Document ID: SEC-2014-0946-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: New York Stock Exchange, LLC
Posted Date: 2014-06-09T04:00Z

[Federal Register Volume 79, Number 110 (Monday, June 9, 2014)]
[Notices]
[Pages 33017-33018]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-13313]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-72302; File No. SR-NYSE-2014-28]

Self-Regulatory Organizations; New York Stock Exchange LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
Amending Its Price List To Eliminate a Credit for Certain Non-Floor 
Broker Transactions

June 3, 2014.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 
1934 (``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given 
that, on May 28, 2014, New York Stock Exchange LLC (``NYSE'' or 
``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 self-regulatory 
organization. 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\ 15 U.S.C. 78a.
    \3\ 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 Price List to eliminate a credit 
for certain non-Floor broker transactions. The proposed change will be 
operative on June 1, 2014. The text of the proposed rule change is 
available on the Exchange's Web site at www.nyse.com, at the principal 
office of the Exchange, 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 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 amend its Price List to eliminate a credit 
for certain non-Floor broker transactions. The proposed change will be 
operative on June 1, 2014.
    On March 1, 2014, the Exchange established a $0.0019 per share 
credit per transaction for all non-Floor broker transactions that add 
liquidity to the Exchange if the member organization executes an 
average daily volume (``ADV'') during the billing month of at least 1 
million shares in Retail Price Improvement Orders (``RPIs'') \4\ and a 
Customer Electronic Adding ADV \5\ during the billing month of at least 
5 million shares.\6\ A member organization's provide [sic] volume in 
RPIs counts toward the 5 million share Customer Electronic Adding ADV 
threshold if the RPIs meet the definition of Customer Electronic Adding 
ADV. When it established this credit, the Exchange believed that the 
credit would incentivize member organizations to submit RPIs and, 
therefore, contribute to robust amounts of RPI liquidity being 
available for interaction with retail orders submitted by other market 
participants and encourage overall liquidity in customer electronic 
orders that add liquidity to the Exchange. Because the credit has not 
attracted liquidity as the Exchange anticipated, the Exchange proposes 
to eliminate it.
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    \4\ ``RPI'' is defined in NYSE Rule 107C(a)(4) and consists of 
non-displayed interest in NYSE-listed securities that is priced 
better than the best protected bid or best protected offer, as such 
terms are defined in Regulation NMS Rule 600(b)(57), by at least 
$0.001 and that is identified as such.
    \5\ ``Customer Electronic Adding ADV'' is ADV that adds 
liquidity in customer electronic orders to the Exchange and excludes 
any liquidity added by a Floor broker, Designated Market Maker, or 
Supplemental Liquidity Provider. See Price List.
    \6\ See Securities Exchange Act Release No. 71684 (March 11, 
2014), 78 FR 14758 (March 17, 2014) (SR-NYSE-2014-09). The 
applicable $0.0015 Midpoint Passive Liquidity (``MPL'') order credit 
did not change as a result of adding this credit and will continue 
to be available.
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act,\7\ in general, and furthers the 
objectives of Sections 6(b)(4) and (5) of the Act,\8\ in particular, 
because it provides for the equitable allocation of reasonable dues, 
fees, and other charges among its members, issuers and other persons 
using its facilities and does not unfairly discriminate between 
customers, issuers, brokers or dealers. The Exchange believes that 
eliminating the credit is reasonable because it has not attracted 
liquidity as the Exchange anticipated when it was established. The 
elimination of the credit is also equitable and not unfairly 
discriminatory because it will be eliminated for all non-Floor broker 
transactions.
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    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(4) and (5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    In accordance with Section 6(b)(8) of the Act,\9\ 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. The credit that the Exchange is proposing to 
eliminate has not attracted liquidity to the Exchange as anticipated, 
and therefore removing it will not affect competition. The Exchange 
notes that it operates in a highly competitive market in which market 
participants can readily favor competing venues if they deem fee or 
credit levels at a particular venue to be unattractive. In such an 
environment, the Exchange must continually review, and consider 
adjusting, its fees and credits to remain competitive with other 
exchanges. For these reasons, the Exchange believes that the proposed 
rule change reflects this competitive environment and is therefore 
consistent with the Act.
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    \9\ 15 U.S.C. 78f(b)(8).

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[[Page 33018]]

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) \10\ of the Act and subparagraph (f)(2) of Rule 
19b-4 \11\ thereunder, because it establishes a due, fee, or other 
charge imposed by the Exchange.
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    \10\ 15 U.S.C. 78s(b)(3)(A).
    \11\ 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. If the Commission 
takes such action, the Commission shall institute proceedings under 
Section 19(b)(2)(B) \12\ of the Act to determine whether the proposed 
rule change should be approved or disapproved.
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    \12\ 15 U.S.C. 78s(b)(2)(B).
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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 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 email to rule-comments@sec.gov. Please include 
File Number SR-NYSE-2014-28 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-NYSE-2014-28. 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 Section, 100 F Street 
NE., Washington, DC 20549-1090. Copies of the filing will also be 
available for Web site viewing and printing at the NYSE's principal 
office and on its Internet Web site at www.nyse.com. 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-2014-28 and should be 
submitted on or before June 30, 2014.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\13\
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    \13\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-13313 Filed 6-6-14; 8:45 am]
BILLING CODE 8011-01-P