Document ID: SEC-2011-1830-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NYSE Arca, Inc.
Posted Date: 2011-11-28T05:00Z

[Federal Register Volume 76, Number 228 (Monday, November 28, 2011)]
[Notices]
[Pages 72988-72989]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-30430]

[[Page 72988]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-65797; File No. SR-NYSEArca-2011-83]

Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change Regarding Fees and 
Rebates Relating to Executed Qualified Contingent Cross Orders

 November 21, 2011.
    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 November 15, 2011, NYSE Arca, Inc. (the ``Exchange'' or ``NYSE 
Arca'') 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 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 the NYSE Arca Options Fee Schedule 
(``Fee Schedule'') to more clearly describe the fees and rebates 
relating to executed Qualified Contingent Cross (``QCC'') orders. The 
text of the proposed rule change is available at the Exchange, the 
Commission's Public Reference Room, and http://www.nyse.com.

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 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to amend the Fee Schedule to more clearly 
describe the fees and rebates relating to executed QCC orders. 
Specifically, the Exchange proposes to memorialize the intent set forth 
in its rule filing adopting the fee for executed QCC orders, which 
states that the fees relating to executed QCC orders ``will apply to 
each side of the transaction.'' \3\ As such, the Exchange intends to 
amend the Fee Schedule to reflect that the fee of $.10 for executed QCC 
orders is charged per contract side. To parallel this language, the 
Exchange also proposes to amend the Fee Schedule to reflect a rebate to 
the Floor Broker of $.05 per contract side instead of $.10 per contract 
for executed QCC orders. There is no change to the amount rebated to 
the Floor Broker for executed QCC orders. As stated in the rule filing 
implementing the Floor Broker rebate,\4\ the QCC rebate is credited to 
the executing Floor Broker, who handles both contract sides with 
respect to such orders. Thus, the Floor Broker receives a total rebate 
of $.10 for both contract sides together. The proposed change to the 
text of the Fee Schedule will take effect on November 15, 2011.
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    \3\ See Securities Exchange Act Release No. 64596 (June 3, 
2011), 76 FR 33797 (June 9, 2011) (SR-NYSEArca-2011-36).
    \4\ See Securities Exchange Act Release No. 65730 (November 10, 
2011) (SR-NYSEArca-2011-79).
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Securities Exchange Act of 1934 (the 
``Act''),\5\ in general, and Section 6(b)(4) of the Act,\6\ in 
particular, because 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. Specifically, the 
Exchange believes that the proposed change is equitable, because it 
will reduce confusion for all market participants relating to the way 
fees are charged and rebated for executed QCC orders. The Fee Schedule 
will state that the fee of $.10 for executed QCC orders applies per 
contract side, as stated in the rule filing adopting the fee for QCC 
orders.\7\ In addition, the Fee Schedule will state that the rebate 
credited to the executing Floor Broker on a QCC order is $.05 per 
contract side, for a total of $.10 for both contract sides handled by 
the Floor Broker.
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    \5\ 15 U.S.C. 78f(b).
    \6\ 15 U.S.C. 78f(b)(4).
    \7\ See note 3, supra.
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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) \8\ of the Act and subparagraph (f)(2) of Rule 19b-
4 \9\ thereunder, because it establishes a due, fee, or other charge 
imposed by the Exchange. 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.
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    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 17 CFR 240.19b-4(f)(2).
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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-NYSEArca-2011-83 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-NYSEArca-2011-83. 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

[[Page 72989]]

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 the 
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-NYSEArca-2011-83 and should be submitted on or before 
December 19, 2011.

For the Commission, by the Division of Trading and Markets, pursuant 
to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2011-30430 Filed 11-25-11; 8:45 am]
BILLING CODE 8011-01-P