Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending the New York Stock Exchange LLC Price List To Make Changes to Certain Transaction Fees To Eliminate the Step-Up Rate for Non-Floor Broker Transactions, 56895-56896 [2012-22639]
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Federal Register / Vol. 77, No. 179 / Friday, September 14, 2012 / Notices
clearing, settling, processing
information with respect to, and
facilitating transactions in securities, to
remove impediments to and perfect the
mechanism for a free and open market
and a national market system and, in
general, to protect investors and the
public interest.
The Commission finds that the
proposed Supplementary Material to
NYSE Rule 76 removes impediments to
and perfects the mechanism of a free
and open market because the proposed
cross functionality is reasonably
designed to assist Floor Brokers’ ability
to cross orders on the Exchange,
particularly if there is significant quote
traffic with flickering prices, while
facilitating compliance with the tradethrough restrictions of Rule 611. Given
the rapid quotation changes in today’s
electronic markets, the Commission
believes that it is reasonable to allow
Floor Brokers a 20-second look-back
period in which to manually execute the
cross transaction without violating the
trade-through rule. The Commission
also notes that the proposal does not
otherwise change the operation of Rule
76. For example, the Floor Broker is still
required to expose the proposed cross
transaction to the trading crowd, and
the proposed cross transaction may be
broken up by members by trading with
either side of the proposed transaction
during the 20-second time period.
The Commission further notes that
the proposal would bring more
automation to the Exchange, which
could support more efficient executions
of the cross transactions. Moreover,
because the transaction terms will be
captured in an automated system, the
proposed cross functionality is
reasonably designed to provide a better
audit trail for manually crossed orders,
which may facilitate review of Floor
Broker transactions for purposes of
compliance with Rule 611.
IV. Conclusion
mstockstill on DSK4VPTVN1PROD with NOTICES
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,9 that the
proposed rule change (SR–NYSE–2012–
29) be, and it hereby is, approved.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2012–22637 Filed 9–13–12; 8:45 am]
BILLING CODE 8011–01–P
9 15
U.S.C. 78s(b)(2).
CFR 200.30–3(a)(12).
16:39 Sep 13, 2012
[Release No. 34–67814; File No. SR–NYSE–
2012–41]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change Amending the
New York Stock Exchange LLC Price
List To Make Changes to Certain
Transaction Fees To Eliminate the
Step-Up Rate for Non-Floor Broker
Transactions
September 10, 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 August
31, 2012, New York Stock Exchange
LLC (the ‘‘Exchange’’ or ‘‘NYSE’’) 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 make
changes to certain transaction fees
within its Price List to eliminate the
step-up rate for non-Floor broker
transactions. The text of the proposed
rule change is available on the
Exchange’s Web site at www.nyse.com,
at the principal office of the Exchange,
and at the Commission’s Public
Reference Room.
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.
1 15
10 17
VerDate Mar<15>2010
SECURITIES AND EXCHANGE
COMMISSION
2 17
Jkt 226001
PO 00000
U.S.C. 78s(b)(1).
CFR 240.19b–4.
Frm 00088
Fmt 4703
Sfmt 4703
56895
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to make
changes to certain transaction fees
within its Price List to eliminate the
step-up rate for non-Floor broker
transactions. The Exchange proposes to
make the rule change operative on
September 1, 2012.
Member organizations are currently
charged $0.0023 per share for all nonFloor broker transactions (i.e., when
taking liquidity from the NYSE) that are
not otherwise specified in the Price List.
In addition, non-Floor broker member
organizations that add specified
amounts of liquidity to the NYSE above
their normal amount (‘‘step-up’’) are
charged a lower rate of $0.0022 per
share per transaction. The lower rate
applies to non-Floor broker member
organizations if the member
organization’s ADV adds liquidity to the
NYSE during the billing month
(‘‘Adding ADV’’) 3 that is at least the
greater of (i) the member organization’s
January 2012 Adding ADV (‘‘Baseline
ADV’’) plus 0.075% of consolidated
average daily volume in NYSE-listed
securities during the billing month
(‘‘NYSE CADV’’) or (ii) the member
organization’s Baseline ADV plus 20%.
Additionally, if a member organization’s
ratio of Baseline ADV-to-total ADV
during January 2012 is less than 10%,
this rate only applies to the member
organization’s shares that are executed
in an amount up to and including
0.75% of NYSE CADV. The rate of
$0.0023 per-share applies to the member
organization’s remaining shares that are
executed, unless the member
organization’s Adding ADV is greater
than its Baseline ADV by at least 0.25%
of NYSE CADV.
The Exchange proposes to eliminate
this step-up rate so that member
organizations are charged $0.0023 per
share for all non-Floor broker
transactions that are not otherwise
specified in the Price List, regardless of
the level of adding liquidity.
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’’),4 in general, and
furthers the objectives of Section 6(b)(4)
3 With respect to this lower rate, calculations of
Adding ADV exclude early closing days as well as
any liquidity added by a Designated Market Maker.
4 15 U.S.C. 78f(b).
E:\FR\FM\14SEN1.SGM
14SEN1
mstockstill on DSK4VPTVN1PROD with NOTICES
56896
Federal Register / Vol. 77, No. 179 / Friday, September 14, 2012 / Notices
of the Act,5 in particular, because it
provides for the equitable allocation of
reasonable dues, fees, and other charges
among its members and issuers and
other persons using its facilities and
does not unfairly discriminate between
customers, issuers, brokers or dealers.
The Exchange believes that the
proposed rule change is reasonable,
equitable and not unfairly
discriminatory because it would
streamline the Price List with respect to
determining the particular credit
applicable to non-Floor broker
transactions that are not otherwise
specified in the Price List. Specifically,
the Exchange believes that eliminating
the step-up rate would simplify the
method by which member organizations
are charged for non-Floor broker
transactions. In addition, the criteria for
non-Floor broker transactions are
transparent and quantitative. The
Exchange also believes that eliminating
the step-up rate is reasonable because
member organizations will be charged
the same fee that was previously
charged by Exchange for all transactions
that are not otherwise specified in the
Price List.6 The Exchange believes that
the proposed rule change is reasonable
because eliminating the step-up rate
would remove a pricing tier from the
Price List that member organizations
have generally not utilized. The
Exchange believes it is reasonable,
equitable, and not unfairly
discriminatory to charge $0.0023 for
non-Floor broker transactions that take
liquidity and $0.0022 for Floor broker
transactions that take liquidity, because
Floor brokers have slower access to the
Exchange via handheld technology, and
Floor brokers are prohibited from
routing directly to other market centers
from handheld devices, which prevents
them from accessing any associated
pricing opportunities that might exist at
those away markets.
Finally, the Exchange notes that it
operates in a highly competitive market
in which market participants can
readily favor competing venues. In such
an environment, the Exchange must
continually review, and consider
adjusting, its fees and credits to remain
competitive with other exchanges. For
the reasons described above, the
Exchange believes that the proposed
rule change reflects this competitive
environment.
5 15
U.S.C. 78f(b)(4).
Securities Exchange Act Release No. 63642
(January 4, 2011), 76 FR 1653 (January 11, 2011)
(SR–NYSE–2010–87).
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) 7 of the Act and
subparagraph (f)(2) of Rule 19b–4 8
thereunder, because it establishes a due,
fee, or other charge imposed by the
NYSE.
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–NYSE–2012–41 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–2012–41. 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
16:39 Sep 13, 2012
Jkt 226001
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.9
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2012–22639 Filed 9–13–12; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–67817; File No. SR–EDGA–
2012–39]
Self-Regulatory Organizations; EDGA
Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Relating to Amendments
to the EDGA Exchange, Inc. Fee
Schedule
September 10, 2012.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on August
30, 2012 the EDGA Exchange, Inc. (the
‘‘Exchange’’ or the ‘‘EDGA’’) filed with
the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I, II and III below, which items
9 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
6 See
VerDate Mar<15>2010
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for Web site viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE.,
Washington, DC 20549, on official
business days between the hours of 10
a.m. and 3 p.m. Copies of the filing also
will be available for inspection and
copying at the principal office of the
Exchange. All comments received will
be posted without change; the
Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–NYSE–
2012–41 and should be submitted on or
before October 5, 2012.
7 15
U.S.C. 78s(b)(3)(A).
8 17 CFR 240.19b–4(f)(2).
PO 00000
Frm 00089
Fmt 4703
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Sfmt 4703
E:\FR\FM\14SEN1.SGM
14SEN1
Agencies
[Federal Register Volume 77, Number 179 (Friday, September 14, 2012)]
[Notices]
[Pages 56895-56896]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-22639]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-67814; File No. SR-NYSE-2012-41]
Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Amending the New York Stock Exchange LLC Price List To Make Changes to
Certain Transaction Fees To Eliminate the Step-Up Rate for Non-Floor
Broker Transactions
September 10, 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 August 31, 2012, New York Stock Exchange LLC (the ``Exchange''
or ``NYSE'') 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 make changes to certain transaction fees
within its Price List to eliminate the step-up rate for non-Floor
broker transactions. The text of the proposed rule change is available
on the Exchange's Web site at www.nyse.com, at the principal office of
the Exchange, and at the Commission's Public Reference Room.
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 make changes to certain transaction fees
within its Price List to eliminate the step-up rate for non-Floor
broker transactions. The Exchange proposes to make the rule change
operative on September 1, 2012.
Member organizations are currently charged $0.0023 per share for
all non-Floor broker transactions (i.e., when taking liquidity from the
NYSE) that are not otherwise specified in the Price List. In addition,
non-Floor broker member organizations that add specified amounts of
liquidity to the NYSE above their normal amount (``step-up'') are
charged a lower rate of $0.0022 per share per transaction. The lower
rate applies to non-Floor broker member organizations if the member
organization's ADV adds liquidity to the NYSE during the billing month
(``Adding ADV'') \3\ that is at least the greater of (i) the member
organization's January 2012 Adding ADV (``Baseline ADV'') plus 0.075%
of consolidated average daily volume in NYSE-listed securities during
the billing month (``NYSE CADV'') or (ii) the member organization's
Baseline ADV plus 20%. Additionally, if a member organization's ratio
of Baseline ADV-to-total ADV during January 2012 is less than 10%, this
rate only applies to the member organization's shares that are executed
in an amount up to and including 0.75% of NYSE CADV. The rate of
$0.0023 per-share applies to the member organization's remaining shares
that are executed, unless the member organization's Adding ADV is
greater than its Baseline ADV by at least 0.25% of NYSE CADV.
---------------------------------------------------------------------------
\3\ With respect to this lower rate, calculations of Adding ADV
exclude early closing days as well as any liquidity added by a
Designated Market Maker.
---------------------------------------------------------------------------
The Exchange proposes to eliminate this step-up rate so that member
organizations are charged $0.0023 per share for all non-Floor broker
transactions that are not otherwise specified in the Price List,
regardless of the level of adding liquidity.
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''),\4\ in general, and furthers the objectives of Section 6(b)(4)
[[Page 56896]]
of the Act,\5\ in particular, because it provides for the equitable
allocation of reasonable dues, fees, and other charges among its
members and issuers and other persons using its facilities and does not
unfairly discriminate between customers, issuers, brokers or dealers.
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78f(b).
\5\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
The Exchange believes that the proposed rule change is reasonable,
equitable and not unfairly discriminatory because it would streamline
the Price List with respect to determining the particular credit
applicable to non-Floor broker transactions that are not otherwise
specified in the Price List. Specifically, the Exchange believes that
eliminating the step-up rate would simplify the method by which member
organizations are charged for non-Floor broker transactions. In
addition, the criteria for non-Floor broker transactions are
transparent and quantitative. The Exchange also believes that
eliminating the step-up rate is reasonable because member organizations
will be charged the same fee that was previously charged by Exchange
for all transactions that are not otherwise specified in the Price
List.\6\ The Exchange believes that the proposed rule change is
reasonable because eliminating the step-up rate would remove a pricing
tier from the Price List that member organizations have generally not
utilized. The Exchange believes it is reasonable, equitable, and not
unfairly discriminatory to charge $0.0023 for non-Floor broker
transactions that take liquidity and $0.0022 for Floor broker
transactions that take liquidity, because Floor brokers have slower
access to the Exchange via handheld technology, and Floor brokers are
prohibited from routing directly to other market centers from handheld
devices, which prevents them from accessing any associated pricing
opportunities that might exist at those away markets.
---------------------------------------------------------------------------
\6\ See Securities Exchange Act Release No. 63642 (January 4,
2011), 76 FR 1653 (January 11, 2011) (SR-NYSE-2010-87).
---------------------------------------------------------------------------
Finally, the Exchange notes that it operates in a highly
competitive market in which market participants can readily favor
competing venues. In such an environment, the Exchange must continually
review, and consider adjusting, its fees and credits to remain
competitive with other exchanges. For the reasons described above, the
Exchange believes that the proposed rule change reflects this
competitive environment.
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) \7\ of the Act and subparagraph (f)(2) of Rule 19b-
4 \8\ thereunder, because it establishes a due, fee, or other charge
imposed by the NYSE.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78s(b)(3)(A).
\8\ 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-2012-41 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-2012-41. 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-NYSE-2012-41 and should be
submitted on or before October 5, 2012.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
---------------------------------------------------------------------------
\9\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-22639 Filed 9-13-12; 8:45 am]
BILLING CODE 8011-01-P