[ by Howard Haykin ] The NYSE filed for immediate effectiveness to extend the operation of its Supplemental Liquidity Providers Pilot Rule 107B until the earlier of the SEC approval to make such Pilot permanent or 1/31/13.  The rule currently is scheduled to expire on 7/31/12. Background. In October 2008, NYSE implemented significant changes to its market rules, execution technology and the rights and obligations of its market participants - all with the purpose of improving execution quality on the Exchange.  These changes are all elements of the Exchange’s enhanced market model referred to as the "New Market Model" ("NMM Pilot").  The SLP Pilot was launched in coordination with the NMM Pilot (see Rule 107B). As part of the NMM Pilot, NYSE eliminated the function of specialists on the Exchange creating a new category of market participant, the Designated Market Maker or DMM.  Separately, the NYSE established the SLP Pilot, which established SLPs as a new class of market participants to supplement the liquidity provided by DMMs. The SLP Pilot is scheduled to end operation on 7/31/12 or such earlier time as the Commission may determine to make the rules permanent.  The Exchange is currently preparing a rule filing seeking permission to make the SLP Pilot permanent, but does not expect that filing to be completed and approved by the Commission before 7/31/12. Proposal to Extend the Operation of the SLP Pilot.   The NYSE established the SLP Pilot to provide incentives for quoting, to enhance competition among the existing group of liquidity providers, including the DMMs, and add new competitive market participants.  The Exchange believes that the SLP Pilot, in coordination with the NMM Pilot, allows the Exchange to provide its market participants with a trading venue that utilizes an enhanced market structure to encourage the addition of liquidity, facilitate the trading of larger orders more efficiently and operates to reward aggressive liquidity providers.  As such, the Exchange believes that the rules governing the SLP Pilot (Rule 107B) should be made permanent.  Through this filing the Exchange seeks to extend the current operation of the SLP Pilot until 1/31/13, in order to allow the Exchange to formally submit a filing to the Commission to convert the Pilot rule to a permanent rule. For further details, go to:  [NYSE Rule Filing 12-27, 7/12/12].