Document ID: SEC-2009-1380-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; NYSE Amex,LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change, as Modified by Amendment No. 1, Implementing a Fee for Complex Orders to Its Schedule of Fees and Charges for Exchange Services
Posted Date: 2009-09-28T04:00Z

[Federal Register: September 28, 2009 (Volume 74, Number 186)]
[Notices]               
[Page 49426-49428]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr28se09-114]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-60698; File No. SR-NYSEAmex-2009-61]

 
Self-Regulatory Organizations; NYSE Amex, LLC; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change, as Modified by 
Amendment No. 1, Implementing a Fee for Complex Orders to Its Schedule 
of Fees and Charges for Exchange Services

September 21, 2009.
    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 September 9, 2009, NYSE Amex, LLC (the ``Exchange'' or ``NYSE 
Amex'') 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 NYSE Amex. NYSE Amex 
filed Amendment No. 1 to the proposal on September 18, 2009.\3\ NYSE 
Amex filed the proposed rule change, as amended, pursuant to Section 
19(b)(3)(A) of the Act \4\ and Rule 19b-4(f)(2) thereunder,\5\ which 
renders the proposed rule change, as amended, effective upon filing 
with the Commission. The Commission is publishing this notice to 
solicit comments on the proposed rule change, as amended, from 
interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Amendment No. 1 revises the proposal to: (1) Correct an 
example in the purpose section of the proposal of the fee applicable 
when one firm represents both sides of a transaction; and (2) 
provide additional discussion of the statutory basis for the 
proposal.
    \4\ 15 U.S.C. 78s(b)(3)(A).
    \5\ 17 CFR 19b-4(f)(2).
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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 section of its Schedule of Fees 
and Charges for Exchange Services (the ``Schedule''). While changes to 
the Schedule pursuant to this proposal will be effective upon filing, 
the changes will become operative on September 9, 2009. The amended 
section of the Schedule is included as Exhibit 5 hereto. 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 Exchange 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
    Pursuant to a recent rule filing \6\ the Exchange will be 
introducing automated complex order trading for all market participants 
on NYSE Amex. In conjunction with this new functionality, the Exchange 
proposes to introduce two new transaction fees specific to Complex 
Order executions.
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    \6\ See Securities and Exchange Act Release No. 60554 (August 
21, 2009) 74 FR 43737 (August 27, 2009) (Order granting accelerated 
approval of NYSEAmex-2009-42).
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    Complex Orders that are executed against other similar Complex 
Orders will be subject to a transaction fee of $0.10 per contract. For 
example, if a Complex Order, comprised of two legs, executes against a 
similar two-legged Complex Order, each market participant will be 
charged $0.20 ($0.10 per contract). To expand on this example, if the 
same strategy is executed a total of ten (10) times, each participant 
would be charged $2.00. If a Complex Order comprised of three legs 
executes against a similar three-legged Complex Order then each 
participant would be charged $0.30, for the transaction. To expand on 
this example, if the same three-legged

[[Page 49427]]

Complex Order is executed a total of ten (10) times, each participant 
would be changed $3.00. All electronically executed Complex Orders, 
regardless of whether they are entered by Market Makers, Brokers 
Dealers, or OTP Firms representing Public Customers, will be billed 
this same rate when their order is executed against another Complex 
Order.
    The Exchange proposes a separate fee for electronically executed 
Complex Orders when the same member firm represents both sides of the 
transaction. Complex Orders, entered by a firm that trade against a 
similar Complex Order represented by the same firm, will be subject to 
a transaction fee of $0.05 per contract side. For example, if a Complex 
Order comprised of two legs is entered by Firm A, and executes against 
a similar two-legged Complex Order also for Firm A, the firm will be 
charged a total of $0.20 (four contracts at $.05 per contract), for 
each time the complex order strategy is executed. To expand on this 
example, if the same strategy is executed a total of ten (10) times, 
the firm would be subject to a transaction fee of $1.00 per Complex 
Order, and since the same firm is a party to both sides of the 
transaction, they would be charged a total of $2.00. If a Complex Order 
entered by Firm A, which is comprised of three legs, executes against a 
similar three-legged Complex Order entered by Firm A, then the firm 
would be charged $0.30, for each time the three legged Complex Order is 
executed. To expand on this example, if the same three-legged Complex 
Order is executed a total of ten (10) times, the firm would be subject 
to a transaction fee of $1.50 per Complex Order, and since the firm 
represents both sides of the transaction, they would be charged a total 
of $3.00.
    There may be occasions where a Complex Order will not execute 
against a similar contra-side Complex Order, but instead will execute 
against the individual leg markets represented by quotes and/or orders 
in the Consolidated Book. This scenario will occur when the best price 
for the Complex Order strategy is actually represented by a combination 
of individual quotes and/or orders, resting in the Consolidated Book. 
In situations where Complex Orders are executed utilizing two or more 
individual quotes or orders from the Consolidated Book, standard 
transaction fees, as shown on the Schedule, will apply to all 
participants on the trade. Additionally, standard Marketing Charges 
apply to all electronic complex order executions.
    The Exchange believes that the proposed changes to the Schedule are 
equitable in that they apply uniformly to all similarly situated Users. 
Additionally, the proposed fees are the same as those currently charged 
by NYSE Arca.\7\
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    \7\ See Securities and Exchange Act Release No. 58473 (September 
8, 2008) 73 FR 53312 (September 15, 2008) (Notice of filing and 
immediate effectiveness for SR-NYSEArca-2008-97).
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2. Basis
    The Exchange believes that the proposal is consistent with Section 
6(b) of the Act, in general, and Section 6(b)(4), in particular, in 
that it provides for the equitable allocation of dues, fees and other 
charges among its members. The Exchange believes that the proposed 
rates are reasonable. The proposed rate structure is part of the 
Exchange's efforts to attract and enhance participation on the 
Exchange, with respect to the implementation of electronic complex 
order trading. The Exchange also believes that the proposed changes to 
the Fee Schedule are equitable in that they apply uniformly to all 
market participants on NYSE Amex.

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, as amended, has become effective 
pursuant to Section 19(b)(3)(A) of the Act \8\ and Rule 19b-4(f)(2) \9\ 
thereunder because it establishes a due, fee, or other charge imposed 
by NYSE Amex.
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    \8\ 5 U.S.C. 78s(b)(3)(A).
    \9\ 17 CFR 19b-4(f)(2).
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    At any time within 60 days of the filing of such proposed rule 
change, as amended, 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.\10\
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    \10\ The Commission considers the 60-day period within which the 
Commission may summarily abrogate the proposal pursuant to Section 
19(b)(3)(C) of the Act, 15 U.S.C. 78s(b)(3)(C), to commence on 
September 18, 2009, the date NYSE Amex filed Amendment No. 1 to the 
proposal.
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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 an e-mail to rule-comments@sec.gov. Please include 
File Number SR-NYSEAmex-2009-61 on the subject line.

Paper Comments

     Send paper comments in triplicate to Elizabeth M. Murphy, 
Secretary, Securities and Exchange Commission, Station Place, 100 F 
Street, NE., Washington, DC 20549-1090.

All submissions should refer to File Number SR-NYSEAmex-2009-61. 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 inspection 
and copying 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 NYSEAmex. 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 publicly available. All 
submissions should refer to File Number SR-NYSEAmex-2009-61 and should 
be submitted on or before October 19, 2009.

[[Page 49428]]

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-23306 Filed 9-25-09; 8:45 am]

BILLING CODE 8010-01-P