similar contra-side Complex Order, but instead will execute
against the individual leg markets represented by quotes and/or orders
in the Consolidated Book. This scenario will occur when the best price
for the Complex Order strategy is actually represented by a combination
of individual quotes and/or orders, resting in the Consolidated Book.
In situations where Complex Orders are executed utilizing two or more
individual quotes or orders from the Consolidated Book, standard
transaction fees, as shown on the Schedule, will apply to all
participants on the trade. Additionally, standard Marketing Charges
apply to all electronic complex order executions.
The Exchange believes that the proposed changes to the Schedule are
equitable in that they apply uniformly to all similarly situated Users.
Additionally, the proposed fees are the same as those currently charged
by NYSE Arca.\7\
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\7\ See Securities and Exchange Act Release No. 58473 (September
8, 2008) 73 FR 53312 (September 15, 2008) (Notice of filing and
immediate effectiveness for SR-NYSEArca-2008-97).
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2. Basis
The Exchange believes that the proposal is consistent with Section
6(b) of the Act, in general, and Section 6(b)(4), in particular, in
that it provides for the equitable allocation of dues, fees and other
charges among its members. The Exchange believes that the proposed
rates are reasonable. The proposed rate structure is part of the
Exchange's efforts to attract and enhance participation on the
Exchange, with respect to the implementation of electronic complex
order trading. The Exchange also believes that the proposed changes to
the Fee Schedule are equitable in that they apply uniformly to all
market participants on NYSE Amex.
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, as amended, has become effective
pursuant to Section 19(b)(3)(A) of the Act \8\ and Rule 19b-4(f)(2) \9\
thereunder because it establishes a due, fee, or other charge imposed
by NYSE Amex.
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\8\ 5 U.S.C. 78s(b)(3)(A).
\9\ 17 CFR 19b-4(f)(2).
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At any time within 60 days of the filing of such proposed rule
change, as amended, 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.\10\
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\10\ The Commission considers the 60-day period within which the
Commission may summarily abrogate the proposal pursuant to Section
19(b)(3)(C) of the Act, 15 U.S.C. 78s(b)(3)(C), to commence on
September 18, 2009, the date NYSE Amex filed Amendment No. 1 to the
proposal.
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change, as amended, 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-NYSEAmex-2009-61 on the subject line.
Paper Comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, Station Place, 100 F
Street, NE., Washington, DC 20549-1090.
All submissions should refer to File Number SR-NYSEAmex-2009-61. 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, 100 F Street,
NE., Washington, DC 20549, 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 NYSEAmex. 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 publicly available. All
submissions should refer to File Number SR-NYSEAmex-2009-61 and should
be submitted on or before October 19, 2009.
[[Page 49428]]
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
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\11\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-23306 Filed 9-25-09; 8:45 am]
BILLING CODE 8010-01-P