Self-Regulatory Organizations; NYSE Amex LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending Its Options Fee Schedule To Add Clarifying Language With Respect to Marketing Charges Generally and Marketing Charges for Directed Orders, and To Add New and Clarifying Language With Respect to Marketing Charges for Electronic Complex Orders, 57793-57795 [2011-23771]
Download as PDF
Federal Register / Vol. 76, No. 180 / Friday, September 16, 2011 / Notices
Although there do not appear to be any
issues relevant to approval or
disapproval which would be facilitated
by an oral presentation of views, data,
and arguments, the Commission will
consider, pursuant to Rule 19b–4, any
request for an opportunity to make an
oral presentation.19
Interested persons are invited to
submit written data, views and
arguments regarding whether the
proposed rule change should be
disapproved by October 17, 2011. Any
person who wishes to file a rebuttal to
any other person’s submission must file
that rebuttal by October 26, 2011.
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–NASDAQ–2011–073 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–NASDAQ–2011–073. 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
mstockstill on DSK4VPTVN1PROD with NOTICES
19 Section
19(b) (2) of the Act, as amended by the
Securities Act Amendments of 1975, Public Law
94–29 (June 4, 1975), grants the Commission
flexibility to determine what type of proceeding—
either oral or notice and opportunity for written
comments—is appropriate for consideration of a
particular proposal by a self-regulatory
organization. See Securities Act Amendments of
1975, Senate Comm. on Banking, Housing & Urban
Affairs, S. Rep. No. 75, 94th Cong., 1st Sess. 30
(1975).
VerDate Mar<15>2010
16:26 Sep 15, 2011
Jkt 223001
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 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–
NASDAQ–2011–073 and should be
submitted on or before October 17,
2011. Rebuttal comments should be
submitted by October 26, 2011.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.20
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011–23735 Filed 9–15–11; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–65314; File No. SR–
NYSEAmex–2011–69]
Self-Regulatory Organizations; NYSE
Amex LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Amending Its Options
Fee Schedule To Add Clarifying
Language With Respect to Marketing
Charges Generally and Marketing
Charges for Directed Orders, and To
Add New and Clarifying Language With
Respect to Marketing Charges for
Electronic Complex Orders
September 12, 2011.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that, on
September 6, 2011, NYSE Amex LLC
(the ‘‘Exchange’’ or ‘‘NYSE Amex’’) filed
with the Securities and Exchange
Commission (the ‘‘Commission’’) the
proposed rule change as described in
Items I, II, and III below, which Items
have been prepared by the selfregulatory 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 amend its
Options Fee Schedule (the ‘‘Schedule’’)
20 17
CFR 200.30–3(a)(57).
U.S.C. 78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
1 15
PO 00000
Frm 00082
Fmt 4703
Sfmt 4703
57793
to add clarifying language with respect
to marketing charges generally and
marketing charges for Directed Orders,
and to add new and clarifying language
with respect to marketing charges for
Electronic Complex Orders. The text of
the proposed rule change is available at
the Exchange, the Commission’s Public
Reference Room, on the Commission’s
Web site at https://www.sec.gov, 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 current Schedule in footnote 11
describes the distribution of the pool of
monies for marketing charges for nonDirected Orders, but does not include
any language addressing the marketing
charges for Directed Orders or
Electronic Complex Orders. Currently,
the pool of monies resulting from
collection of marketing charges on
electronic Directed Orders is controlled
by the NYSE Amex Options Market
Maker to which the order was directed.4
In addition, Electronic Complex Orders
are treated in the same manner as nonDirected Orders, and consequently, the
pool of monies resulting from collection
of marketing charges on such orders is
controlled by a Specialist or
e-Specialist.5
4 See, e.g., Securities Exchange Act Release No.
61849 (April 6, 2010), 75 FR 18556 (April 12, 2010)
(SR–NYSEAmex–2010–30).
5 The Exchange recently reinstituted the standard
marketing charges for Electronic Complex Order
executions that had been temporarily waived in
July 2010. See Securities Exchange Act Release No.
64524 (May 19, 2011), 76 FR 30412 (May 25, 2011)
(SR–NYSEAmex–2011–30). The Exchange had been
informed by several Order Flow Providers that the
absence of marketing charges for Customer
executions in the complex order book was
hindering their ability to route complex order flow
to the Exchange, particularly since competing
exchanges do allow for the collection of marketing
charges on complex orders. Consequently, the
Exchange recently resumed its prior practice of
Continued
E:\FR\FM\16SEN1.SGM
16SEN1
mstockstill on DSK4VPTVN1PROD with NOTICES
57794
Federal Register / Vol. 76, No. 180 / Friday, September 16, 2011 / Notices
After reviewing the current Schedule
and the manner in which marketing
charges are handled for Electronic
Complex Orders, the Exchange has
determined to add clarifying language to
the Schedule with respect to marketing
charges generally and marketing charges
for Directed Orders, and to add new and
clarifying language to it with respect to
marketing charges for Electronic
Complex Orders.6 The changes to the
Schedule are described below.
First, the Exchange proposes to
amend footnote 11 of its Schedule to
add a clarifying introductory statement
that the footnote applies only to
marketing charges.
Second, the current text in footnote 11
relating to the collection and
distribution of marketing charges for
non-Directed Orders would remain
unchanged. That text provides that the
pool of monies resulting from the
collection of marketing charges on
electronic non-Directed Order flow is
controlled by the Specialist or the
e-Specialist with superior volume
performance over the previous quarter
for distribution by the Exchange at the
direction of such Specialist or
e-Specialist to eligible payment
accepting firms. In making this
determination the Exchange, on a class
by class basis, evaluates Specialist and
e-Specialist performance based on the
number of electronic contracts executed
at NYSE Amex per class. The Specialist/
e-Specialist with the best volume
performance controls the pool of
marketing charges collected on
electronic non-Directed Order flow for
these issues for the following quarter.
Third, the Exchange proposes to add
text thereafter stating its existing policy
that the pool of monies resulting from
collection of marketing charges on
electronic Directed Order flow will be
controlled by the NYSE Amex Options
Market Maker to which the order was
directed, and distributed by the
Exchange at the direction of such NYSE
Amex Options Market Maker to
payment accepting firms.
Fourth, the Exchange proposes to add
new text to footnote 11 stating that an
ATP Holder that submits an Electronic
Complex Order to the Exchange may
designate an NYSE Amex Options
Market Maker to receive the marketing
charge and the pool of monies resulting
from the collection of such marketing
treating Electronic Complex Orders in the same
manner as any other orders for the purpose of
assessing payment for order flow charges in order
to remain competitive.
6 NYSE Amex is not proposing to change the
amount of the marketing charges as part of this rule
change.
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16:26 Sep 15, 2011
Jkt 223001
charges will be distributed by the
Exchange at the direction of such NYSE
Amex Options Market Maker to
payment accepting firms. If an ATP
Holder submits an Electronic Complex
Order to the Exchange without
designating an NYSE Amex Options
Market Maker, the pool of monies
resulting from the collection of such
marketing charges will be distributed in
the same manner as non-Directed Order
flow, as is currently the practice (and as
described above).
Finally, the Exchange proposes
technical changes to footnote 11 to
correct references to defined terms.
The Exchange is not proposing any
change to NYSE Amex Options Rule
900.3NY(s), which sets forth the
definition of Directed Order, NYSE
Amex Options Rule 964.1NY, which
discusses the conditions NYSE Amex
Options Specialists and Market Makers
must meet to receive Directed Orders, or
NYSE Amex Options Rule 980NY,
which governs Electronic Complex
Order trading and provides that the
Specialist Pool and Directed Order
Market Maker guaranteed participation
afforded in NYSE Amex Options Rule
964NY does not apply to executions
against an Electronic Complex Order.
The proposed change would only affect
the distribution of the pool of monies
resulting from marketing charges for
Electronic Complex Orders.
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’’),7 in general, and Section 6(b)(4)
of the Act,8 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 clarifying
changes to the Schedule described
above will provide more transparency to
the marketing charge practices on the
Exchange. The Exchange also believes
that providing ATP Holders with the
option to submit Electronic Complex
Orders to the Exchange and designate an
NYSE Amex Options Market Maker to
direct the resulting marketing charges
will help to attract additional Electronic
Complex Orders to the Exchange, which
will benefit all market participants. The
Exchange operates in a highly
competitive market comprised of nine
U.S. options exchanges in which
sophisticated and knowledgeable
market participants can readily send
7 15
8 15
PO 00000
U.S.C. 78f(b). [sic]
U.S.C. 78f(b)(4).
Frm 00083
Fmt 4703
order flow to competing exchanges if
they deem fee levels at a particular
exchange to be excessive or
discriminatory.
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) 9 of the Act and
subparagraph (f)(2) of Rule 19b–4 10
thereunder, because it establishes a due,
fee, or other charge imposed by the
NYSE Amex.
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:
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–2011–69 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-2011–69. This
9 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(2).
10 17
Sfmt 4703
E:\FR\FM\16SEN1.SGM
16SEN1
Federal Register / Vol. 76, No. 180 / Friday, September 16, 2011 / Notices
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 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–NYSEAmex-2011–69 and
should be submitted on or before
October 7, 2011.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011–23771 Filed 9–15–11; 8:45 am]
BILLING CODE 8011–01–P
DEPARTMENT OF TRANSPORTATION
Office of the Secretary
[Docket Number: DOT–OST–2011–0170]
Agency Request for Renewal of a
Previously Approved Collection;
Disclosure of Code Sharing
Arrangements and Long-Term Wet
Leases
Office of the Secretary.
Notice and request for
comments.
AGENCY:
mstockstill on DSK4VPTVN1PROD with NOTICES
ACTION:
The Department of
Transportation (DOT) invites public
comments about our intention to request
the Office of Management and Budget
(OMB) approval to renew an
information collection. We are required
SUMMARY:
11 17
CFR 200.30–3(a)(12).
VerDate Mar<15>2010
16:26 Sep 15, 2011
Jkt 223001
to publish this notice in the Federal
Register by the Paperwork Reduction
Act of 1995, Public Law 104–13.
DATES: Written comments should be
submitted by November 15, 2011.
ADDRESSES: You may submit comments
(identified by DOT Docket Number
OST–2011–0170) through one of the
following methods:
• Federal eRulemaking Portal: https://
www.regulations.gov. Follow the online
instructions for submitting comments.
• Fax: 1–202–493–2251.
• Mail or Hand Delivery: Docket
Management Facility; U.S. Department
of Transportation, 1200 New Jersey
Avenue, SE., West Building, Room
W12–140, Washington, DC 20590,
between 9 a.m. and 5 p.m., Monday
through Friday, except on Federal
Holidays.
FOR FURTHER INFORMATION CONTACT:
Aleta Best, (202) 493–0797, Office of the
Assistant Secretary for Aviation and
International Affairs, Office of the
Secretary, U.S. Department of
Transportation, 1200 New Jersey
Avenue, SE., Washington, DC 20590.
SUPPLEMENTARY INFORMATION: OMB
Control Number: 2105–0537.
Title: Disclosure of Code Sharing
Arrangements and Long-Term Wet
Leases.
Type of Review: Renewal of an
information collection.
Abstract: Codesharing is the name
given to a common airline industry
marketing practice where, by mutual
agreement between cooperating carriers,
at least one of the airline designator
codes used on a flight is different from
that of the airline operating the aircraft.
In one version, two or more airlines
each use their own designator codes on
the same aircraft operation. Although
only one airline operates the flight, each
airline in a codesharing arrangement
may hold out, market, and sell the flight
as its own in published schedules.
Codesharing also refers to other
arrangements, such as when a code on
a passenger’s ticket is not that of the
operator of the flight, but where the
operator does not also hold out the
service in its own name. Such
codesharing arrangements are common
between commuter air carriers and their
larger affiliates, and the number of
arrangements between U.S. air carriers
and foreign air carriers has also been
increasing. Arrangements falling into
this category are similar to leases of
aircraft with crew (wet leases).
The Department recognizes the strong
preference of air travelers for on-line
service (service by a single carrier) on
connecting flights over interline service
(service by multiple carriers).
PO 00000
Frm 00084
Fmt 4703
Sfmt 4703
57795
Codesharing arrangements are, in part, a
marketing response to this demand for
on-line service. Often, codesharing
partners offer services similar to those
available for on-line connections with
the goal of offering ‘‘seamless’’ service
(i.e., service where the transfers from
flight to flight or airline to airline are
facilitated). For example, they may
locate gates near each other to make
connections more convenient or
coordinate baggage handling to give
greater assurance that baggage will be
properly handled.
Codesharing arrangements can help
airlines operate more efficiently because
they can reduce costs by providing a
joint service with one aircraft rather
than operating separate services with
two aircraft. Particularly in thin
markets, this efficiency can lead to
increased price and service options for
consumers or enable the use of
equipment sized appropriately for the
market. Therefore, the Department
recognizes that codesharing, as well as
long-term wet leases, can offer
significant economic benefits.
Although codesharing and wet-lease
arrangements can offer significant
consumer benefits, they can also be
misleading unless consumers know that
the transportation they are considering
for purchase will not be provided by the
airline whose designator code is shown
on the ticket, schedule, or itinerary and
unless they know the identity of the
airline on which they will be flying. The
growth in the use of codesharing, wetleasing, and similar marketing tools,
particularly in international air
transportation, had given the
Department concern about whether the
then-current disclosure rules (14 CFR
399.88) protected the public interest
adequately and led the Department to
adopt specific regulations requiring the
disclosure of code-sharing arrangements
and long-term wet leases on March 15,
1999. (14 CFR part 257)
These regulations required U.S.
airlines, foreign airlines and travel
agents doing business in the United
States, to notify passengers of the
existence of code-sharing or long-term
wet lease arrangements. It also required
U.S. airlines, foreign airlines and travel
agents to tell prospective consumers, in
all oral communications before booking
transportation, that the transporting
airline is not the airline whose
designator code will appear on travel
documents and identify the transporting
airline by its corporate name and any
other name under which that service is
held out to the public.
Respondents: All U.S. air carriers,
foreign air carriers, computer
reservations systems (CRSs), and travel
E:\FR\FM\16SEN1.SGM
16SEN1
Agencies
[Federal Register Volume 76, Number 180 (Friday, September 16, 2011)]
[Notices]
[Pages 57793-57795]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-23771]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-65314; File No. SR-NYSEAmex-2011-69]
Self-Regulatory Organizations; NYSE Amex LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change Amending Its
Options Fee Schedule To Add Clarifying Language With Respect to
Marketing Charges Generally and Marketing Charges for Directed Orders,
and To Add New and Clarifying Language With Respect to Marketing
Charges for Electronic Complex Orders
September 12, 2011.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby
given that, on September 6, 2011, NYSE Amex LLC (the ``Exchange'' or
``NYSE Amex'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I, II,
and III 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\ 15 U.S.C. 78a.
\3\ 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 Options Fee Schedule (the
``Schedule'') to add clarifying language with respect to marketing
charges generally and marketing charges for Directed Orders, and to add
new and clarifying language with respect to marketing charges for
Electronic Complex Orders. The text of the proposed rule change is
available at the Exchange, the Commission's Public Reference Room, on
the Commission's Web site at https://www.sec.gov, 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 current Schedule in footnote 11 describes the distribution of
the pool of monies for marketing charges for non-Directed Orders, but
does not include any language addressing the marketing charges for
Directed Orders or Electronic Complex Orders. Currently, the pool of
monies resulting from collection of marketing charges on electronic
Directed Orders is controlled by the NYSE Amex Options Market Maker to
which the order was directed.\4\ In addition, Electronic Complex Orders
are treated in the same manner as non-Directed Orders, and
consequently, the pool of monies resulting from collection of marketing
charges on such orders is controlled by a Specialist or e-
Specialist.\5\
---------------------------------------------------------------------------
\4\ See, e.g., Securities Exchange Act Release No. 61849 (April
6, 2010), 75 FR 18556 (April 12, 2010) (SR-NYSEAmex-2010-30).
\5\ The Exchange recently reinstituted the standard marketing
charges for Electronic Complex Order executions that had been
temporarily waived in July 2010. See Securities Exchange Act Release
No. 64524 (May 19, 2011), 76 FR 30412 (May 25, 2011) (SR-NYSEAmex-
2011-30). The Exchange had been informed by several Order Flow
Providers that the absence of marketing charges for Customer
executions in the complex order book was hindering their ability to
route complex order flow to the Exchange, particularly since
competing exchanges do allow for the collection of marketing charges
on complex orders. Consequently, the Exchange recently resumed its
prior practice of treating Electronic Complex Orders in the same
manner as any other orders for the purpose of assessing payment for
order flow charges in order to remain competitive.
---------------------------------------------------------------------------
[[Page 57794]]
After reviewing the current Schedule and the manner in which
marketing charges are handled for Electronic Complex Orders, the
Exchange has determined to add clarifying language to the Schedule with
respect to marketing charges generally and marketing charges for
Directed Orders, and to add new and clarifying language to it with
respect to marketing charges for Electronic Complex Orders.\6\ The
changes to the Schedule are described below.
---------------------------------------------------------------------------
\6\ NYSE Amex is not proposing to change the amount of the
marketing charges as part of this rule change.
---------------------------------------------------------------------------
First, the Exchange proposes to amend footnote 11 of its Schedule
to add a clarifying introductory statement that the footnote applies
only to marketing charges.
Second, the current text in footnote 11 relating to the collection
and distribution of marketing charges for non-Directed Orders would
remain unchanged. That text provides that the pool of monies resulting
from the collection of marketing charges on electronic non-Directed
Order flow is controlled by the Specialist or the e-Specialist with
superior volume performance over the previous quarter for distribution
by the Exchange at the direction of such Specialist or e-Specialist to
eligible payment accepting firms. In making this determination the
Exchange, on a class by class basis, evaluates Specialist and e-
Specialist performance based on the number of electronic contracts
executed at NYSE Amex per class. The Specialist/ e-Specialist with the
best volume performance controls the pool of marketing charges
collected on electronic non-Directed Order flow for these issues for
the following quarter.
Third, the Exchange proposes to add text thereafter stating its
existing policy that the pool of monies resulting from collection of
marketing charges on electronic Directed Order flow will be controlled
by the NYSE Amex Options Market Maker to which the order was directed,
and distributed by the Exchange at the direction of such NYSE Amex
Options Market Maker to payment accepting firms.
Fourth, the Exchange proposes to add new text to footnote 11
stating that an ATP Holder that submits an Electronic Complex Order to
the Exchange may designate an NYSE Amex Options Market Maker to receive
the marketing charge and the pool of monies resulting from the
collection of such marketing charges will be distributed by the
Exchange at the direction of such NYSE Amex Options Market Maker to
payment accepting firms. If an ATP Holder submits an Electronic Complex
Order to the Exchange without designating an NYSE Amex Options Market
Maker, the pool of monies resulting from the collection of such
marketing charges will be distributed in the same manner as non-
Directed Order flow, as is currently the practice (and as described
above).
Finally, the Exchange proposes technical changes to footnote 11 to
correct references to defined terms.
The Exchange is not proposing any change to NYSE Amex Options Rule
900.3NY(s), which sets forth the definition of Directed Order, NYSE
Amex Options Rule 964.1NY, which discusses the conditions NYSE Amex
Options Specialists and Market Makers must meet to receive Directed
Orders, or NYSE Amex Options Rule 980NY, which governs Electronic
Complex Order trading and provides that the Specialist Pool and
Directed Order Market Maker guaranteed participation afforded in NYSE
Amex Options Rule 964NY does not apply to executions against an
Electronic Complex Order. The proposed change would only affect the
distribution of the pool of monies resulting from marketing charges for
Electronic Complex Orders.
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''),\7\ in general, and Section 6(b)(4) of the Act,\8\ 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 clarifying changes to the Schedule described above will
provide more transparency to the marketing charge practices on the
Exchange. The Exchange also believes that providing ATP Holders with
the option to submit Electronic Complex Orders to the Exchange and
designate an NYSE Amex Options Market Maker to direct the resulting
marketing charges will help to attract additional Electronic Complex
Orders to the Exchange, which will benefit all market participants. The
Exchange operates in a highly competitive market comprised of nine U.S.
options exchanges in which sophisticated and knowledgeable market
participants can readily send order flow to competing exchanges if they
deem fee levels at a particular exchange to be excessive or
discriminatory.
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\7\ 15 U.S.C. 78f(b). [sic]
\8\ 15 U.S.C. 78f(b)(4).
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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) \9\ of the Act and subparagraph (f)(2) of Rule 19b-
4 \10\ thereunder, because it establishes a due, fee, or other charge
imposed by the NYSE Amex.
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\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 17 CFR 240.19b-4(f)(2).
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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:
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-2011-69 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-2011-69. This
[[Page 57795]]
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 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-NYSEAmex-2011-69 and should be submitted on or before
October 7, 2011.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
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\11\ 17 CFR 200.30-3(a)(12).
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Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011-23771 Filed 9-15-11; 8:45 am]
BILLING CODE 8011-01-P