80 FR 22759 - Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Modifying the NYSE Amex Options Fee Schedule Relating to the Amex Customer Engagement Program
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 78 (April 23, 2015)
Federal Register Volume 80, Issue 78 (April 23, 2015)
| Page Range | 22759-22761 | |
| FR Document | 2015-09428 |
[Federal Register Volume 80, Number 78 (Thursday, April 23, 2015)] [Notices] [Pages 22759-22761] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-09428] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-74760; File No. SR-NYSEMKT-2015-29] Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Modifying the NYSE Amex Options Fee Schedule Relating to the Amex Customer Engagement Program April 17, 2015. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that on April 10, 2015, NYSE MKT LLC (the ``Exchange'' or ``NYSE MKT'') filed with the Securities and Exchange Commission (``SEC'' or ``Commission'') the proposed rule change as described in Items I, II, and III below, which Items have been prepared by the Exchange. 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\ 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 modify the NYSE Amex Options Fee Schedule (``Fee Schedule'') related to the Amex Customer Engagement (``ACE'') Program. The Exchange proposes to implement the fee change effective April 10, 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 the Statutory Basis for, the Proposed Rule Change 1. Purpose The purpose of this filing is to amend existing tiers and add a new tier to the ACE Program. Section I.E. of the Fee Schedule describes the ACE Program,\3\ which currently features four tiers expressed as a percentage of total industry Customer equity and ETF option average daily volume (``ADV'').\4\ Order Flow Providers (``OFPs'') receive per contract credits solely for Electronic Customer volume that the OFP, as agent, submits to the Exchange.\5\ The ACE Program offers the following two methods for OFPs to receive credits: --------------------------------------------------------------------------- \3\ See NYSE Amex Options Fee Schedule, available here, https://www.theice.com/publicdocs/nyse/markets/amex-options/NYSE_Amex_Options_Fee_Schedule.pdf. \4\ In calculating ADV, the Exchange utilizes monthly reports published by the OCC for equity options and ETF options that show cleared volume by account type. See OCC Monthly Statistics Reports, available here, http://www.theocc.com/webapps/monthly-volume-reports (including for equity options and ETF options volume, subtotaled by exchange, along with OCC total industry volume). The Exchange calculates the total OCC volume for equity and ETF options that clear in the Customer account type and divide this total by the number of trading days for that month (i.e., any day the Exchange is open for business). For example, in a month having 21 trading days where there were 252,000,000 equity option and ETF option contracts that cleared in the Customer account type, the calculated ADV would be 12,000,000 (252,000,000/21= 12,000,000). \5\ Electronic Customer volume is volume executed electronically through the Exchange System, on behalf of an individual or organization that is not a Broker-Dealer and who does not meet the definition of a Professional Customer. --------------------------------------------------------------------------- 1. By calculating, on a monthly basis, the average daily Customer contract volume an OFP executes Electronically on the Exchange as a percentage of total average daily industry Customer equity and ETF options volume or \6\; --------------------------------------------------------------------------- \6\ See supra n. 4 --------------------------------------------------------------------------- 2. By calculating, on a monthly basis, the average daily contract volume an OFP executes Electronically in all participant types (i.e., Customer, Firm, Broker-Dealer, NYSE Amex Options Market Maker, Non-NYSE Amex Options Market Maker, and Professional Customer) on the Exchange, as a [[Page 22760]] percentage of total average daily industry Customer equity and ETF option volume,\7\ with the further requirement that a specified percentage of the minimum volume required to qualify for the Tier must be Customer volume. --------------------------------------------------------------------------- \7\ Id. --------------------------------------------------------------------------- Upon reaching a higher tier, an OFP would receive for all eligible Customer volume the per contract credit associated with the highest tier achieved, retroactive to the first contract traded each month, regardless of which of the two calculation methods the OFP qualifies under.\8\ --------------------------------------------------------------------------- \8\ In the event that an OFP is eligible for credits under both calculation methods, the OFP would benefit from whichever criterion results in the highest per contract credit for all the OFP's eligible ADV. In calculating an OFP's Electronic volume, certain volumes are excluded (e.g., QCC trades). See Fee Schedule (Section I.E.), supra n. 3. --------------------------------------------------------------------------- The Exchange proposes to: (a) Lower the thresholds required to reach each tier; (b) introduce an additional tier, which would be an intermediate tier between current tiers 3 and 4; and (c) increase the credits available for the highest tier. Specifically, the Exchange proposes to modify the ACE Program tiers as illustrated in the table below, with proposed additions appearing underscored and proposed deletions appearing in brackets: -------------------------------------------------------------------------------------------------------------------------------------------------------- ACE Program--Standard options Credits payable on customer volume only ---------------------------------------------------------------------------------------------------------------------------------- Total electronic ADV (of which 20% or greater of the Tier Customer electronic ADV as a minimum qualifying volume 1 Year enhanced 3 Year enhanced % of industry customer for each tier must be Customer volume customer volume customer volume equity and ETF options ADV customer) as a % of credits credits credits industry customer equity and ETF options ADV -------------------------------------------------------------------------------------------------------------------------------------------------------- 1.................... 0.00% to 0.60% [0.75%]...... OR N/A........................ $0.00 $0.00 $0.00 2.................... >0.60% [0.75%] to 0.80% .......... N/A........................ (0.13) (0.13) (0.13) [1.00%]. 3.................... >0.80% [1.00%] to 1.25% .......... 1.50% to 2.50% [3.50%] of (0.14) (0.16) (0.18) [2.00%]. which 20% or greater of 1.50% must be Customer. 4....................1.25 to 1.75%.... .......... 2.50% to 3.50% (0.17) (0.19) (0.21) of which 20% or greater of 2.50% must be Customer. 5 [4]................ >1.75 [2.00%]............... .......... >3.50% of which 20% or (0.19) [(0.14)] (0.21) [(0.16)] (0.23) [(0.20)] greater of 3.5% must be Customer. -------------------------------------------------------------------------------------------------------------------------------------------------------- The proposed amendments to the ACE Program are designed to make each of the tiers more achievable, through reduced volume requirements, while enhancing the rebates. When combined, the Exchange believes the proposed changes to the ACE Program would 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. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with Section 6(b) of the Act,\9\ in general, and furthers the objectives of Sections 6(b)(4) and (5) of the Act,\10\ 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. --------------------------------------------------------------------------- \9\ 15 U.S.C. 78f(b). \10\ 15 U.S.C. 78f(b)(4) and (5). --------------------------------------------------------------------------- Overall, the Exchange believes that the proposed changes to the ACE Program are reasonable, equitable and not unfairly discriminatory because the credits offered are based on the amount of business transacted on the Exchange. As proposed the ACE Program continues to enable an OFP to earn enhanced credits if the OFP has an Affiliated NYSE Amex Options Market Maker (i.e., the entities share ``70% common ownership'' \11\) that has committed to either of the proposed Prepayment Programs, per Section I.D. of the Fee Schedule (each an ``Affiliated OFP''). As the Exchange explained in further detail when it introduced the ACE Program in January 2015, it is not unreasonable, inequitable or unfairly discriminatory to offer to offer [sic] Affiliated OFPs enhanced discounts or credits for several reasons.\12\ In short, the Exchange believes that offering the ACE Program enhanced credits recognizes that such Affiliated OFPs have a shared economic interest with its affiliated Market Maker, which is subject to heightened obligations and costs.\13\ By contrast, non-Affiliated OFPs do not share economic interests with a Market Maker that is subject to higher obligations and costs. In addition, each non-Affiliated OFP has the opportunity to establish such an affiliation by several means, including but not limited to, a business combination (e.g., merger or acquisition) or the establishment of their own market making operation, which as a Broker-Dealer, each OFP has the potential to establish. --------------------------------------------------------------------------- \11\ See Fee Schedule, Key Terms and Definitions, supra n. 3 (defining Affiliates as ``a person that directly or indirectly through one or more intermediaries, has a 70% common ownership with, the person specified''). \12\ See Securities Exchange Act Release No. 74086 (January 16, 2015), 80 FR 3701, 3711-12 (January 23, 2015) (SR-NYSEMKT-2015-04) (Notice of Filing of fee change to adopt the ACE Program). \13\ See, e.g., Rule 925.1NY(c) (setting forth requirement that Marker Makers maintain active two-sided markets in the classes in which they are appointed, and must meet certain minimum quoting requirements). See also Fee Schedule, Sections III.A., C. and D., supra n. 3 (setting forth higher fixed costs imposed on Marker Makers that are not assessed upon other market participants, including relatively more expensive ATP fees applicable to Market Makers, Rights Fees, and Premium Product Fees). --------------------------------------------------------------------------- In addition, the Exchange believes that the proposed amendments to the ACE Program are reasonable, equitable and not unfairly discriminatory because they would enhance the incentives to OFPs to transact Customer orders on the Exchange, which would benefit all market participants by providing more trading opportunities and tighter spreads, even to those market participants that do not participate in the ACE Program. Additionally, the [[Page 22761]] Exchange believes the proposed changes to the ACE Program are consistent with the Act because they may attract greater volume and liquidity to the Exchange, which would benefit all market participants by providing tighter quoting and better prices, all of which perfects the mechanism for a free and open market and national market system. 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,\14\ 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. The Exchange believes the proposed amendments to the ACE Program are pro-competitive as the proposed reduced volume thresholds and increased rebates may encourage OFPs to direct Customer order flow to the Exchange and any resulting increase in volume and liquidity to the Exchange would benefit all of Exchange participants through increased opportunities to trade as well as enhancing price discovery. --------------------------------------------------------------------------- \14\ 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) \15\ of the Act and subparagraph (f)(2) of Rule 19b-4 \16\ thereunder, because it establishes a due, fee, or other charge imposed by the Exchange. --------------------------------------------------------------------------- \15\ 15 U.S.C. 78s(b)(3)(A). \16\ 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) \17\ of the Act to determine whether the proposed rule change should be approved or disapproved. --------------------------------------------------------------------------- \17\ 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 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-NYSEMKT-2015-29 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-NYSEMKT-2015-29. 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 offices 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-NYSEMKT-2015- 29, and should be submitted on or before May 14, 2015. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\18\ --------------------------------------------------------------------------- \18\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Brent J. Fields, Secretary. [FR Doc. 2015-09428 Filed 4-22-15; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 80, No. 78 / Thursday, April 23, 2015 / Notices 22759
summarily may temporarily suspend available publicly. All submissions and basis for, the proposed rule change
such rule change if it appears to the should refer to File Number SR–MIAX– and discussed any comments it received
Commission that such action is 2015–27, and should be submitted on or on the proposed rule change. The text
necessary or appropriate in the public May 14, 2015. of those statements may be examined at
interest, for the protection of investors, For the Commission, by the Division of the places specified in Item IV below.
or otherwise in furtherance of the Trading and Markets, pursuant to delegated The Exchange has prepared summaries,
purposes of the Act. If the Commission authority.13 set forth in sections A, B, and C below,
takes such action, the Commission shall Brent J. Fields, of the most significant parts of such
institute proceedings to determine Secretary. statements.
whether the proposed rule should be [FR Doc. 2015–09426 Filed 4–22–15; 8:45 am]
approved or disapproved. A. Self-Regulatory Organization’s
BILLING CODE 8011–01–P Statement of the Purpose of, and the
IV. Solicitation of Comments Statutory Basis for, the Proposed Rule
Interested persons are invited to Change
SECURITIES AND EXCHANGE
submit written data, views, and 1. Purpose
COMMISSION
arguments concerning the foregoing,
including whether the proposed rule [Release No. 34–74760; File No. SR– The purpose of this filing is to amend
change is consistent with the Act. NYSEMKT–2015–29] existing tiers and add a new tier to the
Comments may be submitted by any of ACE Program.
the following methods: Self-Regulatory Organizations; NYSE Section I.E. of the Fee Schedule
MKT LLC; Notice of Filing and describes the ACE Program,3 which
Electronic Comments Immediate Effectiveness of Proposed currently features four tiers expressed as
• Use the Commission’s Internet Rule Change Modifying the NYSE a percentage of total industry Customer
comment form (http://www.sec.gov/ Amex Options Fee Schedule Relating equity and ETF option average daily
rules/sro.shtml); or to the Amex Customer Engagement volume (‘‘ADV’’).4 Order Flow Providers
• Send an email to rule-comments@ Program (‘‘OFPs’’) receive per contract credits
sec.gov. Please include File Number SR– solely for Electronic Customer volume
April 17, 2015.
MIAX–2015–27 on the subject line. that the OFP, as agent, submits to the
Pursuant to Section 19(b)(1) of the
Paper Comments Exchange.5 The ACE Program offers the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 following two methods for OFPs to
• Send paper comments in triplicate receive credits:
to Secretary, Securities and Exchange notice is hereby given that on April 10,
1. By calculating, on a monthly basis,
Commission, 100 F Street NE., 2015, NYSE MKT LLC (the ‘‘Exchange’’
the average daily Customer contract
Washington, DC 20549–1090. or ‘‘NYSE MKT’’) filed with the
volume an OFP executes Electronically
All submissions should refer to File Securities and Exchange Commission
on the Exchange as a percentage of total
Number SR–MIAX–2015–27. This file (‘‘SEC’’ or ‘‘Commission’’) the proposed
average daily industry Customer equity
number should be included on the rule change as described in Items I, II,
and ETF options volume or 6;
subject line if email is used. To help the and III below, which Items have been
prepared by the Exchange. The 2. By calculating, on a monthly basis,
Commission process and review your the average daily contract volume an
comments more efficiently, please use Commission is publishing this notice to
solicit comments on the proposed rule OFP executes Electronically in all
only one method. The Commission will participant types (i.e., Customer, Firm,
post all comments on the Commission’s change from interested persons.
Broker-Dealer, NYSE Amex Options
Internet Web site (http://www.sec.gov/ I. Self-Regulatory Organization’s Market Maker, Non-NYSE Amex
rules/sro.shtml). Copies of the Statement of the Terms of Substance of Options Market Maker, and Professional
submission, all subsequent the Proposed Rule Change Customer) on the Exchange, as a
amendments, all written statements
The Exchange proposes to modify the
with respect to the proposed rule 3 See NYSE Amex Options Fee Schedule,
NYSE Amex Options Fee Schedule
change that are filed with the available here, https://www.theice.com/publicdocs/
(‘‘Fee Schedule’’) related to the Amex nyse/markets/amex-options/NYSE_Amex_Options_
Commission, and all written
Customer Engagement (‘‘ACE’’) Fee_Schedule.pdf.
communications relating to the
Program. The Exchange proposes to 4 In calculating ADV, the Exchange utilizes
proposed rule change between the monthly reports published by the OCC for equity
implement the fee change effective
Commission and any person, other than options and ETF options that show cleared volume
April 10, 2015. The text of the proposed by account type. See OCC Monthly Statistics
those that may be withheld from the
rule change is available on the Reports, available here, http://www.theocc.com/
public in accordance with the
Exchange’s Web site at www.nyse.com, webapps/monthly-volume-reports (including for
provisions of 5 U.S.C. 552, will be equity options and ETF options volume, subtotaled
at the principal office of the Exchange,
available for Web site viewing and by exchange, along with OCC total industry
and at the Commission’s Public volume). The Exchange calculates the total OCC
printing in the Commission’s Public
Reference Room. volume for equity and ETF options that clear in the
Reference Room, 100 F Street NE., Customer account type and divide this total by the
Washington, DC 20549 on official II. Self-Regulatory Organization’s number of trading days for that month (i.e., any day
business days between the hours of Statement of the Purpose of, and the Exchange is open for business). For example, in
10:00 a.m. and 3:00 p.m. Copies of such Statutory Basis for, the Proposed Rule a month having 21 trading days where there were
Change 252,000,000 equity option and ETF option contracts
mstockstill on DSK4VPTVN1PROD with NOTICES
filing also will be available for that cleared in the Customer account type, the
inspection and copying at the principal In its filing with the Commission, the calculated ADV would be 12,000,000 (252,000,000/
offices of the Exchange. All comments self-regulatory organization included 21= 12,000,000).
received will be posted without change; statements concerning the purpose of,
5 Electronic Customer volume is volume executed
the Commission does not edit personal electronically through the Exchange System, on
behalf of an individual or organization that is not
identifying information from 13 17 CFR 200.30–3(a)(12). a Broker-Dealer and who does not meet the
submissions. You should submit only 1 15 U.S.C. 78s(b)(1). definition of a Professional Customer.
information that you wish to make 2 17 CFR 240.19b–4. 6 See supra n. 4
VerDate Sep<11>2014 18:53 Apr 22, 2015 Jkt 235001 PO 00000 Frm 00059 Fmt 4703 Sfmt 4703 E:\FR\FM\23APN1.SGM 23APN1](https://thefederalregister.org/doc/80_FR_22837/page/1.svg)
![22760 Federal Register / Vol. 80, No. 78 / Thursday, April 23, 2015 / Notices
percentage of total average daily associated with the highest tier (c) increase the credits available for
industry Customer equity and ETF achieved, retroactive to the first contract the highest tier.
option volume,7 with the further traded each month, regardless of which Specifically, the Exchange proposes to
requirement that a specified percentage of the two calculation methods the OFP modify the ACE Program tiers as
of the minimum volume required to qualifies under.8
illustrated in the table below, with
qualify for the Tier must be Customer The Exchange proposes to:
(a) Lower the thresholds required to proposed additions appearing
volume. underscored and proposed deletions
reach each tier;
Upon reaching a higher tier, an OFP (b) introduce an additional tier, which appearing in brackets:
would receive for all eligible Customer would be an intermediate tier between
volume the per contract credit current tiers 3 and 4; and
ACE Program—Standard options Credits payable on customer volume only
Total electronic ADV (of which
Customer electronic 20% or greater of the minimum
Tier ADV as a % of indus- 1 Year enhanced 3 Year enhanced
qualifying volume for each tier Customer volume
try customer equity customer volume customer volume
must be customer) as a % of in- credits
and ETF options credits credits
dustry customer equity and ETF
ADV options ADV
1 ....... 0.00% to 0.60% OR N/A ............................................. $0.00 $0.00 $0.00
[0.75%].
2 ....... >0.60% [0.75%] to ................ N/A ............................................. (0.13) (0.13) (0.13)
0.80% [1.00%].
3 ....... >0.80% [1.00%] to ................ 1.50% to 2.50% [3.50%] of (0.14) (0.16) (0.18)
1.25% [2.00%]. which 20% or greater of
1.50% must be Customer.
4 ....... >1.25 to 1.75% ......... ................ >2.50% to 3.50% of which 20% (0.17) (0.19) (0.21)
or greater of 2.50% must be
Customer.
5 [4] .. >1.75 [2.00%] ........... ................ >3.50% of which 20% or greater (0.19) [(0.14)] (0.21) [(0.16)] (0.23) [(0.20)]
of 3.5% must be Customer.
The proposed amendments to the Overall, the Exchange believes that affiliated Market Maker, which is
ACE Program are designed to make each the proposed changes to the ACE subject to heightened obligations and
of the tiers more achievable, through Program are reasonable, equitable and costs.13 By contrast, non-Affiliated OFPs
reduced volume requirements, while not unfairly discriminatory because the do not share economic interests with a
enhancing the rebates. When combined, credits offered are based on the amount Market Maker that is subject to higher
the Exchange believes the proposed of business transacted on the Exchange. obligations and costs. In addition, each
changes to the ACE Program would As proposed the ACE Program non-Affiliated OFP has the opportunity
attract more volume and liquidity to the continues to enable an OFP to earn to establish such an affiliation by
Exchange, which would benefit all enhanced credits if the OFP has an several means, including but not limited
Exchange participants through Affiliated NYSE Amex Options Market to, a business combination (e.g., merger
increased opportunities to trade as well Maker (i.e., the entities share ‘‘70% or acquisition) or the establishment of
as enhancing price discovery. common ownership’’ 11) that has their own market making operation,
committed to either of the proposed which as a Broker-Dealer, each OFP has
2. Statutory Basis
Prepayment Programs, per Section I.D. the potential to establish.
The Exchange believes that the of the Fee Schedule (each an ‘‘Affiliated In addition, the Exchange believes
proposed rule change is consistent with OFP’’). As the Exchange explained in that the proposed amendments to the
Section 6(b) of the Act,9 in general, and further detail when it introduced the ACE Program are reasonable, equitable
furthers the objectives of Sections ACE Program in January 2015, it is not and not unfairly discriminatory because
6(b)(4) and (5) of the Act,10 in particular, unreasonable, inequitable or unfairly they would enhance the incentives to
because it provides for the equitable discriminatory to offer to offer [sic] OFPs to transact Customer orders on the
allocation of reasonable dues, fees, and Affiliated OFPs enhanced discounts or Exchange, which would benefit all
other charges among its members, credits for several reasons.12 In short, market participants by providing more
issuers and other persons using its the Exchange believes that offering the trading opportunities and tighter
facilities and does not unfairly ACE Program enhanced credits spreads, even to those market
discriminate between customers, recognizes that such Affiliated OFPs participants that do not participate in
issuers, brokers or dealers. have a shared economic interest with its the ACE Program. Additionally, the
7 Id. 11 See Fee Schedule, Key Terms and Definitions, two-sided markets in the classes in which they are
supra n. 3 (defining Affiliates as ‘‘a person that
mstockstill on DSK4VPTVN1PROD with NOTICES
8 Inthe event that an OFP is eligible for credits appointed, and must meet certain minimum
under both calculation methods, the OFP would directly or indirectly through one or more quoting requirements). See also Fee Schedule,
benefit from whichever criterion results in the intermediaries, has a 70% common ownership Sections III.A., C. and D., supra n. 3 (setting forth
with, the person specified’’).
highest per contract credit for all the OFP’s eligible 12 See Securities Exchange Act Release No. 74086
higher fixed costs imposed on Marker Makers that
ADV. In calculating an OFP’s Electronic volume, are not assessed upon other market participants,
(January 16, 2015), 80 FR 3701, 3711–12 (January
certain volumes are excluded (e.g., QCC trades). See 23, 2015) (SR–NYSEMKT–2015–04) (Notice of including relatively more expensive ATP fees
Fee Schedule (Section I.E.), supra n. 3. Filing of fee change to adopt the ACE Program). applicable to Market Makers, Rights Fees, and
9 15 U.S.C. 78f(b). 13 See, e.g., Rule 925.1NY(c) (setting forth Premium Product Fees).
10 15 U.S.C. 78f(b)(4) and (5). requirement that Marker Makers maintain active
VerDate Sep<11>2014 18:53 Apr 22, 2015 Jkt 235001 PO 00000 Frm 00060 Fmt 4703 Sfmt 4703 E:\FR\FM\23APN1.SGM 23APN1](https://thefederalregister.org/doc/80_FR_22837/page/2.svg)
![Federal Register / Vol. 80, No. 78 / Thursday, April 23, 2015 / Notices 22761
Exchange believes the proposed changes fee, or other charge imposed by the filing also will be available for
to the ACE Program are consistent with Exchange. inspection and copying at the principal
the Act because they may attract greater At any time within 60 days of the offices of the Exchange. All comments
volume and liquidity to the Exchange, filing of such proposed rule change, the received will be posted without change;
which would benefit all market Commission summarily may the Commission does not edit personal
participants by providing tighter temporarily suspend such rule change if identifying information from
quoting and better prices, all of which it appears to the Commission that such submissions. You should submit only
perfects the mechanism for a free and action is necessary or appropriate in the information that you wish to make
open market and national market public interest, for the protection of available publicly. All submissions
system. investors, or otherwise in furtherance of
should refer to File Number SR–
the purposes of the Act. If the
For these reasons, the Exchange NYSEMKT–2015–29, and should be
Commission takes such action, the
believes that the proposal is consistent submitted on or before May 14, 2015.
Commission shall institute proceedings
with the Act.
under Section 19(b)(2)(B) 17 of the Act to For the Commission, by the Division of
B. Self-Regulatory Organization’s determine whether the proposed rule Trading and Markets, pursuant to delegated
Statement on Burden on Competition change should be approved or authority.18
disapproved. Brent J. Fields,
In accordance with Section 6(b)(8) of
IV. Solicitation of Comments Secretary.
the Act,14 the Exchange does not believe
that the proposed rule change will [FR Doc. 2015–09428 Filed 4–22–15; 8:45 am]
Interested persons are invited to
impose any burden on competition that submit written data, views, and BILLING CODE 8011–01–P
is not necessary or appropriate in arguments concerning the foregoing,
furtherance of the purposes of the Act. including whether the proposed rule
The Exchange believes the proposed change is consistent with the Act. SECURITIES AND EXCHANGE
amendments to the ACE Program are Comments may be submitted by any of COMMISSION
pro-competitive as the proposed the following methods:
reduced volume thresholds and [File No. 500–1]
Electronic Comments
increased rebates may encourage OFPs
to direct Customer order flow to the • Use the Commission’s Internet ForceField Energy Inc.; Order of
Exchange and any resulting increase in comment form (http://www.sec.gov/ Suspension of Trading
volume and liquidity to the Exchange rules/sro.shtml); or
would benefit all of Exchange • Send an email to rule-comments@ April 21, 2015.
participants through increased sec.gov. Please include File Number SR– It appears to the Securities and
opportunities to trade as well as NYSEMKT–2015–29 on the subject line. Exchange Commission that there is a
enhancing price discovery. Paper Comments lack of current and accurate information
The Exchange notes that it operates in concerning the securities of ForceField
• Send paper comments in triplicate
a highly competitive market in which to Secretary, Securities and Exchange Energy Inc. (‘‘FNRG’’) because of
market participants can readily favor Commission, 100 F Street NE., concerns about the adequacy and
competing venues. In such an Washington, DC 20549–1090. accuracy of information available to
environment, the Exchange must investors concerning the funding of
All submissions should refer to File
continually review, and consider recent articles and promotions touting
Number SR–NYSEMKT–2015–29. This
adjusting, its fees and credits to remain file number should be included on the FNRG, including for example in articles
competitive with other exchanges. For subject line if email is used. To help the published on December 9, 2014 and
the reasons described above, the Commission process and review your February 26, 2015. Questions have also
Exchange believes that the proposed comments more efficiently, please use arisen concerning potential
rule change reflects this competitive only one method. The Commission will manipulative activity of FNRG’s stock,
environment. post all comments on the Commission’s including transactions between
C. Self-Regulatory Organization’s Internet Web site (http://www.sec.gov/ February 25 and April 2, 2015 and the
Statement on Comments on the rules/sro.shtml). Copies of the funding of those transactions. FNRG is
Proposed Rule Change Received From submission, all subsequent a Nevada corporation with its principal
Members, Participants, or Others amendments, all written statements office in New York, New York. It is
with respect to the proposed rule listed on NASDAQ under the symbol
No written comments were solicited change that are filed with the FNRG.
or received with respect to the proposed Commission, and all written The Commission is of the opinion that
rule change. communications relating to the the public interest and the protection of
III. Date of Effectiveness of the proposed rule change between the investors require a suspension of trading
Proposed Rule Change and Timing for Commission and any person, other than in the securities of the above-listed
Commission Action those that may be withheld from the company.
public in accordance with the
The foregoing rule change is effective provisions of 5 U.S.C. 552, will be Therefore, it is ordered, pursuant to
Section 12(k) of the Securities Exchange
mstockstill on DSK4VPTVN1PROD with NOTICES
upon filing pursuant to Section available for Web site viewing and
19(b)(3)(A) 15 of the Act and printing in the Commission’s Public Act of 1934, that trading in the
subparagraph (f)(2) of Rule 19b–4 16 Reference Room, 100 F Street NE., securities of the above-listed company is
thereunder, because it establishes a due, Washington, DC 20549 on official suspended for the period from 9:30 a.m.
business days between the hours of EDT on April 21, 2015 through 11:59
14 15 U.S.C. 78f(b)(8). 10:00 a.m. and 3:00 p.m. Copies of such p.m. EDT, on May 4, 2015.
15 15 U.S.C. 78s(b)(3)(A).
16 17 CFR 240.19b–4(f)(2). 17 15 U.S.C. 78s(b)(2)(B). 18 17 CFR 200.30–3(a)(12).
VerDate Sep<11>2014 18:53 Apr 22, 2015 Jkt 235001 PO 00000 Frm 00061 Fmt 4703 Sfmt 4703 E:\FR\FM\23APN1.SGM 23APN1](https://thefederalregister.org/doc/80_FR_22837/page/3.svg)
Document Created: 2015-12-16 08:41:23
Document Modified: 2015-12-16 08:41:23
| 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 22759 |
2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR