80 FR 42860 - 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
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 138 (July 20, 2015)
Federal Register Volume 80, Issue 138 (July 20, 2015)
| Page Range | 42860-42862 | |
| FR Document | 2015-17660 |
[Federal Register Volume 80, Number 138 (Monday, July 20, 2015)] [Notices] [Pages 42860-42862] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-17660] [[Page 42860]] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-75449; File No. SR-NYSEARCA-2015-55] 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 July 14, 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 June 24, 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 (``Fee Schedule'') to (i) raise the fee for Market and Auction-Only Orders executed in an Opening, Market Order or Trading Halt Auction; (ii) modify the credits the Exchange provides for routing certain orders to the New York Stock Exchange LLC (``NYSE''); and (iii) revise the Tape B Step Up Tier. The Exchange proposes to implement the changes on July 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 the Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to amend the Fee Schedule to (i) raise the Tier 1 and Tier 2 fee for Market and Auction-Only Orders executed in an Opening, Market Order or Trading Halt Auction and make corresponding changes in the Basic Rate pricing; (ii) modify the Tier 1 and Tier 2 credits the Exchange provides for routing certain orders to the NYSE and make corresponding changes in the Basic Rate pricing; and (iii) revise the Tape B Step Up Tier. The Exchange proposes to implement the fee changes on July 1, 2015. For Tier 1 and Tier 2, the Exchange currently charges $0.0010 per share for Market and Auction-Only Orders executed in an Opening, Market Order or Trading Halt Auction with a cap of $20,000 per month per Equity Trading Permit ID. The Exchange proposes to raise this fee from $0.0010 to $0.0015 per share. The Exchange is not proposing any change to the cap. The Exchange proposes to make corresponding changes to the Basic Rate pricing section of the Fee Schedule. Specifically, in the Basic Rate pricing section, the current fee for Market and Auction-Only Orders executed in an Opening, Market Order or Trading Halt Auction is $0.0010 per share, with a cap of $20,000 per month per Equity Trading Permit ID. The Exchange proposes to raise this fee to $0.0015 per share. The Exchange is not proposing any change to the cap. In a recent rule filing, the NYSE has proposed to modify its fee structure for equities transaction, including changes to the rates for providing liquidity, to become effective July 1, 2015.\4\ The Exchange's current credits for routing orders to NYSE are closely related to the NYSE's rates, including credits for providing liquidity, and the Exchange is proposing an adjustment to its routing credits to maintain the existing relationship to the rates proposed by the NYSE. Specifically, for Tier 1 and Tier 2 PO+ orders,\5\ the current Exchange credit for orders that are routed to the NYSE that provide liquidity to the NYSE is $0.0015 per share, which is equal to the current NYSE rebate for execution of customer orders that add liquidity to the NYSE. The Exchange is proposing to lower the credits for routing Tier 1 and Tier 2 PO+ Orders to the NYSE by the same amount ($0.0001) as the decrease in the corresponding NYSE credit. The proposed new credit for such orders routed to the NYSE that provide liquidity to the NYSE would be $0.0014 per share. This proposed fee change would maintain the current relationship with NYSE rates. --------------------------------------------------------------------------- \4\ See SR-NYSE-2015-30. \5\ A PO+ Order is a Primary Only Order (i.e., a market or limit order that is to be routed to the primary market) that is entered for participation in the primary market, other than for participation in the primary market opening or primary market re- opening. See NYSE Arca Equities Rule 7.31(f)(1)(C). --------------------------------------------------------------------------- The Exchange proposes to make corresponding changes to the Basic Rate pricing section of the Fee Schedule. Currently, the credit for PO+ Orders that provide liquidity to the NYSE is set at $0.0015 per share. The Exchange proposes to lower this credit to $0.0014 per share. Again, this proposed fee change would maintain the current relationship with NYSE rates. Finally, the Exchange proposes to revise the Tape B Step Up Tier. Currently, ETP Holders and Market Makers, that, on a daily basis, measured monthly, directly execute providing volume in Tape B Securities during a billing month (``Tape B Adding ADV'') that is equal to at least 0.275% of the U.S. Tape B Consolidated Average Daily Volume (``Tape B CADV'') for the billing month over the ETP Holder's or Market Maker's May 2013 Tape B Adding ADV taken as a percentage of Tape B CADV (``Tape B Baseline % CADV'') receive a credit of $0.0004 per share for orders that provide liquidity to the Exchange in Tape B Securities, which is in addition to the ETP Holder's Tiered or Basic Rate credit(s). The Exchange proposes to specify in the Fee Schedule that ETP Holders that qualify for the Cross-Asset Tier would not be eligible to qualify for the Tape B Step Up Tier. The Exchange believes that the credit of $0.0030 per share is sufficient that an ETP Holder that qualifies for the Cross-Asset Tier should not also receive the increased credits applicable to the Tape B Step Up Tier. Similar to Retail Order Tier ETP Holders and Market Makers, who are currently ineligible to qualify for the Tape B Step Up Tier, the Exchange proposes to exclude Cross-Asset Tier ETP Holders from also qualifying for the Tape B Step Up Tier. The proposed changes are not otherwise intended to address any other issues, and the Exchange is not aware of any problems that ETP Holders would have in complying with the proposed changes. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with [[Page 42861]] Section 6(b) of the Act,\6\ in general, and furthers the objectives of Sections 6(b)(4) and (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 fee increase for Market and Auction-Only Orders executed in an Opening, Market Order or Trading Halt Auction are reasonable because they are the same as the fees imposed by at least one other exchange.\8\ In addition, the proposed fee changes are equitable and not unfairly discriminatory because they apply uniformly to all similarly situated ETP Holders. --------------------------------------------------------------------------- \8\ See NASDAQ Crossing Network Fees at http://www.nasdaqtrader.com/Trader.aspx?id=PriceListTrading2. --------------------------------------------------------------------------- The Exchange believes that the proposed changes to routing credits for PO+ Orders that provide liquidity to the NYSE are reasonable because the Exchange's credits for routing such orders are closely related to the NYSE's rebates for its members for providing liquidity, and the proposed change is consistent with the change proposed by the NYSE to lower its rebate for providing liquidity. The proposed change would result in maintaining the existing relationship between the two sets of fees. In addition, the Exchange believes that the proposed rule change, which would result in a decrease in the per share credit for PO+ Orders routed to the NYSE that provide liquidity to the NYSE, would thereby align the rate that the Exchange provides to ETP Holders with the rate that NYSE provides to its members for providing liquidity. Further, the proposed change is equitable and not unfairly discriminatory because the rebate reduction would apply uniformly across pricing tiers and all similarly situated ETP Holders would be subject to the same credit. The Exchange believes that prohibiting Cross-Asset Tier ETP Holders from qualifying for the Tape B Step Up Tier is reasonable, equitable and not unfairly discriminatory because ETP Holders that qualify for the Cross-Asset Tier would already receive a higher credit of $0.0030 before the Tape B Step Up Credit, which is higher than other tiers with the Tape B Step Up credit. For example, Tier 1 ETP Holders that qualify for Tape B Step Up Tier would receive a Tier 1 credit of $0.0023 plus a Tape B Step Up credit of $0.0004 for a total credit of $0.0027, compared with the standalone Cross-Asset credit of $0.0030. The Exchange notes that Cross-Asset Tier ETP Holders and Market Makers currently do not qualify for Tape C Step Up Tier 2 credit. Finally, the Exchange believes that it is subject to significant competitive forces, as described below in the Exchange's statement regarding the burden on competition. For these reasons, the Exchange believes that the proposal is consistent with the Act. B. Self-Regulatory Organization's Statement on Burden on Competition In accordance with Section 6(b)(8) of the Act,\9\ the Exchange believes that the proposed rule change would not impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. In particular, the proposed routing credit changes would not place a burden on competition because the Exchange is seeking to align its credits with the credits provided by the NYSE.\10\ In addition, the proposed change to the Exchange's fee for Market and Auction-Only Orders executed in an Opening, Market Order or Trading Halt Auction is consistent with the fee charged by at least one other exchange.\11\ --------------------------------------------------------------------------- \9\ 15 U.S.C. 78f(b)(8). \10\ See supra note 4. \11\ See supra note 8. --------------------------------------------------------------------------- The Exchange does not believe prohibiting Cross-Asset Tier ETP Holders from qualifying for increased credit(s) will impair ETP Holders' ability to compete. The Exchange already provides a credit for Cross-Asset Tier ETP Holders and ETP Holders impacted by the proposed change may readily adjust their trading behavior to maintain or increase their credits or decrease their fees in a favorable manner. 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 promotes a competitive environment. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others No written comments were solicited or received with respect to the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing rule change is effective upon filing pursuant to Section 19(b)(3)(A) \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-2015-55 on the subject line. Paper Comments Send paper comments in triplicate to Brent J. Fields, Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090. All submissions should refer to File Number SR-NYSEARCA-2015-55. 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 [[Page 42862]] 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 Section, 100 F Street NE., Washington, DC 20549-1090. 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-2015-55 and should be submitted on or before August 7, 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. 2015-17660 Filed 7-17-15; 8:45 am] BILLING CODE 8011-01-P
![42860 Federal Register / Vol. 80, No. 138 / Monday, July 20, 2015 / Notices
SECURITIES AND EXCHANGE of the most significant parts of such NYSE is $0.0015 per share, which is
COMMISSION statements. equal to the current NYSE rebate for
execution of customer orders that add
[Release No. 34–75449; File No. SR– A. Self-Regulatory Organization’s
liquidity to the NYSE. The Exchange is
NYSEARCA–2015–55] Statement of the Purpose of, and the
proposing to lower the credits for
Statutory Basis for, the Proposed Rule
Self-Regulatory Organizations; NYSE routing Tier 1 and Tier 2 PO+ Orders to
Change the NYSE by the same amount ($0.0001)
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed 1. Purpose as the decrease in the corresponding
Rule Change Amending the NYSE Arca NYSE credit. The proposed new credit
The Exchange proposes to amend the
Equities Schedule of Fees and for such orders routed to the NYSE that
Fee Schedule to (i) raise the Tier 1 and
Charges for Exchange Services provide liquidity to the NYSE would be
Tier 2 fee for Market and Auction-Only
$0.0014 per share. This proposed fee
Orders executed in an Opening, Market
July 14, 2015. change would maintain the current
Order or Trading Halt Auction and
Pursuant to Section 19(b)(1) 1 of the relationship with NYSE rates.
make corresponding changes in the The Exchange proposes to make
Securities Exchange Act of 1934 (the
Basic Rate pricing; (ii) modify the Tier corresponding changes to the Basic Rate
‘‘Act’’) 2 and Rule 19b–4 thereunder,3
1 and Tier 2 credits the Exchange pricing section of the Fee Schedule.
notice is hereby given that, on June 24,
provides for routing certain orders to the Currently, the credit for PO+ Orders that
2015, NYSE Arca, Inc. (the ‘‘Exchange’’
NYSE and make corresponding changes provide liquidity to the NYSE is set at
or ‘‘NYSE Arca’’) filed with the
in the Basic Rate pricing; and (iii) revise $0.0015 per share. The Exchange
Securities and Exchange Commission
the Tape B Step Up Tier. The Exchange proposes to lower this credit to $0.0014
(the ‘‘Commission’’) the proposed rule
proposes to implement the fee changes per share. Again, this proposed fee
change as described in Items I, II, and
on July 1, 2015. change would maintain the current
III below, which Items have been
For Tier 1 and Tier 2, the Exchange relationship with NYSE rates.
prepared by the self-regulatory
currently charges $0.0010 per share for Finally, the Exchange proposes to
organization. The Commission is
Market and Auction-Only Orders revise the Tape B Step Up Tier.
publishing this notice to solicit
executed in an Opening, Market Order Currently, ETP Holders and Market
comments on the proposed rule change
or Trading Halt Auction with a cap of Makers, that, on a daily basis, measured
from interested persons.
$20,000 per month per Equity Trading monthly, directly execute providing
I. Self-Regulatory Organization’s Permit ID. The Exchange proposes to volume in Tape B Securities during a
Statement of the Terms of Substance of raise this fee from $0.0010 to $0.0015 billing month (‘‘Tape B Adding ADV’’)
the Proposed Rule Change per share. The Exchange is not that is equal to at least 0.275% of the
The Exchange proposes to amend the proposing any change to the cap. U.S. Tape B Consolidated Average Daily
NYSE Arca Equities Schedule of Fees The Exchange proposes to make Volume (‘‘Tape B CADV’’) for the billing
and Charges for Exchange Services corresponding changes to the Basic Rate month over the ETP Holder’s or Market
(‘‘Fee Schedule’’) to (i) raise the fee for pricing section of the Fee Schedule. Maker’s May 2013 Tape B Adding ADV
Market and Auction-Only Orders Specifically, in the Basic Rate pricing taken as a percentage of Tape B CADV
executed in an Opening, Market Order section, the current fee for Market and (‘‘Tape B Baseline % CADV’’) receive a
or Trading Halt Auction; (ii) modify the Auction-Only Orders executed in an credit of $0.0004 per share for orders
credits the Exchange provides for Opening, Market Order or Trading Halt that provide liquidity to the Exchange in
routing certain orders to the New York Auction is $0.0010 per share, with a cap Tape B Securities, which is in addition
Stock Exchange LLC (‘‘NYSE’’); and (iii) of $20,000 per month per Equity to the ETP Holder’s Tiered or Basic Rate
revise the Tape B Step Up Tier. The Trading Permit ID. The Exchange credit(s). The Exchange proposes to
Exchange proposes to implement the proposes to raise this fee to $0.0015 per specify in the Fee Schedule that ETP
changes on July 1, 2015. share. The Exchange is not proposing Holders that qualify for the Cross-Asset
The text of the proposed rule change any change to the cap. Tier would not be eligible to qualify for
is available on the Exchange’s Web site In a recent rule filing, the NYSE has the Tape B Step Up Tier. The Exchange
at www.nyse.com, at the principal office proposed to modify its fee structure for believes that the credit of $0.0030 per
of the Exchange, and at the equities transaction, including changes share is sufficient that an ETP Holder
Commission’s Public Reference Room. to the rates for providing liquidity, to that qualifies for the Cross-Asset Tier
become effective July 1, 2015.4 The should not also receive the increased
II. Self-Regulatory Organization’s Exchange’s current credits for routing credits applicable to the Tape B Step Up
Statement of the Purpose of, and orders to NYSE are closely related to the Tier. Similar to Retail Order Tier ETP
Statutory Basis for, the Proposed Rule NYSE’s rates, including credits for Holders and Market Makers, who are
Change providing liquidity, and the Exchange is currently ineligible to qualify for the
In its filing with the Commission, the proposing an adjustment to its routing Tape B Step Up Tier, the Exchange
self-regulatory organization included credits to maintain the existing proposes to exclude Cross-Asset Tier
statements concerning the purpose of, relationship to the rates proposed by the ETP Holders from also qualifying for the
and basis for, the proposed rule change NYSE. Specifically, for Tier 1 and Tier Tape B Step Up Tier.
and discussed any comments it received 2 PO+ orders,5 the current Exchange The proposed changes are not
on the proposed rule change. The text credit for orders that are routed to the otherwise intended to address any other
mstockstill on DSK4VPTVN1PROD with NOTICES
of those statements may be examined at NYSE that provide liquidity to the issues, and the Exchange is not aware of
the places specified in Item IV below. any problems that ETP Holders would
The Exchange has prepared summaries, 4 See
SR–NYSE–2015–30. have in complying with the proposed
5A
PO+ Order is a Primary Only Order (i.e., a
set forth in sections A, B, and C below, changes.
market or limit order that is to be routed to the
1 15
primary market) that is entered for participation in 2. Statutory Basis
U.S.C. 78s(b)(1). the primary market, other than for participation in
2 15 U.S.C. 78a.
the primary market opening or primary market re- The Exchange believes that the
3 17 CFR 240.19b–4. opening. See NYSE Arca Equities Rule 7.31(f)(1)(C). proposed rule change is consistent with
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![42862 Federal Register / Vol. 80, No. 138 / Monday, July 20, 2015 / Notices
Internet Web site (http://www.sec.gov/ Commission is publishing this notice to executed will be replaced with a single
rules/sro.shtml). Copies of the solicit comments on the proposed rule credit tier of $0.0020 per share executed
submission, all subsequent change from interested persons. for all orders with midpoint pegging 3
amendments, all written statements that provide liquidity to create further
I. Self-Regulatory Organization’s
with respect to the proposed rule incentives to provide midpoint liquidity
Statement of the Terms of Substance of
change that are filed with the on PSX for the benefit of investors and
Commission, and all written the Proposed Rule Change other market participants.
communications relating to the The Exchange proposes to amend the
2. Statutory Basis
proposed rule change between the Exchange’s Pricing Schedule under
Commission and any person, other than Section VIII, entitled ‘‘NASDAQ OMX The Exchange believes that the
those that may be withheld from the PSX FEES,’’ with respect to execution proposed rule change is consistent with
public in accordance with the and routing of orders in securities the provisions of Section 6 of the Act,4
provisions of 5 U.S.C. 552, will be priced at $1 or more per share. in general, and with Section 6(b)(4) and
available for Web site viewing and While the changes proposed herein 6(b)(5) of the Act,5 in particular, in that
printing in the Commission’s Public are effective upon filing, the Exchange it provides for the equitable allocation
Reference Section, 100 F Street NE., has designated that the amendments be of reasonable dues, fees and other
Washington, DC 20549–1090. Copies of operative on July 1, 2015. charges among members and issuers and
the filing will also be available for The text of the proposed rule change other persons using any facility or
inspection and copying at the NYSE’s is available on the Exchange’s Web site system which the Exchange operates or
principal office and on its Internet Web at http:// controls, and is not designed to permit
site at www.nyse.com. All comments nasdaqomxphlx.cchwallstreet.com/, at unfair discrimination between
received will be posted without change; the principal office of the Exchange, and customers, issuers, brokers, or dealers.
the Commission does not edit personal at the Commission’s Public Reference The proposed increases to the credits
identifying information from Room. in the fee schedule under the
submissions. You should submit only Exchange’s Pricing Schedule under
information that you wish to make II. Self-Regulatory Organization’s Section VIII are reflective of the
available publicly. All submissions Statement of the Purpose of, and Exchange’s ongoing efforts to use
should refer to File Number SR– Statutory Basis for, the Proposed Rule pricing incentive programs to attract
NYSEARCA–2015–55 and should be Change order flow to the Exchange and improve
submitted on or before August 7, 2015. In its filing with the Commission, the market quality. The goal of these pricing
Exchange included statements incentives is to provide meaningful
For the Commission, by the Division of
Trading and Markets, pursuant to delegated concerning the purpose of and basis for incentives for members to increase their
authority.15 the proposed rule change and discussed participation on the Exchange.
any comments it received on the The Exchange is proposing to increase
Robert W. Errett,
proposed rule change. The text of these non-displayed order credits for all
Deputy Secretary.
orders with midpoint pegging that
[FR Doc. 2015–17660 Filed 7–17–15; 8:45 am] statements may be examined at the
provide liquidity through PSX by
places specified in Item IV below. The
BILLING CODE 8011–01–P replacing the existing two such tiers
Exchange has prepared summaries, set
with a single tier. Specifically, the credit
forth in sections A, B, and C below, of
tiers for non-displayed orders of a
SECURITIES AND EXCHANGE the most significant aspects of such
$0.0015 per share executed credit for
COMMISSION statements.
orders with midpoint pegging that
[Release No. 34–75446; File No. SR–Phlx– A. Self-Regulatory Organization’s provide liquidity entered by a member
2015–58] Statement of the Purpose of, and organization that provides 1,000,000
Statutory Basis for, the Proposed Rule shares or more average daily volume of
Self-Regulatory Organizations; Change non-displayed liquidity during the
NASDAQ OMX PHLX LLC; Notice of month and the credit tier for non-
Filing and Immediate Effectiveness of 1. Purpose displayed orders of $0.0010 per share
Proposed Rule Change Relating to the The purpose of the proposed rule executed will be replaced with a single
Exchange’s Pricing Schedule under change is to amend certain credits for credit tier of $0.0020 per share executed
Section VIII With Respect to Execution order execution and routing applicable for all orders with midpoint pegging
and Routing of Orders in Securities to the use of the order execution and that provide liquidity.
Priced at $1 or More per Share routing services of the NASDAQ OMX The Exchange believes the proposed
July 14, 2015. PSX System (‘‘PSX’’) by member change is reasonable because the
Pursuant to Section 19(b)(1) of the organizations for all securities traded at increase to the credit for all orders with
Securities Exchange Act of 1934 $1 or more per share. midpoint pegging that provide liquidity
(‘‘Act’’),1 and Rule 19b–4 2 thereunder, The Exchange will increase non- provides member organizations with a
notice is hereby given that, on June 30, displayed order credits for all orders uniform credit designed to incentivize
2015, NASDAQ OMX PHLX LLC with midpoint pegging that provide increased midpoint liquidity on PSX.
(‘‘Phlx’’ or ‘‘Exchange’’) filed with the liquidity through PSX. Specifically, the Additionally, the Exchange believes
Securities and Exchange Commission credit tiers for non-displayed orders of providing a greater credit will act as an
incentive for members to increase their
mstockstill on DSK4VPTVN1PROD with NOTICES
(‘‘Commission’’) the proposed rule a $0.0015 per share executed credit for
change as described in Items I, II, and orders with midpoint pegging that participation on the Exchange.
III, below, which Items have been provide liquidity entered by a member
3 Including the Midpoint Peg Post-Only Order
prepared by the Exchange. The organization that provides 1,000,000
recently filed with the Commission, once effective
shares or more average daily volume of and operative. See SR–PHLX–2015–056 (as recently
15 17 CFR 200.30–3(a)(12). non-displayed liquidity during the filed).
1 15 U.S.C. 78s(b)(1). month and the credit tier for non- 4 15 U.S.C. 78f.
2 17 CFR 240.19b–4. displayed orders of $0.0010 per share 5 15 U.S.C. 78f(b)(4) and (5).
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Document Created: 2015-12-15 12:58:24
Document Modified: 2015-12-15 12:58:24
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
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| Section | Notices | |
| FR Citation | 80 FR 42860 |
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