[Federal Register Volume 75, Number 198 (Thursday, October 14, 2010)]
[Notices]
[Pages 63233-63235]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-25746]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-63056; File No. SR-NYSEArca-2010-87]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change Amending Its Fee
Schedule
October 6, 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 September 30, 2010, NYSE Arca, Inc. (``NYSE Arca'' 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 self-regulatory
organization. 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\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange through its wholly-owned subsidiary NYSE Arca
Equities, Inc. (``NYSE Arca Equities'') proposes to amend the NYSE Arca
Equities Schedule of Fees and Charges for Exchange Services (the
``Schedule''). While changes to the Schedule pursuant to this proposal
will be effective on filing, the changes will become operative on
October 1, 2010. The text of the proposed rule change is available at
the Exchange, the Commission's Public Reference Room, and the
Exchange's Web site at 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.
[[Page 63234]]
A. Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule Change
1. Purpose
Effective October 1, 2010, the Exchange proposes to amend the
Schedule to modify the structure of the transaction credits it provides
to Lead Market Makers (``LMMs'') for providing displayed liquidity in
the NYSE Arca marketplace primary listed securities in which they are
registered as the LMM. Currently, an LMM receives a rebate of $0.004
per share for execution of orders that provide displayed liquidity in
such a security, regardless of the trading volume in the security. The
Exchange is proposing to replace this with a tiered rebate structure
that is based on the consolidated average daily volume (``CADV'') of
the security in the previous month. Specifically, the transaction
credits under the new structure would be as follows:
$0.0035 per share for orders that provide displayed
liquidity in securities that have a CADV in the previous month greater
than 5 million shares
$0.004 per share for orders that provide displayed
liquidity in securities that have a CADV in the previous month of
between 1 million and 5 million shares inclusive
$0.0045 per share for orders that provide displayed
liquidity in securities that have a CADV in the previous month of less
than 1 million shares
In addition, for each rate level of trade related fees in the
Schedule, the Exchange proposes to institute a fee of $0.0005 per share
for orders executed in the Opening Auction or Market Order Auction, as
those terms are defined in NYSE Arca Equities Rule 7.35. The fee will
be applicable to Tape A, Tape B and Tape C securities, and will be
capped at $10,000 per month per Equity Trading Permit ID.
Additionally, the Exchange proposes to change the pricing for Mid-
Point Passive Liquidity (``MPL'') Orders. Currently the rebate for MPL
Orders that provide liquidity, as well as the fee for orders that take
liquidity, is $0.0010 in Tape A, Tape B and Tape C securities. Under
this proposal, MPL orders will receive a rebate of $0.0015 for orders
that provide liquidity and be charged a fee of $0.0025 for orders that
take liquidity in Tape A, Tape B and Tape C securities. These changes
apply to all pricing levels.
Finally, the Exchange proposes to assess monthly fees for the use
of all ports that provide connectivity to its equity trading systems. A
number of other markets already charge such fees, but the Exchange has
not previously done so.
The level of activity with respect to a particular port will not
affect the assessment of monthly fees, so even if a particular port
that is available to a participant is not used, the participant will
still be billed for that port. The monthly fee for ports will be $100
per pair per month up to five pairs, then $500 for each additional five
pairs. For example, the fee for seven pairs of ports will be $1,000 per
month. Billing for ports will be based on the number of ports on the
third business day prior to the end of the month.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the provisions of Section 6 of the Securities Exchange Act of 1934
(the ``Act''),\4\ 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
fees, as all similarly situated member organizations and other market
participants will be charged the same amount and access to the
Exchange's market is offered on fair and non-discriminatory terms.
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78f(b). [sic]
\5\ 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 is effective upon filing pursuant to
Section 19(b)(3)(A) \6\ of the Act and subparagraph (f)(2) of Rule 19b-
4 \7\ thereunder, because it establishes a due, fee, or other charge
imposed on its members by NYSE Arca.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78s(b)(3)(A).
\7\ 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.
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-NYSEArca-2010-87 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-NYSEArca-2010-87. 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.\8\ All comments received will be posted without change; the
Commission does not edit personal identifying information from
[[Page 63235]]
submissions. You should submit only information that you wish to make
available publicly. All submissions should refer to File Number SR-
NYSEArca-2010-87 and should be submitted on or before November 4, 2010.
---------------------------------------------------------------------------
\8\ The text of the proposed rule change is available on the
Commission's Web site at http://www.sec.gov.
For the Commission, by the Division of Trading and Markets, pursuant
to delegated authority.\9\
---------------------------------------------------------------------------
\9\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-25746 Filed 10-13-10; 8:45 am]
BILLING CODE 8011-01-P