[Federal Register Volume 75, Number 248 (Tuesday, December 28, 2010)]
[Notices]
[Pages 81701-81702]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-32622]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-63593; File No. SR-NYSE-2010-83]


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

December 21, 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 December 16, 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 
and II 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.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to make permanent 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''). 
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 Exchange proposes to make permanent 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''). 
The pilot program commenced in January 2008 \3\ and has been extended 
several times since that time.\4\ It is scheduled to expire on December 
31, 2010.
---------------------------------------------------------------------------

    \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), 61201 
(December 18, 2009), 74 FR 68651 (December 28, 2009) (SR-NYSE-2009-
127), 62455 (July 6, 2010), 75 FR 40004 (July 13, 2010) (SR-NYSE-
2010-51).

---------------------------------------------------------------------------

[[Page 81702]]

    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. 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; 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 bond, and when the liquidity taker purchases 
or sells twenty six (26) bonds or more, the Exchange charges an 
execution fee of $0.10 per bond. The Exchange imposes a $100 execution 
fee cap per transaction.
    For example, if a liquidity taker purchases or sells five (5) 
bonds, the Exchange charges $.50 per bond, or a total of $2.50 for 
execution fees. If a liquidity taker purchases or sells twenty (20) 
bonds, the Exchange charges $.20 per bond or a total of $4.00 for 
execution fees. If a liquidity taker purchases or sells thirty (30) 
bonds, the Exchange charges $.10 per bond or a total of $3.00 for 
execution fees.
    The bond liquidity taker fee schedule has been in place for nearly 
two years and the Exchange believe that it is an equitable allocation 
of fees for users of the NYSE bond platform. As such, the Exchange 
believes that it is appropriate at this time to adopt the fee schedule 
on a permanent, rather than a pilot, basis.
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.
---------------------------------------------------------------------------

    \5\ 15 U.S.C. 78f.
    \6\ 15 U.S.C. 78a.
    \7\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

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 has become effective pursuant to Section 
19(b)(3)(A) of the Act \8\ and paragraph (f)(2) of Rule 19b-4 
thereunder,\9\ because it establishes a due, fee, or other charge 
imposed by the NYSE.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of the proposed rule 
change, the Commission summarily may temporarily suspend 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. If the Commission 
takes such action, the Commission shall institute proceedings to 
determine whether the proposed rule should be approved or disapproved.

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-2010-83 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-2010-83. 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 website 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-2010-83 and should be 
submitted on or before January 18, 2011.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
---------------------------------------------------------------------------

    \10\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-32622 Filed 12-27-10; 8:45 am]
BILLING CODE 8011-01-P