Document ID: SEC-2010-0487-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NYSE Amex, LLC
Posted Date: 2010-04-01T04:00Z

[Federal Register: April 1, 2010 (Volume 75, Number 62)]
[Notices]               
[Page 16543-16544]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr01ap10-134]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-61788; File No. SR-NYSEAmex-2010-07]

 
Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by NYSE Amex, LLC Amending Its 
Fee Schedule

March 26, 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 January 28, 2010, NYSE Amex LLC (``NYSE Amex'' 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. 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 its Schedule of Fees and Charges 
(the ``Schedule'') effective February 1, 2010. The text of the proposed 
rule change is attached as Exhibit 5 to the 19b-4 form. A copy of this 
filing is available on the Exchange's Web site at http://www.nyse.com, 
at the Exchange's principal office 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 aspects of such statements.

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

1. Purpose
    NYSE Amex proposes a new pass-through Routing Surcharge designed to 
recover routing, clearing and transaction fees for the execution of 
orders routed to away exchanges. The Exchange will not assess a Routing 
Surcharge on Customer orders that do not incur a transaction charge at 
the away exchange.
    The Exchange currently routes all orders that are marketable at the 
National Best Bid/Offer (``NBBO''), but not executable on NYSE Amex, 
immediately upon receipt, to the away market(s) at the NBBO. For any 
order executed as a result of routing out, the Exchange currently 
charges fees in the same manner as if the execution occurred on the 
Exchange. In the case of Customer orders, the Exchange charges no 
transaction fee for the execution, despite incurring costs that include 
clearing charges, routing charges, and in some instances transaction 
fees.
    In recent months, particularly with the replacement of the old 
Intermarket Options Linkage Plan and the expansion of the Penny Pilot 
Program, the Exchange is experiencing a rise in the number of contracts 
that route out, with a related rise in costs incurred for routing such 
orders.\3\ Effective February 1, 2010 NYSE Amex will introduce a new 
Routing Surcharge in order to pass through routing, clearing and 
transaction charges associated with orders routed to away markets. The 
Routing Surcharge will be assessed on all non-customer orders routed to 
away markets and on Customer orders that are charged transaction fees 
at the executing exchange. If the executing exchange does not charge a 
transaction fee for the execution of the Customer order, the Routing 
Surcharge will not be assessed. The Exchange believes these fees are 
reasonable and represent pass through charges incurred by the Exchange 
for routing orders to away markets and the cost borne by the Exchange 
of developing, operating and maintaining smart order routing 
technology. Customer orders that are not charged an execution fee at 
the away market will not be charged the Routing Surcharge because in 
those instances the Exchange is not charged a fee by its routing 
broker. The Routing Surcharge will be made up of (i) $0.11 per 
contract, and (ii) all actual charges assessed by the away exchange(s) 
(calculated on an order-by-order basis since different away exchanges 
charge different amounts). The Routing Surcharge is in addition to NYSE 
Amex's customary execution fees applicable to the order. This fee 
structure is consistent with a similar fee charged by the CBOE.
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    \3\ This paragraph and the following paragraph were revised via 
an e-mail sent from Matthew Vaughn, Counsel Director of Compliance, 
NYSE Amex LLC, to Leah Mesfin, Special Counsel, Division of Trading 
and Markets, Commission, on February 22, 2010.
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    The Exchange also proposes to change the Broker Dealer & Firm 
Electronic fee to $0.30 per contract (currently $0.15 per contract). In 
making this rate change the Exchange seeks to remain competitive with 
other markets that often charge a higher rate. In proposing this new 
rate, NYSE Amex also seeks to adopt industry practice which sets the 
electronic broker dealer rate at a level slightly higher than the 
manual broker dealer charge. The pricing convention sets a small 
premium on the electronic broker dealer rate while still providing 
savings to the trading participant who would otherwise have to pay 
brokerage fees to a floor broker if it chose to access our markets 
through a manual execution. The Exchange further notes that this fee 
was reduced from $0.45 to its current level in June 2009.
    Finally, the Exchange's Cancellation Fee is currently waived until 
February 1, 2010. Beginning February 1, 2010 the Exchange will begin 
charging the Cancellation Fee and proposes to remove language from the 
Schedule referencing the waiver.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the provisions of Section 6 of the Securities Exchange Act of 1934 
(the ``Act''),\4\ in general, and Section 6(b)(4) of the Act,\5\ 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 proposed fees are 
reasonable and apply equally to all ATP Holders.
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    \4\ 15 U.S.C. 78f(b).
    \5\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
impose

[[Page 16544]]

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 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) \6\ of the Act and subparagraph (f)(2) of Rule 19b-
4 \7\ thereunder, because it establishes a due, fee, or other charge 
imposed by the NYSE Amex.
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    \6\ 15 U.S.C. 78s(b)(3)(A).
    \7\ 17 CFR 240.19b-4(f)(2).
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    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 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 rule-comments@sec.gov. Please include 
File Number SR-NYSEAmex-2010-07 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-2010-07. 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-
NYSEAmex-2010-07 and should be submitted on or before April 22, 2010.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\8\
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    \8\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-7362 Filed 3-31-10; 8:45 am]
BILLING CODE 8011-01-P