[Federal Register Volume 77, Number 54 (Tuesday, March 20, 2012)]
[Notices]
[Pages 16298-16302]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-6709]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-66600; File No. SR-NYSE-2012-07]


Self-Regulatory Organizations; New York Stock Exchange LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
Implementing Certain Changes to the Transaction Fees and Credits Within 
the New York Stock Exchange Price List

March 14, 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 March 1, 2012, New York Stock Exchange LLC (``NYSE'' 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 Commission is publishing this notice to solicit comments 
on the proposed rule change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposing certain changes to the transaction fees and 
credits within its Price List, which the Exchange proposes to become 
operative on March 1, 2012. 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 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

[[Page 16299]]

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 the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange is proposing certain changes to the transaction fees 
and credits within its Price List, which the Exchange proposes to 
become operative on March 1, 2012.\3\
---------------------------------------------------------------------------

    \3\ Unless stated otherwise, the fees and credits discussed 
herein are not applicable to transactions with a per-share price of 
less than $1.00.
---------------------------------------------------------------------------

Member Organizations
    The Exchange proposes the following changes to the transaction fees 
and credits in the Price List that are applicable to member 
organizations:
    <bullet> Member organizations currently receive a credit of $0.0015 
per-share per-transaction that adds liquidity, both displayed and non-
displayed, to the NYSE. The Exchange proposes that the existing $0.0015 
per-share credit remain applicable to a member organization's 
transactions that add liquidity to the NYSE, except for a member 
organization's Non-Displayed Reserve Order transactions that add 
liquidity to the NYSE, for which a lower credit of $0.0010 per-share 
will apply.\4\
---------------------------------------------------------------------------

    \4\ See NYSE Rule 13 (Definitions of Orders). A Non-Displayed 
Reserve Order is a limit order that is not displayed, but remains 
available for potential execution against all incoming automatically 
executing orders until executed in full or cancelled.
---------------------------------------------------------------------------

    <bullet> A member organization's charges for executions at the 
opening are currently capped at $10,000 per-month per-member 
organization.\5\ The Exchange proposes to increase the cap to $15,000 
per-month per-member organization.
---------------------------------------------------------------------------

    \5\ See footnote 2 within the Price List.
---------------------------------------------------------------------------

    <bullet> A member organization is currently charged $0.00085 per-
share per-transaction for a Market At-The-Close (``MOC'') Order or a 
Limit At-The-Close (``LOC'') Order,\6\ unless the member organization 
executes an average daily trading volume (``ADV'') of MOC and LOC 
Orders on the NYSE in the relevant calendar month of at least 14 
million shares, in which case the member organization is charged 
$0.00055 per-share per-transaction for MOC and LOC Orders. The Exchange 
proposes to increase the fee for MOC and LOC Orders for member 
organizations that do not reach the 14 million threshold to 
$0.00095.\7\
---------------------------------------------------------------------------

    \6\ See NYSE Rule 13. The Exchange proposes a technical change 
to conform the use of the terms MOC and LOC throughout the Price 
List, where applicable.
    \7\ The Exchange is not proposing to change the existing 
$0.00055 fee for member organizations that do reach the 14 million 
share threshold.
---------------------------------------------------------------------------

    <bullet> Member organizations are currently charged $0.0023 per-
share for all other transactions that are not otherwise specified in 
the Price List (i.e., when taking liquidity from the NYSE). The 
Exchange proposes that this $0.0023 rate only apply to non-Floor broker 
transactions.\8\ The Exchange also proposes to charge non-Floor broker 
member organizations that add specified amounts of liquidity to the 
NYSE above their normal amount (``step-up'') a lower rate of $0.0022 
per-share per-transaction.\9\ This lower rate would apply to a non-
Floor broker member organization whose ADV that adds liquidity to the 
NYSE during the billing month (``Adding ADV'') \10\ is at least the 
greater of (i) the member organization's January 2012 Adding ADV 
(``Baseline ADV'') plus 0.075% of consolidated average daily volume in 
NYSE-listed securities during the billing month (``NYSE CADV'') or (ii) 
the member organization's Baseline ADV plus 20%.\11\
---------------------------------------------------------------------------

    \8\ As described below, Floor brokers would instead be charged 
$0.0022 per-share for their other transactions that are not 
otherwise specified in the Price List.
    \9\ The Exchange proposes to amend the Price List to reflect 
that the current $0.0023 rate would apply (i) only to non-Floor 
broker transactions and (ii) only if the lower rate of $0.0022 
proposed herein does not apply.
    \10\ The Exchange proposes to specify, with respect to this 
proposed lower rate, that calculations of Adding ADV would exclude 
early closing days as well as any liquidity added by a Designated 
Market Maker (``DMM'').
    \11\ For example, assume that a particular member organization's 
Baseline ADV was five million shares and that NYSE CADV during the 
billing month was four billion shares. To qualify for the lower 
rate, the member organization would need to have an Adding ADV 
during the billing month that is at least the greater of (i) eight 
million shares (i.e., five million Baseline ADV plus three million 
step-up (0.075% X four billion NYSE CADV)) or (ii) six million 
shares (i.e., five million Baseline ADV plus one million step-up 
(120% of Baseline ADV)). The Exchange recognizes that a firm that 
becomes a member organization after January 2012 would have a 
Baseline ADV of zero. In this regard, a new member organization 
would need to have an Adding ADV during the billing month of at 
least three million shares (i.e., zero Baseline ADV plus three 
million step-up (0.075% X four billion NYSE CADV)) for the $0.0022 
rate to apply.
---------------------------------------------------------------------------

    Additionally, if a member organization's ratio of Baseline ADV-to-
total ADV during January 2012 is less than 10%, the $0.0022 rate would 
only apply to the member organization's shares that are executed in an 
amount up to and including 0.75% of NYSE CADV. The current rate of 
$0.0023 per-share would apply to the member organization's remaining 
shares that are executed, unless the member organization's Adding ADV 
is greater than its Baseline ADV by at least 0.25% of NYSE CADV.\12\
---------------------------------------------------------------------------

    \12\ Continuing with the example above, if the member 
organization maintains a ratio of Baseline ADV-to-total ADV during 
January 2012 of less than 10%, the $0.0022 rate would apply to the 
member organization's first 30 million shares that are executed 
(i.e., 0.75% X four billion NYSE CADV) and the current $0.0023 rate 
would apply to the member organization's remaining shares that are 
executed, unless the member organization's Adding ADV is greater 
than 15 million shares (i.e., five million Baseline ADV plus 10 
million step-up (0.25% X four billion NYSE CADV)), in which case the 
$0.0022 rate would apply to all of the member organization's shares 
that are executed. The Exchange recognizes that a firm that becomes 
a member organization after January 2012 would have a ratio of 
Baseline ADV-to-total ADV during January 2012 that is zero. In this 
regard, the $0.0022 rate would apply only to the new member 
organization's first 30 million shares that are executed, unless the 
new member organization's Adding ADV is greater than 10 million, in 
which case the $0.0022 rate would apply to all of the new member 
organization's shares that are executed.
---------------------------------------------------------------------------

    <bullet> The Price List contains several rates applicable to member 
organization transactions with a per-share price of less than $1.00. 
Except for those transactions that are free or that result in a credit, 
the Price List generally specifies that the applicable rate is the 
lesser of (i) 0.3% of the total dollar value of the transaction or (ii) 
the same rate that would apply if the price per-share was not below 
$1.00.\13\ The Exchange proposes that, except for those that are 
currently free or that result in a credit, the rate for these 
transactions with a per-share price of less than $1.00 be 0.3% of the 
total dollar value of the transaction.
---------------------------------------------------------------------------

    \13\ The Exchange notes that this is explicit where the Price 
Lists specifies that the routing fee applicable to securities with a 
per-share price below $1.00 is the lesser of (i) 0.3% of the total 
dollar value of the transaction or (ii) the routing fee that would 
be applicable if the price per-share was not below $1.00. In 
contrast, this is inherent where, for example, the Price List 
specifies that the fee applicable to MOC and LOC executions in 
securities with a per-share price below $1.00 is the lesser of (i) 
0.3% of the total dollar value of the transaction or (ii) $0.00085--
the same MOC/LOC fee that would be applicable if the price per-share 
was not below $1.00.
---------------------------------------------------------------------------

Floor Brokers
    The Exchange proposes the following changes to the transaction fees 
and credits in the Price List that are applicable to Floor brokers:
    <bullet> Floor brokers are currently charged $0.0029 per-share for 
orders that are routed from the NYSE and executed in another market. 
Other member organizations are charged $0.0030 per-share for orders 
that are routed from the

[[Page 16300]]

NYSE and executed in another market.\14\ The Exchange proposes to 
charge Floor brokers the same $0.0030 rate as other member 
organizations. Accordingly, the Exchange proposes to remove from the 
Price List the text that differentiates between the routing fees for 
Floor brokers and other member organizations.
---------------------------------------------------------------------------

    \14\ DMMs and Supplemental Liquidity Providers (``SLPs'') are 
also charged a $0.0030 per-share routing fee.
---------------------------------------------------------------------------

    <bullet> Floor brokers are currently charged $0.0023 for all other 
transactions that are not otherwise specified in the Price List (i.e., 
when taking liquidity from the NYSE). As referenced above, the Exchange 
proposes to decrease this fee to $0.0022 for all other Floor broker 
transactions.
DMMs
    The Exchange proposes the following changes to the transaction fees 
and credits in the Price List that are applicable to DMMs:
    <bullet> Except for executions at the opening, which are free, DMMs 
are currently charged $0.0015 per-share per-transaction that removes 
liquidity from the Exchange. The Exchange proposes to increase this fee 
to $0.0023 per-share per-transaction.
    <bullet> DMMs currently receive a rebate of $0.0005 per-share for 
executions at the close. The Exchange proposes to modify this rate so 
that DMM executions at the close are free.
    <bullet> DMMs are currently eligible for rebates of $0.0025 per-
share when adding liquidity in More Active Securities \15\ if the DMM 
meets the More Active Securities Quoting Requirement.\16\ DMMs are also 
eligible for rebates of $0.0030 per-share when adding liquidity in More 
Active Securities when the DMM meets both (i) the More Active 
Securities Quoting Requirement and (ii) the More Active Securities 
Quoted Size Ratio Requirement \17\ when providing liquidity that is 20% 
or less of the NYSE's total intraday adding liquidity in each such 
security for that month.\18\ DMMs are eligible for a rebate of $0.0026 
per-share for added incremental liquidity over 20% of the NYSE's total 
intraday adding liquidity in each such security for that month.
---------------------------------------------------------------------------

    \15\ ``More Active Securities'' are those with an ADV in the 
previous month equal to or greater than one million shares.
    \16\ A DMM meets the ``More Active Securities Quoting 
Requirement'' when a More Active Security has a stock price of $1.00 
or more and the DMM quotes at the National Best Bid or Offer 
(``NBBO'') in the applicable security at least 10% of the time in 
the applicable month.
    \17\ See footnote 7 within the Price List. A DMM meets the 
``More Active Securities Quoted Size Ratio Requirement'' when the 
DMM Quoted Size for an applicable month is 15% of the NYSE Quoted 
Size. The Exchange proposes a technical change to specify that the 
DMM Quoted Size for the applicable month must be ``at least'' 15% of 
the NYSE Quoted Size. The ``NYSE Quoted Size'' is calculated by 
multiplying the average number of shares quoted on the NYSE at the 
NBBO by the percentage of time the NYSE had a quote posted at the 
NBBO. The ``DMM Quoted Size'' is calculated by multiplying the 
average number of shares of the applicable security quoted at the 
NBBO by the DMM by the percentage of time during which the DMM 
quoted at the NBBO.
    \18\ The NYSE total intraday adding liquidity is totaled monthly 
and includes all NYSE adding liquidity, excluding NYSE open and NYSE 
close volume, by all NYSE participants, including SLPs, customers, 
Floor brokers and DMMs.
---------------------------------------------------------------------------

    The Exchange proposes a new rebate of $0.0026 per-share when adding 
liquidity in More Active Securities if (i) the DMM meets both the More 
Active Securities Quoting Requirement and the More Active Securities 
Quoted Size Ratio Requirement and (ii) the DMM's providing liquidity is 
10% or less of the NYSE's total intraday adding liquidity in each such 
security for that month.\19\ The current $0.0030 per-share rebate would 
be applicable for securities in which the DMM's providing liquidity is 
more than 10% but less than or equal to 20% of the NYSE's total 
intraday adding liquidity in each such security for that month. 
Additionally, the Exchange proposes to increase the existing $0.0026 
per-share rebate to $0.0029 and that this rebate be applicable for 
securities in which the DMM's providing liquidity is more than 20% of 
the NYSE's total intraday adding liquidity in each such security for 
that month.\20\
---------------------------------------------------------------------------

    \19\ The Exchange proposes to remove duplicative language 
describing ``NYSE total intraday adding liquidity.'' The Exchange 
also proposes to make certain non-substantive changes to renumber 
the existing $0.0030 and $0.0026 rebates as ``(b)'' and ``(c),'' 
respectively.
    \20\ The Exchange notes that the proposed $0.0029 per-share 
rebate would be applicable to all of the member organization's 
adding liquidity in each such security for that month, not just the 
incremental liquidity that is more than 20% of the NYSE's total 
intraday adding liquidity.
---------------------------------------------------------------------------

SLPs
    The Exchange proposes the following changes to the transaction fees 
and credits in the Price List that are applicable to SLPs:
    <bullet> SLPs are eligible for credits when adding liquidity to the 
NYSE.\21\ The amount of the credit is determined by the ``tier'' that 
the SLP qualifies for, which is based on the SLP's level of quoting and 
the ADV of liquidity added by the SLP in assigned securities. The 
credits currently range from $0.0015 per-share per-transaction for the 
lowest tier (tier 4) to $0.0022 per-share per-transaction for the 
highest tier (tier 1).\22\ The Exchange proposes to apply a credit 
within each tier for executions of Non-Displayed Reserve Orders that 
would be $0.0005 less than the current credit, which, going forward, 
would be applicable to the SLP's other executions that add liquidity to 
the NYSE.\23\
---------------------------------------------------------------------------

    \21\ SLP credits are not applicable to executions of securities 
with a per-share price of $1.00 or more at the close.
    \22\ The rate applicable to executions of securities with a per-
share price of less than $1.00 is $0.0005.
    \23\ For example, if an SLP's executions fall within tier 3, 
then the existing $0.0020 tier 3 rate would remain applicable to the 
SLP's executions that add liquidity other than executions of Non-
Displayed Reserve Orders, for which a rate of $0.0015 would apply.
---------------------------------------------------------------------------

    <bullet> The Exchange proposes that the existing tier 1 credit, 
which is currently $0.0022 per-share per-transaction, be increased to 
$0.0024 per-share per-transaction.\24\
---------------------------------------------------------------------------

    \24\ Consistent with the proposed differentiation between 
executions of Non-Displayed Reserve Orders and other executions, the 
Exchange proposes that the tier 1 SLP credit for executions of Non-
Displayed Reserve Orders that add liquidity be $0.0019 per-share 
per-transaction. To qualify for tier 1, an SLP must (i) meet or 
exceed the 10% quoting requirement in an assigned security pursuant 
to NYSE Rule 107B, and (ii) add liquidity of an ADV of more than 10 
million shares for all assigned SLP securities in the aggregate and, 
for each assigned SLP security, add liquidity of more than 2.5% of 
NYSE CADV for that assigned SLP security in the applicable month.
---------------------------------------------------------------------------

Crossing Session II
    Crossing Session II (``CSII'') runs on the Exchange from 4 p.m. to 
6:30 p.m. Eastern Time and handles member organization crosses of a 
basket of securities of aggregate-priced buy and sell orders.\25\ A fee 
of $0.0001 per-share currently applies to both sides of a CSII 
execution, and a cap of $50,000 per-month in CSII execution fees is 
applicable per-member organization. The Exchange proposes to increase 
the CSII fee to $0.0002 per-share for each side of the transaction and 
increase the monthly cap on CSII fees to $100,000.
---------------------------------------------------------------------------

    \25\ See NYSE Rules 900-907.
---------------------------------------------------------------------------

General
    The Exchange proposes to include a reference within the Price List 
to the last date on which the Price List was amended.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Securities Exchange Act of 1934 (the 
``Act''),\26\ in general, and furthers the objectives of Section 
6(b)(4) of the Act,\27\ in particular, because it provides for the 
equitable allocation of reasonable dues, fees, and other charges among 
its members,

[[Page 16301]]

issuers and other persons using its facilities. The proposed rule 
change is equitably allocated and not unfairly discriminatory because 
it applies uniformly to all similarly situated member organizations.
---------------------------------------------------------------------------

    \26\ 15 U.S.C. 78f(b).
    \27\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

    Specifically, the Exchange believes that the proposed rule change 
is reasonable, equitable and not unfairly discriminatory because it is 
intended to incentivize member organizations to submit additional 
amounts of displayed liquidity to the Exchange during the trading day. 
For example, the proposed higher credits applicable to member 
organization executions other than Non-Displayed Reserve Orders would 
incentivize member organizations to instead provide displayed liquidity 
on the Exchange. This would similarly be true with respect to providing 
a larger credit to SLP executions other than executions of Non-
Displayed Reserve Orders.
    The Exchange further believes that the proposed rule change is 
reasonable, equitable and not unfairly discriminatory because it is 
intended to incentivize member organizations to submit additional 
liquidity to the Exchange during the trading day, regardless of whether 
such liquidity is displayed or non-displayed. For example, the proposal 
to increase the credit provided for tier 1 SLP transactions would 
incentivize SLPs to provide greater liquidity on NYSE in their assigned 
securities. Similarly, the proposed lower fee for removing liquidity 
for member organizations that ``step-up'' is intended to incentivize 
member organizations to submit specified amounts of liquidity to the 
Exchange during the trading day above their normal amounts submitted to 
the Exchange. The Exchange further believes that the proposed step-up 
concept is reasonable, equitable and not unfairly discriminatory 
because it is substantially similar to the manner in which other 
exchanges apply more favorable transaction rates for members that 
increase the amount of liquidity their transactions provide on those 
exchanges.\28\ The Exchange notes that non-Floor brokers would be 
required to step-up to qualify for the lower rate, whereas the lower 
rate would apply to Floor broker transactions without the attendant 
step-up requirement. The Exchange believes that this is reasonable, 
equitable and not unfairly discriminatory because Floor brokers 
generally submit orders to the Exchange in an agency capacity, while 
other member organizations can choose to submit orders in an agency or 
principal capacity, or both. Floor brokers therefore have less 
flexibility with respect to actively determining to add increased 
amounts of liquidity on the Exchange.
---------------------------------------------------------------------------

    \28\ See, e.g., the ``Step Up Tiers'' within the NYSE Arca 
Equities, Inc. Fee Schedule.
---------------------------------------------------------------------------

    Increasing the current fee for MOC and LOC Orders with a per-share 
price of $1.00 or more is also reasonable, equitable and not unfairly 
discriminatory because these fees would be less than the fees charged 
by the Exchange's primary competitors. Also, changing the rate for DMM 
executions at the close, from a $0.0005 rebate to free, is reasonable, 
equitable and not unfairly discriminatory because it would further 
align the DMM closing rate with the rate applicable to other member 
organizations. The Exchange believes that increasing the cap for 
transactions at the opening is reasonable, equitable and not unfairly 
discriminatory because a member organization that reaches the cap would 
continue to be charged a marginal rate for its transactions at the 
opening that is lower than the $0.0005 rate that would be applicable 
without the cap (i.e., once a member organization reaches the cap, its 
per-transaction rate thereafter will be zero and its marginal rate will 
decrease for each additional transaction at the open thereafter). The 
Exchange also believes that increasing the fee for CSII transactions 
and the monthly cap that is currently applicable thereto is reasonable, 
equitable and not unfairly discriminatory because the rate would 
continue to be less than the rate applicable to executions of MOC and 
LOC Orders and,\29\ generally, because it would more closely align the 
CSII rate with the other rates within the Price List,\30\ while 
maintaining a cap for member organizations that are particularly active 
during CSII. The Exchange further believes that the aspects of the 
proposed rule change that encourage liquidity on the Exchange are 
reasonable, equitable and not unfairly discriminatory because they 
would apply uniformly to all similarly situated member organizations 
and because they would contribute to price discovery on the Exchange 
and benefit investors generally.
---------------------------------------------------------------------------

    \29\ For example, the proposed rate of $0.0002 would continue to 
be substantially less than the rate for executions of MOC and LOC 
Orders, which is currently $0.00055 or $0.00085 per transaction, 
with the latter rate proposed to be $0.00095.
    \30\ For example, except for transactions that are free, both 
the current and proposed CSII rate of $0.0001 and $0.0002, 
respectively, are substantially less than the next lowest fee within 
the Price List (i.e., the $0.0005 rate for transactions at the 
opening).
---------------------------------------------------------------------------

    The proposed change to the Floor broker charge for routing orders 
to away markets and the Floor broker charge for all other transactions 
not otherwise specified in the Price List (i.e., when taking liquidity 
from the NYSE) is reasonable, equitable and not unfairly discriminatory 
because, taken together, they are not expected to materially increase 
or decrease the net fees charged to Floor brokers in the aggregate. 
Additionally, the Exchange believes that the proposed change to the 
rates for member organization executions with a per-share price of less 
than $1.00 is reasonable, equitable and not unfairly discriminatory 
because it would simplify the Price List. Due to the limited number of 
securities that trade on the Exchange at a price below $1.00 and the 
resulting limited number of executions on the Exchange with a per-share 
price of less than $1.00,\31\ the Exchange does not anticipate that 
this change would have a more than negligible impact on transaction 
fees charged to member organizations.\32\ Furthermore, the Exchange 
notes that the rate of 0.3% of the total dollar value of the 
transaction would remain consistent with the pricing limitations for 
securities with a per-share price of less than $1.00 under Rule 610(c) 
under Regulation NMS.\33\
---------------------------------------------------------------------------

    \31\ The Exchange notes that securities for which the average 
closing price reported on the consolidated tape is less than $1.00 
over a consecutive 30 trading-day period are subject to being 
delisted from the Exchange. See Section 802.01C (Price Criteria for 
Capital or Common Stock) of the NYSE Listed Company Manual.
    \32\ The Exchange notes that, depending on the value of the 
transaction, this change could result in either an increase or 
decrease in the rate per-transaction.
    \33\ 17 CFR 242.610(c).
---------------------------------------------------------------------------

    The Exchange believes that the proposed increase in the DMM rate 
for transactions that remove liquidity from the Exchange is reasonable, 
equitable and not unfairly discriminatory because it would align the 
DMM rate for removing liquidity with the rate applicable to certain 
other member organizations.
    The Exchange has also proposed a new rebate of $0.0026 per-share 
when adding liquidity in More Active Securities if the DMM meets both 
the More Active Securities Quoting Requirement and the More Active 
Securities Quoted Size Ratio Requirement when providing liquidity that 
is 10% or less of the NYSE's total intraday adding liquidity in each 
such security for that month. Accordingly, the current $0.0030 per-
share rebate would be applicable for securities in which the DMM's 
providing liquidity is more than 10% but less than or equal to 20% of 
the NYSE's total intraday adding liquidity in each such security

[[Page 16302]]

for that month. The Exchange recognizes that the rebate for a DMM whose 
providing liquidity is currently 10% or less of the NYSE's total 
intraday adding liquidity will decrease from $0.0030 to $0.0026. The 
Exchange believes that this change is reasonable, equitable and not 
unfairly discriminatory because it would result in rebates being 
applied that are more representative of the amount of liquidity added 
by the particular DMM. In this regard, the Exchange believes that a DMM 
that meets both the More Active Securities Quoting Requirement and the 
More Active Securities Quoted Size Ratio Requirement is likely to also 
be providing liquidity that is reasonably close to, but not greater 
than, 10% of the NYSE's total intraday adding liquidity in each such 
security for that month. In contrast, the Exchange believes that a DMM 
whose providing liquidity is greater than 10% of the NYSE's total 
intraday adding liquidity would be adding liquidity above the amount 
associated with meeting both the More Active Securities Quoting 
Requirement and the More Active Securities Quoted Size Ratio 
Requirement. Accordingly, the Exchange considers it reasonable, 
equitable and not unfairly discriminatory to provide a higher rebate 
for a DMM whose providing liquidity is greater than 10% of the NYSE's 
total intraday adding liquidity in each such security for that month.
    The Exchange notes that the current $0.0026 per-share rebate would 
no longer be applicable only to the incremental liquidity that is more 
than 20% of the NYSE's total intraday adding liquidity in each such 
security for that month. In this regard, the Exchange believes that the 
proposal to increase the rebate to $0.0029 is reasonable, equitable and 
not unfairly discriminatory because it would balance the effect of the 
rate applying on a cumulative basis, as opposed to incrementally.
    The Exchange also believes that the technical amendments proposed 
herein would better assist member organizations and others that view 
the Price List in determining the fees and credits that are applicable 
on the Exchange.

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) \34\ of the Act and subparagraph (f)(2) of Rule 
19b-4 \35\ thereunder, because it establishes a due, fee, or other 
charge imposed by the NYSE.
---------------------------------------------------------------------------

    \34\ 15 U.S.C. 78s(b)(3)(A).
    \35\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

    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

    <bullet> Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
    <bullet> Send an email to <a href="/cdn-cgi/l/email-protection#92e0e7fef7bff1fdfffff7fce6e1d2e1f7f1bcf5fde4"><span class="__cf_email__" data-cfemail="6a181f060f47090507070f041e192a190f09440d051c">[email protected]</span></a>. Please include 
File No. SR-NYSE-2012-07 on the subject line.

Paper Comments

    <bullet> 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 No. SR-NYSE-2012-07. 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 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 No. SR-NYSE-2012-07 and should be 
submitted on or before April 10, 2012.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\36\
Kevin M. O'Neill,
Deputy Secretary.
---------------------------------------------------------------------------

    \36\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

[FR Doc. 2012-6709 Filed 3-19-12; 8:45 am]
BILLING CODE 8011-01-P


</pre><script data-cfasync="false" src="/cdn-cgi/scripts/5c5dd728/cloudflare-static/email-decode.min.js"></script></body>
</html>