Previously Zero Hedge observed the rather curious integration of Goldman Sachs within the fabric of the NYSE's program trading environment, which, by their own admission, has everything to do with Goldman being the (monopoly) actor in the NYSE's Supplemental Liquidity Provider program. I highlighted that the program was set to expire on April 30.

Today, unsurprisingly, the NYSE posted a notice of a proposed rule change extending the SLP program another six months, until October 1, 2009 (this does not change my commitment to providing weekly NYSE program data). I appreciate our readers' existing and future feedback in this matter.

"The Exchange proposes to extend until October 1, 2009, the six-month pilot program (“Pilot” or “program”) for “Supplemental Liquidity Providers” (“SLPs”) under Rule 107B. The SLP pilot program commenced operation on or about the date the SEC approved the NYSE “New Market Model” pilot which is scheduled to be in operation until October 1, 2009. The Exchange proposes to extend the SLP pilot until October 1, 2009, the termination date of the New Market Model pilot, as the SLP program was designed to operate in the New Market Model and was established to supplement the liquidity provided by Designated Market Makers (“DMMs”) in the New Market Model.

The Exchange believes that the SLP program has added meaningful liquidity to the marketplace and improved both NYSE and overall market quality. The Exchange will continue to monitor the efficacy of the program during the proposed extended pilot period. In the future, the Exchange may propose certain changes to Rule 107B, which will be the subject of a 19(b)-4 rule filing and filed with the Commission. Until such time that the Exchange proposes changes to Rule 107B, the Exchange is requesting to extend the operation of Rule 107B until October 1, 2009."

The SEC published a notice of the NYSE proposal. Though both notices use the term "proposal," it appears that the NYSE may be using a streamlined procedure that puts the proposal into effect immediately, without the ordinary notice and comment period. (Notice and Comment period would be required for the SEC, a federal agency, unless circumstances justify rule-making now and comment later; I think that the NYSE itself--as a self-regulated organization--is bound only by its own SEC-approved regulations).

Here is what the NYSE had to say about the expedited procedure:

"The Exchange believes that good cause, consistent with the provisions of Rule 19b-4(f)(6), exists to justify making the rule change immediately effective. Rule 107B was immediately effective when filed as SR-NYSE-2008-1087 as it is similar to several other market maker rules and rebate programs of other market centers. The Exchange relied on the Commission’s “Rule Streamlining Guidance” to obtain immediate effectiveness of Rule 107B. This request for extension of Rule 107B extending the SLP pilot to October 1, 2009, should also receive immediate effectiveness treatment by the Commission."

"The Exchange believes that the proposed rule is non-controversial as it is a rule that has been in operation for approximately six (6) months and, as stated above, is similar to existing market maker and rebate rules of other market centers. Moreover, the NYSE believes that the rule has provided significant benefits to NYSE customers in the New Market Model.