[Federal Register Volume 75, Number 133 (Tuesday, July 13, 2010)]
[Notices]
[Pages 40004-40005]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-16992]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-62455; File No. SR-NYSE-2010-51]


Self-Regulatory Organizations; New York Stock Exchange LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
Extending the Pilot Program That Offers Liquidity Takers a Reduced 
Transaction Fee Structure for Certain Bond Trades Executed on the NYSE 
Bonds\SM\ System to December 31, 2010

July 6, 2010.
    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 June 30, 2010, the 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 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 extend the pilot program that offers 
liquidity takers a reduced transaction fee structure for certain bond 
trades executed on the NYSE Bonds\SM\ system (``NYSE Bonds'') to 
December 31, 2010. The text of the proposed rule change is available at 
the Exchange's principal office, http://www.nyse.com, the Commission's 
Public Reference Room, and on the Commission's Web site at http://www.sec.gov.

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 New York Stock Exchange LLC (the ``Exchange'' or the ``NYSE'') 
proposes to extend the pilot program that offers liquidity takers a 
reduced transaction fee structure for certain bond trades executed on 
the NYSE Bonds\SM\ system (``NYSE Bonds'') to December 31, 2010.
    This pilot program commenced in January 2008 \3\ and has been 
extended several times since that time.\4\ It is scheduled to 
terminate, if not extended, on June 30, 2010.
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    \3\ See Securities Exchange Act Release No. 57176 (January 18, 
2008), 73 FR 4929 (January 28, 2008) (SR-NYSE-2008-04).
    \4\ See Securities Exchange Act Release Nos. 57823 (May 15, 
2008), 73 FR 29804 (May 22, 2008) (SR-NYSE-2008-38), 59178 (December 
30, 2008), 74 FR 748 (January 7, 2009) (SR-NYSE-2008-137) and 61201 
(December 18, 2009), 74 FR 68651 (December 28, 2009) (SR-NYSE-2009-
127).
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    The pilot program reduces transaction fees charged to liquidity 
takers for transactions executed on NYSE Bonds with a staggered 
transaction fee schedule based on the number of bonds purchased or sold 
in excess of ten (10) bonds. The extended fee filing pilot program 
provides for the following transaction fee schedule: (1) When the 
liquidity taker purchases or sells from one to ten (10) bonds, the 
Exchange will charge an execution fee of $0.50 per bond; (2) when the 
liquidity taker purchases or sells from eleven (11) to twenty five (25) 
bonds, the Exchange will charge an execution fee of $0.20 per

[[Page 40005]]

bond, and (3) when the liquidity taker purchases or sells twenty-six 
(26) bonds or more, the Exchange will charge an execution fee of $0.10 
per bond.
    For example, if a liquidity taker purchases or sells five (5) 
bonds, the Exchange will charge $.50 per bond, or a total of $2.50 for 
execution fees. If a liquidity taker purchases or sells twenty (20) 
bonds, the Exchange will charge $.20 per bond or a total of $4.00 for 
execution fees. If a liquidity taker purchases or sells thirty (30) 
bonds, the Exchange will charge $.10 per bond or a total of $3.00 for 
execution fees.
    The Exchange will continue to impose a $100 execution fee cap per 
transaction.
    The Exchange will seek to file with the Commission, a proposal to 
make this liquidity taker program permanent. Accordingly, the Exchange 
proposes to extend the pilot program for an additional six (6) months 
in order to give the Exchange the necessary time to complete the 19b-4 
process regarding the program permanency filing.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the provisions of Section 6 \5\ of the Securities Exchange Act of 
1934 (the ``Act'') \6\ in general and Section 6(b)(4) of the Act \7\ 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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    \5\ 15 U.S.C. 78f.
    \6\ 15 U.S.C. 78a.
    \7\ 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 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) \8\ of the Act and subparagraph (f)(2) of Rule 19b-
4 \9\ thereunder, because it establishes or changes a due, fee, or 
other charge imposed on its members by the NYSE.
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    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 17 CFR 240.19b-4(f)(2).
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    At any time within 60 days of the filing of such 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 Number SR-NYSE-2010-51 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-2010-51. 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-2010-51 and should be 
submitted on or before August 3, 2010.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
Florence E. Harmon,
Deputy Secretary.
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    \10\ 17 CFR 200.30-3(a)(12).
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[FR Doc. 2010-16992 Filed 7-12-10; 8:45 am]
BILLING CODE 8010-01-P