81702 Federal Register / Vol. 75, No. 248 / Tuesday, December 28, 2010 / Notices 

3See Securities Exchange Act Release No. 57176 

(January 18, 2008), 73 FR 4929 (January 28, 2008) 

(SR–NYSE–2008–04). 

4See Securities Exchange Act Release Nos. 57823 

(May 15, 2008), 73 FR 29804 (May 22, 2008) (SR– 

NYSE–2008–38), 59178 (December 30, 2008), 74 FR 

748 (January 7, 2009) (SR–NYSE–2008–137), 61201 

(December 18, 2009), 74 FR 68651 (December 28, 

2009) (SR–NYSE–2009–127), 62455 (July 6, 2010), 

75 FR 40004 (July 13, 2010) (SR–NYSE–2010–51). 

5 15 U.S.C. 78f. 

6 15 U.S.C. 78a. 

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). 

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 proposes to make 

permanent the pilot program that offers 

liquidity takers a reduced transaction 

fee structure for certain bond trades 

executed on the NYSE Bonds SM system 

(‘‘NYSE Bonds’’). The pilot program 

commenced in January 2008 3 and has 

been extended several times since that 

time.4 It is scheduled to expire on 

December 31, 2010. 

The pilot program reduces transaction 

fees charged to liquidity takers for 

transactions executed on NYSE Bonds 

with a staggered transaction fee 

schedule based on the number of bonds 

purchased or sold in excess of ten (10) 

bonds. When the liquidity taker 

purchases or sells from one to ten (10) 

bonds, the Exchange will charge an 

execution fee of $0.50 per bond; when 

the liquidity taker purchases or sells 

from eleven (11) to twenty five (25) 

bonds, the Exchange will charge an 

execution fee of $0.20 per bond, and 

when the liquidity taker purchases or 

sells twenty six (26) bonds or more, the 

Exchange charges an execution fee of 

$0.10 per bond. The Exchange imposes 

a $100 execution fee cap per 

transaction. 

For example, if a liquidity taker 

purchases or sells five (5) bonds, the 

Exchange charges $.50 per bond, or a 

total of $2.50 for execution fees. If a 

liquidity taker purchases or sells twenty 

(20) bonds, the Exchange charges $.20 

per bond or a total of $4.00 for 

execution fees. If a liquidity taker 

purchases or sells thirty (30) bonds, the 

Exchange charges $.10 per bond or a 

total of $3.00 for execution fees. 

The bond liquidity taker fee schedule 

has been in place for nearly two years 

and the Exchange believe that it is an 

equitable allocation of fees for users of 

the NYSE bond platform. As such, the 

Exchange believes that it is appropriate 

at this time to adopt the fee schedule on 

a permanent, rather than a pilot, basis. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the provisions of Section 6 5 of the 

Securities Exchange Act of 1934 (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. 

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 has become 

effective pursuant to Section 19(b)(3)(A) 

of the Act 8 and paragraph (f)(2) of Rule 

19b–4 thereunder,9 because it 

establishes a due, fee, or other charge 

imposed by the NYSE. 

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–NYSE–2010–83 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–2010–83. 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 website 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 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– 

2010–83 and should be submitted on or 

before January 18, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–32622 Filed 12–27–10; 8:45 am] 

BILLING CODE 8011–01–P 


emcdonald on DSK2BSOYB1PROD with NOTICES
Federal Register / Vol. 75, No. 248 / Tuesday, December 28, 2010 / Notices 81703 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 63161 

(October 22, 2010), 75 FR 66405 (October 28, 2010) 

(SR–EDGA–2010–15). 

4A User is defined in Exchange Rule 1.5(cc) as 

‘‘any Member or Sponsored Participant who is 

authorized to obtain access to the System pursuant 

to Rule 11.3’’. 

5Rule 11.5(c)(10) defines a Destination-on-Open 

order, in part, as ‘‘a market or limit order that 

instructs the System to route the order to a specified 

away trading center to participate in said trading 

center’s opening process, without being processed 

by the System as described below in Rule 

11.9(b)(1).’’ 

6The Exchange notes that when orders are routed 

to an away trading center, such away trading 

centers’ collar rules apply, when applicable, 

regardless of the Exchange’s proposed exclusion for 

Destination-on-Open orders. 

7See, e.g., Nasdaq Rule 4751(f)(13) which 

excludes market on open orders from the definition 

of ‘‘collared orders.’’ See also Securities Exchange 

Act Release No. 60371 (July 23, 2009), 74 FR 38075 

(July 30, 2009) (SR–Nasdaq–2009–070). 

8 15 U.S.C. 78f(b)(5). 

9 15 U.S.C. 78s(b)(3)(A). 

10 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6)(iii) requires a self-regulatory organization to 

provide the Commission with 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 

Exchange has met this requirement. 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63590; File No. SR–EDGA– 

2010–25] 

Self-Regulatory Organizations; EDGA 

Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend EDGA Rule 

11.5 

December 21, 2010. 

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 December 

13, 2010, EDGA Exchange, Inc. (the 

‘‘Exchange’’ or the ‘‘EDGA’’) filed with 

the Securities and Exchange 

Commission (‘‘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 the Substance 

of the Proposed Rule Change 

EDGA proposes to amend EDGA Rule 

11.5(a)(2) to provide that the system 

functionality that cancels any portion of 

a market order submitted to the 

Exchange that would execute at a price 

that is more than $0.50 or 5 percent 

worse than last sale at the time the order 

initially reaches the Exchange, 

whichever is greater, does not apply to 

Destination-on-Open orders, as defined 

in Rule 11.5(c)(10). The text of the 

proposed rule change is available on the 

Exchange’s Internet Web site at http:// 

www.directedge.com, on the 

Commission’s Web site at http:// 

www.sec.gov, 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 these statements may be examined at 

the places specified in Item IV below. 

The self-regulatory organization 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 

As provided in SR–EDGA–2010–15,3

Exchange Rule 11.5(a)(2) protects 

market participants from executions at 

prices that are significantly worse than 

the last sale at the time of order entry 

by providing Exchange system 

functionality that cancels any portion of 

a market order (as defined in Rule 

11.5(a)(2)) that would execute at a price 

that is 50 cents or 5 percentage points 

worse than the consolidated last sale, 

whichever is greater. Any portion of a 

market order that would otherwise 

execute outside of these thresholds is 

immediately cancelled back to the 

User.4

The Exchange proposes to modify 

Rule 11.5(a)(2) to provide that 

Destination-on-Open orders, as defined 

in Rule 11.5(c)(10),5 are not subject to 

these market collars.6 The rationale for 

this exception is twofold. First, using a 

reference price calculation for market 

collar thresholds at the open of trading 

is problematic because of the potential 

lack of trading activity just prior to the 

open and the resulting price dislocation. 

Therefore, the reference price for a 

market collar on a Destination-on-Open 

order could be out of line with the 

market at the open of the regular trading 

session. In addition, other Exchanges 

also address this issue similarly by 

excluding market on open orders as 

well.7

2. Statutory Basis 

The statutory basis for the proposed 

rule change is Section 6(b)(5) of the 

Act,8 which requires the rules of an 

exchange to promote just and equitable 

principles of trade, to remove 

impediments to and perfect the 

mechanism of a free and open market 

and a national market system and, in 

general, to protect investors and the 

public interest. The Exchange believes 

that excluding Destination-on-Open 

orders from the application of market 

collars is appropriate in order to avoid 

the potential dislocation between the 

reference price for a market collar on a 

Destination-on-Open order and the 

market at the open of the regular trading 

session. Accordingly, the modifications 

to Exchange Rule 11.5 promote just and 

equitable principles of trade, remove 

impediments to, and perfect the 

mechanism of, a free and open market 

and a national market system. 

The Exchange will issue an 

information circular to all Members 

prior to implementation, which will be 

on or about December 14, 2010. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The proposed rule change does not 

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 Regarding the 

Proposed Rule Change Received From 

Members, Participants or Others 

The Exchange has not solicited, and 

does not intend to solicit, comments on 

this proposed rule change. The 

Exchange has not received any 

unsolicited written comments from 

members or other interested parties. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the foregoing proposed rule 

change: (1) Does not significantly affect 

the protection of investors or the public 

interest; (2) does not impose any 

significant burden on competition; and 

(3) by its terms does not become 

operative for 30 days after the date of 

this filing, or such shorter time as the 

Commission may designate if consistent 

with the protection of investors and the 

public interest, the proposed rule 

change has become effective pursuant to 

Section 19(b)(3)(A) 9 of the Act and Rule 

19b–4(f)(6) thereunder.10


emcdonald on DSK2BSOYB1PROD with NOTICES
81704 Federal Register / Vol. 75, No. 248 / Tuesday, December 28, 2010 / Notices 

11 17 CFR 240.19b–4(f)(6). 

12 17 CFR 240.19b–4(f)(6)(iii). 

13 Id. 

14For purposes only of waiving the operative 

delay for this proposal, the Commission has 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

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

15See supra note 7. 

16 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. 

4 15 U.S.C. 78s(b)(2). 

5See Securities Exchange Act Release Nos. 63256 

(November 5, 2010), 75 FR 69503 (November 12, 

2010). 

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

7 17 CFR 200.30–3(a)(31). 

A proposed rule change filed under 

Rule 19b–4(f)(6) 11 normally may not 

become operative prior to 30 days after 

the date of filing. However, Rule 19b– 

4(f)(6)(iii) 12 permits the Commission to 

designate a shorter time if such action 

is consistent with the protection of 

investors and the public interest. The 

Exchange requests that the Commission 

waive the 30-day operative delay, as 

specified in Rule 19b–4(f)(6)(iii),13

which would make the proposed rule 

change effective and operative upon 

filing. The Commission believes that 

waiving the 30-day operative delay is 

consistent with the protection of 

investors and the public interest.14 The 

Commission notes that the proposal is 

based on the rules of another SRO that 

similarly excludes market on open 

orders from its market collar 

functionality.15 Accordingly, the 

Commission designates the proposed 

rule change operative upon filing with 

the Commission. 

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 (http://www.sec.gov/ 

rules/sro.shtml); or 

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

Number SR–EDGA–2010–25 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–EDGA–2010–25. 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 

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 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–EDGA–2010–25 and should 

be submitted on or before January 18, 

2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.16

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–32614 Filed 12–27–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63582; File No. SR–FINRA– 

2010–055] 

Self-Regulatory Organizations; 

Financial Industry Regulatory 

Authority, Inc.; Notice of Designation 

of a Longer Period for Commission 

Action on Proposed Rule Change To 

Amend FINRA Rule 6140 (Other 

Trading Practices) 

December 21, 2010. 

On October 29, 2010, the Financial 

Industry Regulatory Authority, Inc. 

(‘‘FINRA’’), filed with the Securities and 

Exchange Commission (‘‘Commission’’), 

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

Securities Exchange Act of 1934 

(‘‘Act’’),2 and Rule 19b–4 thereunder,3 a 

proposed rule change to amend FINRA 

Rule 6140 to eliminate the provisions 

regarding the handling of stop orders, 

delete definitions relating to stop stock 

transactions, and to relocate the 

definition of ‘‘initial public offering.’’ 

Section 19(b)(2) of the Act– 4 provides 

that within forty-five days of the 

publication of notice of the filing of a 

proposed rule change, or within such 

longer period as the Commission may 

designate up to ninety days of such date 

if it finds such longer period to be 

appropriate and publishes its reasons 

for so finding, the Commission shall 

either approve or disapprove the 

proposed rule change, or institute 

proceedings to determine whether the 

proposed rule change should be 

disapproved. The 45th day for the filing 

submitted by FINRA will be December 

27, 2010.5

The Commission finds it appropriate 

to designate a longer period within 

which to take action on the proposed 

rule change so that it has sufficient time 

to consider the proposed rule change, 

relating to the elimination of the FINRA 

provisions regarding the handling of 

stop orders and the deletion of 

definitions relating to stop stock 

transactions, and the comment letters 

that have been submitted in connection 

with the filing. 

Accordingly, the Commission, 

pursuant to Section 19(b)(2) of the Act,6

designates February 10, 2011, as the 

date by which the Commission should 

either approve or disapprove, or 

institute proceedings to determine 

whether to disapprove the proposed 

rule change. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.7

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–32516 Filed 12–27–10; 8:45 am] 

BILLING CODE 8011–01–P 


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