Document ID: SEC-2011-0502-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NYSE Amex LLC
Posted Date: 2011-04-12T04:00Z

[Federal Register Volume 76, Number 70 (Tuesday, April 12, 2011)]
[Notices]
[Pages 20428-20429]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-8581]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-64195; File No. SR-NYSEAmex-2011-21]

Self-Regulatory Organizations; NYSE Amex LLC; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change Amending the 
Exchange Price List

April 5, 2011.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby 
given that, on March 29, 2011, 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 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 2011 Price List (``Price List'') 
for equities to amend the fees charged for taking liquidity in Nasdaq 
securities priced at $1.00 or more and traded pursuant to unlisted 
trading privileges (``UTP''). The Exchange proposes to create a new 
tier with a reduced ``take'' fee of $0.0019 per share (compared with 
$0.0027 currently) for market participants and Designated Market Makers 
(``DMMs'') that meet certain average daily executed volume requirements 
in either shares or a combination of shares and contracts traded on the 
NYSE Amex options market. Market participants and DMMs who meet these 
executed volume requirements will also qualify for a reduced routing 
fee of $0.0019 per share (compared with $0.0029 currently) for 
executions on other markets as a result of routing. The Exchange also 
proposes to eliminate all fees shown in the Price List for Supplemental 
Liquidity Providers (``SLPs''), regardless of price, for taking 
liquidity and for routing because those categories are not applicable 
to SLPs. The amended pricing will become operative on April 1, 2011. 
The text of the proposed rule change is available at the Exchange, on 
the Exchange's Web site at http://www.nyse.com, on the Commission's Web 
site at http://www.sec.gov, 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 for equities to 
modify the fees charged to market participants and DMMs for taking 
liquidity in Nasdaq securities traded pursuant to UTP whose share price 
is $1.00 or more. The corresponding fees for such securities whose 
share price is below $1.00 will remain unchanged from the current 
formulation regardless of whether the volume requirements described 
below are met.
    Currently, market participants and DMMs are charged a fee of 
$0.0027 per share for orders in Nasdaq securities traded pursuant to 
unlisted trading privileges and priced at $1.00 or more that take 
liquidity. Under the proposal, the fee will be reduced to $0.0019 per 
share for orders that take liquidity if either of the following volume 
requirements is met:

     Execution of an average daily volume (``ADV'') in the 
current month of greater than three million shares when taking 
liquidity and routing to other markets for execution (combined); or
     Execution of an ADV in the current month of greater 
than 1 million shares when taking liquidity and routing to other 
markets for execution (combined) and execution of an ADV of 130,000 
total contracts or more on the NYSE Amex options market.

[[Page 20429]]

    The second alternative above for meeting the volume requirements is 
being provided for the purpose of encouraging and rewarding active 
participation in both of the NYSE Amex markets (equities and options) 
and to recognize those participants that are active on both markets. A 
party that does no options business could still obtain the lower charge 
based solely on its UTP equities business.
    Currently, market participants and DMMs are charged a fee of 
$0.0029 per share for orders in Nasdaq securities traded pursuant to 
unlisted trading privileges and priced at $1.00 or more that are routed 
to other markets and execute there. Under the proposal, the fee will be 
reduced to $0.0019 per share for executions of such routed orders if 
either of the above volume requirements is met. The corresponding fee 
for such securities whose share price is below $1.00 will remain 
unchanged from the current formulation regardless of whether the volume 
requirements are met.
    The Exchange believes that these reduced fees for taking liquidity 
and executions from routing will attract more volume to the Exchange 
and thereby result in a more competitive market in the trading of 
Nasdaq UTP securities.
    Finally, the Exchange proposes to eliminate all fees shown in the 
Price List for SLPs, regardless of price, for taking liquidity and for 
routing, because those categories are not applicable to SLPs and should 
not have been added when the fee and credit structure for trading 
Nasdaq listed securities pursuant to UTP was adopted.\4\ As indicated 
in the Price List for its listed securities, the only prices applicable 
to SLPs are credits for adding liquidity. The applicable charges for 
taking liquidity and routing are already covered in that portion of the 
Price List that relates more generally to fees and credits applicable 
to market participants for transactions in Nasdaq securities pursuant 
to UTP, which would include fees for taking liquidity and routing that 
are charged to the firm with which the SLP is associated.
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    \4\ See Securities Exchange Act Release No. 62488 (July 13, 
2010), 75 FR 41912 (July 19, 2010) (File No. SR-NYSEAmex-2010-69).
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    These changes are intended to become operative for all transactions 
beginning April 1, 2011.
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''),\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 proposal does not constitute an inequitable allocation of 
fees, as all similarly situated member organizations will be charged 
the same amount and access to the Exchange's market is offered on fair 
and non-discriminatory terms. The Exchange believes that these reduced 
fees for taking liquidity and executions from routing will attract more 
volume to the Exchange and thereby result in a more competitive market 
in the trading of Nasdaq UTP securities.
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    \5\ 15 U.S.C. 78f(b).
    \6\ 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 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) \7\ of the Act and subparagraph (f)(2) of Rule 19b-
4 \8\ thereunder, because it establishes a due, fee, or other charge 
imposed by the NYSE Amex.
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    \7\ 15 U.S.C. 78s(b)(3)(A).
    \8\ 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. 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-2011-21 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-2011-21. 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 
publicly available. All submissions should refer to File Number SR-
NYSEAmex-2011-21 and should be submitted on or before May 3, 2011.
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    \9\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\9\
Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-8581 Filed 4-11-11; 8:45 am]
BILLING CODE 8011-01-P