Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by NYSE Amex LLC Amending its Fee Schedule, 50012-50013 [2010-20150]
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50012
Federal Register / Vol. 75, No. 157 / Monday, August 16, 2010 / Notices
should submit only information that
you wish to make available publicly. All
submissions should refer to File
Number SR–OCC–2010–11 and should
be submitted on or before September 7,
2010.
For the Commission by the Division of
Trading and Markets, pursuant to delegated
authority.12
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–20179 Filed 8–13–10; 8:45 am]
BILLING CODE 8010–01–P
[Release No. 34–62671; File No. SR–
NYSEAmex–2010–81]
Self-Regulatory Organizations; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change by NYSE
Amex LLC Amending its Fee Schedule
August 9, 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 August
4, 2010, NYSE Amex LLC. (‘‘NYSE
Amex’’ or the ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘SEC’’ or ‘‘Commission’’) the proposed
rule change as described in Items I and
II below, which Items have been
prepared by the Exchange. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
sroberts on DSKD5P82C1PROD with NOTICES
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to establish a
new participant category for purposes of
the fee schedule and to modify the fees
for Firm executions. The text of the
proposed rule change is attached as
Exhibit 5 to the 19b–4 form. A copy of
this filing is available on the Exchange’s
Web site at https://www.nyse.com, at the
Exchange’s principal office, on the
Commission’s Web site at https://
www.sec.gov, and at the Commission’s
Public Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
self-regulatory organization included
statements concerning the purpose of,
and basis for, the proposed rule change
12 17
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
18:51 Aug 13, 2010
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
SECURITIES AND EXCHANGE
COMMISSION
VerDate Mar<15>2010
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.
Jkt 220001
The Exchange is proposing to
establish a new participant category for
purposes of the fee schedule. Presently,
the Exchange makes no distinction
between Broker/Dealers who clear in the
customer range and Broker/Dealers who
clear in the market maker range. Broker/
Dealers who clear in the market maker
range are registered market makers at
other exchanges and accordingly will be
identified on the fee schedule as NonNYSE Amex Option Market Makers.3
The Exchange will assess Non-NYSE
Amex Option Market Makers a fee of
$.40 per contract for all electronic
executions. The fee for Non-NYSE
Amex Option Market Maker orders
executed manually will be $.25 per
contract. The Exchange notes that the
$.40 per contract rate is comparable to
or less than the rate charged by other
exchanges for transactions by market
makers who are registered as such in the
same options on another exchange.4
Presently the Exchange charges for
manual executions that clear in the Firm
range according to a tiered schedule. At
this time the Exchange intends to revert
back to the pricing that was in effect
previously for manual executions that
clear in the Firm range. The tiered
pricing will be replaced with a fixed per
contract fee of $0.25 for all manual
executions that clear in the Firm range.
Additionally, the Exchange intends to
no longer charge for any Firm
Facilitations, which are defined as
trades that clear in the Firm range
(clearance account ‘‘F’’) and customer on
the contra (clearance account ‘‘C’’) with
the same clearing Firm symbol on both
sides of the trade.
These changes are intended to be
effective immediately for all
transactions beginning August 4, 2010.
3 The term ‘‘Non-NYSE Amex Options Market
Maker’’ means a market maker as defined in Section
3(a)(38) of the Securities and Exchange Act of 1934
registered in the same option class on another
exchange.
4 See the ISE fee schedule dated July 1, 2010. The
ISE charges Non-ISE Market Makers a $.45 per
contract charge for electronic executions.
PO 00000
Frm 00127
Fmt 4703
Sfmt 4703
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the provisions of Section 6(b) of the
Act,5 in general, and Section 6(b)(4) of
the Act,6 in particular, in that it is
designed to provide for the equitable
allocation of reasonable dues, fees, and
other charges among its members and
other persons using its facilities. The
Exchange has determined, as part of an
ongoing review of its operations, that
the proposed changes to the fee
schedule are necessary in the interests
of better allocating the costs of operating
the Exchange in a fair and equitable
manner, taking into account that NYSE
Amex Options market makers incur
additional costs that Non-NYSE Amex
Options market makers who do
transactions here do not incur.
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) 7 of the Act and
subparagraph (f)(2) of Rule 19b–4 8
thereunder, because it establishes a due,
fee, or other charge imposed by NYSE
Amex.
At any time within 60 days of the
filing of the proposed rule change, the
Commission summarily may
temporarily suspend 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.
5 15
U.S.C. 78f(b).
U.S.C. 78f(b)(4).
7 15 U.S.C. 78s(b)(3)(A).
8 17 CFR 240.19b–4(f)(2).
6 15
E:\FR\FM\16AUN1.SGM
16AUN1
Federal Register / Vol. 75, No. 157 / Monday, August 16, 2010 / Notices
Comments may be submitted by any of
the following methods:
SECURITIES AND EXCHANGE
COMMISSION
Electronic Comments
[Release No. 34–62667; File No. SR–
NYSEAmex–2010–77]
• 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–2010–81 on
the subject line.
Self-Regulatory Organizations; NYSE
Amex, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Amending Rule 995NY
August 9, 2010.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934
(‘‘Act’’) 2 and Rule 19b–4 thereunder,3
• Send paper comments in triplicate
notice is hereby given that on August 2,
to Elizabeth M. Murphy, Secretary,
2010, NYSE Amex LLC (‘‘NYSE Amex’’
Securities and Exchange Commission,
or the ‘‘Exchange’’) filed with the
100 F Street, NE., Washington, DC
Securities and Exchange Commission
20549–1090.
(the ‘‘Commission’’) the proposed rule
All submissions should refer to File
change as described in Items I and II
Number SR–NYSEAmex–2010–81. This below, which Items have been prepared
file number should be included on the
by the self-regulatory organization.
subject line if e-mail is used. To help the NYSE Amex filed the proposed rule
Commission process and review your
change as a ‘‘non-controversial’’
comments more efficiently, please use
proposal pursuant to Section 19(b)(3)(A)
only one method. The Commission will of the Act 4 and Rule 19b–4(f)(6)
post all comments on the Commission’s thereunder,5 which renders the proposal
Internet Web site (https://www.sec.gov/
effective upon filing with the
rules/sro.shtml). Copies of the
Commission. The Commission is
submission, all subsequent
publishing this notice to solicit
amendments, all written statements
comments on the proposed rule change
with respect to the proposed rule
from interested persons.
change that are filed with the
I. Self-Regulatory Organization’s
Commission, and all written
Statement of the Terms of Substance of
communications relating to the
the Proposed Rule Change
proposed rule change between the
Commission and any person, other than
The Exchange proposes to amend
those that may be withheld from the
Rule 995NY–Prohibited Conduct, by
public in accordance with the
adding a provision that states that the
provisions of 5 U.S.C. 552, will be
practice of unbundling an order is
available for Web site viewing and
considered conduct inconsistent with
printing in the Commission’s Public
just and equitable principles of trade.
Reference Room, 100 F Street, NE.,
The text of the proposed rule change is
Washington, DC 20549, on official
available on the Exchange’s Web site at
business days between the hours of 10
https://www.nyse.com, on the
a.m. and 3 p.m. Copies of the filing also Commission’s Web site at https://
will be available for inspection and
www.sec.gov, at the Exchange, and at
copying at the principal office of the
the Commission’s Public Reference
Exchange. All comments received will
Room. A copy of this filing is available
be posted without change; the
on the Exchange’s Web site at https://
Commission does not edit personal
www.nyse.com, at the Exchange’s
identifying information from
principal office and at the Commission’s
submissions. You should submit only
Public Reference Room.
information that you wish to make
II. Self-Regulatory Organization’s
available publicly. All submissions
Statement of the Purpose of, and
should refer to File Number SR–
Statutory Basis for, the Proposed Rule
NYSEAmex–2010–81 and should be
Change
submitted on or before September 7,
2010.
In its filing with the Commission, the
self-regulatory organization included
For the Commission, by the Division of
statements concerning the purpose of,
Trading and Markets, pursuant to delegated
and basis for, the proposed rule change
authority.9
and discussed any comments it received
Florence E. Harmon,
sroberts on DSKD5P82C1PROD with NOTICES
Paper Comments
Deputy Secretary.
[FR Doc. 2010–20150 Filed 8–13–10; 8:45 am]
BILLING CODE 8010–01–P
9 17
CFR 200.30–3(a)(12).
VerDate Mar<15>2010
18:51 Aug 13, 2010
Jkt 220001
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)(6).
PO 00000
Frm 00128
Fmt 4703
Sfmt 4703
50013
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 purpose of the proposed rule
change is to amend Rule 995NY by
adding subsection (d) which will
expressly prohibit the splitting-up of an
order into smaller orders; a practice also
know as unbundling, or trade
shredding. More specifically, the
Exchange is proposing to add language
to its existing rules to prohibit NYSE
Amex Options Trading Permit Holders
(‘‘ATP Holders’’) from splitting orders
into multiple smaller orders for any
purpose other than best execution.
Unbundling, or trade shredding, is the
practice of breaking up an order into
multiple smaller orders for some
purpose other than best execution of the
order. The practice of unbundling has in
the past been used for such purposes as
improperly maximizing commissions
and fees charged to customers,
distorting trade data, or circumventing
rules pertaining to maximum order size.
In addition, the unbundling of a large
order into several smaller orders could
be done so as to affect the allocation of
a trade among market participants
pursuant to the allocation methodology
used by the Exchange.6 Finally, the
Exchange believes that the unbundling
of orders generally serves no purpose to
the customer that entered the order and
may cause unnecessary delays in the
execution of said orders.
Pursuant to NYSE Amex Rule
476(a)(6), ATP Holders must observe
high standards of commercial honor and
just and equitable principles of trade.
NYSE Amex would consider an ATP
Holder to have engaged in conduct
inconsistent with just and equitable
principles of trade were they to
unbundle an order which (1) Distorts
fees and/or commissions to the
detriment of a customer or the
Exchange, (2) causes an unnecessary
delay in the execution of an order, or (3)
circumvents an Exchange rule or federal
securities law, including those rules
6 For example, pursuant to NYSE Amex Options
Rule 964NY(b)(C)(iv), all orders of five contracts or
less are allocated to a Specialist Pool. If an ATP
Holder was to break up a large order into several
smaller orders of five contracts or less, the
Specialist Pool could unfairly garner a greater trade
allocation than it was otherwise entitled to.
E:\FR\FM\16AUN1.SGM
16AUN1
]]>Agencies
[Federal Register Volume 75, Number 157 (Monday, August 16, 2010)]
[Notices]
[Pages 50012-50013]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-20150]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-62671; File No. SR-NYSEAmex-2010-81]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by NYSE Amex LLC Amending its Fee
Schedule
August 9, 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 August 4, 2010, NYSE Amex LLC. (``NYSE Amex'' or the
``Exchange'') filed with the Securities and Exchange Commission
(``SEC'' or ``Commission'') the proposed rule change as described in
Items I and II below, which Items have been prepared by the Exchange.
The Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to establish a new participant category for
purposes of the fee schedule and to modify the fees for Firm
executions. The text of the proposed rule change is attached as Exhibit
5 to the 19b-4 form. A copy of this filing is available on the
Exchange's Web site at https://www.nyse.com, at the Exchange's principal
office, on the Commission's Web site at https://www.sec.gov, and at the
Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the self-regulatory organization
included 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 to establish a new participant category
for purposes of the fee schedule. Presently, the Exchange makes no
distinction between Broker/Dealers who clear in the customer range and
Broker/Dealers who clear in the market maker range. Broker/Dealers who
clear in the market maker range are registered market makers at other
exchanges and accordingly will be identified on the fee schedule as
Non-NYSE Amex Option Market Makers.\3\
---------------------------------------------------------------------------
\3\ The term ``Non-NYSE Amex Options Market Maker'' means a
market maker as defined in Section 3(a)(38) of the Securities and
Exchange Act of 1934 registered in the same option class on another
exchange.
---------------------------------------------------------------------------
The Exchange will assess Non-NYSE Amex Option Market Makers a fee
of $.40 per contract for all electronic executions. The fee for Non-
NYSE Amex Option Market Maker orders executed manually will be $.25 per
contract. The Exchange notes that the $.40 per contract rate is
comparable to or less than the rate charged by other exchanges for
transactions by market makers who are registered as such in the same
options on another exchange.\4\
---------------------------------------------------------------------------
\4\ See the ISE fee schedule dated July 1, 2010. The ISE charges
Non-ISE Market Makers a $.45 per contract charge for electronic
executions.
---------------------------------------------------------------------------
Presently the Exchange charges for manual executions that clear in
the Firm range according to a tiered schedule. At this time the
Exchange intends to revert back to the pricing that was in effect
previously for manual executions that clear in the Firm range. The
tiered pricing will be replaced with a fixed per contract fee of $0.25
for all manual executions that clear in the Firm range. Additionally,
the Exchange intends to no longer charge for any Firm Facilitations,
which are defined as trades that clear in the Firm range (clearance
account ``F'') and customer on the contra (clearance account ``C'')
with the same clearing Firm symbol on both sides of the trade.
These changes are intended to be effective immediately for all
transactions beginning August 4, 2010.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the provisions of Section 6(b) of the Act,\5\ in general, and
Section 6(b)(4) of the Act,\6\ in particular, in that it is designed to
provide for the equitable allocation of reasonable dues, fees, and
other charges among its members and other persons using its facilities.
The Exchange has determined, as part of an ongoing review of its
operations, that the proposed changes to the fee schedule are necessary
in the interests of better allocating the costs of operating the
Exchange in a fair and equitable manner, taking into account that NYSE
Amex Options market makers incur additional costs that Non-NYSE Amex
Options market makers who do transactions here do not incur.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78f(b).
\6\ 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 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) \7\ of the Act and subparagraph (f)(2) of Rule 19b-
4 \8\ thereunder, because it establishes a due, fee, or other charge
imposed by NYSE Amex.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78s(b)(3)(A).
\8\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend 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.
[[Page 50013]]
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-2010-81 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-2010-81. 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 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-2010-81 and should be submitted on or before September 7,
2010.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
---------------------------------------------------------------------------
\9\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-20150 Filed 8-13-10; 8:45 am]
BILLING CODE 8010-01-P
