Federal Register / Vol. 77, No. 11 / Wednesday, January 18, 2012 / Notices 2583 

9See fee schedules of Nasdaq and NYSE Arca 

found at: http://www.nasdaqtrader.com/ 

Trader.aspx?id=PriceListTrading2; and https:// 

usequities.nyx.com/sites/usequities.nyx.com/files/ 

nyse_arca_marketplace_fees_12_1_2011.pdf 

10 15 U.S.C. 78s(b)(3)(A). 

11 17 CFR 19b–4(f)(2). 12 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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

4 17 CFR 240.19b–4(f)(2). 

that it applies uniformly to all Members 

and would more accurately represent 

their trading volume. In addition, the 

proposed amendment is in accordance 

with the practices employed by other 

Exchanges.9

The Exchange also notes that it 

operates in a highly competitive market 

in which market participants can 

readily direct order flow to competing 

venues if they deem fee levels at a 

particular venue to be excessive. The 

proposed rule change reflects a 

competitive pricing structure designed 

to incent market participants to direct 

their order flow to the Exchange. The 

Exchange believes that the proposed 

rates are equitable and nondiscriminatory in that they apply 

uniformly to all Members. The 

Exchange believes the fees and credits 

remain competitive with those charged 

by other venues and therefore continue 

to be reasonable and equitably allocated 

to Members. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The proposed rule change does not 

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 

The Exchange has not solicited, and 

does not intend to solicit, comments on 

this proposed rule change. The 

Exchange has not received any 

unsolicited written comments from 

members or other interested parties. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing rule change has become 

effective pursuant to Section 19(b)(3) of 

the Act 10 and Rule 19b–4(f)(2) 11

thereunder. 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 rulecomments@sec.gov. Please include File 

Number SR–EDGA–2011–42 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–EDGA–2011–42. 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–EDGA–2011–42 and should 

be submittedon or before February 8, 

2012. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2012–770 Filed 1–17–12; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–66139; File No. SR–CHX– 

2012–01] 

Self-Regulatory Organizations; 

Chicago Stock Exchange, Inc.; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change To Amend 

its Fee Schedule To Assess Fees for 

Derivative Securities Products 

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 January 6, 

2012, the Chicago Stock Exchange, Inc. 

(‘‘CHX’’ or the ‘‘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 CHX. CHX 

has filed the proposal pursuant to 

Section 19(b)(3)(A) of the Act 3 and Rule 

19b–4(f)(2) thereunder,4 which renders 

the proposal effective upon filing with 

the Commission. 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 

CHX proposes to amend its Fee 

Schedule, effective January 9, 2012, to 

create a separate fee and rebate structure 

for Derivative Securities Products and to 

remove certain references to Tape A, B 

and C securities throughout the Fee 

Schedule. 

The text of this proposed rule change 

is available on the Exchange’s Web site 

at (www.chx.com) and in 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 

CHX included statements concerning 

the purpose of and basis for the 


tkelley on DSK3SPTVN1PROD with NOTICES
2584 Federal Register / Vol. 77, No. 11 / Wednesday, January 18, 2012 / Notices 

5 ‘‘Derivative Securities Product’’ is defined under 

Rule 19b–4(e) as any type of option, warrant, hybrid 

securities product or any other security, other than 

a single equity option or a security futures product, 

whose value is based, in whole or in part, upon the 

performance of, or interest in, an underlying 

instrument. See, 17 CFR 240.19b–4(e). 

6Tape A securities are those equity securities for 

which the New York Stock Exchange, Inc. is the 

primary listing market. Tape C securities are those 

issues for which the Nasdaq Stock Exchange, Inc. 

is the primary listing center. Tape B securities are 

those issues for which some other national 

securities exchange is the primary listing market. 

7Among other things, the Exchange proposes to 

correct a typographical error in its Fee Schedule to 

clarify that the provide credit paid pursuant to 

Section E.1. for issues priced $1/share or more is 

$.00022 per share. 

8Currently, the same amount is paid to the 

Institutional Broker for transactions in Tape B 

securities. 

9 17 CFR 240.19b–4(e). 

10The Exchange also proposes to replace the 

references to the term ‘‘issue’’ in Section I (Listing 

Fees) to the different types of securities ‘‘listed on 

the Exchange’’ in order to be consistent. 

11The Exchange also proposes to delete the 

reference to the effective date of the Cancellation 

Fees, since that date is now a number of months 

in the past. 

12 15 U.S.C. 78f. 

13 15 U.S.C. 78f(b)(4). 

proposed rule changes and discussed 

any comments it received regarding the 

proposal. The text of these statements 

may be examined at the places specified 

in Item IV below. The CHX 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 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

Through this filing, the Exchange 

proposes to amend its Schedule of Fees 

and Assessments (the ‘‘Fee Schedule’’), 

effective January 9, 2012, to create a 

separate fee and rebate structure for 

Derivative Securities Products 5 and to 

remove references to Tape A, B and C 

securities throughout our Fee Schedule. 

Pursuant to this proposal, the 

Exchange would eliminate the 

distinction in the fee and rebate 

structure for Tape A, B and C securities 

and replace it with a structure based on 

Derivative Securities Products.6

Currently, the Exchange offers a provide 

credit of $0.0022/share under Section 

E.1. of the Fee Schedule only for 

transactions in Tape B securities.7

Many, but not all, Tape B securities are 

Derivative Securities Products and some 

Tape A and C securities are Derivative 

Securities Products. For securities 

priced $1/share or more and which are 

executed in the Regular Trading 

Session, the Exchange seeks to eliminate 

the payment of provide credits pursuant 

to Section E.1. of the Fee Schedule for 

all non-Derivative Securities Products 

priced $1/share or more and 

simultaneously extend the provide 

credit to transactions in Derivative 

Securities Products priced $1/share or 

more. Thus, some Tape B securities 

which are not Derivative Securities 

Products would no longer be eligible for 

a provide credit in the Regular Trading 

Session and certain Derivative 

Securities Products which are Tape A 

and C securities would be eligible for a 

provide credit. As a category, Derivative 

Securities Products are heavily traded in 

the National Market System. By this 

proposal, the Exchange seeks to pay a 

provide credit for transactions in such 

securities in order to incent additional 

order flow in these issues to the 

Exchange. 

Pursuant to the Exchange’s proposed 

new fee and rebate structure, 

Participants would be charged a fee of 

$0.003/share to take liquidity and given 

a rebate of $0.0022/share for providing 

liquidity in the Regular Trading Session 

for securities priced $1.00/share or more 

which are Derivative Securities 

Products. For transactions in nonDerivative Securities Products priced 

$1/share or more which were executed 

in the Regular Trading Session, the 

Exchange proposes to charge a fee of 

$0.003/share to take liquidity while 

giving no rebate for providing liquidity. 

A liquidity removal fee of $0.003/share 

and a provide credit of $0.0022/share 

would be assessed for transactions in 

securities priced $1/share or more in the 

Exchange’s Early and Late Trading 

Sessions. Participants would be 

assessed a liquidity removal fee of 

0.30% of trade value and given a 

provide credit of $0.00009/share in all 

issues priced less than $1/share in all 

trading sessions. 

The Exchange proposes similar 

changes to the fee and rebate structure 

for single-sided orders executed in the 

Matching System which were submitted 

through an Exchange-registered 

Institutional Broker. These changes in 

essence substitute the term ‘‘Derivatives 

Securities Products’’ for ‘‘Tape B 

securities’’ within the applicable section 

of the Exchange’s Fee Schedule (Section 

E.1.). Thus, a provide credit of $0.0022/ 

share in transactions involving 

Derivatives Securities products 

executed in the Regular Trading Session 

would be paid to the Institutional 

Broker representing the Participant 

which originated the order.8 The 

Exchange proposes to replace references 

to ‘‘Tape A, B and C’’ securities with an 

all-inclusive reference to ‘‘any’’ or ‘‘all’’ 

securities in the text governing the 

provide credit paid to Institutional 

Brokers for transactions in the Early and 

Late Trading Sessions and in securities 

priced under $1/share in any trading 

session. 

The Exchange proposes to add the 

definition of a Derivative Securities 

Product, taken from Rule 19b–4(e) of the 

Exchange Act, to the Fee Schedule for 

purposes of clarity.9 The Exchange also 

proposes to replace all references in 

Section E. of the Fee Schedule to the 

term ‘‘issue’’ with that to [sic] 

‘‘securities,’’ which is a more accurate 

and well-defined term.10 The Exchange 

proposes to remove all other references 

in various sections of the Fee Schedule 

to Tape A, B and C securities, since 

those categories would no longer be 

relevant in assessing fees to CHX 

Participants. Finally, the Exchange 

proposes to replace the references to 

Exchange Traded Funds (‘‘ETFs’’), 

Exchange Traded Notes (‘‘ETNs’’) or 

Exchange Traded Vehicles (‘‘ETVs’’) in 

Section E.8. (Order Cancellation Fee 

(Regular Trading Session only)) with a 

reference to Derivative Securities 

Products.11 The Exchange believes that 

these references are functionally 

equivalent as applied to trading on the 

Exchange and use of a common term 

throughout the Fee Schedule should 

provide additional clarity to Exchange 

Participants. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b) of the Act 12 in general, and 

furthers the objectives of Section 6(b)(4) 

of the Act 13 in particular, in that it 

provides for the equitable allocation of 

reasonable dues, fees and other charges 

among members and other persons 

using any facility or system which the 

Exchange operates or controls. Because 

the proposed structure will apply to all 

single sided orders executed in the CHX 

Matching System, with the limited 

exception of take fees for Institutional 

Brokers, which have their own, 

previously approved, fee structure, the 

Exchange believes the proposed fee and 

rebate structure will equitably allocate 

the same reasonable rebate rates among 

Participants in a non-discriminatory 

nature. Furthermore, because quoting 

and trading activity is different among 

certain categories of securities, such as 

Derivative Securities Products, the 

Exchange believes that it is fair and 

reasonable to create different fee and 

rebate structures for Derivative 

Securities Products and all other 

securities in order to better incent 

activity by Participants on the 


tkelley on DSK3SPTVN1PROD with NOTICES
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