Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Extending the Operation of Its New Market Model Pilot Until the Earlier of Securities and Exchange Commission Approval To Make Such Pilot Permanent or August 1, 2011, 617-619 [2010-33258]
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<![CDATA[
Federal Register / Vol. 76, No. 3 / Wednesday, January 5, 2011 / Notices
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
SECURITIES AND EXCHANGE
COMMISSION
All submissions should refer to File
Number SR–BX–2010–092. 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 principal office of the
self-regulatory organization. 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–BX–2010–092 and should
be submitted on or before January 26,
2011.
[Release No. 34–63618; File No. SR–NYSE–
2010–85]
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.8
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–33257 Filed 1–4–11; 8:45 am]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change Extending the
Operation of Its New Market Model
Pilot Until the Earlier of Securities and
Exchange Commission Approval To
Make Such Pilot Permanent or August
1, 2011
December 29, 2010.
19(b)(1) 1
Pursuant to Section
of the
Securities Exchange Act of 1934 (the
‘‘Act’’) and Rule 19b–4 thereunder,2
notice is hereby given that on December
17, 2010, 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 self-regulatory
organization. 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 extend the
operation of its New Market Model
Pilot, currently scheduled to expire on
January 31, 2011, until the earlier of
Securities and Exchange Commission
(‘‘SEC’’ or ‘‘Commission’’) approval to
make such pilot permanent or August 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
jlentini on DSKJ8SOYB1PROD with NOTICES
BILLING CODE 8011–01–P
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.
1 15
8 17
CFR 200.30–3(a)(12).
VerDate Mar<15>2010
16:26 Jan 04, 2011
2 17
Jkt 223001
PO 00000
U.S.C. 78s(b)(1).
CFR 240.19b–4.
Frm 00081
Fmt 4703
Sfmt 4703
617
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to extend the
operation of its New Market Model Pilot
(‘‘NMM Pilot’’),3 currently scheduled to
expire on January 31, 2011, until the
earlier of Securities and Exchange
Commission approval to make such
pilot permanent or August 1, 2011.
The Exchange notes that parallel
changes are proposed to be made to the
rules of the NYSE Amex LLC.4
Background 5
In October 2008, the NYSE
implemented significant changes to its
market rules, execution technology and
the rights and obligations of its market
participants all of which were designed
to improve execution quality on the
Exchange. These changes are all
elements of the Exchange’s enhanced
market model. Certain of the enhanced
market model changes were
implemented through a pilot program.
As part of the NMM Pilot, NYSE
eliminated the function of specialists on
the Exchange creating a new category of
market participant, the Designated
Market Maker or DMM.6 The DMMs,
like specialists, have affirmative
obligations to make an orderly market,
including continuous quoting
requirements and obligations to re-enter
the market when reaching across to
execute against trading interest. Unlike
specialists, DMMs have a minimum
quoting requirement7 in their assigned
securities and no longer have a negative
obligation. DMMs are also no longer
agents for public customer orders.8
In addition, the Exchange
implemented a system change that
allowed DMMs to create a schedule of
additional non-displayed liquidity at
various price points where the DMM is
3 See Securities Exchange Act Release No. 58845
(October 24, 2008), 73 FR 64379 (October 29, 2008)
(SR–NYSE–2008–46); See also Securities Exchange
Act Release Nos. 60756 (October 1, 2009), 74 FR
51628 (October 7, 2009) (SR–NYSE–2009–100)
(extending Pilot to November 30, 2009); 61031
(November 19, 2009), 74 FR 62368 (November 27,
2009) (SR–NYSE–2009–113) (extending Pilot to
March 30, 2010); 61724 (March 17, 2010), 75 FR
14221 (March 24, 2010) (SR–NYSE–2010–25)
(extending Pilot to September 30, 2010); and 62819
(September 1, 2010), 75 FR 54937 (September 9,
2010) (SR–NYSE–2010–61) (extending Pilot to
January 31, 2011).
4 See SR–NYSE Amex–2010–122.
5 The information contained herein is a summary
of the NMM Pilot. See supra note 1 [sic] for a fuller
description.
6 See NYSE Rule 103.
7 See NYSE Rule 104.
8 See NYSE Rule 60; see also NYSE Rules 104 and
1000.
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05JAN1
618
Federal Register / Vol. 76, No. 3 / Wednesday, January 5, 2011 / Notices
willing to interact with interest and
provide price improvement to orders in
the Exchange’s system. This schedule is
known as the DMM Capital
Commitment Schedule (‘‘CCS’’).9 CCS
provides the Display Book ® 10 with the
amount of shares that the DMM is
willing to trade at price points outside,
at and inside the Exchange Best Bid or
Best Offer (‘‘BBO’’). CCS interest is
separate and distinct from other DMM
interest in that it serves as the interest
of last resort.
The NMM Pilot further modified the
logic for allocating executed shares
among market participants having
trading interest at a price point upon
execution of incoming orders. The
modified logic rewards displayed orders
that establish the Exchange’s BBO.
During the operation of the NMM Pilot
orders, or portions thereof, that establish
priority11 retain that priority until the
portion of the order that established
priority is exhausted. Where no one
order has established priority, shares are
distributed among all market
participants on parity.
The NMM Pilot was originally
scheduled to end operation on October
1, 2009, or such earlier time as the
Commission may determine to make the
rules permanent. The Exchange filed to
extend the operation of the Pilot on four
occasions in order to prepare a rule
filing seeking permission to make the
above described changes permanent.12
The Exchange is currently still
preparing such formal submission but
does not expect that filing to be
completed and approved by the
Commission before January 31, 2011.
Proposal To Extend the Operation of the
NMM Pilot
The NYSE established the NMM Pilot
to provide incentives for quoting, to
enhance competition among the existing
group of liquidity providers and to add
a new competitive market participant.
The Exchange believes that the NMM
Pilot allows the Exchange to provide its
market participants with a trading
venue that utilizes an enhanced market
structure to encourage the addition of
liquidity, facilitate the trading of larger
9 See
NYSE Rule 1000.
Display Book system is an order
management and execution facility. The Display
Book system receives and displays orders to the
DMMs, contains the order information, and
provides a mechanism to execute and report
transactions and publish the results to the
Consolidated Tape. The Display Book system is
connected to a number of other Exchange systems
for the purposes of comparison, surveillance, and
reporting information to customers and other
market data and national market systems.
11 See NYSE Rule 72(a)(ii).
12 See supra note 1 [sic].
jlentini on DSKJ8SOYB1PROD with NOTICES
10 The
VerDate Mar<15>2010
16:26 Jan 04, 2011
Jkt 223001
orders more efficiently and operates to
reward aggressive liquidity providers.
As such, the Exchange believes that the
rules governing the NMM Pilot should
be made permanent. Through this filing
the Exchange seeks to extend the
current operation of the NMM Pilot
until August 1, 2011, in order to allow
the Exchange time to formally submit a
filing to the Commission to convert the
pilot rules to permanent rules.
2. Statutory Basis
The basis under the Securities
Exchange Act of 1934 (the ‘‘Act’’) for this
proposed rule change is the requirement
under Section 6(b)(5) that an exchange
have rules that are designed to promote
just and equitable principles of trade, to
remove impediments to and perfect the
mechanism of a free and open market
and a national market system and, in
general, to protect investors and the
public interest. The Exchange believes
that the instant filing is consistent with
these principles because the NMM Pilot
provides its market participants with a
trading venue that utilizes an enhanced
market structure to encourage the
addition of liquidity, facilitate the
trading of larger orders more efficiently
and operates to reward aggressive
liquidity providers. Moreover, the
instant filing requesting an extension of
the NMM Pilot will permit adequate
time for: (i) The Exchange to prepare
and submit a filing to make the rules
governing the NMM Pilot permanent;
(ii) public notice and comment; and (iii)
completion of the 19b–4 approval
process.
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
Because the foregoing proposed rule
change: (1) Does not significantly affect
the protection of investors or the public
interest; (2) does not impose any
significant burden on competition; and
(3) by its terms does not become
operative for 30 days after the date of
this filing, or such shorter time as the
PO 00000
Frm 00082
Fmt 4703
Sfmt 4703
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 13 and
Rule 19b–4(f)(6) thereunder.14
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 rulecomments@sec.gov. Please include File
Number SR–NYSE–2010–85 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–2010–85. 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
13 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). 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.
14 17
E:\FR\FM\05JAN1.SGM
05JAN1
Federal Register / Vol. 76, No. 3 / Wednesday, January 5, 2011 / Notices
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.15 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–
2010–85 and should be submitted on or
before January 26, 2011.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.16
Florence E. Harmon,
Deputy Secretary.
12/21/2010, Private Non-Profit
organizations that provide essential
services of governmental nature may file
disaster loan applications at the address
listed above or other locally announced
locations.
The following areas have been
determined to be adversely affected by
the disaster:
Primary Area: The Sovereign Tribal
Nation of the Havasupai Tribe Within
Coconino County.
The Interest Rates are:
Percent
For Physical Damage:
Non-Profit Organizations With
Credit Available Elsewhere ...
Non-Profit Organizations Without Credit Available Elsewhere .....................................
For Economic Injury:
Non-Profit Organizations Without Credit Available Elsewhere .....................................
3.625
3.000
3.000
[FR Doc. 2010–33258 Filed 1–4–11; 8:45 am]
BILLING CODE 8011–01–P
The number assigned to this disaster
for physical damage is 12427B and for
economic injury is 12428B.
SMALL BUSINESS ADMINISTRATION
(Catalog of Federal Domestic Assistance
Numbers 59002 and 59008)
[Disaster Declaration #12427 and #12428]
James E. Rivera,
Associate Administrator for Disaster
Assistance.
Arizona Disaster #AZ–00014
U.S. Small Business
Administration.
ACTION: Notice.
AGENCY:
[FR Doc. 2010–33274 Filed 1–4–11; 8:45 am]
This is a Notice of the
Presidential declaration of a major
disaster for Public Assistance Only for
the State of Arizona (FEMA–1950–DR),
dated 12/21/2010.
Incident: Severe Storms and Flooding.
Incident Period: 10/03/2010 through
10/06/2010.
Effective Date: 12/21/2010.
Physical Loan Application Deadline
Date: 02/21/2011.
Economic Injury (EIDL) Loan
Application Deadline Date: 09/21/2011.
ADDRESSES: Submit completed loan
applications to: U.S. Small Business
Administration, Processing and
Disbursement Center, 14925 Kingsport
Road, Fort Worth, TX 76155.
FOR FURTHER INFORMATION CONTACT: A.
Escobar, Office of Disaster Assistance,
U.S. Small Business Administration,
409 3rd Street, SW., Suite 6050,
Washington, DC 20416.
SUPPLEMENTARY INFORMATION: Notice is
hereby given that as a result of the
President’s major disaster declaration on
jlentini on DSKJ8SOYB1PROD with NOTICES
15 The text of the proposed rule change is
available on the Commission’s Web site at https://
www.sec.gov.
16 17 CFR 200.30–3(a)(12).
16:26 Jan 04, 2011
Jkt 223001
409 3rd Street, SW., Suite 6050,
Washington, DC 20416.
SUPPLEMENTARY INFORMATION: Notice is
hereby given that as a result of the
President’s major disaster declaration on
12/22/2010, Private Non-Profit
organizations that provide essential
services of governmental nature may file
disaster loan applications at the address
listed above or other locally announced
locations.
The following areas have been
determined to be adversely affected by
the disaster:
Primary Counties: Chittenden,
Franklin, Lamoille.
The Interest Rates are:
For Physical Damage:
Non-Profit Organizations With Credit
Available Elsewhere: 3.250.
Non-Profit Organizations Without
Credit Available Elsewhere: 3.000.
For Economic Injury:
Non-Profit Organizations Without
Credit Available Elsewhere: 3.000.
The number assigned to this disaster
for physical damage is 12429B and for
economic injury is 12430B.
(Catalog of Federal Domestic Assistance
Numbers 59002 and 59008)
James E. Rivera,
Associate Administrator for Disaster
Assistance.
[FR Doc. 2010–33275 Filed 1–4–11; 8:45 am]
BILLING CODE 8025–01–P
BILLING CODE 8025–01–P
SUMMARY:
VerDate Mar<15>2010
619
SMALL BUSINESS ADMINISTRATION
SMALL BUSINESS ADMINISTRATION
[License No. 06/06–0335]
[Disaster Declaration #12429 and #12430]
Escalate Capital Partners SBIC I, L.P.;
Notice Seeking Exemption Under
Section 312 of the Small Business
Investment Act, Conflicts of Interest
Vermont Disaster #VT–00015
U.S. Small Business
Administration.
ACTION: Notice.
AGENCY:
This is a Notice of the
Presidential declaration of a major
disaster for Public Assistance Only for
the State of Vermont (FEMA–1951–DR),
dated 12/22/2010.
Incident: Severe Storm.
Incident Period: 12/01/2010 through
12/05/2010.
Effective Date: 12/22/2010.
Physical Loan Application Deadline
Date: 02/21/2011.
Economic Injury (EIDL) Loan
Application Deadline Date: 09/22/2011.
ADDRESSES: Submit completed loan
applications to: U.S. Small Business
Administration, Processing and
Disbursement Center, 14925 Kingsport
Road, Fort Worth, TX 76155.
FOR FURTHER INFORMATION CONTACT: A.
Escobar, Office of Disaster Assistance,
U.S. Small Business Administration,
SUMMARY:
PO 00000
Frm 00083
Fmt 4703
Sfmt 4703
Notice is hereby given that Escalate
Capital Partners, SBIC I, L.P., 300 W. 6th
Street, Suite 2250, Austin, TX 78701, a
Federal Licensee under the Small
Business Investment Act of 1958, as
amended (‘‘the Act’’), in connection with
the financing of a small concern, has
sought an exemption under Section 312
of the Act and Section 107.730,
Financings which Constitute Conflicts
of Interest of the Small Business
Administration (‘‘SBA’’) Rules and
Regulations (13 CFR 107.730). Escalate
Capital Partners, SBIC I, L.P. proposes to
provide debt security financing to LDR
Holding Corporation, 4030 West Braker
Lane, Suite 360, Austin, TX 78759. The
financing is contemplated to provide
capital for operations and expansion.
The financing is brought within the
purview of § 107.730(a)(1) of the
Regulations because AV–EC Partners I,
L.P., an Associate of Escalate Capital
E:\FR\FM\05JAN1.SGM
05JAN1
]]>Agencies
[Federal Register Volume 76, Number 3 (Wednesday, January 5, 2011)]
[Notices]
[Pages 617-619]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-33258]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-63618; File No. SR-NYSE-2010-85]
Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Extending the Operation of Its New Market Model Pilot Until the Earlier
of Securities and Exchange Commission Approval To Make Such Pilot
Permanent or August 1, 2011
December 29, 2010.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (the ``Act'') and Rule 19b-4 thereunder,\2\ notice is hereby given
that on December 17, 2010, 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 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\ 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 extend the operation of its New Market
Model Pilot, currently scheduled to expire on January 31, 2011, until
the earlier of Securities and Exchange Commission (``SEC'' or
``Commission'') approval to make such pilot permanent or August 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, 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 extend the operation of its New Market
Model Pilot (``NMM Pilot''),\3\ currently scheduled to expire on
January 31, 2011, until the earlier of Securities and Exchange
Commission approval to make such pilot permanent or August 1, 2011.
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release No. 58845 (October 24,
2008), 73 FR 64379 (October 29, 2008) (SR-NYSE-2008-46); See also
Securities Exchange Act Release Nos. 60756 (October 1, 2009), 74 FR
51628 (October 7, 2009) (SR-NYSE-2009-100) (extending Pilot to
November 30, 2009); 61031 (November 19, 2009), 74 FR 62368 (November
27, 2009) (SR-NYSE-2009-113) (extending Pilot to March 30, 2010);
61724 (March 17, 2010), 75 FR 14221 (March 24, 2010) (SR-NYSE-2010-
25) (extending Pilot to September 30, 2010); and 62819 (September 1,
2010), 75 FR 54937 (September 9, 2010) (SR-NYSE-2010-61) (extending
Pilot to January 31, 2011).
---------------------------------------------------------------------------
The Exchange notes that parallel changes are proposed to be made to
the rules of the NYSE Amex LLC.\4\
---------------------------------------------------------------------------
\4\ See SR-NYSE Amex-2010-122.
---------------------------------------------------------------------------
Background \5\
---------------------------------------------------------------------------
\5\ The information contained herein is a summary of the NMM
Pilot. See supra note 1 [sic] for a fuller description.
---------------------------------------------------------------------------
In October 2008, the NYSE implemented significant changes to its
market rules, execution technology and the rights and obligations of
its market participants all of which were designed to improve execution
quality on the Exchange. These changes are all elements of the
Exchange's enhanced market model. Certain of the enhanced market model
changes were implemented through a pilot program.
As part of the NMM Pilot, NYSE eliminated the function of
specialists on the Exchange creating a new category of market
participant, the Designated Market Maker or DMM.\6\ The DMMs, like
specialists, have affirmative obligations to make an orderly market,
including continuous quoting requirements and obligations to re-enter
the market when reaching across to execute against trading interest.
Unlike specialists, DMMs have a minimum quoting requirement\7\ in their
assigned securities and no longer have a negative obligation. DMMs are
also no longer agents for public customer orders.\8\
---------------------------------------------------------------------------
\6\ See NYSE Rule 103.
\7\ See NYSE Rule 104.
\8\ See NYSE Rule 60; see also NYSE Rules 104 and 1000.
---------------------------------------------------------------------------
In addition, the Exchange implemented a system change that allowed
DMMs to create a schedule of additional non-displayed liquidity at
various price points where the DMM is
[[Page 618]]
willing to interact with interest and provide price improvement to
orders in the Exchange's system. This schedule is known as the DMM
Capital Commitment Schedule (``CCS'').\9\ CCS provides the Display Book
[supreg] \10\ with the amount of shares that the DMM is willing to
trade at price points outside, at and inside the Exchange Best Bid or
Best Offer (``BBO''). CCS interest is separate and distinct from other
DMM interest in that it serves as the interest of last resort.
---------------------------------------------------------------------------
\9\ See NYSE Rule 1000.
\10\ The Display Book system is an order management and
execution facility. The Display Book system receives and displays
orders to the DMMs, contains the order information, and provides a
mechanism to execute and report transactions and publish the results
to the Consolidated Tape. The Display Book system is connected to a
number of other Exchange systems for the purposes of comparison,
surveillance, and reporting information to customers and other
market data and national market systems.
---------------------------------------------------------------------------
The NMM Pilot further modified the logic for allocating executed
shares among market participants having trading interest at a price
point upon execution of incoming orders. The modified logic rewards
displayed orders that establish the Exchange's BBO. During the
operation of the NMM Pilot orders, or portions thereof, that establish
priority\11\ retain that priority until the portion of the order that
established priority is exhausted. Where no one order has established
priority, shares are distributed among all market participants on
parity.
---------------------------------------------------------------------------
\11\ See NYSE Rule 72(a)(ii).
---------------------------------------------------------------------------
The NMM Pilot was originally scheduled to end operation on October
1, 2009, or such earlier time as the Commission may determine to make
the rules permanent. The Exchange filed to extend the operation of the
Pilot on four occasions in order to prepare a rule filing seeking
permission to make the above described changes permanent.\12\ The
Exchange is currently still preparing such formal submission but does
not expect that filing to be completed and approved by the Commission
before January 31, 2011.
---------------------------------------------------------------------------
\12\ See supra note 1 [sic].
---------------------------------------------------------------------------
Proposal To Extend the Operation of the NMM Pilot
The NYSE established the NMM Pilot to provide incentives for
quoting, to enhance competition among the existing group of liquidity
providers and to add a new competitive market participant. The Exchange
believes that the NMM Pilot allows the Exchange to provide its market
participants with a trading venue that utilizes an enhanced market
structure to encourage the addition of liquidity, facilitate the
trading of larger orders more efficiently and operates to reward
aggressive liquidity providers. As such, the Exchange believes that the
rules governing the NMM Pilot should be made permanent. Through this
filing the Exchange seeks to extend the current operation of the NMM
Pilot until August 1, 2011, in order to allow the Exchange time to
formally submit a filing to the Commission to convert the pilot rules
to permanent rules.
2. Statutory Basis
The basis under the Securities Exchange Act of 1934 (the ``Act'')
for this proposed rule change is the requirement under Section 6(b)(5)
that an exchange have rules that are designed to promote just and
equitable principles of trade, to remove impediments to and perfect the
mechanism of a free and open market and a national market system and,
in general, to protect investors and the public interest. The Exchange
believes that the instant filing is consistent with these principles
because the NMM Pilot provides its market participants with a trading
venue that utilizes an enhanced market structure to encourage the
addition of liquidity, facilitate the trading of larger orders more
efficiently and operates to reward aggressive liquidity providers.
Moreover, the instant filing requesting an extension of the NMM Pilot
will permit adequate time for: (i) The Exchange to prepare and submit a
filing to make the rules governing the NMM Pilot permanent; (ii) public
notice and comment; and (iii) completion of the 19b-4 approval process.
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
Because the foregoing proposed rule change: (1) Does not
significantly affect the protection of investors or the public
interest; (2) does not impose any significant burden on competition;
and (3) by its terms does not become operative for 30 days after the
date of this filing, 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 \13\ and Rule 19b-4(f)(6)
thereunder.\14\
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\13\ 15 U.S.C. 78s(b)(3)(A).
\14\ 17 CFR 240.19b-4(f)(6). 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.
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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-NYSE-2010-85 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-2010-85. 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
[[Page 619]]
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.\15\ 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-2010-85 and should be
submitted on or before January 26, 2011.
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\15\ The text of the proposed rule change is available on the
Commission's Web site at https://www.sec.gov.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\16\
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\16\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-33258 Filed 1-4-11; 8:45 am]
BILLING CODE 8011-01-P
