Self-Regulatory Organizations; NYSE Amex LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending Its Fee Schedule, 18556-18558 [2010-8223]
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18556
Federal Register / Vol. 75, No. 69 / Monday, April 12, 2010 / Notices
sroberts on DSKD5P82C1PROD with NOTICES
that the Advisor is not affiliated with a
broker-dealer and that any additional
Fund sub-advisors that are affiliated
with a broker-dealer will be required to
implement a fire wall with respect to
such broker-dealer regarding access to
information concerning the composition
and/or changes to a portfolio. Further,
the Commission notes that the
Reporting Authority that provides the
Disclosed Portfolio must implement and
maintain, or be subject to, procedures
designed to prevent the use and
dissemination of material non-public
information regarding the actual
components of the portfolio.18
The Exchange has represented that
the Shares are equity securities subject
to the Exchange’s rules governing the
trading of equity securities. In support
of this proposal, the Exchange has made
representations, including:
(1) The Shares will conform to the
initial and continued listing criteria
under NYSE Arca Equities Rule 8.600.
(2) The Exchange’s surveillance
procedures are adequate to properly
monitor Exchange trading of the Shares
in all trading sessions and to deter and
detect violations of Exchange rules and
applicable Federal securities laws.
(3) Prior to the commencement of
trading, the Exchange will inform its
ETP Holders in an Information Bulletin
of the special characteristics and risks
associated with trading the Shares.
Specifically, the Information Bulletin
will discuss the following: (a) The
procedures for purchases and
redemptions of Shares in Creation Unit
aggregations and that Shares are not
individually redeemable; (b) NYSE Arca
Equities Rule 9.2(a), which imposes a
duty of due diligence on its ETP Holders
to learn the essential facts relating to
every customer prior to trading the
Shares; (c) the risks involved in trading
the Shares during the Opening and Late
Trading Sessions when an updated PIV
will not be calculated or publicly
disseminated; (d) how information
regarding the PIV is disseminated; (e)
the requirement that ETP Holders
deliver a prospectus to investors
purchasing newly issued Shares prior to
or concurrently with the confirmation of
a transaction; and (f) trading
information.
(4) The Fund will be in compliance
with Rule 10A–3 under the Act.
the view of the Exchange, make trading in the
Shares inadvisable. These may include: (1) The
extent to which trading is not occurring in the
securities comprising the Disclosed Portfolio and/
or the financial instruments of the Fund; or (2)
whether other unusual conditions or circumstances
detrimental to the maintenance of a fair and orderly
market are present.
18 See NYSE Arca Equities Rule 8.600(d)(2)(B)(ii).
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(5) The Underlying ETFs will be
traded on a U.S. national securities
exchange and, except for Underlying
ETFs that may hold non-U.S. issues, the
Fund will not otherwise invest in nonU.S. issues.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.22
Florence E. Harmon,
Deputy Secretary.
This approval order is based on the
Exchange’s representations.
For the foregoing reasons, the
Commission finds that the proposed
rule change is consistent with the Act
and the rules and regulations
thereunder applicable to a national
securities exchange.
BILLING CODE 8011–01–P
V. Accelerated Approval
The Commission finds good cause,
pursuant to Section 19(b)(2) of the
Act,19 for approving the proposal prior
to the thirtieth day after the date of
publication of the Notice in the Federal
Register. The Commission notes that it
has approved the listing and trading on
the Exchange of shares of other actively
managed exchange-traded funds based
on a portfolio of securities, the
characteristics of which are similar to
those to be invested by the Funds.20 The
Commission also notes that it has
received no comments regarding the
proposed rule change. Further, the
Commission believes that the changes in
Amendment No. 1 to the name of the
Fund and the Sub-Adviser do not raise
any novel regulatory concerns,
particularly because Amendment No. 1
makes clear that all other
representations in the Notice remain as
stated therein, except that
representations in the Notice to HTE
Global Relative Value ETF and HTE
Asset Management LLC are understood
to mean and to apply to Mars Hill
Global Relative Value ETF and Mars
Hill Partners, LLC, respectively. The
Commission believes that accelerating
approval of this proposal should benefit
investors by creating, without undue
delay, additional competition in the
market for Managed Fund Shares.
VI. Conclusion
It is therfore ordered, pursuant to
Section 19(b)(2) of the Act,21 that the
proposed rule change (SR–NYSEArca–
2010–10), as modified by Amendment
No. 1 thereto, be, and it hereby is,
approved on an accelerated basis.
19 15
U.S.C. 78s(b)(2).
e.g., Securities Exchange Act Release No.
60981 (November 10, 2009), 74 FR 59594
(November 18, 2009) (SR–NYSEArca–2009–79)
(approving the listing and trading of shares of five
actively-managed fixed income funds of the PIMCO
ETF Trust).
21 15 U.S.C. 78s(b)(2).
20 See,
PO 00000
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Fmt 4703
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[FR Doc. 2010–8221 Filed 4–9–10; 8:45 am]
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–61849; File No. SR–
NYSEAmex–2010–30]
Self-Regulatory Organizations; NYSE
Amex LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Amending Its Fee
Schedule
April 6, 2010.
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 March
31, 2010, NYSE Amex LLC (‘‘NYSE
Amex’’ 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 self-regulatory
organization. Amex filed the proposal
pursuant to Section 19(b)(3)(A) 4 of the
Act and Rule 19b–4(f)(2) 5 thereunder.
The Commission is publishing this
notice to 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 Exchange proposes to revise the
manner in which marketing charges are
made available to Specialists for NonDirected orders. The text of the
proposed rule change is available on the
Commission’s Web site at https://
www.sec.gov. 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
self-regulatory organization included
statements concerning the purpose of,
and basis for, the proposed rule change
22 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 15 U.S.C. 78s(b)(3)(A).
5 17 CFR 240.19b–4(f)(2).
1 15
E:\FR\FM\12APN1.SGM
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Federal Register / Vol. 75, No. 69 / Monday, April 12, 2010 / Notices
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.
sroberts on DSKD5P82C1PROD with NOTICES
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of this filing is to
introduce a quantitative, performance
based measure to be used in the
allocation of the pool of monies created
from the collection of marketing charges
on electronic Non-Directed orders.
Presently, marketing charges are
collected by the Exchange on all
electronically executed customer orders
where a market maker is on the contra
side. The Exchange pools the marketing
fees and then distributes it to payment
accepting firms (order flow providers) at
the direction of the Specialist, eSpecialist, or Directed Market Maker.6
For those orders that are directed to
a specific Specialist, e-Specialist, or
market maker (Directed orders), the
Exchange pools the marketing fees and
then distributes it to payment accepting
firms designated by the ATP holder that
the order was directed to. Electronically
executed customer orders that are not
directed to a specific ATP holder (NonDirected orders) that result in the
collection of marketing charges, create a
pool of monies made available to the
Specialist in that particular option.
The Exchange recently introduced an
e-Specialist program,7 and seeks to
ensure that those ATP holders are
recognized for providing competitive
quotes and attracting order flow to the
Exchange. To do so the Exchange
proposes that the pool of monies
resulting from the collection of
marketing charges on electronic NonDirected orders be controlled by the
Specialist or the e-Specialist with
superior volume performance over a
trailing quarterly review period for
distribution by the Exchange at the
direction of such Specialist or eSpecialist to eligible payment accepting
firms. In making this determination the
Exchange will, on a class by class basis,
evaluate Specialist and e-Specialist
performance based on the number of
electronic contracts executed at NYSE
Amex per class. The Specialist/e6 See Securities Exchange Act Release No. 59478
(February 27, 2009) 74 FR 9857 (March 6, 2009)
(SR–NYSEALTR–2009–19).
7 See NYSE Amex Rule 927.4NY (e-Specialists).
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17:58 Apr 09, 2010
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Specialist with the most electronic
contracts executed on NYSE Amex per
class will control the pool of marketing
charges collected on the issue for the
ensuing quarter. The Exchange may
determine in the future to include
additional metrics in the performance
calculus subject to the submission of a
subsequent filing to the Commission
and upon notice via Regulatory Bulletin
to the participants prior to the next
quarterly evaluation period. The
calculation used at the beginning of a
calendar quarter will remain in effect for
the duration of that calendar quarter.
Each quarter the calculation will be
performed to determine if control of that
pool of monies belongs to either the
Specialist or e-Specialist. In the event
that the better performing party no
longer quotes in that issue, control of
the pool will default to whoever the
assigned Specialist is in the subsequent
quarter. If there is no Specialist
assigned, but there is an e-Specialist
assigned, the e-Specialist shall have
control of these monies.
The Exchange believes that this is an
appropriate means of allocating control
of the pool of monies created by the
collection of marketing charges as it
rewards those ATP holders who are
providing competitive quotes and
attracting order flow to the Exchange.
The Exchange further believes that this
change benefits customers by
incentivizing greater competition
amongst specialists and e-specialists to
provide tighter spreads and attract
greater order flow.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the provisions of Section 6 of the
Securities Exchange Act of 1934 (the
‘‘Act’’),8 in general, and Section 6(b)(4)
of the Act,9 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.
8 15
9 15
PO 00000
U.S.C. 78f(b).
U.S.C. 78f(b)(4).
Frm 00089
Fmt 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
The foregoing rule change is effective
upon filing pursuant to Section
19(b)(3)(A) 10 of the Act and
subparagraph (f)(2) of Rule 19b–4 11
thereunder, because it establishes a due,
fee, or other charge imposed by the
NYSE Amex.
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–NYSEAmex–2010–30 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–NYSEAmex–2010–30. 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
10 15
11 17
Sfmt 4703
18557
E:\FR\FM\12APN1.SGM
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(2).
12APN1
18558
Federal Register / Vol. 75, No. 69 / Monday, April 12, 2010 / Notices
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 the 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–
NYSEAmex–2010–30 and should be
submitted on or before May 3, 2010.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–8223 Filed 4–9–10; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–61843; File No. SR–
NYSEArca–2010–12]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Order Granting Accelerated
Approval of a Proposed Rule Change
Relating to Listing of the One Fund
Under NYSE Arca Equities Rule 8.600
sroberts on DSKD5P82C1PROD with NOTICES
April 5, 2010.
On March 2, 2010, NYSE Arca, Inc.
(‘‘NYSE Arca’’ or ‘‘Exchange’’), filed with
the Securities and Exchange
Commission (‘‘Commission’’), pursuant
to Section 19(b)(1) of the Securities
Exchange Act of 1934 (‘‘Act’’) 1 and Rule
19b–4 thereunder,2 a proposed rule
change to list and trade shares of One
Fund (the ‘‘Fund’’), a series of the U.S.
One Trust (the ‘‘Trust’’) under NYSE
Arca Equities Rule 8.600 (‘‘Managed
Fund Shares’’). The proposed rule
change was published in the Federal
Register on March 18, 2010.3 The
Commission received no comments on
the proposal. This order grants approval
12 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 See Securities Exchange Act Release No. 61689
(March 11, 2010), 75 FR 13181 (‘‘Notice’’).
1 15
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17:58 Apr 09, 2010
Jkt 220001
of the proposed rule change on an
accelerated basis.
I. Description of the Proposal
The Fund seeks to achieve its
investment objective by investing
primarily in the retail shares of other
exchange-traded funds that are
registered under the Investment
Company Act of 1940 (‘‘1940 Act’’)
(‘‘Underlying ETFs’’).4 U.S. One, Inc.
(the ‘‘Adviser’’) is the adviser for the
Fund. The Adviser is not affiliated with
a broker-dealer. If the Adviser becomes
affiliated with a broker-dealer, the
Adviser would be required to comply
with the ‘‘fire wall’’ provisions
contained in Commentary .07 to NYSE
Arca Equities Rule 8.600.5 PNC Global
Investment Servicing, Inc. serves as the
custodian, transfer agent and
administrator for the Fund.
The Exchange states that the Shares
will conform to the initial and
continued listing criteria under NYSE
Arca Equities Rule 8.600 and that the
Fund will be in compliance with Rule
10A–3 under the Act,6 as provided by
NYSE Arca Equities Rule 5.3. The
Fund’s investment objective is to seek
long-term capital appreciation. In
pursuing its investment objective, the
Adviser will normally invest at least
80% of its total assets in Underlying
ETFs. The Adviser invests in
Underlying ETFs that track various
securities indices comprised of large,
mid and small capitalization companies
in the United States, Europe and Asia,
as well as other developed and emerging
markets.
Additional information regarding the
Fund, the Shares, the Fund’s investment
objective, investment strategies,
4 The Trust is registered under the 1940 Act. On
February 5, 2010, the Trust filed with the
Commission Amendment No. 2 to Form N–1A
under the Securities Act of 1933 (15 U.S.C. 77a),
and under the 1940 Act relating to the Fund (File
Nos. 333–160877 and 811–22320) (‘‘Registration
Statement’’).
5 Commentary .07 to Rule 8.600 provides that, if
the investment adviser to the Investment Company
issuing Managed Fund Shares is affiliated with a
broker-dealer, such investment adviser shall erect a
‘‘fire wall’’ between the investment adviser and the
broker-dealer with respect to access to information
concerning the composition and/or changes to such
Investment Company portfolio. In addition,
Commentary .07 requires that personnel who make
decisions on the open-end fund’s portfolio
composition must be subject to procedures
designed to prevent the use and dissemination of
material nonpublic information regarding the openend fund’s portfolio. Commentary .07 to Rule 8.600
is similar to Commentary .03(a)(i) and (iii) to NYSE
Arca Equities Rule 5.2(j)(3); however, in connection
with the establishment of a ‘‘fire wall’’ between the
investment adviser and the broker-dealer,
Commentary .07 reflects the applicable open-end
fund’s portfolio, not an underlying benchmark
index, as is the case with index-based funds.
6 17 CFR 240.10A–3.
PO 00000
Frm 00090
Fmt 4703
Sfmt 4703
policies, restrictions, risks, fees and
expenses, creations and redemptions of
Shares, availability of information,
trading rules and halts, and surveillance
procedures, among other things, can be
found in the Registration Statement and
in the Notice, as applicable.7
II. Discussion and Commission’s
Findings
The Commission has carefully
reviewed the proposed rule change and
finds that it is consistent with the
requirements of Section 6 of the Act 8
and the rules and regulations
thereunder applicable to a national
securities exchange.9 In particular, the
Commission finds that the proposal is
consistent with Section 6(b)(5) of the
Act,10 which requires, among other
things, that the Exchange’s rules be
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 Commission finds that the
proposal to list and trade the Shares on
the Exchange is consistent with Section
11A(a)(1)(C)(iii) of the Act, which sets
forth Congress’ finding that it is in the
public interest and appropriate for the
protection of investors and the
maintenance of fair and orderly markets
to assure the availability to brokers,
dealers and investors of information
with respect to quotations for and
transactions in securities. Quotation and
last sale information for the Shares will
be available via the Consolidated Tape
Association (‘‘CTA’’) high-speed line,
and the Exchange will disseminate the
Portfolio Indicative Value (‘‘PIV’’) at
least every 15 seconds during the Core
Trading Session through the facilities of
the CTA. In addition, the Fund will
make available on its Web site on each
business day before commencement of
trading of the Core Trading Session the
Disclosed Portfolio as defined in NYSE
Arca Equities Rule 8.600(c)(2) 11 that
will form the basis for its calculation of
7 See
supra notes 3 and 4.
U.S.C. 78f.
9 In approving this proposed rule change the
Commission has considered the proposed rule’s
impact on efficiency, competition, and capital
formation. See 15 U.S.C. 78c(f).
10 17 U.S.C. 78f(b)(5).
11 The Exchange represents that the Fund will
disclose on the Fund’s Web site for each portfolio
security or other financial instrument of the Fund
the following information: Ticker symbol (if
applicable), name of security or financial
instrument, number of shares or dollar value of
financial instruments held in the portfolio, and
percentage weighting of the security or financial
instrument in the portfolio.
8 15
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]]>Agencies
[Federal Register Volume 75, Number 69 (Monday, April 12, 2010)]
[Notices]
[Pages 18556-18558]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-8223]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-61849; File No. SR-NYSEAmex-2010-30]
Self-Regulatory Organizations; NYSE Amex LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change Amending Its Fee
Schedule
April 6, 2010.
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 March 31, 2010, NYSE Amex LLC (``NYSE Amex'' 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 self-regulatory
organization. Amex filed the proposal pursuant to Section 19(b)(3)(A)
\4\ of the Act and Rule 19b-4(f)(2) \5\ thereunder. 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\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
\4\ 15 U.S.C. 78s(b)(3)(A).
\5\ 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 revise the manner in which marketing
charges are made available to Specialists for Non-Directed orders. The
text of the proposed rule change is available on the Commission's Web
site at https://www.sec.gov. 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 self-regulatory organization
included statements concerning the purpose of, and basis for, the
proposed rule change
[[Page 18557]]
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 the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The purpose of this filing is to introduce a quantitative,
performance based measure to be used in the allocation of the pool of
monies created from the collection of marketing charges on electronic
Non-Directed orders.
Presently, marketing charges are collected by the Exchange on all
electronically executed customer orders where a market maker is on the
contra side. The Exchange pools the marketing fees and then distributes
it to payment accepting firms (order flow providers) at the direction
of the Specialist, e-Specialist, or Directed Market Maker.\6\
---------------------------------------------------------------------------
\6\ See Securities Exchange Act Release No. 59478 (February 27,
2009) 74 FR 9857 (March 6, 2009) (SR-NYSEALTR-2009-19).
---------------------------------------------------------------------------
For those orders that are directed to a specific Specialist, e-
Specialist, or market maker (Directed orders), the Exchange pools the
marketing fees and then distributes it to payment accepting firms
designated by the ATP holder that the order was directed to.
Electronically executed customer orders that are not directed to a
specific ATP holder (Non-Directed orders) that result in the collection
of marketing charges, create a pool of monies made available to the
Specialist in that particular option.
The Exchange recently introduced an e-Specialist program,\7\ and
seeks to ensure that those ATP holders are recognized for providing
competitive quotes and attracting order flow to the Exchange. To do so
the Exchange proposes that the pool of monies resulting from the
collection of marketing charges on electronic Non-Directed orders be
controlled by the Specialist or the e-Specialist with superior volume
performance over a trailing quarterly review period for distribution by
the Exchange at the direction of such Specialist or e-Specialist to
eligible payment accepting firms. In making this determination the
Exchange will, on a class by class basis, evaluate Specialist and e-
Specialist performance based on the number of electronic contracts
executed at NYSE Amex per class. The Specialist/e-Specialist with the
most electronic contracts executed on NYSE Amex per class will control
the pool of marketing charges collected on the issue for the ensuing
quarter. The Exchange may determine in the future to include additional
metrics in the performance calculus subject to the submission of a
subsequent filing to the Commission and upon notice via Regulatory
Bulletin to the participants prior to the next quarterly evaluation
period. The calculation used at the beginning of a calendar quarter
will remain in effect for the duration of that calendar quarter. Each
quarter the calculation will be performed to determine if control of
that pool of monies belongs to either the Specialist or e-Specialist.
In the event that the better performing party no longer quotes in that
issue, control of the pool will default to whoever the assigned
Specialist is in the subsequent quarter. If there is no Specialist
assigned, but there is an e-Specialist assigned, the e-Specialist shall
have control of these monies.
---------------------------------------------------------------------------
\7\ See NYSE Amex Rule 927.4NY (e-Specialists).
---------------------------------------------------------------------------
The Exchange believes that this is an appropriate means of
allocating control of the pool of monies created by the collection of
marketing charges as it rewards those ATP holders who are providing
competitive quotes and attracting order flow to the Exchange. The
Exchange further believes that this change benefits customers by
incentivizing greater competition amongst specialists and e-specialists
to provide tighter spreads and attract greater order flow.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the provisions of Section 6 of the Securities Exchange Act of 1934
(the ``Act''),\8\ in general, and Section 6(b)(4) of the Act,\9\ 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.
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\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the 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 is effective upon filing pursuant to
Section 19(b)(3)(A) \10\ of the Act and subparagraph (f)(2) of Rule
19b-4 \11\ thereunder, because it establishes a due, fee, or other
charge imposed by the NYSE Amex.
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\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 17 CFR 240.19b-4(f)(2).
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At any time within 60 days of the filing of the proposed rule
change, the Commission may summarily abrogate such rule change if it
appears to the Commission that such action is necessary or appropriate
in the public interest, for the protection of investors, or otherwise
in furtherance of the purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-NYSEAmex-2010-30 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-NYSEAmex-2010-30. 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
[[Page 18558]]
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 the 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-NYSEAmex-2010-30 and should be submitted
on or before May 3, 2010.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
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\12\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-8223 Filed 4-9-10; 8:45 am]
BILLING CODE 8011-01-P
