80_FR_23390 80 FR 23310 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Modifying the Manner in Which It Calculates Volume, Liquidity and Quoting Thresholds Applicable to Billing on the Exchange on March 31, 2015

80 FR 23310 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Modifying the Manner in Which It Calculates Volume, Liquidity and Quoting Thresholds Applicable to Billing on the Exchange on March 31, 2015

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 80 (April 27, 2015)

Page Range23310-23312
FR Document2015-09627

Federal Register, Volume 80 Issue 80 (Monday, April 27, 2015)
[Federal Register Volume 80, Number 80 (Monday, April 27, 2015)]
[Notices]
[Pages 23310-23312]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-09627]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-74774; File No. SR-NYSEArca-2015-31]


Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change Modifying the 
Manner in Which It Calculates Volume, Liquidity and Quoting Thresholds 
Applicable to Billing on the Exchange on March 31, 2015

April 21, 2015.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given 
that on April 10, 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 and II 
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\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of the 
Substance of the Proposed Rule Change

    The Exchange proposes to modify the manner in which it calculates 
volume, liquidity and quoting thresholds applicable to billing on the 
Exchange in connection with an interruption in trading in certain 
securities on the Exchange on March 31, 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

[[Page 23311]]

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 Exchange proposes to modify the manner by which it calculates 
volume, liquidity and quoting thresholds applicable to billing on the 
Exchange due to issues relating to trading on the Exchange in certain 
securities on March 31, 2015.
    Specifically, on March 31, 2015, trading was unavailable in a range 
of symbols on the Exchange for a period of more than two hours, 
resulting in a more than 30% decrease in trading volume on the Exchange 
(Tape A, B and C securities combined) for that day as compared to 
average daily volume (``ADV'') on the Exchange for all of the prior 
trading days in March 2015. In addition, once trading and quoting 
resumed on the Exchange, market participants were advised to use market 
data from the Consolidated Tape Association (SIP) feed rather than from 
the NYSE Arcabook feed as the NYSE ArcaBook feed data may have been 
compromised as a result of the issues with trading.\3\ The Exchange 
believes that these issues impacted the ability of ETP Holders, 
including Market Makers, to engage in typical trading, quoting and 
liquidity in their assigned securities on March 31, 2015, leading to 
decreased quoting and trading volume compared to ADV and U.S. 
consolidated average daily volume (``CADV'') for the previous trading 
days combined in March 2015.
---------------------------------------------------------------------------

    \3\ See NYSE Arca Equities Trader Update, ``March 31, 2015, NYSE 
Arca Equities Trading Interruption in Tape B Symbol Range ``UTG-
ZSML,'' April 2, 2015, available at https://www.nyse.com/trader-update/history.
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    As provided for in the Exchange's Schedule of Fees and Charges for 
Exchange Services (``Equities Fee Schedule''), several of the 
Exchange's transaction fees and credits are based on trading, quoting 
and liquidity thresholds that ETP Holders must satisfy in order to 
qualify for the particular rates (i.e., percentage of CADV and ADV 
thresholds). The Exchange believes that the issues that occurred on 
March 31, 2015 impacted the ability of ETP Holders to meet these 
thresholds during March 2015.\4\ The Exchange therefore proposes to 
exclude March 31, 2015 from any CADV or ADV calculation described in 
the Equities Fee Schedule in order to reasonably ensure that an ETP 
Holder that would otherwise qualify for a particular threshold during 
March 2015, and the corresponding transaction rate, would not be 
negatively impacted by issues that occurred on March 31, 2015.
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    \4\ The Exchange notes that it does not perform the calculations 
necessary to determine whether these thresholds have been met until 
after the particular billing month has ended.
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    The proposed change is not otherwise intended to address any other 
issues relating to fees and the Exchange is not aware of any problems 
that ETP Holders would have in complying with the proposed change.
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 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.
---------------------------------------------------------------------------

    \5\ 15 U.S.C. 78f(b).
    \6\ 15 U.S.C. 78f(b)(4) and (5).
---------------------------------------------------------------------------

    The Exchange believes that the proposed rule change is reasonable 
because excluding March 31, 2015 from any CADV or ADV calculation 
described in the Equities Fee Schedule would reasonably ensure that an 
ETP Holder that would otherwise qualify for a particular threshold 
during March 2015, and the corresponding transaction rate, would not be 
negatively impacted by the issues that occurred on March 31, 2015. The 
Exchange also believes that the proposed rule change is equitable and 
not unfairly discriminatory because the issue with trading on the 
Exchange, which lasted more than two hours, resulted in significant 
decreases in trading volume and also impacted the ability of ETP 
Holders on the Exchange, including Market Makers, to engage in typical 
trading, quoting and liquidity in their assigned securities on March 
31, 2015, leading to decreased quoting and trading volume compared to 
ADVs and CADVs for the previous trading days in March 2015. Therefore, 
excluding March 31, 2015 from any CADV or ADV calculation described in 
the Equities Fee Schedule would reasonably ensure than any market 
participant on the Exchange would not be negatively impacted by the 
issues that occurred on March 31, 2015 with respect to billing on the 
Exchange. The proposed rule change is also equitable and not unfairly 
discriminatory because it would result in all market participants on 
the Exchange being treated equally by excluding March 31, 2015 from any 
CADV or ADV calculation described in the Equities Fee Schedule.
    Finally, the Exchange believes that it is subject to significant 
competitive forces, as described below in the Exchange's statement 
regarding the burden on competition.
    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 
believes that the proposed rule change will not impose any burden on 
competition that is not necessary or appropriate in furtherance of the 
purposes of the Act. The proposed rule change would treat all market 
participants on the Exchange equally by excluding March 31, 2015 from 
any CADV or ADV calculation described in the Equities Fee Schedule. 
Moreover, the Exchange believes that the proposed change would enhance 
competition between competing marketplaces by enabling the Exchange to 
exclude March 31, 2015 from any CADV or ADV calculation described in 
the Equities Fee Schedule.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78f(b)(8).
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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

    Because the proposed rule change does not (i) significantly affect 
the protection of investors or the public interest; (ii) impose any 
significant burden on competition; and (iii) become operative for 30 
days after the date of the filing, or such shorter time as the 
Commission may designate if consistent with the protection of investors 
and the public interest, the proposed rule change has become effective 
pursuant to Section 19(b)(3)(A) of the Act \8\ and Rule 19b-4(f)(6) 
thereunder.\9\
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    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 17 CFR 240.19b-4(f)(6). As required under Rule 19b-
4(f)(6)(iii), the Exchange provided the Commission with written 
notice of its intent to file the proposed rule change, along with a 
brief description and the text of the proposed rule change, at least 
five business days prior to the date of filing of the proposed rule 
change, or such shorter time as designated by the Commission.

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[[Page 23312]]

    A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the 
Act \10\ normally does not become operative for 30 days after the date 
of the filing. However, pursuant to Rule 19b-4(f)(6)(iii),\11\ the 
Commission may designate a shorter time if such action is consistent 
with the protection of investors and the public interest. The Exchange 
has asked the Commission to waive the 30-day operative delay so that 
the proposal may become operative immediately upon filing. The 
Commission believes that waiving the 30-day operative delay is 
consistent with the protection of investors and the public interest. As 
represented by the Exchange, excluding March 31, 2015 from any CADV or 
ADV calculation described in the Equities Fee Schedule would reasonably 
ensure that any market participant on the Exchange would not be 
negatively impacted by the issues that occurred on March 31, 2015 with 
respect to billing on the Exchange. Accordingly, waiving the 30-day 
operative delay would eliminate the potential for confusion among ETP 
Holders and the public regarding how the Exchange will calculate 
volume, liquidity, and quoting thresholds related to billing for 
activity on the Exchange during March 2015 and, more specifically, on 
March 31, 2015, and permit the Exchange to determine transaction fees 
and credits for ETP Holders in a timely manner after the end of the 
billing month of March 2015. Therefore, the Commission hereby 
designates the proposed rule change operative upon filing.\12\
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    \10\ 17 CFR 240.19b-4(f)(6).
    \11\ 17 CFR 240.19b-4(f)(6)(iii).
    \12\ For purposes only of waiving the 30-day operative delay, 
the Commission has considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of the 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 \13\ to determine whether the proposed 
rule should be approved or disapproved.
---------------------------------------------------------------------------

    \13\ 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-NYSEArca-2015-31 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 20549-1090.
    All submissions should refer to File Number SR-NYSEArca-2015-31. 
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-2015-31, and should be submitted on or before May 18, 2015.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\14\
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    \14\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2015-09627 Filed 4-24-15; 8:45 am]
 BILLING CODE 8011-01-P



                                               23310                          Federal Register / Vol. 80, No. 80 / Monday, April 27, 2015 / Notices

                                               get the best price for its customer and,                of investors; or (iii) otherwise in                      For the Commission, by the Division of
                                               therefore, the Exchange does not believe                furtherance of the purposes of the Act.               Trading and Markets, pursuant to delegated
                                               that the proposed changes provide any                   If the Commission takes such action, the              authority.19
                                               advantage or disadvantage to customers                  Commission shall institute proceedings                Jill M. Peterson,
                                               or the markets in general.                              to determine whether the proposed rule                Assistant Secretary.
                                                                                                       should be approved or disapproved.                    [FR Doc. 2015–09629 Filed 4–24–15; 8:45 am]
                                               B. Self-Regulatory Organization’s
                                                                                                                                                             BILLING CODE 8011–01–P
                                               Statement on Burden on Competition                      IV. Solicitation of Comments
                                                  The Exchange does not believe that                     Interested persons are invited to
                                               the proposed rule change will impose                    submit written data, views, and                       SECURITIES AND EXCHANGE
                                               any burden on competition that is not                   arguments concerning the foregoing,                   COMMISSION
                                               necessary or appropriate in furtherance                 including whether the proposed rule
                                                                                                                                                             [Release No. 34–74774; File No. SR–
                                               of the purposes of the Act. However, the                change is consistent with the Act.                    NYSEArca–2015–31]
                                               Exchange believes that Rule 810                         Comments may be submitted by any of
                                               currently imposes a burden on                           the following methods:                                Self-Regulatory Organizations; NYSE
                                               competition for the Exchange because it                                                                       Arca, Inc.; Notice of Filing and
                                               requires market makers that engage in                   Electronic Comments
                                                                                                                                                             Immediate Effectiveness of Proposed
                                               Other Business Activities to operate in                   • Use the Commission’s Internet                     Rule Change Modifying the Manner in
                                               a manner that the Exchange believes is                  comment form (http://www.sec.gov/                     Which It Calculates Volume, Liquidity
                                               more restrictive than necessary for the                 rules/sro.shtml); or                                  and Quoting Thresholds Applicable to
                                               protection of investors to the public                     • Send an email to rule-comments@                   Billing on the Exchange on March 31,
                                               interest. The Exchange believes that the                sec.gov. Please include File Number SR–               2015
                                               proposed rule change is pro-competitive                 ISE Gemini–2015–10 on the subject line.
                                               because it is consistent with how other                                                                       April 21, 2015.
                                                                                                       Paper Comments                                           Pursuant to Section 19(b)(1) of the
                                               national securities exchanges are
                                               currently interpreting their rules and                     • Send paper comments in triplicate                Securities Exchange Act of 1934 (the
                                               should provide greater flexibility to                   to Brent J. Fields, Secretary, Securities             ‘‘Act’’),1 and Rule 19b–4 thereunder,2
                                               allow member firms to make routing                      and Exchange Commission, 100 F Street                 notice is hereby given that on April 10,
                                               decisions based on the same                             NE., Washington, DC 20549–1090.                       2015, NYSE Arca, Inc. (the ‘‘Exchange’’
                                               information across multiple markets.                    All submissions should refer to File                  or ‘‘NYSE Arca’’) filed with the
                                                                                                       Number SR–ISE Gemini–2015–10. This                    Securities and Exchange Commission
                                               C. Self-Regulatory Organization’s                                                                             (the ‘‘Commission’’) the proposed rule
                                               Statement on Comments on the                            file number should be included on the
                                                                                                       subject line if email is used. To help the            change as described in Items I and II
                                               Proposed Rule Change Received From                                                                            below, which Items have been prepared
                                               Members, Participants or Others                         Commission process and review your
                                                                                                       comments more efficiently, please use                 by the self-regulatory organization. The
                                                 The Exchange has not solicited, and                   only one method. The Commission will                  Commission is publishing this notice to
                                               does not intend to solicit, comments on                 post all comments on the Commission’s                 solicit comments on the proposed rule
                                               this proposed rule change. The                          Internet Web site (http://www.sec.gov/                change from interested persons.
                                               Exchange has not received any                           rules/sro.shtml). Copies of the
                                               unsolicited written comments from                                                                             I. Self-Regulatory Organization’s
                                                                                                       submission, all subsequent                            Statement of the Terms of the Substance
                                               members or other interested parties.                    amendments, all written statements                    of the Proposed Rule Change
                                               III. Date of Effectiveness of the                       with respect to the proposed rule
                                                                                                       change that are filed with the                           The Exchange proposes to modify the
                                               Proposed Rule Change and Timing for
                                                                                                       Commission, and all written                           manner in which it calculates volume,
                                               Commission Action
                                                                                                       communications relating to the                        liquidity and quoting thresholds
                                                  The Exchange believes that the                                                                             applicable to billing on the Exchange in
                                               foregoing proposed rule change may                      proposed rule change between the
                                                                                                       Commission and any person, other than                 connection with an interruption in
                                               take effect upon filing with the                                                                              trading in certain securities on the
                                               Commission pursuant to Section                          those that may be withheld from the
                                                                                                       public in accordance with the                         Exchange on March 31, 2015. The text
                                               19(b)(3)(A) 17 of the Act and Rule 19b–                                                                       of the proposed rule change is available
                                               4(f)(6) thereunder 18 because the                       provisions of 5 U.S.C. 552, will be
                                                                                                       available for Web site viewing and                    on the Exchange’s Web site at
                                               foregoing proposed rule change does not                                                                       www.nyse.com, at the principal office of
                                               (i) significantly affect the protection of              printing in the Commission’s Public
                                                                                                       Reference Room, 100 F Street NE.,                     the Exchange, and at the Commission’s
                                               investors or the public interest, (ii)                                                                        Public Reference Room.
                                               impose any significant burden on                        Washington, DC 20549, on official
                                               competition, and (iii) become operative                 business days between the hours of                    II. Self-Regulatory Organization’s
                                               for 30 days after its filing date, or such              10:00 a.m. and 3:00 p.m. Copies of the                Statement of the Purpose of, and
                                               shorter time as the Commission may                      filing will also be available for                     Statutory Basis for, the Proposed Rule
                                               designate.                                              inspection and copying at the principal               Change
                                                  At any time within 60 days of the                    office of the Exchange. All comments
                                                                                                                                                               In its filing with the Commission, the
                                               filing of the proposed rule change, the                 received will be posted without change;
                                                                                                                                                             self-regulatory organization included
                                               Commission summarily may                                the Commission does not edit personal
                                                                                                                                                             statements concerning the purpose of,
Rmajette on DSK2VPTVN1PROD with NOTICES




                                               temporarily suspend such rule change if                 identifying information from
                                                                                                                                                             and basis for, the proposed rule change
                                               it appears to the Commission that such                  submissions. You should submit only
                                                                                                                                                             and discussed any comments it received
                                               action is: (i) Necessary or appropriate in              information that you wish to make
                                                                                                                                                             on the proposed rule change. The text
                                               the public interest; (ii) for the protection            available publicly. All submissions
                                                                                                       should refer to File Number SR–ISE                      19 17 CFR 200.30–3(a)(12).
                                                 17 15 U.S.C. 78s(b)(3)(A).                            Gemini–2015–10 and should be                            1 15 U.S.C. 78s(b)(1).
                                                 18 17 CFR 240.19b–4(f)(6).                            submitted on or before May 18, 2015.                    2 17 CFR 240.19b–4.




                                          VerDate Sep<11>2014   14:41 Apr 24, 2015   Jkt 235001   PO 00000   Frm 00058   Fmt 4703   Sfmt 4703   E:\FR\FM\27APN1.SGM    27APN1


                                                                              Federal Register / Vol. 80, No. 80 / Monday, April 27, 2015 / Notices                                                     23311

                                               of those statements may be examined at                  Exchange therefore proposes to exclude                also equitable and not unfairly
                                               the places specified in Item IV below.                  March 31, 2015 from any CADV or ADV                   discriminatory because it would result
                                               The Exchange has prepared summaries,                    calculation described in the Equities Fee             in all market participants on the
                                               set forth in sections A, B, and C below,                Schedule in order to reasonably ensure                Exchange being treated equally by
                                               of the most significant parts of such                   that an ETP Holder that would                         excluding March 31, 2015 from any
                                               statements.                                             otherwise qualify for a particular                    CADV or ADV calculation described in
                                                                                                       threshold during March 2015, and the                  the Equities Fee Schedule.
                                               A. Self-Regulatory Organization’s
                                                                                                       corresponding transaction rate, would                    Finally, the Exchange believes that it
                                               Statement of the Purpose of, and
                                                                                                       not be negatively impacted by issues                  is subject to significant competitive
                                               Statutory Basis for, the Proposed Rule
                                                                                                       that occurred on March 31, 2015.                      forces, as described below in the
                                               Change                                                    The proposed change is not otherwise                Exchange’s statement regarding the
                                               1. Purpose                                              intended to address any other issues                  burden on competition.
                                                                                                       relating to fees and the Exchange is not                 For these reasons, the Exchange
                                                  The Exchange proposes to modify the
                                                                                                       aware of any problems that ETP Holders                believes that the proposal is consistent
                                               manner by which it calculates volume,
                                                                                                       would have in complying with the                      with the Act.
                                               liquidity and quoting thresholds
                                                                                                       proposed change.
                                               applicable to billing on the Exchange                                                                         B. Self-Regulatory Organization’s
                                               due to issues relating to trading on the                2. Statutory Basis                                    Statement on Burden on Competition
                                               Exchange in certain securities on March                    The Exchange believes that the                       In accordance with Section 6(b)(8) of
                                               31, 2015.                                               proposed rule change is consistent with               the Act,7 the Exchange believes that the
                                                  Specifically, on March 31, 2015,                     Section 6(b) of the Act,5 in general, and             proposed rule change will not impose
                                               trading was unavailable in a range of                   furthers the objectives of Sections                   any burden on competition that is not
                                               symbols on the Exchange for a period of                 6(b)(4) and (5) of the Act,6 in particular,           necessary or appropriate in furtherance
                                               more than two hours, resulting in a                     because it provides for the equitable                 of the purposes of the Act. The
                                               more than 30% decrease in trading                       allocation of reasonable dues, fees, and              proposed rule change would treat all
                                               volume on the Exchange (Tape A, B and                   other charges among its members,                      market participants on the Exchange
                                               C securities combined) for that day as                  issuers and other persons using its                   equally by excluding March 31, 2015
                                               compared to average daily volume                        facilities and does not unfairly                      from any CADV or ADV calculation
                                               (‘‘ADV’’) on the Exchange for all of the                discriminate between customers,                       described in the Equities Fee Schedule.
                                               prior trading days in March 2015. In                    issuers, brokers or dealers.                          Moreover, the Exchange believes that
                                               addition, once trading and quoting                         The Exchange believes that the                     the proposed change would enhance
                                               resumed on the Exchange, market                         proposed rule change is reasonable                    competition between competing
                                               participants were advised to use market                 because excluding March 31, 2015 from                 marketplaces by enabling the Exchange
                                               data from the Consolidated Tape                         any CADV or ADV calculation described                 to exclude March 31, 2015 from any
                                               Association (SIP) feed rather than from                 in the Equities Fee Schedule would                    CADV or ADV calculation described in
                                               the NYSE Arcabook feed as the NYSE                      reasonably ensure that an ETP Holder                  the Equities Fee Schedule.
                                               ArcaBook feed data may have been                        that would otherwise qualify for a
                                               compromised as a result of the issues                   particular threshold during March 2015,               C. Self-Regulatory Organization’s
                                               with trading.3 The Exchange believes                    and the corresponding transaction rate,               Statement on Comments on the
                                               that these issues impacted the ability of               would not be negatively impacted by                   Proposed Rule Change Received from
                                               ETP Holders, including Market Makers,                   the issues that occurred on March 31,                 Members, Participants, or Others
                                               to engage in typical trading, quoting and               2015. The Exchange also believes that                   No written comments were solicited
                                               liquidity in their assigned securities on               the proposed rule change is equitable                 or received with respect to the proposed
                                               March 31, 2015, leading to decreased                    and not unfairly discriminatory because               rule change.
                                               quoting and trading volume compared                     the issue with trading on the Exchange,
                                               to ADV and U.S. consolidated average                                                                          III. Date of Effectiveness of the
                                                                                                       which lasted more than two hours,
                                               daily volume (‘‘CADV’’) for the previous                                                                      Proposed Rule Change and Timing for
                                                                                                       resulted in significant decreases in
                                               trading days combined in March 2015.                                                                          Commission Action
                                                                                                       trading volume and also impacted the
                                                  As provided for in the Exchange’s                    ability of ETP Holders on the Exchange,                 Because the proposed rule change
                                               Schedule of Fees and Charges for                        including Market Makers, to engage in                 does not (i) significantly affect the
                                               Exchange Services (‘‘Equities Fee                       typical trading, quoting and liquidity in             protection of investors or the public
                                               Schedule’’), several of the Exchange’s                  their assigned securities on March 31,                interest; (ii) impose any significant
                                               transaction fees and credits are based on               2015, leading to decreased quoting and                burden on competition; and (iii) become
                                               trading, quoting and liquidity                          trading volume compared to ADVs and                   operative for 30 days after the date of
                                               thresholds that ETP Holders must                        CADVs for the previous trading days in                the filing, or such shorter time as the
                                               satisfy in order to qualify for the                     March 2015. Therefore, excluding                      Commission may designate if consistent
                                               particular rates (i.e., percentage of                   March 31, 2015 from any CADV or ADV                   with the protection of investors and the
                                               CADV and ADV thresholds). The                           calculation described in the Equities Fee             public interest, the proposed rule
                                               Exchange believes that the issues that                  Schedule would reasonably ensure than                 change has become effective pursuant to
                                               occurred on March 31, 2015 impacted                     any market participant on the Exchange                Section 19(b)(3)(A) of the Act 8 and Rule
                                               the ability of ETP Holders to meet these                would not be negatively impacted by                   19b–4(f)(6) thereunder.9
                                               thresholds during March 2015.4 The
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                                                                                                       the issues that occurred on March 31,
                                                                                                                                                               7 15 U.S.C. 78f(b)(8).
                                                                                                       2015 with respect to billing on the
                                                 3 See NYSE Arca Equities Trader Update, ‘‘March                                                               8 15 U.S.C. 78s(b)(3)(A).
                                               31, 2015, NYSE Arca Equities Trading Interruption
                                                                                                       Exchange. The proposed rule change is                   9 17 CFR 240.19b–4(f)(6). As required under Rule
                                               in Tape B Symbol Range ‘‘UTG–ZSML,’’ April 2,                                                                 19b–4(f)(6)(iii), the Exchange provided the
                                               2015, available at https://www.nyse.com/trader-         thresholds have been met until after the particular   Commission with written notice of its intent to file
                                               update/history.                                         billing month has ended.                              the proposed rule change, along with a brief
                                                 4 The Exchange notes that it does not perform the       5 15 U.S.C. 78f(b).
                                                                                                                                                             description and the text of the proposed rule
                                               calculations necessary to determine whether these         6 15 U.S.C. 78f(b)(4) and (5).                                                                 Continued




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                                               23312                           Federal Register / Vol. 80, No. 80 / Monday, April 27, 2015 / Notices

                                                  A proposed rule change filed                         arguments concerning the foregoing,                   SECURITIES AND EXCHANGE
                                               pursuant to Rule 19b–4(f)(6) under the                  including whether the proposed rule                   COMMISSION
                                               Act 10 normally does not become                         change is consistent with the Act.
                                               operative for 30 days after the date of                 Comments may be submitted by any of                   [Release No. 34–74773; File No. SR–BX–
                                               the filing. However, pursuant to Rule                   the following methods:                                2015–022]
                                               19b–4(f)(6)(iii),11 the Commission may
                                               designate a shorter time if such action                 Electronic Comments                                   Self-Regulatory Organizations;
                                               is consistent with the protection of                      • Use the Commission’s Internet                     NASDAQ OMX BX, Inc.; Notice of Filing
                                               investors and the public interest. The                  comment form (http://www.sec.gov/                     and Immediate Effectiveness of a
                                               Exchange has asked the Commission to                    rules/sro.shtml); or                                  Proposed Rule Change To Amend
                                               waive the 30-day operative delay so that                                                                      Exchange Rules 7001, 7003 and 7018
                                                                                                         • Send an email to rule-comments@
                                               the proposal may become operative                       sec.gov. Please include File Number SR–               April 21, 2015.
                                               immediately upon filing. The                            NYSEArca–2015–31 on the subject line.                    Pursuant to Section 19(b)(1) of the
                                               Commission believes that waiving the
                                                                                                       Paper Comments                                        Securities Exchange Act of 1934
                                               30-day operative delay is consistent
                                                                                                                                                             (‘‘Act’’),1 and Rule 19b–4 thereunder,2
                                               with the protection of investors and the
                                                                                                          • Send paper comments in triplicate                notice is hereby given that on April 10,
                                               public interest. As represented by the
                                                                                                       to Brent J. Fields, Secretary, Securities             2015, NASDAQ OMX BX, Inc. (‘‘BX’’ or
                                               Exchange, excluding March 31, 2015
                                                                                                       and Exchange Commission, 100 F Street                 ‘‘Exchange’’) filed with the Securities
                                               from any CADV or ADV calculation
                                                                                                       NE., Washington, DC 20549–1090.                       and Exchange Commission (‘‘SEC’’ or
                                               described in the Equities Fee Schedule
                                                                                                          All submissions should refer to File               ‘‘Commission’’) the proposed rule
                                               would reasonably ensure that any
                                                                                                       Number SR–NYSEArca-2015–31. This                      change as described in Items I, II, and
                                               market participant on the Exchange
                                                                                                       file number should be included on the                 III below, which Items have been
                                               would not be negatively impacted by
                                                                                                       subject line if email is used. To help the            prepared by the Exchange. The
                                               the issues that occurred on March 31,
                                                                                                       Commission process and review your                    Commission is publishing this notice to
                                               2015 with respect to billing on the
                                                                                                       comments more efficiently, please use                 solicit comments on the proposed rule
                                               Exchange. Accordingly, waiving the 30-
                                                                                                       only one method. The Commission will                  change from interested persons.
                                               day operative delay would eliminate the
                                               potential for confusion among ETP                       post all comments on the Commission’s                 I. Self-Regulatory Organization’s
                                               Holders and the public regarding how                    Internet Web site (http://www.sec.gov/                Statement of the Terms of Substance of
                                               the Exchange will calculate volume,                     rules/sro.shtml). Copies of the                       the Proposed Rule Change
                                               liquidity, and quoting thresholds related               submission, all subsequent
                                                                                                       amendments, all written statements                       The Exchange proposes to amend BX
                                               to billing for activity on the Exchange                                                                       Rule 7001 trading rights fees and to no
                                               during March 2015 and, more                             with respect to the proposed rule
                                                                                                       change that are filed with the                        longer waive certain membership and
                                               specifically, on March 31, 2015, and                                                                          trading rights fees for BX members
                                               permit the Exchange to determine                        Commission, and all written
                                                                                                       communications relating to the                        seeking to participate solely in the BX
                                               transaction fees and credits for ETP                                                                          Options Market, to eliminate the
                                               Holders in a timely manner after the end                proposed rule change between the
                                                                                                       Commission and any person, other than                 Equities Regulatory Fee in BX Rule
                                               of the billing month of March 2015.                                                                           7003, as well as to amend the fee
                                               Therefore, the Commission hereby                        those that may be withheld from the
                                                                                                       public in accordance with the                         schedule under Exchange Rule 7018 and
                                               designates the proposed rule change                                                                           to correct a typographical error in the
                                               operative upon filing.12                                provisions of 5 U.S.C. 552, will be
                                                                                                       available for Web site viewing and                    rule.
                                                  At any time within 60 days of the                                                                             The text of the proposed rule change
                                               filing of the proposed rule change, the                 printing in the Commission’s Public
                                                                                                       Reference Room, 100 F Street NE.,                     is also available on the Exchange’s Web
                                               Commission summarily may                                                                                      site at http://
                                               temporarily suspend such rule change if                 Washington, DC 20549 on official
                                                                                                       business days between the hours of                    nasdaqomxbx.cchwallstreet.com, at the
                                               it appears to the Commission that such                                                                        principal office of the Exchange, and at
                                               action is necessary or appropriate in the               10:00 a.m. and 3:00 p.m. Copies of such
                                                                                                       filing also will be available for                     the Commission’s Public Reference
                                               public interest, for the protection of                                                                        Room.
                                               investors, or otherwise in furtherance of               inspection and copying at the principal
                                               the purposes of the Act. If the                         office of the Exchange. All comments                  II. Self-Regulatory Organization’s
                                               Commission takes such action, the                       received will be posted without change;               Statement of the Purpose of, and
                                               Commission shall institute proceedings                  the Commission does not edit personal                 Statutory Basis for, the Proposed Rule
                                               under Section 19(b)(2)(B) of the Act 13 to              identifying information from                          Change
                                               determine whether the proposed rule                     submissions. You should submit only
                                                                                                       information that you wish to make                       In its filing with the Commission, the
                                               should be approved or disapproved.                                                                            Exchange included statements
                                                                                                       available publicly. All submissions
                                               IV. Solicitation of Comments                            should refer to File Number SR–                       concerning the purpose of and basis for
                                                                                                       NYSEArca–2015–31, and should be                       the proposed rule change and discussed
                                                 Interested persons are invited to
                                                                                                       submitted on or before May 18, 2015.                  any comments it received on the
                                               submit written data, views, and
                                                                                                                                                             proposed rule change. The text of these
                                                                                                          For the Commission, by the Division of             statements may be examined at the
                                               change, at least five business days prior to the date   Trading and Markets, pursuant to delegated            places specified in Item IV below. The
Rmajette on DSK2VPTVN1PROD with NOTICES




                                               of filing of the proposed rule change, or such          authority.14
                                               shorter time as designated by the Commission.                                                                 Exchange has prepared summaries, set
                                                 10 17 CFR 240.19b–4(f)(6).                            Jill M. Peterson,                                     forth in sections A, B, and C below, of
                                                 11 17 CFR 240.19b–4(f)(6)(iii).                       Assistant Secretary.                                  the most significant aspects of such
                                                 12 For purposes only of waiving the 30-day
                                                                                                       [FR Doc. 2015–09627 Filed 4–24–15; 8:45 am]           statements.
                                               operative delay, the Commission has considered the
                                                                                                       BILLING CODE 8011–01–P
                                               proposed rule’s impact on efficiency, competition,
                                               and capital formation. See 15 U.S.C. 78c(f).                                                                    1 15   U.S.C. 78s(b)(1).
                                                 13 15 U.S.C. 78s(b)(2)(B).                              14 17   CFR 200.30–3(a)(12).                          2 17   CFR 240.19b–4.



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Document Created: 2015-12-16 08:29:35
Document Modified: 2015-12-16 08:29:35
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
FR Citation80 FR 23310 

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