Document ID: SEC-2010-0347-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NYSE Amex LLC
Posted Date: 2010-03-08T05:00Z

[Federal Register Volume 75, Number 44 (Monday, March 8, 2010)]
[Notices]
[Pages 10532-10533]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-4737]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-61615; File No. SR-NYSEAmex-2010-10]

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

March 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 February 1, 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 to make multiple changes to its Schedule 
effective February 1, 2010. A more detailed description of the proposed 
changes follows.
    Specialists, E-Specialists and DOMM Rights Fee:
    Presently we charge to Specialists, E-Specialists and Directed 
Order Market Makers, on a pro rata basis, a monthly rights fee that is 
based on a tiered scale according to how much Average Daily National 
Customer Volume was executed during a rolling 3 month period. Effective 
February 1, 2010, the Exchange will reduce the rights fee by 50% in 
each tier as shown below.

------------------------------------------------------------------------
Average National Daily Customer Contracts per issue:  Monthly base rate:
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0 to 2,000..........................................          [$150] $75
2,001 to 5,000......................................         [$400] $200
5,001 to 15,000.....................................         [$750] $375
15,001 to 100,000...................................       [$1,500] $750
Over 100,000........................................     [$3,000] $1,500
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    Non-Directed Market Maker Fee and Market Maker Fee Cap:
    The Exchange is also proposing to increase the per contract rate 
paid by Non-Directed Market Makers from $.17 to $.18 per contract. 
Concurrently, the Exchange also proposes to introduce a fee cap for all 
Market Makers.\3\ The fee cap will be set at $250,000 per month plus an 
incremental rate of $.01 per contract for all Specialist, e-Specialist 
and Market Maker (both Directed and non-Directed) volume executed in 
excess of 2,500,000 contracts per month. For example, today a Non-
Directed Market Maker who executes 3,000,000 contracts in a given month 
would pay $510,000 (3,000,000 x $.17). The introduction of the fee 
change would result in the same Non-Directed Market Maker paying 
$255,000 (3,000,000 x $.18 = $540,000 which is then reduced to $250,000 
plus 500,000 [incremental volume over 2,500,000] x $.01 = $5,000 
resulting in the monthly charge of $255,000). Specialist, e-Specialist, 
and Market Marker (both Directed and non-Directed) fees will be 
aggregated for purposes of the cap. The Exchange will exclude any fees 
or volume associated with a Strategy Trade (reversals and conversions, 
dividend spreads, box spreads, short stock interest spreads, merger 
spreads, and jelly rolls). Any fees or volume attributable to a 
Strategy Trade will not be counted towards either the $250,000 fee cap, 
or the volume threshold of 2,500,000 contracts. All Royalty Fees will

[[Page 10533]]

continue to be charged and do not count toward the $250,000 fee cap.
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    \3\ Market Makers include all Specialists, e-Specialists, Non-
Directed Market Makers and Directed Market Makers.
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    NYSE Amex is continuously monitoring our fees in an attempt to 
ensure that we remain competitive while also ensuring that we allocate 
our costs equitably across all participants. NYSE Amex believes that 
proposed changes are equitable and apply uniformly to all similarly 
situated ATP Holders.
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. NYSE Amex believes that 
proposed changes are equitable and apply uniformly to all similarly 
situated 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 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-2010-10 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-2010-10. 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-2010-10 and should be submitted on or before March 29, 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. 2010-4737 Filed 3-5-10; 8:45 am]
BILLING CODE 8011-01-P