Document ID: SEC-2012-1230-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NYSE MKT LLC
Posted Date: 2012-07-31T04:00Z

[Federal Register Volume 77, Number 147 (Tuesday, July 31, 2012)]
[Notices]
[Pages 45392-45394]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-18655]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-67505; File No. SR-NYSEMKT-2012-24]

Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and 
Immediate Effectiveness of Proposed Rule Change Deleting Existing Rule 
Text Found in Rule 923NY(d)(1) to (4) Concerning the Number of ATP's 
Required by an NYSE Amex Options Market Maker To Quote on the Exchange 
and Move It to the Fee Schedule

July 26, 2012.
    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 July 12, 2012, NYSE MKT LLC (the ``Exchange'' or ``NYSE 
MKT'') 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 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 delete existing rule text found in Rule 
923NY(d)(1) to (4) concerning the number of ATP's required by an NYSE 
Amex Options Market Maker to quote on the Exchange and move it to the 
Fee Schedule. The text of the proposed rule change is available on the 
Exchange's Web site at www.nyse.com, at the principal office of the 
Exchange, 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 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 delete Rule 923NY(d)(1) to (4) and insert 
language referencing the Exchange's Fee Schedule. The Exchange further 
proposes to move the content of Rule 923NY(d)(1) to (4) to the Fee 
Schedule, without any substantive changes.
    With one exception, the Fee Schedule sets forth the fees and 
charges that participants on the Exchange can be expected to pay. 
However, even though it implicates a fee issue, ATP Holders acting as 
NYSE Amex Options Market Makers need to refer to Rule 923NY(d)(1) to 
(4) to ascertain the number of ATP's they are required to have based on 
the number of option products that they have in their assignment. The 
Exchange believes that this information more appropriately belongs in 
the Fee Schedule so that all participants can have the same source to 
understand the basis for fees.\4\ In

[[Page 45393]]

particular, because the Exchange charges a fee for each ATP assigned to 
an ATP Holder, the rule text identifies the fee structure by setting 
forth the number of trading permits that are required according to the 
number of options issues including [sic] in their appointment.
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    \4\ See NASDAQ OMX PHLX fees charged to Streaming Quote Traders 
and Remote Streaming Quote traders in Section VI ``Membership Fees'' 
in their fee schedule found here: http://nasdaqomxphlx.cchwallstreet.com/NASDAQOMXPHLXTools/PlatformViewer.asp?selectednode=chp%5F1%5F4%5F1&manual=%2Fnasdaqomxphlx%2Fphlx%2Fphlx%2Drulesbrd%2F.
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    Rule 923NY(d)(1) to (4) sets forth the trading appointments of 
participants acting as Market Makers on the Exchange. They are as 
follows:
    (1) Market Makers with 1 ATP may have up to 100 option issues 
included in their appointment.
    (2) Market Makers with 2 ATPs may have up to 250 option issues 
included in their electronic appointment.
    (3) Market Makers with 3 ATPs may have up to 750 option issues 
included in their appointment.
    (4) Market Makers with 4 ATPs may have all option issues traded on 
the Exchange included in their appointment.
    The Exchange proposes to delete the text found in bullets 1 to 4 
above, replace the rule text in 1 and re-number 5 to number 2. The 
proposed language for 1 is, ``Market Makers shall have the number of 
ATP's required under the Fee Schedule in order to have a trading 
appointment on the Exchange.''
    Concurrent with this change, the Exchange proposes to add a section 
to the Fee Schedule under the section entitled, ``NYSE AMEX OPTIONS 
GENERAL OPTIONS and TRADING PERMIT (ATP) FEES'', that will replicate 
the rule text deleted in Rules 923NY(d)(1) to (4). No change in the 
number of ATPs required by Market Makers is being made at this time.
    The Exchange proposes to make a non-substantive change when moving 
the rule text to the Fee Schedule by clarifying in the introduction 
text that all appointments are electronic appointments, and delete the 
term ``electronic'' in connection with the entry for Market Makers with 
2 ATPs.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the provisions of Section 6(b) \5\ of the Securities Exchange Act 
of 1934 (the ``Act''), in general, and Section 6(b)(5) \6\ of the Act, 
in particular, in that it is designed to prevent fraudulent and 
manipulative acts and practices, to promote just and equitable 
principles of trade, to foster cooperation and coordination with 
persons engaged in facilitating transactions in securities, and to 
remove impediments to and perfect the mechanism of a free and open 
market and a national market system. The Exchange believes that [sic] 
relocating the number of permits required of ATP Holders acting as 
Market Makers on the Exchange from within the rule text of Rules 
923NY(d)(1) through (4) to the Fee Schedule, the Exchange is making it 
easier and more transparent for participants to understand the basis 
for fees.
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    \5\ 15 U.S.C. 78f(b).
    \6\ 15 U.S.C. 78f(b)(4) [sic].
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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

    Because the foregoing proposed rule change does not: (i) 
Significantly affect the protection of investors or the public 
interest; (ii) impose any significant burden on competition; and (iii) 
become operative for 30 days from the date on which it was filed, or 
such shorter time as the Commission may designate, it has become 
effective pursuant to Section 19(b)(3)(A) of the Act \7\ and Rule 19b-
4(f)(6) thereunder.\8\
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    \7\ 15 U.S.C. 78s(b)(3)(A).
    \8\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) 
requires a self-regulatory organization to give the Commission 
written notice of its intent to file the proposed rule change at 
least five business days prior to the date of the filing of the 
proposed rule change, or such shorter time as designated by the 
Commission. The Exchange has satisfied this requirement.
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    A proposed rule change filed under Rule 19b-4(f)(6) \9\ normally 
does not become operative prior to 30 days after the date of the 
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\10\ the Commission 
may designate a shorter time if such action is consistent with the 
protection of investors and the public interest. The Exchange has asked 
the Commission to waive the 30-day operative delay so that the proposal 
may become operative immediately upon filing because the proposal is 
administrative in nature and simply moves fee-related text from the 
rules to the Fee Schedule, and because it will make it easier and more 
transparent for participants to understand the basis for these fees. 
The Commission believes that waiving the 30-day operative delay is 
consistent with the protection of investors and the public 
interest.\11\ Therefore, the Commission designates the proposed rule 
change to be operative upon filing with the Commission.
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    \9\ 17 CFR 240.19b-4(f)(6).
    \10\ 17 CFR 240.19b-4(f)(6)(iii).
    \11\ For purposes only of waiving the operative delay for this 
proposal, the Commission has considered the proposed rule's impact 
on efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
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    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. If the Commission 
takes such action, the Commission shall institute proceedings to 
determine whether the proposed rule should be approved or disapproved.

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 email to rule-comments@sec.gov. Please include 
File Number SR-NYSEMKT-2012-24 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-NYSEMKT-2012-24. This 
file number should be included on the subject line if email 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

[[Page 45394]]

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 20549-1090. Copies of 
the filing will also be available for inspection and copying at the 
Exchange's principal office and on its Internet Web site at 
www.nyse.com. 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-
NYSEMKT-2012-24 and should be submitted on or before August 21, 2012.

    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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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-18655 Filed 7-30-12; 8:45 am]
BILLING CODE 8011-01-P