The NYSE proposes a one-year pilot program to establish a Retail Liquidity Program, for the purpose of attracting more retail order flow for NYSE-listed securities.  Additionally, new NYSE Rule 107C may also improve prices for said order flow by requiring a new class of trader to improve on best-protected bid or protected offer with non-displayed interest. As proposed, new NYSE Rule 107C ...  would create two new classes of market participants:  (i) Retail Member Organizations: member organizations that are approved by the NYSE to submit retail orders;  and (ii) Retail Liquidity Providers: members that are approved to submit retail price improvement orders. Under Rule 107C, these orders would have to be in the form of non-displayed interest that is better than the best protected bid or the best protected offer. The rule would also make changes to its definitions:

• A “retail order” would be defined as an agency order that originates from a natural person and is submitted to the NYSE by an RMO, provided no change is made to the terms of the order and that is doesn't originate from any computerized methodology.  It may also be defined as a proprietary order of an RMO that results from liquidating a position acquired from the internalization of an order of the previous type.
• A “Retail price improvement order” would be defined as a non-displayed interest that is better than the best protected bid or protected offer by at least $0.002. In other words, a retail liquidity provider would only be able to enter retail price improvement orders if their floor is at least $0.002 less than the best protected offer. The price improvement only affects the RLP's floor. The RLP's ceiling is flexible because a larger offset will still produce the required price improvement.

For further details on the rule change and price improvement order scenarios, go to:   [NYSE Rule , 10/12/11]