16302 Federal Register / Vol. 77, No. 54 / Tuesday, March 20, 2012 / Notices 

34 15 U.S.C. 78s(b)(3)(A). 

35 17 CFR 240.19b–4(f)(2). 

36 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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. 

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 

• Use the Commission’s Internet 

comment form (http://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rulecomments@sec.gov. Please include File 

No. SR–NYSE–2012–07 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 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. 

[FR Doc. 2012–6709 Filed 3–19–12; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–66599; File No. SR– 

NYSEAmex–2012–17] 

Self-Regulatory Organizations; NYSE 

Amex LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Implementing Fee 

Changes Relating to Trading Nasdaq 

Securities Pursuant to Unlisted 

Trading Privileges 

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, NYSE Amex LLC (‘‘NYSE Amex’’ 

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 


srobinson on DSK4SPTVN1PROD with NOTICES
Federal Register / Vol. 77, No. 54 / Tuesday, March 20, 2012 / Notices 16303 

3The Exchange notes that the proposed rebates 

will be the same as the rebates that were in place 

prior to September 1, 2011. See Securities Exchange 

Act Release No. 65283 (September 7, 2011), 76 FR 

56850 (September 14, 2011) (SR–NYSEAmex–2011– 

67). 

4See id. 

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

6 15 U.S.C. 78f(b)(4). 

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 its 

2012 Price List (‘‘Price List’’) for certain 

fees relating to trading securities listed 

on the Nasdaq Stock Market LLC 

(‘‘Nasdaq securities’’) pursuant to 

unlisted trading privileges (‘‘UTP’’). The 

text of the proposed rule change is 

available at the Exchange, 

www.nyse.com, and 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 the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to amend its 

Price List for certain fees relating to 

trading Nasdaq securities pursuant to 

UTP. The amended pricing will become 

operative on March 1, 2012. 

Currently, market participants and 

Designated Market Makers (‘‘DMMs’’) 

are charged a fee of $0.0004 per share 

for orders in Nasdaq securities with a 

share price of $1 or more and a fee of 

0.20% of total dollar value of the 

transaction for orders in Nasdaq 

securities with a share price below $1 

traded pursuant to UTP that take 

liquidity. Under the proposal, the fee 

will be $0.0027 per share for orders with 

a share price of $1 or more that take 

liquidity and 0.30% of total dollar value 

of the transaction for orders with a share 

price below $1 that take liquidity. 

Currently, market participants and 

DMMs are charged a fee of $0.0025 per 

share for orders in Nasdaq securities 

with a share price of $1 or more and a 

fee of 0.20% of total dollar value of the 

transaction for orders in Nasdaq 

securities with a share price below $1 

that route to other markets. Under the 

proposal, the fee will be $0.0027 per 

share for such orders with a share price 

of $1 or more and .30% of total dollar 

value of the transaction for such orders 

with a share price below $1. 

Market participants, other than DMMs 

and Supplemental Liquidity Providers 

(‘‘SLPs’’), that provide liquidity in 

Nasdaq securities with a share price of 

$1 or more traded pursuant to UTP are 

currently paid a rebate of $0.0010 per 

share. Under the proposal, such market 

participants will be paid a rebate of 

$0.0030 per share. 

Currently, for orders in Nasdaq 

securities with a share price of $1 or 

more traded pursuant to UTP that 

provide liquidity, DMMs are paid a 

rebate of $0.0020 per share, SLPs that 

meet their quoting requirements 

pursuant to NYSE Amex Rule 107B are 

paid a rebate of $0.0011 per share, and 

SLPs that do not meet their quoting 

requirements are paid a rebate of 

$0.0010 per share. Under the proposal, 

the rebate for such orders will be 

$0.0031 per share for DMMs, $0.0031 

per share for SLPs that meet their 

quoting requirements, and $0.0030 per 

share for SLPs that provide liquidity but 

do not meet their quoting 

requirements.3

Currently, market participants and 

SLPs are paid a rebate of $0.0020 per 

share for executions of displayed 

liquidity in Nasdaq securities with a 

share price of $1 or more when they are 

adding liquidity in orders that originally 

display a minimum of 2,000 shares with 

a trading price of at least $5.00 per 

share, as long as the order is not 

cancelled in an amount that would 

reduce the original displayed amount 

below 2,000 shares. Under the proposal, 

market participants and SLPs will be 

paid a rebate of $0.0036 per share for 

executions of displayed liquidity in 

Nasdaq securities with a share price of 

$1 or more when they are adding 

liquidity in orders that originally 

display a minimum of 2,000 shares with 

a trading price of at least $5.00 per 

share, as long as the order is not 

cancelled in an amount that would 

reduce the original displayed amount 

below 2,000 shares. 

Currently, DMMs receive a rebate of 

$0.0020 per share in Nasdaq securities 

with a share price of $1 or more traded 

pursuant to UTP for executions of the 

displayed portions of s-Quotes that 

provide liquidity and display 2,000 

shares or more at the time of execution 

with a trading price of at least $5.00 per 

share. Under the proposal, DMMs will 

be paid a rebate of $0.0036 per share for 

executions of the displayed portions of 

s-Quotes that provide liquidity and 

display 2,000 shares or more at the time 

of execution with a trading price of at 

least $5.00 per share. 

The Exchange also proposes a 

technical change to remove language in 

the Price List that references reduced 

fees for market participants that meet 

certain average daily executed volume 

requirements; those reduced fees were 

eliminated in September 2011 and this 

text was inadvertently not removed at 

that time.4 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 

the provisions of Section 6(b) of the 

Securities Exchange Act of 1934 (the 

‘‘Act’’),5 in general, and Section 6(b)(4) 

of the Act,6 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 proposal 

does not constitute an inequitable 

allocation of fees, as all similarly 

situated market participants will be 

charged or credited the same amount 

and access to the Exchange’s market is 

offered on fair and non-discriminatory 

terms. 

With respect to the increased credits 

for providing liquidity, the Exchange 

believes that the credits will attract 

more volume to the Exchange from 

participants that are seeking to lower 

their overall transaction costs and 

thereby will result in a more 

competitive market in the trading of 

Nasdaq securities pursuant to UTP. The 

Exchange further believes that the 

increases in the fees for DMMs, SLPs, 

and market participants for taking 

liquidity are appropriate in light of the 

increase in credits for providing 

liquidity. The Exchange also believes 

that it is reasonable not to increase the 

credits for providing liquidity in Nasdaq 

securities with a share price below $1 

because there are only a small number 

of issues that trade below $1, these 

shares are thinly traded, and increased 

credits could have the potential of being 

greater than the spread, creating an 

inappropriate incentive to trade. 

The Exchange believes that raising the 

fee for routing to other markets for 


srobinson on DSK4SPTVN1PROD with NOTICES
16304 Federal Register / Vol. 77, No. 54 / Tuesday, March 20, 2012 / Notices 

7See supra note 4. 

8See BATS BYX Exchange Fee Schedule, 

available at http://batstrading.com/resources/ 

regulation/rule_book/BYX_Fee_Schedule.pdf. 

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). 

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

2 17 CFR 240.19b–4. 

orders in Nasdaq securities with a share 

price of $1 or more to $0.0027 is 

reasonable because the fee is lower than 

the fee previously charged by the 

Exchange 7 and lower than routing fees 

charged by other markets, including 

BATS BYX with its CYCLE routing fee 

of $0.0028 per share.8 The Exchange 

believes that raising the fee for routing 

to other markets for orders in Nasdaq 

securities with a share price below $1 to 

0.30% of total dollar value of the 

transaction is reasonable because it will 

cover the costs associated with routing 

orders away from the Exchange. 

With respect to the increase in rebates 

to DMMs, SLPs, and market participants 

for providing liquidity in 2,000 or more 

share orders for securities priced at $5 

or more, the Exchange believes that the 

proposed rebates are fair given that the 

Exchange is increasing the fee for taking 

liquidity. The Exchange believes the fee 

change will attract more displayed 

liquidity, lower transaction costs, and 

improve overall trading. 

Finally, the Exchange notes that it 

operates in a highly competitive market 

in which market participants can 

readily favor competing venues if they 

deem fee levels at a particular venue to 

be excessive. In such an environment, 

the Exchange must continually adjust its 

fees to remain competitive with other 

exchanges and with alternative trading 

systems that have been exempted from 

compliance with the statutory standards 

applicable to exchanges. The Exchange 

believes that the proposed rule change 

reflects this competitive environment 

because it will broaden the conditions 

under which customers may qualify for 

higher liquidity provider credits. 

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 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 

• Use the Commission’s Internet 

comment form (http://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rulecomments@sec.gov. Please include File 

No. SR–NYSEAmex–2012–17 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 No. 

SR–NYSEAmex–2012–17. 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– 

NYSEAmex–2012–17 and should be 

submitted on or before April 10, 2012. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2012–6708 Filed 3–19–12; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–66596; File No. SR–ISE– 

2012–18] 

Self-Regulatory Organizations; 

International Securities Exchange, 

LLC; Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change To Increase Certain Rebates 

for Certain Complex Orders 

March 14, 2012. 

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

Securities Exchange Act of 1934 (the 

‘‘Exchange Act’’) 1 and Rule 19b–4 

thereunder,2 notice is hereby given that 

on March 1, 2012, the International 

Securities Exchange, LLC (the 

‘‘Exchange’’ or the ‘‘ISE’’) 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 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 ISE is proposing to increase 

certain rebate amounts for certain 

complex orders. The text of the 

proposed rule change is available on the 

Exchange’s Web site (http:// 

www.ise.com), at the principal office of 

the Exchange, and at the Commission’s 

Public Reference Room. 


srobinson on DSK4SPTVN1PROD with NOTICES