Document ID: SEC-2010-0075-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: New York Stock Exchange LLC
Posted Date: 2010-01-14T05:00Z

[Federal Register: January 14, 2010 (Volume 75, Number 9)]
[Notices]               
[Page 2176-2177]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr14ja10-112]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-61309; File No. SR-NYSE-2009-133]

 
Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by New York Stock Exchange LLC To 
Modify the Liquidity Credits Paid to Supplemental Liquidity Providers

January 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 December 30, 2009, New York Stock Exchange LLC (the 
``NYSE'' or the ``Exchange'') filed with the Securities and Exchange 
Commission (the ``Commission'') the proposed rule changes 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 changes from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78a et seq.
    \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 schedule of credits paid to 
Supplemental Liquidity Providers (``SLPs'') (i) to clarify that the 
current credits paid to SLPs relate only to transactions in securities 
with a trading price of $1.00 or more and (ii) to establish a liquidity 
credit for transactions in securities with a trading

[[Page 2177]]

price of less than $1.00. The text of the proposed rule change is 
available on the Exchange's Web site (http://www.nyse.com), at the 
Exchange's Office of the Secretary, 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 these statements may be examined at 
the places specified in Item IV below. The NYSE 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
    The NYSE pays credits to SLPs for providing liquidity in 
transactions in securities with a trading price of $1.00 or more. There 
are several different tiers at which these credits are paid, based on 
(i) whether the SLP has met the 3% average or more quoting requirement 
(the ``Quoting Requirement'') in Rule 107B for the applicable security 
and (ii) the amount of the SLPs average daily trading volume (``ADV'') 
in the security in the applicable month. While the Exchange has always 
applied its existing credits for SLPs only to transactions in 
securities with a trading price of $1.00 or more, this is not apparent 
on the face of the price list. Therefore, the Exchange proposes to 
clarify the price list by amending it to specify that the current SLP 
liquidity credits apply only to transactions in securities with a 
trading price of $1.00 or more. In addition, the Exchange is adopting a 
new $0.0005 per share credit which will be paid to SLPs when they add 
liquidity in a security with a trading price of less than $1.00 with 
respect to which they have met the Quoting Requirement for the 
applicable month.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the provisions of Section 6 \4\ of the Act 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 Exchange 
believes that the proposal does not constitute an inequitable 
allocation of dues, fees and other charges, as the liquidity provided 
by SLPs is an important part of the NYSE market model and it is 
therefore appropriate to structure credits to incent liquidity 
provision by SLPs.
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    \4\ 15 U.S.C. 78f.
    \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 purpose of the Act.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants or Others

    Written comments were neither solicited nor received.

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 Rule 19b-4(f)(2) \7\ thereunder.
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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 No. SR-NYSE-2009-133 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 No. SR-NYSE-2009-133. 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,\8\ 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 inspection and 
copying 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 NYSE. 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 No. SR-NYSE-2009-133 and should be 
submitted on or before February 4, 2010.\9\
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    \8\ The text of the proposed rule change is available on the 
Commission's Web site at
    http://www.sec.gov.
    \9\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-543 Filed 1-13-10; 8:45 am]
BILLING CODE 8011-01-P