Document ID: SEC-2011-2009-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: New York Stock Exchange LLC
Posted Date: 2011-12-23T05:00Z

[Federal Register Volume 76, Number 247 (Friday, December 23, 2011)]
[Notices]
[Pages 80445-80446]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-32879]

-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-66003; File Nos. SR-NYSE-2011-55; SR-NYSEAmex-2011-84]

Self-Regulatory Organizations; New York Stock Exchange LLC; NYSE 
Amex LLC; Notice of Designation of a Longer Period for Commission 
Action on Proposed Rule Changes Adopting New NYSE Rule 107C To 
Establish a Retail Liquidity Program on a Pilot Basis To Attract 
Additional Retail Order Flow to the Exchange for NYSE-listed Securities 
and New NYSE Amex Equities Rule 107C To Establish a Retail Liquidity 
Program on a Pilot Basis To Attract Additional Retail Order Flow to the 
Exchange for NYSE Amex Equities Traded Securities

December 19, 2011.
    On October 19, 2011, New York Stock Exchange LLC (``NYSE'') and 
NYSE Amex LLC (``NYSE Amex'') (collectively the ``Exchanges'') filed 
with the Securities and Exchange Commission (``Commission'') pursuant 
to Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act'') 
\1\ and Rule 19b-4

[[Page 80446]]

thereunder,\2\ proposed rule changes to adopt a pilot program intended 
to attract additional retail order flow to the Exchanges while also 
providing the potential for price improvement to such order flow. The 
proposed rule changes were published for comment in the Federal 
Register on November 9, 2011.\3\ To date, the Commission has received 
27 comments on the NYSE proposal \4\ and 4 comments on the NYSE Amex 
proposal.\5\
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release Nos. 65671 (November 2, 
2011), 76 FR 69774; 65672 (November 2, 2011), 76 FR 69788.
    \4\ See Letters to the Commission from Sal Arnuk, Joe Saluzzi 
and Paul Zajac, Themis Trading LLC, dated October 17, 2011; Garret 
Cook, dated November 4, 2011; James Johannes, dated November 27, 
2011; Ken Voorhies, dated November 28, 2011; William Wuepper, dated 
November 28, 2011; A. Joseph, dated November 28, 2011; Leonard 
Amoruso, General Counsel, Knight Capital, Inc., dated November 28, 
2011; Kevin Basic, dated November 28, 2011, J. Fournier, dated 
November 28, 2011; Ullrich Fischer, CTO, PairCo, dated November 28, 
2011; James Angel, Associate Professor of Finance, McDonough School 
of Business, Georgetown University, dated November 28, 2011; Jordan 
Wollin, dated November 29, 2011; Aaron Schafter, President, Great 
Mountain Capital Management LLC, dated November 29, 2011; Wayne 
Koch, Trader, Bright Trading, dated November 29, 2011; Kurt Schact, 
CFA, Managing Director, and James Allen, CFA, Head, Capital Markets 
Policy, CFA Institute, dated November 30, 2011; David Green, Bright 
Trading, dated November 30, 2011; Robert Bright, Chief Executive 
Officer, and Dennis Dick, CFA, Market Structure Consultant, Bright 
Trading LLC, dated November 30, 2011; Bodil Jelsness, dated November 
30, 2011; Christopher Nagy, Managing Director, Order Routing and 
Market Data Strategy, TD Ameritrade, dated November 30, 2011; Laura 
Kenney, dated November 30, 2011; Suhas Daftuar, Hudson River Trading 
LLC, dated November 30, 2011; Bosier Parsons, Bright Trading LLC, 
dated November 30, 2011; Mike Stewart, Head of Global Equities, UBS, 
dated November 30, 2011; Dr. Larry Paden, Bright Trading, dated 
December 1, 2011; Thomas Dercks, dated December 1, 2011; Eric 
Swanson, Secretary, BATS Global Markets, Inc., dated December 6, 
2011; and Ann Vlcek, Director and Associate General Counsel, 
Securities Industry and Financial Markets Association, dated 
December 7, 2011.
    \5\ See Letters to the Commission from Leonard Amoruso, General 
Counsel, Knight Capital, Inc., dated November 28, 2011; Kurt Schact, 
CFA, Managing Director, and James Allen, CFA, Head, Capital Markets 
Policy, CFA Institute, dated November 30, 2011; Christopher Nagy, 
Managing Director, Order Routing and Market Data Strategy, TD 
Ameritrade, dated November 30, 2011; and Shannon Jennewein, dated 
November 30, 2011.
---------------------------------------------------------------------------

    Section 19(b)(2) of the Act \6\ provides that within 45 days of the 
publication of notice of the filing of a proposed rule change, or 
within such longer period up to 90 days as the Commission may designate 
if it finds such longer period to be appropriate and publishes its 
reasons for so finding or as to which the self-regulatory organization 
consents, the Commission shall either approve the proposed rule change, 
disapprove the proposed rule change, or institute proceedings to 
determine whether the proposed rule change should be disapproved. The 
45th day for these filings is December 24, 2011.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78s(b)(2).
---------------------------------------------------------------------------

    The Commission is extending the 45-day time period for Commission 
action on the proposed rule changes. The Commission finds that it is 
appropriate to designate a longer period to take action on the proposed 
rule changes so that it has sufficient time to consider the Exchanges' 
proposals, which would allow the Exchanges to utilize non-displayed 
orders that offered price improvement to retail order flow potentially 
in sub-penny increments, and the comment letters that have been 
submitted in connection with them.
    Accordingly, pursuant to Section 19(b)(2) of the Act,\7\ the 
Commission designated February 7, 2012 as the date by which the 
Commission should either approve or disapprove, or institute 
proceedings to determine whether to disapprove, the proposed rule 
changes.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\8\
---------------------------------------------------------------------------

    \8\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2011-32879 Filed 12-22-11; 8:45 am]
BILLING CODE 8011-01-P