The NYSE recently changed how it determines the specific percentage quoting requirement applicable to a DMM unit (Designated Market Maker unit).  A DMM unit must maintain a bid or an offer at the NBBO a minimum of either 10% or 15% of the trading day - depending on trading volume for the security. As proposed, NYSE Rule 104(a)(1)(A) would be amended to reflect that, with respect to maintaining a continuous 2-sided quote with reasonable size:

• the 15% requirement would apply when a security's consolidated average daily volume is less than 1 million shares;  and,
• the 10% requirement would apply when a security's consolidated average daily volume is 1 million or more shares.

Currently, the rule reflects for one of the calculations, but not the other, that, when determining the specific percentage quoting requirement applicable to a DMM unit, trading volume for the particular security is based on volume "on the Exchange."  The reference to "on the Exchange" was inadvertently included in the Exchange's proposal to implement the NMM Pilot.  In this regard, and as reflected in the NYSE NMM Approval, the Exchange intended that trading volume for a particular security would be based on CADV when determining the specific percentage quoting requirement applicable to a DMM unit.    [NYSE Rule Filing 11-58, 11/18/11]