Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Extending the Pilot Program That Offers Liquidity Takers a Reduced Transaction Fee Structure for Certain Bond Trades Executed on the NYSE Bonds System and Retiring the Liquidity Provider Credit Pilot Program, 68651-68653 [E9-30616]
Download as PDF
<![CDATA[
Federal Register / Vol. 74, No. 247 / Monday, December 28, 2009 / Notices
acts and practices, to promote just and
equitable principles of trade, and, in
general, to protect investors and the
public interest, and Section 15A(b)(5) of
the Act,7 which requires, among other
things, that FINRA rules provide for the
equitable allocation of reasonable dues,
fees and other charges among members
and issuers and other persons using any
facility or system that FINRA operates
or controls. FINRA believes that the
proposed rule will codify FINRA’s
authority and discretion to review and
process documents related to requests
for Company-Related Actions in the
OTC securities and, along with the
proposed new fees for such services, act
to ensure there is more complete,
accurate and timely information
concerning Company-Related Actions.
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.
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.
erowe on DSK5CLS3C1PROD with NOTICES
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
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 Exchange
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
7 15
U.S.C. 78o–3(b)(5).
VerDate Nov<24>2008
11:00 Dec 24, 2009
Jkt 220001
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–FINRA–2009–089 on the
subject line.
Paper Comments
68651
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–61201; File No. SR–NYSE–
2009–127]
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change Extending the
Pilot Program That Offers Liquidity
Takers a Reduced Transaction Fee
All submissions should refer to File
Structure for Certain Bond Trades
Number SR–FINRA–2009–089. This file Executed on the NYSE Bonds System
number should be included on the
and Retiring the Liquidity Provider
subject line if e-mail is used. To help the Credit Pilot Program
Commission process and review your
December 18, 2009.
comments more efficiently, please use
only one method. The Commission will
Pursuant to Section 19(b)(1) of the
post all comments on the Commission’s Securities Exchange Act of 1934
Internet Web site (https://www.sec.gov/
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
rules/sro.shtml). Copies of the
notice is hereby given that on December
submission,8 all subsequent
17, 2009, the New York Stock Exchange
amendments, all written statements
LLC (‘‘NYSE’’ or the ‘‘Exchange’’) filed
with respect to the proposed rule
with the Securities and Exchange
change that are filed with the
Commission (‘‘Commission’’) the
proposed rule change as described in
Commission, and all written
Items I, II, and III below, which Items
communications relating to the
have been prepared by the Exchange.
proposed rule change between the
Commission and any person, other than The Exchange has designated this
proposal as one establishing or changing
those that may be withheld from the
a due, fee, or other charge imposed by
public in accordance with the
the Exchange under Section
provisions of 5 U.S.C. 552, will be
19(b)(3)(A)(ii) of the Act 3 and Rule 19b–
available for inspection and copying in
4(f)(2) thereunder,4 which renders the
the Commission’s Public Reference
proposal effective upon filing with the
Room, 100 F Street, NE., Washington,
Commission. The Commission is
DC 20549, on official business days
between the hours of 10 a.m. and 3 p.m. publishing this notice to solicit
Copies of the filing also will be available comments on the proposed rule change
from interested persons.
for inspection and copying at the
principal office of FINRA. All comments I. Self-Regulatory Organization’s
received will be posted without change; Statement of the Terms of Substance of
the Commission does not edit personal
the Proposed Rule Change
identifying information from
The Exchange proposes to extend the
submissions. You should submit only
pilot program that offers liquidity takers
information that you wish to make
a reduced transaction fee structure for
available publicly. All submissions
should refer to File Number SR–FINRA– certain bond trades executed on the
NYSE BondsSM system (‘‘NYSE Bonds’’)
2009–089 and should be submitted on
to June 30, 2010, and retire the pilot
or before January 19, 2010.
program that issues liquidity providers
For the Commission, by the Division of
a $20 credit for certain bond trades
Trading and Markets, pursuant to delegated
executed on NYSE Bonds with an
authority.9
execution size of less than 20 bonds that
Florence E. Harmon,
is due to expire on December 31, 2009.
Deputy Secretary.
The text of the proposed rule change is
available on the NYSE’s Web site
[FR Doc. E9–30597 Filed 12–24–09; 8:45 am]
(https://www.nyx.com), on the
BILLING CODE 8011–01–P
Commission’s Web site (https://
www.sec.gov), at the Exchange’s
principal office, and at the
Commission’s Public Reference Room.
8 The text of the proposed rule change is available
on the Commission’s Web site at https://
www.sec.gov/.
9 17 CFR 200.30–3(a)(12).
PO 00000
Frm 00086
Fmt 4703
Sfmt 4703
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(ii).
4 17 CFR 240.19b–4(f)(2).
2 17
E:\FR\FM\28DEN1.SGM
28DEN1
68652
Federal Register / Vol. 74, No. 247 / Monday, December 28, 2009 / Notices
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 these 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 aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
Liquidity Taker Pilot Program
erowe on DSK5CLS3C1PROD with NOTICES
1. Purpose
The New York Stock Exchange LLC
(the ‘‘Exchange’’ or the ‘‘NYSE’’)
proposes to: (1) Extend the pilot
program that offers liquidity takers a
reduced transaction fee structure for
certain bond trades executed on the
NYSE BondsSM system (‘‘NYSE Bonds’’)
to June 30, 2010, and (2) retire the pilot
program that issues liquidity providers
a $20 credit for certain bond trades
executed on NYSE Bonds with an
execution size of less than 20 bonds that
is due to expire on December 31, 2009.
Liquidity Taker Pilot Program
The Exchange’s pilot program reduces
transaction fees charged to liquidity
takers for transactions executed on
NYSE Bonds with a staggered
transaction fee schedule based on the
number of bonds purchased or sold in
excess of ten (10) bonds. Currently, the
transaction fee for orders that take
liquidity from the market is $.50 per
bond. This fee remains unchanged for
orders up to ten (10) bonds. The
extended fee filing pilot program
provides for the following transaction
fee schedule: (1) When the liquidity
taker purchases or sells from one to ten
(10) bonds, the Exchange will charge an
execution fee of $0.50 per bond; (2)
when the liquidity taker purchases or
sells from eleven (11) to twenty-five (25)
bonds, the Exchange will charge an
execution fee of $0.20 per bond, and (3)
when the liquidity taker purchases or
sells twenty-six (26) bonds or more, the
Exchange will charge an execution fee
of $0.10 per bond.
For example, if a liquidity taker
purchases or sells five (5) bonds, the
Exchange will charge $.50 per bond, or
a total of $2.50 for execution fees. If a
liquidity taker purchases or sells twenty
(20) bonds, the Exchange will charge
VerDate Nov<24>2008
11:00 Dec 24, 2009
Jkt 220001
$.20 per bond or a total of $4.00 for
execution fees. If a liquidity taker
purchases or sells thirty (30) bonds, the
Exchange will charge $.10 per bond or
a total of $3.00 for execution fees.
The Exchange will continue to impose
a $100 execution fee cap per
transaction.
The Exchange seeks to file with the
Commission, a proposal to make this
liquidity taker program permanent.
Accordingly, the Exchange proposes to
extend the pilot program for an
additional six (6) months in order to
give the Exchange the necessary time to
complete the 19b–4 process regarding
the program permanency filing.
In December 2007, the Exchange
initiated a four-month pilot program
that issued liquidity providers a $20
credit for certain bond trades executed
on the NYSE Bonds with an execution
size of less than 20 bonds.5 This pilot
program was extended twice with the
most recent expiration date of December
31, 2009.6
The purpose of establishing a $20
credit program for liquidity providers
was to incentivize them to display the
best price available on NYSE Bonds.
However, during the operation of this
pilot, no significant liquidity was
generated. This is not the case with the
pilot program for liquidity takers.
Accordingly, the Exchange proposes
that the pilot program for liquidity
providers be retired on its expiration
date of December 31, 2009, and be
removed from the NYSE Price List.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the provisions of Section 6 of the Act 7
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.
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.
5 See Securities Exchange Act Release No. 56894
(December 7, 2007), 72 FR 70362 (December 11,
2007) (SR–NYSE–2007–107).
6 See Securities Exchange Act Release Nos. 57617
(April 4, 2008), 73 FR 19542 (April 10, 2008) (SR–
NYSE–2008–25) and 59177 (December 30, 2008), 74
FR 747 (January 7, 2009) (SR–NYSE–2008–136).
7 15 U.S.C. 78f.
8 15 U.S.C. 78f(b)(4).
PO 00000
Frm 00087
Fmt 4703
Sfmt 4703
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
Because the foregoing rule change
establishes or changes a due, fee, or
other charge imposed by the Exchange,
it has become effective pursuant to
Section 19(b)(3)(A) of the Act 9 and
subparagraph (f)(2) of Rule 19b–4
thereunder.10 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 rulecomments@sec.gov. Please include File
Number SR–NYSE–20098–127 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–2009–127. 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
9 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(2).
10 17
E:\FR\FM\28DEN1.SGM
28DEN1
Federal Register / Vol. 74, No. 247 / Monday, December 28, 2009 / Notices
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 NYSE. 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–2009–127 and
should be submitted on or before
January 19, 2010.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
NASDAQ is filing a proposal for the
NASDAQ Options Market (‘‘NOM’’ or
‘‘Exchange’’) [sic] amend its Chapter IV,
Section 6 (Series of Options Contracts
Open for Trading) to apply uniform
objective standards to the range of
options series exercise (or strike) prices
available for trading on the Exchange.
The text of the proposed rule change
is available from Nasdaq’s Web site at
https://nasdaq.cchwallstreet.com, at
Nasdaq’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
BILLING CODE 8011–01–P
In its filing with the Commission,
Nasdaq 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. Nasdaq has prepared
summaries, set forth in Sections A, B,
and C below, of the most significant
aspects of such statements.
SECURITIES AND EXCHANGE
COMMISSION
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–30616 Filed 12–24–09; 8:45 am]
1. Purpose
[Release No. 34–61203; File No. SR–
NASDAQ–2009–108]
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Codify
Certain Provisions of the Options
Listing Procedures Plan Into the
Exchange’s Rules
erowe on DSK5CLS3C1PROD with NOTICES
December 18, 2009.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 2 thereunder,
notice is hereby given that on December
7, 2009, The NASDAQ Stock Market
LLC (‘‘Nasdaq’’) filed with the Securities
and Exchange Commission (‘‘SEC’’ or
‘‘Commission’’) the proposed rule
change as described in Items I, II, and
III below, which Items have been
prepared by Nasdaq. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
11 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
VerDate Nov<24>2008
11:00 Dec 24, 2009
Jkt 220001
The purpose of the proposal is to
implement in NOM rules, specifically
Chapter IV, Section 6, changes that were
recently made to the Plan for the
Purpose of Developing and
Implementing Procedures Designated to
Facilitate the Listing and Trading of
Standardized Options Submitted
Pursuant to Section 11A(a)(3)(B) of the
Securities Exchange Act of 1934, also
known as the Options Listing
Procedures Plan (‘‘OLPP’’), in
Amendment No. 3 thereto.3 The
3 See Securities Exchange Act Release No. 60531
(August 19, 2009), 74 FR 43173 (August 26, 2009)
(order approving Amendment No. 3 to the OLPP,
which would apply uniform objective standards to
the range of options series exercise or strike prices
available for trading on exchanges that are sponsors
of OLPP). The sponsors of OLPP include NASDAQ,
Chicago Board Options Exchange, Incorporated;
International Stock Exchange LLC; NASDAQ OMX
BX, Inc.; NASDAQ OMX Phlx, Inc.; NYSE Amex,
LLC; and NYSE Arca, Inc. (together known as the
‘‘Plan Sponsor Exchanges’’). The OLPP is a national
market system plan that, among other things, sets
forth procedures governing the listing of new
options series and replaces and supersedes the
Joint-Exchange Options Plan (‘‘JEOP’’). See
Securities Exchange Act Release No. 44521 (July 6,
2009), 66 FR 36809 (July 13, 2001) (order approving
OLPP). See also Securities Exchange Act Release
PO 00000
Frm 00088
Fmt 4703
Sfmt 4703
68653
proposed rule change incorporates
uniform objective standards to the range
of options series exercise (or strike)
prices available for trading on the
Exchange, as a quote mitigation strategy
intended to reduce the overall number
of option series available for trading,
which will in turn lessen the rate of
increase in quote traffic (‘‘range
limitations’’ or ‘‘range limitation
strategy’’).4
Chapter IV, Section 6 currently
indicates what series of option contracts
may be open for trading after a
particular class of options has been
approved for trading on the Exchange.
This proposal adds Supplementary
Material .09 to Section 6 that applies
certain ‘‘range limitations’’ to the
addition of new series for options
classes overlying equity securities,
Exchange Traded Funds (‘‘ETFs’’), or
Trust Issued Receipts (‘‘TIRs’’).
As proposed in Supplementary
Material .09 to Section 6, if the price of
the underlying security is less than or
equal to $20, the Exchange would not
list new option series with an exercise
price more than 100 percent above or
below the price of the underlying
security.5 If the price of the underlying
security is greater than $20, the
Exchange would not list new option
series with an exercise price more than
50 percent above or below the price of
the underlying security. The proposal
provides for an objective basis upon
which the underlying prices for the
price range limitations described above
shall be determined, specifically in
regard to intra-day add-on series and
next-day series additions, new
expiration months and for option series
to be added as a result of pre-market
trading.
The proposal also allows the
Exchange to designate up to five
underlying securities to which, instead
of the aforementioned 50 percent
restriction, a 100 percent restriction
would apply. These designations would
be made on an annual basis and cannot
be removed during the calendar year
unless the option class is delisted by the
Exchange, in which case the Exchange
may designate another class to replace
the delisted class. If a designated class
No. 29698 (September 17, 1991), 56 FR 48954
(September 25, 1991) (order approving JEOP).
4 The Exchange expects that other Plan Sponsor
Exchanges will file similar rule change proposals
implementing range limitations in their rules to
mitigate quotes. See, for example, Securities
Exchange Act Release No. 60995 (November 13,
2009), 74 FR 60008 (November 19, 2009) (SR–
CBOE–2009–084) (notice of filing and immediate
effectiveness).
5 This restriction would not prohibit the listing of
at least three options series per expiration month
in an option class.
E:\FR\FM\28DEN1.SGM
28DEN1
]]>Agencies
[Federal Register Volume 74, Number 247 (Monday, December 28, 2009)]
[Notices]
[Pages 68651-68653]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-30616]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-61201; File No. SR-NYSE-2009-127]
Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Extending the Pilot Program That Offers Liquidity Takers a Reduced
Transaction Fee Structure for Certain Bond Trades Executed on the NYSE
Bonds System and Retiring the Liquidity Provider Credit Pilot Program
December 18, 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 December 17, 2009, the New York Stock Exchange LLC (``NYSE'' or the
``Exchange'') 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 Exchange. The
Exchange has designated this proposal as one establishing or changing a
due, fee, or other charge imposed by the Exchange under Section
19(b)(3)(A)(ii) of the Act \3\ and Rule 19b-4(f)(2) thereunder,\4\
which renders the proposal effective upon filing with the Commission.
The Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A)(ii).
\4\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to extend the pilot program that offers
liquidity takers a reduced transaction fee structure for certain bond
trades executed on the NYSE BondsSM system (``NYSE Bonds'')
to June 30, 2010, and retire the pilot program that issues liquidity
providers a $20 credit for certain bond trades executed on NYSE Bonds
with an execution size of less than 20 bonds that is due to expire on
December 31, 2009. The text of the proposed rule change is available on
the NYSE's Web site (https://www.nyx.com), on the Commission's Web site
(https://www.sec.gov), at the Exchange's principal office, and at the
Commission's Public Reference Room.
[[Page 68652]]
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 these 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 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 New York Stock Exchange LLC (the ``Exchange'' or the ``NYSE'')
proposes to: (1) Extend the pilot program that offers liquidity takers
a reduced transaction fee structure for certain bond trades executed on
the NYSE BondsSM system (``NYSE Bonds'') to June 30, 2010,
and (2) retire the pilot program that issues liquidity providers a $20
credit for certain bond trades executed on NYSE Bonds with an execution
size of less than 20 bonds that is due to expire on December 31, 2009.
Liquidity Taker Pilot Program
The Exchange's pilot program reduces transaction fees charged to
liquidity takers for transactions executed on NYSE Bonds with a
staggered transaction fee schedule based on the number of bonds
purchased or sold in excess of ten (10) bonds. Currently, the
transaction fee for orders that take liquidity from the market is $.50
per bond. This fee remains unchanged for orders up to ten (10) bonds.
The extended fee filing pilot program provides for the following
transaction fee schedule: (1) When the liquidity taker purchases or
sells from one to ten (10) bonds, the Exchange will charge an execution
fee of $0.50 per bond; (2) when the liquidity taker purchases or sells
from eleven (11) to twenty-five (25) bonds, the Exchange will charge an
execution fee of $0.20 per bond, and (3) when the liquidity taker
purchases or sells twenty-six (26) bonds or more, the Exchange will
charge an execution fee of $0.10 per bond.
For example, if a liquidity taker purchases or sells five (5)
bonds, the Exchange will charge $.50 per bond, or a total of $2.50 for
execution fees. If a liquidity taker purchases or sells twenty (20)
bonds, the Exchange will charge $.20 per bond or a total of $4.00 for
execution fees. If a liquidity taker purchases or sells thirty (30)
bonds, the Exchange will charge $.10 per bond or a total of $3.00 for
execution fees.
The Exchange will continue to impose a $100 execution fee cap per
transaction.
The Exchange seeks to file with the Commission, a proposal to make
this liquidity taker program permanent. Accordingly, the Exchange
proposes to extend the pilot program for an additional six (6) months
in order to give the Exchange the necessary time to complete the 19b-4
process regarding the program permanency filing.
Liquidity Taker Pilot Program
In December 2007, the Exchange initiated a four-month pilot program
that issued liquidity providers a $20 credit for certain bond trades
executed on the NYSE Bonds with an execution size of less than 20
bonds.\5\ This pilot program was extended twice with the most recent
expiration date of December 31, 2009.\6\
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 56894 (December 7,
2007), 72 FR 70362 (December 11, 2007) (SR-NYSE-2007-107).
\6\ See Securities Exchange Act Release Nos. 57617 (April 4,
2008), 73 FR 19542 (April 10, 2008) (SR-NYSE-2008-25) and 59177
(December 30, 2008), 74 FR 747 (January 7, 2009) (SR-NYSE-2008-136).
---------------------------------------------------------------------------
The purpose of establishing a $20 credit program for liquidity
providers was to incentivize them to display the best price available
on NYSE Bonds. However, during the operation of this pilot, no
significant liquidity was generated. This is not the case with the
pilot program for liquidity takers. Accordingly, the Exchange proposes
that the pilot program for liquidity providers be retired on its
expiration date of December 31, 2009, and be removed from the NYSE
Price List.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the provisions of Section 6 of the Act \7\ 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.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78f.
\8\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
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
Because the foregoing rule change establishes or changes a due,
fee, or other charge imposed by the Exchange, it has become effective
pursuant to Section 19(b)(3)(A) of the Act \9\ and subparagraph (f)(2)
of Rule 19b-4 thereunder.\10\ 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.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
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-20098-127 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-2009-127. 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
[[Page 68653]]
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 NYSE. 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-2009-127 and should be submitted on or before January 19, 2010.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
---------------------------------------------------------------------------
\11\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-30616 Filed 12-24-09; 8:45 am]
BILLING CODE 8011-01-P
