[Federal Register Volume 74, Number 215 (Monday, November 9, 2009)]
[Notices]
[Pages 57719-57720]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-26878]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-60912; File No. SR-NYSE-2009-108]


Self-Regulatory Organizations; New York Stock Exchange LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change to 
Adjust Its Rebates Paid to Supplemental Liquidity Providers

November 2, 2009.
    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 October 29, 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\ 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, effective November 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 self-regulatory organization 
included statements concerning the purpose of,

[[Page 57720]]

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
    Currently, the NYSE pays a credit of $0.0015 per share to 
Supplemental Liquidity Providers (``SLPs'') when they provide liquidity 
on the NYSE and the SLP (i) meets the 3% average or more quoting 
requirement in an assigned security pursuant to Rule 107B and (ii) adds 
liquidity of an average daily volume (``ADV'') of 100 million shares or 
less in the applicable month. Effective November 1, 2009, the Exchange 
is modifying the requirements for an SLP to qualify for the $0.0015 per 
share credit, by requiring that the SLP must add liquidity of an ADV of 
more than 10 million shares in the applicable month to qualify for the 
credit. This new requirement will not apply to a new SLP in the first 
month that it is an SLP, as the Exchange believes the requirement would 
be difficult for a new SLP to meet while building up its liquidity 
providing activities in that first month. The Exchange is also amending 
the Price List to make it clear that, when SLPs do not qualify for the 
$0.0015 per share credit, they are entitled to the $0.0010 per share 
credit payable to all customers when providing liquidity.
    Currently, SLPs receive a credit of $0.0005 per share for 
executions at the close, except market at-the-close (``MOC'') and limit 
at-the-close (``LOC'') orders. While it is not making any substantive 
change to the treatment of MOC and LOC orders executed by SLPs, the 
Exchange is amending the Price List to clarify that MOC and LOC orders 
do not benefit from the credit. SLPs will continue to pay the same 
transaction fees on MOC and LOC orders as are paid by other member 
organizations. The fee for MOC and LOC orders is $0.0006 per share for 
any member organization executing an ADV on the NYSE in the applicable 
month of at least 130 million shares, including (i) adding liquidity in 
an ADV of at least 30 million shares and (ii) an ADV of at least 15 
million shares total in MOC and LOC orders. The fee for MOC and LOC 
orders for member organizations not meeting the requirements set forth 
in the preceding sentence is $0.0007 per share.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the provisions of Section 6 \4\ of the Act of 1934 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.
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    \4\ 15 U.S.C. 78f.
    \5\ 15 U.S.C. 78f(b)(4).
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    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.
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. 
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.
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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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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 Number SR-NYSE-2009-108 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-2009-108. 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, 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 available publicly. All 
submissions should refer to File No. SR-NYSE-2009-108 and should be 
submitted on or before November 30, 2009.

    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. E9-26878 Filed 11-6-09; 8:45 am]
BILLING CODE 8011-01-P