[Federal Register Volume 76, Number 70 (Tuesday, April 12, 2011)]
[Notices]
[Pages 20428-20429]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-8581]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-64195; File No. SR-NYSEAmex-2011-21]
Self-Regulatory Organizations; NYSE Amex LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change Amending the
Exchange Price List
April 5, 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 March 29, 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.
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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 to amend its 2011 Price List (``Price List'')
for equities to amend the fees charged for taking liquidity in Nasdaq
securities priced at $1.00 or more and traded pursuant to unlisted
trading privileges (``UTP''). The Exchange proposes to create a new
tier with a reduced ``take'' fee of $0.0019 per share (compared with
$0.0027 currently) for market participants and Designated Market Makers
(``DMMs'') that meet certain average daily executed volume requirements
in either shares or a combination of shares and contracts traded on the
NYSE Amex options market. Market participants and DMMs who meet these
executed volume requirements will also qualify for a reduced routing
fee of $0.0019 per share (compared with $0.0029 currently) for
executions on other markets as a result of routing. The Exchange also
proposes to eliminate all fees shown in the Price List for Supplemental
Liquidity Providers (``SLPs''), regardless of price, for taking
liquidity and for routing because those categories are not applicable
to SLPs. The amended pricing will become operative on April 1, 2011.
The text of the proposed rule change is available at the Exchange, on
the Exchange's Web site at http://www.nyse.com, on the Commission's Web
site at http://www.sec.gov, 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 proposes to amend its Price List for equities to
modify the fees charged to market participants and DMMs for taking
liquidity in Nasdaq securities traded pursuant to UTP whose share price
is $1.00 or more. The corresponding fees for such securities whose
share price is below $1.00 will remain unchanged from the current
formulation regardless of whether the volume requirements described
below are met.
Currently, market participants and DMMs are charged a fee of
$0.0027 per share for orders in Nasdaq securities traded pursuant to
unlisted trading privileges and priced at $1.00 or more that take
liquidity. Under the proposal, the fee will be reduced to $0.0019 per
share for orders that take liquidity if either of the following volume
requirements is met:
Execution of an average daily volume (``ADV'') in the
current month of greater than three million shares when taking
liquidity and routing to other markets for execution (combined); or
Execution of an ADV in the current month of greater
than 1 million shares when taking liquidity and routing to other
markets for execution (combined) and execution of an ADV of 130,000
total contracts or more on the NYSE Amex options market.
[[Page 20429]]
The second alternative above for meeting the volume requirements is
being provided for the purpose of encouraging and rewarding active
participation in both of the NYSE Amex markets (equities and options)
and to recognize those participants that are active on both markets. A
party that does no options business could still obtain the lower charge
based solely on its UTP equities business.
Currently, market participants and DMMs are charged a fee of
$0.0029 per share for orders in Nasdaq securities traded pursuant to
unlisted trading privileges and priced at $1.00 or more that are routed
to other markets and execute there. Under the proposal, the fee will be
reduced to $0.0019 per share for executions of such routed orders if
either of the above volume requirements is met. The corresponding fee
for such securities whose share price is below $1.00 will remain
unchanged from the current formulation regardless of whether the volume
requirements are met.
The Exchange believes that these reduced fees for taking liquidity
and executions from routing will attract more volume to the Exchange
and thereby result in a more competitive market in the trading of
Nasdaq UTP securities.
Finally, the Exchange proposes to eliminate all fees shown in the
Price List for SLPs, regardless of price, for taking liquidity and for
routing, because those categories are not applicable to SLPs and should
not have been added when the fee and credit structure for trading
Nasdaq listed securities pursuant to UTP was adopted.\4\ As indicated
in the Price List for its listed securities, the only prices applicable
to SLPs are credits for adding liquidity. The applicable charges for
taking liquidity and routing are already covered in that portion of the
Price List that relates more generally to fees and credits applicable
to market participants for transactions in Nasdaq securities pursuant
to UTP, which would include fees for taking liquidity and routing that
are charged to the firm with which the SLP is associated.
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\4\ See Securities Exchange Act Release No. 62488 (July 13,
2010), 75 FR 41912 (July 19, 2010) (File No. SR-NYSEAmex-2010-69).
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These changes are intended to become operative for all transactions
beginning April 1, 2011.
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''),\5\ in general, and Section 6(b)(4) of the Act,\6\ 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, as all similarly situated member organizations will be charged
the same amount and access to the Exchange's market is offered on fair
and non-discriminatory terms. The Exchange believes that these reduced
fees for taking liquidity and executions from routing will attract more
volume to the Exchange and thereby result in a more competitive market
in the trading of Nasdaq UTP securities.
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\5\ 15 U.S.C. 78f(b).
\6\ 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 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) \7\ of the Act and subparagraph (f)(2) of Rule 19b-
4 \8\ thereunder, because it establishes a due, fee, or other charge
imposed by the NYSE Amex.
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\7\ 15 U.S.C. 78s(b)(3)(A).
\8\ 17 CFR 240.19b-4(f)(2).
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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-2011-21 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-NYSEAmex-2011-21. 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
publicly available. All submissions should refer to File Number SR-
NYSEAmex-2011-21 and should be submitted on or before May 3, 2011.
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\9\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-8581 Filed 4-11-11; 8:45 am]
BILLING CODE 8011-01-P