Document ID: SEC-2010-0121-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: New York Stock Exchange LLC
Posted Date: 2010-01-22T05:00Z

[Federal Register: January 22, 2010 (Volume 75, Number 14)]
[Notices]               
[Page 3767-3768]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr22ja10-91]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-61350; File No. SR-NYSE-2010-01]

 
Self-Regulatory Organizations; New York Stock Exchange LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
Waiving All Transaction Fees for Shares Executed on the NYSE 
MatchPoint\SM\ System Until January 29, 2010

January 14, 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 January 7, 2010, New York Stock Exchange LLC (``NYSE'' 
or the ``Exchange'') filed with the Securities and Exchange Commission 
(the ``Commission'') the proposed rule change as described in Items I, 
II, and III below, which Items have been prepared by the self-
regulatory organization. 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\ 15 U.S.C. 78a.
    \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 waive all transaction fees for shares 
executed on the NYSE MatchPoint\SM\ (``NYSE MatchPoint'' or 
``MatchPoint'') system, effective upon filing this rule change with the 
Securities and Exchange Commission (``SEC'' or ``Commission'') until 
January 29, 2010. The text of the proposed rule change is available at 
the Exchange, the Commission's Public Reference Room, and http://
www.nyse.com.

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 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to amend the NYSE's 2010 Price List by 
waiving all transaction fees for shares executed on the NYSE MatchPoint 
system, which will be effective upon filing this rule change with the 
Commission until January 29, 2010. The Exchange is also eliminating the 
current temporary equity transaction fee for shares executed on 
MatchPoint, which has been in effect since January 2009.
Background
    On January 7, 2009, the Exchange filed with the Securities and 
Exchange Commission a proposed rule change to adopt a temporary equity 
transaction fee for shares executed on the NYSE MatchPoint system, 
effective until February 28, 2009.\4\ This temporary equity transaction 
fee has been extended numerous times since the original filing and is 
currently in effect until January 31, 2010.\5\ Each such filing was 
effective upon filing pursuant to Section 19(b)(3)(A) \6\ of the Act 
and subparagraph (f)(2) of Rule 19b-4.\7\
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    \4\ See Securities Exchange Act Release No. 59229 (January 12, 
2009) 74 FR 3119 (January 16, 2009) (SR-NYSE-2009-01).
    \5\ See Securities Exchange Act Release No. 59491 (March 3, 
2009) 74 FR 10107 (March 9, 2009) (SR-NYSE-2009-20); see Securities 
Exchange Act Release No. 59864 (May 5, 2009) 74 FR 22194 (May 12, 
2009) (SR-NYSE-2009-44); see Securities Exchange Act Release No. 
60278 (July 10, 2009) 74 FR 34615 (July 16, 2009) (SR-NYSE-2009-67); 
see Securities Exchange Act Release No. 60439 (August 5, 2009) 74 FR 
40270 (August 11, 2009) (SR-NYSE-2009-78) and see also Securities 
Exchange Act Release No. 60949 (November 6, 2009) 74 FR 58665 
(November 13, 2009) (SR-NYSE-2009-110).
    \6\ 15 U.S.C. 78s(b)(3)(A).
    \7\ 17 CFR 240.19b-4(f)(2).
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    The current temporary equity transaction fee is a scaled fee for 
MatchPoint users based on the average daily volume of shares executed 
during a calendar month through the MatchPoint system as follows:

------------------------------------------------------------------------
                                                             Rate (per
         Average daily volume of shares executed              share)
------------------------------------------------------------------------
50,000 shares or less...................................          $.0015
Over 50,000 to 499,999..................................           .0010
500,000 and greater.....................................           .0005
------------------------------------------------------------------------

The Exchange believes that a temporary waiver of the current 
transaction fees for all executions will induce users to enter more 
single-sided volume \8\ into the MatchPoint system, which benefits all 
participants in MatchPoint, since it increases the likelihood of a 
match during the matching sessions (i.e., intra-day and after hours 
matching sessions). This waiver of transaction fees will apply to all 
Exchange members that access MatchPoint.
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    \8\ Executions in the MatchPoint system occur when buy and sell 
interest in a security is entered on a matched basis (both buy and 
sell sides submitted together) or when interest submitted in the 
system by one user matches against contra side interest submitted by 
another user.
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    It is intended that new MatchPoint transaction fees will be in 
effect on February 1, 2010, after the proposed fee waiver terminates. 
The new transaction fees will also provide incentives for adding volume 
to the MatchPoint system.
2. Statutory Basis
    The basis under the Securities Exchange Act of 1934 (the ``Act'') 
\9\ for the proposed rule change is the requirement under Section 
6(b)(4) that an exchange have rules that provide for the equitable 
allocation of reasonable dues, fees and other charges among its members 
and other persons using its facilities. The Exchange believes the fee 
waiver for all MatchPoint executions is reasonable in that it provides 
a significant incentive for users to add volume into the MatchPoint 
system. The fee waiver will be in effect upon filing the rule change 
with the Commission until January 29, 2010. Adding volume to the 
MatchPoint system will increase a user's likelihood of obtaining an 
execution. Increased volume and trading activity will improve the 
overall market for customers. The proposed transaction fee waiver is 
also designed to make the system more competitive, which will further 
improve the quality of the market and benefit customers. Finally, the 
transaction fee waiver is equitable because it is available to all 
Exchange members that access the MatchPoint system, and it applies to 
all MatchPoint executions.
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    \9\ 15 U.S.C. 78a.
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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

[[Page 3768]]

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) \10\ of the Act and subparagraph (f)(2) of Rule 
19b-4 \11\ thereunder, because it establishes a due, fee, or other 
charge imposed by the NYSE.
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    \10\ 15 U.S.C. 78s(b)(3)(A).
    \11\ 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-2010-01 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-2010-01. 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, 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-NYSE-2010-01 and should be 
submitted on or before February 12, 2010.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12\
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    \12\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-1141 Filed 1-21-10; 8:45 am]
BILLING CODE 8011-01-P