Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending Its Price List To Specify Pricing That Is Currently Applicable to Certain Executions on the Exchange, but That Is Not Currently Included in the Price List, 71026-71028 [2012-28799]
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71026
Federal Register / Vol. 77, No. 229 / Wednesday, November 28, 2012 / Notices
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–68283; File No. SR–NYSE–
2012–45]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change Amending Its
Price List To Specify Pricing That Is
Currently Applicable to Certain
Executions on the Exchange, but That
Is Not Currently Included in the Price
List
November 21, 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
November 9, 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 amend its
Price List to specify pricing that is
currently applicable to certain
executions on the Exchange, but that is
not currently included in the Price List.
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.
erowe on DSK2VPTVN1PROD with
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
2 17
U.S.C. 78s(b)(1).
CFR 240.19b–4.
VerDate Mar<15>2010
13:52 Nov 27, 2012
Jkt 229001
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange is proposing to amend
its Price List to specify pricing that is
currently applicable to certain
executions on the Exchange, but that is
not currently included in the Price List.
The Exchange proposes to make the
changes immediately effective and
operative.
Specifically, the Exchange proposes to
include the following changes to the
Price List to reflect pricing that is
currently being assessed for the
following intraday transactions: (1) A
$0.0005 fee for a Floor broker
discretionary e-Quote (‘‘d-Quote’’) that
takes liquidity in a security priced $1 or
above; (2) no charge (i.e., free) for a nonelectronic agency transaction of a Floor
broker that executes against the Book,
both in a security priced $1 or above
and in a security priced below $1; (3) no
charge for a non-electronic agency
transaction between Floor brokers in the
crowd in a security priced below $1;
and (4) no charge for an agency cross
trade (i.e., a trade where a member
organization has customer orders to buy
and sell an equivalent amount of the
same security) in a security priced
below $1.
d-Quotes
The Exchange proposes to specify in
the Price List that a d-Quote that
removes liquidity from the Book is
charged $0.0005 per share if the security
is priced $1 or above.3 A d-Quote that
adds liquidity to the Book in a security
priced $1 or above will continue to
receive a credit of $0.0019 per share.4
Similarly, a d-Quote that adds liquidity
to the Book in a security priced below
$1 will continue to receive a credit of
$0.0004 per share.5 Also, a d-Quote that
removes liquidity from the Book in a
security priced below $1 will continue
to be charged a fee equal to 0.3% of the
total dollar volume of the transaction.6
Non-Electronic Agency Transactions
The Exchange proposes to specify in
the Price List that a non-electronic
agency transaction of a Floor broker that
executes against the Book is not charged
3 The Exchange has charged for d-Quotes that
removed liquidity since October 2007.
4 This is in accordance with the current Price List
and therefore the Exchange is not proposing a new
or separate line item therein for this type of
transaction.
5 Id.
6 Id.
PO 00000
Frm 00036
Fmt 4703
Sfmt 4703
(i.e., it is free),7 both for a security
priced $1 or above and for a security
priced below $1.8 This is the same rate
(i.e., free) that is currently specified in
the Price List for non-electronic agency
transactions between Floor brokers in
the crowd in securities priced $1 or
above. In this regard, the Exchange also
proposes to specify in the Price List that
there is no charge for a non-electronic
agency transaction between Floor
brokers in the crowd in a security priced
below $1.9
Agency Cross Trades
The Price List currently specifies that
an agency cross trade is not charged for
a security priced $1 or above.10
Similarly, the Exchange proposes to
specify in the Price List that there is no
charge for an agency cross trade in a
security priced below $1.11
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’’),12 in general,
and furthers the objectives of Section
6(b)(4) of the Act,13 in particular,
because it provides for the equitable
allocation of reasonable dues, fees, and
other charges among its members,
issuers and other persons using its
facilities and does not unfairly
discriminate between customers,
issuers, brokers or dealers.
The Exchange believes that the
proposed d-Quote rate of $0.0005 per
share for securities priced $1 or above
is reasonable because, when compared
to the rate that would otherwise apply
(i.e., $0.0024 per share for all other
Floor broker transactions that take
liquidity from the Exchange) it may
encourage additional liquidity during
7 Because of the nature of non-electronic trading
interest (i.e., verbal/manual interest), the concept of
adding and removing liquidity is not applicable.
8 The Exchange began charging for a nonelectronic agency transaction of a Floor broker that
executed against the Book in October 2007.
Beginning in March 2009, the Exchange no longer
charged for this type of transaction.
9 The Exchange has not charged for a nonelectronic agency transaction between Floor brokers
in the crowd in a security priced below $1 since
October 2007, if the transaction was for 10,000
shares or more, and since March 2009, if the
transaction was for fewer than 10,000 shares.
10 Because of the nature of an agency cross trade
(i.e., the member organization already has customer
orders to buy and sell an equivalent amount of the
same security), the concept of adding and removing
liquidity is not applicable.
11 The Exchange has not charged for an agency
cross trade in a security priced below $1 since
October 2007, if the transaction was for 10,000
shares or more, and since March 2009, if the
transaction was for fewer than 10,000 shares.
12 15 U.S.C. 78f(b).
13 15 U.S.C. 78f(b)(4).
E:\FR\FM\28NON1.SGM
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Federal Register / Vol. 77, No. 229 / Wednesday, November 28, 2012 / Notices
erowe on DSK2VPTVN1PROD with
the trading day and may incentivize
Floor brokers to provide additional
intra-quote price improved trading,
which would contribute to the quality of
the Exchange’s market. The Exchange
also believes that the proposed rate of
$0.0005 per share is equitable and not
unfairly discriminatory because it may
provide opportunities for Floor brokers
to attract additional liquidity to the
Floor and thereby increase the quality of
order execution on the Exchange’s
market, which benefits all market
participants.
Additionally, the Exchange believes
that not charging for a non-electronic
agency transaction of a Floor Broker that
executes against the Book, in both
securities priced $1 or above as well as
securities priced below $1, is reasonable
because it would be set at a level that
would align the rate with certain other
non-electronic agency Floor broker
interest that is similarly not charged. In
this regard, and as noted above, the
Exchange does not charge for executions
of non-electronic agency transactions
between Floor brokers in the crowd.14
Additionally, the Exchange believes that
this is equitable and not unfairly
discriminatory because a non-electronic
agency transaction of a Floor broker
would be used, for example, at a time
of the trading day when a Floor broker
is physically present at the point of sale
and requires flexibility to represent
customer interest, which is unique to a
Floor broker, but which may also result
in added opportunity cost and
uncertainty for the Floor broker when
compared to an electronic execution.
The Exchange also believes that it is
reasonable to specify that a nonelectronic agency transaction between
Floor brokers in the crowd is not
charged for securities priced below $1
because doing so will add greater
specificity to the Price List by reflecting
that it is the same as the rate charged for
such transactions in securities priced $1
or above. This is also equitable and not
unfairly discriminatory because it
would provide greater certainty
regarding the applicable rates for
transactions in securities priced below
$1. The Exchange believes that not
charging for these transactions is further
reasonable because it may incentivize
additional liquidity in these low-priced
securities, which typically are more
thinly-traded and less liquid than
securities priced $1 or above.
Accordingly, it is also equitable and not
unfairly discriminatory to not charge for
14 The Commission notes that the Exchange does
not charge for executions of non-electronic agency
transactions between Floor brokers in the crowd for
transactions in stocks with a per share stock price
of $1.00 or more.
VerDate Mar<15>2010
13:52 Nov 27, 2012
Jkt 229001
these transactions because the increased
liquidity that may result in these
securities would increase the quality of
order execution on the Exchange’s
market, which benefits all market
participants. Finally, and as described
above for a non-electronic agency
transaction of a Floor broker that
executes against the Book, the Exchange
believes that this is equitable and not
unfairly discriminatory because nonelectronic agency transactions between
Floor brokers in the crowd occur, for
example, at a time of the trading day
when a Floor broker is physically
present at the point of sale and requires
flexibility to represent customer
interest, which is unique to a Floor
broker, but which may also result in
added opportunity cost and uncertainty
for the Floor broker when compared to
an electronic execution.
The Exchange also believes that it is
reasonable to specify that an agency
cross trade is not charged for securities
priced below $1 because doing so will
add greater specificity to the Price List
by reflecting that it is the same as the
rate charged for such transactions in
securities priced $1 or above. This is
also equitable and not unfairly
discriminatory because it would provide
greater certainty regarding the
applicable rates for transactions in
securities priced below $1. The
Exchange believes that not charging for
these transactions is further reasonable
because of the nature of an agency cross
trade, in that it is a trade where a
member organization has customer
orders to buy and sell an equivalent
amount of the same security.15
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) 16 of the Act and
PO 00000
supra note 10.
U.S.C. 78s(b)(3)(A).
subparagraph (f)(2) of Rule 19b–4 17
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–2012–45 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–2012–45. 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
15 See
16 15
Frm 00037
Fmt 4703
17 17
Sfmt 4703
71027
E:\FR\FM\28NON1.SGM
CFR 240.19b–4(f)(2).
28NON1
71028
Federal Register / Vol. 77, No. 229 / Wednesday, November 28, 2012 / Notices
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–
2012–45 and should be submitted on or
before December 19, 2012.
Dated: November 20, 2012.
Theodore P. Kill,
Attorney-Adviser, Office of Claims and
Investment Disputes, Office of the Legal
Adviser, Executive Director, Advisory
Committee on International Law, Department
of State.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.18
Kevin M. O’Neill,
Deputy Secretary.
DEPARTMENT OF TRANSPORTATION
[FR Doc. 2012–28799 Filed 11–27–12; 8:45 am]
BILLING CODE 8011–01–P
[FR Doc. 2012–28851 Filed 11–27–12; 8:45 am]
BILLING CODE 4710–08–P
Federal Aviation Administration
Twelfth Meeting: RTCA Special
Committee 223, Airport Surface
Wireless Communications
DEPARTMENT OF STATE
[Public Notice 8098]
erowe on DSK2VPTVN1PROD with
A meeting of the Advisory Committee
on International Law will take place on
Friday December 14, from 9:30 a.m. to
approximately 5:30 p.m., at the George
Washington University Law School
(Frederick Lawrence Student
Conference Center), 2000 H St. NW.,
Washington, DC. The meeting will be
chaired by the Legal Adviser of the
Department of State, Harold Hongju
Koh, and will be open to the public up
to the capacity of the meeting room. It
is anticipated that the agenda of the
meeting will cover a range of current
international legal topics, including
corporate social responsibility,
principles of self-defense, maritime
security, international promotion of the
freedom of expression, and the
International Law Commission’s
consideration of the topic of crimes
against humanity.
Members of the public who wish to
attend the session should, by Friday,
December 7, 2012, notify the Office of
the Legal Adviser (telephone: (202) 776–
8442, email: LermanJB@state.gov
mailto:KillTP@state.gov) of their name,
professional affiliation, address, and
telephone number. A valid photo ID is
required for admittance. A member of
the public who needs reasonable
accommodation should make his or her
request by December 5, 2012. Requests
made after that time will be considered
but might not be possible to
accommodate.
CFR 200.30–3(a)(12).
13:52 Nov 27, 2012
[FR Doc. 2012–28854 Filed 11–27–12; 8:45 am]
BILLING CODE 4910–13–P
The FAA is issuing this notice
to advise the public of the meeting of
the RTCA Special Committee 223,
Airport Surface Wireless
Communications.
[Docket No. FMCSA–2011–0165]
The meeting will be held
December 4–6, 2012, from 9:00 a.m.–
5:00 p.m.
ADDRESSES: The meeting will be held at
the Boeing, Building 2–25 Lobby, 7755
East Marginal Way South, Seattle, WA
98108.
FOR FURTHER INFORMATION CONTACT: The
RTCA Secretariat, 1150 18th Street NW.,
Suite 910, Washington, DC, 20036, or by
telephone at (202) 330–0662/(202) 833–
9339, fax (202) 833–9434, or Web site at
https://www.rtca.org.
SUPPLEMENTARY INFORMATION: Pursuant
to section 10(a)(2) of the Federal
Advisory Committee Act (Pub. L. No.
92–463, 5 U.S.C., App.), notice is hereby
given for a meeting of Special
Committee 223. The agenda will include
the following:
AGENCY:
SUMMARY:
Notice of Meeting of Advisory
Committee on International Law
VerDate Mar<15>2010
Issued in Washington, DC, on November 8,
2012.
Richard F. Gonzalez,
Management Analyst, Business Operations
Group, Federal Aviation Administration.
Federal Aviation
Administration (FAA), U.S. Department
of Transportation (DOT)
ACTION: Meeting Notice of RTCA Special
Committee 223, Airport Surface
Wireless Communications.
AGENCY:
18 17
• Adjourn–Plenary Meeting
Attendance is open to the interested
public but limited to space availability.
With the approval of the chairman,
members of the public may present oral
statements at the meeting. Persons
wishing to present statements or obtain
information should contact the person
listed in the FOR FURTHER INFORMATION
CONTACT section. Members of the public
may present a written statement to the
committee at any time.
Jkt 229001
DATES:
Tuesday, December 4th—Thursday,
December 6th, 2012
• Plenary
• Welcome, Introductions,
Administrative Remarks by Special
Committee Leadership
• Agenda Overview
• Review/Approve prior Plenary
Meeting Summary and Action Item
Status
• General Presentations of Interest
• ICAO WG–S Status
• EUROCAE WG–82 Status
• Detailed MOPS Review
• Establish Agenda, Date and Place for
Next Plenary Meetings
• Review of Meeting Summary Report
PO 00000
Frm 00038
Fmt 4703
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DEPARTMENT OF TRANSPORTATION
Federal Motor Carrier Safety
Administration
Parts and Accessories Necessary for
Safe Operation; Grant of Exemption for
Transecurity LLC (Transecurity)
Federal Motor Carrier Safety
Administration (FMCSA), DOT.
ACTION: Notice of final disposition.
The Federal Motor Carrier
Safety Administration (FMCSA)
announces its decision to grant an
exemption to Transecurity LLC
(Transecurity) that will allow the
placement of an onboard safety
monitoring system (OBMS) at the
bottom of windshields on commercial
motor vehicles (CMVs). The Federal
Motor Carrier Safety Regulations
(FMCSRs) currently require antennas,
transponders, and similar devices to be
located not more than 6 inches below
the upper edge of the windshield,
outside the area swept by the
windshield wipers, and outside the
driver’s sight lines to the road and
highway signs and signals. Transecurity
is coordinating the development and
installation of camera-based monitoring
systems in up to 500 CMVs operating
throughout the United States in support
of research being conducted on behalf of
FMCSA. The exemption would enable
motor carriers to participate in a field
operation test to evaluate the system
and allow for on-road data collection.
FMCSA believes that permitting the
OBMS to be mounted lower than
currently allowed, but still outside the
driver’s sight lines to the road and
highway signs and signals, will
maintain a level of safety that is
equivalent to, or greater than, the level
SUMMARY:
E:\FR\FM\28NON1.SGM
28NON1
]]>Agencies
[Federal Register Volume 77, Number 229 (Wednesday, November 28, 2012)]
[Notices]
[Pages 71026-71028]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-28799]
[[Page 71026]]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-68283; File No. SR-NYSE-2012-45]
Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Amending Its Price List To Specify Pricing That Is Currently Applicable
to Certain Executions on the Exchange, but That Is Not Currently
Included in the Price List
November 21, 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 November 9, 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 amend its Price List to specify pricing
that is currently applicable to certain executions on the Exchange, but
that is not currently included in the Price List. 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 is proposing to amend its Price List to specify
pricing that is currently applicable to certain executions on the
Exchange, but that is not currently included in the Price List. The
Exchange proposes to make the changes immediately effective and
operative.
Specifically, the Exchange proposes to include the following
changes to the Price List to reflect pricing that is currently being
assessed for the following intraday transactions: (1) A $0.0005 fee for
a Floor broker discretionary e-Quote (``d-Quote'') that takes liquidity
in a security priced $1 or above; (2) no charge (i.e., free) for a non-
electronic agency transaction of a Floor broker that executes against
the Book, both in a security priced $1 or above and in a security
priced below $1; (3) no charge for a non-electronic agency transaction
between Floor brokers in the crowd in a security priced below $1; and
(4) no charge for an agency cross trade (i.e., a trade where a member
organization has customer orders to buy and sell an equivalent amount
of the same security) in a security priced below $1.
d-Quotes
The Exchange proposes to specify in the Price List that a d-Quote
that removes liquidity from the Book is charged $0.0005 per share if
the security is priced $1 or above.\3\ A d-Quote that adds liquidity to
the Book in a security priced $1 or above will continue to receive a
credit of $0.0019 per share.\4\ Similarly, a d-Quote that adds
liquidity to the Book in a security priced below $1 will continue to
receive a credit of $0.0004 per share.\5\ Also, a d-Quote that removes
liquidity from the Book in a security priced below $1 will continue to
be charged a fee equal to 0.3% of the total dollar volume of the
transaction.\6\
---------------------------------------------------------------------------
\3\ The Exchange has charged for d-Quotes that removed liquidity
since October 2007.
\4\ This is in accordance with the current Price List and
therefore the Exchange is not proposing a new or separate line item
therein for this type of transaction.
\5\ Id.
\6\ Id.
---------------------------------------------------------------------------
Non-Electronic Agency Transactions
The Exchange proposes to specify in the Price List that a non-
electronic agency transaction of a Floor broker that executes against
the Book is not charged (i.e., it is free),\7\ both for a security
priced $1 or above and for a security priced below $1.\8\ This is the
same rate (i.e., free) that is currently specified in the Price List
for non-electronic agency transactions between Floor brokers in the
crowd in securities priced $1 or above. In this regard, the Exchange
also proposes to specify in the Price List that there is no charge for
a non-electronic agency transaction between Floor brokers in the crowd
in a security priced below $1.\9\
---------------------------------------------------------------------------
\7\ Because of the nature of non-electronic trading interest
(i.e., verbal/manual interest), the concept of adding and removing
liquidity is not applicable.
\8\ The Exchange began charging for a non-electronic agency
transaction of a Floor broker that executed against the Book in
October 2007. Beginning in March 2009, the Exchange no longer
charged for this type of transaction.
\9\ The Exchange has not charged for a non-electronic agency
transaction between Floor brokers in the crowd in a security priced
below $1 since October 2007, if the transaction was for 10,000
shares or more, and since March 2009, if the transaction was for
fewer than 10,000 shares.
---------------------------------------------------------------------------
Agency Cross Trades
The Price List currently specifies that an agency cross trade is
not charged for a security priced $1 or above.\10\ Similarly, the
Exchange proposes to specify in the Price List that there is no charge
for an agency cross trade in a security priced below $1.\11\
---------------------------------------------------------------------------
\10\ Because of the nature of an agency cross trade (i.e., the
member organization already has customer orders to buy and sell an
equivalent amount of the same security), the concept of adding and
removing liquidity is not applicable.
\11\ The Exchange has not charged for an agency cross trade in a
security priced below $1 since October 2007, if the transaction was
for 10,000 shares or more, and since March 2009, if the transaction
was for fewer than 10,000 shares.
---------------------------------------------------------------------------
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''),\12\ in general, and furthers the objectives of Section
6(b)(4) of the Act,\13\ in particular, because it provides for the
equitable allocation of reasonable dues, fees, and other charges among
its members, issuers and other persons using its facilities and does
not unfairly discriminate between customers, issuers, brokers or
dealers.
---------------------------------------------------------------------------
\12\ 15 U.S.C. 78f(b).
\13\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
The Exchange believes that the proposed d-Quote rate of $0.0005 per
share for securities priced $1 or above is reasonable because, when
compared to the rate that would otherwise apply (i.e., $0.0024 per
share for all other Floor broker transactions that take liquidity from
the Exchange) it may encourage additional liquidity during
[[Page 71027]]
the trading day and may incentivize Floor brokers to provide additional
intra-quote price improved trading, which would contribute to the
quality of the Exchange's market. The Exchange also believes that the
proposed rate of $0.0005 per share is equitable and not unfairly
discriminatory because it may provide opportunities for Floor brokers
to attract additional liquidity to the Floor and thereby increase the
quality of order execution on the Exchange's market, which benefits all
market participants.
Additionally, the Exchange believes that not charging for a non-
electronic agency transaction of a Floor Broker that executes against
the Book, in both securities priced $1 or above as well as securities
priced below $1, is reasonable because it would be set at a level that
would align the rate with certain other non-electronic agency Floor
broker interest that is similarly not charged. In this regard, and as
noted above, the Exchange does not charge for executions of non-
electronic agency transactions between Floor brokers in the crowd.\14\
Additionally, the Exchange believes that this is equitable and not
unfairly discriminatory because a non-electronic agency transaction of
a Floor broker would be used, for example, at a time of the trading day
when a Floor broker is physically present at the point of sale and
requires flexibility to represent customer interest, which is unique to
a Floor broker, but which may also result in added opportunity cost and
uncertainty for the Floor broker when compared to an electronic
execution.
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\14\ The Commission notes that the Exchange does not charge for
executions of non-electronic agency transactions between Floor
brokers in the crowd for transactions in stocks with a per share
stock price of $1.00 or more.
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The Exchange also believes that it is reasonable to specify that a
non-electronic agency transaction between Floor brokers in the crowd is
not charged for securities priced below $1 because doing so will add
greater specificity to the Price List by reflecting that it is the same
as the rate charged for such transactions in securities priced $1 or
above. This is also equitable and not unfairly discriminatory because
it would provide greater certainty regarding the applicable rates for
transactions in securities priced below $1. The Exchange believes that
not charging for these transactions is further reasonable because it
may incentivize additional liquidity in these low-priced securities,
which typically are more thinly-traded and less liquid than securities
priced $1 or above. Accordingly, it is also equitable and not unfairly
discriminatory to not charge for these transactions because the
increased liquidity that may result in these securities would increase
the quality of order execution on the Exchange's market, which benefits
all market participants. Finally, and as described above for a non-
electronic agency transaction of a Floor broker that executes against
the Book, the Exchange believes that this is equitable and not unfairly
discriminatory because non-electronic agency transactions between Floor
brokers in the crowd occur, for example, at a time of the trading day
when a Floor broker is physically present at the point of sale and
requires flexibility to represent customer interest, which is unique to
a Floor broker, but which may also result in added opportunity cost and
uncertainty for the Floor broker when compared to an electronic
execution.
The Exchange also believes that it is reasonable to specify that an
agency cross trade is not charged for securities priced below $1
because doing so will add greater specificity to the Price List by
reflecting that it is the same as the rate charged for such
transactions in securities priced $1 or above. This is also equitable
and not unfairly discriminatory because it would provide greater
certainty regarding the applicable rates for transactions in securities
priced below $1. The Exchange believes that not charging for these
transactions is further reasonable because of the nature of an agency
cross trade, in that it is a trade where a member organization has
customer orders to buy and sell an equivalent amount of the same
security.\15\
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\15\ See supra note 10.
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B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were solicited or received with respect to the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change is effective upon filing pursuant to
Section 19(b)(3)(A) \16\ of the Act and subparagraph (f)(2) of Rule
19b-4 \17\ thereunder, because it establishes a due, fee, or other
charge imposed by the NYSE.
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\16\ 15 U.S.C. 78s(b)(3)(A).
\17\ 17 CFR 240.19b-4(f)(2).
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At any time within 60 days of the filing of such proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-NYSE-2012-45 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-2012-45. 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
[[Page 71028]]
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-2012-45 and should be submitted on or before December 19, 2012.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\18\
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\18\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-28799 Filed 11-27-12; 8:45 am]
BILLING CODE 8011-01-P
