[Federal Register Volume 75, Number 9 (Thursday, January 14, 2010)]
[Notices]
[Pages 2176-2177]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-543]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-61309; File No. SR-NYSE-2009-133]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by New York Stock Exchange LLC To
Modify the Liquidity Credits Paid to Supplemental Liquidity Providers
January 7, 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 December 30, 2009, New York Stock Exchange LLC (the
``NYSE'' or the ``Exchange'') filed with the Securities and Exchange
Commission (the ``Commission'') the proposed rule changes 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 changes from interested persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 15 U.S.C. 78a et seq.
\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 schedule of credits paid to
Supplemental Liquidity Providers (``SLPs'') (i) to clarify that the
current credits paid to SLPs relate only to transactions in securities
with a trading price of $1.00 or more and (ii) to establish a liquidity
credit for transactions in securities with a trading
[[Page 2177]]
price of less than $1.00. 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 pays credits to SLPs for providing liquidity in
transactions in securities with a trading price of $1.00 or more. There
are several different tiers at which these credits are paid, based on
(i) whether the SLP has met the 3% average or more quoting requirement
(the ``Quoting Requirement'') in Rule 107B for the applicable security
and (ii) the amount of the SLPs average daily trading volume (``ADV'')
in the security in the applicable month. While the Exchange has always
applied its existing credits for SLPs only to transactions in
securities with a trading price of $1.00 or more, this is not apparent
on the face of the price list. Therefore, the Exchange proposes to
clarify the price list by amending it to specify that the current SLP
liquidity credits apply only to transactions in securities with a
trading price of $1.00 or more. In addition, the Exchange is adopting a
new $0.0005 per share credit which will be paid to SLPs when they add
liquidity in a security with a trading price of less than $1.00 with
respect to which they have met the Quoting Requirement for the
applicable month.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the provisions of Section 6 \4\ of the Act in general and Section
6(b)(4) of the Act \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 the liquidity provided
by SLPs is an important part of the NYSE market model and it is
therefore appropriate to structure credits to incent liquidity
provision by SLPs.
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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 rule change is effective upon filing pursuant to
Section 19(b)(3)(A) \6\ of the Act and Rule 19b-4(f)(2) \7\ thereunder.
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\6\ 15 U.S.C. 78s(b)(3)(A).
\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 [email protected]. Please include
File No. SR-NYSE-2009-133 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 No. SR-NYSE-2009-133. 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,\8\ 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, 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 NYSE. 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-2009-133 and should be
submitted on or before February 4, 2010.\9\
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\8\ The text of the proposed rule change is available on the
Commission's Web site at
http://www.sec.gov.
\9\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-543 Filed 1-13-10; 8:45 am]
BILLING CODE 8011-01-P