Daily Rules, Proposed Rules, and Notices of the Federal Government
The Exchange is proposing to amend its Fee and Rebate Schedule (the "Fee Schedule") issued pursuant to Exchange Rule 16.1(a) to modify the rebates for certain orders executed in the Exchange's Order Delivery and Automated Response ("Order Delivery") mode. The text of the proposed rule change is available on the Exchange's Web site at
In its filing with the Commission, the Exchange 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 Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant parts of such statements.
The Exchange is proposing to amend Section II of its Fee Schedule to modify the rebates for orders executed in the Exchange's Order Delivery mode in securities with quoted prices of at least one dollar. Under Section II of the Fee Schedule, the Exchange offers ETP Holders both a Primary and Alternate Fee Schedule with four (4) tiers of progressively greater rebates.
* Tier 1--unchanged.
* Tier 2--unchanged.
* Tier 3--ADV range would change from 14.0 and < 16.0 million to 14.0 and < 15.0 million. Rebate amount is unchanged.
* Tier 4--ADV range would change from 16.0 million and above to 15.0 million and above. Rebate amount is unchanged.
The Exchange believes improving rebates is a reasonable method to incentivize ETP Holders that use Order Delivery to submit greater order volumes to the Exchange, which would result in increased revenues to the Exchange. Finally, the Exchange notes that it operates in a highly competitive market in which market participants can readily favor competing venues. In such an environment, the Exchange must continually review, and consider adjusting, its fees and rebates to remain competitive with other exchanges. The Exchange believes that the proposed rule change reflects this competitive environment.
The Exchange currently intends to make the proposed modifications, which are effective on filing of this proposed rule, operative as of commencement of trading on November 6, 2012.
The Exchange believes that the proposed rule change is consistent with the provisions of Section 6(b) of the Securities Exchange Act of 1934
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.
The Exchange has neither solicited nor received written comments on the proposed rule change.
The proposed rule change has taken effect upon filing pursuant to Section 19(b)(3)(A)(ii) of the Exchange Act
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:
* Use the Commission's Internet comment form (
* Send paper comments in triplicate to Elizabeth M. Murphy, Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.