Document ID: SEC-2009-0312-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: New York Stock Exchange LLC
Posted Date: 2009-03-10T04:00Z

[Federal Register: March 10, 2009 (Volume 74, Number 45)]
[Notices]               
[Page 10328-10330]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr10mr09-114]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-59483; File No. SR-NYSE-2009-22]

 
Self-Regulatory Organizations; New York Stock Exchange LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Modify Certain Equity Transaction Fees and Rebates

March 2, 2009.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that 
on February 27, 2009, the New York Stock Exchange LLC (``NYSE'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``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 make a number of changes to its schedule 
of equity transaction fees and rebates, with effect from March 1, 2009. 
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 Exchange 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 Exchange has prepared summaries, set forth in 
Sections A, B, and C below, of

[[Page 10329]]

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 Exchange proposes to make a number of changes to its schedule 
of equity transaction fees and rebates, with effect from March 1, 2009.
    The following are the proposed changes:
     Currently, the Exchange does not charge any fees to 
customers adding liquidity to the order book. Customers who execute 
orders that add liquidity (both displayed and non-displayed) will now 
receive a rebate of $0.0010 per share. Transactions in stocks with a 
per share price less than $1.00 will not qualify for this rebate, but 
will continue to be free of charge.\3\
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    \3\ See e-mail from John Carey, Chief Counsel--U.S. Equities, 
NYSE Euronext, to David Liu, Assistant Director, Division of Trading 
and Markets, Commission, dated March 2, 2009.
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     Currently floor broker orders adding liquidity to the book 
receive a $0.0004 per share rebate. This rebate will increase from 
$0.0004 per share to $0.0012 per share.
     Currently the fee per share for customers (except for 
designated market makers (``DMMs'')) taking liquidity from the order 
book is $0.0008 per share (subject to a cap of $120 per transaction). 
This fee will increase from $0.0008 per share to $0.0018 per share. For 
trades in stocks with a per share price less than $1.00, the fee will 
equal the lesser of (i) 0.3% of the total dollar value of the 
transaction and (ii) $0.0018 per share.
     The fee for market-at-close and limit-at-close orders 
(except for DMMs) is currently $0.0004 per share to both sides. This 
fee will increase from $0.0004 per share to $0.0005 per share (subject 
to a cap of $120 per transaction). For trades in stocks with a per 
share price less than $1.00, the fee will equal the lesser of (i) 0.30% 
of the total dollar value of the transaction and (ii) $0.0005 per 
share.
     The fee for non-electronic agency transactions of less 
than 10,000 shares between floor brokers in the crowd is currently 
$0.0004 per share to both sides. These transactions will now be free of 
charge.
     Currently the Exchange charges a fee of $0.0004 per share 
in all odd lot transactions (including the odd lot portions of partial 
round lots). This fee will increase from $0.0004 per share to $0.0005 
per share (subject to a cap of $120 per transaction). For trades in 
stocks with a per share price less than $1.00, the fee will equal the 
lesser of (i) 0.3% of the total dollar value of the transaction and 
(ii) $0.0005 per share.
     DMMs currently pay no fee when taking liquidity from the 
order book. Going forward, DMMs will be charged $0.0010 when taking 
liquidity. This fee will offset the $0.0010 per share rebate the 
Exchange will pay the customer providing liquidity on the contra side 
of the transaction.
     DMMs currently receive a rebate per share of $0.0004 for 
executions at the close. This rebate will be increased from $0.0004 per 
share to $0.0005 per share.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the objectives of Section 6 \4\ of the Act in general and furthers 
the objectives of Section 6(b)(4) \5\ 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 it 
provides the DMMs appropriate incentives to act as liquidity providers 
and supports them in performing their central function in the 
Exchange's market model.
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    \4\ 15 U.S.C. 78f.
    \5\ 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 proposed rule change is effective upon filing 
pursuant to Section 19(b)(3)(A)(ii) of the Act \6\ and Rule 19b-4(f)(2) 
thereunder.\7\
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    \6\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \7\ 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 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-2009-22 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-2009-22. 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 inspection and 
copying in the Commission's Public Reference Room, 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 No. SR-NYSE-
2009-22 and should be submitted on or before March 31, 2009.

[[Page 10330]]

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\8\
Florence E. Harmon,
Deputy Secretary.
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    \8\ 17 CFR 200.30-3(a)(12).
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 [FR Doc. E9-4960 Filed 3-9-09; 8:45 am]

BILLING CODE 8011-01-P