80 FR 27390 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending the Fees for NYSE ArcaBook To Add a Late Fee in Connection With Failure To Submit the Non-Display Use Declaration

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 92 (May 13, 2015)

Page Range		27390-27392
FR Document		2015-11492

Federal Register, Volume 80 Issue 92 (Wednesday, May 13, 2015)

[Federal Register Volume 80, Number 92 (Wednesday, May 13, 2015)]
[Notices]
[Pages 27390-27392]
From the Federal Register Online [www.thefederalregister.org]
[FR Doc No: 2015-11492]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-74902; File No. SR-NYSEARCA-2015-40]

Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change Amending the Fees
for NYSE ArcaBook To Add a Late Fee in Connection With Failure To
Submit the Non-Display Use Declaration

May 7, 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 May 1, 2015, NYSE Arca, Inc. (the ``Exchange'' or ``NYSE
Arca'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I, II,
and III below, which Items have been prepared by the self-regulatory
organization. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

The Exchange proposes to amend the fees for NYSE ArcaBook to add a
late fee in connection with failure to submit the non-display use
declaration, operative on May 1, 2015. The text of the proposed rule
change is available on the Exchange's Web site at www.nyse.com, at the
principal office of the Exchange, and at the Commission's Public
Reference Room.

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

In its filing with the Commission, the self-regulatory organization
included statements concerning the purpose of, and basis for, the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of those statements may be examined at
the places specified in Item IV below. The Exchange has prepared
summaries, set forth in sections A, B, and C below, of the most
significant parts of such statements.

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

1. Purpose
The Exchange proposes to amend the fees for NYSE ArcaBook, as set
forth on the NYSE Arca Equities Proprietary Market Data Fee Schedule
(``Fee Schedule''), to add a late fee in connection with failure to
submit an updated non-display use declaration. The proposed change to
the Fee Schedule would be operative on May 1, 2015.
The Exchange established the current fees for non-display services
for NYSE ArcaBook in April 2013 and amended those fees in September
2014.\4\ The 2013 Non-Display Filing established a requirement that
data recipients that receive real-time NYSE Arca market data subject to
Non-Display Use fees submit a declaration with respect to their use of
non-display data.\5\ In connection with the fee changes in the 2014
Non-Display Filing, the Exchange required data recipients that receive
real-time NYSE Arca market data subject to Non-Display Use fees to
complete and submit an updated Non-Display Use Declaration by September
1, 2014.\6\ The 2014 Non-Display Filing also established that data
recipients are required to submit an updated annual Non-Display Use
Declaration by January 31st of each year beginning in 2016. In
addition, if a data recipient's use of real-time NYSE Arca market data
changes at any time after the data recipient submits a Non-Display Use
Declaration, the data recipient must inform the Exchange of the change
by completing and submitting at the time of the change an

[[Page 27391]]

updated declaration reflecting the change of use.
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\4\ See Securities Exchange Act Release Nos. 69315 (Apr. 5,
2013), 78 FR 21668 (Apr. 11, 2013) (SR-NYSEArca-2013-37) (``2013
Non-Display Filing'') and 73011 (Sept. 5, 2014), 79 FR 54315 (Sept.
11, 2014) (SR-NYSEArca-2014-93) (``2014 Non-Display Filing'').
\5\ The non-display fee structure established in the 2013 Non-
Display Filing replaced a monthly reporting obligation with respect
to non-display devices with the requirement to submit the non-
display use declaration. The Exchange also notes that if a data
recipient only subscribes to products for which there are no non-
display usage fees, e.g., NYSE Arca Realtime Reference Prices, then
no declaration is required.
\6\ The current form of the Non-Display Use Declaration
reflected the changes to the non-display fees set forth in the 2014
Non-Display Filing and replaced the NYSE Euronext Non-Display Use
Declaration established in connection with the 2013 Non-Display
Filing.
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The Exchange notes that if a data recipient does not timely submit
a Non-Display Use Declaration, the Exchange does not have up-to-date
information about the data recipient's data use and therefore may not
be charging the correct fees to the data recipient. In order to
correctly assess fees for the non-display use of NYSE ArcaBook, the
Exchange needs to have current and accurate information about the use
of NYSE ArcaBook. The failure of data recipients to submit the Non-
Display Use Declaration on time leads to potentially incorrect billing
and administrative burdens, including tracking and obtaining late Non-
Display Use Declarations and correcting customer records in connection
with late Non-Display Use Declarations. The purpose of the proposed
late fee is to incent data recipients to submit the Non-Display Use
Declaration promptly to avoid the administrative burdens associated
with the late submission of Non-Display Use Declarations.
The Exchange proposes to establish a Non-Display Declaration Late
Fee of $1,000 per month. The proposed fee would be charged to any data
recipient that pays an Access Fee for NYSE ArcaBook that has failed to
timely complete and submit a Non-Display Use Declaration.
With respect to the Non-Display Use Declaration that was due by
September 1, 2014, the Non-Display Declaration Late Fee would apply to
NYSE ArcaBook data recipients that have not submitted the Non-Display
Use Declaration by June 30, 2015, and would apply beginning July 1,
2015 and for each month thereafter until the data recipient has
completed and submitted the Non-Display Use Declaration. With respect
to the annual Non-Display Use Declaration due by January 31st of each
year beginning in 2016, the Non-Display Declaration Late Fee would
apply to data recipients that fail to complete and submit the annual
Non-Display Use Declaration by the January 31st due date, and would
apply beginning February 1st and for each month thereafter until the
data recipient has completed and submitted the annual Non-Display Use
Declaration.\7\ A Non-Display Use Declaration that is clearly
incomplete would not be considered to have been completed and submitted
to the Exchange on time.
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\7\ The Exchange has established the Non-Display Declaration
Late Fee with respect to NYSE Arca Integrated Feed and in that
filing adopted the text in endnote 2, which specifies the effective
dates for the Non-Display Declaration Late Fee as described above,
so the text in endnote 2 to the Fee Schedule is not new. See SR-
NYSEArca-2015-34.
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2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the provisions of Section 6 of the Act,\8\ in general, and
Sections 6(b)(4) and 6(b)(5) of the Act,\9\ in particular, in that it
provides an equitable allocation of reasonable fees among users and
recipients of the data and is not designed to permit unfair
discrimination among customers, issuers, and brokers.
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\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C. 78f(b)(4), (5).
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The Exchange believes that it is reasonable to impose a late fee in
connection with the submission of the Non-Display Use Declaration. In
order to correctly assess fees for the non-display use of NYSE
ArcaBook, the Exchange needs to have current and accurate information
about the use of NYSE ArcaBook. The failure of data recipients to
submit the Non-Display Use Declaration on time leads to potentially
incorrect billing and administrative burdens, including tracking and
obtaining late Non-Display Use Declarations and correcting and
following up on payments owed in connection with late Non-Display Use
Declarations. The purpose of the late fee is to incent data recipients
to submit the Non-Display Use Declaration promptly to avoid the
administrative burdens associated with the late submission of Non-
Display Use Declarations. The Non-Display Declaration Late Fee is
equitable and not unfairly discriminatory because it will apply to all
data recipients that choose to subscribe to the NYSE ArcaBook feed.
The Non-Display Declaration Late Fee is also consistent with
similar pricing adopted in 2013 by the Consolidated Tape Association
(``CTA'').\10\ The CTA imposes a monthly fee of $2,500 for each of
Network A and Network B for firms that fail to comply with their
reporting obligations in a timely manner.
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\10\ See Securities Exchange Act Release No. 70010 (July 19,
2013), 78 FR 44984 (July 25, 2013) (SR-CTA/CQ-2013-04).
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B. Self-Regulatory Organization's Statement on Burden on Competition

The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act. An exchange's ability to
price its proprietary market data feed products is constrained by
actual competition for the sale of proprietary market data products,
the joint product nature of exchange platforms, and the existence of
alternatives to the Exchange's proprietary data. In addition to being
able to choose which proprietary data products (if any) to use and how
to use them, a user can avoid the late fees that are the subject of
this filing entirely by simply complying with the requisite deadlines.
In setting the proposed fees, the Exchange considered the
competitiveness of the market for proprietary data and all of the
implications of that competition. The Exchange believes that it has
considered all relevant factors and has not considered irrelevant
factors in order to establish fair, reasonable, and not unreasonably
discriminatory fees and an equitable allocation of fees among all
users. The existence of fierce competition to sell proprietary data
products and for order flow, as well as numerous alternatives to the
Exchange's products, including proprietary data from other sources,
ensures that the Exchange cannot set unreasonable fees, or fees that
are unreasonably discriminatory, when vendors and subscribers can elect
these alternatives or choose not to purchase a specific proprietary
data product if the attendant fees are not justified by the returns
that any particular vendor or data recipient would achieve through the
purchase (the returns on use being a particularly important aspect of
non-display uses of proprietary data).

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

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

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

The foregoing rule change is effective upon filing pursuant to
Section 19(b)(3)(A) \11\ of the Act and subparagraph (f)(2) of Rule
19b-4 \12\ thereunder, because it establishes a due, fee, or other
charge imposed by the Exchange.
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\11\ 15 U.S.C. 78s(b)(3)(A).
\12\ 17 CFR 240.19b-4(f)(2).
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At any time within 60 days of the filing of such proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of

[[Page 27392]]

the purposes of the Act. If the Commission takes such action, the
Commission shall institute proceedings under Section 19(b)(2)(B) \13\
of the Act to determine whether the proposed rule change should be
approved or disapproved.
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\13\ 15 U.S.C. 78s(b)(2)(B).
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IV. Solicitation of Comments

Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:

Electronic Comments

Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-NYSEARCA-2015-40 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-NYSEARCA-2015-40. This
file number should be included on the subject line if email is used.

To help the Commission process and review your comments more
efficiently, please use only one method. The Commission will post all
comments on the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments,
all written statements with respect to the proposed rule change that
are filed with the Commission, and all written communications relating
to the proposed rule change between the Commission and any person,
other than those that may be withheld from the public in accordance
with the provisions of 5 U.S.C. 552, will be available for Web site
viewing and printing in the Commission's Public Reference Room, 100 F
Street NE., Washington, DC 20549, on official business days between the
hours of 10:00 a.m. and 3:00 p.m. Copies of the filing will also be
available for inspection and copying at the NYSE's principal office and
on its Internet Web site at www.nyse.com. All comments received will be
posted without change; the Commission does not edit personal
identifying information from submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-NYSEARCA-2015-40, and should be
submitted on or before June 3, 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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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-11492 Filed 5-12-15; 8:45 am]
BILLING CODE 8011-01-P

27392 Federal Register / Vol. 80, No. 92 / Wednesday, May 13, 2015 / Notices

the purposes of the Act. If the available publicly. All submissions any comments it received on the
Commission takes such action, the should refer to File Number SR– proposed rule change. The text of these
Commission shall institute proceedings NYSEARCA–2015–40, and should be statements may be examined at the
under Section 19(b)(2)(B) 13 of the Act to submitted on or before June 3, 2015. places specified in Item IV below. The
determine whether the proposed rule For the Commission, by the Division of Exchange has prepared summaries, set
change should be approved or Trading and Markets, pursuant to delegated forth in sections A, B, and C below, of
disapproved. authority.14 the most significant aspects of such
Robert W. Errett, statements.
IV. Solicitation of Comments
Deputy Secretary. A. Self-Regulatory Organization’s
Interested persons are invited to
submit written data, views, and
[FR Doc. 2015–11492 Filed 5–12–15; 8:45 am] Statement of the Purpose of, and
arguments concerning the foregoing, BILLING CODE 8011–01–P Statutory Basis for, the Proposed Rule
including whether the proposed rule Change
change is consistent with the Act. 1. Purpose
SECURITIES AND EXCHANGE
Comments may be submitted by any of
COMMISSION Background
the following methods:
[Release No. 34–74900; File No. SR–C2– For several months the Exchange has
Electronic Comments 2015–012] been working with other options
• Use the Commission’s Internet exchanges to identify ways to improve
comment form (http://www.sec.gov/ Self-Regulatory Organizations; C2 the process related to the adjustment
rules/sro.shtml); or Options Exchange, Incorporated; and nullification of erroneous options
• Send an email to rule-comments@ Notice of Filing and Immediate transactions. The goal of the process
sec.gov. Please include File Number SR– Effectiveness of a Proposed Rule that the options exchanges have
NYSEARCA–2015–40 on the subject Change Relating to the Nullification undertaken is to adopt harmonized rules
line. and Adjustment of Options related to the adjustment and
Transactions Including Obvious Errors nullification of erroneous options
Paper Comments
May 7, 2015. transactions as well as a specific
• Send paper comments in triplicate provision related to coordination in
to Secretary, Securities and Exchange Pursuant to section 19(b)(1) of the
Securities Exchange Act of 1934 (the connection with large-scale events
Commission, 100 F Street NE., involving erroneous options
Washington, DC 20549–1090. ‘‘Act’’),1 and Rule 19b 4 thereunder,2
notice is hereby given that on May 6, transactions. As described below, the
All submissions should refer to File Exchange believes that the changes the
Number SR–NYSEARCA–2015–40. This 2015, C2 Options Exchange,
options exchanges and the Exchange
file number should be included on the Incorporated (the ‘‘Exchange’’ or ‘‘C2’’)
have agreed to propose will provide
subject line if email is used. filed with the Securities and Exchange
transparency and finality with respect to
Commission (the ‘‘Commission’’) the
To help the Commission process and the adjustment and nullification of
proposed rule change as described in
review your comments more efficiently, erroneous options transactions.
Items I and II below, which Items have
please use only one method. The Particularly, the proposed changes seek
Commission will post all comments on been prepared by the Exchange. The
to achieve consistent results for
the Commission’s Internet Web site Commission is publishing this notice to
participants across U.S. options
(http://www.sec.gov/rules/sro.shtml). solicit comments on the proposed rule
exchanges while maintaining a fair and
Copies of the submission, all subsequent change from interested persons.
orderly market, protecting investors and
amendments, all written statements I. Self-Regulatory Organization’s protecting the public interest.
with respect to the proposed rule Statement of the Terms of Substance of The Proposed Rule is the culmination
change that are filed with the the Proposed Rule Change of this coordinated effort and reflects
Commission, and all written The Exchange seeks to amend discussions by the options exchanges to
communications relating to the Exchange rules related to the universally adopt: (1) Certain provisions
proposed rule change between the nullification and adjustment of options already in place on one or more options
Commission and any person, other than transactions including obvious errors. exchanges; and (2) new provisions that
those that may be withheld from the The text of the proposed rule change is the options exchanges collectively
public in accordance with the available on the Exchange’s Web site believe will improve the handling of
provisions of 5 U.S.C. 552, will be (http://www.cboe.com/AboutCBOE/ erroneous options transactions. Thus,
available for Web site viewing and CBOELegalRegulatoryHome.aspx), at although the Proposed Rule is in many
printing in the Commission’s Public the Exchange’s Office of the Secretary, ways similar to and based on the
Reference Room, 100 F Street NE., and at the Commission’s Public Exchange’s Current Rule, the Exchange
Washington, DC 20549, on official Reference Room. is adopting various provisions to
business days between the hours of conform with existing rules of one or
10:00 a.m. and 3:00 p.m. Copies of the II. Self-Regulatory Organization’s more options exchanges and also to
filing will also be available for Statement of the Purpose of, and adopt rules that are not currently in
inspection and copying at the NYSE’s Statutory Basis for, the Proposed Rule place on any options exchange. As
principal office and on its Internet Web Change noted above, in order to adopt a rule
asabaliauskas on DSK5VPTVN1PROD with NOTICES

site at www.nyse.com. All comments In its filing with the Commission, the that is similar in most material respects
received will be posted without change; Exchange included statements to the rules adopted by other options
the Commission does not edit personal concerning the purpose of and basis for exchanges, the Exchange proposes to
identifying information from the proposed rule change and discussed delete the Current Rule in its entirety
submissions. You should submit only and to replace it with the Proposed
information that you wish to make 14 17 CFR 200.30–3(a)(12). Rule.
1 15 U.S.C. 78s(b)(1). The Exchange notes that it has
13 15 U.S.C. 78s(b)(2)(B). 2 17 CFR 240.19b–4. proposed additional objective standards

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Document Created: 2015-12-16 07:46:51
Document Modified: 2015-12-16 07:46:51

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 27390