[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