Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change, as Modified by Amendment No. 1, Amending Its Fee Schedule, 20413-20415 [2010-8948]
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Federal Register / Vol. 75, No. 74 / Monday, April 19, 2010 / Notices
(‘‘Commission’’) the proposed rule
change as described in Items I, II, and
III below, which Items have been
prepared by the Exchange. On April 9,
2010, NYSE Arca filed Amendment No.
1 to this filing. NYSE Arca has
designated this proposal as one
establishing or changing a member due,
fee, or other charge imposed 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.
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
publicly available. All submissions
should refer to File Number SR–
NYSEAmex–2010–31 and should be
submitted on or before May 10, 2010.
The Exchange proposes to amend its
Schedule of Fees and Charges for
Exchange Services (the ‘‘Schedule’’).
While changes to the Schedule pursuant
to this proposal will be effective upon
filing, the changes will become
operative on April 1, 2010. The
amended section of the Schedule is
included as Exhibit 5 hereto. A copy of
this filing is available on the Exchange’s
Web site at https://www.nyse.com, at the
Exchange’s principal office, at the
Commission’s Public Reference Room,
and on the Commission’s Web site at
https://www.sec.gov.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.44
Florence E. Harmon,
Deputy Secretary.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
[FR Doc. 2010–8859 Filed 4–16–10; 8:45 am]
In its filing with the Commission, the
self-regulatory organization included
statements concerning the purpose of,
and basis for, the proposed rule change
and discussed any comments it received
on the proposed rule change. The text
of those statements may be examined at
the places specified in Item IV below.
The Exchange has prepared summaries,
set forth in sections A, B, and C below,
of the most significant parts of such
statements.
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–61894; File No. SR–
NYSEArca–2010–24]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change, as Modified by
Amendment No. 1, Amending Its Fee
Schedule
wwoods2 on DSK1DXX6B1PROD with NOTICES_PART 1
April 13, 2010.
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 April 1,
2010, NYSE Arca, Inc. (‘‘NYSE Arca’’ or
‘‘Exchange’’) filed with the Securities
and Exchange Commission
CFR 200.30–3(a)(12) and 200.30–3(a)(44).
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
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange is proposing changes to
certain fees to improve competitiveness
and encourage participation and
liquidity by Customer, Firms, Broker
Dealers, and Market Makers.
20413
Lead Market Maker Rights Fee
Presently, the Exchange charges Lead
Market Makers (‘‘LMMs’’) a monthly
rights fee for each appointed issue.
Effective April 1, 2010, the Exchange
will reduce the rights fee by 50% in
each tier as shown below.
Average national daily customer contracts per issue
Monthly base
rate
0 to 2,000 ..........................
2,001 to 5,000 ...................
5,001 to 15,000 .................
15,001 to 100,000 .............
Over 100,000 .....................
[$150] $75
[$400] $200
[$750] $375
[$1,500] $750
[$3,000] $1,500
Transaction Fee Changes
The Exchange proposes to restructure
certain trade related charges for nonelectronic trades. These trades are
executed in the Firm range (clearance
account ‘‘F’’) and are currently billed
either the Firm Facilitation rate or the
Broker Dealer & Firm rate. Under the
current rate schedule trades by a firm
that facilitate a customer, or Firm
Facilitation trades, are subject to a $0.00
rate per contract. Firm transactions not
facilitating a customer are subject to a
$0.25 Broker/Dealer & Firm Manual rate.
Under the revised rate schedule all
manual trades clearing in the Firm range
will be subject to a rate of $0.18 per
contract and further capped at $2,000
per issue per day, per trading
participant. Firm Proprietary electronic
trades will continue to be charged $0.50
per contract in non-Penny Pilot issues,
$0.45 per contract for taking liquidity in
Penny Pilot issues, and receive a credit
of $0.25 per contract for posting
liquidity in Penny Pilot issues,
consistent with the current rates, but
now a separate line in the Schedule.
The Exchange also proposes to
introduce a Premium Tier for electronic
transactions in certain Penny Pilot
Issues. Electronic executions in options
overlying SPY, C, BAC, QQQQ, AAPL,
IWM, XLF, GLD, EEM, GE, UNG, FAZ,
DIA, GDX, and USO will qualify for the
Premium Tier, and will receive an
additional $.05 per contract credit above
the stated Post Liquidity credit. This is
consistent with similar billing treatment
of select symbols currently in place at
Nasdaq OMX PHLX.5
NYSE Arca also proposes to introduce
Tiered Pricing for certain high monthly
volume levels in non-Premium Tier
Penny Pilot issues. This new tiered
pricing structure will replace the
current Market Maker Post Liquidity
Incentive Credit that provided Market
Makers with an additional $0.01 credit
44 17
1 15
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3 15
4 17
PO 00000
U.S.C. 78s(b)(3)(A)(ii).
CFR 240.19b–4(f)(2).
Frm 00089
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5 See Nasdaq OMX PHLX Fee Schedule dated
March 26, 2010.
E:\FR\FM\19APN1.SGM
19APN1
20414
Federal Register / Vol. 75, No. 74 / Monday, April 19, 2010 / Notices
for posting liquidity of greater than
1,000,000 executed contracts per month
and $0.05 for posting liquidity greater
than 5,000,000 executed contracts per
month. The Exchange also proposes to
delete the accompanying footnote eight
in its entirety. For each Electronic
Transaction contract in these issues
above 999,999 contracts per month up
to 1,999,999 per month, the Customer
Take Fee will be reduced by $0.05 per
contract, and the Market Maker Credit
will be increased by $0.05 per contract.
For each Electronic Transaction contract
in these issues above 1,999,999
contracts per month up to 2,999,999 per
month, the Customer Take Fee will be
reduced by a total of $0.10 per contract,
and the Market Maker Credit will be
increased by $0.10 per contract. For
each Electronic Transaction contract in
these issues above 2,999,999 contracts
per month, the Customer Take Fee will
be reduced by a total of $0.15 per
contract, and the Market Maker Credit
will be increased by $0.15 per contract.
Limit of Fees on Strategy Executions
wwoods2 on DSK1DXX6B1PROD with NOTICES_PART 1
In addition, NYSE Arca also proposes
to make permanent the pilot program for
a cap on transaction fees for Strategy
Executions associated with (a) Reversals
and conversions, (b) dividend spreads,
(c) box spreads, (d) short stock interest
spreads, (e) merger spreads, and (f) jelly
rolls. The Strategy Fee Cap pilot
program expired on March 1, 2010.
Under the program, transactions fees
were capped at $750 per transaction,
and, in addition, such transaction fees
for these strategies are further capped at
$25,000 per month per initiating firm.
This proposal is consistent with the
Nasdaq OMX PHLX filing to make
permanent a similar Strategy fee cap
pilot program.6 The Exchange proposes
to make the pilot permanent, effective
upon filing of this proposed rule
change.
The Exchange also proposes, effective
April 1, 2010, that Manual Broker
Dealer and Firm Strategy Trades that do
not reach the $750 cap be billed at a rate
of $0.25 per contract. Further, the
Exchange proposes to clarify that FLEX
Option executions are not considered
Strategy executions.
Report Fees
Finally, the Exchange proposes to
reduce the fee for User Activity extracts
from $0.0075 per trade to $0.002 per
trade, plus development and set-up
costs.
The changes are part of the
Exchange’s continued effort to attract
and enhance participation on the NYSE
Arca options marketplace. The
Exchange believes these proposed fee
changes are reasonable and equitable in
that they apply uniformly to all
similarly situated participants on the
NYSE Arca options marketplace.
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’’),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. The
proposed changes to the Schedule are
part of the Exchange’s continued effort
to attract and enhance participation on
the Exchange, by offering attractive rates
for removing liquidity and rebates for
providing liquidity to the Exchange. The
proposed changes to the Schedule are
equitable in that they apply uniformly
to all similarly situated OTP Holders.
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) 9 of the Act and
subparagraph (f)(2) of Rule 19b–4 10
thereunder, because it establishes a due,
fee, or other charge imposed by NYSE
Arca on its members.
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,
7 15
6 See
Securities Exchange Act Release No. 59566
(March 12, 2009), 74 FR 11793 (March 19, 2009)
(SR–PHLX–2009–18).
VerDate Nov<24>2008
15:04 Apr 16, 2010
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U.S.C. 78f(b).
U.S.C. 78f(b)(4).
9 15 U.S.C. 78s(b)(3)(A).
10 17 CFR 240.19b–4(f)(2).
8 15
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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–NYSEArca–2010–24 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, Station Place, 100 F Street,
NE., Washington, DC 20549–1090.
All submissions should refer to File
Number SR–NYSEArca–2010–24. 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
publicly available. All submissions
should refer to File Number SR–
NYSEArca–2010–24 and should be
submitted on or before May 10, 2010.
11 17
E:\FR\FM\19APN1.SGM
CFR 200.30–3(a)(12).
19APN1
Federal Register / Vol. 75, No. 74 / Monday, April 19, 2010 / Notices
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–8948 Filed 4–16–10; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–61887; File No. SR–
NASDAQ–2010–041]
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Make
Conforming Changes to Certain
Notification Requirements
April 12, 2010.
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 March 26,
2010, The NASDAQ Stock Market LLC
(‘‘Nasdaq’’) filed with the Securities and
Exchange Commission (‘‘Commission’’)
the proposed rule change as described
in Items I and II below, which Items
have been prepared by Nasdaq. Nasdaq
has designated the proposed rule change
as effecting a change described under
Rule 19b–4(f)(6) under the Act,3 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.
wwoods2 on DSK1DXX6B1PROD with NOTICES_PART 1
I. Self-Regulatory Organization’s
Statement of the Terms of the Substance
of the Proposed Rule Change
Nasdaq proposes to modify the Listing
Rules to make conforming changes to
certain notification requirements.
The text of the proposed rule change
is below. Proposed new language is in
italic; proposed deletions are in
[brackets].4
5250. Obligations for Companies Listed
on The Nasdaq Stock Market
(a) No change.
(b) Obligation to Make Public
Disclosure
(1) No change.
(2) As set forth in Rule 5810(b), a
Company that receives a notification of
deficiency from Nasdaq is required to
make a public announcement by filing
a Form 8–K, where required by SEC
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 17 CFR 240.19b–4(f)(6).
4 Changes are marked to the rule text that appears
in the electronic manual of Nasdaq found at
https://nasdaq.cchwallstreet.com.
2 17
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15:04 Apr 16, 2010
Jkt 220001
rules, or by issuing a press release
disclosing receipt of the notification and
the Rule(s) upon which the deficiency is
based. However, note that in the case of
a deficiency related to the requirement
to file a periodic report contained in
Rule 5250(c)(1) or (2), the Company is
required to make the public
announcement by issuing a press
release. As described in Rule 5250(b)(1)
and IM–5250–1, [notice to the] the
Company must notify Nasdaq’s
MarketWatch Department [must be
made] about the announcement through
the electronic disclosure submission
system available at www.nasdaq.net,
except in emergency situations when
notification may instead be provided by
telephone or facsimile. If the public
announcement is made during Nasdaq
market hours, the Company must notify
MarketWatch at least ten minutes prior
to the [public] announcement. If the
public announcement is made outside
of Nasdaq market hours, the Company
must notify MarketWatch of the
announcement prior to 6:50 a.m. ET.
(c)–(f) No change.
*
*
*
*
*
5810. Notification of Deficiency by the
Listing Qualifications Department
When the Listing Qualifications
Department determines that a Company
does not meet a listing standard set forth
in the Rule 5000 Series, it will
immediately notify the Company of the
deficiency. As explained in more detail
below, deficiency notifications are of
four types:
(1)–(4) No change.
Notifications of deficiencies that
allow for submission of a compliance
plan or an automatic cure or compliance
period may result, after review of the
compliance plan or expiration of the
cure or compliance period, in issuance
of a Staff Delisting Determination or a
Public Reprimand Letter.
(a) No change.
(b) Company Disclosure Obligations
A Company that receives a
notification of deficiency, Staff Delisting
Determination, or Public Reprimand
Letter is required to make a public
announcement disclosing receipt of the
notification and the Rule(s) upon which
the deficiency is based. A Company that
receives a notification of deficiency or
Staff Delisting Determination related to
the requirement to file a periodic report
contained in Rule 5250(c)(1) or (2) is
required to make the public
announcement by issuing a press release
disclosing receipt of the notification and
the Rule(s) upon which the deficiency is
based, in addition to filing any Form 8–
K required by SEC rules. In all other
cases, the Company may make the
PO 00000
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20415
public announcement either by filing a
Form 8–K, where required by SEC rules,
or by issuing a press release. [Before
release of the public announcement,
Companies must provide a copy of the
announcement to Nasdaq’s
MarketWatch Department.] As described
in Rule 5250(b)(1) and IM–5250–1,
[notice to the] the Company must notify
Nasdaq’s MarketWatch Department
[must be made] about the
announcement through the electronic
disclosure submission system available
at www.nasdaq.net, except in
emergency situations when notification
may instead be provided by telephone
or facsimile. If the public announcement
is made during Nasdaq market hours,
the Company must notify MarketWatch
at least ten minutes prior to the [public]
announcement. If the public
announcement is made outside of
Nasdaq market hours, the Company
must notify MarketWatch of the
announcement prior to 6:50 a.m. ET.
The Company should make the public
announcement as promptly as possible
but not more than four business days
following receipt of the notification.
(c)–(d) No change.
*
*
*
*
*
5840. Adjudicatory Process: General
Information
(a)–(j) No change.
(k) Disclosure of Public Reprimand
Letter
A Company that receives an
Adjudicatory Body Decision that serves
as a Public Reprimand Letter must make
a public announcement by filing a Form
8–K, where required by SEC rules, or by
issuing a press release disclosing the
receipt of the Decision, including the
Rule(s) upon which the Decision was
based. [Prior to the release of the public
announcement, the Company must
provide such disclosure to Nasdaq’s
MarketWatch Department.] As described
in Rule 5250(b)(1) and IM–5250–1,
[notice to the] the Company must notify
Nasdaq’s MarketWatch Department
[must be made] about the
announcement through the electronic
disclosure submission system available
at www.nasdaq.net, except in
emergency situations when notification
may instead be provided by telephone
or facsimile. If the public announcement
is made during Nasdaq market hours,
the Company must notify MarketWatch
at least ten minutes prior to the [public]
announcement. If the public
announcement is made outside of
Nasdaq market hours, the Company
must notify MarketWatch of the
announcement prior to 6:50 a.m. ET.
The Company should make the public
announcement [should be made] as
E:\FR\FM\19APN1.SGM
19APN1
Agencies
[Federal Register Volume 75, Number 74 (Monday, April 19, 2010)]
[Notices]
[Pages 20413-20415]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-8948]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-61894; File No. SR-NYSEArca-2010-24]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of a Proposed Rule Change, as Modified by
Amendment No. 1, Amending Its Fee Schedule
April 13, 2010.
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 April 1, 2010, NYSE Arca, Inc. (``NYSE Arca'' or ``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. On April 9, 2010, NYSE Arca
filed Amendment No. 1 to this filing. NYSE Arca has designated this
proposal as one establishing or changing a member due, fee, or other
charge imposed 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 amend its Schedule of Fees and Charges for
Exchange Services (the ``Schedule''). While changes to the Schedule
pursuant to this proposal will be effective upon filing, the changes
will become operative on April 1, 2010. The amended section of the
Schedule is included as Exhibit 5 hereto. A copy of this filing is
available on the Exchange's Web site at https://www.nyse.com, at the
Exchange's principal office, at the Commission's Public Reference Room,
and on the Commission's Web site at https://www.sec.gov.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the self-regulatory organization
included statements concerning the purpose of, and basis for, the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of those statements may be examined at
the places specified in Item IV below. The Exchange has prepared
summaries, set forth in sections A, B, and C below, of the most
significant parts of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange is proposing changes to certain fees to improve
competitiveness and encourage participation and liquidity by Customer,
Firms, Broker Dealers, and Market Makers.
Lead Market Maker Rights Fee
Presently, the Exchange charges Lead Market Makers (``LMMs'') a
monthly rights fee for each appointed issue. Effective April 1, 2010,
the Exchange will reduce the rights fee by 50% in each tier as shown
below.
------------------------------------------------------------------------
Average national daily customer
contracts per issue Monthly base rate
------------------------------------------------------------------------
0 to 2,000............................. [$150] $75
2,001 to 5,000......................... [$400] $200
5,001 to 15,000........................ [$750] $375
15,001 to 100,000...................... [$1,500] $750
Over 100,000........................... [$3,000] $1,500
------------------------------------------------------------------------
Transaction Fee Changes
The Exchange proposes to restructure certain trade related charges
for non-electronic trades. These trades are executed in the Firm range
(clearance account ``F'') and are currently billed either the Firm
Facilitation rate or the Broker Dealer & Firm rate. Under the current
rate schedule trades by a firm that facilitate a customer, or Firm
Facilitation trades, are subject to a $0.00 rate per contract. Firm
transactions not facilitating a customer are subject to a $0.25 Broker/
Dealer & Firm Manual rate. Under the revised rate schedule all manual
trades clearing in the Firm range will be subject to a rate of $0.18
per contract and further capped at $2,000 per issue per day, per
trading participant. Firm Proprietary electronic trades will continue
to be charged $0.50 per contract in non-Penny Pilot issues, $0.45 per
contract for taking liquidity in Penny Pilot issues, and receive a
credit of $0.25 per contract for posting liquidity in Penny Pilot
issues, consistent with the current rates, but now a separate line in
the Schedule.
The Exchange also proposes to introduce a Premium Tier for
electronic transactions in certain Penny Pilot Issues. Electronic
executions in options overlying SPY, C, BAC, QQQQ, AAPL, IWM, XLF, GLD,
EEM, GE, UNG, FAZ, DIA, GDX, and USO will qualify for the Premium Tier,
and will receive an additional $.05 per contract credit above the
stated Post Liquidity credit. This is consistent with similar billing
treatment of select symbols currently in place at Nasdaq OMX PHLX.\5\
---------------------------------------------------------------------------
\5\ See Nasdaq OMX PHLX Fee Schedule dated March 26, 2010.
---------------------------------------------------------------------------
NYSE Arca also proposes to introduce Tiered Pricing for certain
high monthly volume levels in non-Premium Tier Penny Pilot issues. This
new tiered pricing structure will replace the current Market Maker Post
Liquidity Incentive Credit that provided Market Makers with an
additional $0.01 credit
[[Page 20414]]
for posting liquidity of greater than 1,000,000 executed contracts per
month and $0.05 for posting liquidity greater than 5,000,000 executed
contracts per month. The Exchange also proposes to delete the
accompanying footnote eight in its entirety. For each Electronic
Transaction contract in these issues above 999,999 contracts per month
up to 1,999,999 per month, the Customer Take Fee will be reduced by
$0.05 per contract, and the Market Maker Credit will be increased by
$0.05 per contract. For each Electronic Transaction contract in these
issues above 1,999,999 contracts per month up to 2,999,999 per month,
the Customer Take Fee will be reduced by a total of $0.10 per contract,
and the Market Maker Credit will be increased by $0.10 per contract.
For each Electronic Transaction contract in these issues above
2,999,999 contracts per month, the Customer Take Fee will be reduced by
a total of $0.15 per contract, and the Market Maker Credit will be
increased by $0.15 per contract.
Limit of Fees on Strategy Executions
In addition, NYSE Arca also proposes to make permanent the pilot
program for a cap on transaction fees for Strategy Executions
associated with (a) Reversals and conversions, (b) dividend spreads,
(c) box spreads, (d) short stock interest spreads, (e) merger spreads,
and (f) jelly rolls. The Strategy Fee Cap pilot program expired on
March 1, 2010. Under the program, transactions fees were capped at $750
per transaction, and, in addition, such transaction fees for these
strategies are further capped at $25,000 per month per initiating firm.
This proposal is consistent with the Nasdaq OMX PHLX filing to make
permanent a similar Strategy fee cap pilot program.\6\ The Exchange
proposes to make the pilot permanent, effective upon filing of this
proposed rule change.
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\6\ See Securities Exchange Act Release No. 59566 (March 12,
2009), 74 FR 11793 (March 19, 2009) (SR-PHLX-2009-18).
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The Exchange also proposes, effective April 1, 2010, that Manual
Broker Dealer and Firm Strategy Trades that do not reach the $750 cap
be billed at a rate of $0.25 per contract. Further, the Exchange
proposes to clarify that FLEX Option executions are not considered
Strategy executions.
Report Fees
Finally, the Exchange proposes to reduce the fee for User Activity
extracts from $0.0075 per trade to $0.002 per trade, plus development
and set-up costs.
The changes are part of the Exchange's continued effort to attract
and enhance participation on the NYSE Arca options marketplace. The
Exchange believes these proposed fee changes are reasonable and
equitable in that they apply uniformly to all similarly situated
participants on the NYSE Arca options marketplace.
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''),\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. The proposed changes to
the Schedule are part of the Exchange's continued effort to attract and
enhance participation on the Exchange, by offering attractive rates for
removing liquidity and rebates for providing liquidity to the Exchange.
The proposed changes to the Schedule are equitable in that they apply
uniformly to all similarly situated OTP Holders.
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\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the 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) \9\ of the Act and subparagraph (f)(2) of Rule 19b-
4 \10\ thereunder, because it establishes a due, fee, or other charge
imposed by NYSE Arca on its members.
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\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 17 CFR 240.19b-4(f)(2).
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At any time within 60 days of the filing of the proposed rule
change, the Commission may summarily abrogate such rule change if it
appears to the Commission that such action is necessary or appropriate
in the public interest, for the protection of investors, or otherwise
in furtherance of the purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-NYSEArca-2010-24 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, Station Place, 100 F Street, NE., Washington,
DC 20549-1090.
All submissions should refer to File Number SR-NYSEArca-2010-24. 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
publicly available. All submissions should refer to File Number SR-
NYSEArca-2010-24 and should be submitted on or before May 10, 2010.
[[Page 20415]]
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
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\11\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-8948 Filed 4-16-10; 8:45 am]
BILLING CODE 8011-01-P