Document ID: SEC-2009-1126-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: New York Stock Exchange LLC
Posted Date: 2009-08-11T04:00Z

[Federal Register: August 11, 2009 (Volume 74, Number 153)]
[Notices]               
[Page 40252-40253]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr11au09-130]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-60436; File No. SR-NYSE-2009-77]

 
Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by New York Stock Exchange LLC To 
Modify Certain Equity Transaction Fees and Rebates

August 5, 2009.
    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 July 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 make a number of changes to its schedule 
of equity transaction fees and rebates, with effect from August 1, 
2009. 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 Exchange proposes to make a number of changes to its schedule 
of equity transaction fees, with effect from August 1, 2009.
    The following are the proposed changes:
     The Exchange is introducing a new pricing tier of $0.0017 
per share when taking liquidity from the NYSE for member organizations 
which have an average daily trading volume (``ADV'') on the NYSE in the 
applicable month of at least 130 million shares, including (i) 
providing liquidity of an ADV of at least 30 million shares and (ii) an 
ADV of at least 15 million shares total in market at-the-close 
(``MOC'') and limit at-the-

[[Page 40253]]

close (``LOC'') orders. Member organizations meeting these trading 
volume criteria will also qualify for a new pricing tier for MOC and 
LOC orders of $0.0006 per share. For transactions in stocks with a 
trading price below $1.00, member organizations that qualify for the 
new pricing tier will be charged (i) the lesser of 0.3% of the total 
dollar value of the transaction and $0.0017 per share when taking 
liquidity from the Exchange and (ii) the lesser of 0.3% of the total 
dollar value of the transaction or $0.0006 per share for MOC and LOC 
orders. The Exchange is setting the volume requirements for these 
pricing tiers at the specified levels for August in expectation of the 
typical cyclical reduction of trading activity in that month and 
intends to increase the volume requirements in September.
     The transaction fee per share for market at-the-close and 
limit at-the-close orders will increase from $.0005 to $0.0007 per 
share. The $120 trading fee cap per transaction for MOC and LOC orders 
will be eliminated.
     Executions at the open, which are currently free of 
charge, will be subject to a transaction fee of $0.0005 per share, 
subject to a monthly cap of $10,000 per member organization. For 
transactions in stocks with a trading price below $1.00, member will be 
charged the lesser of 0.3% of the total dollar value of the transaction 
and $0.0005 per share for executions at the open, subject to the 
$10,000 monthly cap. Executions at the open will continue to be free of 
charge for DMMs.
     The transaction fee per share for executions of odd-lots 
and the odd-lot portions of partial round lots will increase from 
$0.0005 per share to $0.0018 per share.
     The rebate per share paid to Designated Market Makers for 
executions of odd-lots and the odd-lot portions of partial round lots 
will be increased from $0.0004 per share to $0.0011 per share.
     The per share charge for transactions in stocks with a 
price of less than $1.00, which is the lesser of 0.3% of the dollar 
value of the transaction or $0.0018 per share, is being moved to the 
end of the applicable section of the Price List, as it is a more 
logical placement for it. The fee itself is not changing.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the objectives of Section 6 \4\ of the Act in general and furthers 
the objectives of Section 6(b)(4) \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 all member 
organizations will be subject to the same fee structure.
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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 Number SR-NYSE-2009-77 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-NYSE-2009-77. 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 inspection and 
copying in the Commission's Public Reference Room 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-
NYSE-2009-77 and should be submitted on or before September 1, 2009.

    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. E9-19184 Filed 8-10-09; 8:45 am]

BILLING CODE 8010-01-P