Document ID: SEC-2010-0266-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NYSE Arca, Inc.
Posted Date: 2010-02-22T05:00Z

[Federal Register: February 22, 2010 (Volume 75, Number 34)]
[Notices]               
[Page 7644-7646]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr22fe10-97]                         

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-61512; File No. SR-NYSEArca-2010-05]

 
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change Amending Its Fee 
Schedule

February 12, 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 28, 2010, NYSE Arca, Inc. (``NYSE Arca'' or the 
``Exchange'') through its wholly-owned subsidiary NYSE Arca Equities, 
Inc. (``NYSE Arca Equities''), 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. NYSE Arca filed the proposal pursuant to 
Section 19(b)(3)(A) \4\ of the Act and Rule 19b-4(f)(2) \5\ thereunder. 
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.
    \3\ 17 CFR 240.19b-4.
    \4\ 15 U.S.C. 78s(b)(3)(A).
    \5\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

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

    The Exchange proposes to amend its Schedule of Fees and Charges for 
Exchange Services (the ``Schedule''). While changes to the Schedule 
pursuant to this proposal will be effective upon filing, the changes 
will become operative on February 1, 2010. The text of the proposed 
rule change is available on the Exchange's Web site at http://
www.nyse.com, on the Commission's Web site at http://www.sec.gov, at 
the Exchange, and at the Commission's Public Reference Room. A copy of 
this filing is available on the Exchange's Web site at http://
www.nyse.com, at the Exchange's principal office and at the 
Commission's Public Reference Room.

[[Page 7645]]

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 make multiple changes to its fee schedule 
effective February 1, 2010. A more detailed description of the proposed 
changes follows.
    Super Tier:
    The Exchange proposes to introduce a new Super Tier. For ETP 
Holders and Market Makers with an average daily share volume (``ADV'') 
per month of more than 70 million shares added and more than 120 
million total shares (added, removed, and routed) in all U.S. 
securities, the pricing structure for trading in Tape A and Tape C 
securities will be a rebate of $0.0030 per share for adding liquidity 
and a fee of $0.0028 per share for removing liquidity. All other fees 
within the Super Tier will match the Tier 1 rates effective on February 
1, 2010.
    Tier 1:
    The Exchange also proposes changes to the Tier 1 rates and volume 
levels. Currently Tier 1 rates are applied to ETP Holders and Market 
Makers that provide liquidity on the Exchange with an ADV per month of 
greater than 25 million shares and transact a total ADV per month of 
greater than 80 million shares (includes both adding and removing). 
Under this proposal, Tier 1 rates will be applied to ETP Holders and 
Market Makers that provide liquidity on the Exchange with an ADV per 
month of greater than 60 million shares. The Exchange proposes to 
eliminate the total share requirement.
    Currently, the rebate for adding liquidity in Tape A and Tape C 
securities in Tier 1 is set at $0.0027 per share, and the fee for 
removing liquidity is set at $0.0027 per share. Under this proposal the 
rebate for adding liquidity in Tape A and Tape C securities will be 
$0.0029 per share and the fee for removing liquidity will be $0.0029 
per share. The Exchange also proposes to change the rebate for PO and 
PO+ orders routed to Amex that provide liquidity to the NYSE Amex Book 
to $0.0015 (currently $0.0030 per share). All other Tier 1 rates remain 
the same.
    Tier 2:
    The Exchange also proposes changes to the Tier 2 rates and volume 
levels. Currently Tier 2 rates are applied to ETP Holders and Market 
Makers that provide liquidity on the Exchange with an ADV per month of 
greater than 15 million shares and transact a total ADV per month of 
greater than 50 million shares. Under this proposal, Tier 2 rates will 
be applied to ETP Holders and Market Makers that provide liquidity on 
the Exchange with an ADV per month of greater than 25 million shares. 
The Exchange proposes to eliminate the total share requirement.
    Currently, the rebate for adding liquidity in Tape A and Tape C 
securities in Tier 2 is set at $0.0026 per share, and the fee for 
removing liquidity is set at $0.0028 per share. Under this proposal the 
rebate for adding liquidity in Tape A and Tape C securities will be 
$0.0029 per share and the fee for removing liquidity will be $0.0030 
per share. The Exchange also proposes to change the fee for orders 
routed to away markets other than the NYSE in Tape A and Tape C 
securities to $0.0030 (currently $0.0029 per share). The Exchange is 
also changing the rebate for PO and PO+ orders routed to Amex that 
provide liquidity to the NYSE Amex Book to $0.0015 (currently $0.0030 
per share). All other Tier 2 rates remain the same.
    Provide Tier:
    The Exchange proposes to remove the current Provide Tier from the 
Schedule.
    Basic Rates:
    Finally, the Exchange proposes to change the Basic Rate pricing. 
Currently, the rebate for adding liquidity in Tape A and Tape C 
securities is set at $0.0023 per share, and the fee for removing 
liquidity is set at $0.0030 per share. Under this proposal the rebate 
for adding liquidity in Tape A and Tape C securities will be $0.0021 
per share and the fee for removing liquidity will remain $0.0030 per 
share. The Exchange also proposes to change the rebate for PO and PO+ 
orders routed to Amex that provide liquidity to the NYSE Amex Book to 
$0.0015 (currently $0.0030 per share). All other Basic Rates will 
remain the same.
    The proposed changes to the Schedule are part of the Exchange's 
continued effort to attract and enhance participation on the Exchange, 
by offering attractive rates and rebates with volume-based incentives. 
The Exchange believes the proposed fees are reasonable and equitable in 
that they apply uniformly to all ETP Holders. The proposed changes will 
become operative on February 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''),\6\ in general, and Section 6(b)(4) of the Act,\7\ 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 proposed changes to 
the Schedule are part of the Exchange's continued effort to attract and 
enhance participation on the Exchange, by offering attractive rates and 
rebates with volume-based incentives. The proposed changes to the 
Schedule are equitable in that they apply uniformly to all Users.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78f(b).
    \7\ 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.

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) \8\ of the Act and subparagraph (f)(2) of Rule 19b-
4 \9\ thereunder, because it establishes a due, fee, or other charge 
imposed by NYSE Arca on its members.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

    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.

[[Page 7646]]

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-NYSEArca-2010-05 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-NYSEArca-2010-05. 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-
NYSEArca-2010-05 and should be submitted on or before March 15, 2010.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
---------------------------------------------------------------------------

    \10\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-3331 Filed 2-19-10; 8:45 am]
BILLING CODE 8011-01-P