Document ID: SEC-2010-0272-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: New York Stock Exchange LLC
Posted Date: 2010-02-23T05:00Z

[Federal Register Volume 75, Number 35 (Tuesday, February 23, 2010)]
[Notices]
[Pages 8163-8164]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-3466]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-61520; File No. SR-NYSE-2010-06]

Self-Regulatory Organizations; New York Stock Exchange LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
Extending the Waiver of all Transaction Fees for Shares Executed on the 
NYSE MatchPoint\SM\ System

February 16, 2010.
    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 January 29, 2010, 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 extend the waiver of all transaction fees 
for shares executed on the NYSE MatchPoint\SM\ (``NYSE MatchPoint'' or 
``MatchPoint'') system effective February 1, 2010 through March 31, 
2010. The text of the proposed rule change is available at the 
Exchange, the Commission's Public Reference Room, 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 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to extend the waiver of all transaction fees 
for shares executed on the MatchPoint system, which will be effective 
from February 1, 2010 through March 31, 2010. The NYSE 2010 Price List 
will reflect this extension of the fee waiver.
Background
    On January 7, 2009, the Exchange filed with the Securities and 
Exchange Commission (``Commission'' or ``SEC'') a proposed rule change 
to adopt a temporary equity transaction fee for shares executed on the 
NYSE MatchPoint system, effective until February 28, 2009.\4\ The 
temporary equity transaction fee was extended numerous times since the 
original filing \5\ and it was in effect until January 7, 2010. On 
January 7, 2010, the Exchange proposed a transaction fee holiday 
waiving all MatchPoint transaction fees under the temporary equity 
transaction fee schedule until January 29, 2010 (``transaction fee 
waiver'').\6\ Each such filing was effective upon filing pursuant to 
Section 19(b)(3)(A) \7\ of the Act and subparagraph (f)(2) of Rule 19b-
4.\8\
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    \4\ See Securities Exchange Act Release No. 59229 (January 12, 
2009) 74 FR 3119 (January 16, 2009) (SR-NYSE-2009-01).
    \5\ See Securities Exchange Act Release No. 59491 (March 3, 
2009) 74 FR 10107 (March 9, 2009) (SR-NYSE-2009-20); see Securities 
Exchange Act Release No. 59864 (May 5, 2009) 74 FR 22194 (May 12, 
2009) (SR-NYSE-2009-44); see Securities Exchange Act Release No. 
60278 (July 10, 2009) 74 FR 34615 (July 16, 2009) (SR-NYSE-2009-67); 
see Securities Exchange Act Release No. 60439 (August 5, 2009) 74 FR 
40270 (August 11, 2009) (SR-NYSE-2009-78) and see also Securities 
Exchange Act Release No. 60949 (November 6, 2009) 74 FR 58665 
(November 13, 2009) (SR-NYSE-2009-110).
    \6\ See Securities Exchange Act Release No. 61350 (January 14, 
2010) 75 FR 3767 (January 22, 2010) (SR-NYSE-2010-01).
    \7\ 15 U.S.C. 78s(b)(3)(A).
    \8\ 17 CFR 240.19b-4(f)(2).
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    The Exchange believes that an extension of the transaction fee 
waiver will continue to induce users to enter more single-sided volume 
\9\ into the MatchPoint system, which benefits all participants in 
MatchPoint, since it increases the likelihood of a match during the 
matching sessions (i.e., intra-day and after hours matching sessions). 
The transaction fee waiver will apply to all Exchange members that 
access MatchPoint. Through this fee filing, the Exchange is seeking to 
extend the temporary transaction fee waiver from February 1, 2010 
through March 31, 2010.
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    \9\ Executions in the MatchPoint system occur when buy and sell 
interest in a security is entered on a matched basis (both buy and 
sell sides submitted together) or when interest submitted in the 
system by one user matches against contra side interest submitted by 
another user.
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    It is intended that new MatchPoint transaction fees will be in 
effect on or before April 1, 2010, after the transaction fee waiver 
terminates. The new transaction fees will also provide incentives for 
adding volume to the MatchPoint system.
2. Statutory Basis
    The basis under the Securities Exchange Act of 1934 (the ``Act'') 
\10\ for the proposed rule change is the requirement under Section 
6(b)(4) that an exchange have rules that 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 an 
extension of the fee waiver for all MatchPoint executions is reasonable 
in that it provides a significant incentive for users to add volume 
into the MatchPoint system. Adding volume to the MatchPoint system will 
increase a user's likelihood of obtaining an execution. Increased 
volume and trading activity will improve the overall

[[Page 8164]]

market for customers. The transaction fee waiver is also designed to 
make the system more competitive, which will further improve the 
quality of the market and benefit customers. Finally, the transaction 
fee waiver is equitable because it is available to all Exchange members 
that access the MatchPoint system, and it applies to all MatchPoint 
executions. The extended fee waiver will be in effect from February 1, 
2010 until March 31, 2010.
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    \10\ 15 U.S.C. 78a.
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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) \11\ of the Act and subparagraph (f)(2) of Rule 
19b-4 \12\ thereunder, because it establishes a due, fee, or other 
charge imposed by the NYSE.
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    \11\ 15 U.S.C. 78s(b)(3)(A).
    \12\ 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-2010-06 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-2010-06. 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 the 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 available publicly. All 
submissions should refer to File Number SR-NYSE-2010-06 and should be 
submitted on or before March 16, 2010.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\13\
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    \13\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-3466 Filed 2-22-10; 8:45 am]
BILLING CODE 8011-01-P