Document ID: SEC-2011-0248-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: New York Stock Exchange LLC
Posted Date: 2011-02-25T05:00Z

[Federal Register: February 25, 2011 (Volume 76, Number 38)]
[Notices]               
[Page 10631-10633]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr25fe11-89]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-63934; File No. SR-NYSE-2011-04]

 
Self-Regulatory Organizations; New York Stock Exchange 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, 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 amend its 2011 Price List (``Price List'') 
for equity

[[Page 10632]]

transactions 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 equity 
transactions 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. 59430 (February 20, 
2009), 74 FR 9014 (February 27, 2009) (File No. SR-NYSE-2009-15) 
(the ``Original RMG Fee Filing'').
    \5\ Original RMG Fee Filing, 74 FR at 9015.
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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 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 the NYSE.
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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-NYSE-2011-04 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-2011-04. 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

[[Page 10633]]

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 website 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-NYSE-2011-04 and should be submitted on 
or before March 18, 2011.
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    \11\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-4226 Filed 2-24-11; 8:45 am]
BILLING CODE 8011-01-P