Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Proposing To Make Changes to Certain Fees and Credits Within the New York Stock Exchange LLC Price List, 67431-67433 [2012-27353]

Download as PDF Federal Register / Vol. 77, No. 218 / Friday, November 9, 2012 / Notices 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–OCC–2012–20 and should be submitted on or before November 30, 2012. For the Commission by the Division of Trading and Markets, pursuant to delegated authority.9 Kevin M. O’Neill, Deputy Secretary. [FR Doc. 2012–27354 Filed 11–8–12; 8:45 am] BILLING CODE 8011–01–P 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. SECURITIES AND EXCHANGE COMMISSION A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change [Release No. 34–68150; File No. SR–NYSE– 2012–56] 1. Purpose Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Proposing To Make Changes to Certain Fees and Credits Within the New York Stock Exchange LLC Price List November 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 October 22, 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. tkelley on DSK3SPTVN1PROD with NOTICES I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to make changes to certain fees and credits within its Price List, which the Exchange proposes to become operative on November 1, 2012. 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. 9 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 VerDate Mar<15>2010 17:34 Nov 08, 2012 Jkt 229001 The Exchange proposes to make changes to certain fees and credits within its Price List, which the Exchange proposes to become operative on November 1, 2012. Currently, for transactions in stocks with a per share stock price of $1.00 or more, the Exchange charges a transaction fee of $0.00055 per share for all market at-the-close (‘‘MOC’’) and limit at-the-close (‘‘LOC’’) orders from any member organizations that execute an average daily trading volume (‘‘ADV’’) of MOC and LOC activity on the Exchange in that month of at least 14 million shares. Member organizations that do not execute an ADV of MOC and LOC activity on the Exchange of at least 14 million shares are charged a transaction fee of $0.00095 per share. The Exchange proposes to modify the threshold for the $0.00055 transaction fee for MOC and LOC orders from an ADV of at least 14 million shares to an ADV of at least 0.375% of consolidated average daily volume in NYSE-listed securities during the billing month (‘‘NYSE CADV’’). The Exchange believes that modifying the transaction fee threshold for MOC and LOC orders with a per share stock price of $1.00 or more as proposed would provide a more flexible method by which member organizations may qualify for the lower fee for MOC and LOC orders by changing from a fixed volume to one that will adjust automatically based on higher or lower NYSE CADV. The Exchange believes that the proposed change would continue to allocate a lower fee to member organizations that make significant contributions to market quality by providing higher volumes of liquidity. PO 00000 Frm 00103 Fmt 4703 Sfmt 4703 67431 Currently, the Exchange provides a credit of $0.0018 per share for transactions in stocks with a per share stock price of $1.00 or more when adding displayed liquidity to the Exchange if either: (i) The member organization has ADV that adds liquidity to the Exchange during the billing month (‘‘Adding ADV,’’ which excludes any liquidity added by a Designated Market Maker (‘‘DMM’’)) that is at least 1.5% of NYSE CADV, and executes MOC and LOC orders of at least 0.375% of NYSE CADV; or (ii) The member organization has Adding ADV that is at least 0.8% of NYSE CADV, executes MOC and LOC orders of at least 0.12% of NYSE CADV, and adds liquidity to the Exchange as a Supplemental Liquidity Provider (‘‘SLP’’) for all assigned SLP securities in the aggregate (including shares of both an SLP proprietary trading unit (‘‘SLP-Prop’’) and an SLP market maker (‘‘SLMM’’) of the same member organization) of more than 0.25% of NYSE CADV. The Exchange proposes to modify the second method by which member organizations may qualify for the credit and add a third method by which member organizations may qualify for the credit when adding displayed liquidity. More specifically, the Exchange proposes to revise the second method to qualify for the credit such that a member organization would qualify for the credit if the member organization has Adding ADV that is at least 0.8% of NYSE CADV, executes MOC and LOC orders of at least 0.12% of NYSE CADV, and adds liquidity to the Exchange as a SLP for all assigned SLP securities in the aggregate (including shares of both an SLP-Prop and an SLMM of the same member organization) of more than 0.15% of NYSE CADV. Currently, a member organization would have to provide liquidity to the Exchange as an SLP for all assigned SLP securities in the aggregate of more than 0.25% of NYSE CADV, as opposed to the proposed 0.15% of NYSE CADV. The Exchange believes that reducing the threshold to 0.15% of NYSE CADV would allow more member organizations to qualify for the higher credit, and therefore, in turn, attract multiple sources of liquidity to the Exchange. Finally, the Exchange proposes that a member organization would qualify for the credit of $0.0018 per share if the member organization has ADV that adds liquidity in customer electronic orders to the Exchange (‘‘Customer Electronic Adding ADV,’’ which would exclude any liquidity added by a Floor broker, E:\FR\FM\09NON1.SGM 09NON1 67432 Federal Register / Vol. 77, No. 218 / Friday, November 9, 2012 / Notices DMM, or SLP) during the billing month that is at least 0.5% of NYSE CADV, executes MOC and LOC orders of at least 0.12% of NYSE CADV, and has Customer Electronic Adding ADV during the billing month that, taken as a percentage of NYSE CADV, is at least equal to the member organization’s Customer Electronic Adding ADV during September 2012 as a percentage of consolidated average daily volume in NYSE-listed securities during September 2012 (‘‘September 2012 NYSE CADV’’) plus 15%.3 For example, if a member organization’s Customer Electronic Adding ADV during September 2012 was 0.10% of September 2012 NYSE CADV, then the member organization’s Customer Electronic Adding ADV during the billing month must be at least 0.115% of NYSE CADV in order to qualify for the proposed credit. The Exchange believes that adding this third method by which member organizations may qualify for the $0.0018 per share credit would encourage additional displayed liquidity on the Exchange. In addition, the method would provide discounts that are reasonably related to the value to the Exchange’s market quality associated with higher volumes and would encourage multiple sources of liquidity by providing member organizations without a DMM, SLP, or Floor broker unit an alternative method to qualify for the credit when adding displayed liquidity. The proposed changes are not otherwise intended to address any other problem, and the Exchange is not aware of any significant problem that the affected member organizations would have in complying with the proposed changes. tkelley on DSK3SPTVN1PROD with NOTICES 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 3 For purposes of determining whether a firm that becomes a member organization after September 2012 qualifies for this proposed third method by which member organizations may qualify for the $0.0018 per share credit, the new member organization’s September 2012 NYSE CADV would be zero, and therefore, the member organization would only need to have Customer Electronic Adding ADV of at least 0.5% of NYSE CADV and execute MOC and LOC orders of at least 0.12% of NYSE CADV to qualify for the credit of $0.0018 per share. Additionally, the September 2012 NYSE CADV of a firm that becomes a member organization during September 2012 would be calculated based on the number of trading days during September 2012, not the number of trading days during September 2012 during which the firm was a member organization. 4 15 U.S.C. 78f(b). VerDate Mar<15>2010 17:34 Nov 08, 2012 Jkt 229001 furthers the objectives of Section 6(b)(4) 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 modifying the transaction fee threshold for MOC and LOC orders with a per share stock price of $1.00 or more is reasonable because it provides a more flexible method by which member organizations may qualify for the lower fee for MOC and LOC orders. In addition, the proposed change is reasonable because the threshold would adjust automatically based on higher or lower NYSE CADV. The Exchange believes that the proposed change to MOC and LOC orders is equitable and not unfairly discriminatory because all similarly situated member organizations would be subject to the same fee structure, which automatically adjusts based on prevailing market conditions, and would continue to allocate a lower fee to member organizations that make significant contributions to market quality by providing higher volumes of liquidity. The Exchange believes that modifying the second method by which member organizations may qualify for the credit of $0.0018 per share for transactions in stocks with a per share stock price of $1.00 or more when adding displayed liquidity is reasonable because lowering the threshold for SLP provide volume to 0.15% of NYSE CADV would allow more member organizations to qualify for the reduced fee, which in turn would attract multiple sources of liquidity to the Exchange. In addition, the proposed change is equitable and not unfairly discriminatory because it would continue to provide a higher credit to member organizations that is reasonably related to the value to the Exchange’s market quality associated with higher volumes. The Exchange believes the new method by which member organizations may qualify for the credit for transactions in stocks with a per share stock price of $1.00 or more when adding displayed liquidity is reasonable because it would encourage additional displayed liquidity on the Exchange. The Exchange believes the new method is equitable and not unfairly discriminatory because it is open to all member organizations on an equal basis and provides discounts that are reasonably related to the value to the Exchange’s market quality associated with higher volumes. In addition, the Exchange believes that the proposed change is equitable and not unfairly discriminatory because it would encourage multiple sources of liquidity by providing member organizations without a DMM, SLP, or Floor broker unit an alternative method to qualify for the credit. 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) 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. 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: 6 15 5 15 PO 00000 U.S.C. 78f(b)(4). Frm 00104 Fmt 4703 7 17 Sfmt 4703 E:\FR\FM\09NON1.SGM U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(2). 09NON1 Federal Register / Vol. 77, No. 218 / Friday, November 9, 2012 / Notices Electronic Comments SMALL BUSINESS ADMINISTRATION • 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–2012–56 on the subject line. Community Advantage Pilot Program • Send paper comments in triplicate to Elizabeth M. Murphy, Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549–1090. tkelley on DSK3SPTVN1PROD with NOTICES All submissions should refer to File Number SR–NYSE–2012–56. 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 10:00 a.m. and 3:00 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– 2012–56 and should be submitted on or before November 30, 2012. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.8 Kevin M. O’Neill, Deputy Secretary. [FR Doc. 2012–27353 Filed 11–8–12; 8:45 am] BILLING CODE 8011–01–P CFR 200.30–3(a)(12). VerDate Mar<15>2010 17:34 Nov 08, 2012 The Community Advantage (‘‘CA’’) Pilot Program is a pilot program to increase SBA-guaranteed loans to small businesses in underserved areas. SBA continues to refine and improve the design of the Community Advantage Pilot Program. To support SBA’s commitment to expanding access to capital for small businesses and entrepreneurs in underserved markets, SBA is issuing this Notice to extend the term of the CA Pilot Program, to modify the loan loss reserve requirements for CA loans, and to revise other program requirements, including certain of the regulatory waivers. DATES: Effective Date: The changes to the CA Pilot Program identified in this Notice will be effective November 9, 2012, and the CA Pilot Program will remain in effect until March 15, 2017. Comment Date: Comments must be received on or before January 8, 2013. ADDRESSES: You may submit comments, identified by SBA docket number SBA– 2012–0016 by any of the following methods: • Federal eRulemaking Portal: https:// www.regulations.gov. Follow the instructions for submitting comments. • Mail: Community Advantage Pilot Program Comments—Office of Financial Assistance, U.S. Small Business Administration, 409 Third Street SW., Suite 8300, Washington, DC 20416. • Hand Delivery/Courier: Grady B. Hedgespeth, Director, Office of Financial Assistance, U.S. Small Business Administration, 409 Third Street SW., Washington, DC 20416. SBA will post all comments on www.regulations.gov. If you wish to submit confidential business information (CBI) as defined in the User Notice at www.regulations.gov, please submit the information to Grady B. Hedgespeth, Director, Office of Financial Assistance, U.S. Small Business Administration, 409 Third Street SW., Washington, DC 20416, or send an email to communityadvantage@sba.gov. Highlight the information that you consider to be CBI and explain why you believe SBA should hold this information as confidential. SBA will review the information and make the final determination whether it will publish the information. SUMMARY: Paper Comments 8 17 U.S. Small Business Administration. ACTION: Notice of extension of and changes to Community Advantage Pilot Program and request for comments. AGENCY: Jkt 229001 PO 00000 Frm 00105 Fmt 4703 Sfmt 4703 67433 FOR FURTHER INFORMATION CONTACT: Grady B. Hedgespeth, Director, Office of Financial Assistance, U.S. Small Business Administration, 409 Third Street SW., Washington DC 20416; (202) 205–7562; grady.hedgespeth@sba.gov. For information regarding revisions to the loan loss reserve requirements, contact Brent Ciurlino, Director, Office of Credit Risk Management, U.S. Small Business Administration, 409 Third Street SW., Washington DC 20416; (202) 205–6538; brent.ciurlino@sba.gov. SUPPLEMENTARY INFORMATION: 1. Background On February 18, 2011, SBA issued a notice and request for comments introducing the CA Pilot Program (76 FR 9626). The CA Pilot Program was introduced to increase the number of SBA-guaranteed loans made to small businesses in underserved markets. The February 18, 2011 notice provided an overview of the CA Pilot Program requirements and, pursuant to the authority provided to SBA under 13 CFR 120.3 to suspend, modify or waive certain regulations in establishing and testing pilot loan initiatives, SBA modified or waived as appropriate certain regulations which otherwise apply to 7(a) loans for the CA Pilot Program. On September 12, 2011, SBA issued a second notice modifying certain of those regulatory waivers in order to permit Community Advantage Lenders (‘‘CA Lenders’’) to pledge loans made under the CA Pilot Program (‘‘CA loans’’) as collateral for certain lender financings approved by SBA. (76 FR 56262). SBA continues to refine and improve the design of the CA Pilot Program and, on February 8, 2012, SBA issued a third notice revising certain program requirements in order to, among other things, change the maximum allowable interest rate for CA loans and permit CA Lenders to contract with Lender Service Providers. (77 FR 6619). To further support SBA’s commitment to expanding access to capital for small businesses and entrepreneurs in underserved markets, SBA is issuing this fourth notice to further revise program requirements as described more fully below. 2. Comments Although the extension of and changes to the CA Pilot Program will be effective November 9, 2012, comments are solicited from interested members of the public on all aspects of the CA Pilot Program. Comments must be submitted on or before the deadline for comments listed in the DATES section. The SBA will consider these comments and the E:\FR\FM\09NON1.SGM 09NON1

Agencies

[Federal Register Volume 77, Number 218 (Friday, November 9, 2012)]
[Notices]
[Pages 67431-67433]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-27353]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-68150; File No. SR-NYSE-2012-56]


Self-Regulatory Organizations; New York Stock Exchange LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
Proposing To Make Changes to Certain Fees and Credits Within the New 
York Stock Exchange LLC Price List

November 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 October 22, 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.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to make changes to certain fees and credits 
within its Price List, which the Exchange proposes to become operative 
on November 1, 2012. 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 fees and credits 
within its Price List, which the Exchange proposes to become operative 
on November 1, 2012.
    Currently, for transactions in stocks with a per share stock price 
of $1.00 or more, the Exchange charges a transaction fee of $0.00055 
per share for all market at-the-close (``MOC'') and limit at-the-close 
(``LOC'') orders from any member organizations that execute an average 
daily trading volume (``ADV'') of MOC and LOC activity on the Exchange 
in that month of at least 14 million shares. Member organizations that 
do not execute an ADV of MOC and LOC activity on the Exchange of at 
least 14 million shares are charged a transaction fee of $0.00095 per 
share. The Exchange proposes to modify the threshold for the $0.00055 
transaction fee for MOC and LOC orders from an ADV of at least 14 
million shares to an ADV of at least 0.375% of consolidated average 
daily volume in NYSE-listed securities during the billing month (``NYSE 
CADV'').
    The Exchange believes that modifying the transaction fee threshold 
for MOC and LOC orders with a per share stock price of $1.00 or more as 
proposed would provide a more flexible method by which member 
organizations may qualify for the lower fee for MOC and LOC orders by 
changing from a fixed volume to one that will adjust automatically 
based on higher or lower NYSE CADV. The Exchange believes that the 
proposed change would continue to allocate a lower fee to member 
organizations that make significant contributions to market quality by 
providing higher volumes of liquidity.
    Currently, the Exchange provides a credit of $0.0018 per share for 
transactions in stocks with a per share stock price of $1.00 or more 
when adding displayed liquidity to the Exchange if either:
    (i) The member organization has ADV that adds liquidity to the 
Exchange during the billing month (``Adding ADV,'' which excludes any 
liquidity added by a Designated Market Maker (``DMM'')) that is at 
least 1.5% of NYSE CADV, and executes MOC and LOC orders of at least 
0.375% of NYSE CADV; or
    (ii) The member organization has Adding ADV that is at least 0.8% 
of NYSE CADV, executes MOC and LOC orders of at least 0.12% of NYSE 
CADV, and adds liquidity to the Exchange as a Supplemental Liquidity 
Provider (``SLP'') for all assigned SLP securities in the aggregate 
(including shares of both an SLP proprietary trading unit (``SLP-
Prop'') and an SLP market maker (``SLMM'') of the same member 
organization) of more than 0.25% of NYSE CADV.
    The Exchange proposes to modify the second method by which member 
organizations may qualify for the credit and add a third method by 
which member organizations may qualify for the credit when adding 
displayed liquidity. More specifically, the Exchange proposes to revise 
the second method to qualify for the credit such that a member 
organization would qualify for the credit if the member organization 
has Adding ADV that is at least 0.8% of NYSE CADV, executes MOC and LOC 
orders of at least 0.12% of NYSE CADV, and adds liquidity to the 
Exchange as a SLP for all assigned SLP securities in the aggregate 
(including shares of both an SLP-Prop and an SLMM of the same member 
organization) of more than 0.15% of NYSE CADV. Currently, a member 
organization would have to provide liquidity to the Exchange as an SLP 
for all assigned SLP securities in the aggregate of more than 0.25% of 
NYSE CADV, as opposed to the proposed 0.15% of NYSE CADV. The Exchange 
believes that reducing the threshold to 0.15% of NYSE CADV would allow 
more member organizations to qualify for the higher credit, and 
therefore, in turn, attract multiple sources of liquidity to the 
Exchange.
    Finally, the Exchange proposes that a member organization would 
qualify for the credit of $0.0018 per share if the member organization 
has ADV that adds liquidity in customer electronic orders to the 
Exchange (``Customer Electronic Adding ADV,'' which would exclude any 
liquidity added by a Floor broker,

[[Page 67432]]

DMM, or SLP) during the billing month that is at least 0.5% of NYSE 
CADV, executes MOC and LOC orders of at least 0.12% of NYSE CADV, and 
has Customer Electronic Adding ADV during the billing month that, taken 
as a percentage of NYSE CADV, is at least equal to the member 
organization's Customer Electronic Adding ADV during September 2012 as 
a percentage of consolidated average daily volume in NYSE-listed 
securities during September 2012 (``September 2012 NYSE CADV'') plus 
15%.\3\ For example, if a member organization's Customer Electronic 
Adding ADV during September 2012 was 0.10% of September 2012 NYSE CADV, 
then the member organization's Customer Electronic Adding ADV during 
the billing month must be at least 0.115% of NYSE CADV in order to 
qualify for the proposed credit.
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    \3\ For purposes of determining whether a firm that becomes a 
member organization after September 2012 qualifies for this proposed 
third method by which member organizations may qualify for the 
$0.0018 per share credit, the new member organization's September 
2012 NYSE CADV would be zero, and therefore, the member organization 
would only need to have Customer Electronic Adding ADV of at least 
0.5% of NYSE CADV and execute MOC and LOC orders of at least 0.12% 
of NYSE CADV to qualify for the credit of $0.0018 per share. 
Additionally, the September 2012 NYSE CADV of a firm that becomes a 
member organization during September 2012 would be calculated based 
on the number of trading days during September 2012, not the number 
of trading days during September 2012 during which the firm was a 
member organization.
---------------------------------------------------------------------------

    The Exchange believes that adding this third method by which member 
organizations may qualify for the $0.0018 per share credit would 
encourage additional displayed liquidity on the Exchange. In addition, 
the method would provide discounts that are reasonably related to the 
value to the Exchange's market quality associated with higher volumes 
and would encourage multiple sources of liquidity by providing member 
organizations without a DMM, SLP, or Floor broker unit an alternative 
method to qualify for the credit when adding displayed liquidity.
    The proposed changes are not otherwise intended to address any 
other problem, and the Exchange is not aware of any significant problem 
that the affected member organizations would have in complying with the 
proposed changes.
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) 
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 modifying the transaction fee threshold 
for MOC and LOC orders with a per share stock price of $1.00 or more is 
reasonable because it provides a more flexible method by which member 
organizations may qualify for the lower fee for MOC and LOC orders. In 
addition, the proposed change is reasonable because the threshold would 
adjust automatically based on higher or lower NYSE CADV. The Exchange 
believes that the proposed change to MOC and LOC orders is equitable 
and not unfairly discriminatory because all similarly situated member 
organizations would be subject to the same fee structure, which 
automatically adjusts based on prevailing market conditions, and would 
continue to allocate a lower fee to member organizations that make 
significant contributions to market quality by providing higher volumes 
of liquidity.
    The Exchange believes that modifying the second method by which 
member organizations may qualify for the credit of $0.0018 per share 
for transactions in stocks with a per share stock price of $1.00 or 
more when adding displayed liquidity is reasonable because lowering the 
threshold for SLP provide volume to 0.15% of NYSE CADV would allow more 
member organizations to qualify for the reduced fee, which in turn 
would attract multiple sources of liquidity to the Exchange. In 
addition, the proposed change is equitable and not unfairly 
discriminatory because it would continue to provide a higher credit to 
member organizations that is reasonably related to the value to the 
Exchange's market quality associated with higher volumes.
    The Exchange believes the new method by which member organizations 
may qualify for the credit for transactions in stocks with a per share 
stock price of $1.00 or more when adding displayed liquidity is 
reasonable because it would encourage additional displayed liquidity on 
the Exchange. The Exchange believes the new method is equitable and not 
unfairly discriminatory because it is open to all member organizations 
on an equal basis and provides discounts that are reasonably related to 
the value to the Exchange's market quality associated with higher 
volumes. In addition, the Exchange believes that the proposed change is 
equitable and not unfairly discriminatory because it would encourage 
multiple sources of liquidity by providing member organizations without 
a DMM, SLP, or Floor broker unit an alternative method to qualify for 
the credit.
    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) \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.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78s(b)(3)(A).
    \7\ 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:

[[Page 67433]]

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-2012-56 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-2012-56. 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 
10:00 a.m. and 3:00 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-2012-56 and should be 
submitted on or before November 30, 2012.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\8\
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    \8\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-27353 Filed 11-8-12; 8:45 am]
BILLING CODE 8011-01-P
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