80 FR 12651 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending the NYSE Arca Options Fee Schedule Relating to Strategy Executions

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 46 (March 10, 2015)

Page Range		12651-12652
FR Document		2015-05483
Federal Register, Volume 80 Issue 46 (Tuesday, March 10, 2015)
[Federal Register Volume 80, Number 46 (Tuesday, March 10, 2015)]
[Notices]
[Pages 12651-12652]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-05483]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-74436; File No. SR-NYSEARCA-2015-09]


Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change Amending the NYSE 
Arca Options Fee Schedule Relating to Strategy Executions

March 4, 2015.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby 
given that, on February 24, 2015, NYSE Arca, Inc. (the ``Exchange'' or 
``NYSE Arca'') filed with the Securities and Exchange Commission (the 
``Commission'') the proposed rule change as described in Items I, II, 
and III below, which Items have been prepared by the self-regulatory 
organization. The Commission is publishing this notice to solicit 
comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C.78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend the NYSE Arca Options Fee Schedule 
(``Fee Schedule'') relating to Strategy Executions. The Exchange 
proposes to implement the change on March 1, 2015. The text of the 
proposed rule change is available on the Exchange's Web site at 
www.nyse.com, at the principal office of the Exchange, and at the 
Commission's Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the self-regulatory organization 
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 those 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.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The purpose of this filing is to modify the Exchange's Limit on 
Fees on Options Strategy Executions (``Strategy Cap''). Currently, the 
Exchange imposes a Strategy Cap of $750 on transaction fees for certain 
Strategy Executions executed in standard option contracts on the same 
trading day in the same option class. The Exchange is proposing to 
lower the $750 Strategy Cap to $700.\4\ The Exchange proposes to 
implement the $700 Strategy Cap on March 1, 2015.
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    \4\ Transaction fees on Strategy Executions are further capped 
at $25,000 per month per initiating firm. The Exchange is not 
proposing to modify this $25,000 monthly cap. Mini options are 
excluded from the Strategy Cap. See Fee Schedule, available at, 
https://www.nyse.com/publicdocs/nyse/markets/arca-options/NYSE_Arca_Options_Fee_Schedule.pdf.
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    Strategy Executions that are eligible for the Strategy Cap would 
continue to be (a) reversals and conversions, (b) box spreads, (c) 
short stock interest spreads, (d) merger spreads, and (e) jelly rolls. 
As is the case today, Royalty fees associated with Strategy Executions 
on Index and Exchange Traded Funds would not be included in the 
calculation of the Strategy Cap, but would be passed through to trading 
participants on the Strategy Executions on a pro-rata basis. Similarly, 
manual Broker Dealer and Firm Proprietary Strategy trades that do not 
reach the $700 Strategy Cap would continue to be billed at $0.25 per 
contract.
    The use of these Strategy Executions benefits all market 
participants by increasing liquidity in general and allowing 
significant and complex trading interest to be brought together to 
enhance liquidity. By encouraging this type of business on the 
Exchange, the increased liquidity benefits all market participants. The 
Exchange believes the proposed change would continue to incentivize 
market participants to trade on the Exchange by capping option 
transaction charges related to various Strategy Executions.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act,\5\ in general, and furthers the 
objectives of Sections 6(b)(4) and (5) of the Act,\6\ in particular, 
because it would provide for the equitable allocation of reasonable 
dues, fees, and other charges among its members, issuers and other 
persons

[[Page 12652]]

using its facilities and does not unfairly discriminate between 
customers, issuers, brokers or dealers.
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    \5\ 15 U.S.C. 78f(b).
    \6\ 15 U.S.C. 78f(b)(4) and (5).
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    The Exchange believes that the proposed change is reasonable, 
equitable and not unfairly discriminatory because the reduced fee cap 
is designed to attract more volume and liquidity to the Exchange, which 
would benefit all Exchange participants through increased opportunities 
to trade as well as enhancing price discovery.
    Further, because the proposed change applies equally to all non-
Customers who may participate in Strategy Executions, the Exchange 
believes the reduced Strategy Cap is reasonable, equitable and not 
unfairly discriminatory. The Exchange notes that Customers are not 
charged transaction fees when participating in Strategy Executions and 
therefore are not subject to the Strategy Cap.
    Finally, the Exchange notes that the proposed $700 Strategy Cap is 
equivalent to the cap placed on various executions strategies by other 
exchanges.\7\
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    \7\ See, e.g., NASDAQ OMX PHLX LLC fee schedule, available at, 
http://www.nasdaqtrader.com/Micro.aspx?id=phlxpricing (capping at 
$700 transaction fees for all reversals, conversions, box spreads, 
and jelly roll strategies executed on the same trading day in the 
same option class); Chicago Board Options Exchange, Inc. fee 
schedule, available at, http://www.cboe.com/publish/feeschedule/CBOEFeeSchedule.pdf (capping at $700 transaction fees for all 
reversals, conversions, and jelly roll strategies executed on the 
same trading day in the same option class).
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    For these reasons, the Exchange believes that the proposal is 
consistent with the Act.

B. Self-Regulatory Organization's Statement on Burden on Competition

    In accordance with Section 6(b)(8) of the Act,\8\ 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 because the proposed changes apply uniformly to all 
Exchange members that incur transaction charges. To the contrary, the 
proposed change would continue to encourage members to transact 
strategies on the Exchange because the proposed fee caps are 
competitive with fee caps at other options exchanges.
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    \8\ 15 U.S.C. 78f(b)(8).
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    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 credits to remain competitive with other 
exchanges. For the reasons described above, the Exchange believes that 
the proposed rule change reflects this competitive environment.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    No written comments were solicited or received with respect to the 
proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The foregoing rule change is effective upon filing pursuant to 
Section 19(b)(3)(A) \9\ of the Act and subparagraph (f)(2) of Rule 19b-
4 \10\ thereunder, because it establishes a due, fee, or other charge 
imposed by the Exchange.
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    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 17 CFR 240.19b-4(f)(2).
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    At any time within 60 days of the filing of such proposed rule 
change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is necessary or 
appropriate in the public interest, for the protection of investors, or 
otherwise in furtherance of the purposes of the Act. If the Commission 
takes such action, the Commission shall institute proceedings under 
Section 19(b)(2)(B) \11\ of the Act to determine whether the proposed 
rule change should be approved or disapproved.
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    \11\ 15 U.S.C. 78s(b)(2)(B).
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IV. Solicitation of Comments

    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:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-NYSEARCA-2015-09 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities 
and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.

All submissions should refer to File Number SR-NYSEARCA-2015-09. This 
file number should be included on the subject line if email is used.
    To help the Commission process and review your comments more 
efficiently, please use only one method. The Commission will post all 
comments on the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, 
all written statements with respect to the proposed rule change that 
are filed with the Commission, and all written communications relating 
to the proposed rule change between the Commission and any person, 
other than those that may be withheld from the public in accordance 
with the provisions of 5 U.S.C. 552, will be available for Web site 
viewing and printing in the Commission's Public Reference Room, 100 F 
Street NE., Washington, DC 20549, on official business days between the 
hours of 10:00 a.m. and 3:00 p.m. Copies of the filing will also be 
available for inspection and copying at the NYSE's principal office and 
on its Internet Web site at www.nyse.com. All comments received will be 
posted without change; the Commission does not edit personal 
identifying information from submissions. You should submit only 
information that you wish to make available publicly. All submissions 
should refer to File Number SR-NYSEARCA-2015-09, and should be 
submitted on or before March 31, 2015.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12\
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    \12\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2015-05483 Filed 3-9-15; 8:45 am]
 BILLING CODE 8011-01-P
Federal Register / Vol. 80, No. 46 / Tuesday, March 10, 2015 / Notices 12651

licensees choosing to pursue that option SECURITIES AND EXCHANGE A. Self-Regulatory Organization’s
as a strategy that makes it unlikely that COMMISSION Statement of the Purpose of, and
a licensee would need to vent from the Statutory Basis for, the Proposed Rule
drywell. [Release No. 34–74436; File No. SR– Change
On December 10, 2014, NEI submitted NYSEARCA–2015–09] 1. Purpose
NEI 13–02, ‘‘Industry Guidance for The purpose of this filing is to modify
Compliance with Order EA–13–109,’’ Self-Regulatory Organizations; NYSE
the Exchange’s Limit on Fees on
Rev. 0E2 (ADAMS Accession No. Arca, Inc.; Notice of Filing and
Options Strategy Executions (‘‘Strategy
ML1434A374) to assist nuclear power Immediate Effectiveness of Proposed Cap’’). Currently, the Exchange imposes
licensees with the identification of Rule Change Amending the NYSE Arca a Strategy Cap of $750 on transaction
measures needed to comply with the Options Fee Schedule Relating to fees for certain Strategy Executions
requirements of Order EA–13–109 Strategy Executions executed in standard option contracts
regarding reliable hardened March 4, 2015.
on the same trading day in the same
containment vents capable of operation option class. The Exchange is proposing
under severe accident conditions. The Pursuant to Section 19(b)(1) 1 of the to lower the $750 Strategy Cap to $700.4
NEI document includes guidance for Securities Exchange Act of 1934 (the The Exchange proposes to implement
implementing order requirements for ‘‘Act’’) 2 and Rule 19b–4 thereunder,3 the $700 Strategy Cap on March 1, 2015.
both Phase 1 and Phase 2, including the notice is hereby given that, on February Strategy Executions that are eligible
industry’s proposed approach to use the 24, 2015, NYSE Arca, Inc. (the for the Strategy Cap would continue to
‘‘Exchange’’ or ‘‘NYSE Arca’’) filed with be (a) reversals and conversions, (b) box
SAWA and SAWM strategies to control
the Securities and Exchange spreads, (c) short stock interest spreads,
the water levels in the suppression pool
Commission (the ‘‘Commission’’) the (d) merger spreads, and (e) jelly rolls. As
and maintain capabilities to address is the case today, Royalty fees associated
over-pressure conditions without a proposed rule change as described in
Items I, II, and III below, which Items with Strategy Executions on Index and
severe accident drywell vent. As Exchange Traded Funds would not be
described in the draft ISG, some issues have been prepared by the self-
included in the calculation of the
remain the subject of ongoing regulatory organization. The
Strategy Cap, but would be passed
discussions as part of finalizing the Commission is publishing this notice to
through to trading participants on the
guidance. These include: (1) solicit comments on the proposed rule Strategy Executions on a pro-rata basis.
Availability of power and functional change from interested persons. Similarly, manual Broker Dealer and
requirements for the SAWA-related I. Self-Regulatory Organization’s Firm Proprietary Strategy trades that do
installed and portable equipment, (2) Statement of the Terms of Substance of not reach the $700 Strategy Cap would
duration of time for preservation of the the Proposed Rule Change continue to be billed at $0.25 per
wetwell vent for the SAWM strategy, contract.
and (3) alternate control of containment The Exchange proposes to amend the The use of these Strategy Executions
conditions during recovery from the NYSE Arca Options Fee Schedule (‘‘Fee benefits all market participants by
severe accident. The NRC intends to Schedule’’) relating to Strategy increasing liquidity in general and
continue discussions with stakeholders Executions. The Exchange proposes to allowing significant and complex
prior to finalizing the ISG for Phase 2 of implement the change on March 1, trading interest to be brought together to
2015. The text of the proposed rule enhance liquidity. By encouraging this
the order and endorsing, with
change is available on the Exchange’s type of business on the Exchange, the
clarifications and exceptions if increased liquidity benefits all market
necessary, the methodologies described Web site at www.nyse.com, at the
participants. The Exchange believes the
in the industry guidance document NEI principal office of the Exchange, and at proposed change would continue to
13–02, Rev. 0E2. the Commission’s Public Reference incentivize market participants to trade
Room. on the Exchange by capping option
Dated at Rockville, Maryland, this 2nd day
of March 2015. II. Self-Regulatory Organization’s transaction charges related to various
For the Nuclear Regulatory Commission. Statement of the Purpose of, and Strategy Executions.
Jack R. Davis, Statutory Basis for, the Proposed Rule 2. Statutory Basis
Director, Japan Lessons-Learned Division, Change The Exchange believes that the
Office of Nuclear Reactor Regulation. proposed rule change is consistent with
In its filing with the Commission, the
[FR Doc. 2015–05436 Filed 3–9–15; 8:45 am]
self-regulatory organization included Section 6(b) of the Act,5 in general, and
BILLING CODE 7590–01–P
statements concerning the purpose of, furthers the objectives of Sections
6(b)(4) and (5) of the Act,6 in particular,
and basis for, the proposed rule change
because it would provide for the
and discussed any comments it received
equitable allocation of reasonable dues,
on the proposed rule change. The text fees, and other charges among its
of those statements may be examined at members, issuers and other persons
the places specified in Item IV below.
The Exchange has prepared summaries, 4 Transaction fees on Strategy Executions are
mstockstill on DSK4VPTVN1PROD with NOTICES

set forth in sections A, B, and C below, further capped at $25,000 per month per initiating
of the most significant parts of such firm. The Exchange is not proposing to modify this
$25,000 monthly cap. Mini options are excluded
statements. from the Strategy Cap. See Fee Schedule, available
at, https://www.nyse.com/publicdocs/nyse/markets/
arca-options/NYSE_Arca_Options_Fee_
1 15 U.S.C.78s(b)(1). Schedule.pdf.
2 15 U.S.C. 78a. 5 15 U.S.C. 78f(b).
3 17 CFR 240.19b–4. 6 15 U.S.C. 78f(b)(4) and (5).

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12652 Federal Register / Vol. 80, No. 46 / Tuesday, March 10, 2015 / Notices

using its facilities and does not unfairly the reasons described above, the To help the Commission process and
discriminate between customers, Exchange believes that the proposed review your comments more efficiently,
issuers, brokers or dealers. rule change reflects this competitive please use only one method. The
The Exchange believes that the environment. Commission will post all comments on
proposed change is reasonable, the Commission’s Internet Web site
C. Self-Regulatory Organization’s
equitable and not unfairly (http://www.sec.gov/rules/sro.shtml).
Statement on Comments on the
discriminatory because the reduced fee Copies of the submission, all subsequent
Proposed Rule Change Received From
cap is designed to attract more volume amendments, all written statements
Members, Participants, or Others
and liquidity to the Exchange, which with respect to the proposed rule
would benefit all Exchange participants No written comments were solicited change that are filed with the
through increased opportunities to trade or received with respect to the proposed Commission, and all written
as well as enhancing price discovery. rule change. communications relating to the
Further, because the proposed change III. Date of Effectiveness of the proposed rule change between the
applies equally to all non-Customers Proposed Rule Change and Timing for Commission and any person, other than
who may participate in Strategy Commission Action those that may be withheld from the
Executions, the Exchange believes the public in accordance with the
reduced Strategy Cap is reasonable, The foregoing rule change is effective provisions of 5 U.S.C. 552, will be
equitable and not unfairly upon filing pursuant to Section available for Web site viewing and
discriminatory. The Exchange notes that 19(b)(3)(A) 9 of the Act and printing in the Commission’s Public
Customers are not charged transaction subparagraph (f)(2) of Rule 19b–4 10 Reference Room, 100 F Street NE.,
fees when participating in Strategy thereunder, because it establishes a due, Washington, DC 20549, on official
Executions and therefore are not subject fee, or other charge imposed by the business days between the hours of
to the Strategy Cap. Exchange. 10:00 a.m. and 3:00 p.m. Copies of the
At any time within 60 days of the filing will also be available for
Finally, the Exchange notes that the
filing of such proposed rule change, the inspection and copying at the NYSE’s
proposed $700 Strategy Cap is
Commission summarily may principal office and on its Internet Web
equivalent to the cap placed on various
temporarily suspend such rule change if site at www.nyse.com. All comments
executions strategies by other
it appears to the Commission that such received will be posted without change;
exchanges.7
For these reasons, the Exchange action is necessary or appropriate in the the Commission does not edit personal
public interest, for the protection of identifying information from
believes that the proposal is consistent
investors, or otherwise in furtherance of submissions. You should submit only
with the Act.
the purposes of the Act. If the information that you wish to make
B. Self-Regulatory Organization’s Commission takes such action, the available publicly. All submissions
Statement on Burden on Competition Commission shall institute proceedings should refer to File Number SR–
In accordance with Section 6(b)(8) of under Section 19(b)(2)(B) 11 of the Act to NYSEARCA–2015–09, and should be
the Act,8 the Exchange does not believe determine whether the proposed rule submitted on or before March 31, 2015.
that the proposed rule change will change should be approved or
disapproved. For the Commission, by the Division of
impose any burden on competition that Trading and Markets, pursuant to delegated
is not necessary or appropriate in IV. Solicitation of Comments authority.12
furtherance of the purposes of the Act Interested persons are invited to Brent J. Fields,
because the proposed changes apply submit written data, views, and Secretary.
uniformly to all Exchange members that arguments concerning the foregoing, [FR Doc. 2015–05483 Filed 3–9–15; 8:45 am]
incur transaction charges. To the including whether the proposed rule BILLING CODE 8011–01–P
contrary, the proposed change would change is consistent with the Act.
continue to encourage members to Comments may be submitted by any of
transact strategies on the Exchange the following methods: SECURITIES AND EXCHANGE
because the proposed fee caps are COMMISSION
competitive with fee caps at other Electronic Comments
[Release No. 34–74432; File No. SR–OCC–
options exchanges. • Use the Commission’s Internet 2015–03]
The Exchange notes that it operates in comment form (http://www.sec.gov/
a highly competitive market in which rules/sro.shtml); or Self-Regulatory Organizations; The
market participants can readily favor • Send an email to rule-comments@ Options Clearing Corporation; Notice
competing venues. In such an sec.gov. Please include File Number SR– of Filing of Proposed Rule Change
environment, the Exchange must NYSEARCA–2015–09 on the subject Concerning the Execution of an
continually review, and consider line. Agreement for Clearing and Settlement
adjusting, its fees and credits to remain Services Between OCC and NASDAQ
competitive with other exchanges. For Paper Comments
Futures, Inc.
• Send paper comments in triplicate
7 See, e.g., NASDAQ OMX PHLX LLC fee to Secretary, Securities and Exchange March 4, 2015.
schedule, available at, http:// Commission, 100 F Street NE., Pursuant to Section 19(b)(1) of the
www.nasdaqtrader.com/Micro.aspx?id=phlxpricing Washington, DC 20549–1090.
(capping at $700 transaction fees for all reversals,
Securities Exchange Act of 1934
mstockstill on DSK4VPTVN1PROD with NOTICES

conversions, box spreads, and jelly roll strategies All submissions should refer to File (‘‘Act’’) 1 and Rule 19b–4 thereunder 2
executed on the same trading day in the same Number SR–NYSEARCA–2015–09. This notice is hereby given that on February
option class); Chicago Board Options Exchange, Inc. file number should be included on the 20, 2015, The Options Clearing
fee schedule, available at, http://www.cboe.com/
publish/feeschedule/CBOEFeeSchedule.pdf
subject line if email is used. Corporation (‘‘OCC’’) filed with the
(capping at $700 transaction fees for all reversals,
9 15 U.S.C. 78s(b)(3)(A). 12 17 CFR 200.30–3(a)(12).
conversions, and jelly roll strategies executed on
the same trading day in the same option class). 10 17 CFR 240.19b–4(f)(2). 1 15 U.S.C. 78s(b)(1).
8 15 U.S.C. 78f(b)(8). 11 15 U.S.C. 78s(b)(2)(B). 2 17 CFR 240.19b–4.

VerDate Sep<11>2014 17:53 Mar 09, 2015 Jkt 235001 PO 00000 Frm 00036 Fmt 4703 Sfmt 4703 E:\FR\FM\10MRN1.SGM 10MRN1
Document Created: 2018-02-21 09:34:46
Document Modified: 2018-02-21 09:34:46
Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Notices
FR Citation		80 FR 12651