Federal Register / Vol. 76, No. 3 / Wednesday, January 5, 2011 / Notices 611 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 61308 

(January 7, 2010), 75 FR 2573 (January 15, 2010) 

(SR–NYSEAmex-2009–98) (establishing the NYSE 

Amex Equities SLP Pilot). See also Securities 

Exchange Act Release Nos. 61841 (April 5, 2010), 

75 FR 18560 (April 12, 2010) (SR–NYSEAmex2010–33) (extending the operation of the SLP Pilot 

to September 30, 2010); 62814 (September 1, 2010), 

75 FR 54671 (September 8, 2010) (SR–NYSEAmex2010–88) (extending the operation of the SLP Pilot 

to January 31, 2011); 58877 (October 29, 2008), 73 

FR 65904 (November 5, 2008) (SR–NYSE–2008– 

108) (establishing the SLP Pilot); 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] and infra [sic] note 3 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 and NYSE Amex Equities Rules 107B. 

8See Securities Exchange Act Release Nos. 58877 

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

(SR–NYSE–2008–108) (adopting SLP pilot 

program); 59869 (May 6, 2009), 74 FR 22796 (May 

14, 2009) (SR–NYSE–2009–46) (extending SLP pilot 

program until October 1, 2009); 60756 (October 1, 

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

2009–100) (extending SLP pilot program until 

November 30, 2009); 61075 (November 30, 2009), 

74 FR 64112 (December 7, 2009) (SR–NYSE–2009– 

119) (extending SLP pilot program until March 30, 

2010); 61840 (April 5, 2010), 75 FR 18563 (April 12, 

2010) (SR–NYSE–2010–28) (extending the SLP Pilot 

until September 30, 2010); and 62813 (September 

1, 2010), 75 FR 54686 (September 8, 2010) (SR– 

NYSE–2010–62) (extending the SLP Pilot until 

January 31, 2011). 

9See SR–NYSE–2010–86. 

10See Securities Exchange Act Release No. 61308 

(January 7, 2010), 75 FR 2573 (January 15, 2010) 

(SR–NYSEAmex-2009–98). 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63615; File No. SR– 

NYSEAmex-2010–123] 

Self-Regulatory Organizations; NYSE 

Amex 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, NYSE Amex LLC (the 

‘‘Exchange’’ or ‘‘NYSE Amex’’) 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 extend the 

operation of its Supplemental Liquidity 

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

(See Rule 107B—NYSE Amex Equities), 

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 New York Stock 

Exchange LLC (‘‘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 NYSE. These 

changes were all elements of the NYSE’s 

and the Exchange’s enhanced market 

model referred to as the ‘‘New Market 

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

Pilot was launched in coordination with 

the NMM Pilot (see NYSE 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 NYSE adopted NYSE Rule 107B 

governing SLPs as a six-month pilot 

program commencing in November 

2008. This NYSE pilot has been 

extended several times, most recently to 

January 31, 2011.8 The NYSE is in the 

process of requesting an extension of 

their SLP Pilot until August 1, 2011 or 

until the Commission approves the pilot 

as permanent.9 The extension of the 

NYSE SLP Pilot until August 1, 2011 

runs parallel with the extension of the 

NMM pilot: August 1, 2011, or until the 

Commission approves the NMM Pilot as 

permanent. 

Proposal To Extend the Operation of the 

NYSE Amex Equities SLP Pilot 

NYSE Amex Equities 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. NYSE 

Amex Equities Rule 107B is based on 

NYSE Rule 107B. NYSE Amex Rule 

107B was filed with the Commission on 

December 30, 2009, as a ‘‘me too’’ filing 

for immediate effectiveness as a pilot 

program.10 The NYSE Amex Equities 

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 believes that the SLP 

Pilot, in coordination with the NMM 

Pilot and the NYSE SLP 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 (NYSE Amex 

Equities 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 


jlentini on DSKJ8SOYB1PROD with NOTICES
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