Self-Regulatory Organizations; NYSE Amex LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Extending the Operation of Its Supplemental Liquidity Providers Pilot Until the Earlier of the Securities and Exchange Commission's Approval To Make Such Pilot Permanent or January 31, 2012, 39455-39457 [2011-16888]

Download as PDF Federal Register / Vol. 76, No. 129 / Wednesday, July 6, 2011 / Notices 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–NYSEAmex–2011–43 on the subject line. Paper Comments sroberts on DSK5SPTVN1PROD with NOTICES • Send paper comments in triplicate to Elizabeth M. Murphy, Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549–1090. should be submitted on or before July 27, 2011. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.19 Cathy H. Ahn, Deputy Secretary. [FR Doc. 2011–16887 Filed 7–5–11; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–64772; File No. SR– NYSEAmex–2011–44] Self-Regulatory Organizations; NYSE Amex LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Extending the Operation of Its Supplemental Liquidity Providers Pilot Until the Earlier of the Securities and Exchange Commission’s Approval To Make Such Pilot Permanent or January 31, 2012 June 29, 2011. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’),1 and Rule 19b–4 thereunder,2 notice is hereby given that on June 21, 2011, NYSE Amex LLC (‘‘NYSEAmex’’ or the ‘‘Exchange’’) filed with the All submissions should refer to File Number SR–NYSEAmex–2011–43. This Securities and Exchange Commission (‘‘Commission’’) the proposed rule file number should be included on the subject line if e-mail is used. To help the change as described in Items I, II, and III below, which Items have been Commission process and review your prepared by the Exchange. The comments more efficiently, please use only one method. The Commission will Commission is publishing this notice to post all comments on the Commission’s solicit comments on the proposed rule change from interested persons. Internet Web site (https://www.sec.gov/ rules/sro.shtml). Copies of the I. Self-Regulatory Organization’s submission, all subsequent Statement of the Terms of the Substance amendments, all written statements of the Proposed Rule Change with respect to the proposed rule The Exchange proposes to extend the change that are filed with the operation of its Supplemental Liquidity Commission, and all written Providers Pilot (‘‘SLP Pilot’’ or ‘‘Pilot’’) communications relating to the (See Rule 107B—NYSE Amex Equities), proposed rule change between the Commission and any person, other than currently scheduled to expire on August 1, 2011, until the earlier of the those that may be withheld from the Securities and Exchange Commission’s public in accordance with the (‘‘Commission’’) approval to make such provisions of 5 U.S.C. 552, will be Pilot permanent or January 31, 2012. available for Web site viewing and The text of the proposed rule change is printing in the Commission’s Public available at the Exchange, the Reference Room on official business Commission’s Public Reference Room, days between the hours of 10 a.m. and and https://www.nyse.com. 3 p.m. Copies of such filing also will be available for inspection and copying at II. Self-Regulatory Organization’s the principal offices of the Exchange. Statement of the Purpose of, and All comments received will be posted Statutory Basis for, the Proposed Rule without change; the Commission does Change not edit personal identifying In its filing with the Commission, the information from submissions. You Exchange included statements should submit only information that you wish to make available publicly. All 19 17 CFR 200.30–3(a)(12). submissions should refer to File 1 15 U.S.C. 78s(b)(1). Number SR–NYSEAmex–2011–43, and 2 17 CFR 240.19b–4. VerDate Mar<15>2010 18:17 Jul 05, 2011 Jkt 223001 PO 00000 Frm 00080 Fmt 4703 Sfmt 4703 39455 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 these 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 aspects 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 Supplemental Liquidity Providers Pilot,3 currently scheduled to expire on August 1, 2011, until the earlier of Commission approval to make such Pilot permanent or January 31, 2012. Background 4 In October 2008, the New York Stock Exchange LLC (‘‘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 NYSE. These changes were all elements of the NYSE’s and the Exchange’s enhanced market model referred to as the ‘‘New Market Model’’ (‘‘NMM Pilot’’).5 The NYSE SLP 3 See Securities Exchange Act Release No. 61308 (January 7, 2010), 75 FR 2573 (January 15, 2010) (SR–NYSEAmex–2009–98) (establishing the NYSE Amex Equities SLP Pilot). See also Securities Exchange Act Release Nos. 61841 (April 5, 2010), 75 FR 18560 (April 12, 2010) (SR–NYSEAmex– 2010–33) (extending the operation of the SLP Pilot to September 30, 2010); 62814 (September 1, 2010), 75 FR 54671 (September 8, 2010) (SR–NYSEAmex– 2010–88) (extending the operation of the SLP Pilot to January 31, 2011); 58877 (October 29, 2008), 73 FR 65904 (November 5, 2008) (SR–NYSE–2008– 108) (establishing the SLP Pilot); 59869 (May 6, 2009), 74 FR 22796 (May 14, 2009) (SR–NYSE– 2009–46) (extending the operation of the SLP Pilot to October 1, 2009); 60756 (October 1, 2009), 74 FR 51628 (October 7, 2009) (SR–NYSE–2009–100) (extending the operation of the New Market Model and the SLP Pilots to November 30, 2009); 61075 (November 30, 2009), 74 FR 64112 (December 7, 2009) (SR–NYSE–2009–119) (extending the operation of the SLP Pilot to March 30, 2010); 61840 (April 5, 2010), 75 FR 18563 (April 12, 2010) (SR–NYSE–2010–28) (extending the operation of the SLP Pilot to September 30, 2010); 62813 (September 1, 2010), 75 FR 54686 (September 8, 2010) (SR–NYSE–2010–62) (extending the operation of the SLP Pilot to January 31, 2011); and 63615 (December 29, 2010), 76 FR 611 (January 5, 2011) (SR–NYSEAmex–2010–123) (extending the operation of the SLP Pilot to August 1, 2011). 4 The information contained herein is a summary of the NMM Pilot and the SLP Pilot. See supra note 4 [sic] and infra note 6 [sic] for a fuller description of those pilots. 5 See Securities Exchange Act Release No. 58845 (October 24, 2008), 73 FR 64379 (October 29, 2008) (SR–NYSE–2008–46). E:\FR\FM\06JYN1.SGM 06JYN1 39456 Federal Register / Vol. 76, No. 129 / Wednesday, July 6, 2011 / Notices Pilot was launched in coordination with the NMM Pilot (see NYSE Rule 107B). 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 Separately, the NYSE established the SLP Pilot, which established SLPs as a new class of market participants to supplement the liquidity provided by DMMs.7 The NYSE adopted NYSE Rule 107B governing SLPs as a six-month pilot program commencing in November 2008. This NYSE pilot has been extended several times, most recently to August 1, 2011.8 The NYSE is in the process of requesting an extension of their SLP Pilot until January 31, 2012 or until the Commission approves the pilot as permanent.9 The extension of the NYSE SLP Pilot until January 31, 2012 runs parallel with the extension of the NMM pilot until January 31, 2012, or until the Commission approves the NMM Pilot as permanent. Proposal to Extend the Operation of the NYSE Amex Equities SLP Pilot NYSE Amex Equities established the SLP Pilot to provide incentives for quoting, to enhance competition among the existing group of liquidity providers, including the DMMs, and add new competitive market participants. NYSE Amex Equities Rule 107B is based on NYSE Rule 107B. NYSE Amex Rule 107B was filed with the Commission on December 30, 2009, as a ‘‘me too’’ filing for immediate effectiveness as a pilot program.10 The NYSE Amex Equities SLP Pilot is scheduled to end operation on August 1, 2011 or such earlier time as the Commission may determine to make the rules permanent. The Exchange believes that the SLP Pilot, in coordination with the NMM 6 See NYSE Rule 103. NYSE and NYSE Amex Equities Rules 107B. 8 See Securities Exchange Act Release Nos. 58877 (October 29, 2008), 73 FR 65904 (November 5, 2008) (SR–NYSE–2008–108) (adopting SLP pilot program); 59869 (May 6, 2009), 74 FR 22796 (May 14, 2009) (SR–NYSE–2009–46) (extending SLP pilot program until October 1, 2009); 60756 (October 1, 2009), 74 FR 51628 (October 7, 2009) (SR–NYSE– 2009–100) (extending SLP pilot program until November 30, 2009); 61075 (November 30, 2009), 74 FR 64112 (December 7, 2009) (SR–NYSE–2009– 119) (extending SLP pilot program until March 30, 2010); 61840 (April 5, 2010), 75 FR 18563 (April 12, 2010) (SR–NYSE–2010–28) (extending the SLP Pilot until September 30, 2010); 62813 (September 1, 2010), 75 FR 54686 (September 8, 2010) (SR–NYSE– 2010–62) (extending the SLP Pilot until January 31, 2011); and 63616 (December 29, 2010), 76 FR 612 (January 5, 2011) (SR–NYSE–2010–86) (extending the operation of the SLP Pilot to August 1, 2011). 9 See SR–NYSE–2011–30. 10 See Securities Exchange Act Release No. 61308 (January 7, 2010), 75 FR 2573 (January 15, 2010) (SR–NYSEAmex–2009–98). sroberts on DSK5SPTVN1PROD with NOTICES 7 See VerDate Mar<15>2010 18:17 Jul 05, 2011 Jkt 223001 Pilot and the NYSE SLP 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 SLP Pilot (NYSE Amex Equities Rule 107B) should be made permanent. Through this filing the Exchange seeks to extend the current operation of the SLP Pilot until January 31, 2012, in order to allow the Exchange to formally submit a filing to the Commission to convert the Pilot rule to a permanent rule. The Exchange is currently preparing a rule filing seeking permission to make the NYSE Amex Equities SLP Pilot permanent, but does not expect that filing to be completed and approved by the Commission before August 1, 2011.11 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 SLP Pilot provides its market participants with a trading venue that utilizes an enhanced market structure to encourage the addition of liquidity and operates to reward aggressive liquidity providers. Moreover, the instant filing requesting an extension of the SLP Pilot will permit adequate time for: (i) The Exchange to prepare and submit a filing to make the rules governing the SLP 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. 11 The NMM Pilot was scheduled to expire on August 1, 2011 as well. On June 21, 2011, the NYSE filed to extend the NMM Pilot until January 31, 2012 (See SR–NYSE–2011–29) (extending the operation of the New Market Model Pilot to January 31, 2012). PO 00000 Frm 00081 Fmt 4703 Sfmt 4703 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 Exchange has filed the proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act 12 and Rule 19b–4(f)(6) thereunder.13 Because the proposed rule change does not: (i) Significantly affect the protection of investors or the public interest; (ii) impose any significant burden on competition; and (iii) become operative prior to 30 days from the date on which it was filed, 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 and Rule 19b–4(f)(6)(iii) thereunder.14 A proposed rule change filed under Rule 19b–4(f)(6) 15 normally does not become operative prior to 30 days after the date of the filing. However, pursuant to Rule 19b–4(f)(6)(iii),16 the Commission may designate a shorter time if such action is consistent with the protection of investors and the public interest. At any time within 60 days of the filing of such 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: 12 15 U.S.C. 78s(b)(3)(A)(iii). CFR 240.19b–4(f)(6). 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. 15 17 CFR 240.19b–4(f)(6). 16 17 CFR 240.19b–4(f)(6)(iii). 13 17 E:\FR\FM\06JYN1.SGM 06JYN1 Federal Register / Vol. 76, No. 129 / Wednesday, July 6, 2011 / Notices 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–NYSEAmex–2011–44 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. SECURITIES AND EXCHANGE COMMISSION [Release No. 34–64770; File No. SR–Phlx– 2011–87] Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by NASDAQ OMX PHLX LLC Relating to Listing and Trading Various Russell Products June 29, 2011. sroberts on DSK5SPTVN1PROD with NOTICES Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’),1 and Rule 19b–4 2 thereunder, notice is hereby given that on June 22, 2011, NASDAQ OMX PHLX LLC (‘‘Phlx’’ or ‘‘Exchange’’) filed with the All submissions should refer to File Securities and Exchange Commission Number SR–NYSEAmex–2011–44. This (‘‘SEC’’ or ‘‘Commission’’) the proposed file number should be included on the rule change as described in Items I, II, subject line if e-mail is used. To help the and III, below, which Items have been Commission process and review your prepared by the Exchange. The comments more efficiently, please use Commission is publishing this notice to only one method. The Commission will solicit comments on the proposed rule post all comments on the Commission’s change from interested persons. Internet Web site (https://www.sec.gov/ I. Self-Regulatory Organization’s rules/sro.shtml). Copies of the Statement of the Terms of the Substance submission, all subsequent of the Proposed Rule Change amendments, all written statements The Exchange, pursuant to Section with respect to the proposed rule 19(b)(1) of the Act 3 and Rule 19b–4 change that are filed with the thereunder,4 proposes to amend Commission, and all written Exchange Rules 1079, 1001A and 1101A communications relating to the to list and trade new options on various proposed rule change between the Russell 5 Indexes based upon the (i) full Commission and any person, other than values of the Russell U.S. Indexes (‘‘Full those that may be withheld from the Value Russell U.S. Indexes’’) and (ii) public in accordance with the one-tenth values of the Russell U.S. provisions of 5 U.S.C. 552, will be Indexes (‘‘Reduced Values Russell U.S. available for Web site viewing and Indexes’’).6 The text of the proposed printing in the Commission’s Public rule change is available on the Reference Room on official business Exchange’s Web site at https:// days between the hours of 10 a.m. and www.nasdaqtrader.com/ 3 p.m. Copies of such filing also will be micro.aspx?id=PHLXRulefilings, at the available for inspection and copying at principal office of the Exchange, and at the principal offices of the Exchange. the Commission’s Public Reference All comments received will be posted Room. without change; the Commission does II. Self-Regulatory Organization’s not edit personal identifying Statement of the Purpose of, and information from submissions. You Statutory Basis for, the Proposed Rule should submit only information that Change you wish to make available publicly. All In its filing with the Commission, the submissions should refer to File Exchange included statements Number SR–NYSEAmex–2011–44, and concerning the purpose of and basis for should be submitted on or before July the proposed rule change and discussed 27, 2011. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.17 Cathy H. Ahn, Deputy Secretary. [FR Doc. 2011–16888 Filed 7–5–11; 8:45 am] BILLING CODE 8011–01–P 17 17 CFR 200.30–3(a)(12). VerDate Mar<15>2010 18:17 Jul 05, 2011 Jkt 223001 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 15 U.S.C. 78s(b)(1). 4 17 CFR 240.19b–4. 5 Russell refers to the Frank Russell Company. Information about the Russell U.S. Indexes can also be found at https://www.russell.com/us/indexes/us/ definitions.asp. 6 The Exchange currently lists cash-settled, European-style FULL Value Russell Options and Reduced Value Russell Options, including FLEX options and LEAPS, on the Russell 2000® Index and the Mini-Russell 2000. PO 00000 1 15 2 17 Frm 00082 Fmt 4703 Sfmt 4703 39457 any comments it received on the proposed rule change. The text of these 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 aspects of such statements. A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The purpose of the proposed rule change is to amend its Exchange Rules 1079 (FLEX Index, Equity and Currency Options), 1001A (Position Limits), and 1101A (Terms of Options Contracts) to list and trade cash-settled, Europeanstyle options, including FLEX 7 options and LEAPS,8 on the following products (collectively ‘‘Russell U.S. Indexes’’): Russell 3000® Index,9 Russell 3000® Value Index,10 Russell 3000® Growth Index,11 Russell 2500TM Index,12 Russell 2500TM Value Index,13 Russell 2500TM Growth Index,14 Russell 2000® Value Index,15 Russell 2000® Growth 7 FLEX Options are flexible exchange-traded index, equity, or currency option contracts that provide investors the ability to customize basic option features including size, expiration date, exercise style, and certain exercise prices. FLEX Options may have expiration dates within five years. See Exchange Rules 1079 and 1012. 8 LEAPS or Long Term Equity Anticipation Securities are long term options that generally expire from twelve to thirty-nine months from the time they are listed. 9 The Russell 3000 Index measures the performance of the largest 3000 U.S. companies representing approximately 98% of the investable U.S. equity market. 10 The Russell 3000 Value Index measures the performance of the broad value segment of the U.S. equity universe. It includes those Russell 3000 companies with lower price-to-book ratios and lower forecasted growth values. 11 The Russell 3000 Growth Index measures the performance of the broad growth segment of the U.S. equity universe. It includes those Russell 3000 companies with higher price-to-book ratios and higher forecasted growth values. 12 The Russell 2500 Index measures the performance of the small to mid-cap segment of the U.S. equity universe, commonly referred to as ‘‘smid’’ cap. The Russell 2500 Index is a subset of the Russell 3000® Index. 13 The Russell 2500 Value Index measures the performance of the small to mid-cap value segment of the U.S. equity universe. It includes those Russell 2500 companies with lower price-to-book ratios and lower forecasted growth values. 14 The Russell 2500 Growth Index measures the performance of the small to mid-cap growth segment of the U.S. equity universe. It includes those Russell 2500 companies with higher price-tobook ratios and higher forecasted growth values. 15 The Russell 2000 Value Index measures the performance of small-cap value segment of the U.S. equity universe. It includes those Russell 2000 companies with lower price-to-book ratios and lower forecasted growth values. E:\FR\FM\06JYN1.SGM 06JYN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 76, Number 129 (Wednesday, July 6, 2011)]
[Notices]
[Pages 39455-39457]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-16888]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-64772; File No. SR-NYSEAmex-2011-44]


Self-Regulatory Organizations; NYSE Amex LLC; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change Extending the 
Operation of Its Supplemental Liquidity Providers Pilot Until the 
Earlier of the Securities and Exchange Commission's Approval To Make 
Such Pilot Permanent or January 31, 2012

 June 29, 2011.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that 
on June 21, 2011, NYSE Amex LLC (``NYSEAmex'' or the ``Exchange'') 
filed with the Securities and Exchange Commission (``Commission'') the 
proposed rule change as described in Items I, II, and III 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.
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I. Self-Regulatory Organization's Statement of the Terms of the 
Substance of the Proposed Rule Change

    The Exchange proposes to extend the operation of its Supplemental 
Liquidity Providers Pilot (``SLP Pilot'' or ``Pilot'') (See Rule 107B--
NYSE Amex Equities), currently scheduled to expire on August 1, 2011, 
until the earlier of the Securities and Exchange Commission's 
(``Commission'') approval to make such Pilot permanent or January 31, 
2012. 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 Exchange 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 these 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 aspects 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 Supplemental 
Liquidity Providers Pilot,\3\ currently scheduled to expire on August 
1, 2011, until the earlier of Commission approval to make such Pilot 
permanent or January 31, 2012.
---------------------------------------------------------------------------

    \3\ See Securities Exchange Act Release No. 61308 (January 7, 
2010), 75 FR 2573 (January 15, 2010) (SR-NYSEAmex-2009-98) 
(establishing the NYSE Amex Equities SLP Pilot). See also Securities 
Exchange Act Release Nos. 61841 (April 5, 2010), 75 FR 18560 (April 
12, 2010) (SR-NYSEAmex-2010-33) (extending the operation of the SLP 
Pilot to September 30, 2010); 62814 (September 1, 2010), 75 FR 54671 
(September 8, 2010) (SR-NYSEAmex-2010-88) (extending the operation 
of the SLP Pilot to January 31, 2011); 58877 (October 29, 2008), 73 
FR 65904 (November 5, 2008) (SR-NYSE-2008-108) (establishing the SLP 
Pilot); 59869 (May 6, 2009), 74 FR 22796 (May 14, 2009) (SR-NYSE-
2009-46) (extending the operation of the SLP Pilot to October 1, 
2009); 60756 (October 1, 2009), 74 FR 51628 (October 7, 2009) (SR-
NYSE-2009-100) (extending the operation of the New Market Model and 
the SLP Pilots to November 30, 2009); 61075 (November 30, 2009), 74 
FR 64112 (December 7, 2009) (SR-NYSE-2009-119) (extending the 
operation of the SLP Pilot to March 30, 2010); 61840 (April 5, 
2010), 75 FR 18563 (April 12, 2010) (SR-NYSE-2010-28) (extending the 
operation of the SLP Pilot to September 30, 2010); 62813 (September 
1, 2010), 75 FR 54686 (September 8, 2010) (SR-NYSE-2010-62) 
(extending the operation of the SLP Pilot to January 31, 2011); and 
63615 (December 29, 2010), 76 FR 611 (January 5, 2011) (SR-NYSEAmex-
2010-123) (extending the operation of the SLP Pilot to August 1, 
2011).
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Background \4\
---------------------------------------------------------------------------

    \4\ The information contained herein is a summary of the NMM 
Pilot and the SLP Pilot. See supra note 4 [sic] and infra note 6 
[sic] for a fuller description of those pilots.
---------------------------------------------------------------------------

    In October 2008, the New York Stock Exchange LLC (``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 NYSE. 
These changes were all elements of the NYSE's and the Exchange's 
enhanced market model referred to as the ``New Market Model'' (``NMM 
Pilot'').\5\ The NYSE SLP

[[Page 39456]]

Pilot was launched in coordination with the NMM Pilot (see NYSE Rule 
107B).
---------------------------------------------------------------------------

    \5\ See Securities Exchange Act Release No. 58845 (October 24, 
2008), 73 FR 64379 (October 29, 2008) (SR-NYSE-2008-46).
---------------------------------------------------------------------------

    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\ Separately, 
the NYSE established the SLP Pilot, which established SLPs as a new 
class of market participants to supplement the liquidity provided by 
DMMs.\7\
---------------------------------------------------------------------------

    \6\ See NYSE Rule 103.
    \7\ See NYSE and NYSE Amex Equities Rules 107B.
---------------------------------------------------------------------------

    The NYSE adopted NYSE Rule 107B governing SLPs as a six-month pilot 
program commencing in November 2008. This NYSE pilot has been extended 
several times, most recently to August 1, 2011.\8\ The NYSE is in the 
process of requesting an extension of their SLP Pilot until January 31, 
2012 or until the Commission approves the pilot as permanent.\9\ The 
extension of the NYSE SLP Pilot until January 31, 2012 runs parallel 
with the extension of the NMM pilot until January 31, 2012, or until 
the Commission approves the NMM Pilot as permanent.
---------------------------------------------------------------------------

    \8\ See Securities Exchange Act Release Nos. 58877 (October 29, 
2008), 73 FR 65904 (November 5, 2008) (SR-NYSE-2008-108) (adopting 
SLP pilot program); 59869 (May 6, 2009), 74 FR 22796 (May 14, 2009) 
(SR-NYSE-2009-46) (extending SLP pilot program until October 1, 
2009); 60756 (October 1, 2009), 74 FR 51628 (October 7, 2009) (SR-
NYSE-2009-100) (extending SLP pilot program until November 30, 
2009); 61075 (November 30, 2009), 74 FR 64112 (December 7, 2009) 
(SR-NYSE-2009-119) (extending SLP pilot program until March 30, 
2010); 61840 (April 5, 2010), 75 FR 18563 (April 12, 2010) (SR-NYSE-
2010-28) (extending the SLP Pilot until September 30, 2010); 62813 
(September 1, 2010), 75 FR 54686 (September 8, 2010) (SR-NYSE-2010-
62) (extending the SLP Pilot until January 31, 2011); and 63616 
(December 29, 2010), 76 FR 612 (January 5, 2011) (SR-NYSE-2010-86) 
(extending the operation of the SLP Pilot to August 1, 2011).
    \9\ See SR-NYSE-2011-30.
---------------------------------------------------------------------------

Proposal to Extend the Operation of the NYSE Amex Equities SLP Pilot
    NYSE Amex Equities established the SLP Pilot to provide incentives 
for quoting, to enhance competition among the existing group of 
liquidity providers, including the DMMs, and add new competitive market 
participants. NYSE Amex Equities Rule 107B is based on NYSE Rule 107B. 
NYSE Amex Rule 107B was filed with the Commission on December 30, 2009, 
as a ``me too'' filing for immediate effectiveness as a pilot 
program.\10\ The NYSE Amex Equities SLP Pilot is scheduled to end 
operation on August 1, 2011 or such earlier time as the Commission may 
determine to make the rules permanent.
---------------------------------------------------------------------------

    \10\ See Securities Exchange Act Release No. 61308 (January 7, 
2010), 75 FR 2573 (January 15, 2010) (SR-NYSEAmex-2009-98).
---------------------------------------------------------------------------

    The Exchange believes that the SLP Pilot, in coordination with the 
NMM Pilot and the NYSE SLP 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 SLP Pilot (NYSE Amex Equities Rule 107B) should be 
made permanent.
    Through this filing the Exchange seeks to extend the current 
operation of the SLP Pilot until January 31, 2012, in order to allow 
the Exchange to formally submit a filing to the Commission to convert 
the Pilot rule to a permanent rule. The Exchange is currently preparing 
a rule filing seeking permission to make the NYSE Amex Equities SLP 
Pilot permanent, but does not expect that filing to be completed and 
approved by the Commission before August 1, 2011.\11\
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    \11\ The NMM Pilot was scheduled to expire on August 1, 2011 as 
well. On June 21, 2011, the NYSE filed to extend the NMM Pilot until 
January 31, 2012 (See SR-NYSE-2011-29) (extending the operation of 
the New Market Model Pilot to January 31, 2012).
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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 SLP Pilot provides its market participants with a trading 
venue that utilizes an enhanced market structure to encourage the 
addition of liquidity and operates to reward aggressive liquidity 
providers. Moreover, the instant filing requesting an extension of the 
SLP Pilot will permit adequate time for: (i) The Exchange to prepare 
and submit a filing to make the rules governing the SLP 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

    The Exchange has filed the proposed rule change pursuant to Section 
19(b)(3)(A)(iii) of the Act \12\ and Rule 19b-4(f)(6) thereunder.\13\ 
Because the proposed rule change does not: (i) Significantly affect the 
protection of investors or the public interest; (ii) impose any 
significant burden on competition; and (iii) become operative prior to 
30 days from the date on which it was filed, 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 and Rule 19b-
4(f)(6)(iii) thereunder.\14\
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    \12\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \13\ 17 CFR 240.19b-4(f)(6).
    \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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    A proposed rule change filed under Rule 19b-4(f)(6) \15\ normally 
does not become operative prior to 30 days after the date of the 
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\16\ the Commission 
may designate a shorter time if such action is consistent with the 
protection of investors and the public interest.
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    \15\ 17 CFR 240.19b-4(f)(6).
    \16\ 17 CFR 240.19b-4(f)(6)(iii).
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    At any time within 60 days of the filing of such 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:

[[Page 39457]]

Electronic Comments

     Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
     Send an e-mail to rule-comments@sec.gov. Please include 
File Number SR-NYSEAmex-2011-44 on the subject line.

Paper Comments

     Send paper comments in triplicate to Elizabeth M. Murphy, 
Secretary, Securities and Exchange Commission, 100 F Street, NE., 
Washington, DC 20549-1090.

All submissions should refer to File Number SR-NYSEAmex-2011-44. 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 on 
official business days between the hours of 10 a.m. and 3 p.m. Copies 
of such filing also will be available for inspection and copying at the 
principal offices of the Exchange. All comments received will be posted 
without change; the Commission does not edit personal identifying 
information from submissions. You should submit only information that 
you wish to make available publicly. All submissions should refer to 
File Number SR-NYSEAmex-2011-44, and should be submitted on or before 
July 27, 2011.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\17\
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    \17\ 17 CFR 200.30-3(a)(12).
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Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-16888 Filed 7-5-11; 8:45 am]
BILLING CODE 8011-01-P

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