Self-Regulatory Organizations; Notice of Filing of Proposed Rule Change by NYSE Arca, Inc. Relating to the Guaranteed Allocation for Lead Market Makers and Directed Order Market Makers, 37516-37517 [2010-15746]

Download as PDF 37516 Federal Register / Vol. 75, No. 124 / Tuesday, June 29, 2010 / Notices Electronic Comments applicants are not unnecessarily burdened by duplicative oversight procedures. 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 Exchange has filed the proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act 8 and Rule 19b–4(f)(6) thereunder.9 Because the proposed rule change does not: (i) Significantly affect the protection of investors or the public interest; (ii) impose any significant burden on competition; and (iii) become operative prior to 30 days from the date on which it was filed, or such shorter time as the Commission may designate if consistent with the protection of investors and the public interest, the proposed rule change has become effective pursuant to Section 19(b)(3)(A) of the Act 10 and Rule 19b–4(f)(6)(iii) thereunder.11 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: 8 15 U.S.C. 78s(b)(3)(A)(iii). CFR 240.19b–4(f)(6). 10 15 U.S.C. 78s(b)(3)(A). 11 17 CFR 240.19b–4(f)(6)(iii). In addition, Rule 19b–4(f)(6)(iii) requires a self-regulatory organization to provide the Commission with written notice of its intent to file the proposed rule change, along with a brief description and text of the proposed rule change, at least five business days prior to the date of filing of the proposed rule change, or such shorter time as designated by the Commission. The Exchange has fulfilled this requirement. emcdonald on DSK2BSOYB1PROD with NOTICES4 9 17 VerDate Mar<15>2010 19:55 Jun 28, 2010 Jkt 220001 • 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–2010–45 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. SECURITIES AND EXCHANGE COMMISSION [Release No. 34–62328; File No. SR– NYSEArca–2010–48] Self-Regulatory Organizations; Notice of Filing of Proposed Rule Change by NYSE Arca, Inc. Relating to the Guaranteed Allocation for Lead Market Makers and Directed Order Market Makers June 21, 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 June 8, All submissions should refer to File 2010, NYSE Arca, Inc. (‘‘NYSE Arca’’ or Number SR–NYSEArca–2010–45. This the ‘‘Exchange’’) filed with the Securities file number should be included on the subject line if e-mail is used. To help the and Exchange Commission (the ‘‘Commission’’) the proposed rule Commission process and review your change as described in Items I, II, and comments more efficiently, please use III below, which Items have been only one method. The Commission will prepared by the self-regulatory post all comments on the Commission’s organization. The Commission is Internet Web site (https://www.sec.gov/ publishing this notice to solicit rules/sro.shtml). Copies of the comments on the proposed rule change submission, all subsequent from interested persons. amendments, all written statements I. Self-Regulatory Organization’s with respect to the proposed rule Statement of the Terms of Substance of change that are filed with the the Proposed Rule Change Commission, and all written communications relating to the The Exchange proposes to amend proposed rule change between the Rule 6.76A, Order Execution—OX, to Commission and any person, other than eliminate guaranteed allocations in those that may be withheld from the certain circumstances. The text of the public in accordance with the proposed rule change is available on the provisions of 5 U.S.C. 552, will be Exchange’s Web site at https:// available for Web site viewing and www.nyse.com, on the Commission’s printing in the Commission’s Public Web site at https://www.sec.gov, at the Reference Room, 100 F Street, NE., Exchange, and at the Commission’s Public Reference Room. A copy of this Washington, DC 20549, on official filing is available on the Exchange’s business days between the hours of 10 a.m. and 3 p.m. Copies of the filing also Web site at https://www.nyse.com, at the Exchange’s principal office and at the will be available for inspection and Commission’s Public Reference Room. copying at the principal office of the Exchange. All comments received will II. Self-Regulatory Organization’s be posted without change; the Statement of the Purpose of, and Commission does not edit personal Statutory Basis for, the Proposed Rule identifying information from Change submissions. You should submit only In its filing with the Commission, the information that you wish to make self-regulatory organization included available publicly. All submissions statements concerning the purpose of, should refer to File Number SR– and basis for, the proposed rule change NYSEArca–2010–45 and should be and discussed any comments it received submitted on or before July 20, 2010. on the proposed rule change. The text For the Commission, by the Division of of those statements may be examined at Trading and Markets, pursuant to delegated the places specified in Item IV below. authority.12 The Exchange has prepared summaries, Florence E. Harmon, set forth in sections A, B, and C below, of the most significant parts of such Deputy Secretary. statements. [FR Doc. 2010–15748 Filed 6–28–10; 8:45 am] BILLING CODE 8010–01–P 1 15 U.S.C.78s(b)(1). U.S.C. 78a. 3 17 CFR 240.19b–4. 2 15 12 17 PO 00000 CFR 200.30–3(a)(12). Frm 00142 Fmt 4703 Sfmt 4703 E:\FR\FM\29JNN1.SGM 29JNN1 Federal Register / Vol. 75, No. 124 / Tuesday, June 29, 2010 / Notices A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change emcdonald on DSK2BSOYB1PROD with NOTICES4 1. Purpose The purpose of this filing is to eliminate the guaranteed allocation for Lead Market Makers (‘‘LMM’’s) and Directed Order Market Makers (‘‘DOMM’’s) under certain circumstances. Currently, under Rule 6.76A, a LMM (or DOMM) will receive a guaranteed allocation of 40% of an incoming marketable order, including 40% of the balance of an order after any customer orders ranked ahead of the LMM (or DOMM) are filled, provided the LMM (or DOMM) is quoting at the National Best Bid/Offer (‘‘NBBO’’). The Exchange proposes to amend Rule 6.76A to provide that LMMs (or DOMMs) will only receive the 40% guaranteed allocation if there are no resting Customer orders ranked ahead of the LMM (or DOMM). At the time of the introduction of the OX system, the market structure rewarded LMMs for providing competitive quotes by giving them a 40% guarantee ahead of higher ranked non-Customers when Customer orders were ahead of the LMM in time ranking. This encouraged the LMM to join the customer price and augment the customer price with the LMM’s added size. As market participants have evolved, however, the Exchange has found that the guarantee after satisfying Customer trading interest ahead of the LMM in priority has discouraged other noncustomer trading interests that wish to aggressively price orders to set the NBBO. NYSE Arca clients have submitted orders that set a new price, only to find themselves receiving a small portion of an incoming order after it fills Customers and 40% of the balance is allocated to the LMM. The Exchange still views as necessary granting the LMM (or DOMM) 40% of incoming orders when no Customer orders are present, in return for the enhanced quoting obligations of LMMs and DOMMs. 2. Statutory Basis The Exchange believes the proposed rule change is consistent with Section 6(b) 4 of the Securities Exchange Act of 1934 (the ‘‘Act’’), in general, and furthers the objectives of Section 6(b)(5) 5 in particular in that it is designed to promote just and equitable principles of 4 15 5 15 19:55 Jun 28, 2010 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 Within 35 days of the date of publication of this notice in the Federal Register or within such longer period (i) as the Commission may designate up to 90 days of such date if it finds such longer period to be appropriate and publishes its reasons for so finding or (ii) as to which the self-regulatory organization consents, the Commission will: (A) By order approve the proposed rule change, or (B) Institute proceedings to determine whether the proposed rule change should be disapproved. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the 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–2010–48 on the subject line. Paper Comments • Send paper comments in triplicate to Elizabeth M. Murphy, Secretary, U.S.C. 78f(b). U.S.C. 78f(b)(5). VerDate Mar<15>2010 trade, to prevent fraudulent and manipulative acts, to remove impediments to and to perfect the mechanism for a free and open market and a national market system and, in general, to protect investors and the public interest. The Exchange believes that eliminating the LMM or DOMM 40% guarantee when Customers are ahead in the Consolidated Book will enhance competition amongst nonCustomers. Jkt 220001 PO 00000 Frm 00143 Fmt 4703 Sfmt 4703 37517 Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549–1090. All submissions should refer to File Number SR–NYSEArca–2010–48. 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 the filing will also be available for inspection and copying at the Exchange’s principal office. 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–2010–48 and should be submitted on or before July 20, 2010. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.6 Florence E. Harmon, Deputy Secretary. [FR Doc. 2010–15746 Filed 6–28–10; 8:45 am] BILLING CODE 8010–01–P SOCIAL SECURITY ADMINISTRATION Agency Information Collection Activities: Proposed Request The Social Security Administration (SSA) publishes a list of information collection packages requiring clearance by the Office of Management and Budget (OMB) in compliance with Public Law (Pub. L.) 104–13, the Paperwork Reduction Act of 1995, effective October 1, 1995. This notice includes extensions of OMB-approved information collections. 6 17 E:\FR\FM\29JNN1.SGM CFR 200.30–3(a)(12). 29JNN1

Agencies

[Federal Register Volume 75, Number 124 (Tuesday, June 29, 2010)]
[Notices]
[Pages 37516-37517]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-15746]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-62328; File No. SR-NYSEArca-2010-48]


 Self-Regulatory Organizations; Notice of Filing of Proposed Rule 
Change by NYSE Arca, Inc. Relating to the Guaranteed Allocation for 
Lead Market Makers and Directed Order Market Makers

June 21, 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 June 8, 2010, NYSE Arca, Inc. (``NYSE Arca'' 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. 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.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend Rule 6.76A, Order Execution--OX, to 
eliminate guaranteed allocations in certain circumstances. The text of 
the proposed rule change is available on the Exchange's Web site at 
https://www.nyse.com, on the Commission's Web site at https://www.sec.gov, at the Exchange, and at the Commission's Public Reference 
Room. 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 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.

[[Page 37517]]

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The purpose of this filing is to eliminate the guaranteed 
allocation for Lead Market Makers (``LMM''s) and Directed Order Market 
Makers (``DOMM''s) under certain circumstances.
    Currently, under Rule 6.76A, a LMM (or DOMM) will receive a 
guaranteed allocation of 40% of an incoming marketable order, including 
40% of the balance of an order after any customer orders ranked ahead 
of the LMM (or DOMM) are filled, provided the LMM (or DOMM) is quoting 
at the National Best Bid/Offer (``NBBO'').
    The Exchange proposes to amend Rule 6.76A to provide that LMMs (or 
DOMMs) will only receive the 40% guaranteed allocation if there are no 
resting Customer orders ranked ahead of the LMM (or DOMM).
    At the time of the introduction of the OX system, the market 
structure rewarded LMMs for providing competitive quotes by giving them 
a 40% guarantee ahead of higher ranked non-Customers when Customer 
orders were ahead of the LMM in time ranking. This encouraged the LMM 
to join the customer price and augment the customer price with the 
LMM's added size.
    As market participants have evolved, however, the Exchange has 
found that the guarantee after satisfying Customer trading interest 
ahead of the LMM in priority has discouraged other non-customer trading 
interests that wish to aggressively price orders to set the NBBO. NYSE 
Arca clients have submitted orders that set a new price, only to find 
themselves receiving a small portion of an incoming order after it 
fills Customers and 40% of the balance is allocated to the LMM.
    The Exchange still views as necessary granting the LMM (or DOMM) 
40% of incoming orders when no Customer orders are present, in return 
for the enhanced quoting obligations of LMMs and DOMMs.
2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with 
Section 6(b) \4\ of the Securities Exchange Act of 1934 (the ``Act''), 
in general, and furthers the objectives of Section 6(b)(5) \5\ in 
particular in that it is designed to promote just and equitable 
principles of trade, to prevent fraudulent and manipulative acts, to 
remove impediments to and to perfect the mechanism for a free and open 
market and a national market system and, in general, to protect 
investors and the public interest. The Exchange believes that 
eliminating the LMM or DOMM 40% guarantee when Customers are ahead in 
the Consolidated Book will enhance competition amongst non-Customers.
---------------------------------------------------------------------------

    \4\ 15 U.S.C. 78f(b).
    \5\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition that is not necessary or appropriate 
in furtherance of the purposes of the Act.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants or Others

    No written comments were solicited or received with respect to the 
proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Within 35 days of the date of publication of this notice in the 
Federal Register or within such longer period (i) as the Commission may 
designate up to 90 days of such date if it finds such longer period to 
be appropriate and publishes its reasons for so finding or (ii) as to 
which the self-regulatory organization consents, the Commission will:
    (A) By order approve the proposed rule change, or
    (B) Institute proceedings to determine whether the proposed rule 
change should be disapproved.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the 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-2010-48 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-NYSEArca-2010-48. 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 the filing will also be 
available for inspection and copying at the Exchange's principal 
office. 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-2010-48 and should be submitted on or before July 20, 2010.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\6\
---------------------------------------------------------------------------

    \6\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-15746 Filed 6-28-10; 8:45 am]
BILLING CODE 8010-01-P
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