[Federal Register Volume 76, Number 110 (Wednesday, June 8, 2011)]
[Notices]
[Pages 33389-33390]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-14033]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-64581; File No. SR-NYSEAmex-2011-35]
Self-Regulatory Organizations; NYSE Amex LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Amend the Fees
Relating to the Sale of Trading Licenses
June 2, 2011.
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 May 26, 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\ 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 modify the fees it charges for the
issuance of trading licenses that are required in order to effect
transactions on the floor of the Exchange or through any facility of
the Exchange. The Exchange proposes to amend Rule 300--NYSE Amex
Equities (Trading Licenses) to (i) Create a two-tiered pricing
structure for the annual fee, under which the fee would continue to be
$40,000 per license for the first two licenses held by a member
organization but would be reduced to $25,000 per license for any
additional trading licenses held by that member organization, (ii)
provide a formula for proration of the annual fee during a calendar
month in which a trading license has been in place for less than the
full month and (iii) provide that the monthly installments of the
annual fee be payable in arrears at the end of each month. These
changes will become operational on June 1, 2011. 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 modify the fees it charges for the
issuance of trading licenses that are required in order to effect
transactions on the floor of the Exchange or through any facility of
the Exchange. As currently provided in Rule 300--NYSE Amex Equities
(Trading Licenses), the price per trading license sold in each annual
offering of such licenses is $40,000 or such other price as the
Exchange may set per trading license.
The Exchange proposes to modify the structure of its annual fee for
trading licenses by moving from a single price of $40,000 for all such
licenses to a two-tiered pricing structure. Under the proposal, the
annual fee would continue to be $40,000 per license for the first two
trading licenses held by a member organization but would be reduced to
$25,000 per license for any additional trading licenses held by that
member organization.
Pursuant to Rule 300(e)--NYSE Amex Equities, a buyer of a trading
license is required to pay the Exchange the trading license fee in
equal monthly installments in advance over the period during which the
trading license is in effect. The Exchange proposes to change its
billing schedule so that the monthly installments are payable in
arrears at the end of each month.
Finally, Rule 300(d)--NYSE Amex Equities provides that, following
the annual offering and at any time thereafter during the following
calendar year, the Exchange shall sell additional
[[Page 33390]]
trading licenses expiring at the end of the calendar year at a price of
$44,000 \3\ or such other price as the Exchange may set, but prorated
to reflect the amount of time remaining in the year. For any such
additional trading license that is in place for 15 calendar days or
less in a calendar month, the Exchange proposes that the proration for
that month will be computed based on a flat rate of $100 per day with
no tier pricing involved. For any such additional trading license that
is in place for 16 calendar days or more in a calendar month, the
Exchange proposes that the proration for that month will be computed
based on the number of days as applied to the full annual fee for the
license for the applicable tier.
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\3\ The Exchange notes that the $44,000 figure shown in the rule
text as the current price for trading licenses sold during a
calendar year following the annual offering is erroneous. The
correct figure is $40,000--the same current price as trading
licenses sold during the preceding annual offering, prorated to
reflect the amount of time remaining in the year.
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These changes will become operational on June 1, 2011. Licenses
that are already in place will be billed monthly for the remainder of
the year at the new tier rates beginning on that date, but there will
be no retroactive adjustment for the period prior to June 1 for those
trading licenses that qualify for the new $25,000 tier price. For the
June 2011 billing, the Exchange will begin invoicing in arrears as
discussed above.
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 Exchange believes
that the proposal does not constitute an inequitable allocation of
fees, as all similarly situated member organizations will be subject to
the same fee structure and access to the Exchange's market is offered
on fair and non-discriminatory terms. Any member organization that
holds more than two trading licenses will be able to benefit from the
new $25,000 annual fee tier for the additional licenses. The ability to
pay monthly installments of the annual fee in arrears instead of in
advance, as presently required, should be beneficial to all member
organizations that hold trading licenses.
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\4\ 15 U.S.C. 78f(b).
\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.
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 the NYSE.
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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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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-2011-35 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-2011-35. 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-2011-35 and should be submitted on or before June 29, 2011.
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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Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-14033 Filed 6-7-11; 8:45 am]
BILLING CODE 8011-01-P