[Federal Register Volume 76, Number 38 (Friday, February 25, 2011)]
[Notices]
[Pages 10633-10634]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-4227]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-63935; File No. SR-NYSEAMEX-2011-07]
Self-Regulatory Organizations; NYSE Amex LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Amend the
Exchange Price List
February 18, 2011.
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 February 14, 2011, 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. 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 proposes to amend its 2011 Price List for equities
(``Price List'') by revising the description of the Risk Management
Gateway (``RMG'') fee to clarify that the charge is determined on the
basis of the capacity of the end user's connection in inbound messages
per second, rather than the actual number of inbound messages. The text
of the proposed rule change is available at the Exchange, the
Commission's Public Reference Room, http://www.sec.gov, and 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.
A. Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend its Price List for equities by
revising the description of the RMG fee to clarify that the charge is
determined on the basis of the capacity of the end user's connection in
inbound messages per second, rather than the actual number of inbound
messages.
On February 12, 2009, the Exchange filed a proposed rule change
with the Commission that established the fee for its RMG service to
facilitate the ability of Sponsoring Member Organizations to monitor
and oversee the sponsored access activity of their Sponsored
Participants.\4\ In the Original RMG Fee Filing, the Exchange
established a fee of $3,000 per month for the first ``Connection'' plus
$1,000 per month for each additional ``Connection.'' A ``Connection''
was defined as up to 1,000 messages per second inbound, regardless of
the connection's actual capacity.\5\ Consequently, if a particular end
user's connection has the capacity to support 3,000 messages per second
inbound, that end user's connection will be deemed to be three (3)
Connections and the charge will be $5,000 per month.
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release No. 59429 (February 20,
2009), 74 FR 9016 (February 27, 2009) (File No. SR-NYSEALTR-2009-12)
(the ``Original RMG Fee Filing'').
\5\ Id.
---------------------------------------------------------------------------
Although it is clear from the Original RMG Fee Filing that the key
variable in determining an end user's RMG fee is the capacity in
messages per second inbound that the end user's connection will support
(i.e., the number of Connections), the descriptive language that was
added to the Price List at that time was inartfully worded and could be
misinterpreted as basing the monthly RMG fee on the actual number of
inbound messages. Consequently, the Exchange is proposing to modify the
descriptive language for the RMG fee in the Price List to clarify that
the fee is based on message capacity. There will be no change to the
pricing itself or the basis on which it is currently calculated.
The Exchange notes that NYSE Arca, Inc. (``NYSE Arca''), in a rule
filing with the Commission on September 4, 2009,\6\ established a fee
for its RMG service that is exactly the same as the Exchange's RMG fee,
including the computation of the fee based on message capacity. In the
NYSE Arca RMG Fee Filing, the descriptive language that was added to
the NYSE Arca Fee Schedule describes much more clearly and
unambiguously the basis on which the RMG fee is calculated, and the
Exchange proposes to replace the current descriptive language in its
Price List with the corresponding language from the NYSE Arca Fee
Schedule.
---------------------------------------------------------------------------
\6\ See Securities Exchange Act Release No. 60664 (September 14,
2009), 74 FR 48110 (September 21, 2009) (File No. SR-NYSEArca-2009-
81) (the ``NYSE Arca RMG Fee Filing'').
---------------------------------------------------------------------------
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''),\7\ in general, and Section 6(b)(4) of the Act,\8\ 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, since there will be no change to the current RMG fee which has
been in effect since February 2009, or how it is calculated, only to
the description of the fee for the purposes
[[Page 10634]]
of adding clarity regarding the basis and calculation of the fee.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78f.
\8\ 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) \9\ of the Act and subparagraph (f)(2) of Rule 19b-
4 \10\ thereunder, because it establishes a due, fee, or other charge
imposed by NYSE Amex.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
At any time within 60 days of the filing of such 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-NYSEAmex-2011-07 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-2011-07. 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
publicly available. All submissions should refer to File Number SR-
NYSEAmex-2011-07 and should be submitted on or before March 18, 2011.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
---------------------------------------------------------------------------
\11\ 17 CFR 200.30-3(a)(12).
Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-4227 Filed 2-24-11; 8:45 am]
BILLING CODE 8011-01-P