Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by NYSE Arca, Inc. Amending Its Fee Schedule, 77928-77930 [2010-31289]
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srobinson on DSKHWCL6B1PROD with NOTICES
77928
Federal Register / Vol. 75, No. 239 / Tuesday, December 14, 2010 / Notices
markets have caused disruptions and/or
lack of trading; or (2) whether other
unusual conditions or circumstances
detrimental to the maintenance of a fair
and orderly market are present. In
addition, trading in Shares will be
subject to trading halts caused by
extraordinary market volatility pursuant
to the Exchange’s ‘‘circuit breaker’’
rule.13
Further, NYSE Arca Equities Rule
8.201 sets forth certain restrictions on
ETP Holders acting as registered Market
Makers in the Shares to facilitate
surveillance. Pursuant to NYSE Arca
Equities Rule 8.201(g), an ETP Holder
acting as a registered Market Maker in
the Shares is required to provide the
Exchange with information relating to
its trading in the applicable underlying
commodity, related commodity futures
or options on commodity futures, or any
other related commodity derivatives.
Commentary .04 of NYSE Arca Equities
Rule 6.3 requires an ETP Holder acting
as a registered Market Maker in
Commodity-Based Trust Shares to
establish, maintain and enforce written
policies and procedures reasonably
designed to prevent the misuse of any
material nonpublic information with
respect to such products, any
components of the related products, any
physical asset or commodity underlying
the product, applicable currencies,
underlying indexes, related futures or
options on futures, and any related
derivative instruments.
In support of this proposal, the
Exchange has made representations,
including the following:
(1) The Shares will be subject to the
initial and continued listing criteria
under NYSE Arca Equities Rule
8.201(e).
(2) The Exchange’s surveillance
procedures are adequate to properly
monitor Exchange trading of the Shares
in all trading sessions and to deter and
detect violations of Exchange rules and
applicable federal securities laws. In
addition, the Exchange may obtain
trading information via the Intermarket
Surveillance Group (‘‘ISG’’) from other
exchanges who are members of the ISG.
(3) Prior to the commencement of
trading, the Exchange will inform its
ETP Holders in an Information Bulletin
of the special characteristics and risks
associated with trading the Shares.
Specifically, the Information Bulletin
will discuss the following: (a) The
procedures for purchases and
redemptions of Shares in Baskets
(including noting that Shares are not
individually redeemable); (b) NYSE
Arca Equities Rule 9.2(a), which
13 See
NYSE Arca Equities Rule 7.12.
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17:09 Dec 13, 2010
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imposes a duty of due diligence on its
ETP Holders to learn the essential facts
relating to every customer prior to
trading the Shares; (c) how information
regarding the IIV is disseminated; (d)
the requirement that ETP Holders
deliver a prospectus to investors
purchasing newly issued Shares prior to
or concurrently with the confirmation of
a transaction; (d) the possibility that
trading spreads and the resulting
premium or discount on the Shares may
widen as a result of reduced liquidity of
gold trading during the Core and Late
Trading Sessions after the close of the
major world gold markets; and (e)
trading information. In addition, the
Information Bulletin will reference that
the Trust is subject to various fees and
expenses described in the Registration
Statement. The Information Bulletin
will also reference the fact that there is
no regulated source of last sale
information regarding physical gold,
that the Commission has no jurisdiction
over the trading of gold as a physical
commodity, and that the CFTC has
regulatory jurisdiction over the trading
of gold futures contracts and options on
gold futures contracts.
This approval order is based on the
Exchange’s representations.
The Commission finds good cause,
pursuant to Section 19(b)(2) of the
Act,14 for approving the proposed rule
change prior to the 45th day after
publication of notice in the Federal
Register. The Commission does not
believe that the Exchange’s proposal to
list and trade the Shares presents any
novel regulatory issues. The
Commission has previously approved
proposals by the Exchange to list and
trade shares of similar trusts that hold
gold bullion pursuant to NYSE Arca
Equities Rule 8.201.15 Additionally, the
Commission has previously approved
proposals to list and trade shares of
trusts that hold other commodities such
as platinum, palladium, and silver
pursuant to NYSE Arca Equities Rule
8.201.16
III. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,17 that the
proposed rule change (SR–NYSEArca–
2010–95) be, and it hereby is, approved
on an accelerated basis.
14 15
U.S.C. 78s(b)(2).
e.g., Securities Exchange Act Release No.
59895 (May 8, 2009), 74 FR 22993 (May 15, 2009)
(SR–NYSEArca–2009–40).
16 See Notice, supra note 4, 75 FR at 69495, nn.
5–11.
17 15 U.S.C.78s(b)(2).
15 See,
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Fmt 4703
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For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.18
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–31288 Filed 12–13–10; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–63471; File No. SR–
NYSEArca–2010–108]
Self-Regulatory Organizations; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change by NYSE
Arca, Inc. Amending Its Fee Schedule
December 8, 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 December
1, 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 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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend its
Fee Schedule (the ‘‘Schedule’’). While
changes to the Schedule pursuant to this
proposal will be effective on filing, the
changes will become operative on
December 1, 2010. The text of the
proposed rule change is available at the
Exchange’s principal office, on the
Commission’s Web site at https://
www.sec.gov, at the Commission’s
Public Reference Room, and the
Exchange’s Web site at
http:www.nyse.com.
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,
18 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
E:\FR\FM\14DEN1.SGM
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Federal Register / Vol. 75, No. 239 / Tuesday, December 14, 2010 / Notices
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 this filing is to amend
the Schedule to cap transaction fees for
Firm Proprietary trades executed in
open outcry (manual trades) at $75,000
per month. The proposed cap will
become operative on December 1, 2010.
The proposed fees will only apply to
OTP Holder transactions marked with
account origin code ‘‘F’’, and will not
include Royalty Fees, which are passthrough fees whose purpose is to cover
payments that must be made by the
Exchange without respect to any cap,
and Strategy Executions, which are
subject to a separate daily cap.
Execution of orders on behalf of Joint
Back Office (‘‘JBO’’) participants will not
be included in the monthly cap on fees
because the Exchange is unable to
differentiate orders of a JBO participant
from orders of its clearing broker-dealer,
and is therefore unable to aggregate the
JBO participant’s orders.3
The proposed fee cap is similar to a
monthly cap previously adopted by
NASDAQ OMX PHLX, Inc. (‘‘PHLX’’)
that is currently applicable to all firm
proprietary orders on that exchange, and
which also excludes orders of JBO
participants. In a rule filing last year,
PHLX increased that cap to $75,000 per
month per firm, which is the same level
as the Exchange’s proposed cap.4
The Exchange believes the proposed
cap on Firm transaction fees will help
attract participants to direct proprietary
orders for execution on the Trading
Floor of the Exchange.
srobinson on DSKHWCL6B1PROD with NOTICES
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’’),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
3 The proposed exclusion of JBO volumes from
the $75,000 cap is similar to the provision in
footnote 11 of the Chicago Board Options
Exchange’s rate schedule that excludes JBO
participants from participating in the benefits
associated with certain sliding scale rates.
4 See Securities Exchange Act Release No. 59393
(February 11, 2009), 74 FR 7721 (February 19, 2009)
(File No. SR–PHLX–2009–12).
5 15 U.S.C. 78f(b).
6 15 U.S.C. 78f(b)(4).
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17:09 Dec 13, 2010
Jkt 223001
other persons using its facilities. The
proposed change to the Schedule is part
of the Exchange’s continued effort to
attract and enhance participation on the
Exchange by offering competitive rates
for certain transactions on the Exchange.
The proposed changes to the Schedule
are equitable in that they apply
uniformly to all similarly situated OTP
Holders. The Exchange also believes
that the proposed monthly fee cap is
equitable, even though it is not available
to JBO participants, because the
Exchange intends to compete for nonJBO firm business with the CBOE,
which excludes JBO participants from
its sliding scale for the same reason as
the Exchange, which is that each is
unable to identify these orders from a
billing standpoint to bill them
correctly.7
In addition, the Exchange believes
that the proposed monthly fee cap,
which applies only to manual Firm
Proprietary trades, is not unfairly
discriminatory to other market
participants because its purpose is to
attract large block order flow to the floor
of the Exchange where such orders can
be better handled in comparison with
electronic orders that are not negotiable.
To the extent that this purpose is
achieved, all of the Exchange’s market
participants should benefit from the
improved market liquidity.
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) 8 of the Act and
subparagraph (f)(2) of Rule 19b–4 9
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 summarily may
7 See
supra note 4 [sic].
U.S.C. 78s(b)(3)(A).
9 17 CFR 240.19b–4(f)(2).
8 15
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77929
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.
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–2010–108 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–2010–108. 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–
E:\FR\FM\14DEN1.SGM
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77930
Federal Register / Vol. 75, No. 239 / Tuesday, December 14, 2010 / Notices
NYSEArca–2010–108 and should be
submitted on or before January 4, 2011.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–31289 Filed 12–13–10; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–63476; File No. SR–
NYSEARCA–2010–109]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Re-establishing and
Extending the Exchange’s Pilot
Program Relating to Cabinet Trades
Until June 1, 2011
December 8, 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 December
2, 2010, NYSE Arca, Inc. (‘‘Exchange’’ or
‘‘NYSE Arca’’) 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 the Exchange. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
srobinson on DSKHWCL6B1PROD with NOTICES
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to re-establish
and extend its program that allows
transactions to take place at a price that
is below $1 per option contract until
June 1, 2011. The text of the proposed
rule change is available at the Exchange,
the Commission’s Public Reference
Room, and https://www.nyse.com.
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,
10 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
VerDate Mar<15>2010
17:09 Dec 13, 2010
Jkt 223001
set forth in sections A, B, and C below,
of the most significant parts of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of this filing is to reestablish the Pilot Program 3 under Rule
6.80 to allow accommodation
transactions (‘‘Cabinet Trades’’) to take
place at a price that is below $1 per
option contract, and to extend the
program to June 1, 2011. The Exchange
proposes to extend the program to the
same date as The Chicago Board
Options Exchange (‘‘CBOE’’).4 The Pilot
Program expired on July 1, 2010.
An ‘‘accommodation’’ or ‘‘cabinet’’
trade refers to trades in listed options on
the Exchange that are worthless or not
actively traded. Cabinet trading is
generally conducted in accordance with
the Exchange Rules, except as provided
in Exchange Rule 6.80 Accommodation
Transactions (Cabinet Trades), which
sets forth specific procedures for
engaging in cabinet trades. Rule 6.80
currently provides for cabinet
transactions to occur via open outcry at
a cabinet price of a $1 per option
contract in any options series open for
trading in the Exchange, except that the
Rule is not applicable to trading in
option classes participating in the
Penny Pilot Program. Under the
procedures, bids and offers (whether
opening or closing a position) at a price
of $1 per option contract may be
represented in the trading crowd by a
Floor Broker or by a Market-Maker or
provided in response to a request by a
Trading Official, a Floor Broker or a
Market-Maker, but must yield priority to
all resting orders in the Cabinet (those
orders held by the Trading Official, and
which resting cabinet orders may be
closing only). So long as both the buyer
and the seller yield to orders resting in
the cabinet book, opening cabinet bids
can trade with opening cabinet offers at
$1 per option contract.
The Exchange temporarily amended
the procedures through July 1, 2010 to
allow transactions to take place in open
outcry at a price of at least $0 but less
than $1 per option contract. These lower
priced transactions were permitted to be
traded pursuant to the same procedures
applicable to $1 cabinet trades, except
3 See Securities Exchange Act Release No. 61727
(March 17, 2010), 75 FR 14217 (March 24, 2010)
(SR–NYSEArca–2010–13).
4 See Securities Exchange Act Release No. 62192
(May 28, 2010), 75 FR 31828 (June 4, 2010) (SR–
CBOE–2010–052).
PO 00000
Frm 00110
Fmt 4703
Sfmt 4703
that (i) bids and offers for opening
transactions were only permitted to
accommodate closing transactions in
order to limit use of the procedure to
liquidations of existing positions, and
(ii) the procedures were also made
available for trading in option classes
participating in the Penny Pilot
Program.5 The Exchange believed (and
continues to believe) that allowing a
price of at least $0 but less than $1
would better accommodate the closing
of options positions in series that were
worthless or not actively traded,
particularly due to recent market
conditions which had resulted in a
significant number of series being outof-the-money. For example, a market
participant might have a long position
in a call series with a strike price of
$100 and the underlying stock might be
trading at $30. In such an instance, there
might not otherwise be a market for that
person to close-out the position even at
the $1 cabinet price (e.g., the series
might be quoted no bid).
As with other accommodation
liquidations under Rule 6.80,
transactions that occur for less than $1
will not be disseminated to the public
on the consolidated tape. In addition, as
with other accommodation liquidations
under Rule 6.80, the transactions will be
exempt from the Consolidated Options
Audit Trail (‘‘COATS’’) requirements of
Exchange Rule 6.67 Order Format and
System Entry Requirements. However,
the Exchange will maintain quotation,
order and transaction information for
the transactions in the same format as
the COATS data is maintained. In this
regard, all transactions for less than $1
must be reported to the Exchange
following the close of each business
day.
The Pilot Program lapsed on July 1,
2010. The Exchange is proposing to
reinstate the Program at this time to be
in place for end-of-year liquidations.
During the period from July 1 to date,
no sub-penny cabinet trades were
executed on the Exchange.
2. Statutory Basis
The Exchange believes the proposed
rule change is consistent with Section
5 Currently the $1 cabinet trading procedures are
limited to options classes traded in $0.05 or $0.10
standard increment. The $1 cabinet trading
procedures are not available in Penny Pilot Program
classes because in those classes an option series can
trade in a standard increment as low as $0.01 per
share (or $1.00 per option contract with a 100 share
multiplier). Because the instant rule change would
allow trading below $0.01 per share (or $1.00 per
option contract with a 100 share multiplier), the
procedures would be made available for all classes,
including those classes participating in the Penny
Pilot Program.
E:\FR\FM\14DEN1.SGM
14DEN1
]]>Agencies
[Federal Register Volume 75, Number 239 (Tuesday, December 14, 2010)]
[Notices]
[Pages 77928-77930]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-31289]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-63471; File No. SR-NYSEArca-2010-108]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by NYSE Arca, Inc. Amending Its
Fee Schedule
December 8, 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 December 1, 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 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 amend its Fee Schedule (the ``Schedule'').
While changes to the Schedule pursuant to this proposal will be
effective on filing, the changes will become operative on December 1,
2010. The text of the proposed rule change is available at the
Exchange's principal office, on the Commission's Web site at https://www.sec.gov, at the Commission's Public Reference Room, and the
Exchange's Web site at http:www.nyse.com.
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,
[[Page 77929]]
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 this filing is to amend the Schedule to cap
transaction fees for Firm Proprietary trades executed in open outcry
(manual trades) at $75,000 per month. The proposed cap will become
operative on December 1, 2010.
The proposed fees will only apply to OTP Holder transactions marked
with account origin code ``F'', and will not include Royalty Fees,
which are pass-through fees whose purpose is to cover payments that
must be made by the Exchange without respect to any cap, and Strategy
Executions, which are subject to a separate daily cap. Execution of
orders on behalf of Joint Back Office (``JBO'') participants will not
be included in the monthly cap on fees because the Exchange is unable
to differentiate orders of a JBO participant from orders of its
clearing broker-dealer, and is therefore unable to aggregate the JBO
participant's orders.\3\
---------------------------------------------------------------------------
\3\ The proposed exclusion of JBO volumes from the $75,000 cap
is similar to the provision in footnote 11 of the Chicago Board
Options Exchange's rate schedule that excludes JBO participants from
participating in the benefits associated with certain sliding scale
rates.
---------------------------------------------------------------------------
The proposed fee cap is similar to a monthly cap previously adopted
by NASDAQ OMX PHLX, Inc. (``PHLX'') that is currently applicable to all
firm proprietary orders on that exchange, and which also excludes
orders of JBO participants. In a rule filing last year, PHLX increased
that cap to $75,000 per month per firm, which is the same level as the
Exchange's proposed cap.\4\
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release No. 59393 (February 11,
2009), 74 FR 7721 (February 19, 2009) (File No. SR-PHLX-2009-12).
---------------------------------------------------------------------------
The Exchange believes the proposed cap on Firm transaction fees
will help attract participants to direct proprietary orders for
execution on the Trading Floor of the Exchange.
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''),\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 proposed change to
the Schedule is part of the Exchange's continued effort to attract and
enhance participation on the Exchange by offering competitive rates for
certain transactions on the Exchange. The proposed changes to the
Schedule are equitable in that they apply uniformly to all similarly
situated OTP Holders. The Exchange also believes that the proposed
monthly fee cap is equitable, even though it is not available to JBO
participants, because the Exchange intends to compete for non-JBO firm
business with the CBOE, which excludes JBO participants from its
sliding scale for the same reason as the Exchange, which is that each
is unable to identify these orders from a billing standpoint to bill
them correctly.\7\
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78f(b).
\6\ 15 U.S.C. 78f(b)(4).
\7\ See supra note 4 [sic].
---------------------------------------------------------------------------
In addition, the Exchange believes that the proposed monthly fee
cap, which applies only to manual Firm Proprietary trades, is not
unfairly discriminatory to other market participants because its
purpose is to attract large block order flow to the floor of the
Exchange where such orders can be better handled in comparison with
electronic orders that are not negotiable. To the extent that this
purpose is achieved, all of the Exchange's market participants should
benefit from the improved market liquidity.
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) \8\ of the Act and subparagraph (f)(2) of Rule 19b-
4 \9\ thereunder, because it establishes a due, fee, or other charge
imposed by NYSE Arca on its members.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 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. 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-2010-108 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-2010-108. 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-
[[Page 77930]]
NYSEArca-2010-108 and should be submitted on or before January 4, 2011.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
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\10\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-31289 Filed 12-13-10; 8:45 am]
BILLING CODE 8011-01-P
