[Federal Register Volume 75, Number 73 (Friday, April 16, 2010)]
[Notices]
[Pages 20030-20031]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-8685]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-61868; File No. SR-NYSEArca-2010-21]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Rule Change Amending Its Fee Schedule
April 7, 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 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, II,
and III 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.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 15 U.S.C. 78a.
\3\ 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 changes to its Schedule of Fees and Charges
for Exchange Services (the ``Schedule''). While changes to the Schedule
pursuant to this proposal will be effective upon filing, the changes
will become operative on April 1, 2010. The amended section of the
Schedule is available on the Commission's Website 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 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 Exchange is proposing changes to the Tier 1 rates and volume
levels. Under this proposal, Tier 1 rates will be applied to ETP
Holders and Market Makers that provide liquidity on the Exchange with
an ADV per month of greater than 55 million shares. Currently the Tier
1 volume level is set at 60 million shares. The Exchange also proposes
to increase the credit for orders that provide liquidity to the Book in
Tape A and Tape C securities from $0.0029 per share to $0.0030 per
share in Tier 1. In conjunction with these changes, the Exchange will
eliminate the Super Tier. All other Tiered pricing remains the
unchanged.
The Exchange is also proposing to modify its fees structure for
securities that execute at prices below $1. For these securities, the
Exchange currently charges ETP Holders accessing liquidity a fee equal
to 0.1% (10 basis points) of the total dollar value of the execution
and provides no credit to ETP Holders providing liquidity. Under the
new fee structure, ETP Holders accessing liquidity will be charged 0.3%
(30 basis points) of the total dollar value of the execution, and ETP
Holder providing liquidity will be provided a credit equal to 0.25% (25
basis points) of the total dollar value of the transaction. These fees
are consistent with the limitations of Regulation NMS, SEC Rule 610(c),
for securities with a price of less than $1.00.
The proposed changes to the Schedule are part of the Exchange's
continued effort to attract and enhance participation on the Exchange
by offering volume based incentives along with attractive rates for
removing liquidity and rebates for providing liquidity. The Exchange
believes the proposed fees are reasonable and equitable in that they
apply uniformly to all similarly situated ETP Holders. The proposed
changes will become operative on April 1, 2010.
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 proposed changes to
the Schedule are part of the Exchange's continued effort to attract and
enhance participation on the Exchange by offering volume based
incentives along with attractive rates for removing liquidity and
rebates for providing liquidity to the Exchange. The proposed changes
to the Schedule are reasonable and equitable in that they apply
uniformly to all similarly situated ETP Holders.
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\4\ 15 U.S.C. 78f(b). [sic]
\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.
[[Page 20031]]
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 by NYSE Arca on its members. 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.
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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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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-2010-21 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-2010-21. 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-
NYSEArca-2010-21 and should be submitted on or before May 7, 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. 2010-8685 Filed 4-15-10; 8:45 am]
BILLING CODE 8011-01-P