Document ID: SEC-2012-0767-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NYSE Amex LLC
Posted Date: 2012-05-16T04:00Z

[Federal Register Volume 77, Number 95 (Wednesday, May 16, 2012)]
[Notices]
[Pages 28912-28914]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-11794]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-66959; File No. SR-NYSEAmex-2012-28]

Self-Regulatory Organizations; NYSE Amex LLC; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change To Amend the NYSE 
Amex Equities Price List for Certain Fees Relating To Transactions in 
Exchange-Listed Securities and Trading Pursuant to Unlisted Trading 
Privileges of Securities Listed on the Nasdaq Stock Market LLC

May 10, 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 April 30, 2012, NYSE Amex LLC (``NYSE Amex'' 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 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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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend the NYSE Amex Equities Price List 
(``Price List'') for certain fees relating to transactions in Exchange-
listed securities and trading pursuant to unlisted trading privileges 
(``UTP'') of securities listed on the Nasdaq Stock Market LLC 
(``Nasdaq''). 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.

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 for certain fees 
relating to transactions in Exchange-listed securities and trading 
pursuant to UTP of securities listed on Nasdaq.
    The Exchange proposes to charge a transaction fee of $0.0005 for at 
the opening and at the opening only orders for Exchange-listed 
securities with a per share price of $1.00 or more. In addition, the 
Exchange proposes to charge a transaction fee of 0.3% of the total 
dollar value of the transaction for at the opening and at the opening 
only orders for Exchange-listed securities with a per share price below 
$1.00. The aggregate fees for at the opening and at the opening only 
orders with a per share price of $1.00 or more and a per share price 
below $1.00 will be capped at $15,000 per month per member 
organization. Currently there are no charges for these transactions. 
The proposed fees will be the same as those currently charged on the 
New York Stock Exchange (``NYSE'') for at the

[[Page 28913]]

opening and at the opening only orders.\3\
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    \3\ See NYSE Price List 2012, dated March 1, 2012, available at 
https://usequities.nyx.com/sites/usequities.nyx.com/files/nyse_price_list_04_01_12.pdf.
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    Additionally, the Exchange proposes certain changes to equity 
transaction fees and credits for Nasdaq securities traded pursuant to 
UTP. For fees and credits applicable to market participants, the 
Exchange proposes to eliminate the $0.0030 equity per share credit per 
transaction when adding liquidity, including displayed and non-
displayed orders, when the share price is $1.00 or more.\4\ The 
Exchange proposes to change the $0.0027 equity per share charge for all 
other transactions (i.e., when taking liquidity) with a per share price 
of $1.00 or more to a $0.0003 equity per share credit and eliminate the 
fee for all other transactions with a per share price below $1.00. The 
Exchange proposes to reduce the equity per share credit per transaction 
for displayed liquidity when adding liquidity in orders that originally 
display a minimum of 2,000 shares with a trading price of at least 
$5.00 per share, as long as the order is not cancelled in an amount 
that would reduce the original displayed amount below 2,000 shares, 
from $0.0036 to $0.0020.
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    \4\ The Exchange also proposes to make conforming changes to 
reflect that a credit is ``Not Applicable'' rather than ``No 
Charge.''
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    For fees and credits applicable to Designated Market Makers 
(``DMMs'') for transactions in Nasdaq securities traded pursuant to 
UTP, the Exchange proposes to reduce the equity per share credit per 
transaction when adding liquidity from $0.0031 to $0.0020 when the 
share price is $1.00 or more. The Exchange proposes to change the 
$0.0027 equity per share charge for all other transactions with a per 
share price of $1.00 or more to a $0.0003 equity per share credit and 
eliminate the fee for all other transactions with a per share price 
below $1.00. The Exchange proposes to reduce the equity per share 
credit per transaction for the displayed portion of s-Quotes when 
adding liquidity in s-Quotes that display 2,000 shares or more at the 
time of execution with a trading price of at least $5.00 per share from 
$0.0036 to $0.0020.
    For fees and credits applicable to Supplemental Liquidity Providers 
(``SLPs'') for transactions in Nasdaq securities traded pursuant to 
UTP, the Exchange proposes to reduce the equity per share credit per 
transaction when adding liquidity, if the SLP meets quoting 
requirements pursuant to Rule 107B, from $0.0031 to $0.0005 when the 
share price is $1.00 or more. The Exchange proposes to eliminate the 
$0.0030 equity per share credit per transaction when adding liquidity, 
if the SLP does not meet the quoting requirement pursuant to Rule 107B 
when the share price is $1.00 or more. Lastly, the Exchange proposes to 
reduce the equity per share credit per transaction for displayed 
liquidity when adding liquidity in orders that originally display a 
minimum of 2,000 shares with a trading price of at least $5.00 per 
share, as long as the order is not cancelled in an amount that would 
reduce the original displayed amount below 2,000 shares, from $0.0036 
to $0.0020.
    The Exchange also proposes to make certain conforming changes to 
the footnotes in the Price List.
    The Exchange proposes to make the rule change operative on May 1, 
2012.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Securities Exchange Act of 1934 (the 
``Act''),\5\ in general, and Section 6(b)(4) of the Act,\6\ 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 fee changes are equitably allocated because all 
similarly situated DMMs, SLPs, and market participants will be subject 
to the same fee structure, and access to the Exchange's market is 
offered on fair and non-discriminatory terms.
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    \5\ 15 U.S.C. 78f(b).
    \6\ 15 U.S.C. 78f(b)(4).
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    With respect to the fees for at the opening and at the opening only 
orders for Exchange-listed securities, the Exchange believes that the 
proposed changes are reasonable because both the fees and the fee cap 
are the same as those charged by the NYSE.\7\ With respect to the 
proposed elimination of transaction fees for market participants and 
DMMs that take liquidity in UTP securities at all prices and creation 
of a new credit for taking liquidity in UTP securities priced at $1.00 
or more, the Exchange believes that the change will attract more volume 
to the Exchange from market participants and DMMs that are seeking to 
lower their overall transaction costs and thereby will result in a more 
competitive market in the trading of Nasdaq securities pursuant to UTP. 
The Exchange further believes that the proposed elimination or 
reduction of other credits for market participants, DMMs, and SLPs that 
add liquidity in UTP securities is appropriate in light of the proposed 
elimination of the transaction fees and creation of the new credit for 
taking liquidity.
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    \7\ See supra note 4.
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    Finally, the Exchange notes that it operates in a highly 
competitive market in which market participants can readily favor 
competing venues if they deem fee levels at a particular venue to be 
excessive. In such an environment, the Exchange must continually adjust 
its fees to remain competitive with other exchanges and with 
alternative trading systems that have been exempted from compliance 
with the statutory standards applicable to exchanges. The Exchange 
believes that the proposed rule change reflects this competitive 
environment because it will broaden the conditions under which 
customers may qualify for higher liquidity provider credits.

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) \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 the NYSE Amex.
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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.

[[Page 28914]]

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 rule-comments@sec.gov. Please 
include File Number SR-NYSEAmex-2012-28 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-NYSEAmex-2012-28. 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-NYSEAmex-2012-28 and should 
be submitted on or before June 6, 2012.

    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. 2012-11794 Filed 5-15-12; 8:45 am]
BILLING CODE 8011-01-P