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 

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2740 Federal Register / Vol. 76, No. 10 / Friday, January 14, 2011 / Notices 

3 17 CFR 240.19b–4(f)(6). 

4See Securities Exchange Act Release No. 54768 

(November 16, 2006), 71 FR 67673 (November 22, 

2006) (Order Approving Proposed Rule Change; File 

No. SR–NASD–2006–110) (pilot program in FINRA 

Rule 6730(e)(4), subject to the execution of a data 

sharing agreement addressing relevant transactions, 

became effective on January 9, 2007); Securities 

Exchange Act Release No. 59216 (January 8, 2009), 

74 FR 2147 (January 14, 2009) (Notice of Filing and 

Immediate Effectiveness of Proposed Rule Change; 

File No. SR–FINRA–2008–065) (pilot program 

extended to January 7, 2011). 5 15 U.S.C. 78o–3(b)(6). 

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

7 17 CFR 240.19b–4(f)(6). 

8 In addition, Rule 19b–4(f)(6)(iii) requires a selfregulatory organization to submit to the 

Commission written notice of its intent to file the 

proposed rule change, along with a brief description 

and text of the proposed rule change, at least five 

business days prior to the date of filing of the 

proposed rule change, or such shorter time as 

designated by the Commission. The Commission 

has waived the five-day pre-filing period in this 

case. 

9For the purposes only of waiving the 30-day 

operative delay, the Commission has considered the 

proposed rule’s impact on efficiency, competition, 

and capital formation. See 15 U.S.C. 78c(f). 

19b–4 under the Act,3 which renders 

the proposal effective upon receipt of 

this filing by the Commission. 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 

FINRA is proposing to extend the 

pilot program in FINRA Rule 6730(e)(4) 

to July 8, 2011. The pilot program does 

not require reporting to Trade Reporting 

and Compliance Engine (‘‘TRACE’’) 

transactions in TRACE-Eligible 

Securities that are executed on a facility 

of the NYSE in accordance with NYSE 

Rules 1400, 1401 and 86 and reported 

to NYSE in accordance with NYSE’s 

applicable trade reporting rules and 

disseminated publicly by NYSE. 

The text of the proposed rule change 

is available on FINRA’s Web site at 

http://www.finra.org, at the principal 

office of FINRA, 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, 

FINRA 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 these statements 

may be examined at the places specified 

in Item IV below. FINRA has prepared 

summaries, set forth in sections A, B, 

and C below, of the most significant 

aspects of such statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

FINRA proposes to amend FINRA 

Rule 6730(e)(4) to extend the pilot 

program, which is scheduled to expire 

on January 7, 2011, to July 8, 2011.4 The 

pilot program does not require reporting 

to TRACE transactions in TRACEEligible Securities that are executed on 

a facility of NYSE in accordance with 

NYSE Rules 1400, 1401 and 86 and 

reported to NYSE in accordance with 

NYSE’s applicable trade reporting rules 

and disseminated publicly by NYSE, 

provided that a data sharing agreement 

between FINRA and NYSE related to 

transactions covered by the Rule 

remains in effect. 

FINRA is proposing to extend the 

pilot program until July 8, 2011 to 

continue to exempt transactions in 

TRACE-Eligible Securities on an NYSE 

facility (and as to which all the other 

conditions of the exemption are met) 

from the TRACE reporting requirements. 

FINRA believes that the extension will 

provide additional time to analyze the 

impact of the exemption. Without the 

extension, members would be subject to 

both FINRA’s and NYSE’s trade 

reporting requirements with respect to 

these securities. 

The proposed rule change would not 

expand or otherwise change the pilot. 

FINRA notes that the success of the 

pilot program remains dependent on 

FINRA’s ability to effectively continue 

to conduct surveillance on corporate 

debt trading in the over-the-counter 

market. In this regard, FINRA Rule 

6730(e)(4) would continue to require 

that the exemption be predicated on the 

data agreement between FINRA and 

NYSE to share data related to the 

transactions covered by the Rule 

remaining in effect. However, FINRA 

supports a regulatory construct that, in 

the future, consolidates all last sale 

transaction information to provide 

better price transparency and a more 

efficient means to engage in market 

surveillance of TRACE-Eligible 

Securities transactions. The extension 

proposed herein will allow the pilot 

program to continue to operate without 

interruption while FINRA and the NYSE 

further assess the effect of the 

exemption and issues regarding the 

consolidation of market data, market 

surveillance and price transparency. 

FINRA has filed the proposed rule 

change for immediate effectiveness and 

has requested that the SEC waive the 

requirement that the proposed rule 

change not become operative for 30 days 

after the date of the filing, such that the 

pilot can continue to operate without 

interruption. 

2. Statutory Basis 

FINRA believes that the proposed rule 

change is consistent with the provisions 

of Section 15A(b)(6) of the Act,5 which 

requires, among other things, that 

FINRA rules must be designed to 

prevent fraudulent and manipulative 

acts and practices, to promote just and 

equitable principles of trade, and, in 

general, to protect investors and the 

public interest. FINRA believes that the 

extension of the exemptive provision 

protects investors and the public 

because transactions will be reported, 

transparency will be maintained for 

these transactions, and NYSE’s 

agreement to share data with FINRA 

allows FINRA, at this time, to conduct 

surveillance in the corporate debt 

securities market. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

FINRA does not believe that the 

proposed rule change will result in 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 

Written comments were neither 

solicited nor received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The Exchange represented that the 

proposed rule change qualifies for 

immediate effectiveness pursuant to 

Section 19(b)(3)(A) of the Exchange 

Act 6 and Rule 19b–4(f)(6) thereunder 7

because it: (i) Does not significantly 

affect the protection of investors or the 

public interest; (ii) does not impose any 

significant burden on competition; and 

(iii) by its terms, does not become 

operative for 30 days from the date on 

which it was filed, or such shorter time 

as the Commission may designate if 

consistent with the protection of 

investors and the public interest.8

The Exchange has requested that the 

Commission waive the 30-day operative 

delay, so that the proposed rule change 

may become operative upon filing. The 

Commission hereby grants the 

Exchange’s request.9 The Commission 

believes that waiving the 30-day 

operative delay is consistent with the 

protection of investors and the public 

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Federal Register / Vol. 76, No. 10 / Friday, January 14, 2011 / Notices 2741 

10 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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

4 17 CFR 240.19b–4(f)(2). 

5For a more detailed description of the PULSe 

workstation and its other functionalities, see, e.g., 

Securities Exchange Act Release No. 63246 

(November 4, 2010), 75 FR 69478 (November 12, 

2010)(SR–C2–2010–007). 

6 15 U.S.C. 78f(b). 

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

interest by allowing the continuation of 

the pilot program without interruption 

while permitting FINRA and NYSE to 

further assess the effects of the current 

exemption issues regarding the 

consolidation of market data, market 

surveillance, and price transparency. 

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. If the 

Commission takes such action, the 

Commission shall institute proceedings 

to determine whether the proposed rule 

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 (http://www.sec.gov/ 

rules/sro.shtml); or 

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

Number SR–FINRA–2011–002 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–FINRA–2011–002. 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 the filing also 

will be available for inspection and 

copying at the principal office of 

FINRA. 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–FINRA–2011–002 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. 2011–668 Filed 1–13–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63677; File No. SR–C2– 

2011–001] 

Self-Regulatory Organizations; C2 

Options Exchange, Incorporated: 

Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change Relating to PULSe Fees 

January 7, 2011. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 (the 

‘‘Act’’),1 and Rule 19b–4 thereunder,2

notice is hereby given that on January 3, 

2011, C2 Options Exchange, 

Incorporated (the ‘‘Exchange’’ or ‘‘C2’’) 

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 Exchange has designated this 

proposal as one establishing or changing 

a due, fee, or other charge imposed by 

the Exchange under Section 

19(b)(3)(A)(ii) of the Act 3 and Rule 19b– 

4(f)(2) thereunder.4 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 

Fees Schedule to extend a fee waiver 

related to the PULSe workstation. The 

text of the proposed rule change is 

available on the Exchange’s Web site 

(http://www.cboe.org/legal), at the 

Exchange’s Office of the Secretary and 

at the Commission. 

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 

Exchange 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 these 

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 aspects of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, Proposed Rule 

Change 

1. Purpose 

The purpose of this proposed rule 

change is to extend a fee waiver related 

to the PULSe workstation. 

By way of background, the PULSe 

workstation is a front-end order entry 

system designed for use with respect to 

orders that may be sent to the trading 

systems of C2. In addition to providing 

the capability to send orders to the C2 

market, the PULSe workstation will also 

provide a user with the capability to 

send options orders to other U.S. 

options exchanges and stock orders to 

other U.S. stock exchanges through a 

PULSe Routing Intermediary.5

The purpose of this proposed rule 

change is to extend the waiver of the 

PULSe Routing Intermediary fee. 

Currently the Exchange has waived the 

Routing Intermediary fee through 

December 31, 2010. The Exchange is 

proposing to extend this waiver through 

March 31, 2011. Thus this fee will be 

assessed beginning April 1, 2011. 

2. Statutory Basis 

The proposed rule change is 

consistent with Section 6(b) of the Act,6

in general, and furthers the objectives of 

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 C2 Permit 

Holders in that the same fee waivers are 

mstockstill on DSKH9S0YB1PROD with NOTICES