Document ID: SEC-2009-1760-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Exclude Early Closing Days From Certain ADV Calculations
Posted Date: 2009-12-14T05:00Z

[Federal Register: December 14, 2009 (Volume 74, Number 238)]
[Notices]               
[Page 66193-66194]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr14de09-108]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-61130; File No. SR-NYSE-2009-118]

 
Self-Regulatory Organizations; New York Stock Exchange LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Exclude Early Closing Days From Certain ADV Calculations

December 8, 2009.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(the ``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given 
that on December 1, 2009, 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. 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\ 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 price list to provide that data 
from days on which the Exchange closes early will not be included in 
calculations of average daily trading volume for the applicable month 
in determining member organizations' qualification for pricing tiers 
and qualification of Supplemental Liquidity Providers (``SLPs'') for 
liquidity credits. The text of the proposed rule change is available on 
the Exchange's Web site (http://www.nyse.com), 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 NYSE charges member organizations a lower transaction fee per 
share when they provide liquidity with respect to specified levels of 
average daily trading volume (``ADV'') in the applicable month. In 
addition, the Exchange pays credits to SLPs for providing liquidity to 
the Exchange and, in doing so, pays higher credits to SLPs that provide 
liquidity in excess of specified levels of ADV for the applicable 
month. The Exchange proposes to exclude trading volume data from those 
days on which it closes early from calculations of ADV used in 
determining member organizations' and SLPs' qualification for more 
favorable transaction pricing and liquidity credit tiers. The Exchange 
closes early on a small number of trading days in the course of the 
year, which are generally the trading days before or after a public 
holiday (e.g., Christmas Eve and the day after Thanksgiving). As the 
trading on those days occurs over a shorter time period and is 
typically very light, the Exchange believes that including it in ADV 
calculations distorts ADV for the applicable month. Consequently, the 
Exchange believes it is appropriate to exclude days on which it closes 
early from ADV calculations. The Exchange notes that it will continue 
to include early closing days in ADV calculations when determining 
whether securities are ``More Active Securities'' or ``Less Active 
Securities'' for purposes of determining which rebate tier Designated 
Market Makers qualify for when adding liquidity to the Exchange.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with

[[Page 66194]]

the provisions of Section 6 \3\ of the Act in general and Section 
6(b)(4) of the Act \4\ 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 ADV will be calculated 
on the same basis for purposes of determining the qualification of all 
member organizations for more favorable transaction pricing and 
liquidity credit tiers.
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    \3\ 15 U.S.C. 78f.
    \4\ 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 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.

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) \5\ of the Act and Rule 19b-4(f)(2) \6\ thereunder.
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    \5\ 15 U.S.C. 78s(b)(3)(A).
    \6\ 17 CFR 240.19b-4(f)(2).
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    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.

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 an e-mail to rule-comments@sec.gov. Please include 
File Number SR-NYSE-2009-118 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-2009-118. 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,\7\ 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 inspection and 
copying in the Commission's Public Reference Section, 100 F Street, 
NE., Washington, DC 20549-1090, on official business days between the 
hours of 10 a.m. and 3 p.m. Copies of such filing will also 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-2009-118 and should be submitted on or before January 4, 2010.
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    \7\ The text of the proposed rule change is available at the 
Commission's Web site (http://www.sec.gov).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\8\
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    \8\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-29632 Filed 12-11-09; 8:45 am]

BILLING CODE 8011-01-P