Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending its Price List To Change the Monthly Fees for the Use of Ports That Provide Connectivity to Its Equity Trading Systems, 1759-1761 [2012-318]

Download as PDF Federal Register / Vol. 77, No. 7 / Wednesday, January 11, 2012 / Notices is reasonable because the fees are not currently a significant source of revenue and the Exchange can instead cover any related costs via transaction fees and the annual trading license fee. 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) 6 of the Act and subparagraph (f)(2) of Rule 19b–4 7 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 email to rulecomments@sec.gov. Please include File Number SR–NYSEAmex–2011–108 on the subject line. pmangrum on DSK3VPTVN1PROD with NOTICES Paper Comments • Send paper comments in triplicate to Elizabeth M. Murphy, Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549–1090. 6 15 7 17 U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(2). VerDate Mar<15>2010 15:02 Jan 10, 2012 All submissions should refer to File Number SR–NYSEAmex-2011–108. This file number should be included on the subject line if email 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– NYSEAmex–2011–108 and should be submitted on or before February 1, 2012. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.8 Kevin M. O’Neill, Deputy Secretary. [FR Doc. 2012–316 Filed 1–10–12; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–66107; File No. SR–NYSE– 2011–72] Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending its Price List To Change the Monthly Fees for the Use of Ports That Provide Connectivity to Its Equity Trading Systems (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 notice is hereby given that, on December 30, 2011, New York Stock Exchange LLC (‘‘NYSE’’ 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. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend its Price List to change the monthly fees for the use of ports that provide connectivity to its equity trading systems. The text of the proposed rule change is available at the Exchange’s principal office, at www.nyse.com, at the Commission’s Public Reference Room, and at the Commission’s Web site at 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 to change the monthly fees for the use of ports that provide connectivity to its equity trading systems. Currently, the monthly fee for ports is $100 per pair per month up to five pairs, then $500 for each additional five pairs.3 For example, the fee for seven pairs of ports is $1,000 per month. Billing for ports is based on the number of ports on the third business day prior to the end of the month. The level of January 5, 2012. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 8 17 Jkt 226001 1759 PO 00000 CFR 200.30–3(a)(12). Frm 00095 Fmt 4703 Sfmt 4703 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 See Securities Exchange Act Release No. 63057 (October 6, 2010), 75 FR 63232 (October 14, 2010) (SR–NYSE–2010–70) (the ‘‘Adopting Release’’). 2 17 E:\FR\FM\11JAN1.SGM 11JAN1 1760 Federal Register / Vol. 77, No. 7 / Wednesday, January 11, 2012 / Notices activity with respect to a particular port does not affect the assessment of monthly fees, so even if a particular port that is available to a participant is not used, the participant is still billed for that port. The Exchanges proposes that the new fee would be $300 per pair per month up to five pairs, then $1,500 for each additional five pairs. For example, the fee for seven pairs of ports would be $3,000 per month. The Exchange notes that billing for ports would continue to be based on the number of ports on the third business day prior to the end of the month. In addition, the level of activity with respect to a particular port would still not affect the assessment of monthly fees, so even if a participant does not use a particular port that is available to the participant, the participant would still be billed for that port. Finally, as stated in the Adopting Release,4 the port fee is charged per participant. The Exchange proposes to clarify in the Price List that per participant means per member organization for purposes of the port fees.5 The Exchange proposes to make the rule change operative on January 1, 2012. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with Section 6(b) 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 constitutes an equitable allocation of fees, as all similarly situated member organizations and 4 See supra note 4. Exchange has a Common Customer Gateway (‘‘CCG’’) that accesses the equity trading systems that it shares with its affiliates, NYSE Amex LLC (‘‘NYSE Amex’’) and NYSE Arca, Inc. (‘‘NYSE Arca’’), and all ports connect to the CCG. See, e.g., Securities Exchange Act Release No. 64542 (May 25, 2011), 76 FR 31659 (June 1, 2011) (SR–NYSE– 2011–13). In the instance when an NYSE member organization is also an NYSE Amex member organization and it shares its ports, the same member is charged port fees based on the total number of ports connected to the CCG, whether they are used to trade on the Exchange, NYSE Amex, or both because those trading systems are integrated. The NYSE Arca Equities trading platform is not integrated in the same manner; therefore, it does not share its ports with the Exchange or NYSE Amex. An NYSE Arca ETP Holder is charged for each ETP identifier it uses to access the NYSE Arca Equities trading systems via a port connected to the CCG. 6 15 U.S.C. 78f(b). 7 15 U.S.C. 78f(b)(4). pmangrum on DSK3VPTVN1PROD with NOTICES 5 The VerDate Mar<15>2010 15:02 Jan 10, 2012 Jkt 226001 other market participants would be charged the same amount. In addition, access to the Exchange’s market would be offered on fair and nondiscriminatory terms. With respect to the increase in port fees, the proposed fee increase for ports is expected to offset increasing connectivity costs, including additional costs based on gateway software and hardware enhancements and resources dedicated to gateway development, quality assurance, and support. The Exchange believes that its fees are competitive with those charged by other venues, and that in some cases, its fee for port connectivity is less expensive than many of its primary competitors.8 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. B. Self-Regulatory Organization’s Statement on Burden on Competition Electronic Comments • Use the Commission’s Internet comment form (https://www.sec.gov/ rules/sro.shtml); or • Send an email to rulecomments@sec.gov. Please include File Number SR–NYSE–2011–72 on the subject line. 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. 8 See, e.g., NASDAQ OMX Price List—Trading & Connectivity, available at www.nasdaqtrader.com/ Trader.aspx?id=PriceListTrading2. The Exchange notes that the charge for connectivity to Nasdaq’s NY-Metro and Mid-Atlantic Datacenters is $500 per port pair/month (there is a separate charge for their Pre-Trade Risk Management ports which fees are capped at $25,000). See, e.g., BZX Exchange Fee Schedule, available at www.batstrading.com/ FeeSchedule. The Exchange notes that BZX charges $400 per month per pair (primary and secondary data center) of any logical port other than a Multicast PITCH Spin Server Port or GRP Port, but does provide multicast PITCH customers 12 free pairs of Multicast PITCH Spin Server Ports, and, if such ports are used, one free pair of GRP Ports; $400.00 per month per additional set of 12 pairs of Multicast PITCH Spin Server Ports or additional pair of GRP Ports. However, the Multicast PITCH Spin Server Ports and GRP ports relate to market data dissemination while the proposed port fee charge relates to connectivity to the Exchange, therefore the proposed fee change will still be lower to the equivalent BZX port fee charge of $400 per month per pair for a logical port. 9 15 U.S.C. 78s(b)(3)(A). 10 17 CFR 240.19b–4(f)(2). PO 00000 Frm 00096 Fmt 4703 Sfmt 4703 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–2011–72. This file number should be included on the subject line if email 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 E:\FR\FM\11JAN1.SGM 11JAN1 Federal Register / Vol. 77, No. 7 / Wednesday, January 11, 2012 / Notices available publicly. All submissions should refer to File Number SR–NYSE– 2011–72 and should be submitted on or before February 1, 2012. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.11 Kevin M. O’Neill, Deputy Secretary. [FR Doc. 2012–318 Filed 1–10–12; 8:45 a.m.] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–66112; File No. SR– NYSEArca–2011–80] Self-Regulatory Organizations; NYSE Arca, Inc.; Order Granting Approval of Proposed Rule Change To List and Trade Shares of the Rockledge SectorSAM ETF Under NYSE Arca Equities Rule 8.600 January 5, 2012. I. Introduction On November 3, 2011, NYSE Arca, Inc. (‘‘Exchange’’ or ‘‘NYSE Arca’’) filed with the Securities and Exchange Commission (‘‘Commission’’), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 a proposed rule change to list and trade shares (‘‘Shares’’) of the Rockledge SectorSAM ETF (‘‘Fund’’) under NYSE Arca Equities Rule 8.600. The proposed rule change was published in the Federal Register on November 23, 2011.3 The Commission received no comments on the proposal. This order grants approval of the proposed rule change. II. Description of the Proposal The Exchange proposes to list and trade the Shares of the Fund pursuant to NYSE Arca Equities Rule 8.600, which governs the listing and trading of Managed Fund Shares on the Exchange. The Shares will be offered by AdvisorShares Trust (‘‘Trust’’), a statutory trust organized under the laws of the State of Delaware and registered with the Commission as an open-end management investment company.4 The 11 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 See Securities Exchange Act Release No. 65778 (November 17, 2011), 76 FR 72474 (‘‘Notice’’). 4 The Trust is registered under the Investment Company Act of 1940 (‘‘1940 Act’’). On April 11, 2011, the Trust filed with the Commission PostEffective Amendment No. 23 to Form N–1A under the Securities Act of 1933 (15 U.S.C. 77a) and under the 1940 Act relating to the Fund (File Nos. 333– 157876 and 811–22110) (‘‘Registration Statement’’). In addition, the Commission has issued an order pmangrum on DSK3VPTVN1PROD with NOTICES 1 15 VerDate Mar<15>2010 15:02 Jan 10, 2012 Jkt 226001 investment adviser to the Fund is AdvisorShares Investments, LLC (‘‘Adviser’’). Rockledge Advisers LLC serves as investment sub-adviser to the Fund (‘‘Rockledge’’ or ‘‘Sub-Adviser’’) and provides day-to-day portfolio management of the Fund. Foreside Fund Services, LLC is the principal underwriter and distributor of the Fund’s Shares. The Bank of New York Mellon Corporation serves as administrator, custodian, and transfer agent for the Fund. The Exchange states that neither the Adviser nor the SubAdviser is affiliated with a brokerdealer.5 Description of the Fund The Fund is considered a ‘‘fund-offunds’’ that seeks to achieve its investment objective by primarily investing in other U.S.-listed exchangetraded funds (‘‘Underlying ETFs’’) that offer diversified exposure to U.S. large capitalization (generally, Standard & Poor 500 companies) sectors. The SubAdviser will use ‘‘Sector Scoring and Allocation Methodology’’ (‘‘SectorSAM’’), which is a proprietary quantitative analysis, to forecast each sector’s excess return within a specific time horizon. The Sub-Adviser will seek to achieve the Fund’s investment objective by buying (taking long positions in) Underlying ETFs intended to capture the performance of the most promising sectors and selling (establishing short positions) in Underlying ETFs with the intent of profiting from the least promising sectors of U.S. large capitalization broad market securities. The strategy is designed to generate higher returns in a higher interest rate environment, which is often associated with increased inflation.6 Under normal circumstances,7 the Fund intends to invest equal dollar granting exemptive relief to the Trust under the 1940 Act. See Investment Company Act Release No. 29291 (May 28, 2010) (File No. 812–13677) (‘‘Exemptive Order’’). 5 See Commentary .06 to NYSE Arca Equities Rule 8.600. The Exchange represents that, in the event (a) the Adviser or Sub-Adviser becomes newly affiliated with a broker-dealer, or (b) any new adviser or sub-adviser becomes affiliated with a broker-dealer, such adviser and/or sub-adviser will implement a fire wall with respect to such brokerdealer regarding access to information concerning the composition and/or changes to the portfolio, and will be subject to procedures designed to prevent the use and dissemination of material nonpublic information regarding such portfolio. 6 The Underlying ETFs are registered under the 1940 Act and will be listed and traded in the U.S. on registered exchanges. 7 The term ‘‘under normal circumstances’’ includes, but is not limited to, the absence of extreme volatility or trading halts in the equity markets or the financial markets generally; operational issues causing dissemination of PO 00000 Frm 00097 Fmt 4703 Sfmt 4703 1761 amounts to obtain both long and short exposure in the market at each major rebalancing point (on at least a monthly basis). When fully invested, the Fund will typically be both 100% long and 100% short of total portfolio value. The Sub-Adviser, in its discretion, may choose an additional long or short bias of up to 50% exposure, or may choose to hold amounts in cash or cash equivalents depending on its view of market conditions. The Underlying ETFs in which the Fund will invest will primarily be ETFs that hold substantially all of their assets in securities representing a specific index. The main risk of investing in index-based investments is the same as investing in a portfolio of securities comprising the index. The market prices of index-based investments will fluctuate in accordance with both changes in the market value of their underlying portfolio securities and due to supply and demand for the instruments on the exchanges on which they are traded (which may result in their trading at a discount or premium to their net asset values (‘‘NAVs’’)). The Fund, through its investment in Underlying ETFs, may invest in equity securities. Equity securities represent ownership interests in a company or partnership and consist of common stocks, preferred stocks, warrants to acquire common stock, securities convertible into common stock, and investments in master limited partnerships. The Fund, through its investment in Underlying ETFs, may invest in American Depositary Receipts (‘‘ADRs’’), as well as Global Depositary Receipts (‘‘GDRs’’, together with ADRs, ‘‘Depositary Receipts’’), which are certificates evidencing ownership of shares of a foreign issuer. Depositary Receipts may be sponsored or unsponsored. These certificates are issued by depositary banks and generally trade on an established market in the United States or elsewhere. The underlying shares are held in trust by a custodian bank or similar financial institution in the issuer’s home country. The depositary bank may not have physical custody of the underlying securities at all times and may charge fees for various services, including forwarding dividends and interest and corporate actions. ADRs are alternatives to directly purchasing the underlying foreign securities in their national markets and currencies. However, ADRs inaccurate market information; or force majeure type events such as systems failure, natural or manmade disaster, act of God, armed conflict, act of terrorism, riot or labor disruption or any similar intervening circumstance. E:\FR\FM\11JAN1.SGM 11JAN1

Agencies

[Federal Register Volume 77, Number 7 (Wednesday, January 11, 2012)]
[Notices]
[Pages 1759-1761]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-318]


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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-66107; File No. SR-NYSE-2011-72]


Self-Regulatory Organizations; New York Stock Exchange LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
Amending its Price List To Change the Monthly Fees for the Use of Ports 
That Provide Connectivity to Its Equity Trading Systems

January 5, 2012.
    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 December 30, 2011, New York Stock Exchange LLC (``NYSE'' 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.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend its Price List to change the monthly 
fees for the use of ports that provide connectivity to its equity 
trading systems. The text of the proposed rule change is available at 
the Exchange's principal office, at www.nyse.com, at the Commission's 
Public Reference Room, and at the Commission's Web site at 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 to change the monthly 
fees for the use of ports that provide connectivity to its equity 
trading systems.
    Currently, the monthly fee for ports is $100 per pair per month up 
to five pairs, then $500 for each additional five pairs.\3\ For 
example, the fee for seven pairs of ports is $1,000 per month. Billing 
for ports is based on the number of ports on the third business day 
prior to the end of the month. The level of

[[Page 1760]]

activity with respect to a particular port does not affect the 
assessment of monthly fees, so even if a particular port that is 
available to a participant is not used, the participant is still billed 
for that port.
---------------------------------------------------------------------------

    \3\ See Securities Exchange Act Release No. 63057 (October 6, 
2010), 75 FR 63232 (October 14, 2010) (SR-NYSE-2010-70) (the 
``Adopting Release'').
---------------------------------------------------------------------------

    The Exchanges proposes that the new fee would be $300 per pair per 
month up to five pairs, then $1,500 for each additional five pairs. For 
example, the fee for seven pairs of ports would be $3,000 per month. 
The Exchange notes that billing for ports would continue to be based on 
the number of ports on the third business day prior to the end of the 
month. In addition, the level of activity with respect to a particular 
port would still not affect the assessment of monthly fees, so even if 
a participant does not use a particular port that is available to the 
participant, the participant would still be billed for that port.
    Finally, as stated in the Adopting Release,\4\ the port fee is 
charged per participant. The Exchange proposes to clarify in the Price 
List that per participant means per member organization for purposes of 
the port fees.\5\
---------------------------------------------------------------------------

    \4\ See supra note 4.
    \5\ The Exchange has a Common Customer Gateway (``CCG'') that 
accesses the equity trading systems that it shares with its 
affiliates, NYSE Amex LLC (``NYSE Amex'') and NYSE Arca, Inc. 
(``NYSE Arca''), and all ports connect to the CCG. See, e.g., 
Securities Exchange Act Release No. 64542 (May 25, 2011), 76 FR 
31659 (June 1, 2011) (SR-NYSE-2011-13). In the instance when an NYSE 
member organization is also an NYSE Amex member organization and it 
shares its ports, the same member is charged port fees based on the 
total number of ports connected to the CCG, whether they are used to 
trade on the Exchange, NYSE Amex, or both because those trading 
systems are integrated. The NYSE Arca Equities trading platform is 
not integrated in the same manner; therefore, it does not share its 
ports with the Exchange or NYSE Amex. An NYSE Arca ETP Holder is 
charged for each ETP identifier it uses to access the NYSE Arca 
Equities trading systems via a port connected to the CCG.
---------------------------------------------------------------------------

    The Exchange proposes to make the rule change operative on January 
1, 2012.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) 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 constitutes an equitable allocation of fees, as all 
similarly situated member organizations and other market participants 
would be charged the same amount. In addition, access to the Exchange's 
market would be offered on fair and non-discriminatory terms.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

    With respect to the increase in port fees, the proposed fee 
increase for ports is expected to offset increasing connectivity costs, 
including additional costs based on gateway software and hardware 
enhancements and resources dedicated to gateway development, quality 
assurance, and support. The Exchange believes that its fees are 
competitive with those charged by other venues, and that in some cases, 
its fee for port connectivity is less expensive than many of its 
primary competitors.\8\
---------------------------------------------------------------------------

    \8\ See, e.g., NASDAQ OMX Price List--Trading & Connectivity, 
available at www.nasdaqtrader.com/Trader.aspx?id=PriceListTrading2. 
The Exchange notes that the charge for connectivity to Nasdaq's NY-
Metro and Mid-Atlantic Datacenters is $500 per port pair/month 
(there is a separate charge for their Pre-Trade Risk Management 
ports which fees are capped at $25,000). See, e.g., BZX Exchange Fee 
Schedule, available at www.batstrading.com/FeeSchedule. The Exchange 
notes that BZX charges $400 per month per pair (primary and 
secondary data center) of any logical port other than a Multicast 
PITCH Spin Server Port or GRP Port, but does provide multicast PITCH 
customers 12 free pairs of Multicast PITCH Spin Server Ports, and, 
if such ports are used, one free pair of GRP Ports; $400.00 per 
month per additional set of 12 pairs of Multicast PITCH Spin Server 
Ports or additional pair of GRP Ports. However, the Multicast PITCH 
Spin Server Ports and GRP ports relate to market data dissemination 
while the proposed port fee charge relates to connectivity to the 
Exchange, therefore the proposed fee change will still be lower to 
the equivalent BZX port fee charge of $400 per month per pair for a 
logical port.
---------------------------------------------------------------------------

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.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

    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 email to rule-comments@sec.gov. Please include 
File Number SR-NYSE-2011-72 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-2011-72. This file 
number should be included on the subject line if email 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

[[Page 1761]]

available publicly. All submissions should refer to File Number SR-
NYSE-2011-72 and should be submitted on or before February 1, 2012.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
---------------------------------------------------------------------------

    \11\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-318 Filed 1-10-12; 8:45 a.m.]
BILLING CODE 8011-01-P
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.