Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by New York Stock Exchange LLC To Discontinue Rebates Paid to Floor Brokers for Orders Swept Into the Close

Thu. October 08, 2009; Posted: 08:47 AM

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 September 24, 2009, New York Stock Exchange LLC (the "NYSE" or the "Exchange") filed with the Securities and Exchange Commission (the

[Page Number 51905]

"Commission") the proposed rule changes 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 changes from interested persons.

*1 15 U.S.C. 78s(b)(1).[END FOOTNOTE]

*2 15 U.S.C. 78a et seq. [END FOOTNOTE]

*3 17 CFR 240.19b-4.[END FOOTNOTE]

I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change

The Exchange proposes to discontinue its current $0.0012 per share credit applicable to executions by floor brokers at the close, with effect from October 1, 2009. Going forward, floor broker executions swept into the close will not qualify for a credit but will be free of charge. The text of the proposed rule change is available on the Exchange's Web site (http://www.nyse.com), at the Exchange's Office of the Secretary, 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 these statements may be examined at the places specified in Item IV below. The NYSE has prepared summaries, set forth in Sections A, B and C below, of the most significant aspects of such statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change

1. Purpose

Currently, the NYSE pays a credit of $0.0012 per share to floor brokers for executions swept into the close (i.e., orders executed at the close other than market at-the-close and limit at-the-close orders). Effective October 1, 2009, floor broker executions swept into the close will no longer qualify for a credit but will be free of charge. This is consistent with the treatment of all other orders from Member Organizations (except for Designated Market Makers and Supplemental Liquidity Providers) swept into the close, which are currently free of charge but do not qualify for a credit.

2. Statutory Basis

The Exchange believes that the proposed rule change is consistent with the provisions of Section 6 *4 of the Act 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 dues, fees and other charges as it conforms the treatment of orders from floor brokers swept into the close with that afforded to all other orders from Member Organizations (except Designated Market Makers and Supplemental Liquidity Providers) swept into the close.

*4 15 U.S.C. 78f.[END FOOTNOTE]

*5 15 U.S.C. 78f(b)(4).[END FOOTNOTE]

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 purpose of the Act.

C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others

Written comments were neither solicited nor received.

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 Rule 19b-4(f)(2) *7 thereunder.

*6 15 U.S.C. 78s(b)(3)(A).[END FOOTNOTE]

*7 17 CFR 240.19b-4(f)(2).[END FOOTNOTE]

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.

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 rule-comments@sec.gov. Please include File Number SR- NYSE-2009-98 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-NYSE-2009-98. 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 inspection and copying in the Commission's Public Reference Room 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-NYSE-2009-98 and should be submitted on or before October 29, 2009.

For the Commission, by the Division of Trading and Markets, pursuant to delegated authority. *8

*8 17 CFR 200.30-3(a)(12).[END FOOTNOTE]

Florence E. Harmon,

Deputy Secretary.

[FR Doc. E9-24262 Filed 10-7-09; 8:45 am]

BILLING CODE 8011-01-P

Vol. 74, No. 194

[Release No. 34-60768; File No. SR-NYSE-2009-98]

Notices

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