Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Making Permanent the Pilot Program That Offers Liquidity Takers a Reduced Transaction Fee Structure for Certain Bond Trades Executed on the NYSE Bonds System, 81701-81702 [2010-32622]

Download as PDF Federal Register / Vol. 75, No. 248 / Tuesday, December 28, 2010 / Notices Shares prior to or concurrently with the confirmation of a transaction; and (6) trading information. In addition, the Bulletin will reference that the Funds are subject to various fees and expenses described in the Registration Statement. The Bulletin will discuss any exemptive, no-action, and interpretive relief granted by the Commission from any rules under the Exchange Act. The Bulletin will also disclose that the NAV for the Shares will be calculated after 4 p.m. Eastern Time each trading day. 2. Statutory Basis The basis under the Exchange Act for this proposed rule change is the requirement under Section 6(b)(5) 18 that an exchange have rules that are designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to remove impediments to, and perfect the mechanism of a free and open market and, in general, to protect investors and the public interest. The Exchange believes that the proposed rule change will facilitate the listing and trading of an additional type of actively managed exchange-traded product that will enhance competition among market participants, to the benefit of investors and the marketplace. 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. emcdonald on DSK2BSOYB1PROD with NOTICES III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Within 45 days of the date of publication of this notice in the Federal Register or within such longer period up to 90 days (i) as the Commission may designate 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 or disapprove the proposed rule change, or 18 15 U.S.C. 78f(b)(5). VerDate Mar<15>2010 22:37 Dec 27, 2010 Jkt 223001 (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–2010–118 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. 81701 For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.19 Florence E. Harmon, Deputy Secretary. [FR Doc. 2010–32608 Filed 12–27–10; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–63593; File No. SR–NYSE– 2010–83] Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Making Permanent the Pilot Program That Offers Liquidity Takers a Reduced Transaction Fee Structure for Certain Bond Trades Executed on the NYSE Bonds System December 21, 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, on December 16, 2010, the New York Stock Exchange All submissions should refer to File Number SR–NYSEArca–2010–118. This LLC (‘‘NYSE’’ or the ‘‘Exchange’’) filed with the Securities and Exchange file number should be included on the subject line if e-mail is used. To help the Commission (the ‘‘Commission’’) the proposed rule change as described in Commission process and review your Items I and II below, which Items have comments more efficiently, please use only one method. The Commission will been prepared by the Exchange. The post all comments on the Commission’s Commission is publishing this notice to solicit comments on the proposed rule Internet Web site (https://www.sec.gov/ change from interested persons. rules/sro.shtml). Copies of the submission, all subsequent I. Self-Regulatory Organization’s amendments, all written statements Statement of the Terms of Substance of with respect to the proposed rule the Proposed Rule Change change that are filed with the The Exchange proposes to make Commission, and all written permanent the pilot program that offers communications relating to the liquidity takers a reduced transaction proposed rule change between the Commission and any person, other than fee structure for certain bond trades executed on the NYSE Bonds SM system those that may be withheld from the (‘‘NYSE Bonds’’). The text of the public in accordance with the proposed rule change is available at the provisions of 5 U.S.C. 552, will be Exchange’s principal office, https:// available for Web site viewing and www.nyse.com, the Commission’s printing in the Commission’s Public Public Reference Room, and on the Reference Room, 100 F Street, NE., Commission’s Web site at https:// Washington, DC 20549, on official www.sec.gov. business days between the hours of 10 a.m. and 3 p.m. Copies of such filing II. Self-Regulatory Organization’s also will be available for inspection and Statement of the Purpose of, and copying at the principal office of the Statutory Basis for, the Proposed Rule Exchange. All comments received will Change be posted without change; the In its filing with the Commission, the Commission does not edit personal self-regulatory organization included identifying information from statements concerning the purpose of, submissions. You should submit only and basis for, the proposed rule change information that you wish to make and discussed any comments it received publicly available. All submissions should refer to File Number SR– 19 17 CFR 200.30–3(a)(12). NYSEArca–2010–118 and should be 1 15 U.S.C. 78s(b)(1). submitted on or before January 18, 2011. 2 17 CFR 240.19b–4. PO 00000 Frm 00142 Fmt 4703 Sfmt 4703 E:\FR\FM\28DEN1.SGM 28DEN1 81702 Federal Register / Vol. 75, No. 248 / Tuesday, December 28, 2010 / Notices 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 emcdonald on DSK2BSOYB1PROD with NOTICES 1. Purpose The Exchange proposes to make permanent the pilot program that offers liquidity takers a reduced transaction fee structure for certain bond trades executed on the NYSE Bonds SM system (‘‘NYSE Bonds’’). The pilot program commenced in January 2008 3 and has been extended several times since that time.4 It is scheduled to expire on December 31, 2010. The pilot program reduces transaction fees charged to liquidity takers for transactions executed on NYSE Bonds with a staggered transaction fee schedule based on the number of bonds purchased or sold in excess of ten (10) bonds. When the liquidity taker purchases or sells from one to ten (10) bonds, the Exchange will charge an execution fee of $0.50 per bond; when the liquidity taker purchases or sells from eleven (11) to twenty five (25) bonds, the Exchange will charge an execution fee of $0.20 per bond, and when the liquidity taker purchases or sells twenty six (26) bonds or more, the Exchange charges an execution fee of $0.10 per bond. The Exchange imposes a $100 execution fee cap per transaction. For example, if a liquidity taker purchases or sells five (5) bonds, the Exchange charges $.50 per bond, or a total of $2.50 for execution fees. If a liquidity taker purchases or sells twenty (20) bonds, the Exchange charges $.20 per bond or a total of $4.00 for execution fees. If a liquidity taker purchases or sells thirty (30) bonds, the Exchange charges $.10 per bond or a total of $3.00 for execution fees. The bond liquidity taker fee schedule has been in place for nearly two years and the Exchange believe that it is an equitable allocation of fees for users of the NYSE bond platform. As such, the 3 See Securities Exchange Act Release No. 57176 (January 18, 2008), 73 FR 4929 (January 28, 2008) (SR–NYSE–2008–04). 4 See Securities Exchange Act Release Nos. 57823 (May 15, 2008), 73 FR 29804 (May 22, 2008) (SR– NYSE–2008–38), 59178 (December 30, 2008), 74 FR 748 (January 7, 2009) (SR–NYSE–2008–137), 61201 (December 18, 2009), 74 FR 68651 (December 28, 2009) (SR–NYSE–2009–127), 62455 (July 6, 2010), 75 FR 40004 (July 13, 2010) (SR–NYSE–2010–51). VerDate Mar<15>2010 22:37 Dec 27, 2010 Jkt 223001 Exchange believes that it is appropriate at this time to adopt the fee schedule on a permanent, rather than a pilot, basis. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with the provisions of Section 6 5 of the Securities Exchange Act of 1934 (the ‘‘Act’’) 6 in general and Section 6(b)(4) of the Act 7 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. 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 has become effective pursuant to Section 19(b)(3)(A) of the Act 8 and paragraph (f)(2) of Rule 19b–4 thereunder,9 because it establishes a due, fee, or other charge imposed by the NYSE. 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. If the Commission takes such action, the Commission shall institute proceedings to determine whether the proposed rule should be approved or 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–NYSE–2010–83 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–2010–83. 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 website 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–NYSE– 2010–83 and should be submitted on or before January 18, 2011. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.10 Florence E. Harmon, Deputy Secretary. 5 15 [FR Doc. 2010–32622 Filed 12–27–10; 8:45 am] 6 15 BILLING CODE 8011–01–P U.S.C. 78f. U.S.C. 78a. 7 15 U.S.C. 78f(b)(4). 8 15 U.S.C. 78s(b)(3)(A). 9 17 CFR 240.19b–4(f)(2). PO 00000 Frm 00143 Fmt 4703 10 17 Sfmt 9990 E:\FR\FM\28DEN1.SGM CFR 200.30–3(a)(12). 28DEN1

Agencies

[Federal Register Volume 75, Number 248 (Tuesday, December 28, 2010)]
[Notices]
[Pages 81701-81702]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-32622]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-63593; File No. SR-NYSE-2010-83]


Self-Regulatory Organizations; New York Stock Exchange LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
Making Permanent the Pilot Program That Offers Liquidity Takers a 
Reduced Transaction Fee Structure for Certain Bond Trades Executed on 
the NYSE Bonds System

December 21, 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, on December 16, 2010, the New York Stock Exchange LLC (``NYSE'' 
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 make permanent the pilot program that 
offers liquidity takers a reduced transaction fee structure for certain 
bond trades executed on the NYSE Bonds \SM\ system (``NYSE Bonds''). 
The text of the proposed rule change is available at the Exchange's 
principal office, https://www.nyse.com, the Commission's Public 
Reference Room, and on the Commission's Web site at https://www.sec.gov.

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

    In its filing with the Commission, the self-regulatory organization 
included statements concerning the purpose of, and basis for, the 
proposed rule change and discussed any comments it received on the 
proposed rule change. The text of those statements may be examined at 
the places specified in Item IV below. The Exchange has prepared 
summaries, set forth in sections A, B, and C below, of the most 
significant parts of such statements.

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

1. Purpose
    The Exchange proposes to make permanent the pilot program that 
offers liquidity takers a reduced transaction fee structure for certain 
bond trades executed on the NYSE Bonds \SM\ system (``NYSE Bonds''). 
The pilot program commenced in January 2008 \3\ and has been extended 
several times since that time.\4\ It is scheduled to expire on December 
31, 2010.
---------------------------------------------------------------------------

    \3\ See Securities Exchange Act Release No. 57176 (January 18, 
2008), 73 FR 4929 (January 28, 2008) (SR-NYSE-2008-04).
    \4\ See Securities Exchange Act Release Nos. 57823 (May 15, 
2008), 73 FR 29804 (May 22, 2008) (SR-NYSE-2008-38), 59178 (December 
30, 2008), 74 FR 748 (January 7, 2009) (SR-NYSE-2008-137), 61201 
(December 18, 2009), 74 FR 68651 (December 28, 2009) (SR-NYSE-2009-
127), 62455 (July 6, 2010), 75 FR 40004 (July 13, 2010) (SR-NYSE-
2010-51).

---------------------------------------------------------------------------

[[Page 81702]]

    The pilot program reduces transaction fees charged to liquidity 
takers for transactions executed on NYSE Bonds with a staggered 
transaction fee schedule based on the number of bonds purchased or sold 
in excess of ten (10) bonds. When the liquidity taker purchases or 
sells from one to ten (10) bonds, the Exchange will charge an execution 
fee of $0.50 per bond; when the liquidity taker purchases or sells from 
eleven (11) to twenty five (25) bonds, the Exchange will charge an 
execution fee of $0.20 per bond, and when the liquidity taker purchases 
or sells twenty six (26) bonds or more, the Exchange charges an 
execution fee of $0.10 per bond. The Exchange imposes a $100 execution 
fee cap per transaction.
    For example, if a liquidity taker purchases or sells five (5) 
bonds, the Exchange charges $.50 per bond, or a total of $2.50 for 
execution fees. If a liquidity taker purchases or sells twenty (20) 
bonds, the Exchange charges $.20 per bond or a total of $4.00 for 
execution fees. If a liquidity taker purchases or sells thirty (30) 
bonds, the Exchange charges $.10 per bond or a total of $3.00 for 
execution fees.
    The bond liquidity taker fee schedule has been in place for nearly 
two years and the Exchange believe that it is an equitable allocation 
of fees for users of the NYSE bond platform. As such, the Exchange 
believes that it is appropriate at this time to adopt the fee schedule 
on a permanent, rather than a pilot, basis.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the provisions of Section 6 \5\ of the Securities Exchange Act of 
1934 (the ``Act'') \6\ in general and Section 6(b)(4) of the Act \7\ 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.
---------------------------------------------------------------------------

    \5\ 15 U.S.C. 78f.
    \6\ 15 U.S.C. 78a.
    \7\ 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 has become effective pursuant to Section 
19(b)(3)(A) of the Act \8\ and paragraph (f)(2) of Rule 19b-4 
thereunder,\9\ because it establishes a due, fee, or other charge 
imposed by the NYSE.
---------------------------------------------------------------------------

    \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. If the Commission 
takes such action, the Commission shall institute proceedings to 
determine whether the proposed rule should be approved or 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-NYSE-2010-83 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-2010-83. 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 website 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-NYSE-2010-83 and should be 
submitted on or before January 18, 2011.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
---------------------------------------------------------------------------

    \10\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-32622 Filed 12-27-10; 8:45 am]
BILLING CODE 8011-01-P
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