[Federal Register Volume 75, Number 44 (Monday, March 8, 2010)]
[Notices]
[Pages 10532-10533]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-4737]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-61615; File No. SR-NYSEAmex-2010-10]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by NYSE Amex, LLC Amending Its
Fee Schedule
March 1, 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 February 1, 2010, NYSE Amex LLC (``NYSE Amex'' 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 amend its Schedule of Fees and Charges
(the ``Schedule'') effective February 1, 2010. The text of the proposed
rule change is attached as Exhibit 5 to the 19b-4 form. A copy of this
filing is available on the Exchange's Web site at http://www.nyse.com,
at the Exchange's principal office 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, 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 aspects of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
NYSE Amex proposes to make multiple changes to its Schedule
effective February 1, 2010. A more detailed description of the proposed
changes follows.
Specialists, E-Specialists and DOMM Rights Fee:
Presently we charge to Specialists, E-Specialists and Directed
Order Market Makers, on a pro rata basis, a monthly rights fee that is
based on a tiered scale according to how much Average Daily National
Customer Volume was executed during a rolling 3 month period. Effective
February 1, 2010, the Exchange will reduce the rights fee by 50% in
each tier as shown below.
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Average National Daily Customer Contracts per issue: Monthly base rate:
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0 to 2,000.......................................... [$150] $75
2,001 to 5,000...................................... [$400] $200
5,001 to 15,000..................................... [$750] $375
15,001 to 100,000................................... [$1,500] $750
Over 100,000........................................ [$3,000] $1,500
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Non-Directed Market Maker Fee and Market Maker Fee Cap:
The Exchange is also proposing to increase the per contract rate
paid by Non-Directed Market Makers from $.17 to $.18 per contract.
Concurrently, the Exchange also proposes to introduce a fee cap for all
Market Makers.\3\ The fee cap will be set at $250,000 per month plus an
incremental rate of $.01 per contract for all Specialist, e-Specialist
and Market Maker (both Directed and non-Directed) volume executed in
excess of 2,500,000 contracts per month. For example, today a Non-
Directed Market Maker who executes 3,000,000 contracts in a given month
would pay $510,000 (3,000,000 x $.17). The introduction of the fee
change would result in the same Non-Directed Market Maker paying
$255,000 (3,000,000 x $.18 = $540,000 which is then reduced to $250,000
plus 500,000 [incremental volume over 2,500,000] x $.01 = $5,000
resulting in the monthly charge of $255,000). Specialist, e-Specialist,
and Market Marker (both Directed and non-Directed) fees will be
aggregated for purposes of the cap. The Exchange will exclude any fees
or volume associated with a Strategy Trade (reversals and conversions,
dividend spreads, box spreads, short stock interest spreads, merger
spreads, and jelly rolls). Any fees or volume attributable to a
Strategy Trade will not be counted towards either the $250,000 fee cap,
or the volume threshold of 2,500,000 contracts. All Royalty Fees will
[[Page 10533]]
continue to be charged and do not count toward the $250,000 fee cap.
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\3\ Market Makers include all Specialists, e-Specialists, Non-
Directed Market Makers and Directed Market Makers.
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NYSE Amex is continuously monitoring our fees in an attempt to
ensure that we remain competitive while also ensuring that we allocate
our costs equitably across all participants. NYSE Amex believes that
proposed changes are equitable and apply uniformly to all similarly
situated ATP Holders.
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. NYSE Amex believes that
proposed changes are equitable and apply uniformly to all similarly
situated ATP Holders.
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\4\ 15 U.S.C. 78f(b).
\5\ 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 either 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 by the NYSE Amex.
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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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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.
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-NYSEAmex-2010-10 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-NYSEAmex-2010-10. 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 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 Number SR-
NYSEAmex-2010-10 and should be submitted on or before March 29, 2010.
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. 2010-4737 Filed 3-5-10; 8:45 am]
BILLING CODE 8011-01-P