Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Extending the Operation of Its Supplemental Liquidity Providers Pilot, NYSE Rule 107B Until the Earlier of the Securities and Exchange Commission's Approval To Make Such Pilot Permanent or September 30, 2010, 18563-18565 [2010-8219]
Download as PDF
<![CDATA[
Federal Register / Vol. 75, No. 69 / Monday, April 12, 2010 / Notices
effective on filing of this proposed rule,
operative for trading on April 1, 2010.
Pursuant to Exchange Rule 16.1(c), the
Exchange will ‘‘provide ETP Holders
with notice of all relevant dues, fees,
assessments and charges of the
Exchange’’ through the issuance of a
Regulatory Circular of the changes to the
Fee Schedule and will post a copy of the
rule filing on the Exchange’s Web site
(https://www.nsx.com).
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the provisions of Section 6(b) of the
Act,5 in general, and Section 6(b)(4) of
the Act,6 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 the facilities of the
Exchange. Moreover, the proposed rule
change is not discriminatory in that all
ETP Holders are eligible to submit (or
not submit) trades and quotes at any
price in AutoEx and Order Delivery in
all tapes, as either displayed or
undisplayed and as liquidity adding or
liquidity taking, and may do so at their
discretion.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any inappropriate burden on
competition.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
The Exchange has neither solicited
nor received written comments on the
proposed rule change.
sroberts on DSKD5P82C1PROD with NOTICES
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The proposed rule change has taken
effect upon filing pursuant to Section
19(b)(3)(A)(ii) of the Act 7 and
subparagraph (f)(2) of Rule 19b–4 8
thereunder, because, as provided in
(f)(2), it changes ‘‘a due, fee or other
charge applicable only to a member’’
(known on the Exchange as an ETP
Holder). At any time within sixty (60)
days of the filing of such 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
5 15
U.S.C. 78f(b).
U.S.C. 78f(b)(4).
7 15 U.S.C. 78s(b)(3)(A)(ii).
8 17 CFR 240.19b–4.
6 15
VerDate Nov<24>2008
17:58 Apr 09, 2010
Jkt 220001
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–NSX–2010–03 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.
18563
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.9
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–8225 Filed 4–9–10; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–61840; File No. SR–NYSE–
2010–28]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change Extending the
Operation of Its Supplemental Liquidity
Providers Pilot, NYSE Rule 107B Until
the Earlier of the Securities and
Exchange Commission’s Approval To
Make Such Pilot Permanent or
September 30, 2010
April 5, 2010.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 1 and Rule 19b–4 thereunder,2
notice is hereby given that, on March
All submissions should refer to File
30, 2010, New York Stock Exchange
Number SR–NSX–2010–03. This file
LLC (‘‘NYSE’’ or the ‘‘Exchange’’) filed
number should be included on the
subject line if e-mail is used. To help the with the Securities and Exchange
Commission (the ‘‘Commission’’) the
Commission process and review your
proposed rule change as described in
comments more efficiently, please use
only one method. The Commission will Items I and II below, which Items have
post all comments on the Commission’s been prepared by the self-regulatory
organization. The Commission is
Internet Web site (https://www.sec.gov/
publishing this notice to solicit
rules/sro.shtml). Copies of the
comments on the proposed rule change
submission, all subsequent
from interested persons.
amendments, all written statements
with respect to the proposed rule
I. Self-Regulatory Organization’s
change that are filed with the
Statement of the Terms of Substance of
Commission, and all written
the Proposed Rule Change
communications relating to the
The Exchange proposes to extend the
proposed rule change between the
Commission and any person, other than operation of its Supplemental Liquidity
Providers Pilot (‘‘SLP Pilot’’ or ‘‘Pilot’’)
those that may be withheld from the
(see Rule 107B), until the earlier of the
public in accordance with the
Securities and Exchange Commission’s
provisions of 5 U.S.C. 552, will be
approval to make such pilot permanent
available for Web site viewing and
or September 30, 2010. The text of the
printing in the Commission’s Public
proposed rule change is available on
Reference Room, 100 F Street, NE.,
NYSE’s Web site at https://
Washington, DC 20549, on official
www.nyse.com, on the Commission’s
business days between the hours of 10
a.m. and 3 p.m. Copies of the filing will Web site at https://www.sec.gov, and at
the Commission’s Public Reference
also be available for inspection and
Room.
copying at the principal office of the
self-regulatory organization. All
II. Self-Regulatory Organization’s
comments received will be posted
Statement of the Purpose of, and
without change; the Commission does
Statutory Basis for, the Proposed Rule
not edit personal identifying
Change
information from submissions. You
In its filing with the Commission, the
should submit only information that
self-regulatory organization included
you wish to make available publicly. All
submissions should refer to File
9 17 CFR 200.30–3(a)(12).
Number SR–NSX–2010–03 and should
1 15 U.S.C.78s(b)(1).
be submitted on or before May 3, 2010.
2 17 CFR 240.19b–4.
PO 00000
Frm 00095
Fmt 4703
Sfmt 4703
E:\FR\FM\12APN1.SGM
12APN1
18564
Federal Register / Vol. 75, No. 69 / Monday, April 12, 2010 / Notices
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.
The SLP Pilot is scheduled to end
operation on March 30, 2010 or such
earlier time as the Commission may
determine to make the rules permanent.
The Exchange is currently preparing a
rule filing seeking permission to make
the SLP Pilot permanent, but does not
expect that filing to be completed and
approved by the Commission before
March 30, 2010.8
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
Proposal To Extend the Operation of the
SLP Pilot
The NYSE established the SLP Pilot to
provide incentives for quoting, to
enhance competition among the existing
group of liquidity providers, including
the DMMs, and add new competitive
market participants. The Exchange
believes that the SLP Pilot, in
coordination with the NMM Pilot,
allows the Exchange to provide its
market participants with a trading
venue that utilizes an enhanced market
structure to encourage the addition of
liquidity, facilitate the trading of larger
orders more efficiently and operates to
reward aggressive liquidity providers.
As such, the Exchange believes that the
rules governing the SLP Pilot (Rule
107B) should be made permanent.
Through this filing the Exchange seeks
to extend the current operation of the
SLP Pilot until September 30, 2010, in
order to allow the Exchange to formally
submit a filing to the Commission to
convert the pilot rule to a permanent
rule.9
1. Purpose
The Exchange proposes to extend the
operation of its Supplemental Liquidity
Providers Pilot 3 approved by the
Securities and Exchange Commission
(‘‘SEC’’ or ‘‘Commission’’) to operate
until March 30, 2010, until the earlier of
the SEC’s approval to make such pilot
permanent or through September 30,
2010.
sroberts on DSKD5P82C1PROD with NOTICES
Background 4
In October 2008, the NYSE
implemented significant changes to its
market rules, execution technology and
the rights and obligations of its market
participants all of which were designed
to improve execution quality on the
Exchange. These changes are all
elements of the Exchange’s enhanced
market model referred to as the ‘‘New
Market Model’’ (‘‘NMM Pilot’’).5 The SLP
Pilot was launched in coordination with
the NMM Pilot (see Rule 107B).
As part of the NMM Pilot, NYSE
eliminated the function of specialists on
the Exchange creating a new category of
market participant, the Designated
Market Maker or DMM.6 Separately, the
NYSE established the SLP Pilot, which
established SLPs as a new class of
market participants to supplement the
liquidity provided by DMMs.7
3 See Securities Exchange Act Release No. 58877
(October 29, 2008), 73 FR 65904 (November 5, 2008)
(SR–NYSE–2008–108) (establishing the SLP Pilot).
See also Securities Exchange Act Release No. 59869
(May 6, 2009), 74 FR 22796 (May 14, 2009) (SR–
NYSE–2009–46) (extending the operation of the
SLP Pilot to October 1, 2009). See also Securities
Exchange Act Release No. 60756 (October 1, 2009),
74 FR 51628 (October 7, 2009) (SR–NYSE–2009–
100) (extending the operation of the New Market
Model and the SLP Pilots to November 30, 2009).
See also Securities Exchange Act Release No. 61075
(November 30, 2009), 74 FR 64112 (December 7,
2009) (SR–NYSE–2009–119) (extending the
operation of the SLP Pilot to March 30, 2010).
4 The information contained herein is a summary
of the NMM Pilot and the SLP Pilot, for a fuller
description of those pilots see supra notes 1 and 2
[sic].
5 See Securities Exchange Act Release No. 58845
(October 24, 2008) 73 FR 64379 (October 29, 2008)
(SR–NYSE–2008–46).
6 See NYSE Rule 103.
7 See NYSE Rules 107B.
VerDate Nov<24>2008
19:34 Apr 09, 2010
Jkt 220001
2. Statutory Basis
The basis under the Securities
Exchange Act of 1934 (the ‘‘Act’’) for this
proposed rule change is the requirement
under Section 6(b)(5) 10 that an
exchange have rules that are designed to
promote just and equitable principles of
trade, to remove impediments to and
perfect the mechanism of a free and
open market and a national market
system and, in general, to protect
investors and the public interest. The
Exchange believes that the instant filing
is consistent with these principles
because the SLP Pilot provides its
8 The NMM Pilot was scheduled to expire on
March 30, 2010. On March 12, 2010 the Exchange
filed to extend the NMM Pilot until September 30,
2010 (See Securities Exchange Act Release No.
61724 (March 17, 2010) (SR–NYSE–2010–25)
(extending the operation of the New Market Model
Pilot to September 30, 2010); See also Securities
Exchange Act Release No. 61031 (November 19,
2009) (SR–NYSE–2009–113) (extending the
operation of the New Market Model Pilot to March
30, 2010).
9 The NYSE Amex SLP Pilot (NYSE Amex
Equities Rule 107B) is also being extended until
September 30, 2010 or until the Commission
approves it as permanent (See SR–NYSEAmex–
2010–33).
10 15 U.S.C. 78f(b)(5).
PO 00000
Frm 00096
Fmt 4703
Sfmt 4703
market participants with a trading
venue that utilizes an enhanced market
structure to encourage the addition of
liquidity and operates to reward
aggressive liquidity providers.
Moreover, the instant filing requesting
an extension of the SLP Pilot will
permit adequate time for: (i) The
Exchange to prepare and submit a filing
to make the rules governing the SLP
Pilot permanent; (ii) public notice and
comment; and (iii) completion of the
19b–4 approval process.
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 proposed rule
change: (i) Does not significantly affect
the protection of investors or the public
interest; (ii) does not impose any
significant burden on competition; and
(iii) by its terms, does not become
operative for 30 days from the date on
which it was filed, or such shorter time
as the Commission may designate, if
consistent with the protection of
investors and the public interest, it has
become effective pursuant to Section
19(b)(3)(A) of the Act 11 and Rule 19b–
4(f)(6) thereunder.12
A proposed rule change filed under
Rule 19b–4(f)(6) 13 normally does not
become operative prior to 30 days after
the date of the filing. However, pursuant
to Rule 19b–4(f)(6)(iii),14 the
Commission may designate a shorter
time if such action is consistent with the
protection of investors and the public
interest. The Exchange has asked the
Commission to waive the 30-day
operative delay so that
11 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires the self-regulatory organization
to submit to the Commission written notice of its
intent to file the proposed rule change, along with
a brief description and text of the proposed rule
change, at least five business days prior to the date
of filing of the proposed rule change, or such
shorter time as designated by the Commission. The
Exchange has satisfied this requirement.
13 17 CFR 240.19b–4(f)(6).
14 17 CFR 240.19b–4(f)(6)(iii).
12 17
E:\FR\FM\12APN1.SGM
12APN1
Federal Register / Vol. 75, No. 69 / Monday, April 12, 2010 / Notices
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 Web site viewing and
printing 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 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–
2010–28 and should be submitted on or
before May 3, 2010.
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:
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.16
Florence E. Harmon,
Deputy Secretary.
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–2010–28 on the
subject line.
sroberts on DSKD5P82C1PROD with NOTICES
the proposal may become operative
immediately upon filing.
The Commission believes that
waiving the 30-day operative delay is
consistent with the protection of
investors and the public interest. The
Commission notes that because the pilot
program will expire on March 30, 2010,
waiver of the operative delay is
necessary so that no interruption of the
pilot program will occur. In addition,
the Commission notes that the Exchange
has requested extensions of the pilot to
allow the Exchange time to formally
request permanent approval for the
pilot. Therefore, the Commission
designates the proposal operative upon
filing.15
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.
SECURITIES AND EXCHANGE
COMMISSION
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–2010–28. 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
15 For purposes only of waiving the operative
delay for this proposal, the Commission has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
VerDate Nov<24>2008
17:58 Apr 09, 2010
Jkt 220001
[FR Doc. 2010–8219 Filed 4–9–10; 8:45 am]
BILLING CODE 8011–01–P
18565
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The ISE is proposing to extend an
incentive plan for market makers in four
foreign currency options (‘‘FX Options’’).
The text of the proposed rule change is
available on the Exchange’s Web site
(https://www.ise.com), on the
Commission’s Web site at https://
www.sec.gov, at the principal office of
the Exchange, 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
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
[Release No. 34–61851; File No. SR–ISE–
2010–27]
Self-Regulatory Organizations;
International Securities Exchange,
LLC; Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change Relating to a Market Maker
Incentive Plan for Foreign Currency
Options
April 6, 2010.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on March 31,
2010, the International Securities
Exchange, LLC (the ‘‘Exchange’’ or the
‘‘ISE’’) 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 selfregulatory organization. The
Commission is publishing this notice to
16 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
PO 00000
Frm 00097
Fmt 4703
Sfmt 4703
The purpose of this proposed rule
change is to extend an incentive plan for
market makers in options on the New
Zealand dollar (‘‘NZD’’), the Mexican
peso (‘‘PZO’’), the Swedish krona
(‘‘SKA’’) and the Brazilian real (‘‘BRB’’).3
On August 3, 2009, the Exchange
adopted an incentive plan applicable to
market makers in NZD, PZO and SKA,4
and on January 19, 2010, added BRB to
the incentive plan.5 The Exchange
subsequently extended the date by
which market makers may join the
incentive plan.6 The Exchange proposes
to again extend the date by which
3 The Commission previously approved the
trading of options on NZD, PZO, SKA and BRB. See
Exchange Act Release No. 34–55575 (April 3, 2007),
72 FR 17963 (April 10, 2007) (SR–ISE–2006–59).
4 See Exchange Act Release No. 34–60536 (August
19, 2009), 74 FR 43204 (August 26, 2009) (SR–ISE–
2009–59).
5 See Exchange Act Release No. 34–61459
(February 1, 2010), 75 FR 6248 (February 8, 2010)
(SR–ISE–2010–07).
6 See Exchange Act Release Nos. 34–60810
(October 9, 2009), 74 FR 53527 (October 19, 2009)
(SR–ISE–2009–80); 34–61334 (January 12, 2010), 75
FR 2913 (January 19, 2010) (SR–ISE–2009–115).
E:\FR\FM\12APN1.SGM
12APN1
]]>Agencies
[Federal Register Volume 75, Number 69 (Monday, April 12, 2010)]
[Notices]
[Pages 18563-18565]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-8219]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-61840; File No. SR-NYSE-2010-28]
Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Extending the Operation of Its Supplemental Liquidity Providers Pilot,
NYSE Rule 107B Until the Earlier of the Securities and Exchange
Commission's Approval To Make Such Pilot Permanent or September 30,
2010
April 5, 2010.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that, on March 30, 2010, New York Stock Exchange LLC (``NYSE'' or the
``Exchange'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I and II
below, which Items have been prepared by the self-regulatory
organization. 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.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to extend the operation of its Supplemental
Liquidity Providers Pilot (``SLP Pilot'' or ``Pilot'') (see Rule 107B),
until the earlier of the Securities and Exchange Commission's approval
to make such pilot permanent or September 30, 2010. The text of the
proposed rule change is available on NYSE's Web site at https://www.nyse.com, on the Commission's Web site at https://www.sec.gov, 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
[[Page 18564]]
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
The Exchange proposes to extend the operation of its Supplemental
Liquidity Providers Pilot \3\ approved by the Securities and Exchange
Commission (``SEC'' or ``Commission'') to operate until March 30, 2010,
until the earlier of the SEC's approval to make such pilot permanent or
through September 30, 2010.
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release No. 58877 (October 29,
2008), 73 FR 65904 (November 5, 2008) (SR-NYSE-2008-108)
(establishing the SLP Pilot). See also Securities Exchange Act
Release No. 59869 (May 6, 2009), 74 FR 22796 (May 14, 2009) (SR-
NYSE-2009-46) (extending the operation of the SLP Pilot to October
1, 2009). See also Securities Exchange Act Release No. 60756
(October 1, 2009), 74 FR 51628 (October 7, 2009) (SR-NYSE-2009-100)
(extending the operation of the New Market Model and the SLP Pilots
to November 30, 2009). See also Securities Exchange Act Release No.
61075 (November 30, 2009), 74 FR 64112 (December 7, 2009) (SR-NYSE-
2009-119) (extending the operation of the SLP Pilot to March 30,
2010).
---------------------------------------------------------------------------
Background \4\
---------------------------------------------------------------------------
\4\ The information contained herein is a summary of the NMM
Pilot and the SLP Pilot, for a fuller description of those pilots
see supra notes 1 and 2 [sic].
---------------------------------------------------------------------------
In October 2008, the NYSE implemented significant changes to its
market rules, execution technology and the rights and obligations of
its market participants all of which were designed to improve execution
quality on the Exchange. These changes are all elements of the
Exchange's enhanced market model referred to as the ``New Market
Model'' (``NMM Pilot'').\5\ The SLP Pilot was launched in coordination
with the NMM Pilot (see Rule 107B).
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 58845 (October 24,
2008) 73 FR 64379 (October 29, 2008) (SR-NYSE-2008-46).
---------------------------------------------------------------------------
As part of the NMM Pilot, NYSE eliminated the function of
specialists on the Exchange creating a new category of market
participant, the Designated Market Maker or DMM.\6\ Separately, the
NYSE established the SLP Pilot, which established SLPs as a new class
of market participants to supplement the liquidity provided by DMMs.\7\
---------------------------------------------------------------------------
\6\ See NYSE Rule 103.
\7\ See NYSE Rules 107B.
---------------------------------------------------------------------------
The SLP Pilot is scheduled to end operation on March 30, 2010 or
such earlier time as the Commission may determine to make the rules
permanent. The Exchange is currently preparing a rule filing seeking
permission to make the SLP Pilot permanent, but does not expect that
filing to be completed and approved by the Commission before March 30,
2010.\8\
---------------------------------------------------------------------------
\8\ The NMM Pilot was scheduled to expire on March 30, 2010. On
March 12, 2010 the Exchange filed to extend the NMM Pilot until
September 30, 2010 (See Securities Exchange Act Release No. 61724
(March 17, 2010) (SR-NYSE-2010-25) (extending the operation of the
New Market Model Pilot to September 30, 2010); See also Securities
Exchange Act Release No. 61031 (November 19, 2009) (SR-NYSE-2009-
113) (extending the operation of the New Market Model Pilot to March
30, 2010).
---------------------------------------------------------------------------
Proposal To Extend the Operation of the SLP Pilot
The NYSE established the SLP Pilot to provide incentives for
quoting, to enhance competition among the existing group of liquidity
providers, including the DMMs, and add new competitive market
participants. The Exchange believes that the SLP Pilot, in coordination
with the NMM Pilot, allows the Exchange to provide its market
participants with a trading venue that utilizes an enhanced market
structure to encourage the addition of liquidity, facilitate the
trading of larger orders more efficiently and operates to reward
aggressive liquidity providers. As such, the Exchange believes that the
rules governing the SLP Pilot (Rule 107B) should be made permanent.
Through this filing the Exchange seeks to extend the current operation
of the SLP Pilot until September 30, 2010, in order to allow the
Exchange to formally submit a filing to the Commission to convert the
pilot rule to a permanent rule.\9\
---------------------------------------------------------------------------
\9\ The NYSE Amex SLP Pilot (NYSE Amex Equities Rule 107B) is
also being extended until September 30, 2010 or until the Commission
approves it as permanent (See SR-NYSEAmex-2010-33).
---------------------------------------------------------------------------
2. Statutory Basis
The basis under the Securities Exchange Act of 1934 (the ``Act'')
for this proposed rule change is the requirement under Section 6(b)(5)
\10\ that an exchange have rules that are designed to promote just and
equitable principles of trade, to remove impediments to and perfect the
mechanism of a free and open market and a national market system and,
in general, to protect investors and the public interest. The Exchange
believes that the instant filing is consistent with these principles
because the SLP Pilot provides its market participants with a trading
venue that utilizes an enhanced market structure to encourage the
addition of liquidity and operates to reward aggressive liquidity
providers. Moreover, the instant filing requesting an extension of the
SLP Pilot will permit adequate time for: (i) The Exchange to prepare
and submit a filing to make the rules governing the SLP Pilot
permanent; (ii) public notice and comment; and (iii) completion of the
19b-4 approval process.
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
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 proposed rule change: (i) Does not
significantly affect the protection of investors or the public
interest; (ii) does not impose any significant burden on competition;
and (iii) by its terms, does not become operative for 30 days from the
date on which it was filed, or such shorter time as the Commission may
designate, if consistent with the protection of investors and the
public interest, it has become effective pursuant to Section
19(b)(3)(A) of the Act \11\ and Rule 19b-4(f)(6) thereunder.\12\
---------------------------------------------------------------------------
\11\ 15 U.S.C. 78s(b)(3)(A).
\12\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires the self-regulatory organization to submit to the
Commission written notice of its intent to file the proposed rule
change, along with a brief description and text of the proposed rule
change, at least five business days prior to the date of filing of
the proposed rule change, or such shorter time as designated by the
Commission. The Exchange has satisfied this requirement.
---------------------------------------------------------------------------
A proposed rule change filed under Rule 19b-4(f)(6) \13\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\14\ the Commission
may designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has asked
the Commission to waive the 30-day operative delay so that
[[Page 18565]]
the proposal may become operative immediately upon filing.
---------------------------------------------------------------------------
\13\ 17 CFR 240.19b-4(f)(6).
\14\ 17 CFR 240.19b-4(f)(6)(iii).
---------------------------------------------------------------------------
The Commission believes that waiving the 30-day operative delay is
consistent with the protection of investors and the public interest.
The Commission notes that because the pilot program will expire on
March 30, 2010, waiver of the operative delay is necessary so that no
interruption of the pilot program will occur. In addition, the
Commission notes that the Exchange has requested extensions of the
pilot to allow the Exchange time to formally request permanent approval
for the pilot. Therefore, the Commission designates the proposal
operative upon filing.\15\
---------------------------------------------------------------------------
\15\ For purposes only of waiving the operative delay for this
proposal, the Commission has considered the proposed rule's impact
on efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
---------------------------------------------------------------------------
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-2010-28 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-2010-28. 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 Web site viewing and
printing 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 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-2010-28 and should be
submitted on or before May 3, 2010.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\16\
---------------------------------------------------------------------------
\16\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-8219 Filed 4-9-10; 8:45 am]
BILLING CODE 8011-01-P
