Federal Register / Vol. 77, No. 32 / Thursday, February 16, 2012 / Notices 9287 

31 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3Securities Exchange Act Release No. 66043 

(December 23, 2011), 76 FR 82329 (‘‘Notice’’). 

4The UTP Pilot Program is scheduled to expire 

on the earlier of Commission approval to make such 

pilot permanent or July 31, 2012. See Securities 

Exchange Act Release No. 66040 (December 23, 

2011), 76 FR 82324 (December 30, 2011). 

5These obligations are also included within 

current NYSE Amex Equities Rule 504. 

6Under NYSE Amex Equities Rule 103B(II)(C), 

‘‘more active’’ securities are those with a 

consolidated average daily volume equal to or 

greater than one million shares per calendar month. 

7The Exchange proposed to make conforming 

changes to NYSE Amex Equities Rule 504(b)(1)(A), 

which contains a requirement similar to NYSE 

Amex Equities Rule 509(a)(1) requiring DMM Units 

to quote at the NBBO on average at least 10% of 

the trading day. 

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

9 15 U.S.C. 78f(b)(5). 

10 In approving the proposed rule change, the 

Commission notes that it has considered the 

proposed rule’s impact on efficiency, competition, 

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

11 15 U.S.C. 78l(f). 

All submissions should refer to File 

Number SR–NYSEArca–2012–09. This 

file number should be included on the 

subject line if email 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 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– 

NYSEArca–2012–09 and should be 

submitted on or before March 8, 2012. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.31

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2012–3610 Filed 2–15–12; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–66371; File No. SR– 

NYSEAmex–2011–101] 

Self-Regulatory Organizations; NYSE 

Amex LLC.; Order Granting Approval 

of Proposed Rule Change Amending 

NYSE Amex Equities Rules 504 and 

509 To Modify the Quoting 

Requirements Applicable to 

Designated Market Maker Units 

Registered in Nasdaq Stock Market 

Securities Traded on the Exchange 

Subject to the Unlisted Trading 

Privileges Pilot Program 

February 10, 2012. 

I. Introduction 

On December 15, 2011, NYSE Amex 

LLC (‘‘NYSE Amex’’ or ‘‘Exchange’’) 

filed with the Securities and Exchange 

Commission (‘‘Commission’’), pursuant 

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

Exchange Act of 1934 (‘‘Act’’) 1 and Rule 

19b–4 thereunder,2 a proposed rule 

change to modify the quoting 

requirements applicable to Designated 

Market Maker (‘‘DMM’’) units registered 

in Nasdaq Stock Market securities 

traded on the Exchange pursuant to a 

grant of unlisted trading privileges 

(‘‘UTP’’). The proposed rule change was 

published for comment in the Federal 

Register on December 30, 2011.3 The 

Commission received no comment 

letters on the proposal. This order 

approves the proposed rule change. 

II. Description of the Proposal 

Certain securities listed on Nasdaq 

may be traded on NYSE Amex pursuant 

to a grant of unlisted trading privileges 

as part of a pilot program on the 

Exchange (‘‘UTP Pilot Program’’).4

NYSE Amex’s proposal seeks to modify 

the UTP Pilot Program’s obligations 

imposed on DMM units who quote in 

such securities. 

Currently, under NYSE Amex Equities 

Rule 509(a)(1), DMM units who are 

registered in securities subject to the 

UTP Pilot Program must maintain 

continuous two-sided quotes at the 

National Best Bid or Offer (‘‘NBBO’’) 

with reasonable size for each such 

security for at least 10% of the time 

during the regular business hours of the 

Exchange for each calendar month.5 The 

proposal would amend NYSE Amex 

Equities Rule 509(a)(1) to lower a DMM 

unit’s quoting obligations for ‘‘more 

active’’ 6 securities in the UTP Pilot 

Program from at least 10% of the time 

during the regular trading day to at least 

5% of the time during the regular 

trading day.7 The proposed quoting 

obligations would continue to apply on 

a security-by-security basis. The current 

quoting obligation for ‘‘less active’’ 

securities, i.e., those with a consolidated 

average daily volume of less than one 

million shares per calendar month, 

would remain unchanged at 10% of the 

time during the regular trading day. 

The Exchange also proposes to delete 

from NYSE Amex Equities Rule 

504(b)(1)(A) the text that references 

NYSE Amex Equities Rule 103B(II), 

which provides for security allocation 

eligibility. The Exchange represented 

that this reference is not necessary 

within Rule 504(b)(1)(A), and that, 

despite the proposed deletion, DMM 

units would remain subject to NYSE 

Amex Equities Rule 103B(II) with 

respect to security allocation eligibility. 

III. Discussion and Commission 

Findings 

After careful review, the Commission 

finds that the proposed rule change is 

consistent with the requirements of the 

Act and the rules and regulations 

thereunder that are applicable to a 

national securities exchange, and, in 

particular, with the requirements of 

Section 6(b) of the Act.8 In particular, 

the proposed change is consistent with 

Section 6(b)(5) of the Act,9 because it 

would promote just and equitable 

principles of trade, and, in general, 

protect investors and the public 

interest.10 The Commission also finds 

that the proposed rule change is 

consistent with Section 12(f) of the 

Act,11 because it furthers the goals of 

maintaining fair and orderly markets, 

and protecting investors and the public 


srobinson on DSK4SPTVN1PROD with NOTICES
9288 Federal Register / Vol. 77, No. 32 / Thursday, February 16, 2012 / Notices 

12See NYSE Amex Equities Rule 104(a)(1)(A). 

13 15 U.S.C. 78s(b)(2). 

14 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3Under NYSE Arca Options Rule 6.72, options on 

certain issues have been approved to trade in a 

minimum price variation of $0.01 as part of a pilot 

program that is scheduled to expire on June 30, 

2012. 

interest, for securities traded pursuant 

to UTP. 

The Exchange proposes to reduce 

DMM units’ quoting obligations 

applicable to ‘‘more active’’ securities 

traded in the UTP Pilot Program to 

quoting at the NBBO for 5% of the 

trading day. The Commission notes that 

this percentage would reflect the 

quoting requirement currently 

applicable to DMM units quoting nonUTP Pilot Program securities, i.e., those 

listed on the Exchange.12 There would 

be one significant difference between 

the proposed quoting obligation for the 

UTP Pilot Program and the current 

quoting obligation for non-UTP Pilot 

Program securities—UTP Pilot Program 

quoting obligations are and would 

continue to be calculated on a securityby-security basis, rather than averaged 

across a portfolio of all of a DMM unit’s 

assigned securities. The Commission 

believes that this security-by-security 

basis calculation is reasonably designed 

to maintain robust quotes for all UTP 

Pilot Program securities. In addition, the 

Exchange’s proposal would reduce 

quoting obligations only for ‘‘more 

active’’ securities, which by definition 

are more liquid and may, therefore, be 

less reliant on quoting obligations for 

continued liquidity. Finally, based on 

the Exchange’s experience during the 

UTP Pilot Program, the proposed 

quoting obligation is designed to ensure 

the continued active participation by 

DMM units in such securities. 

The Commission also finds that the 

proposed deletion in NYSE Amex 

Equities Rule 504(b)(1)(A) to the 

reference to NYSE Amex Equities Rule 

103B(II) is consistent with the Act. The 

Exchange represented that this reference 

is not necessary within Rule 

504(b)(1)(A), and that, despite the 

proposed deletion, DMM units would 

remain subject to NYSE Amex Equities 

Rule 103B(II) with respect to security 

allocation eligibility. 

For the foregoing reasons, the 

Commission finds that the proposal to 

amend the UTP Pilot Program is 

consistent with the requirements of the 

Act. 

IV. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,13 that the 

proposed rule change (SR–NYSEAmex– 

2011–101) be, and it hereby is, 

approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.14

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2012–3611 Filed 2–15–12; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–66377; File No. SR– 

NYSEArca–2012–12] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Implementing Changes to 

the NYSE Arca Options Fee Schedule 

Relating to Post Liquidity Credits 

February 10, 2012. 

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 

31, 2012, NYSE Arca, Inc. (the 

‘‘Exchange’’ or ‘‘NYSE Arca’’) 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 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 the 

NYSE Arca Options Fee Schedule (‘‘Fee 

Schedule’’) to increase the Post 

Liquidity credits on Customer posted 

electronic executions and to delete 

references to Royalty Fees for foreign 

currency options, which the Exchange 

no longer trades. The text of the 

proposed rule change is available at the 

Exchange, the Commission’s Public 

Reference Room, and 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 amend the 

Fee Schedule to increase the Post 

Liquidity credits on Customer posted 

electronic executions and to delete 

references to Royalty Fees for foreign 

currency options, which the Exchange 

no longer trades. The Exchange 

proposes to make the rule change 

operative on February 1, 2012. 

Post Liquidity Credits 

Electronic transactions in Penny Pilot 

issues 3 are assessed Take Liquidity fees 

and credited with Post Liquidity credits. 

Under the current Fee Schedule, the 

Post Liquidity credit is $0.25 per 

contract for Customers, $0.32 per 

contract for Lead Market Makers and 

Market Makers, and $0.10 per contract 

for Firms and Broker Dealers. OTP 

Holders that provide aggregated 

Customer posting volume in Penny Pilot 

issues that exceeds certain thresholds 

receive higher Post Liquidity credits on 

all Customer posted electronic 

executions. Specifically, an OTP Holder 

sending Customer orders that in the 

aggregate exceed 500,000 contracts 

executed in a month from posting 

liquidity receives a Post Liquidity credit 

of $0.32 per contract on all executions 

resulting from posted liquidity. If such 

aggregated Customer orders exceed 

800,000 contracts executed in a month 

from posting liquidity, the OTP Holder 

receives a Post Liquidity credit of $0.34 

per contract on all executions resulting 

from posted liquidity. If such aggregated 

Customer orders exceed 1,200,000 

contracts executed in a month from 

posting liquidity, the OTP Holder 

receives a Post Liquidity credit of $0.38 

per contract on all executions resulting 

from posted liquidity. The volume 

thresholds are intended to incentivize 

firms to route additional Customer 

orders to the Exchange. 

The Exchange proposes to amend the 

volume thresholds for the Post Liquidity 

credits by lowering the initial volume 

threshold to qualify for the first level of 

higher Post Liquidity credits, generally 

raising the amount of the Post Liquidity 


srobinson on DSK4SPTVN1PROD with NOTICES