Document ID: SEC-2011-0249-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NYSE Amex LLC
Posted Date: 2011-02-25T05:00Z

[Federal Register: February 25, 2011 (Volume 76, Number 38)]
[Notices]               
[Page 10633-10634]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr25fe11-90]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-63935; File No. SR-NYSEAMEX-2011-07]

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

February 18, 2011.
    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 February 14, 2011, 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, 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 amend its 2011 Price List for equities 
(``Price List'') by revising the description of the Risk Management 
Gateway (``RMG'') fee to clarify that the charge is determined on the 
basis of the capacity of the end user's connection in inbound messages 
per second, rather than the actual number of inbound messages. The text 
of the proposed rule change is available at the Exchange, the 
Commission's Public Reference Room, http://www.sec.gov, 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 the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to amend its Price List for equities by 
revising the description of the RMG fee to clarify that the charge is 
determined on the basis of the capacity of the end user's connection in 
inbound messages per second, rather than the actual number of inbound 
messages.
    On February 12, 2009, the Exchange filed a proposed rule change 
with the Commission that established the fee for its RMG service to 
facilitate the ability of Sponsoring Member Organizations to monitor 
and oversee the sponsored access activity of their Sponsored 
Participants.\4\ In the Original RMG Fee Filing, the Exchange 
established a fee of $3,000 per month for the first ``Connection'' plus 
$1,000 per month for each additional ``Connection.'' A ``Connection'' 
was defined as up to 1,000 messages per second inbound, regardless of 
the connection's actual capacity.\5\ Consequently, if a particular end 
user's connection has the capacity to support 3,000 messages per second 
inbound, that end user's connection will be deemed to be three (3) 
Connections and the charge will be $5,000 per month.
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    \4\ See Securities Exchange Act Release No. 59429 (February 20, 
2009), 74 FR 9016 (February 27, 2009) (File No. SR-NYSEALTR-2009-12) 
(the ``Original RMG Fee Filing'').
    \5\ Id.
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    Although it is clear from the Original RMG Fee Filing that the key 
variable in determining an end user's RMG fee is the capacity in 
messages per second inbound that the end user's connection will support 
(i.e., the number of Connections), the descriptive language that was 
added to the Price List at that time was inartfully worded and could be 
misinterpreted as basing the monthly RMG fee on the actual number of 
inbound messages. Consequently, the Exchange is proposing to modify the 
descriptive language for the RMG fee in the Price List to clarify that 
the fee is based on message capacity. There will be no change to the 
pricing itself or the basis on which it is currently calculated.
    The Exchange notes that NYSE Arca, Inc. (``NYSE Arca''), in a rule 
filing with the Commission on September 4, 2009,\6\ established a fee 
for its RMG service that is exactly the same as the Exchange's RMG fee, 
including the computation of the fee based on message capacity. In the 
NYSE Arca RMG Fee Filing, the descriptive language that was added to 
the NYSE Arca Fee Schedule describes much more clearly and 
unambiguously the basis on which the RMG fee is calculated, and the 
Exchange proposes to replace the current descriptive language in its 
Price List with the corresponding language from the NYSE Arca Fee 
Schedule.
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    \6\ See Securities Exchange Act Release No. 60664 (September 14, 
2009), 74 FR 48110 (September 21, 2009) (File No. SR-NYSEArca-2009-
81) (the ``NYSE Arca RMG Fee Filing'').
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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''),\7\ in general, and Section 6(b)(4) of the Act,\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 
fees, since there will be no change to the current RMG fee which has 
been in effect since February 2009, or how it is calculated, only to 
the description of the fee for the purposes

[[Page 10634]]

of adding clarity regarding the basis and calculation of the fee.
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    \7\ 15 U.S.C. 78f.
    \8\ 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) \9\ of the Act and subparagraph (f)(2) of Rule 19b-
4 \10\ thereunder, because it establishes a due, fee, or other charge 
imposed by NYSE Amex.
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    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 17 CFR 240.19b-4(f)(2).
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    At any time within 60 days of the filing of such 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-2011-07 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-2011-07. 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 
publicly available. All submissions should refer to File Number SR-
NYSEAmex-2011-07 and should be submitted on or before March 18, 2011.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(12).

Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-4227 Filed 2-24-11; 8:45 am]
BILLING CODE 8011-01-P