612 Federal Register / Vol. 76, No. 3 / Wednesday, January 5, 2011 / Notices 

11The NMM Pilot was scheduled to expire on 

January 31, 2011 as well. On December 17, 2010 the 

NYSE filed to extend the NMM Pilot [sic] until 

August 1, 2011 (See SR–NYSE–2010–85) (extending 

the operation of the New Market Model Pilot to 

August 1, 2011). 

12 15 U.S.C. 78s(b)(3)(A). 

13 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 fulfilled this requirement. 

14The text of the proposed rule change is 

available on the Commission’s Web site at http:// 

www.sec.gov. 

15 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

convert the Pilot rule to a permanent 

rule. The Exchange is currently 

preparing a rule filing seeking 

permission to make the NYSE Amex 

Equities SLP Pilot permanent, but does 

not expect that filing to be completed 

and approved by the Commission before 

January 31, 2011.11

2. Statutory Basis 

The basis under the Securities 

Exchange Act of 1934 (the ‘‘Act’’) for this 

proposed rule change is the requirement 

under Section 6(b)(5) that an exchange 

have rules that are designed 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 the instant filing is consistent with 

these principles because the SLP Pilot 

provides its market participants with a 

trading venue that utilizes an enhanced 

market structure to encourage the 

addition of liquidity and operates to 

reward aggressive liquidity providers. 

Moreover, the instant filing requesting 

an extension of the SLP Pilot will 

permit adequate time for: (i) the 

Exchange to prepare and submit a filing 

to make the rules governing the SLP 

Pilot permanent; (ii) public notice and 

comment; and (iii) completion of the 

19b–4 approval process. 

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 

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) of the Act 12 and 

Rule 19b–4(f)(6) thereunder.13

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–NYSEAmex-2010–123 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–NYSEAmex-2010–123. 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.14 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– 

NYSEAmex-2010–123 and should be 

submitted on or before January 26, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.15

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–33255 Filed 1–4–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63616; File No. SR–NYSE– 

2010–86] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change Extending the 

Operation of Its Supplemental Liquidity 

Providers Pilot Until the Earlier of the 

Securities and Exchange Commission 

Approval To Make Such Pilot 

Permanent or August 1, 2011 

December 29, 2010. 

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

Securities Exchange Act of 1934 (the 

‘‘Act’’) and Rule 19b–4 thereunder,2

notice is hereby given that on December 

20, 2010, 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. 


jlentini on DSKJ8SOYB1PROD with NOTICES
Federal Register / Vol. 76, No. 3 / Wednesday, January 5, 2011 / Notices 613 

3See Securities Exchange Act Release No. 58877 

(October 29, 2008), 73 FR 65904 (November 5, 2008) 

(SR–NYSE–2008–108) (establishing the SLP Pilot). 

See also Securities Exchange Act Release Nos. 

59869 (May 6, 2009), 74 FR 22796 (May 14, 2009) 

(SR–NYSE–2009–46) (extending the operation of 

the SLP Pilot to October 1, 2009); 60756 (October 

1, 2009), 74 FR 51628 (October 7, 2009) (SR–NYSE– 

2009–100) (extending the operation of the New 

Market Model and the SLP Pilots to November 30, 

2009); 61075 (November 30, 2009), 74 FR 64112 

(December 7, 2009) (SR–NYSE–2009–119) 

(extending the operation of the SLP Pilot to March 

30, 2010); 61840 (April 5, 2010), 75 FR 18563 (April 

12, 2010) (SR–NYSE–2010–28) (extending the 

operation of the SLP Pilot to September 30, 2010); 

and 62813 (September 1, 2010), 75 FR 54686 

(September 8, 2010) (SR–NYSE–2010–62) 

(extending the operation of the SLP Pilot to January 

31, 2011). 

4The information contained herein is a summary 

of the NMM Pilot and the SLP Pilot. See supra note 

1 [sic] for a fuller description of those pilots. 

5See Securities Exchange Act Release No. 58845 

(October 24, 2008), 73 FR 64379 (October 29, 2008) 

(SR–NYSE–2008–46). 6See NYSE Rule 103. 7See NYSE Rule 107B. 

8The NMM Pilot was scheduled to expire on 

January 31, 2011. On December 17, 2010 the 

Exchange filed to extend the NMM Pilot until 

August 1, 2011 (See SR–NYSE–2010–85) (extending 

the operation of the New Market Model Pilot to 

August 1, 2011); See also Securities Exchange Act 

Release Nos. 62819 (September 1, 2010), 75 FR 

54937 (September 9, 2010) (SR–NYSE–2010–61) 

(extending the operation of the New Market Model 

Pilot to January 31, 2011); 61724 (March 17, 2010), 

75 FR 14221 (SR–NYSE–2010–25) (extending the 

operation of the New Market Model Pilot to 

September 30, 2010); and 61031 (November 19, 

2009), 74 FR 62368 (SR–NYSE–2009–113) 

(extending the operation of the New Market Model 

Pilot to March 30, 2010). 

9The NYSE Amex SLP Pilot (NYSE Amex 

Equities Rule 107B) is also being extended until 

August 1, 2011 or until the Commission approves 

it as permanent (See SR–NYSEAmex–2010–123). 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to extend the 

operation of its Supplemental Liquidity 

Providers Pilot (‘‘SLP Pilot’’ or ‘‘Pilot’’) 

(See Rule 107B), currently scheduled to 

expire on January 31, 2011, until the 

earlier of the Securities and Exchange 

Commission’s (‘‘SEC’’ or ‘‘Commission’’) 

approval to make such Pilot permanent 

or August 1, 2011. The text of the 

proposed rule change is available at the 

Exchange, the Commission’s Public 

Reference Room, and http:// 

www.nyse.com. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

self-regulatory organization included 

statements concerning the purpose of, 

and basis for, the proposed rule change 

and discussed any comments it received 

on the proposed rule change. The text 

of those statements may be examined at 

the places specified in Item IV below. 

The Exchange has prepared summaries, 

set forth in sections A, B, and C below, 

of the most significant parts of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to extend the 

operation of its Supplemental Liquidity 

Providers Pilot,3 currently scheduled to 

expire on January 31, 2011, until the 

earlier of Commission approval to make 

such Pilot permanent or August 1, 2011. 

Background 4

In October 2008, the NYSE 

implemented significant changes to its 

market rules, execution technology and 

the rights and obligations of its market 

participants all of which were designed 

to improve execution quality on the 

Exchange. These changes are all 

elements of the Exchange’s enhanced 

market model referred to as the ‘‘New 

Market Model’’ (‘‘NMM Pilot’’).5 The SLP 

Pilot was launched in coordination with 

the NMM Pilot (see Rule 107B). 

As part of the NMM Pilot, NYSE 

eliminated the function of specialists on 

the Exchange creating a new category of 

market participant, the Designated 

Market Maker or DMM.6 Separately, the 

NYSE established the SLP Pilot, which 

established SLPs as a new class of 

market participants to supplement the 

liquidity provided by DMMs.7

The SLP Pilot is scheduled to end 

operation on January 31, 2011 or such 

earlier time as the Commission may 

determine to make the rules permanent. 

The Exchange is currently preparing a 

rule filing seeking permission to make 

the SLP Pilot permanent, but does not 

expect that filing to be completed and 

approved by the Commission before 

January 31, 2011.8

Proposal To Extend the Operation of the 

SLP Pilot 

The NYSE established the SLP Pilot to 

provide incentives for quoting, to 

enhance competition among the existing 

group of liquidity providers, including 

the DMMs, and add new competitive 

market participants. The Exchange 

believes that the SLP Pilot, in 

coordination with the NMM Pilot, 

allows the Exchange to provide its 

market participants with a trading 

venue that utilizes an enhanced market 

structure to encourage the addition of 

liquidity, facilitate the trading of larger 

orders more efficiently and operates to 

reward aggressive liquidity providers. 

As such, the Exchange believes that the 

rules governing the SLP Pilot (Rule 

107B) should be made permanent. 

Through this filing the Exchange seeks 

to extend the current operation of the 

SLP Pilot until August 1, 2011, in order 

to allow the Exchange to formally 

submit a filing to the Commission to 

convert the Pilot rule to a permanent 

rule.9

2. Statutory Basis 

The basis under the Securities 

Exchange Act of 1934 (the ‘‘Act’’) for this 

proposed rule change is the requirement 

under Section 6(b)(5) that an exchange 

have rules that are designed 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 the instant filing is consistent with 

these principles because the SLP Pilot 

provides its market participants with a 

trading venue that utilizes an enhanced 

market structure to encourage the 

addition of liquidity and operates to 

reward aggressive liquidity providers. 

Moreover, the instant filing requesting 

an extension of the SLP Pilot will 

permit adequate time for: (i) the 

Exchange to prepare and submit a filing 

to make the rules governing the SLP 

Pilot permanent; (ii) public notice and 

comment; and (iii) completion of the 

19b–4 approval process. 

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 

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 


jlentini on DSKJ8SOYB1PROD with NOTICES
614 Federal Register / Vol. 76, No. 3 / Wednesday, January 5, 2011 / Notices 

10 15 U.S.C. 78s(b)(3)(A). 

11 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 fulfilled this requirement. 

12The text of the proposed rule change is 

available on the Commission’s Web site at http:// 

www.sec.gov. 

13 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3Active SQF ports refer to ports that receive 

inbound quotes at any time within that month. 

4See Securities Exchange Act Release No. 63034 

(October 4, 2010), 75 FR 62441 (October 8, 2010) 

(SR–Phlx–2010–124). 

change has become effective pursuant to 

Section 19(b)(3)(A) of the Act 10 and 

Rule 19b–4(f)(6) thereunder.11

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–2010–86 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–2010–86. 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 website (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.12 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– 

2010–86 and should be submitted on or 

before January 26, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–33256 Filed 1–4–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63619; File No. SR–Phlx– 

2010–181] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change as Modified 

by Amendment No. 1 Thereto by 

NASDAQ OMX PHLX LLC Relating to 

Active SQF Port Fee 

December 29, 2010. 

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 December 

16, 2010, NASDAQ OMX PHLX LLC 

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

Securities and Exchange Commission 

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

rule change as described in Items I, II, 

and III, below, which Items have been 

prepared by the Exchange. The 

Exchange submitted an amendment to 

the proposed rule change on December 

29, 2010 (‘‘Amendment No. 1’’) to clarify 

the purpose of the proposed fee change. 

The Commission is publishing this 

notice to solicit comments on the 

proposed rule change, as amended, 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 

Active Specialized Quote Feed (‘‘SQF’’) 

Port Fee to create a tiered schedule of 

fees. 

While changes to the Exchange’s Fee 

Schedule pursuant to this proposal are 

effective upon filing, the Exchange has 

designated this proposal to be operative 

for trades occurring on and after January 

3, 2011. 

The text of the proposed rule change 

is available on the Exchange’s Web site 

at http://nasdaqtrader.com/ 

micro.aspx?id=PHLXfilings, 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 

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, the Proposed Rule 

Change 

1. Purpose 

The purpose of the proposed rule 

change is to amend the Active SQF Port 

Fees to establish a tiered schedule of 

fees.3 SQF is an interface that enables 

specialists, Streaming Quote Traders 

(‘‘SQTs’’) and Remote Streaming Quote 

Traders (‘‘RSQTs’’) to connect and send 

quotes into Phlx XL. The Exchange 

released SQF 6.0 on October 11, 2010.4

The Exchange anticipates that member 

organizations will utilize both SQF 5.0 

and SQF 6.0 for a period of time. 

Currently, the Exchange assesses an 

Active SQF Port Fee of $500 per month 

per port. The Exchange would propose 

to eliminate the $500 Active Port Fee 

and instead assess members an Active 

Port Fee as follows: 


jlentini on DSKJ8SOYB1PROD with NOTICES