Document ID: SEC-2010-0574-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NYSE Arca, Inc.
Posted Date: 2010-04-16T04:00Z

[Federal Register: April 16, 2010 (Volume 75, Number 73)]
[Notices]               
[Page 20030-20031]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr16ap10-143]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-61868; File No. SR-NYSEArca-2010-21]

 
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing 
and Immediate Effectiveness of Rule Change Amending Its Fee Schedule

April 7, 2010.
    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 30, 2010, NYSE Arca, Inc. (``NYSE Arca'' 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 changes to 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 April 1, 2010. The amended section of the 
Schedule is available on the Commission's Website at http://
www.sec.gov. 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 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 is proposing changes to the Tier 1 rates and volume 
levels. Under this proposal, Tier 1 rates will be applied to ETP 
Holders and Market Makers that provide liquidity on the Exchange with 
an ADV per month of greater than 55 million shares. Currently the Tier 
1 volume level is set at 60 million shares. The Exchange also proposes 
to increase the credit for orders that provide liquidity to the Book in 
Tape A and Tape C securities from $0.0029 per share to $0.0030 per 
share in Tier 1. In conjunction with these changes, the Exchange will 
eliminate the Super Tier. All other Tiered pricing remains the 
unchanged.
    The Exchange is also proposing to modify its fees structure for 
securities that execute at prices below $1. For these securities, the 
Exchange currently charges ETP Holders accessing liquidity a fee equal 
to 0.1% (10 basis points) of the total dollar value of the execution 
and provides no credit to ETP Holders providing liquidity. Under the 
new fee structure, ETP Holders accessing liquidity will be charged 0.3% 
(30 basis points) of the total dollar value of the execution, and ETP 
Holder providing liquidity will be provided a credit equal to 0.25% (25 
basis points) of the total dollar value of the transaction. These fees 
are consistent with the limitations of Regulation NMS, SEC Rule 610(c), 
for securities with a price of less than $1.00.
    The proposed changes to the Schedule are part of the Exchange's 
continued effort to attract and enhance participation on the Exchange 
by offering volume based incentives along with attractive rates for 
removing liquidity and rebates for providing liquidity. The Exchange 
believes the proposed fees are reasonable and equitable in that they 
apply uniformly to all similarly situated ETP Holders. The proposed 
changes will become operative on April 1, 2010.
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. The proposed changes to 
the Schedule are part of the Exchange's continued effort to attract and 
enhance participation on the Exchange by offering volume based 
incentives along with attractive rates for removing liquidity and 
rebates for providing liquidity to the Exchange. The proposed changes 
to the Schedule are reasonable and equitable in that they apply 
uniformly to all similarly situated ETP Holders.
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    \4\ 15 U.S.C. 78f(b). [sic]
    \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.

[[Page 20031]]

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) \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 NYSE Arca on its members. 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.
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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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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-NYSEArca-2010-21 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-NYSEArca-2010-21. 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 
available publicly. All submissions should refer to File Number SR-
NYSEArca-2010-21 and should be submitted on or before May 7, 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. 2010-8685 Filed 4-15-10; 8:45 am]
BILLING CODE 8011-01-P