Document ID: SEC-2010-0731-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: New York Stock Exchange LLC
Posted Date: 2010-05-18T04:00Z

[Federal Register: May 18, 2010 (Volume 75, Number 95)]
[Notices]               
[Page 27848-27850]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr18my10-135]                         

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-62082; File No. SR-NYSE-2010-34]

 
Self-Regulatory Organizations; New York Stock Exchange LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Amend the Exchange Price List

May 11, 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 April 30, 2010, New York Stock Exchange LLC (the ``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 Exchange.\4\ 
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\ 15 U.S.C. 78a et seq.
    \3\ 17 CFR 240.19b-4.
    \4\ See Email from John Carey, Chief Counsel, U.S. Equities, 
NYSE Euronext, to David Liu, Assistant Director, Nathan Saunders, 
Special Counsel, and Daniel Gien, Attorney, Division of Trading and 
Markets, Commission, dated May 6, 2010 (clarifying the language of 
note 6 below and making other minor technical changes to conform the 
description of the changes to the text of the proposed rule text).
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend certain of the fees and credits set 
forth in its 2010 Price List. The amended pricing will take effect on 
May 1, 2010.

[[Page 27849]]

The text of the proposed rule change is available on the Exchange's Web 
site (http://www.nyse.com), on the Commission's Web site at http://
www.sec.gov, 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 the following changes to its 2010 
Price List with effect from May 1, 2010:
     The rebate paid for executions in which the customer adds 
liquidity to the Exchange will increase from $0.0010 to $0.0013 per 
share.
     The rebate paid for executions of orders sent to the floor 
broker for representation on the NYSE when adding liquidity to the 
Exchange will increase from $0.0012 to $0.0015 per share.
     The equity per share charge when taking liquidity from the 
Exchange will increase from $0.0018 to $0.0021 per share.
     The equity per share charge (charged to both sides) for 
all odd lot transactions (including odd lot portions of partial round 
lots) will increase from $0.0018 to $0.0021 per share. A parallel 
change will be made to the odd lot transaction charges for securities 
with a per share trading price less than $1.00, which will now be 
subject to a fee equal to the lesser of (i) 0.3% of the transaction 
value or (ii) $0.0021 per share.
     Currently, the Exchange charges $0.0006 per share for all 
market at-the-close (``MOC'') and limit at-the-close (``LOC'') orders 
for all executions of orders from any member organization executing an 
average daily trading volume (``ADV'') on the NYSE in that month of at 
least 130 million shares, including (i) adding liquidity in an ADV of 
at least 30 million shares and (ii) an ADV of at least 15 million 
shares total in MOC and LOC orders. The Exchange is eliminating this 
separate pricing tier and will now charge $0.0007 per share for all MOC 
and LOC transactions, which is the price currently charged for all such 
transactions that do not qualify for the $0.0006 per share tier 
described in the previous sentence. A parallel change will be made to 
the transaction charges for MOC and LOC orders in securities with a per 
share stock price less than $1.00. All such transactions will now be 
subject to a fee equal to the lesser of (i) 0.3% of the transaction 
value or (ii) $0.0007 per share.
     Currently, the Exchange charges $0.0017 per share for 
executions of orders from any member organization executing an average 
daily trading volume (``ADV'') on the NYSE in that month of at least 
130 million shares, including (i) adding liquidity in an ADV of at 
least 30 million shares and (ii) an ADV of at least 15 million shares 
total in MOC and LOC orders. The Exchange is eliminating this separate 
pricing tier and will now charge the regular transaction fee for these 
transactions that applies to executions taking liquidity from the 
Exchange. Therefore, all transactions taking liquidity from the NYSE in 
securities with a per share stock price of $1.00 or more will be 
subject to a fee of $0.0021 per share and all such transactions in 
securities with a per share stock price less than $1.00 will be subject 
to a fee equal to the lesser of (i) 0.3% of the transaction value or 
(ii) $0.0021 per share.\5\
---------------------------------------------------------------------------

    \5\ Some superfluous language is also removed from this entry in 
the Price List and the same language is removed from the entry 
specifying the fee paid by DMMs when taking liquidity.
---------------------------------------------------------------------------

     The equity per share charge for designated market makers 
(``DMMs'') for transactions taking liquidity from the NYSE will be 
increased from $0.0010 per share to $0.0013 per share.
     The Exchange is modifying its schedule of liquidity 
rebates for supplemental liquidity providers (``SLPs'').\6\ SLPs will 
receive a credit of $0.0020 per share when they add liquidity to the 
NYSE in securities with a per share price of $1.00 or more, and the SLP 
(i) meets the 3% average or more quoting requirement in an assigned 
security pursuant to Rule 107B (the ``Quoting Requirement'') and (ii) 
adds liquidity of an ADV of more than 10 million shares in the 
applicable month. For all other transactions adding liquidity to the 
NYSE, SLPs will receive a rebate of $0.0013 per share.
---------------------------------------------------------------------------

    \6\ The Exchange currently has a three tier structure of rebates 
paid only to SLPs when the SLP provides liquidity to the NYSE and 
meets the requirements to benefit for the specific tier. The highest 
tier pays a credit of $0.0017 per share to SLPs when they add 
liquidity to the NYSE in securities with a per share price of $1.00 
or more, and the SLP (i) meets the Quoting Requirement and (ii) adds 
liquidity of an ADV of more than 250 million shares in the 
applicable month. The second-highest tier pays a credit of $0.0016 
per share to SLPs and applies to SLPs when they add liquidity to the 
NYSE in securities with a per share price of $1.00 or more, and the 
SLP (i) meets the Quoting Requirement and (ii) adds liquidity of an 
ADV of more than 100 million shares in the applicable month. The 
third-highest tier pays a credit of $0.0015 per share to SLPs and 
applies to SLPs when they add liquidity to the NYSE in securities 
with a per share price of $1.00 or more, and the SLP (i) meets the 
Quoting Requirement and (ii) adds liquidity of an ADV of more than 
10 million shares in the applicable month. SLPs adding liquidity in 
securities with a per share price of $1.00 or more, if the SLP does 
not qualify for any of the foregoing rebates, receive the same 
rebates as other market participants.
---------------------------------------------------------------------------

     SLPs currently receive a rebate of $0.0005 per share for 
executions of securities with a per share price of $1.00 or more at the 
close. This rebate will no longer be paid, although these transactions 
will continue to be free of charge.
     The Exchange is instituting a new $0.0001 per share fee 
for executions in Crossing Session II. This fee will be subject to a 
$50,000 per month cap per member organization.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the objectives of Section 6 \7\ of the Act in general and furthers 
the objectives of Section 6(b)(4)\8\ 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 
similarly situated member organizations will be charged the same 
schedule of fees and be entitled to receive the same rebates.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78f.
    \8\ 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 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.

[[Page 27850]]

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) \9\ of the Act and Rule 19b-4(f)(2) \10\ 
thereunder. 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.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views and 
arguments concerning the foregoing, including whether the proposed rule 
change, as amended, 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 e-mail to rule-comments@ Please include File Number 
SR-NYSE-2010-34 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-2010-34. 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 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-2010-34 and should be 
submitted on or before June 8, 2010.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
---------------------------------------------------------------------------

    \11\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Elizabeth M. Murphy,
Secretary.
[FR Doc. 2010-11809 Filed 5-17-10; 8:45 am]
BILLING CODE 8010-01-P