Federal Register / Vol. 77, No. 11 / Wednesday, January 18, 2012 / Notices 2585 

14 15 U.S.C. 78s(b)(3)(A)(ii). 

15 17 CFR 240.19b–4(f)(2). 16 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

Exchange’s trading facilities in those 

particular categories. 

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 either 

solicited or received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The proposed rule change is to take 

effect pursuant to Section 19(b)(3)(A)(ii) 

of the Act 14 and subparagraph (f)(2) of 

Rule 19b–4 thereunder 15 because it 

establishes or changes a due, fee or 

other charge applicable to the 

Exchange’s members and non-members, 

which renders the proposed rule change 

effective upon filing. 

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. 

As more fully discussed above, the 

Exchange believes that the proposed 

changes represent a fair and reasonable 

structure designed to create different fee 

and rebate amounts to incent activity 

among all Participants within the 

Exchange’s trading facilities. 

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 

Number SR–CHX–2012–01 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–CHX–2012–01. 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–CHX– 

2012–01 and should be submitted on or 

before February 8, 2012. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.16

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2012–779 Filed 1–17–12; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–66138; File No. SR–NYSE– 

2011–70] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change Amending the 

NYSE Price List To Revise Its Schedule 

of Rebates Paid to Designated Market 

Makers for Providing Liquidity on the 

Exchange and To Delete References to 

Round and Odd Lot Transactions 

January 11, 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 December 

30, 2011, New York Stock Exchange 

LLC (‘‘NYSE’’ or ‘‘Exchange’’) 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 its 

Price List to revise its schedule of 

rebates paid to Designated Market 

Makers (‘‘DMMs’’) for providing 

liquidity on the Exchange and to delete 

references to round and odd lot 

transactions. 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. 


tkelley on DSK3SPTVN1PROD with NOTICES
2586 Federal Register / Vol. 77, No. 11 / Wednesday, January 18, 2012 / Notices 

3 ‘‘More Active Securities’’ are securities with an 

average daily consolidated volume (‘‘ADV’’) in the 

previous month equal to or greater than 1,000,000 

shares per month. 

4The ‘‘More Active Securities Quoting 

Requirement’’ is met if the 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. 

5A 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 ‘‘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. 

6The Exchange currently sends each DMM a 

daily file with that DMM’s daily and month to date 

volumes and quoting performance for each 

individual DMM stock. The Exchange includes in 

that daily file the DMM’s intraday providing 

volume and NYSE intraday providing volume by 

DMM stock, which will allow each DMM to track 

their month to date status for the monthly rebates, 

which will be totaled on a monthly basis. 

7See n. 6 of the Price List. 

8See Securities Exchange Act Release No. 62578 

(July 27, 2010), 75 FR 45185 (August 2, 2010) (SR– 

NYSE–2010–43). 

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

10 15 U.S.C. 78f(b)(4). 

11Compare NYSE Rule 104 (obligations for 

DMMs) versus NYSE Rule 107B (obligations for 

SLPs). 

12 15 U.S.C. 78s(b)(3)(A). 

13 17 CFR 240.19b–4(f)(2). 

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 its 

Price List to revise its schedule of 

rebates paid to DMMs for providing 

liquidity on the Exchange and to delete 

references to round and odd lot 

transactions. 

Currently, DMMs earn a rebate of 

$0.0030 per share when adding liquidity 

in More Active Securities 3 if the More 

Active Security has a stock price of $1 

or more and the DMM meets (i) the 

More Active Securities Quoting 

Requirement 4 and (ii) the More Active 

Securities Quoted Size Ratio 

Requirement.5 The Exchange proposes 

to modify this rebate as follows: 

• DMMs will continue to earn a 

rebate of $0.0030 per share for adding 

liquidity that is 20% or less than 

NYSE’s total intraday adding liquidity 

in shares of each More Active Security 

for that month if the More Active 

Security has a stock price of $1 or more 

and the DMM meets (i) the More Active 

Securities Quoting Requirement and (ii) 

the More Active Securities Quoted Size 

Ratio Requirement. 

• DMMs adding liquidity in those 

same securities will earn a rebate of 

$0.0026 per share for any incremental 

adding liquidity in each such security 

for that month that exceeds 20% of 

NYSE’s total intraday adding liquidity. 

• For the purposes of paying the 

DMM rebate, the NYSE total intraday 

adding liquidity will be totaled 

monthly 6 and will include all NYSE 

adding liquidity, excluding NYSE open 

and NYSE close volume, by all NYSE 

participants, including Supplemental 

Liquidity Providers (‘‘SLP’’), customers, 

Floor brokers, and DMMs. 

Rebates will be applied when (i) 

posting displayed and non-displayed 

orders on Display Book, including squote and s-quote reserve orders; (ii) 

when providing liquidity on nondisplayed interest using the Capital 

Commitment Schedule; and (iii) when 

executing trades in the crowd and at 

Liquidity Replenishment Points.7

For example, in a More Active 

Security (with a stock price of $1 or 

more) in a given month where the DMM 

meets the More Active Securities 

Quoting Requirement and the More 

Active Securities Quoted Size Ratio 

Requirement, if a DMM’s intraday 

adding liquidity for that month is 

30,000,000 shares, and total NYSE 

intraday adding liquidity is 100,000,000 

shares, the DMM will earn a rebate of 

$0.0030 per share for the first 

20,000,000 shares of adding liquidity 

because those shares are at or below the 

20% intraday adding share threshold. 

The DMM will earn a rebate of $0.0026 

per share for the remaining 10,000,000 

shares because those shares exceed the 

20% intraday adding share threshold. 

For other More Active Securities, with 

a stock price of $1 or more, where the 

DMM meets the More Active Securities 

Quoting Requirement and the More 

Active Securities Quoted Size Ratio 

Requirement, and the DMM’s share of 

intraday adding liquidity is at or below 

the 20% intraday adding share 

threshold, the DMM will earn a rebate 

of $0.0030 per share for all adding 

liquidity for the More Active Securities. 

Finally, the Exchange proposes to 

delete references to round and odd lot 

transactions in the Price List, which are 

outdated in light of the 

decommissioning of the odd lot 

system.8 Since the decommissioning of 

the odd lot system, all per share 

transaction fees and credits have been 

applied at the round lot rate. 

The proposed rule filing will be 

effective January 1, 2012[.] [sic] 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the provisions of Section 6 of the 

Securities Exchange Act of 1934 (the 

‘‘Act’’),9 in general, and Section 

6(b)(4) 10 of the Act, 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 rebates are equitably 

allocated and not unfairly 

discriminatory because they will apply 

equally to all DMMs. NYSE believes that 

the rebate of $0.0026 for intraday adding 

liquidity that exceeds 20% share of 

NYSE total adding liquidity as 

described above is reasonable because 

DMMs have greater obligations than 

SLPs,11 so it is reasonable to pay DMMs 

a $0.0026 rebate, which is still slightly 

higher than the SLPs’ rebate of up to 

$0.0022. Additionally, the $0.0026 

rebate is reasonable because it is still 

higher than the $0.0025 rebate that 

DMMs receive when they only meet the 

More Active Securities Quoting 

Requirement, but not the More Active 

Securities Quoted Size Ratio 

Requirement. At the same time, the 

Exchange believes the proposed rule 

change will encourage multiple sources 

of market liquidity (e.g. SLPs, Floor 

Brokers, and other market participants), 

which will help to promote a more 

robust, fair, and orderly market. The 

Exchange believes that removing 

outdated references to round and odd 

lots in the Price List will add clarity to 

the Price List. 

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) 12 of the Act and 

subparagraph (f)(2) of Rule 19b–4 13

thereunder, because it establishes a due, 

fee, or other charge imposed by the 

NYSE. 

At any time within 60 days of the 

filing of such proposed rule change, the 


tkelley on DSK3SPTVN1PROD with NOTICES
Federal Register / Vol. 77, No. 11 / Wednesday, January 18, 2012 / Notices 2587 

14 17 CFR 200.30–3(a)(12). 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4See Securities Exchange Act Release No. 62886 

(September 10, 2010), 75 FR 56613 (September 16, 

2010) (SR–NYSEAmex–2010–60). See also 

Securities Exchange Act Release Nos. 63480 

(December 9, 2010), 75 FR 78333 (December 15, 

2010) (SR–NYSEAmex–2010–116); 64233 (April 7, 

2011), 76 FR 20736 (April 13, 2011) (SR– 

NYSEAmex–2011–24); and 65066 (August 9, 2011), 

76 FR 50506 (August 15, 2011) (SR–NYSEAmex– 

2011–58). 

5Terms not defined herein are defined in NYSE 

Amex Equities Rule 128. 

6Separately, the Exchange has proposed 

extending the effective date of the trading pause 

pilot under NYSE Amex Equities Rule 80C, which 

requires to the Exchange to pause trading in an 

individual security listed on the Exchange if the 

price moves by a specified percentage as compared 

to prices of that security in the preceding fiveminute period during a trading day. See SR– 

NYSEAmex–2011–105. 

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 rulecomments@sec.gov. Please include File 

Number SR–NYSE–2011–70 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–NYSE–2011–70. 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 

publicly available. All submissions 

should refer to File Number SR–NYSE– 

2011–70 and should be submitted on or 

before February 8, 2012. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.14

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2012–778 Filed 1–17–12; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–66137; File No. SR– 

NYSEAmex–2011–106] 

Self-Regulatory Organizations; NYSE 

Amex LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Amending NYSE Amex 

Equities Rule 128, Which Governs 

Clearly Erroneous Executions, To 

Extend the Effective Date of The Pilot 

by Which Portions of Such Rule 

Operate Until July 31, 2012 

January 11, 2012. 

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

Securities Exchange Act of 1934 (the 

‘‘Act’’) 2 and Rule 19b–4 thereunder,3

notice is hereby given that on December 

28, 2011, 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 amend 

NYSE Amex Equities Rule 128, which 

governs clearly erroneous executions, to 

extend the effective date of the pilot by 

which portions of such Rule operate 

until July 31, 2012. The text of the 

proposed rule change is available at the 

Exchange, the Commission’s Public 

Reference Room, www.nyse.com, and 

www.sec.gov. 

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 the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to amend 

NYSE Amex Equities Rule 128, which 

governs clearly erroneous executions, to 

extend the effective date of the pilot by 

which portions of such Rule operate, 

until July 31, 2012. The pilot is 

currently scheduled to expire on 

January 31, 2012.4

On September 10, 2010, the 

Commission approved, on a pilot basis, 

market-wide amendments to exchanges’ 

rules for clearly erroneous executions to 

set forth clearer standards and curtail 

discretion with respect to breaking 

erroneous trades. In connection with 

this pilot initiative, the Exchange 

amended NYSE Amex Equities Rule 

128(c), (e)(2), (f), and (g). The 

amendments provide for uniform 

treatment of clearly erroneous execution 

reviews (1) in Multi-Stock Events 5

involving twenty or more securities, and 

(2) in the event transactions occur that 

result in the issuance of an individual 

security trading pause by the primary 

market and subsequent transactions that 

occur before the trading pause is in 

effect on the Exchange.6 The 

amendments also eliminated appeals of 

certain rulings made in conjunction 

with other exchanges with respect to 

clearly erroneous transactions and 

limited the Exchange’s discretion to 

deviate from Numerical Guidelines set 


tkelley on DSK3SPTVN1PROD with NOTICES