Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Exchange Price List, 27848-27850 [2010-11809]
Download as PDF
<![CDATA[
27848
Federal Register / Vol. 75, No. 95 / Tuesday, May 18, 2010 / Notices
the Exchange than such market centers
currently charge for removing liquidity
(referred to by the Exchange as ‘‘One
Under’’ pricing). Based on changes in
pricing at NYSE, BATS is proposing a
change to its price for BATS + NYSE
Destination Specific Orders to align its
fees so they are $0.0001 less per share
for orders routed to NYSE. Specifically,
the Exchange proposes to increase the
fee charged for BATS + NYSE
Destination Specific Orders executed at
NYSE from $0.0017 to $0.0020 per
share. This change will result in the
Exchange charging $0.0001 less per
share for orders routed to NYSE as
Destination Specific Orders.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the requirements of the Act and the
rules and regulations thereunder that
are applicable to a national securities
exchange, and, in particular, with the
requirements of Section 6 of the Act.6
Specifically, the Exchange believes that
the proposed rule change is consistent
with Section 6(b)(4) of the Act,7 in that
it provides for the equitable allocation
of reasonable dues, fees and other
charges among members and other
persons using any facility or system
which the Exchange operates or
controls. The Exchange notes that it
operates in a highly competitive market
in which market participants can
readily direct order flow to competing
venues if they deem fee levels at a
particular venue to be excessive. The
Exchange believes that its fees and
credits are competitive with those
charged by other venues. Finally, the
Exchange believes that the proposed
rates are equitable in that they apply
uniformly to all Members.
(B) Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change imposes any
burden on competition.
mstockstill on DSKH9S0YB1PROD with NOTICES
(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.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing proposed rule change
has been designated as a fee change
pursuant to Section 19(b)(3)(A)(ii) of the
6 15
7 15
U.S.C. 78f.
U.S.C. 78f(b)(4).
VerDate Mar<15>2010
17:22 May 17, 2010
Act 8 and Rule 19b–4(f)(2) thereunder,9
because it establishes or changes a due,
fee or other charge imposed on members
by the Exchange. Accordingly, the
proposal is effective upon filing with
the Commission.
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 proposal 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
No. SR–BATS–2010–012 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 No.
SR–BATS–2010–012. 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
8 15
9 17
Jkt 220001
PO 00000
U.S.C. 78s(b)(3)(A)(ii).
CFR 240.19b–4(f)(2).
Frm 00148
Fmt 4703
Sfmt 4703
a.m. and 3 p.m. Copies of such filing
will also 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 No. SR–BATS–
2010–012 and should be submitted on
or before June 8, 2010.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2010–11807 Filed 5–17–10; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–62082; File No. SR–NYSE–
2010–34]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Amend the
Exchange Price List
May 11, 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 April 30,
2010, New York Stock Exchange LLC
(the ‘‘NYSE’’ or the ‘‘Exchange’’) filed
with the Securities and Exchange
Commission (the ‘‘Commission’’) the
proposed rule change as described in
Items I, II and III below, which Items
have been prepared by the Exchange.4
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 amend
certain of the fees and credits set forth
in its 2010 Price List. The amended
pricing will take effect on May 1, 2010.
10 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 15 U.S.C. 78a et seq.
3 17 CFR 240.19b–4.
4 See Email from John Carey, Chief Counsel, U.S.
Equities, NYSE Euronext, to David Liu, Assistant
Director, Nathan Saunders, Special Counsel, and
Daniel Gien, Attorney, Division of Trading and
Markets, Commission, dated May 6, 2010 (clarifying
the language of note 6 below and making other
minor technical changes to conform the description
of the changes to the text of the proposed rule text).
1 15
E:\FR\FM\18MYN1.SGM
18MYN1
Federal Register / Vol. 75, No. 95 / Tuesday, May 18, 2010 / Notices
The text of the proposed rule change is
available on the Exchange’s Web site
(https://www.nyse.com), on the
Commission’s Web site at https://
www.sec.gov, at the Exchange’s Office of
the Secretary, 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 NYSE 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
mstockstill on DSKH9S0YB1PROD with NOTICES
1. Purpose
The Exchange proposes to make the
following changes to its 2010 Price List
with effect from May 1, 2010:
• The rebate paid for executions in
which the customer adds liquidity to
the Exchange will increase from $0.0010
to $0.0013 per share.
• The rebate paid for executions of
orders sent to the floor broker for
representation on the NYSE when
adding liquidity to the Exchange will
increase from $0.0012 to $0.0015 per
share.
• The equity per share charge when
taking liquidity from the Exchange will
increase from $0.0018 to $0.0021 per
share.
• The equity per share charge
(charged to both sides) for all odd lot
transactions (including odd lot portions
of partial round lots) will increase from
$0.0018 to $0.0021 per share. A parallel
change will be made to the odd lot
transaction charges for securities with a
per share trading price less than $1.00,
which will now be subject to a fee equal
to the lesser of (i) 0.3% of the
transaction value or (ii) $0.0021 per
share.
• Currently, the Exchange charges
$0.0006 per share for all market at-theclose (‘‘MOC’’) and limit at-the-close
(‘‘LOC’’) orders for all executions of
orders from any member organization
executing an average daily trading
volume (‘‘ADV’’) on the NYSE in that
month of at least 130 million shares,
including (i) adding liquidity in an ADV
VerDate Mar<15>2010
17:22 May 17, 2010
Jkt 220001
of at least 30 million shares and (ii) an
ADV of at least 15 million shares total
in MOC and LOC orders. The Exchange
is eliminating this separate pricing tier
and will now charge $0.0007 per share
for all MOC and LOC transactions,
which is the price currently charged for
all such transactions that do not qualify
for the $0.0006 per share tier described
in the previous sentence. A parallel
change will be made to the transaction
charges for MOC and LOC orders in
securities with a per share stock price
less than $1.00. All such transactions
will now be subject to a fee equal to the
lesser of (i) 0.3% of the transaction
value or (ii) $0.0007 per share.
• Currently, the Exchange charges
$0.0017 per share for executions of
orders from any member organization
executing an average daily trading
volume (‘‘ADV’’) on the NYSE in that
month of at least 130 million shares,
including (i) adding liquidity in an ADV
of at least 30 million shares and (ii) an
ADV of at least 15 million shares total
in MOC and LOC orders. The Exchange
is eliminating this separate pricing tier
and will now charge the regular
transaction fee for these transactions
that applies to executions taking
liquidity from the Exchange. Therefore,
all transactions taking liquidity from the
NYSE in securities with a per share
stock price of $1.00 or more will be
subject to a fee of $0.0021 per share and
all such transactions in securities with
a per share stock price less than $1.00
will be subject to a fee equal to the
lesser of (i) 0.3% of the transaction
value or (ii) $0.0021 per share.5
• The equity per share charge for
designated market makers (‘‘DMMs’’) for
transactions taking liquidity from the
NYSE will be increased from $0.0010
per share to $0.0013 per share.
• The Exchange is modifying its
schedule of liquidity rebates for
supplemental liquidity providers
(‘‘SLPs’’).6 SLPs will receive a credit of
5 Some superfluous language is also removed
from this entry in the Price List and the same
language is removed from the entry specifying the
fee paid by DMMs when taking liquidity.
6 The Exchange currently has a three tier structure
of rebates paid only to SLPs when the SLP provides
liquidity to the NYSE and meets the requirements
to benefit for the specific tier. The highest tier pays
a credit of $0.0017 per share to SLPs when they add
liquidity to the NYSE in securities with a per share
price of $1.00 or more, and the SLP (i) meets the
Quoting Requirement and (ii) adds liquidity of an
ADV of more than 250 million shares in the
applicable month. The second-highest tier pays a
credit of $0.0016 per share to SLPs and applies to
SLPs when they add liquidity to the NYSE in
securities with a per share price of $1.00 or more,
and the SLP (i) meets the Quoting Requirement and
(ii) adds liquidity of an ADV of more than 100
million shares in the applicable month. The thirdhighest tier pays a credit of $0.0015 per share to
SLPs and applies to SLPs when they add liquidity
PO 00000
Frm 00149
Fmt 4703
Sfmt 4703
27849
$0.0020 per share when they add
liquidity to the NYSE in securities with
a per share price of $1.00 or more, and
the SLP (i) meets the 3% average or
more quoting requirement in an
assigned security pursuant to Rule 107B
(the ‘‘Quoting Requirement’’) and (ii)
adds liquidity of an ADV of more than
10 million shares in the applicable
month. For all other transactions adding
liquidity to the NYSE, SLPs will receive
a rebate of $0.0013 per share.
• SLPs currently receive a rebate of
$0.0005 per share for executions of
securities with a per share price of $1.00
or more at the close. This rebate will no
longer be paid, although these
transactions will continue to be free of
charge.
• The Exchange is instituting a new
$0.0001 per share fee for executions in
Crossing Session II. This fee will be
subject to a $50,000 per month cap per
member organization.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the objectives of Section 6 7 of the Act
in general and furthers the objectives of
Section 6(b)(4)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
Exchange believes that the proposal
does not constitute an inequitable
allocation of dues, fees and other
charges, as all similarly situated
member organizations will be charged
the same schedule of fees and be
entitled to receive the same rebates.
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 purpose of the Act.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
Written comments were neither
solicited nor received.
to the NYSE in securities with a per share price of
$1.00 or more, and the SLP (i) meets the Quoting
Requirement and (ii) adds liquidity of an ADV of
more than 10 million shares in the applicable
month. SLPs adding liquidity in securities with a
per share price of $1.00 or more, if the SLP does
not qualify for any of the foregoing rebates, receive
the same rebates as other market participants.
7 15 U.S.C. 78f.
8 15 U.S.C. 78f(b)(4).
E:\FR\FM\18MYN1.SGM
18MYN1
27850
Federal Register / Vol. 75, No. 95 / Tuesday, May 18, 2010 / Notices
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 Rule 19b–
4(f)(2) 10 thereunder. 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, as amended, is consistent with
the Act. Comments may be submitted by
any of the following methods:
mstockstill on DSKH9S0YB1PROD with NOTICES
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send e-mail to rule-comments@
Please include File Number SR–NYSE–
2010–34 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–2010–34. 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–
2010–34 and should be submitted on or
before June 8, 2010.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2010–11809 Filed 5–17–10; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–62083; File No. SR–CBOE–
2010–038]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing of a
Proposed Rule Change, as Modified by
Amendment No. 1 Thereto, Related to
the Hybrid Matching Algorithms
May 12, 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 April 22,
2010, the Chicago Board Options
Exchange, Incorporated (the ‘‘Exchange’’
or ‘‘CBOE’’) filed with the Securities and
Exchange Commission (the
‘‘Commission’’) the proposed rule
change as described in Items I, II, and
III below, which Items have been
prepared by the Exchange. On May 6,
2010, CBOE filed Amendment No. 1 to
the proposed rule change. The
Commission is publishing this notice, as
amended, 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 amend
Rules 6.45A, Priority and Allocation of
Equity Option Trades on the CBOE
Hybrid System, and 6.45B, Priority and
Allocation of Trades in Index Options
and Options on ETFs on the CBOE
Hybrid System, to revise its market
turner and modified participation
entitlement priority overlays. The text of
11 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
9 15
U.S.C. 78s(b)(3)(A).
10 17 CFR 240.19b–4(f)(2).
VerDate Mar<15>2010
17:22 May 17, 2010
1 15
Jkt 220001
PO 00000
Frm 00150
Fmt 4703
Sfmt 4703
the proposed rule change is available on
the Exchange’s Web site (https://www.
cboe.org/Legal), at the Office of the
Secretary, CBOE and at the Commission.
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 the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
Background
CBOE Rules 6.45A and 6.45B set
forth, among other things, the manner in
which incoming electronic orders in
options are allocated on the Hybrid
System. Paragraph (a) of each rule
currently provides a ‘‘menu’’ of
allocation algorithms to choose from
when executing incoming electronic
orders. The menu format allows the
Exchange to utilize different allocation
algorithms on a class-by-class basis. The
menu includes, among other choices,
the Ultimate Matching Algorithm
(‘‘UMA’’),3 and price-time and pro-rata
priority allocation algorithms.
Additional priority overlays can be
applied to the base allocation
algorithms. The price-time and pro-rata
priority overlays currently include:
public customer priority for public
customer orders resting on the Hybrid
System, participation entitlements for
certain qualifying market-makers 4 (the
3 Under the UMA algorithm, public customer
orders in the electronic book have first priority to
trade against incoming electronic orders, then the
Market-Maker participation entitlement has second
priority. Thereafter, any remaining balance of the
incoming order, if any, is allocated among other
market participants based on a weighting of the
number of market participants quoting at the best
bid or offer (Component A) and the percentage that
the size of each market participant’s quote is at the
best bid or offer relative to the total number of
contracts at the disseminated quote (Component B).
See Rules 6.45A(a)(i)(B)(2) and 6.45B(a)(ii)(B)(2) for
a more detailed description of UMA.
4 Under the original participation entitlement, the
Exchange may determine to grant Market-Makers
participation entitlements pursuant to the
provisions of Rules 8.87, Participation Entitlement
of DPMs and e-DPMs, 8.13, Preferred Market-Maker
Program, or 8.15B, Participation Entitlement of
E:\FR\FM\18MYN1.SGM
18MYN1
]]>Agencies
[Federal Register Volume 75, Number 95 (Tuesday, May 18, 2010)]
[Notices]
[Pages 27848-27850]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-11809]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-62082; File No. SR-NYSE-2010-34]
Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Amend the Exchange Price List
May 11, 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 April 30, 2010, New York Stock Exchange LLC (the ``NYSE''
or the ``Exchange'') filed with the Securities and Exchange Commission
(the ``Commission'') the proposed rule change as described in Items I,
II and III below, which Items have been prepared by the Exchange.\4\
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 et seq.
\3\ 17 CFR 240.19b-4.
\4\ See Email from John Carey, Chief Counsel, U.S. Equities,
NYSE Euronext, to David Liu, Assistant Director, Nathan Saunders,
Special Counsel, and Daniel Gien, Attorney, Division of Trading and
Markets, Commission, dated May 6, 2010 (clarifying the language of
note 6 below and making other minor technical changes to conform the
description of the changes to the text of the proposed rule text).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend certain of the fees and credits set
forth in its 2010 Price List. The amended pricing will take effect on
May 1, 2010.
[[Page 27849]]
The text of the proposed rule change is available on the Exchange's Web
site (https://www.nyse.com), on the Commission's Web site at https://www.sec.gov, at the Exchange's Office of the Secretary, 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 NYSE has prepared summaries,
set forth in Sections A, B and C below, of the most significant aspects
of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to make the following changes to its 2010
Price List with effect from May 1, 2010:
The rebate paid for executions in which the customer adds
liquidity to the Exchange will increase from $0.0010 to $0.0013 per
share.
The rebate paid for executions of orders sent to the floor
broker for representation on the NYSE when adding liquidity to the
Exchange will increase from $0.0012 to $0.0015 per share.
The equity per share charge when taking liquidity from the
Exchange will increase from $0.0018 to $0.0021 per share.
The equity per share charge (charged to both sides) for
all odd lot transactions (including odd lot portions of partial round
lots) will increase from $0.0018 to $0.0021 per share. A parallel
change will be made to the odd lot transaction charges for securities
with a per share trading price less than $1.00, which will now be
subject to a fee equal to the lesser of (i) 0.3% of the transaction
value or (ii) $0.0021 per share.
Currently, the Exchange charges $0.0006 per share for all
market at-the-close (``MOC'') and limit at-the-close (``LOC'') orders
for all executions of orders from any member organization executing an
average daily trading volume (``ADV'') on the NYSE in that month of at
least 130 million shares, including (i) adding liquidity in an ADV of
at least 30 million shares and (ii) an ADV of at least 15 million
shares total in MOC and LOC orders. The Exchange is eliminating this
separate pricing tier and will now charge $0.0007 per share for all MOC
and LOC transactions, which is the price currently charged for all such
transactions that do not qualify for the $0.0006 per share tier
described in the previous sentence. A parallel change will be made to
the transaction charges for MOC and LOC orders in securities with a per
share stock price less than $1.00. All such transactions will now be
subject to a fee equal to the lesser of (i) 0.3% of the transaction
value or (ii) $0.0007 per share.
Currently, the Exchange charges $0.0017 per share for
executions of orders from any member organization executing an average
daily trading volume (``ADV'') on the NYSE in that month of at least
130 million shares, including (i) adding liquidity in an ADV of at
least 30 million shares and (ii) an ADV of at least 15 million shares
total in MOC and LOC orders. The Exchange is eliminating this separate
pricing tier and will now charge the regular transaction fee for these
transactions that applies to executions taking liquidity from the
Exchange. Therefore, all transactions taking liquidity from the NYSE in
securities with a per share stock price of $1.00 or more will be
subject to a fee of $0.0021 per share and all such transactions in
securities with a per share stock price less than $1.00 will be subject
to a fee equal to the lesser of (i) 0.3% of the transaction value or
(ii) $0.0021 per share.\5\
---------------------------------------------------------------------------
\5\ Some superfluous language is also removed from this entry in
the Price List and the same language is removed from the entry
specifying the fee paid by DMMs when taking liquidity.
---------------------------------------------------------------------------
The equity per share charge for designated market makers
(``DMMs'') for transactions taking liquidity from the NYSE will be
increased from $0.0010 per share to $0.0013 per share.
The Exchange is modifying its schedule of liquidity
rebates for supplemental liquidity providers (``SLPs'').\6\ SLPs will
receive a credit of $0.0020 per share when they add liquidity to the
NYSE in securities with a per share price of $1.00 or more, and the SLP
(i) meets the 3% average or more quoting requirement in an assigned
security pursuant to Rule 107B (the ``Quoting Requirement'') and (ii)
adds liquidity of an ADV of more than 10 million shares in the
applicable month. For all other transactions adding liquidity to the
NYSE, SLPs will receive a rebate of $0.0013 per share.
---------------------------------------------------------------------------
\6\ The Exchange currently has a three tier structure of rebates
paid only to SLPs when the SLP provides liquidity to the NYSE and
meets the requirements to benefit for the specific tier. The highest
tier pays a credit of $0.0017 per share to SLPs when they add
liquidity to the NYSE in securities with a per share price of $1.00
or more, and the SLP (i) meets the Quoting Requirement and (ii) adds
liquidity of an ADV of more than 250 million shares in the
applicable month. The second-highest tier pays a credit of $0.0016
per share to SLPs and applies to SLPs when they add liquidity to the
NYSE in securities with a per share price of $1.00 or more, and the
SLP (i) meets the Quoting Requirement and (ii) adds liquidity of an
ADV of more than 100 million shares in the applicable month. The
third-highest tier pays a credit of $0.0015 per share to SLPs and
applies to SLPs when they add liquidity to the NYSE in securities
with a per share price of $1.00 or more, and the SLP (i) meets the
Quoting Requirement and (ii) adds liquidity of an ADV of more than
10 million shares in the applicable month. SLPs adding liquidity in
securities with a per share price of $1.00 or more, if the SLP does
not qualify for any of the foregoing rebates, receive the same
rebates as other market participants.
---------------------------------------------------------------------------
SLPs currently receive a rebate of $0.0005 per share for
executions of securities with a per share price of $1.00 or more at the
close. This rebate will no longer be paid, although these transactions
will continue to be free of charge.
The Exchange is instituting a new $0.0001 per share fee
for executions in Crossing Session II. This fee will be subject to a
$50,000 per month cap per member organization.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the objectives of Section 6 \7\ of the Act in general and furthers
the objectives of Section 6(b)(4)\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 Exchange believes that the proposal does not constitute
an inequitable allocation of dues, fees and other charges, as all
similarly situated member organizations will be charged the same
schedule of fees and be entitled to receive the same rebates.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78f.
\8\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purpose of the Act.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants or Others
Written comments were neither solicited nor received.
[[Page 27850]]
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 Rule 19b-4(f)(2) \10\
thereunder. At any time within 60 days of the filing of the proposed
rule change, the Commission may summarily abrogate such rule change if
it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
IV. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposed rule
change, as amended, is consistent with the Act. Comments may be
submitted by any of the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send e-mail to rule-comments@ Please include File Number
SR-NYSE-2010-34 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-2010-34. 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-2010-34 and should be
submitted on or before June 8, 2010.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
---------------------------------------------------------------------------
\11\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2010-11809 Filed 5-17-10; 8:45 am]
BILLING CODE 8010-01-P
