80 FR 25755 - Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Modifying Its Rules To Provide for the Use of Ports That Provide Connectivity to the Exchange's Trading Systems Solely for the Cancellation or “Takedown” of Quotes and Changes to the NYSE Amex Options Fee Schedule Related to This Quote Takedown Service
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 86 (May 5, 2015)
Federal Register Volume 80, Issue 86 (May 5, 2015)
| Page Range | 25755-25758 | |
| FR Document | 2015-10410 |
[Federal Register Volume 80, Number 86 (Tuesday, May 5, 2015)] [Notices] [Pages 25755-25758] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-10410] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-74840; File No. SR-NYSEMKT-2015-31] Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Modifying Its Rules To Provide for the Use of Ports That Provide Connectivity to the Exchange's Trading Systems Solely for the Cancellation or ``Takedown'' of Quotes and Changes to the NYSE Amex Options Fee Schedule Related to This Quote Takedown Service April 29, 2015. Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given that on April 17, 2015, NYSE MKT LLC (the ``Exchange'' or ``NYSE MKT'') filed with the Securities and Exchange Commission (the ``Commission'') the proposed rule change as described in Items I and II below, which have been prepared by the self-regulatory organization. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 15 U.S.C. 78a. \3\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to modify its rules to provide for the use of ports that provide connectivity to the Exchange's trading systems solely for the cancellation or ``takedown'' of quotes. In addition, the proposed rule change reflects changes to the NYSE Amex Options Fee Schedule (``Fee Schedule'') related to this quote takedown service. The text of the proposed rule change is available on the Exchange's Web site at www.nyse.com, at the principal office of the Exchange, and at the Commission's Public Reference Room. II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the self-regulatory organization included statements concerning the purpose of, and basis for, the proposed rule change and discussed any comments it received on the proposed rule change. The text of those statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant parts of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to modify its rules to provide for the use of ports that provide connectivity to the Exchange's trading systems solely for the cancellation or ``takedown'' of quotes. In addition, the proposed rule change reflects changes to the Fee Schedule related to this quote takedown service. Order/Quote Entry Ports The Exchange currently makes available to ATP Holders order/quote entry ports for connectivity to Exchange trading systems (each an ``order/quote entry port''). ATP Holders may be authorized to utilize order/quote entry ports for option activity on NYSE Amex Options and incur monthly Port Fees. Currently, the Exchange charges $450 per month, per order/quote entry port for the first 40 ports and $150 per month, per order/quote entry port for any additional ports in excess of 40 (i.e., ports 41 and greater).\4\ --------------------------------------------------------------------------- \4\ See Fee Schedule, available at, https://www.nyse.com/publicdocs/nyse/markets/amex-options/NYSE_Amex_Options_Fee_Schedule.pdf. Unutilized order/quote entry ports that connect to the Exchange via its backup datacenter are considered established for backup purposes and are not subject to Port Fees. In addition, for purpose of calculating the number of order/quote entry ports, the Exchange shall aggregate the ports of Affiliates. See id. --------------------------------------------------------------------------- While order/quote entry ports may be used by ATP Holders registered as Market Makers to both enter and cancel or remove quotes, Market Makers may dedicate certain ports solely to the removal of quotes, i.e., a ``quote takedown port,'' \5\ and, until now, the [[Page 25756]] Exchange has treated such dedicated quote takedown ports the same as order/quote entry port for Port Fee purposes. --------------------------------------------------------------------------- \5\ See Trader Update regarding Options Pre-Trade and Post-Trade Risk Controls, available at, https://www.nyse.com/publicdocs/nyse/markets/amex-options/US_Options_Risk_Controls_Client_Document.pdf (announcing availability of ports dedicated to quote takedown to minimize latency for quote takedowns). --------------------------------------------------------------------------- Quote Takedown Ports The Exchange is proposing to modify its rules to provide ports specifically dedicated to quote cancellation or ``quote takedown'' (each a ``Quote Takedown Port'') as a service distinct from order/quote entry ports, which may be used both for entering quotes or orders and removing or cancelling quotes. The proposed Quote Takedown Ports would be designed to assist ATP Holders registered as Marker Makers in the management of, and risk control over, their quotes, particularly if they have a large number of options issues in their appointment. For example, if a Market Maker detects market indications that may influence the direction or bias of its quotes, the Market Maker may attempt to cancel all of its quotes in a number of classes, thereby avoiding unintended executions, while it evaluates the direction of the market. Thus, to reduce uncertainty, the Marker Maker may submit to the Exchange a ``quote takedown'' message through a dedicated Quote Takedown Port for the prompt removal of quotes. By entering a quote takedown message through a dedicated Quote Takedown Port, a Market Maker may reduce its exposure to risk because of heavy quote traffic- induced latency. The Exchange proposes to modify the Fee Schedule to provide that certain Quote Takedown Ports would not be subject to Port Fees. Specifically, for each order/quote entry port utilized, the Exchange proposes to allow Market Makers to utilize, free of charge, one Quote Takedown Port. Because Quote Takedown Ports would not be available for quote or order submission, the Exchange is proposing to allow one Quote Takedown Port free of charge for every order/quote entry port that a Market Maker utilizes. In other words, provided a Market Maker does not exceed a 1-to-1 ratio of order/quote entry port-to-Quote Takedown Port, the Quote Takedown Port(s) would be free (the ``1-to-1 ratio''). However, a Market Maker that exceeds the 1-to-1 ratio would be charged for additional Quote Takedown Ports. For example, a Market Maker with thirty-five (35) order/quote entry ports and forty-two (42) Quote Takedown Ports would have forty-two (42) ports subject to charge because the Exchange would charge for the 35 order/quote entry ports and the seven Quote Takedown Ports that exceed the 1-1 ratio (42-35=7). The Exchange would not charge for the first 35 Quote Takedown Ports because those ports would meet the 1-to-1 ratio. Similarly, the Exchange would not include those Quote Takedown Ports that meet the 1-to-1 ratio to determine a Market Maker's total number of ports for purposes of calculating Port Fees. As noted above, the Exchange charges $450 per month, per port for the first forty ports, and $150 per month for each additional port in excess of forty. Thus, using the example above, the Exchange would not count the thirty- five (35) Quote Takedown Ports (which align with the 35 order/quote entry ports) against the Market Maker's total number of ports utilized, but would count seven (7) additional Quote Takedown Ports. Thus, because the Market Maker would have forty-two (42) chargeable ports, the Market Maker's total monthly port fee would be $18,300 (i.e., 40 ports x $450 per port = $18,000; and 2 ports x $150 per port $300). The Exchange notes that options Market Makers typically require more than forty (40) order/quote entry ports, in part to satisfy their obligation to maintain continuous two-sided markets in their appointed classes. Thus, the Exchange believes that the proposed change would enhance the ability of Market Maker firms to manage quotes, quote traffic, and their quoting obligations by eliminating fees for certain Quote Takedown Ports, which function as risk management tools rather than trade opportunity tools. The Exchange believes this proposed change would permit the Exchange to remain competitive with other exchanges with respect to fees charged for ports. To reflect the proposed change, the Exchange proposes to add to the Fee Schedule, in Section V. (Technology & System Access Fees), subsection A. (Port Fees), a new category for ``Quote Takedown Ports,'' together with the following language: ``For each order/quote entry port utilized, NYSE Amex Options Market Makers may utilize, free of charge, one port dedicated to quote cancellation or `quote takedown,' which port(s) will not be included in the count of order/quote entry ports utilized. Any quote takedown port utilized by a NYSE Amex Options Market Maker that is in excess of the number of order/quote entry ports utilized will be counted and charged as an order/quote entry port.'' The Exchange also proposes to make clear that the Quote Takedown Ports of Affiliates, like order/quote entry ports, are aggregated.\6\ Finally, to add clarity regarding Port Fees, the Exchange proposes a non-substantive change to the layout of the table setting forth Port Fees, which the Exchange believes will simplify and add transparency to the Fee Schedule. --------------------------------------------------------------------------- \6\ See proposed Fee Schedule, Section V.A. (``For purpose of calculating the number of order/quote entry ports and quote takedown ports, the Exchange will aggregate the ports of Affiliates.''). --------------------------------------------------------------------------- The Exchange believes the proposal to offer Quote Takedown Ports would ensure a fair and reasonable use of resources by eliminating charges to Market Makers for certain Quote Takedown Ports (described above), which are used to control and manage risk exposure to the benefit of all marker participants. 2. Statutory Basis The proposed rule change is consistent with Section 6(b) \7\ of the Securities Exchange Act of 1934 (the ``Act''), in general, and furthers the objectives of Section 6(b)(5),\8\ in particular, in that it is designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in facilitating transactions in securities, and to remove impediments to and perfect the mechanism of a free and open market and a national market system. --------------------------------------------------------------------------- \7\ 15 U.S.C. 78f(b). \8\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- The Exchange believes that the proposed rule change would promote just and equitable principles of trade and remove impediments to and perfect the mechanism of a free and open market because offering ATP Holders registered as Market Makers designated Quote Takedown Ports would enhance Market Makers' ability to manage quotes, quote traffic, and their quoting obligations, which would, in turn, improve their risk controls to the benefit of all participants. The Exchange believes that the Quote Takedown Ports would foster cooperation and coordination with persons engaged in facilitating transactions in securities because Quote Takedown Ports minimize latency for quote takedown, which would enable the fair and reasonable use of Market Makers' resources. Because Quote Takedown Ports, as the name suggests, are only available for quote takedowns and not order or quote entry (or order cancellation), the Quote Takedown Ports are not designed to permit unfair discrimination but rather are designed to enable Market Makers, that are subject to heightened obligations that other market participants are not, to meet their quoting obligations, which, in turn, benefits all market participants. [[Page 25757]] The Exchange also 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). --------------------------------------------------------------------------- The Exchange believes the proposed change is reasonable, equitable and not unfairly discriminatory for the following reasons. First, all ATP Holders would be subject to the same schedule of Port Fees and ATP Holders would continue to be able to request, and pay for only those ports that they require, with no impact to other ATP Holders. As noted above, because Quote Takedown Ports are uniquely designed to address quotes and only Market Makers are obliged to quote, the proposed fee structure for Quote Takedown Ports would not disadvantage non-Market Makers trading on the Exchange. Second, the proposal to enable Market Makers to utilize certain Quote Takedown Ports free of charge would result in the fair and reasonable use of resources by Market Makers, and would encourage trading on the Exchange, thus improving liquidity and price discovery, to the benefit of all market participants. In addition, providing Market Makers a free Quote Takedown Port for each order/quote entry port may increase use of Quote Takedown Ports as a cost effective means of improving risk controls. The increased use of Quote Takedown Ports by Market Makers would improve Market Makers' ability to manage quotes, quote traffic, and their quoting obligations, which would, in turn, improve their risk controls to the benefit of all participants. The Exchange likewise believes that not including those Quote Takedown Ports that meet the 1-to-1 ratio (order/quote entry ports-to- Quote Takedown Ports) in the count against a Market Maker's total number of ports utilized for purposes of calculating the monthly Port Fees is reasonable, equitable and not unfairly discriminatory. The Exchange notes that options Market Makers, require more than 40 ports in order to satisfy their responsibilities and obligations to investors, which stem from the significant number of series that exist for any particular option class \11\ and the corresponding obligations that Market Makers have to maintain continuous quotations in all series in their appointed classes. Furthermore, Market Makers that quote across a significant number, if not all, of the 2,520 classes traded on the Exchange could have responsibility for upwards of 620,000 individual option series.\12\ Accordingly, the level of activity that is required to satisfy the quoting obligations, which directly relates to the number of ports needed, is such that the Exchange believes it is equitable and not unfairly discriminatory to only include the number of order/quote entry and Quote Takedown Ports in excess of the 1-to-1 ratio in determining the per port charge for Market Makers. --------------------------------------------------------------------------- \11\ For example, as of February 24, 2015, there were more than 1,952 individual option series overlying Chipotle Mexican Grill, Inc. \12\ As of February 24, 2015. --------------------------------------------------------------------------- Finally, the Exchange believes that the proposed change is reasonable, because the Quote Takedown Ports are used for purposes distinct from order/quote entry ports, for which the Exchange charges.\13\ In this regard, the Exchange believes that its Port Fees are competitive with those charged by other venues, and that in some cases its Port Fees are less expensive than many of its primary competitors. For example, the Chicago Board Options Exchange (``CBOE'') charges $750 per port per month for a Network Access Port.\14\ The NASDAQ Options Market (``NOM'') charges $650 per port per month.\15\ --------------------------------------------------------------------------- \13\ The Exchange also charges for use of drop copy ports, which are not discussed in this filing. See supra n. 4. \14\ See CBOE fee schedule, Command Connectivity Charges, at p 11, available at, http://www.cboe.com/publish/feeschedule/CBOEFeeSchedule.pdf (charging $750 per month for each Network Access Port (1 Gbps) and $3,500 per month for each Network Access Port (10Gbps)). \15\ See NOM Price List, Section 3, NASDAQ Options Market, Access Services, available at, http://nasdaq.cchwallstreet.com/NASDAQTools/bookmark.asp?id=nasdaq-rule-options_XVS3&manual=/nasdaq/main/nasdaq-optionsrules/. --------------------------------------------------------------------------- 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,\16\ the Exchange does not believe that the proposed rule change would impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. Because the proposed change results in the fair and reasonable use of resources by ATP Holders, particularly Market Makers, in that the Exchange allows ATP Holders to utilize one Quote Takedown Port per one order/quote entry port free of charge, the Exchange believes this change would benefit all market participants. In addition, because Quote Takedown Ports enhance Market Makers' risk controls for transactions executed on the Exchange, the Exchange believes the proposal is pro-competitive. --------------------------------------------------------------------------- \16\ 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 Exchange has filed the proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act \17\ and Rule 19b-4(f)(6) thereunder.\18\ 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 prior to 30 days from the date on which it was filed, 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 and Rule 19b- 4(f)(6)(iii) thereunder. --------------------------------------------------------------------------- \17\ 15 U.S.C. 78s(b)(3)(A)(iii). \18\ 17 CFR 240.19b-4(f)(6). --------------------------------------------------------------------------- A proposed rule change filed under Rule 19b-4(f)(6) \19\ normally does not become operative prior to 30 days after the date of the filing. However, pursuant to Rule 19b4(f)(6)(iii),\20\ the Commission may designate a shorter time if such action is consistent with the protection of investors and the public interest. The Exchange has requested that the Commission waive the 30-day operative delay so that the proposal may become [[Page 25758]] operative immediately upon filing and thereby enable Market Makers to enhance their risk controls and risk management processes without delay. The Commission believes that waiving the 30-day operative delay is consistent with the protection of investors and the public interest. Therefore, the Commission hereby waives the 30-day operative delay and designates the proposal effective upon filing.\21\ --------------------------------------------------------------------------- \19\ 17 CFR 240.19b-4(f)(6). \20\ 17 CFR 240.19b-4(f)(6)(iii). \21\ For purposes 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 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) \22\ of the Act to determine whether the proposed rule change should be approved or disapproved. --------------------------------------------------------------------------- \22\ 15 U.S.C. 78s(b)(2)(B). --------------------------------------------------------------------------- IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic CommentsUse the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to rule-comments@sec.gov. Please include File Number SR-NYSEMKT-2015-31 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-2015-31. 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 the filing will also be available for inspection and copying at the NYSE's principal office and on its Internet Web site at www.nyse.com. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR-NYSEMKT-2015-31, and should be submitted on or before May 26, 2015. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\23\ --------------------------------------------------------------------------- \23\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Brent J. Fields, Secretary. [FR Doc. 2015-10410 Filed 5-4-15; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 80, No. 86 / Tuesday, May 5, 2015 / Notices 25755
interest, for the protection of investors, For the Commission, by the Division of II. Self-Regulatory Organization’s
or otherwise in furtherance of the Trading and Markets, pursuant to delegated Statement of the Purpose of, and
purposes of the Act. If the Commission authority.43 Statutory Basis for, the Proposed Rule
takes such action, the Commission shall Brent J. Fields, Change
institute proceedings to determine Secretary. In its filing with the Commission, the
whether the proposed rule should be [FR Doc. 2015–10403 Filed 5–4–15; 8:45 am] self-regulatory organization included
approved or disapproved. statements concerning the purpose of,
BILLING CODE 8011–01–P
IV. Solicitation of Comments and basis for, the proposed rule change
Interested persons are invited to and discussed any comments it received
submit written data, views, and SECURITIES AND EXCHANGE on the proposed rule change. The text
arguments concerning the foregoing, COMMISSION of those statements may be examined at
including whether the proposed rule the places specified in Item IV below.
change is consistent with the Act. [Release No. 34–74840; File No. SR– The Exchange has prepared summaries,
Comments may be submitted by any of NYSEMKT–2015–31] set forth in sections A, B, and C below,
the following methods: of the most significant parts of such
Self-Regulatory Organizations; NYSE statements.
Electronic Comments MKT LLC; Notice of Filing and A. Self-Regulatory Organization’s
• Use the Commission’s Internet Immediate Effectiveness of Proposed Statement of the Purpose of, and
comment form (http://www.sec.gov/ Rule Change Modifying Its Rules To Statutory Basis for, the Proposed Rule
rules/sro.shtml); or Provide for the Use of Ports That Change
• Send an email to rule-comments@ Provide Connectivity to the
sec.gov. Please include File Number SR– 1. Purpose
Exchange’s Trading Systems Solely
Phlx–2015–36 on the subject line. The Exchange proposes to modify its
for the Cancellation or ‘‘Takedown’’ of
Paper Comments Quotes and Changes to the NYSE rules to provide for the use of ports that
provide connectivity to the Exchange’s
• Send paper comments in triplicate Amex Options Fee Schedule Related to
This Quote Takedown Service trading systems solely for the
to Secretary, Securities and Exchange
cancellation or ‘‘takedown’’ of quotes. In
Commission, 100 F Street NE.,
April 29, 2015. addition, the proposed rule change
Washington, DC 20549–1090.
Pursuant to Section 19(b)(1) 1 of the reflects changes to the Fee Schedule
All submissions should refer to File related to this quote takedown service.
Number SR–Phlx–2015–36. This file Securities Exchange Act of 1934 (the
number should be included on the ‘‘Act’’) 2 and Rule 19b–4 thereunder,3 Order/Quote Entry Ports
subject line if email is used. To help the notice is hereby given that on April 17, The Exchange currently makes
Commission process and review your 2015, NYSE MKT LLC (the ‘‘Exchange’’ available to ATP Holders order/quote
comments more efficiently, please use or ‘‘NYSE MKT’’) filed with the entry ports for connectivity to Exchange
only one method. The Commission will Securities and Exchange Commission trading systems (each an ‘‘order/quote
post all comments on the Commission’s (the ‘‘Commission’’) the proposed rule entry port’’). ATP Holders may be
Internet Web site (http://www.sec.gov/ change as described in Items I and II authorized to utilize order/quote entry
rules/sro.shtml). Copies of the below, which have been prepared by the ports for option activity on NYSE Amex
submission, all subsequent self-regulatory organization. The Options and incur monthly Port Fees.
amendments, all written statements Commission is publishing this notice to Currently, the Exchange charges $450
with respect to the proposed rule solicit comments on the proposed rule per month, per order/quote entry port
change that are filed with the change from interested persons. for the first 40 ports and $150 per
Commission, and all written month, per order/quote entry port for
communications relating to the I. Self-Regulatory Organization’s any additional ports in excess of 40 (i.e.,
proposed rule change between the Statement of the Terms of Substance of ports 41 and greater).4
Commission and any person, other than the Proposed Rule Change While order/quote entry ports may be
those that may be withheld from the used by ATP Holders registered as
public in accordance with the The Exchange proposes to modify its Market Makers to both enter and cancel
provisions of 5 U.S.C. 552, will be rules to provide for the use of ports that or remove quotes, Market Makers may
available for Web site viewing and provide connectivity to the Exchange’s dedicate certain ports solely to the
printing in the Commission’s Public trading systems solely for the removal of quotes, i.e., a ‘‘quote
Reference Room, 100 F Street NE., cancellation or ‘‘takedown’’ of quotes. In takedown port,’’ 5 and, until now, the
Washington, DC 20549 on official addition, the proposed rule change
business days between the hours of reflects changes to the NYSE Amex 4 See Fee Schedule, available at, https://
10:00 a.m. and 3:00 p.m. Copies of such Options Fee Schedule (‘‘Fee Schedule’’) www.nyse.com/publicdocs/nyse/markets/amex-
filing also will be available for options/NYSE_Amex_Options_Fee_Schedule.pdf.
related to this quote takedown service. Unutilized order/quote entry ports that connect to
inspection and copying at the principal The text of the proposed rule change is the Exchange via its backup datacenter are
office of the Exchange. All comments available on the Exchange’s Web site at considered established for backup purposes and are
received will be posted without change; not subject to Port Fees. In addition, for purpose of
asabaliauskas on DSK5VPTVN1PROD with NOTICES
www.nyse.com, at the principal office of
the Commission does not edit personal calculating the number of order/quote entry ports,
the Exchange, and at the Commission’s the Exchange shall aggregate the ports of Affiliates.
identifying information from Public Reference Room. See id.
submissions. You should submit only 5 See Trader Update regarding Options Pre-Trade
information that you wish to make and Post-Trade Risk Controls, available at, https://
available publicly. All submissions 43 17 CFR 200.30–3(a)(12). www.nyse.com/publicdocs/nyse/markets/amex-
options/US_Options_Risk_Controls_Client_
should refer to File Number SR–Phlx– 1 15 U.S.C. 78s(b)(1).
Document.pdf (announcing availability of ports
2015–36, and should be submitted on or 2 15 U.S.C. 78a.
dedicated to quote takedown to minimize latency
before May 26, 2015. 3 17 CFR 240.19b–4. for quote takedowns).
VerDate Sep<11>2014 17:18 May 04, 2015 Jkt 235001 PO 00000 Frm 00096 Fmt 4703 Sfmt 4703 E:\FR\FM\05MYN1.SGM 05MYN1](https://thefederalregister.org/doc/80_FR_25841/page/1.svg)
![25758 Federal Register / Vol. 80, No. 86 / Tuesday, May 5, 2015 / Notices
operative immediately upon filing and communications relating to the solicit comments on the proposed rule
thereby enable Market Makers to proposed rule change between the change from interested persons.
enhance their risk controls and risk Commission and any person, other than
I. Self-Regulatory Organization’s
management processes without delay. those that may be withheld from the
Statement of the Terms of Substance of
The Commission believes that waiving public in accordance with the
provisions of 5 U.S.C. 552, will be the Proposed Rule Change
the 30-day operative delay is consistent
with the protection of investors and the available for Web site viewing and The Exchange proposes to modify its
public interest. Therefore, the printing in the Commission’s Public rules to provide for the use of ports that
Commission hereby waives the 30-day Reference Room, 100 F Street NE., provide connectivity to the Exchange’s
operative delay and designates the Washington, DC 20549, on official trading systems solely for the
proposal effective upon filing.21 business days between the hours of cancellation or ‘‘takedown’’ of quotes. In
At any time within 60 days of the 10:00 a.m. and 3:00 p.m. Copies of the addition, the proposed rule change
filing of such proposed rule change, the filing will also be available for reflects changes to the NYSE Arca
Commission summarily may inspection and copying at the NYSE’s Options Fee Schedule (‘‘Fee Schedule’’)
temporarily suspend such rule change if principal office and on its Internet Web related to this quote takedown service.
it appears to the Commission that such site at www.nyse.com. All comments The text of the proposed rule change is
action is necessary or appropriate in the received will be posted without change; available on the Exchange’s Web site at
public interest, for the protection of the Commission does not edit personal www.nyse.com, at the principal office of
investors, or otherwise in furtherance of identifying information from the Exchange, and at the Commission’s
the purposes of the Act. If the submissions. You should submit only Public Reference Room.
Commission takes such action, the information that you wish to make
Commission shall institute proceedings available publicly. All submissions II. Self-Regulatory Organization’s
under Section 19(b)(2)(B) 22 of the Act to should refer to File Number SR– Statement of the Purpose of, and
determine whether the proposed rule NYSEMKT–2015–31, and should be Statutory Basis for, the Proposed Rule
change should be approved or submitted on or before May 26, 2015. Change
disapproved. For the Commission, by the Division of In its filing with the Commission, the
IV. Solicitation of Comments Trading and Markets, pursuant to delegated self-regulatory organization included
authority.23
Interested persons are invited to statements concerning the purpose of,
Brent J. Fields, and basis for, the proposed rule change
submit written data, views, and
Secretary. and discussed any comments it received
arguments concerning the foregoing,
[FR Doc. 2015–10410 Filed 5–4–15; 8:45 am] on the proposed rule change. The text
including whether the proposed rule
change is consistent with the Act. BILLING CODE 8011–01–P of those statements may be examined at
Comments may be submitted by any of the places specified in Item IV below.
the following methods: The Exchange has prepared summaries,
SECURITIES AND EXCHANGE set forth in sections A, B, and C below,
Electronic Comments COMMISSION of the most significant parts of such
• Use the Commission’s Internet [Release No. 34–74841; File No. SR– statements.
comment form (http://www.sec.gov/ NYSEARCA–2015–32]
rules/sro.shtml); or A. Self-Regulatory Organization’s
• Send an email to rule-comments@ Self-Regulatory Organizations; NYSE Statement of the Purpose of, and
sec.gov. Please include File Number SR– Arca, Inc.; Notice of Filing and Statutory Basis for, the Proposed Rule
NYSEMKT–2015–31 on the subject line. Immediate Effectiveness of Proposed Change
Rule Change Modifying Its Rules To 1. Purpose
Paper Comments Provide for the Use of Ports That
• Send paper comments in triplicate Provide Connectivity to the The Exchange proposes to modify its
to Secretary, Securities and Exchange Exchange’s Trading Systems Solely rules to provide for the use of ports that
Commission, 100 F Street NE., for the Cancellation or ‘‘Takedown’’ of provide connectivity to the Exchange’s
Washington, DC 20549–1090. Quotes and Changes to the NYSE Arca trading systems solely for the
All submissions should refer to File Options Fee Schedule Related to cancellation or ‘‘takedown’’ of quotes. In
Number SR–NYSEMKT–2015–31. This Quote Takedown Service addition, the proposed rule change
file number should be included on the reflects changes to the Fee Schedule
April 29, 2015. related to this quote takedown service.
subject line if email is used.
To help the Commission process and Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (the Order/Quote Entry Ports
review your comments more efficiently,
please use only one method. The ‘‘Act’’) 2 and Rule 19b–4 thereunder,3 The Exchange currently makes
Commission will post all comments on notice is hereby given that, on April 17 available to OTP Holders and OTP
the Commission’s Internet Web site 2015, NYSE Arca, Inc. (the ‘‘Exchange’’ Firms (‘‘OTPs’’) order/quote entry ports
(http://www.sec.gov/rules/sro.shtml). or ‘‘NYSE Arca’’) filed with the for connectivity to Exchange trading
Copies of the submission, all subsequent Securities and Exchange Commission systems (each an ‘‘order/quote entry
amendments, all written statements (the ‘‘Commission’’) the proposed rule port’’). OTPs may be authorized to
asabaliauskas on DSK5VPTVN1PROD with NOTICES
with respect to the proposed rule change as described in Items I and II utilize order/quote entry ports for
change that are filed with the below, which Items have been prepared option activity on NYSE Arca Options
Commission, and all written by the self-regulatory organization. The and incur monthly Port Fees. Currently,
Commission is publishing this notice to the Exchange charges $450 per month,
21 For purposes of waiving the 30-day operative
23 17
per order/quote entry port for the first
delay, the Commission has considered the proposed CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
40 ports and $150 per month, per order/
rule’s impact on efficiency, competition, and capital
formation. See 15 U.S.C. 78c(f). 2 15 U.S.C. 78a. quote entry port for any additional ports
22 15 U.S.C. 78s(b)(2)(B). 3 17 CFR 240.19b–4. in excess of 40 (i.e., ports 41 and
VerDate Sep<11>2014 17:18 May 04, 2015 Jkt 235001 PO 00000 Frm 00099 Fmt 4703 Sfmt 4703 E:\FR\FM\05MYN1.SGM 05MYN1](https://thefederalregister.org/doc/80_FR_25841/page/4.svg)
Document Created: 2015-12-16 07:54:04
Document Modified: 2015-12-16 07:54:04
| 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 25755 |
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