Federal Register / Vol. 77, No. 48 / Monday, March 12, 2012 / Notices 14579 

5 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3An ‘‘ATP Holder’’ is a natural person, sole 

proprietorship, partnership, corporation, limited 

liability company or other organization, in good 

standing, that has been issued an Amex Trading 

Permit. See NYSE Amex Rule 900.2NY(5). 

4The fee is calculated based on the maximum 

number of ATPs held by the ATP Holder during the 

calendar month. 

5A ‘‘Market Maker Authorized Trader’’ is an 

authorized trader who performs market making 

activities pursuant to Rule 920NY on behalf of an 

ATP Holder registered as a Market Maker. See 

NYSE Amex Rule 900.2NY(37). A Market Maker 

Authorized Trader must meet the same registration 

requirements as Floor Market Maker before they can 

be designated as a Market Maker Authorized 

Trader. See NYSE Amex Rule 921.1NY. 

6See Securities Exchange Act Release No. 66237 

(January 25, 2012), 77 FR 4848 (January 31, 2012) 

(SR–NYSEAmex–2012–02). 

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

8 15 U.S.C. 78f(b)(4). 

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 Section, 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 filings 

will also be available for inspection and 

copying at the principal office of ICC 

and on ICC’s Web site at https:// 

www.theice.com/publicdocs/ 

regulatory_filings/ 

ICEClearCredit_022912.pdf. 

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–ICC–2012–02 and should 

be submitted on or before April 2, 2012. 

For the Commission by the Division of 

Trading and Markets, pursuant to delegated 

authority.5

Kevin O’Neill, 

Deputy Secretary. 

[FR Doc. 2012–5872 Filed 3–9–12; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–66518; File No. SR– 

NYSEAmex–2012–15] 

Self-Regulatory Organizations; NYSE 

Amex LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Implementing Changes to 

the NYSE Amex Options Fee Schedule 

To Add Fees for Reserve Floor Market 

Maker Amex Trading Permits 

March 6, 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 February 

28, 2012, NYSE Amex LLC (the 

‘‘Exchange’’ or ‘‘NYSE Amex’’) 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 selfregulatory 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 proposes to 

[sic] amend the NYSE Amex Options 

Fee Schedule (‘‘Fee Schedule’’) to add 

fees for Reserve Floor Market Maker 

Amex Trading Permits (‘‘Reserve 

ATPs’’). 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 add fees for Reserve 

ATPs. 

Under the current Fee Schedule, an 

ATP Holder 3 acting as a Market Maker 

must pay $5,000 per month per Amex 

Trading Permit (‘‘ATP’’).4 In order to act 

as a Floor Market Maker, an individual 

must be specifically named on the 

relevant Market Maker’s ATP. On some 

occasions, a Floor Market Maker may be 

absent from the floor due to illness or 

other unexpected absence, in which 

case the ATP Holder may wish to have 

a Market Maker Authorized Trader 

(‘‘MMAT’’) 5 employee engage in open 

outcry trading to cover for the absent 

Floor Market Maker. If the ATP Holder 

activates an individual on an ATP for 

any portion of a month, even as little as 

one day, the ATP Holder is charged the 

full $5,000 monthly ATP fee. 

To provide an option to Market Maker 

firms to address the short-term absence 

of an employee in a more economical 

way, the Exchange recently added NYSE 

Amex Options Rule 902NY(j) to create 

a Reserve ATP under which an ATP 

Holder would be permitted to have a 

qualified MMAT employee cover for the 

absent Floor Market Maker under the 

firm’s ATP, effectively empowering the 

individual acting as a qualified MMAT 

to act as a Floor Market Maker in lieu 

of the absent individual until such time 

as he or she returns.6

The fee for a Reserve ATP will be 

$175 per month. The fee will be 

assessed to an ATP Holder that notifies 

the Exchange that it wishes to obtain a 

Reserve ATP, such that MMATs in its 

employ will be eligible to be named to 

the ATP to act as a Floor Market Maker 

to cover for another Floor Market Maker 

who is otherwise unable to be at work 

that day. The fee change will be 

implemented on March 1, 2012. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the provisions of Section 6(b) of the 

Securities Exchange Act of 1934 (the 

‘‘Act’’),7 in general, and Section 6(b)(4) 

of the Act,8 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 proposed 

change is equitably allocated and not 

unfairly discriminatory because it will 

apply equally to all ATP Holders that 

choose to use the Reserve ATP 

alternative. The Exchange believes that 

the proposed change is reasonable 

because it provides a method for ATP 

Holders to have fully qualified 

personnel step in to handle other 


pmangrum on DSK3VPTVN1PROD with NOTICES
14580 Federal Register / Vol. 77, No. 48 / Monday, March 12, 2012 / Notices 

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

10 17 CFR 240.19b–4(f)(2). 11 17 CFR 200.30–3(a)(12). 

1Release No. 34–55857 (June 5, 2007), 72 FR 

33564, 33598 (June 18, 2007). 

employees’ absences without requiring 

the ATP Holders to pay the full fee 

every month for the ATPs used by such 

substitute persons, thereby contributing 

to the efficient use of ATP Holder 

personnel and resources, and fair and 

orderly markets. 

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) 9 of the Act and 

subparagraph (f)(2) of Rule 19b–4 10

thereunder, because it establishes a due, 

fee, or other charge imposed by the 

NYSE Amex. 

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 email to rule-comments@

sec.gov. Please include File Number SR– 

NYSEAmex–2012–15 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–2012–15. 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 NW., 

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 

available publicly. All submissions 

should refer to File Number SR– 

NYSEAmex–2012–15 and should be 

submitted on or before April 2, 2012. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2012–5853 Filed 3–9–12; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–66514] 

Order Granting Temporary Exemption 

of Morningstar Credit Ratings, LLC 

From the Conflict of Interest 

Prohibition in Rule 17g–5(c)(1) of the 

Securities Exchange Act of 1934 

March 5, 2012. 

I. Introduction 

Rule 17g–5(c)(1) of the Securities 

Exchange Act of 1934 (‘‘Exchange Act’’) 

prohibits a nationally recognized 

statistical rating organization 

(‘‘NRSRO’’) from issuing or maintaining 

a credit rating solicited by a person that, 

in the most recently ended fiscal year, 

provided the NRSRO with net revenue 

equaling or exceeding 10% of the total 

net revenue of the NRSRO for the fiscal 

year. In adopting this rule, the 

Commission stated that such a person 

would be in a position to exercise 

substantial influence on the NRSRO, 

which in turn would make it difficult 

for the NRSRO to remain impartial.1

II. Application and Exemption Request 

of Morningstar Credit Ratings, LLC 

Morningstar Credit Ratings, LLC 

(‘‘Morningstar’’), formerly known as 

Realpoint LLC (‘‘Realpoint’’), is a credit 

rating agency registered with the 

Commission as an NRSRO under 

Section 15E of the Exchange Act for the 

classes of credit ratings described in 

clauses (i) through (v) of Section 

3(a)(62)(B) of the Exchange Act. 

Morningstar traditionally has operated 

mainly under the ‘‘subscriber-paid’’ 

business model, in which the NRSRO 

derives its revenue from restricting 

access to its ratings to paid subscribers. 

After Morningstar acquired Realpoint in 

the spring of 2010, Morningstar began to 

expand the scope of its business and 

initiated an issuer-paid ratings service 

for initial ratings on commercial 

mortgage-backed securities. In 

connection with this expansion, 

Morningstar has requested a temporary 

and limited exemption from Rule 17g– 

5(c)(1) on the grounds that the 

restrictions imposed by Rule 17g–5(c)(1) 

would pose a substantial constraint on 

the firm’s ability to compete effectively 

with large rating agencies offering 

comparable ratings services. 

Specifically, Morningstar argues that 

because the fees typically associated 

with issuer-paid engagements tend to be 

relatively high when compared to the 

fees associated with its existing 

subscriber-based business, in the early 

stages of its expansion the fees 

associated with a single issuer-paid 

engagement have exceeded ten percent 

of its total net revenue for the fiscal 

year. Accordingly, Morningstar has 

requested that the Commission grant it 

an exemption from Rule 17g–5(c)(1) for 

any revenues derived from nonsubscription based business during 

calendar years 2012 and 2013, which 

are the end of Morningstar’s 2011 and 

2012 fiscal years, respectively. 


pmangrum on DSK3VPTVN1PROD with NOTICES