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]

Download as PDF 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 28NON1 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 Sfmt 4703 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]]

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

    \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.
---------------------------------------------------------------------------

    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\
---------------------------------------------------------------------------

    \15\ See supra note 10.
---------------------------------------------------------------------------

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

    \16\ 15 U.S.C. 78s(b)(3)(A).
    \17\ 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-2012-45 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
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