Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Proposing To Amend the NYSE Arca Equities Schedule of Fees and Charges for Exchange Services, 9985-9987 [2013-03105]
Download as PDF
Federal Register / Vol. 78, No. 29 / Tuesday, February 12, 2013 / Notices
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–NSX–2013–05 on the
subject line.
tkelley on DSK3SPTVN1PROD with NOTICES
Paper Comments
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street NE., Washington, DC
20549–1090.
All submissions should refer to File
Number SR–NSX–2013–05. 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 such
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
publicly available. All submissions
should refer to File Number SR–NSX–
VerDate Mar<15>2010
16:40 Feb 11, 2013
Jkt 229001
2013–05 and should be submitted on or
before March 5, 2013
9985
BILLING CODE 8011–01–P
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 the
Statutory Basis for, the Proposed Rule
Change
[Release No. 34–68848; File No. SR–
NYSEARCA–2013–09]
1. Purpose
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2013–03190 Filed 2–11–13; 8:45 am]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Proposing To Amend the
NYSE Arca Equities Schedule of Fees
and Charges for Exchange Services
February 6, 2013.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that, on January
29, 2013, NYSE Arca, Inc. (the
‘‘Exchange’’ or ‘‘NYSE Arca’’) filed with
the Securities and Exchange
Commission (the ‘‘Commission’’) the
proposed rule change as described in
Items I, II, and III below, which Items
have been prepared by the selfregulatory organization. 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 the
NYSE Arca Equities Schedule of Fees
and Charges for Exchange Services
(‘‘Fee Schedule’’) to (i) eliminate the
Tape B Step Up Tier and (ii) modify the
rebate for Mid-Point Passive Liquidity
(‘‘MPL’’) Orders that provide liquidity
in Tape C Securities. 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,
14 17
CFR 200.30–3(a)(12).
U.S.C.78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
1 15
PO 00000
Frm 00103
Fmt 4703
Sfmt 4703
The Exchange proposes to amend the
Fee Schedule to (i) eliminate the Tape
B Step Up Tier and (ii) modify the
rebate for MPL Orders that provide
liquidity in Tape C Securities. The
Exchange proposes to implement the fee
changes on February 1, 2013.
The Tape B Step Up Tier currently
provides for a $0.0026 per share fee for
orders of qualifying ETP Holders that
take liquidity from the Book in Tape B
Securities. The Exchange has
determined to eliminate the Tape B Step
Up Tier because it generally has not
incentivized ETP Holders to submit
additional liquidity in Tape B Securities
as intended.4
Currently, under Tier 1,5 Tier 2,6 and
the Basic Rates 7 of the Fee Schedule,
the Exchange offers a $0.0015 credit per
share for MPL Orders 8 that provide
4 See Securities Exchange Act Release No. 66568
(March 9, 2012), 77 FR 15819, 15822 (March 16,
2012) (SR–NYSEArca–2012–17).
5 Tier 1 rates are available to ETP Holders and
Market Makers that provide liquidity an average
daily share volume per month of 0.70% or more of
the US consolidated average daily volume
(‘‘CADV’’) or (2) that (a) provide liquidity an
average daily share volume per month of 0.15% or
more of the US CADV and (b) are affiliated with an
OTP Holder or OTP Firm that provides an ADV of
electronic posted executions (including all account
types) in Penny Pilot issues on NYSE Arca Options
of at least 100,000 contracts, of which at least
25,000 contracts must be for the account of a market
maker.
6 Tier 2 rates are available to ETP Holders and
Market Makers that provide liquidity an average
daily share volume per month of 0.30% or more,
but less than 0.70% of the US CADV.
7 Basic Rates are applicable when tier rates do not
apply. The Exchange notes that the Active Tape C
Securities are erroneously referred to as the ‘‘Most
Active Tape C Securities’’ in the Basic Rate section
of the Fee Schedule. See SR–NYSEArca–2012–104,
Exhibit 5, at 26, available at https://www.sec.gov/
rules/sro/nysearca/2012/34-67986-ex5.pdf. The
changes proposed herein will remove the erroneous
reference.
8 See Rules 7.31(h)(4) and (5). MPL Orders allow
for additional opportunities for passive interaction
with trading interest on the Exchange and are
designed to offer potential price improvement to
incoming marketable orders submitted to the
Exchange. See Securities Exchange Act Release No.
67986 (October 4, 2012), 77 FR 61803 (October 11,
2012) (SR–NYSEArca–2012–104) (‘‘2012 Release’’).
E:\FR\FM\12FEN1.SGM
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9986
Federal Register / Vol. 78, No. 29 / Tuesday, February 12, 2013 / Notices
liquidity in Tape C Securities, except
that for certain Tape C Securities
deemed ‘‘Active Tape C Securities,’’ a
$0.0025 credit per share is offered. The
Active Tape C Securities are:
Company name
Symbol
Cisco Systems, Inc. ..........................
Dell Inc. ............................................
Facebook, Inc. ..................................
Intel Corporation ...............................
Microsoft Corporation .......................
Micron Technology Inc. ....................
Oracle Corporation ...........................
Research In Motion Limited .............
SIRIUS XM Radio Inc. .....................
Zynga, Inc. ........................................
CSCO
DELL
FB
INTC
MSFT
MU
ORCL
RIMM
SIRI
ZNGA
The Exchange proposes to remove the
distinction between MPL Orders that
provide liquidity in Active Tape C
Securities and MPL Orders that provide
liquidity in other Tape C Securities by
eliminating the Active Tape C Securities
MPL Order credit. At the same time, the
Exchange proposes to increase the
existing credits for MPL Orders that
provide liquidity in all Tape C
Securities from $0.0015 to $0.0020 per
share. The Exchange believes that the
proposed change will increase the
liquidity available on the Exchange in
Tape C Securities generally, and
therefore could increase the potential
price improvement to incoming
marketable orders submitted to the
Exchange in Tape C Securities.
The proposed change is not otherwise
intended to address any other problem,
and the Exchange is not aware of any
significant problem that the affected
market participants would have in
complying with the proposed change.
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’’),9 in general, and
furthers the objectives of Sections
6(b)(4) and 6(b)(5) of the Act,10 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
eliminating the Tape B Step Up Tier is
reasonable because such tier has
generally not incentivized ETP Holders
to submit additional liquidity in Tape B
Securities as intended.11 The Exchange
believes that removal of the Tape B Step
9 15
U.S.C. 78f(b).
U.S.C. 78f(b)(4).
11 See note 4, supra.
Up Tier is equitable and not unfairly
discriminatory because it would be
eliminated for all ETP Holders.
In addition, the Exchange believes
that the proposed change to have the
same credit apply to liquidity providing
MPL Orders in Active Tape C Securities
and MPL Orders that provide liquidity
in other Tape C Securities is reasonable
because the Exchange believes that it
will incentivize ETP Holders to submit
more liquidity providing MPL Orders to
the Book for all Tape C Securities,
thereby increasing the liquidity
available on the Exchange in Tape C
Securities generally, and therefore could
increase the potential price
improvement and benefit all market
participants. The Exchange also believes
the change to the MPL Order credit in
Tape C Securities is reasonable because
the $0.0025 credit for just the Active
Tape C Securities has not generally
incentivized ETP Holders to submit
additional liquidity in Active Tape C
Securities as intended.12 The Exchange,
however, believes that that the
increased $0.0020 MPL credit in all
Tape C Securities will have the desired
effect of incentivizing ETP holders to
increase liquidity in Tape C Securities
because ETP Holders will not be limited
to Active Tape C Securities only to
receive the higher MPL credit. The
Exchange believes the proposed change
also is equitable and not unfairly
discriminatory because it will apply
uniformly to all ETP Holders and all
MPL Orders in Tape C Securities will be
eligible for the credit.
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
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. In particular,
the removal of the Tape B Step Up Tier
will not impose a burden on
competition because the tier will be
removed in its entirety and generally
has not encouraged liquidity as
intended. In addition, because the Tape
B Step Up Tier did not operate as
10 15
VerDate Mar<15>2010
16:40 Feb 11, 2013
intended—which was to increase
liquidity in Tape B Securities—the
Exchange does not believe that firms
will be adversely affected as they
generally were not availing themselves
of that tier in any event. Eliminating the
Active Tape C Securities MPL Order
credit and replacing it with a MPL
Order credit in all Tape C Securities
will not impose a burden in competition
because now all Tape C Securities will
eligible for the credit, albeit at a slightly
reduced level than for Active Tape C
Securities.
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) 13 of the Act and
subparagraph (f)(2) of Rule 19b–4 14
thereunder, because it establishes a due,
fee, or other charge imposed by NYSE
Arca.
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. If the
Commission takes such action, the
Commission shall institute proceedings
under Section 19(b)(2)(B) 15 of the Act to
determine whether the proposed rule
change should be approved or
disapproved.
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–NYSEArca–2013–09 on the
subject line.
13 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(2).
15 15 U.S.C. 78s(b)(2)(B).
14 17
12 See
Jkt 229001
PO 00000
2012 Release, supra note 8.
Frm 00104
Fmt 4703
Sfmt 4703
E:\FR\FM\12FEN1.SGM
12FEN1
Federal Register / Vol. 78, No. 29 / Tuesday, February 12, 2013 / Notices
Paper Comments
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street NE., Washington, DC
20549–1090.
All submissions should refer to File
Number SR–NYSEArca–2013–09. 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–
NYSEArca–2013–09 and should be
submitted on or before March 5, 2013.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.16
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2013–03105 Filed 2–11–13; 8:45 am]
BILLING CODE 8011–01–P
SOCIAL SECURITY ADMINISTRATION
tkelley on DSK3SPTVN1PROD with NOTICES
[Docket No. SSA–2012–0071]
Social Security Ruling, SSR 13–1p;
Titles II and XVI: Agency Processes for
Addressing Allegations of Unfairness,
Prejudice, Partiality, Bias, Misconduct,
or Discrimination by Administrative
Law Judges (ALJs); Correction
AGENCY:
16 17
Social Security Administration.
CFR 200.30–3(a)(12).
VerDate Mar<15>2010
16:40 Feb 11, 2013
Notice of Social Security Ruling;
Correction.
ACTION:
Jkt 229001
The Social Security
Administration published a document
in the Federal Register of January 29,
2013, in FR Doc. 2013–01833, on page
6168, in the third column; correct the
DATES caption to read:
SUMMARY:
DATES:
Effective Date: February 28,
2013.
Paul Kryglik,
Director, Office of Regulations, Social
Security Administration.
[FR Doc. 2013–03126 Filed 2–11–13; 8:45 am]
BILLING CODE 4191–02–P
DEPARTMENT OF STATE
[Public Notice 8185]
Call for Expert Reviewers to the U.S.
Government Review of the 2013
Supplement to the 2006
Intergovernmental Panel on Climate
Change (IPCC) Guidelines for National
Greenhouse Gas Inventories:
Wetlands.
Summary: The United States Global
Change Research Program, in
cooperation with the Department of
State, request expert review of the
Second Order Draft of the 2013
Supplement to the 2006
Intergovernmental Panel on Climate
Change (IPCC) Guidelines for National
Greenhouse Gas Inventories: Wetlands.
The United Nations Environment
Programme (UNEP) and the World
Meteorological Organization (WMO)
established the IPCC in 1988. In
accordance with its mandate and as
reaffirmed in various decisions by the
Panel, the major activity of the IPCC is
to prepare comprehensive and up-todate assessments of policy-relevant
scientific, technical, and socioeconomic information for understanding
the scientific basis of climate change,
potential impacts, and options for
mitigation and adaptation. Among the
IPCC’s products is a series of guidance
documents for the preparation of
national greenhouse gas inventories,
which provide guidance to periodic
submissions by Parties to the U.N.
Framework Convention on Climate
Change (UNFCCC). These reports are
developed in accordance with
procedures for preparation and review
of IPCC documents, which can be found
at the following Web sites:
https://www.ipcc.ch/organization/
organization_review.shtml
#.UEY0LqSe7x8
https://ipcc.ch/organization/
organization_procedures.shtml.
PO 00000
Frm 00105
Fmt 4703
Sfmt 4703
9987
Following an invitation from the
UNFCCC to ‘‘undertake further
methodological work on wetlands,
focusing on the rewetting and
restoration of peatland, with a view to
filling in the gaps in the 2006 IPCC
Guidelines for National Greenhouse Gas
Inventories’’ (FCCC/SBSTA/2010/13,
paragraph 72), an IPCC Expert Meeting
on Scoping Additional Guidance on
Wetlands was held, on 30 March–1
April 2011 and its proposal was
presented to the 33rd session of the
IPCC held in Abu Dhabi, United Arab
Emirates, 10–13 May 2011. In response
to the outcome of the meeting, the Task
Force on National Greenhouse Gas
Inventories (TFI) is developing
additional national-level inventory
methodological guidance on wetlands,
including default emission factor
values, with the aim to fill gaps in the
coverage of wetlands and organic soils
in the 2006 IPCC Guidelines.
The 2013 Supplement to the 2006
IPCC Guidelines for National
Greenhouse Gas Inventories: Wetlands
(the Wetlands Supplement) provides
methods for estimating anthropogenic
emissions and removals of greenhouse
gases from wetlands (lands that are
saturated by water for all or part of the
year), lands with organic soils, and
other drained lands. Specifically, the
guidance in the Wetlands Supplement
covers inland peatlands and other
wetlands on mineral soils; coastal
wetlands including mangroves, coastal
marshes and sea grass; as well as
constructed wetlands for wastewater
treatment. It does not include
methodologies for flooded lands. It
supplements the guidance contained in
the 2006 IPCC Guidelines for National
Greenhouse Gas Inventories (the 2006
IPCC Guidelines) which provides
methodologies for estimating national
anthropogenic emissions by sources and
removals by sinks of greenhouse gases
not controlled by the Montreal Protocol.
While the 2006 IPCC Guidelines include
a chapter on wetlands, this chapter is
incomplete and does not cover all
wetlands types. It does not characterize
all of the significant activities occurring
on these wetlands e.g., rewetting of
peatlands. The 2006 IPCC Guidelines
only provide guidance on peatlands
drained and managed for peat extraction
and some guidance for drained organic
soils.
As part of the U.S. Government
Review of the Second Order Draft of the
2013 Supplement to the 2006 IPCC
Guidelines for National Greenhouse Gas
Inventories: Wetlands, the U.S.
Government is soliciting comments
from experts in relevant fields of
expertise (The Table of Contents for the
E:\FR\FM\12FEN1.SGM
12FEN1
Agencies
[Federal Register Volume 78, Number 29 (Tuesday, February 12, 2013)]
[Notices]
[Pages 9985-9987]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-03105]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-68848; File No. SR-NYSEARCA-2013-09]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change Proposing To Amend
the NYSE Arca Equities Schedule of Fees and Charges for Exchange
Services
February 6, 2013.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby
given that, on January 29, 2013, NYSE Arca, Inc. (the ``Exchange'' or
``NYSE Arca'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I, II,
and III below, which Items have been prepared by the self-regulatory
organization. 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\ 15 U.S.C. 78a.
\3\ 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 the NYSE Arca Equities Schedule of
Fees and Charges for Exchange Services (``Fee Schedule'') to (i)
eliminate the Tape B Step Up Tier and (ii) modify the rebate for Mid-
Point Passive Liquidity (``MPL'') Orders that provide liquidity in Tape
C Securities. 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 the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend the Fee Schedule to (i) eliminate
the Tape B Step Up Tier and (ii) modify the rebate for MPL Orders that
provide liquidity in Tape C Securities. The Exchange proposes to
implement the fee changes on February 1, 2013.
The Tape B Step Up Tier currently provides for a $0.0026 per share
fee for orders of qualifying ETP Holders that take liquidity from the
Book in Tape B Securities. The Exchange has determined to eliminate the
Tape B Step Up Tier because it generally has not incentivized ETP
Holders to submit additional liquidity in Tape B Securities as
intended.\4\
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release No. 66568 (March 9,
2012), 77 FR 15819, 15822 (March 16, 2012) (SR-NYSEArca-2012-17).
---------------------------------------------------------------------------
Currently, under Tier 1,\5\ Tier 2,\6\ and the Basic Rates \7\ of
the Fee Schedule, the Exchange offers a $0.0015 credit per share for
MPL Orders \8\ that provide
[[Page 9986]]
liquidity in Tape C Securities, except that for certain Tape C
Securities deemed ``Active Tape C Securities,'' a $0.0025 credit per
share is offered. The Active Tape C Securities are:
---------------------------------------------------------------------------
\5\ Tier 1 rates are available to ETP Holders and Market Makers
that provide liquidity an average daily share volume per month of
0.70% or more of the US consolidated average daily volume (``CADV'')
or (2) that (a) provide liquidity an average daily share volume per
month of 0.15% or more of the US CADV and (b) are affiliated with an
OTP Holder or OTP Firm that provides an ADV of electronic posted
executions (including all account types) in Penny Pilot issues on
NYSE Arca Options of at least 100,000 contracts, of which at least
25,000 contracts must be for the account of a market maker.
\6\ Tier 2 rates are available to ETP Holders and Market Makers
that provide liquidity an average daily share volume per month of
0.30% or more, but less than 0.70% of the US CADV.
\7\ Basic Rates are applicable when tier rates do not apply. The
Exchange notes that the Active Tape C Securities are erroneously
referred to as the ``Most Active Tape C Securities'' in the Basic
Rate section of the Fee Schedule. See SR-NYSEArca-2012-104, Exhibit
5, at 26, available at https://www.sec.gov/rules/sro/nysearca/2012/34-67986-ex5.pdf. The changes proposed herein will remove the
erroneous reference.
\8\ See Rules 7.31(h)(4) and (5). MPL Orders allow for
additional opportunities for passive interaction with trading
interest on the Exchange and are designed to offer potential price
improvement to incoming marketable orders submitted to the Exchange.
See Securities Exchange Act Release No. 67986 (October 4, 2012), 77
FR 61803 (October 11, 2012) (SR-NYSEArca-2012-104) (``2012
Release'').
------------------------------------------------------------------------
Company name Symbol
------------------------------------------------------------------------
Cisco Systems, Inc........................ CSCO
Dell Inc.................................. DELL
Facebook, Inc............................. FB
Intel Corporation......................... INTC
Microsoft Corporation..................... MSFT
Micron Technology Inc..................... MU
Oracle Corporation........................ ORCL
Research In Motion Limited................ RIMM
SIRIUS XM Radio Inc....................... SIRI
Zynga, Inc................................ ZNGA
------------------------------------------------------------------------
The Exchange proposes to remove the distinction between MPL Orders
that provide liquidity in Active Tape C Securities and MPL Orders that
provide liquidity in other Tape C Securities by eliminating the Active
Tape C Securities MPL Order credit. At the same time, the Exchange
proposes to increase the existing credits for MPL Orders that provide
liquidity in all Tape C Securities from $0.0015 to $0.0020 per share.
The Exchange believes that the proposed change will increase the
liquidity available on the Exchange in Tape C Securities generally, and
therefore could increase the potential price improvement to incoming
marketable orders submitted to the Exchange in Tape C Securities.
The proposed change is not otherwise intended to address any other
problem, and the Exchange is not aware of any significant problem that
the affected market participants would have in complying with the
proposed change.
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''),\9\ in general, and furthers the objectives of Sections
6(b)(4) and 6(b)(5) of the Act,\10\ 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.
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\9\ 15 U.S.C. 78f(b).
\10\ 15 U.S.C. 78f(b)(4).
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The Exchange believes that eliminating the Tape B Step Up Tier is
reasonable because such tier has generally not incentivized ETP Holders
to submit additional liquidity in Tape B Securities as intended.\11\
The Exchange believes that removal of the Tape B Step Up Tier is
equitable and not unfairly discriminatory because it would be
eliminated for all ETP Holders.
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\11\ See note 4, supra.
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In addition, the Exchange believes that the proposed change to have
the same credit apply to liquidity providing MPL Orders in Active Tape
C Securities and MPL Orders that provide liquidity in other Tape C
Securities is reasonable because the Exchange believes that it will
incentivize ETP Holders to submit more liquidity providing MPL Orders
to the Book for all Tape C Securities, thereby increasing the liquidity
available on the Exchange in Tape C Securities generally, and therefore
could increase the potential price improvement and benefit all market
participants. The Exchange also believes the change to the MPL Order
credit in Tape C Securities is reasonable because the $0.0025 credit
for just the Active Tape C Securities has not generally incentivized
ETP Holders to submit additional liquidity in Active Tape C Securities
as intended.\12\ The Exchange, however, believes that that the
increased $0.0020 MPL credit in all Tape C Securities will have the
desired effect of incentivizing ETP holders to increase liquidity in
Tape C Securities because ETP Holders will not be limited to Active
Tape C Securities only to receive the higher MPL credit. The Exchange
believes the proposed change also is equitable and not unfairly
discriminatory because it will apply uniformly to all ETP Holders and
all MPL Orders in Tape C Securities will be eligible for the credit.
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\12\ See 2012 Release, supra note 8.
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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 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. In particular, the removal
of the Tape B Step Up Tier will not impose a burden on competition
because the tier will be removed in its entirety and generally has not
encouraged liquidity as intended. In addition, because the Tape B Step
Up Tier did not operate as intended--which was to increase liquidity in
Tape B Securities--the Exchange does not believe that firms will be
adversely affected as they generally were not availing themselves of
that tier in any event. Eliminating the Active Tape C Securities MPL
Order credit and replacing it with a MPL Order credit in all Tape C
Securities will not impose a burden in competition because now all Tape
C Securities will eligible for the credit, albeit at a slightly reduced
level than for Active Tape C Securities.
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) \13\ of the Act and subparagraph (f)(2) of Rule
19b-4 \14\ thereunder, because it establishes a due, fee, or other
charge imposed by NYSE Arca.
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\13\ 15 U.S.C. 78s(b)(3)(A).
\14\ 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. If the Commission
takes such action, the Commission shall institute proceedings under
Section 19(b)(2)(B) \15\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\15\ 15 U.S.C. 78s(b)(2)(B).
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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-NYSEArca-2013-09 on the subject line.
[[Page 9987]]
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-NYSEArca-2013-09. 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-NYSEArca-2013-09 and should
be submitted on or before March 5, 2013.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\16\
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\16\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-03105 Filed 2-11-13; 8:45 am]
BILLING CODE 8011-01-P