2738 Federal Register / Vol. 76, No. 10 / Friday, January 14, 2011 / Notices 

4 15 U.S.C. 78q–1(b)(3)(F). 

5 15 U.S.C. 78q–1. 

6 15 U.S.C. 78s(b)(2). 

7 In approving the proposed rule change, the 

Commission considered the proposal’s impact on 

efficiency, competition and capital formation. 15 

U.S.C. 78c(f). 

8 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

under NSCC’s rules with respect to 

utilizing these services—namely, that by 

establishing the relationship within the 

facility both members will continue to 

be bound by NSCC’s rules, the 

Correspondent is bound by the details of 

all transactions submitted on their 

behalf by the Qualified Special 

Representative or Special 

Representative, and any errors or 

omissions or disputes relating to such 

relationships and related transactions 

must be resolved directly between the 

parties. 

The establishment of relationships 

through the automated facility will meet 

the written notice requirements for such 

services as otherwise set forth within 

NSCC’s rules and procedures. Members 

will no longer be required to submit 

signed forms to NSCC for these 

processes. 

D. Implementation Time Frame 

NSCC will implement many of the 

changes described above by January 31, 

2011. 

With respect to UTC changes and to 

support the migration period, NSCC will 

provide a conversion process to support 

those markets that are not yet ready to 

submit transaction data in the new 

common input format (i.e., NSCC will 

accept data in the old format and 

convert data into the new UTC format). 

The conversion process will enable 

NSCC to offer members and SROs the 

new output format regardless of whether 

the market has converted to the new 

standard. UTC will continue to support 

all existing interfaces with markets, 

members, and SROs with respect to 

trade input and output. 

To provide maximum flexibility in 

allowing firms to migrate to the new 

input and output formats according to 

their own schedules, NSCC will 

continue to support all existing 

interfaces with markets, members, SROs 

and regulatory agencies for a period of 

time after UTC is implemented. 

Finally, NSCC will establish a plan for 

the retirement of all legacy input and 

output formats and by the end of the 

first quarter of 2012 will reassess the 

status of those firms utilizing legacy 

formats. At that time, NSCC will work 

with any members, SROs, and 

regulatory agencies that have not yet 

converted from legacy reporting, thereby 

affording such firms sufficient lead time 

for migration. 

III. Discussion 

The Commission finds that the 

proposed rule change is consistent with 

the requirements of the Act and the 

rules and regulations thereunder 

applicable to NSCC. In particular, the 

Commission finds that the proposal is 

consistent with Section 17A(b)(3)(F) of 

the Act,4 which requires that the rules 

of a registered clearing agency are 

designed to, among other things, remove 

impediments to the perfection of the 

mechanism of a national system for the 

prompt and accurate clearance and 

settlement of securities transactions. 

NSCC’s consolidation of its trade 

capture and reporting applications are 

designed to remediate certain 

operational inefficiencies associated 

with providing and maintaining 

redundant transaction submission and 

reporting systems that were created to 

service different transaction sources. As 

securities marketplaces have ceased 

providing clearance and settlement 

services for their members and as those 

members have ultimately become direct 

NSCC members or have entered clearing 

arrangements with other NSCC 

members, there is little operational basis 

for NSCC to continue to service different 

data formats and systems. Accordingly, 

consolidating its systems to receive and 

report transaction details while 

providing new automated services to 

assist NSCC members maintain their 

correspondent and Special 

Representative relationships should 

help remove certain impediments to the 

perfection of the mechanism of a 

national system for the prompt and 

accurate clearance and settlement of 

securities transactions. 

IV. Conclusion 

On the basis of the foregoing, the 

Commission finds that the proposed 

rule change is consistent with the 

requirements of the Act and in 

particular Section 17A of the Act 5 and 

the rules and regulations thereunder. 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,6 that the 

proposed rule change (File No. SR– 

NSCC–2010–09) be and hereby is 

approved.7

For the Commission by the Division of 

Trading and Markets, pursuant to delegated 

authority.8

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2011–666 Filed 1–13–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63669; File No. SR–NYSE– 

2011–01] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Amend the 

Exchange Price List 

January 6, 2011. 

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 

3, 2011, New York Stock Exchange LLC 

(‘‘NYSE’’ or the ‘‘Exchange’’) filed with 

the Securities and Exchange 

Commission (the ‘‘Commission’’) the 

proposed rule change as described in 

Items I and II 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. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to amend its 

2011 Price List (‘‘Price List’’) for equity 

transactions in stocks with a per share 

stock price less than $1.00 to provide 

that the equity per share charge for all 

other transactions when taking liquidity 

from the Exchange per transaction will 

be the lesser of (i) 0.3% of the total 

dollar value of the transaction and (ii) 

$0.0023 per share. The amended pricing 

will take effect on January 3, 2011. The 

text of the proposed rule change is 

available at the Exchange, at http:// 

www.nyse.com, at the Commission’s 

Public Reference Room, and on the 

Commission’s Web site at http:// 

www.sec.gov. 

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. 

mstockstill on DSKH9S0YB1PROD with NOTICES

Federal Register / Vol. 76, No. 10 / Friday, January 14, 2011 / Notices 2739 

4See File No. SR–NYSE–2010–87. 

5 17 CFR 240.19b–4. 

6 15 U.S.C. 78f. 

7 15 U.S.C. 78f(b)(4). 

8 15 U.S.C. 78s(b)(3)(A). 

9 17 CFR 240.19b–4(f)(2). 

10 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

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 its 

Price List for equity transactions in 

stocks with a per share stock price less 

than $1.00 to provide that the equity per 

share charge for all other transactions 

(i.e., when taking liquidity from the 

NYSE) per transaction will be the lesser 

of (i) 0.3% of the total dollar value of 

the transaction and (ii) $0.0023 per 

share. This is an increase of $0.0002 per 

share from the currently applicable rate 

of $0.0021 per share under the second 

part of the formula. 

The amount of the proposed fee 

increase under this portion of the 

formula is identical to the increase in 

charges to customers and floor brokers 

for the trading of NYSE-listed securities 

that take liquidity from the Exchange 

with a per share stock price of $1.00 or 

more, as recently filed with the 

Commission by the Exchange 4 pursuant 

to Rule 19b–4 under the Securities 

Exchange Act of 1934 (‘‘Act’’).5

These changes are intended to be 

effective immediately for all 

transactions beginning January 3, 2011 

and are only applicable to those NYSElisted securities with a per share stock 

price of under $1.00. The charges are 

equally applicable to customers and 

floor brokers. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the provisions of Section 6 of the Act,6

in general, and Section 6(b)(4) of the 

Act,7 in particular, in that it is designed 

to provide for the equitable allocation of 

reasonable dues, fees, and other charges 

among its members and other persons 

using its facilities. The Exchange 

believes that the proposal does not 

constitute an inequitable allocation of 

fees, as all similarly situated member 

organizations will be subject to the same 

fee structure, the new charges apply 

equally to both customers and floor 

brokers, and access to the Exchange’s 

market is offered on fair and nondiscriminatory terms. 

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) 8 of the Act and 

subparagraph (f)(2) of Rule 19b–4 9

thereunder, because it establishes or 

changes a due, fee, or other charge 

imposed on its members by the 

Exchange. At any time within 60 days 

of the filing of the 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 (http://www.sec.gov/ 

rules/sro.shtml); or 

• Send an e-mail to rulecomments@sec.gov. Please include File 

Number SR–NYSE–2011–01 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–2011–01. This file 

number should be included on the 

subject line if e-mail 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 (http://www.sec.gov/ 

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for Web site viewing and 

printing in the Commission’s Public 

Reference Room, 100 F Street, NE., 

Washington, DC 20549, on official 

business days between the hours of 10 

a.m. and 3 p.m. Copies of 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–NYSE– 

2011–01 and should be submitted on or 

before February 4, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2011–667 Filed 1–13–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63673; File No. SR–FINRA– 

2011–002] 

Self-Regulatory Organizations; 

Financial Industry Regulatory 

Authority, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Extend a TRACE Pilot 

Program 

January 7, 2011. 

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 January 5, 

2011, the Financial Industry Regulatory 

Authority, Inc. (‘‘FINRA’’) filed with the 

Securities and Exchange Commission 

(‘‘SEC’’ or ‘‘Commission’’) the proposed 

rule change as described in Items I and 

II below, which Items have been 

prepared by FINRA. FINRA has 

designated the proposed rule change as 

constituting a ‘‘non-controversial’’ rule 

change under paragraph (f)(6) of Rule 

mstockstill on DSKH9S0YB1PROD with NOTICES