27848 Federal Register / Vol. 75, No. 95 / Tuesday, May 18, 2010 / Notices 

6 15 U.S.C. 78f. 

7 15 U.S.C. 78f(b)(4). 

8 15 U.S.C. 78s(b)(3)(A)(ii). 

9 17 CFR 240.19b–4(f)(2). 

10 17 CFR 200.30–3(a)(12). 

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

2 15 U.S.C. 78a et seq. 

3 17 CFR 240.19b–4. 

4See Email from John Carey, Chief Counsel, U.S. 

Equities, NYSE Euronext, to David Liu, Assistant 

Director, Nathan Saunders, Special Counsel, and 

Daniel Gien, Attorney, Division of Trading and 

Markets, Commission, dated May 6, 2010 (clarifying 

the language of note 6 below and making other 

minor technical changes to conform the description 

of the changes to the text of the proposed rule text). 

the Exchange than such market centers 

currently charge for removing liquidity 

(referred to by the Exchange as ‘‘One 

Under’’ pricing). Based on changes in 

pricing at NYSE, BATS is proposing a 

change to its price for BATS + NYSE 

Destination Specific Orders to align its 

fees so they are $0.0001 less per share 

for orders routed to NYSE. Specifically, 

the Exchange proposes to increase the 

fee charged for BATS + NYSE 

Destination Specific Orders executed at 

NYSE from $0.0017 to $0.0020 per 

share. This change will result in the 

Exchange charging $0.0001 less per 

share for orders routed to NYSE as 

Destination Specific Orders. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the requirements of the Act and the 

rules and regulations thereunder that 

are applicable to a national securities 

exchange, and, in particular, with the 

requirements of Section 6 of the Act.6

Specifically, the Exchange believes that 

the proposed rule change is consistent 

with Section 6(b)(4) of the Act,7 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. The Exchange 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 

Exchange believes that its fees and 

credits are competitive with those 

charged by other venues. Finally, the 

Exchange believes that the proposed 

rates are equitable in that they apply 

uniformly to all Members. 

(B) Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change imposes any 

burden on competition. 

(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. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing proposed rule change 

has been designated as a fee change 

pursuant to Section 19(b)(3)(A)(ii) of the 

Act 8 and Rule 19b–4(f)(2) thereunder,9

because it establishes or changes a due, 

fee or other charge imposed on members 

by the Exchange. Accordingly, the 

proposal is effective upon filing with 

the Commission. 

At any time within 60 days of the 

filing of the proposed rule change, the 

Commission may summarily abrogate 

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 proposal 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 e-mail to rulecomments@sec.gov. Please include File 

No. SR–BATS–2010–012 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–BATS–2010–012. This file number 

should be included on the subject line 

if e-mail 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 

will also 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–BATS– 

2010–012 and should be submitted on 

or before June 8, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2010–11807 Filed 5–17–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62082; File No. SR–NYSE– 

2010–34] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Amend the 

Exchange Price List 

May 11, 2010. 

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 April 30, 

2010, New York Stock Exchange LLC 

(the ‘‘NYSE’’ or the ‘‘Exchange’’) filed 

with the Securities and Exchange 

Commission (the ‘‘Commission’’) the 

proposed rule change as described in 

Items I, II and III below, which Items 

have been prepared by the Exchange.4

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 

certain of the fees and credits set forth 

in its 2010 Price List. The amended 

pricing will take effect on May 1, 2010. 

mstockstill on DSKH9S0YB1PROD with NOTICES

Federal Register / Vol. 75, No. 95 / Tuesday, May 18, 2010 / Notices 27849 

5Some superfluous language is also removed 

from this entry in the Price List and the same 

language is removed from the entry specifying the 

fee paid by DMMs when taking liquidity. 

6The Exchange currently has a three tier structure 

of rebates paid only to SLPs when the SLP provides 

liquidity to the NYSE and meets the requirements 

to benefit for the specific tier. The highest tier pays 

a credit of $0.0017 per share to SLPs when they add 

liquidity to the NYSE in securities with a per share 

price of $1.00 or more, and the SLP (i) meets the 

Quoting Requirement and (ii) adds liquidity of an 

ADV of more than 250 million shares in the 

applicable month. The second-highest tier pays a 

credit of $0.0016 per share to SLPs and applies to 

SLPs when they add liquidity to the NYSE in 

securities with a per share price of $1.00 or more, 

and the SLP (i) meets the Quoting Requirement and 

(ii) adds liquidity of an ADV of more than 100 

million shares in the applicable month. The thirdhighest tier pays a credit of $0.0015 per share to 

SLPs and applies to SLPs when they add liquidity 

to the NYSE in securities with a per share price of 

$1.00 or more, and the SLP (i) meets the Quoting 

Requirement and (ii) adds liquidity of an ADV of 

more than 10 million shares in the applicable 

month. SLPs adding liquidity in securities with a 

per share price of $1.00 or more, if the SLP does 

not qualify for any of the foregoing rebates, receive 

the same rebates as other market participants. 

7 15 U.S.C. 78f. 

8 15 U.S.C. 78f(b)(4). 

The text of the proposed rule change is 

available on the Exchange’s Web site 

(http://www.nyse.com), on the 

Commission’s Web site at http:// 

www.sec.gov, at the Exchange’s Office of 

the Secretary, 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 these statements may be examined at 

the places specified in Item IV below. 

The NYSE 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 

The Exchange proposes to make the 

following changes to its 2010 Price List 

with effect from May 1, 2010: 

• The rebate paid for executions in 

which the customer adds liquidity to 

the Exchange will increase from $0.0010 

to $0.0013 per share. 

• The rebate paid for executions of 

orders sent to the floor broker for 

representation on the NYSE when 

adding liquidity to the Exchange will 

increase from $0.0012 to $0.0015 per 

share. 

• The equity per share charge when 

taking liquidity from the Exchange will 

increase from $0.0018 to $0.0021 per 

share. 

• The equity per share charge 

(charged to both sides) for all odd lot 

transactions (including odd lot portions 

of partial round lots) will increase from 

$0.0018 to $0.0021 per share. A parallel 

change will be made to the odd lot 

transaction charges for securities with a 

per share trading price less than $1.00, 

which will now be subject to a fee equal 

to the lesser of (i) 0.3% of the 

transaction value or (ii) $0.0021 per 

share. 

• Currently, the Exchange charges 

$0.0006 per share for all market at-theclose (‘‘MOC’’) and limit at-the-close 

(‘‘LOC’’) orders for all executions of 

orders from any member organization 

executing an average daily trading 

volume (‘‘ADV’’) on the NYSE in that 

month of at least 130 million shares, 

including (i) adding liquidity in an ADV 

of at least 30 million shares and (ii) an 

ADV of at least 15 million shares total 

in MOC and LOC orders. The Exchange 

is eliminating this separate pricing tier 

and will now charge $0.0007 per share 

for all MOC and LOC transactions, 

which is the price currently charged for 

all such transactions that do not qualify 

for the $0.0006 per share tier described 

in the previous sentence. A parallel 

change will be made to the transaction 

charges for MOC and LOC orders in 

securities with a per share stock price 

less than $1.00. All such transactions 

will now be subject to a fee equal to the 

lesser of (i) 0.3% of the transaction 

value or (ii) $0.0007 per share. 

• Currently, the Exchange charges 

$0.0017 per share for executions of 

orders from any member organization 

executing an average daily trading 

volume (‘‘ADV’’) on the NYSE in that 

month of at least 130 million shares, 

including (i) adding liquidity in an ADV 

of at least 30 million shares and (ii) an 

ADV of at least 15 million shares total 

in MOC and LOC orders. The Exchange 

is eliminating this separate pricing tier 

and will now charge the regular 

transaction fee for these transactions 

that applies to executions taking 

liquidity from the Exchange. Therefore, 

all transactions taking liquidity from the 

NYSE in securities with a per share 

stock price of $1.00 or more will be 

subject to a fee of $0.0021 per share and 

all such transactions in securities with 

a per share stock price less than $1.00 

will be subject to a fee equal to the 

lesser of (i) 0.3% of the transaction 

value or (ii) $0.0021 per share.5

• The equity per share charge for 

designated market makers (‘‘DMMs’’) for 

transactions taking liquidity from the 

NYSE will be increased from $0.0010 

per share to $0.0013 per share. 

• The Exchange is modifying its 

schedule of liquidity rebates for 

supplemental liquidity providers 

(‘‘SLPs’’).6 SLPs will receive a credit of 

$0.0020 per share when they add 

liquidity to the NYSE in securities with 

a per share price of $1.00 or more, and 

the SLP (i) meets the 3% average or 

more quoting requirement in an 

assigned security pursuant to Rule 107B 

(the ‘‘Quoting Requirement’’) and (ii) 

adds liquidity of an ADV of more than 

10 million shares in the applicable 

month. For all other transactions adding 

liquidity to the NYSE, SLPs will receive 

a rebate of $0.0013 per share. 

• SLPs currently receive a rebate of 

$0.0005 per share for executions of 

securities with a per share price of $1.00 

or more at the close. This rebate will no 

longer be paid, although these 

transactions will continue to be free of 

charge. 

• The Exchange is instituting a new 

$0.0001 per share fee for executions in 

Crossing Session II. This fee will be 

subject to a $50,000 per month cap per 

member organization. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the objectives of Section 6 7 of the Act 

in general and furthers the objectives of 

Section 6(b)(4)8 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 dues, fees and other 

charges, as all similarly situated 

member organizations will be charged 

the same schedule of fees and be 

entitled to receive the same rebates. 

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 purpose of the Act. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants or Others 

Written comments were neither 

solicited nor received. 

mstockstill on DSKH9S0YB1PROD with NOTICES

27850 Federal Register / Vol. 75, No. 95 / Tuesday, May 18, 2010 / Notices 

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. 

3Under the UMA algorithm, public customer 

orders in the electronic book have first priority to 

trade against incoming electronic orders, then the 

Market-Maker participation entitlement has second 

priority. Thereafter, any remaining balance of the 

incoming order, if any, is allocated among other 

market participants based on a weighting of the 

number of market participants quoting at the best 

bid or offer (Component A) and the percentage that 

the size of each market participant’s quote is at the 

best bid or offer relative to the total number of 

contracts at the disseminated quote (Component B). 

See Rules 6.45A(a)(i)(B)(2) and 6.45B(a)(ii)(B)(2) for 

a more detailed description of UMA. 

4Under the original participation entitlement, the 

Exchange may determine to grant Market-Makers 

participation entitlements pursuant to the 

provisions of Rules 8.87, Participation Entitlement 

of DPMs and e-DPMs, 8.13, Preferred Market-Maker 

Program, or 8.15B, Participation Entitlement of 

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 Rule 19b– 

4(f)(2) 10 thereunder. At any time within 

60 days of the filing of the proposed rule 

change, the Commission may summarily 

abrogate 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, as amended, 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 e-mail to rule-comments@ 

Please include File Number SR–NYSE– 

2010–34 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–2010–34. This file 

number should be included on the 

subject line if e-mail 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 number SR–NYSE– 

2010–34 and should be submitted on or 

before June 8, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2010–11809 Filed 5–17–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62083; File No. SR–CBOE– 

2010–038] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Notice of Filing of a 

Proposed Rule Change, as Modified by 

Amendment No. 1 Thereto, Related to 

the Hybrid Matching Algorithms 

May 12, 2010. 

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

Securities Exchange Act of 1934 (the 

‘‘Act’’),1 and Rule 19b–4 thereunder,2

notice is hereby given that April 22, 

2010, the Chicago Board Options 

Exchange, Incorporated (the ‘‘Exchange’’ 

or ‘‘CBOE’’) filed with the Securities and 

Exchange Commission (the 

‘‘Commission’’) the proposed rule 

change as described in Items I, II, and 

III below, which Items have been 

prepared by the Exchange. On May 6, 

2010, CBOE filed Amendment No. 1 to 

the proposed rule change. The 

Commission is publishing this notice, as 

amended, 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 

Rules 6.45A, Priority and Allocation of 

Equity Option Trades on the CBOE 

Hybrid System, and 6.45B, Priority and 

Allocation of Trades in Index Options 

and Options on ETFs on the CBOE 

Hybrid System, to revise its market 

turner and modified participation 

entitlement priority overlays. The text of 

the proposed rule change is available on 

the Exchange’s Web site (http://www.

cboe.org/Legal), at the Office of the 

Secretary, CBOE and at the Commission. 

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 

Background 

CBOE Rules 6.45A and 6.45B set 

forth, among other things, the manner in 

which incoming electronic orders in 

options are allocated on the Hybrid 

System. Paragraph (a) of each rule 

currently provides a ‘‘menu’’ of 

allocation algorithms to choose from 

when executing incoming electronic 

orders. The menu format allows the 

Exchange to utilize different allocation 

algorithms on a class-by-class basis. The 

menu includes, among other choices, 

the Ultimate Matching Algorithm 

(‘‘UMA’’),3 and price-time and pro-rata 

priority allocation algorithms. 

Additional priority overlays can be 

applied to the base allocation 

algorithms. The price-time and pro-rata 

priority overlays currently include: 

public customer priority for public 

customer orders resting on the Hybrid 

System, participation entitlements for 

certain qualifying market-makers 4 (the 

mstockstill on DSKH9S0YB1PROD with NOTICES