80 FR 14187 - 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 Market Maker Posting Credit Tiers
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 52 (March 18, 2015)
Federal Register Volume 80, Issue 52 (March 18, 2015)
| Page Range | 14187-14189 | |
| FR Document | 2015-06125 |
[Federal Register Volume 80, Number 52 (Wednesday, March 18, 2015)] [Notices] [Pages 14187-14189] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-06125] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-74492 ; File No. SR-NYSEArca-2015-13] 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 Market Maker Posting Credit Tiers March 12, 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 March 2, 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. --------------------------------------------------------------------------- \1\ 15 U.S.C.78s(b)(1). \2\ 15 U.S.C. 78a. \3\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- 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 Market Maker Posting Credit Tiers. The Exchange proposes to implement the fee change effective March 2, 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. [[Page 14188]] 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 create an additional Market Maker Monthly Posting Credit Super Tier (``Super Tier II'') for Executions in Penny Pilot Issues and SPY. The Exchange proposes to implement the fee change effective March 2, 2015. Currently, the Exchange has a Base Posting Credit rate, and two additional tiers with higher credit rates for Market Makers that meet certain volume criteria, as outlined in the table below. Market Maker Monthly Posting Credit Super Tier and Qualifications for Executions in Penny Pilot Issues and SPY \8\ ---------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------- Tier Qualification basis (average Credit applied to Credit applied to electronic executions per day) posted electronic posted electronic market maker executions market maker executions in penny pilot issues in SPY (except SPY) ---------------------------------------------------------------------------------------------------------------- Base........................ ............... ............... ($0.28) ($0.28) Select Tier................. 30,000 ............... (0.32) (0.32) Contracts from Market Maker Posted Orders in All Issues. Super Tier.................. 80,000 200,000 (0.37) (0.39) Contracts from Contracts Market Maker Combined from Posted Orders all orders in in All Issues, Penny Pilot or Issues, all account types, with at least 100,000 Contracts from Posted Orders in Penny Pilot Issues*. ---------------------------------------------------------------------------------------------------------------- * Includes transaction volume from the Market Maker's affiliates. The Exchange is proposing to add another tier, Super Tier II, to provide an incentive for increased Market Maker activity on the Exchange. As with the Super Tier, the proposed Super Tier II qualification would be 200,000 contracts, but only contracts traded for the account of a Market Maker would count and at least 110,000 of those contracts would have to be from Posted Orders or quotes from both Penny Pilot and non-Penny Pilot issues. Unlike Super Tier, contract volume from a Market Maker's affiliate would not be counted for determining whether a member qualified for fees in Super Tier II. Market Makers who meet the threshold for Super Tier II would receive a credit of $0.42 applied to Posted Electronic Market Maker executions in Penny Pilot issues, including SPY. In addition, the Exchange proposes to make a non-substantive change to the title of the table to more accurately reflect its contents, such that it reads: ``MARKET MAKER MONTHLY POSTING CREDIT TIERS AND QUALIFICATIONS FOR EXECUTIONS IN PENNY PILOT ISSUES AND SPY.'' The Exchange is not proposing any other modifications to the Market Maker Posting Credits at this time. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with Section 6(b) of the Act,\4\ in general, and furthers the objectives of Sections 6(b)(4) and (5) of the Act,\5\ in particular, because it provides for the equitable allocation of reasonable dues, fees, and other charges among its members, issuers and other persons using its facilities and does not unfairly discriminate between customers, issuers, brokers or dealers. --------------------------------------------------------------------------- \4\ 15 U.S.C. 78f(b). \5\ 15 U.S.C. 78f(b)(4) and (5). --------------------------------------------------------------------------- The Exchange believes that the proposed change is reasonable because adding a new Super Tier II would encourage Market Makers to post greater volumes in all issues, including non-Penny Pilot issues, in order to qualify for the Super Tier II credit of $0.42. The proposed change is also reasonable because it is designed to attract higher volumes of Market Maker Posted Orders to the Exchange, which would benefit all market participants by offering greater price discovery, increased transparency and trading opportunities on the Exchange. Encouraging Market Makers to send higher volumes of orders to the Exchange would also contribute to the Exchange's depth of book as well as to the top of book liquidity. The Exchange also believes that the proposed credits are reasonable because they are within a range of similar credits available on other option exchanges.\6\ The Exchange believes that the proposed change is equitable and not unfairly discriminatory because it would apply to all Market Makers on an equal and non-discriminatory basis. The Exchange further believes that the proposed change is equitable and not unfairly discriminatory because it is reasonably related to the value to the Exchange's market quality associated with higher volumes in Market Maker Posted Orders, including both Penny Pilot issues and non-Penny Pilot issues. --------------------------------------------------------------------------- \6\ See, e.g., BATS Options Exchange fee schedule, available at, http://www.batsoptions.com/support/fee_schedule/ (providing a ($0.42) credit for certain market maker volume); NASDAQ Options Market fee schedule, available at, http://www.nasdaqtrader.com/Micro.aspx?id=optionsPricing (same). --------------------------------------------------------------------------- The Exchange believes the non-substantive change to the title of the table would benefit all market participants as it would add clarity to the fee schedule. 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,\7\ 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. Instead, the Exchange believes that the proposed change would continue to encourage competition, including by attracting additional liquidity to the Exchange, which would continue to make the Exchange a more competitive venue for, among other things, order execution and price discovery. The Exchange does not believe that the proposed change will impair the ability of Market Makers or competing order execution venues to maintain their [[Page 14189]] competitive standing in the financial markets. --------------------------------------------------------------------------- \7\ 15 U.S.C. 78f(b)(8). --------------------------------------------------------------------------- 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) of the Act \8\ and subparagraph (f)(2) of Rule 19b- 4 thereunder,\9\ because it establishes a due, fee, or other charge imposed by the Exchange. --------------------------------------------------------------------------- \8\ 15 U.S.C. 78s(b)(3)(A). \9\ 17 CFR 240.19b-4(f)(2). --------------------------------------------------------------------------- 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) of the Act \10\ to determine whether the proposed rule change should be approved or disapproved. --------------------------------------------------------------------------- \10\ 15 U.S.C. 78s(b)(2)(B). --------------------------------------------------------------------------- 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 CommentsUse 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-2015-13 on the subject line. Paper Comments Send paper comments in triplicate to Brent J. Fields, Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549. All submissions should refer to File Number SR-NYSEArca-2015-13. 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 such filing also will be available for inspection and copying at the principal office of the Exchange. 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-2015-13 and should be submitted on or before April 8, 2015. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\11\ --------------------------------------------------------------------------- \11\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Brent J. Fields, Secretary. [FR Doc. 2015-06125 Filed 3-17-15; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 80, No. 52 / Wednesday, March 18, 2015 / Notices 14187
is not necessary or appropriate in Paper Comments SECURITIES AND EXCHANGE
furtherance of the purposes of the Act, COMMISSION
because it applies to all Trading Permit • Send paper comments in triplicate
Holders. The Exchange believes this to Brent J. Fields, Secretary, Securities
[Release No. 34–74492 ; File No. SR–
proposal will not cause an unnecessary and Exchange Commission, 100 F Street
NYSEArca–2015–13]
burden on intermarket competition NE., Washington, DC 20549–1090.
because the electronic non-Penny Pilot All submissions should refer to File Self-Regulatory Organizations; NYSE
transaction fee and fee amount is similar Number SR–CBOE–2015–025. This file Arca, Inc.; Notice of Filing and
to fees assessed at other exchanges.13 number should be included on the Immediate Effectiveness of Proposed
Additionally, the proposal relating to Rule Change Amending the NYSE Arca
subject line if email is used. To help the
the FBW2 fee waivers only affect trading Options Fee Schedule Relating to
Commission process and review your
on CBOE. To the extent that the Market Maker Posting Credit Tiers
proposed changes make CBOE a more comments more efficiently, please use
attractive marketplace for market only one method. The Commission will
March 12, 2015.
participants at other exchanges, such post all comments on the Commission’s
Internet Web site (http://www.sec.gov/ Pursuant to Section 19(b)(1) 1 of the
market participants are welcome to
become CBOE market participants. rules/sro.shtml). Copies of the Securities Exchange Act of 1934 (the
submission, all subsequent ‘‘Act’’) 2 and Rule 19b–4 thereunder,3
C. Self-Regulatory Organization’s amendments, all written statements notice is hereby given that, on March 2,
Statement on Comments on the with respect to the proposed rule 2015, NYSE Arca, Inc. (the ‘‘Exchange’’
Proposed Rule Change Received From change that are filed with the or ‘‘NYSE Arca’’) filed with the
Members, Participants, or Others Commission, and all written Securities and Exchange Commission
The Exchange neither solicited nor communications relating to the (the ‘‘Commission’’) the proposed rule
received comments on the proposed proposed rule change between the change as described in Items I, II, and
rule change. Commission and any person, other than III below, which Items have been
those that may be withheld from the prepared by the self-regulatory
III. Date of Effectiveness of the organization. The Commission is
public in accordance with the
Proposed Rule Change and Timing for publishing this notice to solicit
Commission Action provisions of 5 U.S.C. 552, will be
available for Web site viewing and comments on the proposed rule change
The foregoing rule change has become printing in the Commission’s Public from interested persons.
effective pursuant to Section 19(b)(3)(A) Reference Room, 100 F Street NE., I. Self-Regulatory Organization’s
of the Act 14 and paragraph (f) of Rule Washington, DC 20549 on official
19b–4 15 thereunder. At any time within Statement of the Terms of Substance of
business days between the hours of the Proposed Rule Change
60 days of the filing of the proposed rule 10:00 a.m. and 3:00 p.m. Copies of the
change, the Commission summarily may filing also will be available for The Exchange proposes to amend the
temporarily suspend such rule change if inspection and copying at the principal NYSE Arca Options Fee Schedule (‘‘Fee
it appears to the Commission that such office of the Exchange. All comments Schedule’’) relating to Market Maker
action is necessary or appropriate in the received will be posted without change; Posting Credit Tiers. The Exchange
public interest, for the protection of
the Commission does not edit personal proposes to implement the fee change
investors, or otherwise in furtherance of
identifying information from effective March 2, 2015. The text of the
the purposes of the Act. If the
submissions. You should submit only proposed rule change is available on the
Commission takes such action, the
Commission will institute proceedings information that you wish to make Exchange’s Web site at www.nyse.com,
to determine whether the proposed rule available publicly. All submissions at the principal office of the Exchange,
change should be approved or should refer to File Number SR–CBOE– and at the Commission’s Public
disapproved. 2015–025 and should be submitted on Reference Room.
or before April 8, 2015.
IV. Solicitation of Comments II. Self-Regulatory Organization’s
For the Commission, by the Division of Statement of the Purpose of, and
Interested persons are invited to Trading and Markets, pursuant to delegated Statutory Basis for, the Proposed Rule
submit written data, views, and authority.16 Change
arguments concerning the foregoing, Brent J. Fields,
including whether the proposed rule Secretary. In its filing with the Commission, the
change is consistent with the Act. [FR Doc. 2015–06109 Filed 3–17–15; 8:45 am] self-regulatory organization included
Comments may be submitted by any of statements concerning the purpose of,
BILLING CODE 8011–01–P
the following methods: and basis for, the proposed rule change
Electronic Comments and discussed any comments it received
on the proposed rule change. The text
• Use the Commission’s Internet of those statements may be examined at
comment form (http://www.sec.gov/ the places specified in Item IV below.
rules/sro.shtml); or The Exchange has prepared summaries,
mstockstill on DSK4VPTVN1PROD with NOTICES
• Send an email to rule-comments@ set forth in sections A, B, and C below,
sec.gov. Please include File Number SR– of the most significant parts of such
CBOE–2015–025 on the subject line. statements.
13 See e.g., PHLX Pricing, Section II, Multiply
1 15 U.S.C.78s(b)(1).
Listed Options Fees.
14 15 U.S.C. 78s(b)(3)(A). 2 15 U.S.C. 78a.
15 17 CFR 240.19b–4(f). 16 17 CFR 200.30–3(a)(12). 3 17 CFR 240.19b–4.
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![Federal Register / Vol. 80, No. 52 / Wednesday, March 18, 2015 / Notices 14189
competitive standing in the financial Paper Comments the Investment Advisers Act of 1940
markets. • Send paper comments in triplicate (the ‘‘Advisers Act’’) and Rule 206(4)–
The Exchange notes that it operates in to Brent J. Fields, Secretary, Securities 5(e) thereunder.
a highly competitive market in which and Exchange Commission, 100 F Street
market participants can readily favor Applicant: T. Rowe Price Associates,
NE., Washington, DC 20549. Inc. (‘‘TRPA’’) and T. Rowe Price
competing venues. In such an All submissions should refer to File
environment, the Exchange must International Ltd (‘‘TRPIL’’ and, together
Number SR–NYSEArca–2015–13. This with TRPA, the ‘‘Advisers’’ or the
continually review, and consider file number should be included on the
adjusting, its fees and credits to remain ‘‘Applicants’’).
subject line if email is used. To help the Relevant Advisers Act Sections:
competitive with other exchanges. For Commission process and review your
the reasons described above, the Exemption requested under Section
comments more efficiently, please use 206A of the Advisers Act and Rule
Exchange believes that the proposed only one method. The Commission will
rule change reflects this competitive 206(4)–5(e) thereunder from Rule
post all comments on the Commission’s 206(4)–5(a)(1) under the Advisers Act.
environment. Internet Web site (http://www.sec.gov/ Summary of Application: The
C. Self-Regulatory Organization’s rules/sro.shtml). Copies of the Applicants request that the Commission
Statement on Comments on the submission, all subsequent issue an order under Section 206A of
Proposed Rule Change Received From amendments, all written statements the Advisers Act and Rule 206(4)–5(e)
Members, Participants or Others with respect to the proposed rule thereunder exempting them from Rule
change that are filed with the 206(4)–5(a)(1) under the Advisers Act to
No written comments were solicited Commission, and all written
or received with respect to the proposed permit Applicants to receive
communications relating to the compensation from certain government
rule change. proposed rule change between the entities for investment advisory services
III. Date of Effectiveness of the Commission and any person, other than provided to the government entities
Proposed Rule Change and Timing for those that may be withheld from the within the two-year period following a
Commission Action public in accordance with the contribution by a covered associate of
provisions of 5 U.S.C. 552, will be the Applicants to an official of the
The foregoing rule change is effective
available for Web site viewing and government entities.
upon filing pursuant to Section
printing in the Commission’s Public
19(b)(3)(A) of the Act 8 and DATES: Filing Dates: The application was
Reference Room, 100 F Street NE.,
subparagraph (f)(2) of Rule 19b–4 Washington, DC 20549, on official filed on May 6, 2014, and an amended
thereunder,9 because it establishes a business days between the hours of and restated application was filed on
due, fee, or other charge imposed by the 10:00 a.m. and 3:00 p.m. Copies of such October 29, 2014.
Exchange. filing also will be available for Hearing or Notification of Hearing: An
At any time within 60 days of the inspection and copying at the principal order granting the application will be
filing of such proposed rule change, the office of the Exchange. All comments issued unless the Commission orders a
Commission summarily may received will be posted without change; hearing. Interested persons may request
temporarily suspend such rule change if the Commission does not edit personal a hearing by writing to the
it appears to the Commission that such identifying information from Commission’s Secretary and serving
action is necessary or appropriate in the submissions. You should submit only Applicants with a copy of the request,
public interest, for the protection of information that you wish to make personally or by mail. Hearing requests
investors, or otherwise in furtherance of available publicly. All submissions should be received by the Commission
the purposes of the Act. If the should refer to File Number SR– by 5:30 p.m. on April 6, 2015, and
Commission takes such action, the NYSEArca–2015–13 and should be should be accompanied by proof of
Commission shall institute proceedings submitted on or before April 8, 2015. service on the Applicants, in the form
under Section 19(b)(2)(B) of the Act 10 to of an affidavit or, for lawyers, a
determine whether the proposed rule For the Commission, by the Division of certificate of service. Pursuant to Rule
Trading and Markets, pursuant to delegated
change should be approved or 0–5 under the Advisers Act, hearing
authority.11
disapproved. requests should state the nature of the
Brent J. Fields,
writer’s interest, any facts bearing upon
IV. Solicitation of Comments Secretary. the desirability of a hearing on the
Interested persons are invited to [FR Doc. 2015–06125 Filed 3–17–15; 8:45 am] matter, the reason for the request, and
submit written data, views and BILLING CODE 8011–01–P the issues contested. Persons may
arguments concerning the foregoing, request notification of a hearing by
including whether the proposed rule writing to the Commission’s Secretary.
change is consistent with the Act. SECURITIES AND EXCHANGE
ADDRESSES: Brent J. Fields, Secretary,
Comments may be submitted by any of COMMISSION
Securities and Exchange Commission,
the following methods: [Release No. IA–4046/803–00224] 100 F Street NE., Washington, DC
Electronic Comments 20549–1090. Applicants, TRPA and
T. Rowe Price Associates, Inc. and T. TRPIL, T. Rowe Price Associates, Inc.,
• Use the Commission’s Internet Rowe Price International Ltd; Notice of 100 East Pratt Street, Baltimore,
comment form (http://www.sec.gov/ Application Maryland 21202.
mstockstill on DSK4VPTVN1PROD with NOTICES
rules/sro.shtml); or
March 12, 2015. FOR FURTHER INFORMATION CONTACT: Kyle
• Send an email to rule-comments@
sec.gov. Please include File Number SR– AGENCY: Securities and Exchange R. Ahlgren, Senior Counsel, or Melissa
NYSEArca–2015–13 on the subject line. Commission (‘‘Commission’’). R. Harke, Branch Chief, at (202) 551–
ACTION: Notice of application for an 6825 (Division of Investment
8 15 U.S.C. 78s(b)(3)(A). exemptive order under Section 206A of Management, Chief Counsel’s Office).
9 17 CFR 240.19b–4(f)(2). SUPPLEMENTARY INFORMATION: The
10 15 U.S.C. 78s(b)(2)(B). 11 17 CFR 200.30–3(a)(12). following is a summary of the
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Document Created: 2018-02-21 09:39:39
Document Modified: 2018-02-21 09:39:39
| 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 14187 |
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