Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Exchange Price List, 1653-1655 [2011-321]
Download as PDF
<![CDATA[
Federal Register / Vol. 76, No. 7 / Tuesday, January 11, 2011 / Notices
mstockstill on DSKH9S0YB1PROD with NOTICES
implementation of associated design
change package. The amendment also
revised license condition 2.C.(5)(a) to
include the deviation approved by the
amendment request.
Date of issuance: December 16, 2010.
Effective date: As of the date of
issuance and shall be implemented
within 90 days from the date of
issuance.
Amendment No.: 191.
Renewed Facility Operating License
No. NPF–42. The amendment revised
the Operating License and Technical
Specifications.
Date of initial notice in Federal
Register: April 21, 2009 (75 FR 18258).
The supplemental letters dated March
25 and November 17, 2010, provided
additional information that clarified the
application, did not expand the scope of
the application as originally noticed,
and did not change the staff’s original
proposed no significant hazards
consideration determination as
published in the Federal Register.
The Commission’s related evaluation
of the amendment is contained in a
Safety Evaluation dated December 16,
2010.
No significant hazards consideration
comments received: No.
Wolf Creek Nuclear Operating
Corporation, Docket No. 50–482, Wolf
Creek Generating Station, Coffey
County, Kansas
Date of amendment request:
December 16, 2009, as supplemented by
letter dated August 26, 2010.
Brief description of amendment: The
amendment revised the battery
acceptance criteria in Technical
Specification 3.8.4, ‘‘DC [Direct Current]
Sources—Operating,’’ Surveillance
Requirements (SRs) 3.8.4.2 and 3.8.4.5.
Specifically, the amendment modified
SR 3.8.4.2 and SR 3.8.4.5 by providing
limits for inter-cell, inter-tier/interbank/terminal, and field jumper
connections for 60-cell, 59-cell, and 58cell configurations.
Date of issuance: December 20, 2010.
Effective date: As of the date of
issuance and shall be implemented
within 90 days from the date of
issuance.
Amendment No.: 192.
Renewed Facility Operating License
No. NPF–42. The amendment revised
the Operating License and Technical
Specifications.
Date of initial notice in Federal
Register: April 6, 2010 (75 FR 17448).
The supplemental letter dated August
26, 2010, provided additional
information that clarified the
application, did not expand the scope of
the application as originally noticed,
VerDate Mar<15>2010
17:33 Jan 10, 2011
Jkt 223001
and did not change the staff’s original
proposed no significant hazards
consideration determination as
published in the Federal Register.
The Commission’s related evaluation
of the amendment is contained in a
Safety Evaluation dated December 20,
2010.
No significant hazards consideration
comments received: No.
Dated at Rockville, Maryland, this 30th day
of December 2010.
For the Nuclear Regulatory Commission.
Joseph G. Giitter,
Director, Division of Operating Reactor
Licensing, Office of Nuclear Reactor
Regulation.
[FR Doc. 2011–218 Filed 1–10–11; 8:45 am]
BILLING CODE 7590–01–P
NUCLEAR REGULATORY
COMMISSION
[NRC–2011–0006]
Sunshine Federal Register Notice
AGENCY HOLDING THE MEETINGS:
Nuclear
Regulatory Commission.
Weeks of January 10, 17, 24, 31,
February 7, 14, 2011.
DATES:
Commissioners’ Conference
Room, 11555 Rockville Pike, Rockville,
Maryland.
PLACE:
STATUS:
Public and Closed.
Week of January 10, 2011
Tuesday, January 11, 2011
9:30 a.m. Discussion of Management
Issues (Closed—Ex. 2).
Week of January 17, 2011—Tentative
There are no meetings scheduled for
the week of January 17, 2011.
Week of January 24, 2011—Tentative
1653
Week of February 7, 2011—Tentative
Tuesday, February 8, 2011
9 a.m. Briefing on Implementation of
Part 26 (Public Meeting) (Contact:
Shana Helton, 301–415–7198).
This meeting will be webcast live at
the Web address—https://www.nrc.gov.
Week of February 14, 2011—Tentative
There are no meetings scheduled for
the week of February 14, 2011.
*The schedule for Commission
meetings is subject to change on short
notice. To verify the status of meetings,
call (recording)—(301) 415–1292.
Contact person for more information:
Rochelle Bavol, (301) 415–1651.
The NRC Commission Meeting
Schedule can be found on the Internet
at: https://www.nrc.gov/about-nrc/policymaking/schedule.html.
The NRC provides reasonable
accommodation to individuals with
disabilities where appropriate. If you
need a reasonable accommodation to
participate in these public meetings, or
need this meeting notice or the
transcript or other information from the
public meetings in another format (e.g.,
braille, large print), please notify Angela
Bolduc, Chief, Employee/Labor
Relations and Work Life Branch, at 301–
492–2230, TDD: 301–415–2100, or by email at angela.bolduc@nrc.gov.
Determinations on requests for
reasonable accommodation will be
made on a case-by-case basis.
This notice is distributed
electronically to subscribers. If you no
longer wish to receive it, or would like
to be added to the distribution, please
contact the Office of the Secretary,
Washington, DC 20555 (301–415–1969),
or send an e-mail to
darlene.wright@nrc.gov.
Dated: January 6, 2011.
Rochelle C. Bavol,
Policy Coordinator, Office of the Secretary.
[FR Doc. 2011–490 Filed 1–7–11; 4:15 pm]
Monday, January 24, 2011
BILLING CODE 7590–01–P
1 p.m. Briefing on Safety Culture
Policy Statement (Public Meeting)
(Contact: Diane Sieracki, 301–415–
3297).
SECURITIES AND EXCHANGE
COMMISSION
This meeting will be webcast live at
the Web address—https://www.nrc.gov.
[Release No. 34–63642; File No. SR–NYSE–
2010–87]
Week of January 31, 2011—Tentative
Tuesday, February 1, 2011
9 a.m. Briefing on Digital
Instrumentation and Controls (Public
Meeting) (Contact: Steven Arndt, 301–
415–6502).
This meeting will be webcast live at
the Web address—https://www.nrc.gov.
PO 00000
Frm 00062
Fmt 4703
Sfmt 4703
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Amend the
Exchange Price List
January 4, 2011.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
E:\FR\FM\11JAN1.SGM
11JAN1
1654
Federal Register / Vol. 76, No. 7 / Tuesday, January 11, 2011 / Notices
(‘‘Act’’),1 and Rule 19b–4 2 thereunder,
notice is hereby given that on December
22, 2010, New York Stock Exchange
LLC (‘‘NYSE’’ or ‘‘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.
mstockstill on DSKH9S0YB1PROD with NOTICES
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend its
2011 Price List (‘‘Price List’’) for equity
transactions to (i) Increase the credits to
customers and floor brokers for
transactions when adding liquidity in
NYSE-listed securities, (ii) increase the
fees charged to customers, floor brokers
and Designated Market Makers
(‘‘DMMs’’) for transactions when taking
liquidity in NYSE-listed securities, (iii)
create a second tier of charges for
executions of Market-On-Close (‘‘MOC’’)
and Limit-On-Close (‘‘LOC’’) orders in
NYSE-listed securities, with a reduced
charge per share for member
organizations that execute an average
daily trading volume (‘‘ADV’’) of greater
than 14 million shares of MOC/LOC
activity on the Exchange in the current
month, (iv) create a tiered structure of
credits to Supplemental Liquidity
Providers (‘‘SLPs’’) for adding liquidity
to the Exchange in NYSE-listed
securities, based on an SLP’s ADV in
added liquidity in the applicable month,
and (v) adopt a trading license fee for
calendar year 2011. All of the foregoing
changes will only apply to those NYSElisted securities with a per share stock
price of $1.00 or more. The amended
pricing will take effect on January 3,
2011. The text of the proposed rule
change is available at the Exchange, at
https://www.nyse.com, at 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.
1 15
2 17
U.S.C. 78s(b)(1).
CFR 240.19b–4.
VerDate Mar<15>2010
17:33 Jan 10, 2011
Jkt 223001
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 amend its
Price List for equity transactions to
increase the credits to customers and
floor brokers for transactions when
adding liquidity in NYSE-listed
securities. Under the proposed new
pricing for the trading of NYSE-listed
securities, customers will receive a
credit of $0.0015 per share for adding
liquidity, and floor brokers will receive
a credit of $0.0017 per share for adding
liquidity. In each case, this is an
increase of $0.0002 per share from the
currently applicable rate.
The Exchange proposes to further
amend its Price List for equity
transactions to increase the fees charged
to customers, floor brokers and DMMs
for transactions when taking liquidity in
NYSE-listed securities. Under the
proposed new pricing for the trading of
NYSE-listed securities, customers and
floor brokers will be charged a fee of
$0.0023 per share for taking liquidity,
and DMMs will be charged a fee of
$0.0015 per share for taking liquidity. In
each case, this is an increase of $0.0002
per share from the currently applicable
rate.
In addition, the Exchange is
proposing to create a second tier of
charges for executions of MOC and LOC
orders in NYSE-listed securities, with a
reduced charge of $0.00055 per share for
member organizations that execute an
ADV of greater than 14 million shares of
MOC/LOC activity on the Exchange in
the current month. Otherwise, the
current rate of $0.00085 per share for
executed MOC/LOC orders will be
applicable. The Exchange notes that it
has, in the past, had a tiered structure
of charges for MOC/LOC orders based
on ADV parameters.3 The proposed
second tier of charges for executions of
MOC and LOC orders will reduce
charges for those member organizations
executing greater volume at the NYSE
close, thereby encouraging market
participants to increase their MOC/LOC
activity on the NYSE and facilitating
3 See Securities Exchange Act Release No. 60436
(August 5, 2009), 74 FR 40252 (August 11, 2009)
(File No. SR–NYSE–2009–77) (notice of filing and
immediate effectiveness of proposed rule change by
NYSE adding a second MOC/LOC tier).
PO 00000
Frm 00063
Fmt 4703
Sfmt 4703
greater liquidity and improved pricing
at the close.4
The Exchange further proposes to
create a tiered structure of credits to
SLPs for adding liquidity to the
Exchange in NYSE-listed securities,
based on an SLP’s ADV in added
liquidity in the applicable month.
Under the proposal, SLPs that meet the
SLP 10% quoting requirement will
receive a credit per share per transaction
for adding liquidity, based on total ADV
of added liquidity in the applicable
month for all assigned SLP securities, as
follows:
• $0.0022 credit per share per
transaction if total ADV of added
liquidity is more than 50 million shares
• $0.0021 credit per share per
transaction if total ADV of added
liquidity is more than 20 million shares
but not more than 50 million shares
• $0.0020 credit per share per
transaction if total ADV of added
liquidity is more than 10 million shares
but not more than 20 million shares
For all other SLP transactions that add
liquidity to the Exchange but do not
qualify for any of the foregoing credits,
the credit will be $0.0015 per share per
transaction, representing an increased
credit of $0.0002 per share from the
current rate for that lowest tier.
The Exchange is also adding a new
footnote 4 to the Price List stating that
the ADV calculations described above
will exclude early closing days. The
Exchange notes that it had this same
footnote in its Price List in the recent
past,5 but it was inadvertently
eliminated when a paragraph containing
it was deleted.
These changes are intended to be
effective immediately for all
transactions beginning January 3, 2011
and are only applicable to those NYSElisted securities with a per share stock
price of $1.00 or more.
Finally, NYSE Rule 300(b) provides
that, in each annual offering, up to 1366
trading licenses for the following
calendar year will be sold annually at a
price per trading license to be
established each year by the Exchange
pursuant to a rule filing submitted to the
Commission and that the price per
trading license will be published each
year in the Exchange’s price list. The
Exchange proposes to establish a trading
license fee for calendar year 2011 of
$40,000. This is the same as the trading
4 See e-mail from William Love, Chief Counsel,
NYSE Euronext, to Nathan Saunders, Special
Counsel, and Andrew Madar, Special Counsel,
Commission, dated January 3, 2011 (‘‘NYSE
e-mail’’).
5 See, e.g., Exhibit 5, footnote 9, in File No. SR–
NYSE–2010–34.
E:\FR\FM\11JAN1.SGM
11JAN1
Federal Register / Vol. 76, No. 7 / Tuesday, January 11, 2011 / Notices
license fee charged in calendar years
2009 and 2010.
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’’),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. The
Exchange believes that the proposal
does not constitute an inequitable
allocation of fees, as all similarly
situated member organizations will be
subject to the same fee structure and
access to the Exchange’s market is
offered on fair and non-discriminatory
terms. The Exchange believes that the
proposed amendments to the Price List
represent an equitable allocation of dues
and fees in that the increase in the credit
to customers and floor brokers when
adding liquidity is the same ($0.0002
per share) and such credits are intended
to encourage greater liquidity at the
NYSE quote and narrower spreads.8 The
6 15
U.S.C. 78f.
U.S.C. 78f(b)(4).
8 See NYSE e-mail, supra note 4. The Exchange
notes that the reasons for the difference between
floor broker and customer credits on the NYSE (the
floor broker credit is currently $0.0002 higher and
will remain $0.0002 higher after the proposed fee
changes are effective) were originally discussed in
a 2008 filing by the Exchange, SR–NYSE–2008–15.
In that filing, which established a credit of $0.0004
per share for execution of orders sent directly to the
floor broker for representation on the NYSE when
adding liquidity to the NYSE Display Book system,
the Exchange stated: ‘‘Technological limitations
make it impossible for floor brokers to post orders
on other markets while at the point of sale on the
Exchange. Therefore, unlike other Exchange users,
they are unable to benefit from the incentives
certain other markets provide to customers who
provide liquidity. The time that would elapse if a
floor broker sent the order to his booth or upstairs
trading desk for execution on another market means
that, if the floor broker utilized this alternative, the
trade would likely not get executed at the desired
price. The Exchange believes this disparity places
floor brokers at a competitive disadvantage to other
Exchange customers and believes that the proposed
credit will mitigate the effects of that disadvantage
while also attracting additional liquidity to the
Exchange.’’ The Statutory Basis section of that 2008
filing further stated that, ‘‘The Exchange believes
that the proposed credit represents an equitable
allocation of reasonable dues, fees, and other
charges because floor brokers are integral to the
Exchange’s market model and the proposed credit
lessens the impact on floor brokers of the
competitive disadvantage arising out of the
difficulty they experience in availing themselves or
their customers of liquidity credits on other
markets.’’ See Securities Exchange Act Release No.
57433 (March 5, 2008), 73 FR 13064 (March 11,
2008) (File No. SR–NYSE–2008–15). The Exchange
believes that the rationale stated in the 2008 filing
applies equally to the current situation in which
floor broker credits for adding liquidity are slightly
higher than customer credits for adding liquidity.
See NYSE e-mail, supra note 4.
mstockstill on DSKH9S0YB1PROD with NOTICES
7 15
VerDate Mar<15>2010
17:33 Jan 10, 2011
Jkt 223001
proposed increase in the charge for
transactions taking liquidity from the
NYSE is the same for customers, floor
brokers and DMMs ($0.0002 per share)
and corresponds to the increase in
credits for providing liquidity.9
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) 10 of the Act and
subparagraph (f)(2) of Rule 19b–4 11
thereunder, because it establishes a due,
fee, or other charge imposed on its
members 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
change 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:
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–2010–87. 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–NYSE–
2010–87 and should be submitted on or
before February 1, 2011.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011–321 Filed 1–10–11; 8:45 am]
BILLING CODE 8011–01–P
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–2010–87 on the
subject line.
NYSE e-mail, supra note 4.
U.S.C. 78s(b)(3)(A).
11 17 CFR 240.19b–4(f)(2).
9 See
10 15
PO 00000
Frm 00064
Fmt 4703
Sfmt 9990
1655
12 17
E:\FR\FM\11JAN1.SGM
CFR 200.30–3(a)(12).
11JAN1
]]>Agencies
[Federal Register Volume 76, Number 7 (Tuesday, January 11, 2011)]
[Notices]
[Pages 1653-1655]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-321]
=======================================================================
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-63642; File No. SR-NYSE-2010-87]
Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Amend the Exchange Price List
January 4, 2011.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
[[Page 1654]]
(``Act''),\1\ and Rule 19b-4 \2\ thereunder, notice is hereby given
that on December 22, 2010, New York Stock Exchange LLC (``NYSE'' or
``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 2011 Price List (``Price List'')
for equity transactions to (i) Increase the credits to customers and
floor brokers for transactions when adding liquidity in NYSE-listed
securities, (ii) increase the fees charged to customers, floor brokers
and Designated Market Makers (``DMMs'') for transactions when taking
liquidity in NYSE-listed securities, (iii) create a second tier of
charges for executions of Market-On-Close (``MOC'') and Limit-On-Close
(``LOC'') orders in NYSE-listed securities, with a reduced charge per
share for member organizations that execute an average daily trading
volume (``ADV'') of greater than 14 million shares of MOC/LOC activity
on the Exchange in the current month, (iv) create a tiered structure of
credits to Supplemental Liquidity Providers (``SLPs'') for adding
liquidity to the Exchange in NYSE-listed securities, based on an SLP's
ADV in added liquidity in the applicable month, and (v) adopt a trading
license fee for calendar year 2011. All of the foregoing changes will
only apply to those NYSE-listed securities with a per share stock price
of $1.00 or more. The amended pricing will take effect on January 3,
2011. The text of the proposed rule change is available at the
Exchange, at https://www.nyse.com, at 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 amend its Price List for equity
transactions to increase the credits to customers and floor brokers for
transactions when adding liquidity in NYSE-listed securities. Under the
proposed new pricing for the trading of NYSE-listed securities,
customers will receive a credit of $0.0015 per share for adding
liquidity, and floor brokers will receive a credit of $0.0017 per share
for adding liquidity. In each case, this is an increase of $0.0002 per
share from the currently applicable rate.
The Exchange proposes to further amend its Price List for equity
transactions to increase the fees charged to customers, floor brokers
and DMMs for transactions when taking liquidity in NYSE-listed
securities. Under the proposed new pricing for the trading of NYSE-
listed securities, customers and floor brokers will be charged a fee of
$0.0023 per share for taking liquidity, and DMMs will be charged a fee
of $0.0015 per share for taking liquidity. In each case, this is an
increase of $0.0002 per share from the currently applicable rate.
In addition, the Exchange is proposing to create a second tier of
charges for executions of MOC and LOC orders in NYSE-listed securities,
with a reduced charge of $0.00055 per share for member organizations
that execute an ADV of greater than 14 million shares of MOC/LOC
activity on the Exchange in the current month. Otherwise, the current
rate of $0.00085 per share for executed MOC/LOC orders will be
applicable. The Exchange notes that it has, in the past, had a tiered
structure of charges for MOC/LOC orders based on ADV parameters.\3\ The
proposed second tier of charges for executions of MOC and LOC orders
will reduce charges for those member organizations executing greater
volume at the NYSE close, thereby encouraging market participants to
increase their MOC/LOC activity on the NYSE and facilitating greater
liquidity and improved pricing at the close.\4\
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release No. 60436 (August 5,
2009), 74 FR 40252 (August 11, 2009) (File No. SR-NYSE-2009-77)
(notice of filing and immediate effectiveness of proposed rule
change by NYSE adding a second MOC/LOC tier).
\4\ See e-mail from William Love, Chief Counsel, NYSE Euronext,
to Nathan Saunders, Special Counsel, and Andrew Madar, Special
Counsel, Commission, dated January 3, 2011 (``NYSE e-mail'').
---------------------------------------------------------------------------
The Exchange further proposes to create a tiered structure of
credits to SLPs for adding liquidity to the Exchange in NYSE-listed
securities, based on an SLP's ADV in added liquidity in the applicable
month. Under the proposal, SLPs that meet the SLP 10% quoting
requirement will receive a credit per share per transaction for adding
liquidity, based on total ADV of added liquidity in the applicable
month for all assigned SLP securities, as follows:
$0.0022 credit per share per transaction if total ADV of
added liquidity is more than 50 million shares
$0.0021 credit per share per transaction if total ADV of
added liquidity is more than 20 million shares but not more than 50
million shares
$0.0020 credit per share per transaction if total ADV of
added liquidity is more than 10 million shares but not more than 20
million shares
For all other SLP transactions that add liquidity to the Exchange
but do not qualify for any of the foregoing credits, the credit will be
$0.0015 per share per transaction, representing an increased credit of
$0.0002 per share from the current rate for that lowest tier.
The Exchange is also adding a new footnote 4 to the Price List
stating that the ADV calculations described above will exclude early
closing days. The Exchange notes that it had this same footnote in its
Price List in the recent past,\5\ but it was inadvertently eliminated
when a paragraph containing it was deleted.
---------------------------------------------------------------------------
\5\ See, e.g., Exhibit 5, footnote 9, in File No. SR-NYSE-2010-
34.
---------------------------------------------------------------------------
These changes are intended to be effective immediately for all
transactions beginning January 3, 2011 and are only applicable to those
NYSE-listed securities with a per share stock price of $1.00 or more.
Finally, NYSE Rule 300(b) provides that, in each annual offering,
up to 1366 trading licenses for the following calendar year will be
sold annually at a price per trading license to be established each
year by the Exchange pursuant to a rule filing submitted to the
Commission and that the price per trading license will be published
each year in the Exchange's price list. The Exchange proposes to
establish a trading license fee for calendar year 2011 of $40,000. This
is the same as the trading
[[Page 1655]]
license fee charged in calendar years 2009 and 2010.
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''),\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. The Exchange believes
that the proposal does not constitute an inequitable allocation of
fees, as all similarly situated member organizations will be subject to
the same fee structure and access to the Exchange's market is offered
on fair and non-discriminatory terms. The Exchange believes that the
proposed amendments to the Price List represent an equitable allocation
of dues and fees in that the increase in the credit to customers and
floor brokers when adding liquidity is the same ($0.0002 per share) and
such credits are intended to encourage greater liquidity at the NYSE
quote and narrower spreads.\8\ The proposed increase in the charge for
transactions taking liquidity from the NYSE is the same for customers,
floor brokers and DMMs ($0.0002 per share) and corresponds to the
increase in credits for providing liquidity.\9\
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78f.
\7\ 15 U.S.C. 78f(b)(4).
\8\ See NYSE e-mail, supra note 4. The Exchange notes that the
reasons for the difference between floor broker and customer credits
on the NYSE (the floor broker credit is currently $0.0002 higher and
will remain $0.0002 higher after the proposed fee changes are
effective) were originally discussed in a 2008 filing by the
Exchange, SR-NYSE-2008-15. In that filing, which established a
credit of $0.0004 per share for execution of orders sent directly to
the floor broker for representation on the NYSE when adding
liquidity to the NYSE Display Book system, the Exchange stated:
``Technological limitations make it impossible for floor brokers to
post orders on other markets while at the point of sale on the
Exchange. Therefore, unlike other Exchange users, they are unable to
benefit from the incentives certain other markets provide to
customers who provide liquidity. The time that would elapse if a
floor broker sent the order to his booth or upstairs trading desk
for execution on another market means that, if the floor broker
utilized this alternative, the trade would likely not get executed
at the desired price. The Exchange believes this disparity places
floor brokers at a competitive disadvantage to other Exchange
customers and believes that the proposed credit will mitigate the
effects of that disadvantage while also attracting additional
liquidity to the Exchange.'' The Statutory Basis section of that
2008 filing further stated that, ``The Exchange believes that the
proposed credit represents an equitable allocation of reasonable
dues, fees, and other charges because floor brokers are integral to
the Exchange's market model and the proposed credit lessens the
impact on floor brokers of the competitive disadvantage arising out
of the difficulty they experience in availing themselves or their
customers of liquidity credits on other markets.'' See Securities
Exchange Act Release No. 57433 (March 5, 2008), 73 FR 13064 (March
11, 2008) (File No. SR-NYSE-2008-15). The Exchange believes that the
rationale stated in the 2008 filing applies equally to the current
situation in which floor broker credits for adding liquidity are
slightly higher than customer credits for adding liquidity. See NYSE
e-mail, supra note 4.
\9\ See NYSE e-mail, supra note 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) \10\ of the Act and subparagraph (f)(2) of Rule
19b-4 \11\ thereunder, because it establishes a due, fee, or other
charge imposed on its members by the NYSE.
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 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 change 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-2010-87 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-2010-87. 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-
NYSE-2010-87 and should be submitted on or before February 1, 2011.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
---------------------------------------------------------------------------
\12\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011-321 Filed 1-10-11; 8:45 am]
BILLING CODE 8011-01-P
