54686 Federal Register / Vol. 75, No. 173 / Wednesday, September 8, 2010 / Notices 

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

9 17 CFR 240.19b–4(f)(6). 

10 17 CFR 200.30–3(a)(12); 17 CFR 200.30– 

3(a)(44). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 58877 

(October 29, 2008), 73 FR 65904 (November 5, 2008) 

(SR–NYSE–2008–108) (establishing the SLP Pilot). 

See also Securities Exchange Act Release No. 59869 

(May 6, 2009), 74 FR 22796 (May 14, 2009) (SR– 

NYSE–2009–46) (extending the operation of the 

SLP Pilot to October 1, 2009). See also Securities 

Exchange Act Release No. 60756 (October 1, 2009), 

74 FR 51628 (October 7, 2009) (SR–NYSE–2009– 

100) (extending the operation of the New Market 

Model and the SLP Pilots to November 30, 2009). 

See also Securities Exchange Act Release No. 61075 

(November 30, 2009), 74 FR 64112 (December 7, 

2009) (SR–NYSE–2009–119) (extending the 

operation of the SLP Pilot to March 30, 2010). See 

also Securities Exchange Act Release No. 61840 

(April 5, 2010), 75 FR 18563 (April 12, 2010) (SR– 

NYSE–2010–28) (extending the operation of the 

SLP Pilot to September 30, 2010). 

4The information contained herein is a summary 

of the NMM Pilot and the SLP Pilot, for a fuller 

description of those pilots see supra notes 1 [sic] 

and 2 [sic]. 

days from the date on which it was 

filed, or such shorter time as the 

Commission may designate, it has 

become effective pursuant to Section 

19(b)(3)(A) 8 of the Act and Rule 19b– 

4(f)(6) 9 thereunder. The Exchange 

provided the Commission with written 

notice of its intent to file the proposed 

rule change, along with a brief 

description and text of the proposed 

rule change, at least five business days 

prior to the date of filing the proposed 

rule change. 

At any time within the 60-day period 

beginning on the date 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. 

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

Number SR–ISE–2010–92 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–ISE–2010–92. 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 website viewing and 

printing in the Commission’s Public 

Reference Room, 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–ISE–2010–92 and should be 

submitted on or before September 29, 

2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–22295 Filed 9–7–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62813; File No. SR–NYSE– 

2010–62] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change Extending the 

Operation of NYSE’s Supplemental 

Liquidity Providers Pilot 

September 1, 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 on August 

27, 2010, New York Stock Exchange 

LLC (‘‘NYSE’’ or the ‘‘Exchange’’) 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 extend the 

operation of its Supplemental Liquidity 

Providers Pilot (‘‘SLP Pilot’’ or ‘‘Pilot’’) 

(see Rule 107B), currently scheduled to 

expire on September 30, 2010, until the 

earlier of the Securities and Exchange 

Commission’s (‘‘SEC’’ or ‘‘Commission’’) 

approval to make such pilot permanent 

or January 31, 2011. The text of the 

proposed rule change is available on the 

Exchange’s Web site at http:// 

www.nyse.com, at the Exchange’s 

principal office, at the Commission’s 

Public Reference Room, and on the 

Commission’s Web site at http:// 

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 extend the 

operation of its Supplemental Liquidity 

Providers Pilot,3 currently scheduled to 

expire on September 30, 2010, until the 

earlier of Commission approval to make 

such pilot permanent or January 31, 

2011. 

Background 4

In October 2008, the NYSE 

implemented significant changes to its 

market rules, execution technology and 

the rights and obligations of its market 


jlentini on DSKJ8SOYB1PROD with NOTICES
Federal Register / Vol. 75, No. 173 / Wednesday, September 8, 2010 / Notices 54687 

5See Securities Exchange Act Release No. 58845 

(October 24, 2008) 73 FR 64379 (October 29, 2008) 

(SR–NYSE–2008–46). 

6See NYSE Rule 103. 

7See NYSE Rule 107B. 

8The NMM Pilot was scheduled to expire on 

September 30, 2010. On August 26, 2010 the 

Exchange filed to extend the NMM Pilot until 

January 31, 2011 (See SR–NYSE–2010–61) 

(extending the operation of the New Market Model 

Pilot to January 31, 2011); See also Securities 

Exchange Act Release No. 61724 (March 17, 2010), 

75 FR 14221 (SR–NYSE–2010–25) (extending the 

operation of the New Market Model Pilot to 

September 30, 2010). See also Securities Exchange 

Act Release No. 61031 (November 19, 2009), 74 FR 

62368 (SR–NYSE–2009–113) (extending the 

operation of the New Market Model Pilot to March 

30, 2010). 

9The NYSE Amex SLP Pilot (NYSE Amex 

Equities Rule 107B) is also being extended until 

January 31, 2011 or until the Commission approves 

it as permanent (See SR–NYSEAmex–2010–88). 

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

11 17 CFR 240.19b–4(f)(6). 

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

13 17 CFR 240.19b–4(f)(6)(iii). In addition, Rule 

19b–4(f)(6)(iii) requires the Exchange to give the 

Commission written notice of the Exchange’s intent 

to file the proposed rule change along with a brief 

description and the text of the proposed rule 

change, at least five business days prior to the date 

of filing of the proposed rule change, or such 

shorter time as designated by the Commission. The 

Exchange has satisfied this requirement. 

participants all of which were designed 

to improve execution quality on the 

Exchange. These changes are all 

elements of the Exchange’s enhanced 

market model referred to as the ‘‘New 

Market Model’’ (‘‘NMM Pilot’’).5 The SLP 

Pilot was launched in coordination with 

the NMM Pilot (see Rule 107B). 

As part of the NMM Pilot, NYSE 

eliminated the function of specialists on 

the Exchange creating a new category of 

market participant, the Designated 

Market Maker or DMM.6 Separately, the 

NYSE established the SLP Pilot, which 

established SLPs as a new class of 

market participants to supplement the 

liquidity provided by DMMs.7

The SLP Pilot is scheduled to end 

operation on September 30, 2010 or 

such earlier time as the Commission 

may determine to make the rules 

permanent. The Exchange is currently 

preparing a rule filing seeking 

permission to make the SLP Pilot 

permanent, but does not expect that 

filing to be completed and approved by 

the Commission before September 30, 

2010.8

Proposal To Extend the Operation of the 

SLP Pilot 

The NYSE established the SLP Pilot to 

provide incentives for quoting, to 

enhance competition among the existing 

group of liquidity providers, including 

the DMMs, and add new competitive 

market participants. The Exchange 

believes that the SLP Pilot, in 

coordination with the NMM Pilot, 

allows the Exchange to provide its 

market participants with a trading 

venue that utilizes an enhanced market 

structure to encourage the addition of 

liquidity, facilitate the trading of larger 

orders more efficiently and operates to 

reward aggressive liquidity providers. 

As such, the Exchange believes that the 

rules governing the SLP Pilot (Rule 

107B) should be made permanent. 

Through this filing the Exchange seeks 

to extend the current operation of the 

SLP Pilot until January 31, 2011, in 

order to allow the Exchange to formally 

submit a filing to the Commission to 

convert the pilot rule to a permanent 

rule.9

2. Statutory Basis 

The basis under the Securities 

Exchange Act of 1934 (the ‘‘Act’’) for this 

proposed rule change is the requirement 

under Section 6(b)(5) that an exchange 

have rules that are designed to promote 

just and equitable principles of trade, to 

remove impediments to and perfect the 

mechanism of a free and open market 

and a national market system and, in 

general, to protect investors and the 

public interest. The Exchange believes 

that the instant filing is consistent with 

these principles because the SLP Pilot 

provides its market participants with a 

trading venue that utilizes an enhanced 

market structure to encourage the 

addition of liquidity and operates to 

reward aggressive liquidity providers. 

Moreover, the instant filing requesting 

an extension of the SLP Pilot will 

permit adequate time for: (i) The 

Exchange to prepare and submit a filing 

to make the rules governing the SLP 

Pilot permanent; (ii) public notice and 

comment; and (iii) completion of the 

19b–4 approval process. 

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 Exchange has filed the proposed 

rule change pursuant to Section 

19(b)(3)(A)(iii) of the Act 10 and Rule 

19b–4(f)(6) thereunder.11 Because the 

proposed rule change does not: (i) 

Significantly affect the protection of 

investors or the public interest; (ii) 

impose any significant burden on 

competition; and (iii) become operative 

prior to 30 days from the date on which 

it was filed, or such shorter time as the 

Commission may designate if consistent 

with the protection of investors and the 

public interest, the proposed rule 

change has become effective pursuant to 

Section 19(b)(3)(A) of the Act 12 and 

Rule 19b–4(f)(6)(iii) thereunder.13

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. 

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

Number SR–NYSE–2010–62 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–2010–62. 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 


jlentini on DSKJ8SOYB1PROD with NOTICES
54688 Federal Register / Vol. 75, No. 173 / Wednesday, September 8, 2010 / Notices 

14 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)(ii). 

4 17 CFR 240.19b–4(f)(2). 

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

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

7 15 U.S.C. 78s(b)(3)(A)(ii). 

8 17 CFR 240.19b–4(f)(2). 

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–NYSE– 

2010–62 and should be submitted on or 

before September 29, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.14

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–22291 Filed 9–7–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62804; File No. SR–BX– 

2010–060] 

Self-Regulatory Organizations; 

NASDAQ OMX BX, Inc.; Notice of Filing 

and Immediate Effectiveness of 

Proposed Rule Change Relating to the 

Options Regulatory Fee 

August 31, 2010. 

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 August 

27, 2010, NASDAQ OMX BX, Inc. (the 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I and II 

below, which Items have been prepared 

by the self-regulatory organization. The 

Exchange filed the proposed rule change 

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

from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to amend the 

Fee Schedule of the Boston Options 

Exchange Group, LLC (‘‘BOX’’), effective 

September 1, 2010, to assess the Options 

Regulatory Fee to each BOX Market 

Maker or Order Flow Provider that is 

fully certified to transact business on 

the Exchange. The text of the proposed 

rule change is available from the 

principal office of the Exchange, at the 

Commission’s Public Reference Room, 

on the Exchange’s Internet Web site at 

http://nasdaqomxbx.cchwallstreet.com/ 

NASDAQOMXBX/Filings/, and on the 

Commission’s Web site at http:// 

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 these statements may be examined at 

the places specified in Item IV below. 

The self-regulatory organization 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 purpose of the proposed rule 

change is to revise the circumstances 

under which the Exchange will assess 

the Options Regulatory Fee. In 

particular, the Exchange will assess the 

Options Regulatory Fee to BOX Options 

Participants that (i) are registered with 

the Exchange pursuant to Chapter II of 

the Rules of BOX; and (ii) have satisfied 

the technological requirements to be a 

fully certified BOX Market Maker or 

Order Flow Provider. Market Makers 

and Order Flow Providers are not 

capable of transacting business on the 

Exchange until the firm has been 

technologically certified by BOX (‘‘fully 

certified’’). In certain instances, 

particularly at the outset of becoming a 

Participant, a Market Maker or an Order 

Flow Provider may be registered with 

the Exchange prior to obtaining the 

requisite technological certification. 

BOX believes that it is not equitable to 

assess the Options Regulatory Fee on a 

Market Maker or Order Flow Provider 

that, prior to initially satisfying certain 

technology requirements, is not capable 

of availing itself of the benefits of its 

status as a BOX Participant. BOX does 

not desire to assess the Options 

Regulatory Fee to such Market Makers 

and Order Flow Providers until they are 

fully certified to transact business on 

the Exchange. The proposed change will 

have no effect on the assessment of fees 

for current BOX Market Makers and 

Order Flow Providers that are fully 

certified to transact business on the 

Exchange and will have no effect on 

Participants that are only clearing 

transactions for other BOX Participants. 

2. Statutory Basis 

The Exchange believes that the 

proposal is consistent with the 

requirements of Section 6(b) of the Act,5

in general, and Section 6(b)(5) [sic] of 

the Act,6 in particular, in that it 

provides [sic] the equitable allocation of 

reasonable dues, fees, and other charges 

among its members and issuers and 

other persons using its facilities. The 

proposed changes provide that newly 

registered Market Makers and Order 

Flow Providers will be assessed the 

Options Regulatory Fee once fully 

certified and will not alter the 

assessment of the Options Regulatory 

Fee on current BOX Market Makers and 

Order Flow Providers that are fully 

certified to transact business on the 

Exchange and on Participants that are 

only clearing transactions for other BOX 

Participants. 

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 

The Exchange has neither solicited 

nor received comments on the proposed 

rule change. 

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)(A)(ii) of the Exchange Act 7 and 

Rule 19b–4(f)(2)8 thereunder, because it 

establishes or changes a due, fee, or 


jlentini on DSKJ8SOYB1PROD with NOTICES