[Federal Register Volume 75, Number 69 (Monday, April 12, 2010)]
[Notices]
[Pages 18556-18558]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-8223]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-61849; File No. SR-NYSEAmex-2010-30]
Self-Regulatory Organizations; NYSE Amex LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change Amending Its Fee
Schedule
April 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 March 31, 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 self-regulatory
organization. Amex filed the proposal pursuant to Section 19(b)(3)(A)
\4\ of the Act and Rule 19b-4(f)(2) \5\ thereunder. 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.
\4\ 15 U.S.C. 78s(b)(3)(A).
\5\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to revise the manner in which marketing
charges are made available to Specialists for Non-Directed orders. The
text of the proposed rule change is available on the Commission's Web
site at http://www.sec.gov. 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
[[Page 18557]]
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 the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The purpose of this filing is to introduce a quantitative,
performance based measure to be used in the allocation of the pool of
monies created from the collection of marketing charges on electronic
Non-Directed orders.
Presently, marketing charges are collected by the Exchange on all
electronically executed customer orders where a market maker is on the
contra side. The Exchange pools the marketing fees and then distributes
it to payment accepting firms (order flow providers) at the direction
of the Specialist, e-Specialist, or Directed Market Maker.\6\
---------------------------------------------------------------------------
\6\ See Securities Exchange Act Release No. 59478 (February 27,
2009) 74 FR 9857 (March 6, 2009) (SR-NYSEALTR-2009-19).
---------------------------------------------------------------------------
For those orders that are directed to a specific Specialist, e-
Specialist, or market maker (Directed orders), the Exchange pools the
marketing fees and then distributes it to payment accepting firms
designated by the ATP holder that the order was directed to.
Electronically executed customer orders that are not directed to a
specific ATP holder (Non-Directed orders) that result in the collection
of marketing charges, create a pool of monies made available to the
Specialist in that particular option.
The Exchange recently introduced an e-Specialist program,\7\ and
seeks to ensure that those ATP holders are recognized for providing
competitive quotes and attracting order flow to the Exchange. To do so
the Exchange proposes that the pool of monies resulting from the
collection of marketing charges on electronic Non-Directed orders be
controlled by the Specialist or the e-Specialist with superior volume
performance over a trailing quarterly review period for distribution by
the Exchange at the direction of such Specialist or e-Specialist to
eligible payment accepting firms. In making this determination the
Exchange will, on a class by class basis, evaluate Specialist and e-
Specialist performance based on the number of electronic contracts
executed at NYSE Amex per class. The Specialist/e-Specialist with the
most electronic contracts executed on NYSE Amex per class will control
the pool of marketing charges collected on the issue for the ensuing
quarter. The Exchange may determine in the future to include additional
metrics in the performance calculus subject to the submission of a
subsequent filing to the Commission and upon notice via Regulatory
Bulletin to the participants prior to the next quarterly evaluation
period. The calculation used at the beginning of a calendar quarter
will remain in effect for the duration of that calendar quarter. Each
quarter the calculation will be performed to determine if control of
that pool of monies belongs to either the Specialist or e-Specialist.
In the event that the better performing party no longer quotes in that
issue, control of the pool will default to whoever the assigned
Specialist is in the subsequent quarter. If there is no Specialist
assigned, but there is an e-Specialist assigned, the e-Specialist shall
have control of these monies.
---------------------------------------------------------------------------
\7\ See NYSE Amex Rule 927.4NY (e-Specialists).
---------------------------------------------------------------------------
The Exchange believes that this is an appropriate means of
allocating control of the pool of monies created by the collection of
marketing charges as it rewards those ATP holders who are providing
competitive quotes and attracting order flow to the Exchange. The
Exchange further believes that this change benefits customers by
incentivizing greater competition amongst specialists and e-specialists
to provide tighter spreads and attract greater order flow.
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''),\8\ in general, and Section 6(b)(4) of the Act,\9\ 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.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78f(b).
\9\ 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) \10\ of the Act and subparagraph (f)(2) of Rule
19b-4 \11\ thereunder, because it establishes a due, fee, or other
charge imposed by the NYSE Amex.
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
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-2010-30 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-2010-30. 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
[[Page 18558]]
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-NYSEAmex-2010-30 and should be submitted
on or before May 3, 2010.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
---------------------------------------------------------------------------
\12\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-8223 Filed 4-9-10; 8:45 am]
BILLING CODE 8011-01-P