Document ID: SEC-2010-1591-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NYSE Amex LLC
Posted Date: 2010-10-19T04:00Z

[Federal Register: October 19, 2010 (Volume 75, Number 201)]
[Notices]               
[Page 64368-64370]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr19oc10-92]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-63072; File No. SR-NYSEAmex-2010-97]

 
Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by NYSE Amex LLC Amending the 
Exchange Price List

October 7, 2010.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(the ``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given 
that, on October 1, 2010, NYSE Amex LLC. (``NYSE Amex'' or the 
``Exchange'') filed with the Securities and Exchange Commission (the 
``Commission'') the proposed rule change as described in Items I and II 
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 its 2010 Price List for equities to 
amend the fees charged for taking liquidity and the rebates for 
providing liquidity for Nasdaq securities traded pursuant to unlisted 
trading privileges and incorporate an enhanced rebate for larger 
displayed orders in trades above $5.00 in lieu of the standard rebate, 
as well as assess monthly fees for the use of all ports that provide 
connectivity to its equity trading systems. In its table of credits 
applicable to Supplemental Liquidity Providers (``SLPs''), the Exchange 
is modifying language referencing the SLP quoting requirement to 
reflect a recent rule filing that changed the standard from 3% to 5% of 
the regular trading day in any calendar month in order to receive a 
financial rebate. The amended pricing will take effect on October 1, 
2010. The text of the proposed rule change is available on the 
Exchange's Web site at http://www.nyse.com, at the Exchange's principal 
office, on the Commission's Web site at http://www.sec.gov, 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 proposes to amend its 2010 Price List for equities to 
modify the structure of (i) fees charged for taking liquidity and (ii) 
rebates for adding liquidity, to market participants, Supplemental 
Liquidity Providers (``SLPs'') and Designated Market Makers (``DMMs''), 
for Nasdaq securities traded pursuant to unlisted trading privileges 
whose share price is $1.00 or more.
    Currently, market participants, SLPs and DMMs are charged a fee of 
$0.0013 per share for orders in Nasdaq securities traded pursuant to 
unlisted trading privileges that take liquidity. Under the proposal, 
the fee will be $0.0023 per share for orders that take liquidity.
    Market participants, other than DMMs and SLPs, that provide 
liquidity in Nasdaq securities traded pursuant to unlisted trading 
privileges are currently paid a rebate of $0.0019 per share. Under the 
proposal, such market participants will be paid a rebate of $0.0030 per 
share.
    Currently, for orders in Nasdaq securities traded pursuant to 
unlisted trading privileges that provide liquidity, DMMs, and SLPs that 
meet their quoting requirements pursuant to Rule 107B, are paid a 
rebate of $0.0021 per share, and SLPs that do not meet their quoting 
requirements are paid a rebate of $0.0019 per share for orders that 
provide liquidity. Under the proposal, the rebate will be $0.0031 per 
share for

[[Page 64369]]

orders that provide liquidity for both DMMs and SLPs that meet their 
quoting requirements while SLPs that provide liquidity but do not meet 
their quoting requirements will be paid a rebate of $0.0030 per share.
    Additionally, in lieu of the above rebates, the Exchange is 
proposing to provide a block rebate of $0.0036 per share for executions 
of displayed liquidity to all market participants and SLPs that provide 
liquidity in orders in Nasdaq securities traded pursuant to unlisted 
trading privileges that originally display a minimum of 5,000 shares 
with a trading price of at least $5.00 per share, for as long as the 
order is not cancelled in [sic] amount that would reduce the original 
displayed amount below 5,000 shares. For example, if a 10,000 share 
order priced above $5.00 displays 10,000 shares, and is then partially 
executed in the amount of 4,000 shares, the executed 4,000 shares 
receive the block rebate. The remaining 6,000 shares are still eligible 
for the block rebate. Additionally, if a 10,000 share order priced 
above $5.00 displays 10,000 shares, and is then partially canceled in 
the amount of 6,000 shares, the remaining 4,000 shares will not be 
eligible for the block rebate and would receive the regular rebate when 
traded. Finally, if a 10,000 share order priced above $5.00 displays 
10,000 shares, and is then partially executed in the amount of 2,000 
shares, the executed 2,000 shares receive the block rebate, and the 
remaining 8,000 shares are still eligible for the block rebate. 
However, if the client then cancels 6,000 shares, the remaining 2,000 
shares are not eligible for the block rebate and will receive the 
regular rebate when traded. DMMs will receive a block rebate of $0.0036 
per share in Nasdaq securities traded pursuant to unlisted trading 
privileges for executions of the displayed portions of s-Quotes that 
provide liquidity and display 5,000 shares or more at the time of 
execution with a trading price of at least $5.00 per share.
    Additionally, the Exchange proposes to amend its 2010 Price List 
for equities to assess monthly fees for the use of all ports that 
provide connectivity to its equity trading systems. A number of other 
markets already charge such fees, but the Exchange has not previously 
done so.
    The level of activity with respect to a particular port will not 
affect the assessment of monthly fees, so even if a particular port 
that is available to a participant is not used, the participant will 
still be billed for that port. The monthly fee for ports will be $100 
per pair per month up to five pairs, then $500 for each additional five 
pairs. For example, the fee for seven pairs of ports will be $1,000 per 
month. Billing for ports will be based on the number of ports on the 
third business day prior to the end of the month.
    In its table of credits applicable to SLPs, the Exchange is 
modifying language referencing the SLP quoting requirement to reflect a 
recent rule filing that changed the standard from 3% to 5% of the 
regular trading day in any calendar month in order to receive a 
financial rebate.\3\
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    \3\ See Securities Exchange Act Release No. 62792 (August 30, 
2010), 75 FR 54407 (September 7, 2010) (File No. SR-NYSEAmex-2010-
85).
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    These changes are intended to be effective immediately for all 
transactions beginning October 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 Exchange believes 
that the proposal does not constitute an inequitable allocation of 
fees, as all similarly situated member organizations will be charged 
the same amount and access to the Exchange's market is offered on fair 
and non-discriminatory terms.
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    \4\ 15 U.S.C. 78f(b).
    \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.

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 Amex.
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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 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.

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-NYSEAmex-2010-97 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-NYSEAmex-2010-97. 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 website 
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

[[Page 64370]]

submissions. You should submit only information that you wish to make 
available publicly. All submissions should refer to File Number SR-
NYSEAmex-2010-97 and should be submitted on or before November 9, 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. 2010-26109 Filed 10-18-10; 8:45 am]
BILLING CODE 8011-01-P