[Federal Register Volume 78, Number 7 (Thursday, January 10, 2013)]
[Notices]
[Pages 2306-2308]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-00310]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-68579; File No. SR-NYSE-2012-78]


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

January 4, 2013.
    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 21, 2012, New York Stock Exchange LLC (the 
``Exchange'' or ``NYSE'') 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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.

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[[Page 2307]]

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

    The Exchange proposes to eliminate certain credits within its Price 
List, which the Exchange proposes to become operative on January 1, 
2013. The text of the proposed rule change is available on the 
Exchange's Web site at www.nyse.com, at the principal office of the 
Exchange, and at 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 self-regulatory organization 
included statements concerning the purpose of, and basis for, the 
proposed rule change and discussed any comments it received on the 
proposed rule change. The text of those statements may be examined at 
the places specified in Item IV below. The Exchange has prepared 
summaries, set forth in sections A, B, and C below, of the most 
significant parts of such statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to eliminate certain credits within its Price 
List, which the Exchange proposes to become operative on January 1, 
2013.
    Currently, the Exchange provides a credit per share of $0.0002 for 
member organizations, floor brokers, Designated Market Makers 
(``DMMs''), and Supplemental Liquidity Providers (``SLPs'') that 
provide displayed liquidity to the Exchange in the following ten active 
securities (``Active Securities''): \3\
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    \3\ See Securities Exchange Act Release No. 68021 (October 9, 
2012), 77 FR 63406 (October 16, 2012) (SR-NYSE-2012-50).

------------------------------------------------------------------------
                Company name                            Symbol
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Bank of America Corp.......................  BAC
Citigroup Inc..............................  C
Ford Motor Company.........................  F
General Electric...........................  GE
JPMorgan Chase & Co........................  JPM
Nokia Corporation..........................  NOK
PFIZER Inc.................................  PFE
Sprint Nextel Corporation..................  S
AT&T Inc...................................  T
Wells Fargo & Co...........................  WFC
------------------------------------------------------------------------

    The credit applies to transactions in the Active Securities and is 
in addition to any other credit for floor and non-floor 
transactions.\4\
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    \4\ The credit does not apply to transactions in the Active 
Securities in the Retail Liquidity Program.
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    The Exchange proposes to eliminate this credit for member 
organizations, floor brokers, DMMs, and SLPs from the Fee Schedule 
because the incremental credit has not resulted in significant 
additional liquidity in the Active Securities.
    The proposed changes are not otherwise intended to address any 
other problem, and the Exchange is not aware of any significant problem 
that the affected market participants would have in complying with the 
proposed changes.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act,\5\ in general, and furthers the 
objectives of Section 6(b)(4) of the Act,\6\ in particular, because it 
provides for the equitable allocation of reasonable dues, fees, and 
other charges among its members and issuers and other persons using its 
facilities and does not unfairly discriminate between customers, 
issuers, brokers, or dealers. The Exchange also believes that the 
proposed rule change is consistent with Section 6(b)(5) of the Act,\7\ 
in particular, because it is designed to prevent fraudulent and 
manipulative acts and practices, to promote just and equitable 
principles of trade, to foster cooperation and coordination with 
persons engaged in regulating, clearing, settling, processing 
information with respect to, and facilitating transactions in 
securities, to remove impediments to, and perfect the mechanisms of, a 
free and open market and a national market system and, in general, to 
protect investors and the public interest and because it is not 
designed to permit unfair discrimination between customers, issuers, 
brokers, or dealers.
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    \5\ 15 U.S.C. 78f(b).
    \6\ 15 U.S.C. 78f(b)(4).
    \7\ 15 U.S.C. 78f(b)(5).
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    The Exchange believes that eliminating the credit for transactions 
in Active Securities for member organizations, floor brokers, DMMs, and 
SLPs is reasonable because it did not encourage sufficient additional 
liquidity and competition in the Active Securities on the Exchange. As 
such, the Exchange believes it is reasonable not to provide an 
additional credit for transactions in the Active Securities. The 
Exchange believes that eliminating the credit for transactions in 
Active Securities is equitable and not unfairly discriminatory because 
all similarly situated member organizations, floor brokers, DMMs, and 
SLPs would be subject to the same fee structure. In addition, the 
Exchange believes that eliminating the credit is equitable and not 
unfairly discriminatory because it did not generate enough additional 
volumes of liquidity in Active Securities to warrant the additional 
credit.
    The Exchange believes that the proposed change is designed to 
provide appropriate incentives for all market participants, thereby 
removing impediments to and perfecting the mechanism of a free and open 
market system. In addition, for the reasons stated above, the proposed 
changes are not designed to permit unfair discrimination between 
customers, issuers, brokers, or dealers.

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 because the additional credit 
for executions in Active Securities did not contribute to a meaningful 
change in market share across NYSE-listed stocks, and therefore, the 
Exchange expects that eliminating the credit will similarly have little 
impact on the Exchange or in other securities markets. As stated above, 
the Exchange believes that the proposed change would impact all 
similarly situated market participants equally, and as such, the 
proposed change would not impose a disparate burden on competition 
either among or between classes of market participants. In addition, 
the Exchange notes that it operates in a highly competitive market in 
which market participants can readily favor competing venues. In such 
an environment, the Exchange must continually review, and consider 
adjusting, its fees and credits to remain competitive with other 
exchanges. For the reasons described above, the Exchange believes that 
the proposed rule change promotes a competitive environment.

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

[[Page 2308]]

19(b)(3)(A) \8\ of the Act and subparagraph (f)(2) of Rule 19b-4 \9\ 
thereunder, because it establishes a due, fee, or other charge imposed 
by NYSE.
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    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 17 CFR 240.19b-4(f)(2).
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    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

    <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#0371766f662e606c6e6e666d7770437066602d646c75"><span class="__cf_email__" data-cfemail="097b7c656c246a6664646c677d7a497a6c6a276e667f">[email protected]</span></a>. Please include 
File Number SR-NYSE-2012-78 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 Number SR-NYSE-2012-78. 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 
10:00 a.m. and 3:00 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-NYSE-2012-78 and should be 
submitted on or before January 31, 2013.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-00310 Filed 1-9-13; 8:45 am]
BILLING CODE 8011-01-P


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