80 FR 34182 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending the NYSE Arca Equities Schedule of Fees and Charges for Exchange Services To Modify the Credits for Mid-Point Passive Liquidity Orders
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 114 (June 15, 2015)
Federal Register Volume 80, Issue 114 (June 15, 2015)
| Page Range | 34182-34184 | |
| FR Document | 2015-14478 |
[Federal Register Volume 80, Number 114 (Monday, June 15, 2015)] [Notices] [Pages 34182-34184] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-14478] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-75123; File No. SR-NYSEArca-2015-49] Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending the NYSE Arca Equities Schedule of Fees and Charges for Exchange Services To Modify the Credits for Mid-Point Passive Liquidity Orders June 9, 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 29, 2015, NYSE Arca, Inc. (the ``Exchange'' or ``NYSE Arca'') filed with the Securities and Exchange Commission (the ``Commission'') the proposed rule change as described in Items I, II, and III below, which Items have been prepared by the self-regulatory organization. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 15 U.S.C. 78a. \3\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend the NYSE Arca Equities Schedule of Fees and Charges for Exchange Services (the ``Fee Schedule'') to modify the credits for Mid-Point Passive Liquidity (``MPL'') Orders. The Exchange proposes to implement the fee changes on June 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 Fee Schedule to modify the credits applicable to MPL Orders.\4\ The Exchange proposes to implement the fee changes on June 1, 2015. --------------------------------------------------------------------------- \4\ An MPL Order is a Passive Liquidity Order executable only at the midpoint of the Protected Best Bid and Offer. See Rule 7.31(h)(5) [sic]. A Passive Liquidity Order is an order to buy or sell a stated amount of a security at a specified, undisplayed price. See Rule 7.31(h)(4) [sic]. --------------------------------------------------------------------------- Currently, MPL Orders that provide liquidity on the Exchange receive a credit of $0.0015 per share for Tape A, Tape B and Tape C Securities under Tier 1, Tier 2 and Basic Rates in the Fee Schedule.\5\ --------------------------------------------------------------------------- \5\ Tier 1 applies to ETP Holders and Market Makers (1) that provide liquidity an average daily share volume per month of 0.70% or more of the US CADV or (2) that (a) provide liquidity an average daily share volume per month of 0.15% or more of the US CADV and (b) are affiliated with an OTP Holder or OTP Firm that provides an ADV of electronic posted executions (including all account types) in Penny Pilot issues on NYSE Arca Options (excluding mini options) of at least 100,000 contracts, of which at least 25,000 contracts must be for the account of a market maker. Tier 2 applies to ETP Holders and Market Makers that provide liquidity an average daily share volume per month of 0.30% or more, but less than 0.70% of the US CADV. Basic Rates apply when tier rates do not apply. US CADV means United States Consolidated Average Daily Volume for transactions reported to the Consolidated Tape, excluding odd lots through January 31, 2014 (except for purposes of Lead Market Maker pricing), and excludes volume on days when the market closes early and on the date of the annual reconstitution of the Russell Investments Indexes. Transactions that are not reported to the Consolidated Tape are not included in US CADV. --------------------------------------------------------------------------- The Exchange proposes to modify the credits under Tier 1, Tier 2 and Basic Rates for MPL Orders that provide liquidity and establish different credits based on the Average Daily Volume (``ADV'') of provided liquidity in MPL Orders for Tape A, Tape B and Tape C Securities combined (``MPL Adding ADV''). The proposed changes would apply to ETP Holders and Market Makers that are eligible for Tier 1 or Tier 2 fees and credits, and to the Basic Rates. The proposed changes would apply to securities with a per share price of $1.00 or above. For ETP Holders and Market Makers that have MPL Adding ADV during the billing month of at least 3 million shares, the credit per share would be $0.0015 for Tape A Securities, $0.0020 for Tape B Securities and $0.0025 for Tape C Securities (``MPL Adding ADV Category 1''). For ETP Holders and Market Makers with MPL Adding ADV during the [[Page 34183]] billing month of at least 1.5 million shares but less than 3 million shares, the credit per share would be $0.0015 for Tape A, Tape B and Tape C Securities (``MPL Adding ADV Category 2''). For ETP Holders and Market Makers with MPL Adding ADV during the billing month of less than 1.5 million shares, the credit per share would be $0.0010 for Tape A, Tape B and Tape C Securities (``MPL Adding ADV Category 3''). The current $0.0030 fee for MPL Orders in Tape A, B and C securities that remove liquidity from the Exchange would not change as a result of this proposal. In addition, MPL Orders removing liquidity from the Exchange that are designated as Retail Orders are not currently subject to a fee, which the Exchange is not proposing to change. The Exchange also proposes to add the defined term, ``MPL'' in place of Mid-Point Passive Liquidity'' throughout the Fee Schedule. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with Section 6(b) of the Act,\6\ in general, and furthers the objectives of Sections 6(b)(4) and 6(b)(5) of the Act,\7\ 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. --------------------------------------------------------------------------- \6\ 15 U.S.C. 78f(b). \7\ 15 U.S.C. 78f(b)(4) and (5). --------------------------------------------------------------------------- The Exchange believes that the proposed change to the credits for MPL Orders is reasonable because it would align the level of the credits to the level of volume provided. The Exchange believes that the higher credits in MPL Adding ADV Category 1 for Tape B and Tape C securities, of $0.0020 and $0.0025, respectively, is reasonable because the higher credits would incentivize ETP Holders to submit the additional liquidity required for MPL Adding ADV Category 1 through MPL Orders in Tape B and Tape C Securities. The Exchange believes that for MPL Adding ADV Category 1, the credit for Tape A securities of $0.0015 is reasonable because it is unchanged from the current credit. Similarly, the credit of $0.0015 in MPL Adding ADV Category 2, which is the same as the current per share credit for MPL Orders, is reasonable because it would apply to ETP Holders and Market Makers that provide a lower MPL Adding ADV, of more than 1.5 million shares but less than 3 million shares, than MPL Adding ADV Category 1, but higher [sic] than the MPL Adding ADV required for the higher credits in MPL Adding ADV Category 1 [sic] for Tape B and Tape C Securities. The lowest credit, of $0.0010 per share, in MPL Adding ADV Category 3, is reasonable because it would apply equally to the ETP Holders and Market Makers that provide the lowest MPL Adding ADV of less than 1.5 million shares. MPL Orders allow for additional opportunities for passive interaction with trading interest on the Exchange and are designed to offer potential price improvement to incoming marketable orders submitted to the Exchange.\8\ The Exchange believes that by correlating the level of the credit to the level of MPL Adding Volume, this proposed fee structure would incentivize ETP Holders to submit more liquidity providing MPL Orders to the Exchange, thereby increasing the potential price improvement to incoming marketable orders submitted to the Exchange. --------------------------------------------------------------------------- \8\ See, e.g., Securities Exchange Act Release No. 54511 (September 26, 2006), 71 FR 58460, 58461 (October 3, 2006) (SR-PCX- 2005-53). --------------------------------------------------------------------------- The Exchange believes that the proposed change is also equitable and not unfairly discriminatory because the proposed credits would be available to all ETP Holders and Market Makers to qualify for and would apply equally to MPL Orders from all ETP Holders and Market Makers. Finally, the Exchange notes that certain other exchanges also structure pricing based on midpoint pricing, including with respect to applicable volume thresholds that must be satisfied in order to qualify for such pricing, and that the pricing levels proposed by the Exchange are competitive with those exchanges.\9\ --------------------------------------------------------------------------- \9\ For example, the Nasdaq Stock Market LLC (``NASDAQ'') provides a non-tier credit for midpoint liquidity of $0.0014 for Tape A and B securities and $0.0010 per share for Tape C securities. See NASDAQ Rule 7018. --------------------------------------------------------------------------- The Exchange believes that the changes to replace the term, ``Mid- Point Passive Liquidity'' with the defined term, ``MPL'' throughout the fee schedule is reasonable because it will make the Fee Schedule clearer and easier to understand. 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. 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 change reflects this competitive environment. 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,\10\ the Exchange does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. Instead, the Exchange believes that the proposed change will encourage competition, including by attracting additional liquidity to the Exchange, which will make the Exchange a more competitive venue for, among other things, order execution and price discovery. In general, ETP Holders impacted by the proposed change may readily adjust their trading behavior to maintain or increase their credits in a favorable manner, and will therefore not be disadvantaged in their ability to compete. Specifically, all ETP Holders have the ability to submit MPL Orders and ETP Holders could readily choose to submit additional MPL Orders on the Exchange in order to qualify for the proposed credits for MPL Orders. --------------------------------------------------------------------------- \10\ 15 U.S.C. 78f(b)(8). --------------------------------------------------------------------------- Also, the Exchange does not believe that the proposed change will impair the ability of ETP Holders or competing order execution venues to maintain their competitive standing in the financial markets. In this regard, the Exchange notes that certain aspects of the proposed change are similar to, and competitive with, pricing structures and applicable fees and credits applicable on another exchange.\11\ --------------------------------------------------------------------------- \11\ See supra note 9. --------------------------------------------------------------------------- Finally, the Exchange notes that it operates in a highly competitive market in which market participants can readily favor competing venues if they deem fee or credit levels at a particular venue to be unattractive. In such an environment, the Exchange must continually review, and consider adjusting, its fees and credits to remain competitive with other exchanges. The credits proposed herein are based on objective standards that are applicable to all ETP Holders and reflect the need for the Exchange to offer significant financial incentives to attract order flow. For these reasons, the Exchange believes that the proposed rule change reflects this competitive environment and is therefore consistent with the Act. [[Page 34184]] 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) \12\ of the Act and subparagraph (f)(2) of Rule 19b-4 \13\ thereunder, because it establishes a due, fee, or other charge imposed by the Exchange. --------------------------------------------------------------------------- \12\ 15 U.S.C. 78s(b)(3)(A). \13\ 17 CFR 240.19b-4(f)(2). --------------------------------------------------------------------------- At any time within 60 days of the filing of such proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings under Section 19(b)(2)(B) \14\ of the Act to determine whether the proposed rule change should be approved or disapproved. --------------------------------------------------------------------------- \14\ 15 U.S.C. 78s(b)(2)(B). --------------------------------------------------------------------------- IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic CommentsUse the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to [email protected]. Please include File Number SR-NYSEArca-2015-49 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-2015-49. 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-2015-49, and should be submitted on or before July 6, 2015. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\15\ --------------------------------------------------------------------------- \15\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2015-14478 Filed 6-12-15; 8:45 am] BILLING CODE 8011-01-P
![34182 Federal Register / Vol. 80, No. 114 / Monday, June 15, 2015 / Notices
above, provided that, with respect to SECURITIES AND EXCHANGE A. Self-Regulatory Organization’s
such other offering: COMMISSION Statement of the Purpose of, and
(i) The Fund’s annualized distribution Statutory Basis for, the Proposed Rule
rate for the six months ending on the [Release No. 34–75123; File No. SR– Change
NYSEArca–2015–49]
last day of the month ended 1. Purpose
immediately prior to the most recent Self-Regulatory Organizations; NYSE The Exchange proposes to amend the
distribution record date,4 expressed as a Arca, Inc.; Notice of Filing and Fee Schedule to modify the credits
percentage of NAV as of such date, is no Immediate Effectiveness of Proposed applicable to MPL Orders.4 The
more than 1 percentage point greater Rule Change Amending the NYSE Arca Exchange proposes to implement the fee
than the Fund’s average annual total Equities Schedule of Fees and changes on June 1, 2015.
return for the 5-year period ending on Charges for Exchange Services To Currently, MPL Orders that provide
such date; 5 and Modify the Credits for Mid-Point liquidity on the Exchange receive a
(ii) the transmittal letter Passive Liquidity Orders credit of $0.0015 per share for Tape A,
Tape B and Tape C Securities under
accompanying any registration June 9, 2015. Tier 1, Tier 2 and Basic Rates in the Fee
statement filed with the Commission in Pursuant to Section 19(b)(1) 1 of the Schedule.5
connection with such offering discloses Securities Exchange Act of 1934 (the The Exchange proposes to modify the
that the Fund has received an order ‘‘Act’’) 2 and Rule 19b–4 thereunder,3 credits under Tier 1, Tier 2 and Basic
under section 19(b) to permit it to make notice is hereby given that, on May 29, Rates for MPL Orders that provide
periodic distributions of long-term 2015, NYSE Arca, Inc. (the ‘‘Exchange’’ liquidity and establish different credits
capital gains with respect to its shares or ‘‘NYSE Arca’’) filed with the based on the Average Daily Volume
of common stock as frequently as twelve Securities and Exchange Commission (‘‘ADV’’) of provided liquidity in MPL
times each year, and as frequently as (the ‘‘Commission’’) the proposed rule Orders for Tape A, Tape B and Tape C
distributions are specified by or change as described in Items I, II, and Securities combined (‘‘MPL Adding
determined in accordance with the III below, which Items have been ADV’’). The proposed changes would
terms of any outstanding shares of prepared by the self-regulatory apply to ETP Holders and Market
preferred stock as such Fund may issue. organization. The Commission is Makers that are eligible for Tier 1 or Tier
publishing this notice to solicit 2 fees and credits, and to the Basic
7. Amendments to Rule 19b–1 comments on the proposed rule change Rates. The proposed changes would
The requested order will expire on the from interested persons. apply to securities with a per share
effective date of any amendment to rule price of $1.00 or above.
I. Self-Regulatory Organization’s For ETP Holders and Market Makers
19b–1 that provides relief permitting Statement of the Terms of Substance of that have MPL Adding ADV during the
certain closed-end investment the Proposed Rule Change billing month of at least 3 million
companies to make periodic The Exchange proposes to amend the shares, the credit per share would be
distributions of long-term capital gains NYSE Arca Equities Schedule of Fees $0.0015 for Tape A Securities, $0.0020
with respect to their outstanding and Charges for Exchange Services (the for Tape B Securities and $0.0025 for
common stock as frequently as twelve ‘‘Fee Schedule’’) to modify the credits Tape C Securities (‘‘MPL Adding ADV
times each year. for Mid-Point Passive Liquidity (‘‘MPL’’) Category 1’’).
For the Commission, by the Division of Orders. The Exchange proposes to For ETP Holders and Market Makers
Investment Management, under delegated implement the fee changes on June 1, with MPL Adding ADV during the
authority. 2015. The text of the proposed rule
Robert W. Errett, change is available on the Exchange’s 4 An MPL Order is a Passive Liquidity Order
Web site at www.nyse.com, at the executable only at the midpoint of the Protected
Deputy Secretary. Best Bid and Offer. See Rule 7.31(h)(5) [sic]. A
principal office of the Exchange, and at Passive Liquidity Order is an order to buy or sell
[FR Doc. 2015–14483 Filed 6–12–15; 8:45 am]
the Commission’s Public Reference a stated amount of a security at a specified,
BILLING CODE 8011–01–P Room. undisplayed price. See Rule 7.31(h)(4) [sic].
5 Tier 1 applies to ETP Holders and Market
II. Self-Regulatory Organization’s Makers (1) that provide liquidity an average daily
Statement of the Purpose of, and share volume per month of 0.70% or more of the
Statutory Basis for, the Proposed Rule US CADV or (2) that (a) provide liquidity an average
daily share volume per month of 0.15% or more of
Change the US CADV and (b) are affiliated with an OTP
In its filing with the Commission, the Holder or OTP Firm that provides an ADV of
electronic posted executions (including all account
self-regulatory organization included types) in Penny Pilot issues on NYSE Arca Options
statements concerning the purpose of, (excluding mini options) of at least 100,000
and basis for, the proposed rule change contracts, of which at least 25,000 contracts must
and discussed any comments it received be for the account of a market maker. Tier 2 applies
to ETP Holders and Market Makers that provide
on the proposed rule change. The text liquidity an average daily share volume per month
of those statements may be examined at of 0.30% or more, but less than 0.70% of the US
asabaliauskas on DSK5VPTVN1PROD with NOTICES
the places specified in Item IV below. CADV. Basic Rates apply when tier rates do not
The Exchange has prepared summaries, apply. US CADV means United States Consolidated
Average Daily Volume for transactions reported to
4 If the Fund has been in operation fewer than six
set forth in sections A, B, and C below, the Consolidated Tape, excluding odd lots through
months, the measured period will begin
of the most significant parts of such January 31, 2014 (except for purposes of Lead
immediately following the Fund’s first public statements. Market Maker pricing), and excludes volume on
days when the market closes early and on the date
offering. of the annual reconstitution of the Russell
5 If the Fund has been in operation fewer than five 1 15 U.S.C. 78s(b)(1). Investments Indexes. Transactions that are not
years, the measured period will begin immediately 2 15 U.S.C. 78a. reported to the Consolidated Tape are not included
following the Fund’s first public offering. 3 17 CFR 240.19b–4. in US CADV.
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![Federal Register / Vol. 80, No. 114 / Monday, June 15, 2015 / Notices 34183
billing month of at least 1.5 million shares but less than 3 million shares, Exchange believes that the proposed
shares but less than 3 million shares, the than MPL Adding ADV Category 1, but change reflects this competitive
credit per share would be $0.0015 for higher [sic] than the MPL Adding ADV environment. For these reasons, the
Tape A, Tape B and Tape C Securities required for the higher credits in MPL Exchange believes that the proposal is
(‘‘MPL Adding ADV Category 2’’). Adding ADV Category 1 [sic] for Tape consistent with the Act.
For ETP Holders and Market Makers B and Tape C Securities. The lowest
with MPL Adding ADV during the credit, of $0.0010 per share, in MPL B. Self-Regulatory Organization’s
billing month of less than 1.5 million Adding ADV Category 3, is reasonable Statement on Burden on Competition
shares, the credit per share would be because it would apply equally to the
In accordance with Section 6(b)(8) of
$0.0010 for Tape A, Tape B and Tape C ETP Holders and Market Makers that
Securities (‘‘MPL Adding ADV Category the Act,10 the Exchange does not believe
provide the lowest MPL Adding ADV of
3’’). less than 1.5 million shares. that the proposed rule change will
The current $0.0030 fee for MPL MPL Orders allow for additional impose any burden on competition that
Orders in Tape A, B and C securities opportunities for passive interaction is not necessary or appropriate in
that remove liquidity from the Exchange with trading interest on the Exchange furtherance of the purposes of the Act.
would not change as a result of this and are designed to offer potential price Instead, the Exchange believes that the
proposal. In addition, MPL Orders improvement to incoming marketable proposed change will encourage
removing liquidity from the Exchange orders submitted to the Exchange.8 The competition, including by attracting
that are designated as Retail Orders are Exchange believes that by correlating additional liquidity to the Exchange,
not currently subject to a fee, which the the level of the credit to the level of which will make the Exchange a more
Exchange is not proposing to change. MPL Adding Volume, this proposed fee competitive venue for, among other
The Exchange also proposes to add structure would incentivize ETP things, order execution and price
the defined term, ‘‘MPL’’ in place of Holders to submit more liquidity discovery. In general, ETP Holders
Mid-Point Passive Liquidity’’ providing MPL Orders to the Exchange, impacted by the proposed change may
throughout the Fee Schedule. thereby increasing the potential price readily adjust their trading behavior to
2. Statutory Basis improvement to incoming marketable maintain or increase their credits in a
orders submitted to the Exchange. favorable manner, and will therefore not
The Exchange believes that the The Exchange believes that the be disadvantaged in their ability to
proposed rule change is consistent with proposed change is also equitable and compete. Specifically, all ETP Holders
Section 6(b) of the Act,6 in general, and not unfairly discriminatory because the have the ability to submit MPL Orders
furthers the objectives of Sections proposed credits would be available to and ETP Holders could readily choose
6(b)(4) and 6(b)(5) of the Act,7 in all ETP Holders and Market Makers to to submit additional MPL Orders on the
particular, because it provides for the qualify for and would apply equally to Exchange in order to qualify for the
equitable allocation of reasonable dues, MPL Orders from all ETP Holders and proposed credits for MPL Orders.
fees, and other charges among its Market Makers.
members, issuers and other persons Finally, the Exchange notes that Also, the Exchange does not believe
using its facilities and does not unfairly certain other exchanges also structure that the proposed change will impair
discriminate between customers, pricing based on midpoint pricing, the ability of ETP Holders or competing
issuers, brokers or dealers. including with respect to applicable order execution venues to maintain
The Exchange believes that the volume thresholds that must be satisfied their competitive standing in the
proposed change to the credits for MPL in order to qualify for such pricing, and financial markets. In this regard, the
Orders is reasonable because it would that the pricing levels proposed by the Exchange notes that certain aspects of
align the level of the credits to the level Exchange are competitive with those the proposed change are similar to, and
of volume provided. exchanges.9 competitive with, pricing structures and
The Exchange believes that the higher The Exchange believes that the applicable fees and credits applicable
credits in MPL Adding ADV Category 1 changes to replace the term, ‘‘Mid-Point on another exchange.11
for Tape B and Tape C securities, of Passive Liquidity’’ with the defined Finally, the Exchange notes that it
$0.0020 and $0.0025, respectively, is term, ‘‘MPL’’ throughout the fee operates in a highly competitive market
reasonable because the higher credits schedule is reasonable because it will in which market participants can
would incentivize ETP Holders to make the Fee Schedule clearer and readily favor competing venues if they
submit the additional liquidity required easier to understand. deem fee or credit levels at a particular
for MPL Adding ADV Category 1 Finally, the Exchange believes that it venue to be unattractive. In such an
through MPL Orders in Tape B and is subject to significant competitive environment, the Exchange must
Tape C Securities. The Exchange forces, as described below in the
believes that for MPL Adding ADV continually review, and consider
Exchange’s statement regarding the adjusting, its fees and credits to remain
Category 1, the credit for Tape A burden on competition. In such an
securities of $0.0015 is reasonable competitive with other exchanges. The
environment, the Exchange must
because it is unchanged from the credits proposed herein are based on
continually review, and consider
current credit. objective standards that are applicable
adjusting, its fees and credits to remain
Similarly, the credit of $0.0015 in to all ETP Holders and reflect the need
competitive with other exchanges. For
for the Exchange to offer significant
asabaliauskas on DSK5VPTVN1PROD with NOTICES
MPL Adding ADV Category 2, which is the reasons described above, the
the same as the current per share credit financial incentives to attract order
for MPL Orders, is reasonable because it 8 See, e.g., Securities Exchange Act Release No. flow. For these reasons, the Exchange
would apply to ETP Holders and Market 54511 (September 26, 2006), 71 FR 58460, 58461 believes that the proposed rule change
Makers that provide a lower MPL (October 3, 2006) (SR–PCX–2005–53). reflects this competitive environment
9 For example, the Nasdaq Stock Market LLC
Adding ADV, of more than 1.5 million and is therefore consistent with the Act.
(‘‘NASDAQ’’) provides a non-tier credit for
midpoint liquidity of $0.0014 for Tape A and B
6 15 U.S.C. 78f(b). 10 15 U.S.C. 78f(b)(8).
securities and $0.0010 per share for Tape C
7 15 U.S.C. 78f(b)(4) and (5). securities. See NASDAQ Rule 7018. 11 See supra note 9.
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![34184 Federal Register / Vol. 80, No. 114 / Monday, June 15, 2015 / Notices
C. Self-Regulatory Organization’s (http://www.sec.gov/rules/sro.shtml). thereunder,2 a proposed rule change to
Statement on Comments on the Copies of the submission, all subsequent list and trade the shares (‘‘Shares’’) of
Proposed Rule Change Received From amendments, all written statements the following 18 exchange-traded
Members, Participants, or Others with respect to the proposed rule managed funds: Eaton Vance Balanced
No written comments were solicited change that are filed with the NextSharesTM; Eaton Vance Global
or received with respect to the proposed Commission, and all written Dividend Income NextSharesTM; Eaton
rule change. communications relating to the Vance Growth NextSharesTM; Eaton
proposed rule change between the Vance Large-Cap Value NextSharesTM;
III. Date of Effectiveness of the Commission and any person, other than Eaton Vance Richard Bernstein All
Proposed Rule Change and Timing for those that may be withheld from the Asset Strategy NextSharesTM; Eaton
Commission Action public in accordance with the Vance Richard Bernstein Equity Strategy
The foregoing rule change is effective provisions of 5 U.S.C. 552, will be NextSharesTM; Eaton Vance Small-Cap
upon filing pursuant to Section available for Web site viewing and NextSharesTM; Eaton Vance Stock
19(b)(3)(A) 12 of the Act and printing in the Commission’s Public NextSharesTM; Parametric Emerging
subparagraph (f)(2) of Rule 19b–4 13 Reference Room, 100 F Street NE., Markets NextSharesTM; Parametric
thereunder, because it establishes a due, Washington, DC 20549, on official International Equity NextSharesTM;
fee, or other charge imposed by the business days between the hours of Eaton Vance Bond NextSharesTM; Eaton
Exchange. 10:00 a.m. and 3:00 p.m. Copies of the Vance TABS 5-to-15 Year Laddered
At any time within 60 days of the filing will also be available for Municipal Bond NextSharesTM; Eaton
filing of such proposed rule change, the inspection and copying at the NYSE’s Vance Floating-Rate & High Income
Commission summarily may principal office and on its Internet Web NextSharesTM; Eaton Vance Global
temporarily suspend such rule change if site at www.nyse.com. All comments Macro Absolute Return NextSharesTM;
it appears to the Commission that such received will be posted without change; Eaton Vance Government Obligations
action is necessary or appropriate in the the Commission does not edit personal NextSharesTM; Eaton Vance High
public interest, for the protection of identifying information from Income Opportunities NextSharesTM;
investors, or otherwise in furtherance of submissions. You should submit only Eaton Vance High Yield Municipal
the purposes of the Act. If the information that you wish to make Income NextSharesTM; and Eaton Vance
Commission takes such action, the available publicly. All submissions National Municipal Income
Commission shall institute proceedings should refer to File Number SR– NextSharesTM (collectively, ‘‘Funds’’).
under Section 19(b)(2)(B) 14 of the Act to NYSEArca–2015–49, and should be On April 21, 2015, the Exchange filed
determine whether the proposed rule submitted on or before July 6, 2015. Amendments Nos. 1 and 2 to the
change should be approved or For the Commission, by the Division of proposal.3 The proposed rule change, as
disapproved. Trading and Markets, pursuant to delegated modified by Amendments Nos. 1 and 2
authority.15 thereto, was published for comment in
IV. Solicitation of Comments Robert W. Errett, the Federal Register on April 29, 2015.4
Interested persons are invited to Deputy Secretary. The Commission received no comments
submit written data, views, and [FR Doc. 2015–14478 Filed 6–12–15; 8:45 am] on the proposed rule change.
arguments concerning the foregoing, Section 19(b)(2) of the Act 5 provides
BILLING CODE 8011–01–P
including whether the proposed rule that within 45 days of the publication of
change is consistent with the Act. notice of the filing of a proposed rule
Comments may be submitted by any of SECURITIES AND EXCHANGE change, or within such longer period up
the following methods: COMMISSION to 90 days as the Commission may
designate if it finds such longer period
Electronic Comments [Release No. 34–75121; File No. SR– to be appropriate and publishes its
NASDAQ–2015–036]
• Use the Commission’s Internet reasons for so finding or as to which the
comment form (http://www.sec.gov/ Self-Regulatory Organizations; The self-regulatory organization consents,
rules/sro.shtml); or NASDAQ Stock Market LLC; Notice of the Commission shall either approve the
• Send an email to rule-comments@ Designation of a Longer Period for proposed rule change, disapprove the
sec.gov. Please include File Number SR– Commission Action on Proposed Rule proposed rule change, or institute
NYSEArca–2015–49 on the subject line. Change, as Modified by Amendments proceedings to determine whether the
Nos. 1 and 2 Thereto, Relating to the proposed rule change should be
Paper Comments
Listing and Trading of the Shares of 18 disapproved. The 45th day for this filing
• Send paper comments in triplicate is June 13, 2015. The Commission is
to Secretary, Securities and Exchange Eaton Vance NextShares ETMFs of
Either the Eaton Vance ETMF Trust or extending this 45-day time period.
Commission, 100 F Street NE., The Commission finds it appropriate
Washington, DC 20549–1090. the Eaton Vance ETMF Trust II
to designate a longer period within
All submissions should refer to File June 8, 2015. which to take action on the proposed
Number SR–NYSEArca–2015–49. This rule change, which seeks to list and
I. Introduction
file number should be included on the trade Shares of the Funds pursuant to
subject line if email is used. On April 10, 2015, The NASDAQ Nasdaq Rule 5745 governing the listing
asabaliauskas on DSK5VPTVN1PROD with NOTICES
To help the Commission process and Stock Market LLC (‘‘Nasdaq’’ or
review your comments more efficiently, ‘‘Exchange’’) filed with the Securities 2 17 CFR 240.19b–4.
please use only one method. The and Exchange Commission 3 Amendment No. 1 amended and replaced the
Commission will post all comments on (‘‘Commission’’), pursuant to Section proposed rule change in its entirety. Amendment
No. 2 subsequently amended the proposal to
the Commission’s Internet Web site 19(b)(1) of the Securities Exchange Act include a new footnote to reflect a Web site
of 1934 (‘‘Act’’) 1 and Rule 19b–4 reference.
12 15 U.S.C. 78s(b)(3)(A). 4 See Securities Exchange Act Release No. 74797
13 17 CFR 240.19b–4(f)(2). 15 17 CFR 200.30–3(a)(12). (Apr. 23, 2015), 80 FR 23831 (‘‘Notice’’).
14 15 U.S.C. 78s(b)(2)(B). 1 15 U.S.C. 78s(b)(1). 5 15 U.S.C. 78s(b)(2).
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Document Created: 2015-12-15 15:14:09
Document Modified: 2015-12-15 15:14:09
| 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 34182 |
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