[Federal Register Volume 77, Number 147 (Tuesday, July 31, 2012)]
[Notices]
[Pages 45392-45394]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-18655]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-67505; File No. SR-NYSEMKT-2012-24]
Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and
Immediate Effectiveness of Proposed Rule Change Deleting Existing Rule
Text Found in Rule 923NY(d)(1) to (4) Concerning the Number of ATP's
Required by an NYSE Amex Options Market Maker To Quote on the Exchange
and Move It to the Fee Schedule
July 26, 2012.
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 July 12, 2012, NYSE MKT LLC (the ``Exchange'' or ``NYSE
MKT'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I and II
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 delete existing rule text found in Rule
923NY(d)(1) to (4) concerning the number of ATP's required by an NYSE
Amex Options Market Maker to quote on the Exchange and move it to the
Fee Schedule. The text of the proposed rule change is available on the
Exchange's Web site at www.nyse.com, at the principal office of the
Exchange, 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 delete Rule 923NY(d)(1) to (4) and insert
language referencing the Exchange's Fee Schedule. The Exchange further
proposes to move the content of Rule 923NY(d)(1) to (4) to the Fee
Schedule, without any substantive changes.
With one exception, the Fee Schedule sets forth the fees and
charges that participants on the Exchange can be expected to pay.
However, even though it implicates a fee issue, ATP Holders acting as
NYSE Amex Options Market Makers need to refer to Rule 923NY(d)(1) to
(4) to ascertain the number of ATP's they are required to have based on
the number of option products that they have in their assignment. The
Exchange believes that this information more appropriately belongs in
the Fee Schedule so that all participants can have the same source to
understand the basis for fees.\4\ In
[[Page 45393]]
particular, because the Exchange charges a fee for each ATP assigned to
an ATP Holder, the rule text identifies the fee structure by setting
forth the number of trading permits that are required according to the
number of options issues including [sic] in their appointment.
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\4\ See NASDAQ OMX PHLX fees charged to Streaming Quote Traders
and Remote Streaming Quote traders in Section VI ``Membership Fees''
in their fee schedule found here: http://nasdaqomxphlx.cchwallstreet.com/NASDAQOMXPHLXTools/PlatformViewer.asp?selectednode=chp%5F1%5F4%5F1&manual=%2Fnasdaqomxphlx%2Fphlx%2Fphlx%2Drulesbrd%2F.
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Rule 923NY(d)(1) to (4) sets forth the trading appointments of
participants acting as Market Makers on the Exchange. They are as
follows:
(1) Market Makers with 1 ATP may have up to 100 option issues
included in their appointment.
(2) Market Makers with 2 ATPs may have up to 250 option issues
included in their electronic appointment.
(3) Market Makers with 3 ATPs may have up to 750 option issues
included in their appointment.
(4) Market Makers with 4 ATPs may have all option issues traded on
the Exchange included in their appointment.
The Exchange proposes to delete the text found in bullets 1 to 4
above, replace the rule text in 1 and re-number 5 to number 2. The
proposed language for 1 is, ``Market Makers shall have the number of
ATP's required under the Fee Schedule in order to have a trading
appointment on the Exchange.''
Concurrent with this change, the Exchange proposes to add a section
to the Fee Schedule under the section entitled, ``NYSE AMEX OPTIONS
GENERAL OPTIONS and TRADING PERMIT (ATP) FEES'', that will replicate
the rule text deleted in Rules 923NY(d)(1) to (4). No change in the
number of ATPs required by Market Makers is being made at this time.
The Exchange proposes to make a non-substantive change when moving
the rule text to the Fee Schedule by clarifying in the introduction
text that all appointments are electronic appointments, and delete the
term ``electronic'' in connection with the entry for Market Makers with
2 ATPs.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the provisions of Section 6(b) \5\ of the Securities Exchange Act
of 1934 (the ``Act''), in general, and Section 6(b)(5) \6\ of the Act,
in particular, in that it is designed to prevent fraudulent and
manipulative acts and practices, to promote just and equitable
principles of trade, to foster cooperation and coordination with
persons engaged in facilitating transactions in securities, and to
remove impediments to and perfect the mechanism of a free and open
market and a national market system. The Exchange believes that [sic]
relocating the number of permits required of ATP Holders acting as
Market Makers on the Exchange from within the rule text of Rules
923NY(d)(1) through (4) to the Fee Schedule, the Exchange is making it
easier and more transparent for participants to understand the basis
for fees.
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\5\ 15 U.S.C. 78f(b).
\6\ 15 U.S.C. 78f(b)(4) [sic].
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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
Because the foregoing proposed rule change does not: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A) of the Act \7\ and Rule 19b-
4(f)(6) thereunder.\8\
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\7\ 15 U.S.C. 78s(b)(3)(A).
\8\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change at
least five business days prior to the date of the filing of the
proposed rule change, or such shorter time as designated by the
Commission. The Exchange has satisfied this requirement.
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A proposed rule change filed under Rule 19b-4(f)(6) \9\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\10\ the Commission
may designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has asked
the Commission to waive the 30-day operative delay so that the proposal
may become operative immediately upon filing because the proposal is
administrative in nature and simply moves fee-related text from the
rules to the Fee Schedule, and because it will make it easier and more
transparent for participants to understand the basis for these fees.
The Commission believes that waiving the 30-day operative delay is
consistent with the protection of investors and the public
interest.\11\ Therefore, the Commission designates the proposed rule
change to be operative upon filing with the Commission.
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\9\ 17 CFR 240.19b-4(f)(6).
\10\ 17 CFR 240.19b-4(f)(6)(iii).
\11\ For purposes only of waiving the operative delay for this
proposal, the Commission has considered the proposed rule's impact
on efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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At any time within 60 days of the filing of the 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. If the Commission
takes such action, the Commission shall institute proceedings to
determine whether the proposed rule should be approved or disapproved.
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 email to [email protected]. Please include
File Number SR-NYSEMKT-2012-24 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-NYSEMKT-2012-24. This
file number should be included on the subject line if email 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
[[Page 45394]]
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 20549-1090. Copies of
the filing will also be available for inspection and copying at the
Exchange's principal office and on its Internet Web site at
www.nyse.com. 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-
NYSEMKT-2012-24 and should be submitted on or before August 21, 2012.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
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\12\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-18655 Filed 7-30-12; 8:45 am]
BILLING CODE 8011-01-P