Document ID: SEC-2010-1853-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NYSE Amex LLC
Posted Date: 2010-12-08T05:00Z

[Federal Register Volume 75, Number 235 (Wednesday, December 8, 2010)]
[Notices]
[Pages 76508-76509]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-30718]

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-63413; File No. SR-NYSEAmex-2010-112]

Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by NYSE Amex LLC Amending the 
Exchange Price List With Respect to Nasdaq Securities Traded Pursuant 
to Unlisted Trading Privileges

December 2, 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 November 30, 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.
---------------------------------------------------------------------------

    \1\ 15 U.S.C.78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

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 in Nasdaq securities traded 
pursuant to unlisted trading privileges and to change the minimum size 
requirements for larger displayed orders in trades above $5.00 to 
receive the enhanced rebate in lieu of the standard rebate for such 
securities. The amended pricing will become operative on December 1, 
2010. The text of the proposed rule change is available at the 
Exchange's principal office, at http://www.nyse.com, at the 
Commission's Public Reference Room, and on the Commission's Web site at 
http://www.sec.gov.

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 fees charged to market participants, Supplemental Liquidity 
Providers (``SLPs'') and Designated Market Makers (``DMMs'') for taking 
liquidity in 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 
$0.0023 per share for orders in Nasdaq securities traded pursuant to 
unlisted trading privileges that take liquidity. Under the proposal, 
the fee will be changed to $0.0027 per share for orders that take 
liquidity.
    In a rule filing on October 1, 2010,\3\ the Exchange adopted 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 
amount that would reduce the original displayed amount below 5,000 
shares. The Exchange proposes to reduce these minimum displayed size 
requirements from 5,000 shares to 2,000 shares.
---------------------------------------------------------------------------

    \3\ See Securities Exchange Act Release No. 63072 (October 8, 
2010), 75 FR 64368 (October 19, 2010) (File No. SR-NYSEAmex-2010-97) 
(the ``Block Rebate Filing'').
---------------------------------------------------------------------------

    In the Block Rebate Filing, the Exchange also adopted a block 
rebate for DMMs 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. The Exchange proposes to reduce this minimum displayed size 
requirement from 5,000 shares to 2,000 shares.
    These changes are intended to become operative for all transactions 
beginning December 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.
---------------------------------------------------------------------------

    \4\ 15 U.S.C. 78f(b).
    \5\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

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 76509]]

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 on its members by NYSE Amex.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78s(b)(3)(A).
    \7\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

    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-2010-112 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-2010-112. 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 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 
submissions. You should submit only information that you wish to make 
available publicly. All submissions should refer to File Number SR-
NYSEAmex-2010-112 and should be submitted on or before December 29, 
2010.

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

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

Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-30718 Filed 12-7-10; 8:45 am]
BILLING CODE 8011-01-P