Self-Regulatory Organizations; Proposed Rule Changes: NYSE Amex LLC

Federal Register: March 15, 2010 (Volume 75, Number 49)

Notices

Page 12325-12326

From the Federal Register Online via GPO Access [wais.access.gpo.gov]

DOCID:fr15mr10-101

SECURITIES AND EXCHANGE COMMISSION

Release No. 34-61670; File No. SR-NYSEAmex-2010-19

Self-Regulatory Organizations; Notice of Filing and Immediate

Effectiveness of Proposed Rule Change by NYSE Amex LLC To Increase the

Monthly ATP Fee for All Options Market Makers and To Reduce the Per-

Contract Transaction Fee for Non-Directed Options Market Makers

March 5, 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 26, 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.

\1\ 15 U.S.C. 78s(b)(1).

\2\ 17 CFR 240.19b-4.

1. 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 March 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.

2. 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.

   Page 12326

   1. Self-Regulatory Organization's Statement of the Purpose of, and

      Statutory Basis for, the Proposed Rule Change 1. Purpose

      Currently, the Exchange charges a monthly fee of $1,000 per Amex

      Trading Permit (``ATP'') for options Market Makers. Effective March 1, 2010 the Exchange proposes to raise the monthly cost of an ATP for

      Market Makers to $5,000. This purpose of this new rate, which applies equally to all Market Maker ATP Holders, is to accurately reflect the current value of participating on the NYSE Amex options marketplace.

      The Exchange was purchased by NYSE Euronext on October 1, 2008.

      Following the Exchange's purchase by NYSE Euronext, the Exchange underwent a number of important changes. These changes include: the migration of the trading, connectivity, and routing technologies onto

      NYSE Group platforms; a new state of the art trading facility located at 11 Wall Street; and the adoption of a Trading License model to access the marketplace. The Exchange believes these changes brought significant benefits to participation in the NYSE Amex options marketplace. Among other indicia of the enhanced benefits to market participation, the Exchange's equity option market share increased from 6.3% to 12.8% during the period starting January 2009 to January 2010.

      Consequently, the Exchange believes the amended pricing is designed to accurately reflect the current benefits to ATP Holders.

      The Exchange is also proposing to decrease the per contract rate paid by Non-Directed Market Makers from $.18 to $.17 per contract. This reverses the change implemented on February 1, 2010 that increased that fee from $.17 to $.18 per contract. 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''),\3\ in general, and Section 6(b)(4) of the Act,\4\ 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 fees are reasonable and apply equally to all similarly situated ATP Holders.

      \3\ 15 U.S.C. 78f(b).

      \4\ 15 U.S.C. 78f(b)(4).

   2. 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.

   3. 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.

3. 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) \5\ of the Act and subparagraph (f)(2) of Rule 19b- 4 \6\ thereunder, because it establishes a due, fee, or other charge imposed by the NYSE Amex.

   \5\ 15 U.S.C. 78s(b)(3)(A).

   \6\ 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.

4. 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 rule-comments@sec.gov. Please include

   File Number SR-NYSEAmex-2010-19 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-2010-19. 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-2010-19 and should be submitted on or before April 5, 2010.

   For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\7\

   \7\ 17 CFR 200.30-3(a)(12).

   Florence E. Harmon,

   Deputy Secretary.

   FR Doc. 2010-5531 Filed 3-12-10; 8:45 am

   BILLING CODE 8011-01-P