80 FR 48129 - Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending the NYSE Amex Options Fee Schedule To Modify the Securities That Are Subject to the NYSE Amex Options Market Maker Premium Product Fees
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 154 (August 11, 2015)
Federal Register Volume 80, Issue 154 (August 11, 2015)
| Page Range | 48129-48131 | |
| FR Document | 2015-19647 |
[Federal Register Volume 80, Number 154 (Tuesday, August 11, 2015)] [Notices] [Pages 48129-48131] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-19647] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-75614; File No. SR-NYSEMKT-2015-62] Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending the NYSE Amex Options Fee Schedule To Modify the Securities That Are Subject to the NYSE Amex Options Market Maker Premium Product Fees August 5, 2015. Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 1934 (the [[Page 48130]] ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given that, on August 4, 2015, NYSE MKT LLC (the ``Exchange'' or ``NYSE MKT'') filed with the Securities and Exchange Commission (the ``Commission'') the proposed rule change as described in Items I, 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 Amex Options Fee Schedule (``Fee Schedule'') to modify the securities that are subject to the NYSE Amex Options Market Maker Premium Product Fees. The Exchange proposes to implement the fee change effective August 4, 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 purpose of this filing is to modify the securities that are subject to the NYSE Amex Options Market Maker Premium Product Fees. The Exchange proposes to implement the fee change effective August 4, 2015. In August, 2012, the Exchange introduced the Premium Product Fees, which charges a monthly fee to any NYSE Amex Options Market Maker transacting in the most active issues trading on the Exchange.\4\ Section III.D. of the Fee Schedule sets forth the list of 10 Premium Products--SPY, AAPL, IWM, QQQ, BAC, EEM, GLD, JPM, XLF, and VXX. Subject to exceptions, NYSE Amex Options Marker Makers that transact in these issues are subject to a fee of $1,000 per product traded with a monthly cap of $7,000.\5\ --------------------------------------------------------------------------- \4\ See Securities Exchange Act Release No. 67634 (August 9, 2012), 77 FR 49038 (August 15, 2012) (SR-NYSEMKT-2012-33) (``Premium Product Filing''). \5\ The Premium Product Fees do not apply to Market Makers that qualify as NYSE Amex Options Floor Market Makers as described in note 1 to Section III.A of the Fee Schedule. See Fee Schedule, Section III.D. and III.A. --------------------------------------------------------------------------- The Exchange proposes to amend the list of Premium Products to reflect the most actively traded securities on the Exchange today, which have changed since the fees were introduced in 2012.\6\ Specifically, the Exchange proposes to remove GLD, JPM, and XLF from the list of Premium Products and to replace them with BABA, FB and USO. The Exchange believes that the proposed change would continue to encourage meaningful Market Maker participation in the most active issues on the Exchange. In this regard, the Exchange proposes to amend Section III.D. to the Fee Schedule to reflect the proposed changes to the list of Premium Product. --------------------------------------------------------------------------- \6\ The Exchange represented in the Premium Product Filing that ``any change to the list of Premium Products would be done through a fee filing.'' See supra n. 4, 77 FR at 49038. --------------------------------------------------------------------------- 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with Section 6(b) of the Act,\7\ in general, and furthers the objectives of Sections 6(b)(4) and (5) of the Act,\8\ 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. --------------------------------------------------------------------------- \7\ 15 U.S.C. 78f(b). \8\ 15 U.S.C. 78f(b)(4) and (5). --------------------------------------------------------------------------- The Exchange believes that the change to the list of Premium Products is reasonable, equitable, and not unfairly discriminatory because the proposed change applies to all NYSE Amex Options Market Makers equally, except for those market makers who qualify as NYSE Amex Floor Market Makers and achieve 75% or more of their volumes in open or public outcry, which Marker Makers are exempt because the Exchange believes that public outcry markets serve an important role in the price discovery process that benefits all participants on the Exchange and in the marketplace.\9\ As the Exchange noted in 2012 in the Premium Products Filing, because the Exchange does not limit the number of participants who may act as market makers, either electronically or in public outcry, the Exchange has more than sufficient liquidity in the most active options on the Exchange. The proposed change simply updates the list of Premium Products to include those names most actively traded on the Exchange. --------------------------------------------------------------------------- \9\ See supra n. 5. --------------------------------------------------------------------------- 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. --------------------------------------------------------------------------- \10\ 15 U.S.C. 78f(b)(8). --------------------------------------------------------------------------- The Exchange notes that it operates in a highly competitive market in which market participants can readily favor competing venues. In such an environment, the Exchange must continually review, and consider adjusting, its fees and credits to remain competitive with other exchanges. For the reasons described above, the Exchange believes that the proposed rule change reflects this competitive environment. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others No written comments were solicited or received with respect to the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The 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. --------------------------------------------------------------------------- \11\ 15 U.S.C. 78s(b)(3)(A). \12\ 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 [[Page 48131]] 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. --------------------------------------------------------------------------- \13\ 15 U.S.C. 78s(b)(2)(B). --------------------------------------------------------------------------- IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic 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-NYSEMKT-2015-62 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-NYSEMKT-2015-62. 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 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-NYSEMKT-2015-62 and should be submitted on or before September 1, 2015. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\14\ --------------------------------------------------------------------------- \14\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2015-19647 Filed 8-10-15; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 80, No. 154 / Tuesday, August 11, 2015 / Notices 48129
December 31, 2014, there were 175 per day.6 We estimate a total of dealer is claiming credit, 2,572,657
participants of NSCC, the primary 2,557,800 notifications in accordance times per year (4,184 broker-dealers
registered clearing agency responsible with Rule 204(c) across all participants checking for compliance once per day
for clearing U.S. transactions that were per year (175 participants notifying on 2.44 securities, multiplied by 252
registered as broker-dealers.3 If a broker-dealers once per day on 58 trading days in a year). The total
participant of a registered clearing securities, multiplied by 252 trading approximate estimated annual burden
agency has a fail to deliver position in days in a year). The total estimated hour per year will be approximately
an equity security at a registered annual burden hours per year will be 411,625 burden hours (2,572,657
clearing agency and determines that approximately 409,248 burden hours multiplied by 0.16 hours/
such fail to deliver position resulted (2,557,800 @0.16 hours/documentation). demonstration).
from a long sale, we estimate that a IV. Certification Requirement: If the
The total aggregate annual burden for
participant of a registered clearing broker-dealer determines that it has not
the collection of information undertaken
agency will have to make such incurred a fail to deliver position on
pursuant to all five provisions is thus
settlement date in an equity security for
determination with respect to 1,912,251 hours per year (411,625 +
which the participant has a fail to
approximately 38 securities per day.4 268,128 + 409,248 + 411,625 + 411,625).
deliver position at a registered clearing
We estimate a total of 1,675,800 An agency may not conduct or sponsor,
agency or has purchased securities in
demonstrations in accordance with Rule and a person is not required to respond
accordance with the conditions
204(a)(1) across all participants per year specified in Rule 204(e), we estimate to, a collection of information under the
(175 participants checking for that a broker-dealer will have to make PRA unless it displays a currently valid
compliance once per day on 38 such determinations with respect to OMB control number.
securities, multiplied by 252 trading approximately 2.44 securities per day. The public may review background
days in a year). The total approximate As of December 31, 2014, there were documentation for this information
estimated annual burden hour per year 4,184 registered broker-dealers. Each of collection at the following Web site:
will be approximately 268,128 burden these broker-dealers may clear trades www.reginfo.gov. Comments should be
hours (1,675,800 multiplied by 0.16 through a participant of a registered directed to: (i) Desk Officer for the
hours/documentation). clearing agency. We estimate that on Securities and Exchange Commission,
III. Pre-Borrow Notification average, a broker-dealer will have to Office of Information and Regulatory
Requirement: As of December 31, 2014, certify to the participant that it has not Affairs, Office of Management and
there were 175 participants of NSCC, incurred a fail to deliver position on Budget, Room 10102, New Executive
the primary registered clearing agency settlement date in an equity security for Office Building, Washington, DC 20503,
responsible for clearing U.S. which the participant has a fail to or by sending an email to: Shagufta_
transactions that were registered as deliver position at a registered clearing Ahmed@omb.eop.gov; and (ii) Pamela
broker-dealers.5 If a participant of a agency or, alternatively, that it is in Dyson, Director/Chief Information
registered clearing agency has a fail to compliance with the requirements set Officer, Securities and Exchange
deliver position in an equity security forth in Rule 204(e), 2,572,657 times per Commission, c/o Remi Pavlik-Simon,
and after the beginning of regular year (4,184 broker-dealers certifying 100 F Street NE., Washington DC 20549,
trading hours on the applicable close- once per day on 2.44 securities, or by sending an email to: PRA_
out date, the participant has to multiplied by 252 trading days in a Mailbox@sec.gov. Comments must be
determine whether or not the fail to year). The total approximate estimated submitted to OMB within 30 days of
deliver position was closed out in annual burden hour per year will be this notice.
accordance with Rule 204(a). We approximately 411,625 burden hours Dated: August 5, 2015.
estimate that a participant of a (2,572,657 multiplied by 0.16 hours/
Robert W. Errett,
registered clearing agency will have to certification).
V. Pre-Fail Credit Demonstration Deputy Secretary.
make such determination with respect [FR Doc. 2015–19649 Filed 8–10–15; 8:45 am]
Requirement: If a broker-dealer
to approximately 58 equity securities
purchases or borrows securities in BILLING CODE 8011–01–P
3 Those
accordance with the conditions
participants not registered as broker-
dealers include such entities as banks, U.S.-
specified in Rule 204(e) and determines
registered exchanges, and clearing agencies. that it has a net long position or net flat SECURITIES AND EXCHANGE
Although these entities are participants of a position on the settlement day on which COMMISSION
registered clearing agency, generally these entities the broker-dealer purchases or borrows
do not engage in the types of activities that will securities we estimate that a broker- [Release No. 34–75614; File No. SR–
implicate the close-out requirements of the rule.
Such activities of these entities include creating and dealer will have to make such NYSEMKT–2015–62]
redeeming Exchange Traded Funds, trading in determination with respect to
municipal securities, and using NSCC’s Envelope approximately 2.44 securities per day.7 Self-Regulatory Organizations; NYSE
Settlement Service or Inter-city Envelope As of December 31, 2014, there were MKT LLC; Notice of Filing and
Settlement Service. These activities rarely lead to Immediate Effectiveness of Proposed
fails to deliver and, if fails to deliver do occur, they 4,184 registered broker-dealers. We
are small in number and are usually closed out estimate that on average, a broker-dealer Rule Change Amending the NYSE
within a day. will have to demonstrate in its books Amex Options Fee Schedule To Modify
4 DERA estimates approximately 65.1% of trades
and records that it has a net long the Securities That Are Subject to the
asabaliauskas on DSK5VPTVN1PROD with NOTICES
are long sales as of March 2014 and applies this NYSE Amex Options Market Maker
percentage to the number of fail to deliver positions
position or net flat position on the
per day. DERA estimates that there are settlement day for which the broker- Premium Product Fees
approximately 10,208 fail to deliver positions per
August 5, 2015.
settlement day. Across 175 broker-dealer 6 DERA estimates that there are approximately
participants of the NSCC, the number of securities 10,208 fail to deliver positions per day. Across 175 Pursuant to Section 19(b)(1) 1 of the
per participant per day is approximately 58 equity broker-dealer participants of the NSCC, the number
securities. 65.1% of 58 securities per day is of securities per participant per day is
Securities Exchange Act of 1934 (the
approximately 38 securities per day. approximately 58 equity securities.
5 See supra note 3. 7 See supra note 1. 1 15 U.S.C. 78s(b)(1).
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![Federal Register / Vol. 80, No. 154 / Tuesday, August 11, 2015 / Notices 48131
the purposes of the Act. If the submitted on or before September 1, SECURITIES AND EXCHANGE
Commission takes such action, the 2015. COMMISSION
Commission shall institute proceedings For the Commission, by the Division of
under Section 19(b)(2)(B) 13 of the Act to Trading and Markets, pursuant to delegated Proposed Collection; Comment
determine whether the proposed rule authority.14 Request
change should be approved or Robert W. Errett, Upon Written Request, Copies Available
disapproved. Deputy Secretary. From: Securities and Exchange
IV. Solicitation of Comments [FR Doc. 2015–19647 Filed 8–10–15; 8:45 am] Commission, Office of FOIA Services,
Interested persons are invited to BILLING CODE 8011–01–P 100 F Street NE., Washington, DC
submit written data, views, and 20549–2736.
arguments concerning the foregoing, Extension:
including whether the proposed rule SECURITIES AND EXCHANGE Rule 17Ad–13; SEC File No. 270–263;
change is consistent with the Act. COMMISSION OMB Control No. 3235–0275.
Comments may be submitted by any of Sunshine Act Meeting Notice is hereby given that pursuant
the following methods: to the Paperwork Reduction Act of 1995
(‘‘PRA’’) (44 U.S.C. 3501 et seq.) the
Electronic Comments Notice is hereby given, pursuant to
Securities and Exchange Commission
• Use the Commission’s Internet the provisions of the Government in the
(‘‘Commission’’) is soliciting comments
comment form (http://www.sec.gov/ Sunshine Act, Public Law 94–409, that
on the collection of information
rules/sro.shtml); or the Securities and Exchange
provided for in Rule 17Ad–13 (17 CFR
• Send an email to rule-comments@ Commission will hold a Closed Meeting
240.17Ad–13). The Commission plans
sec.gov. Please include File Number SR– on Thursday, August 13, 2015 at 2 p.m.
to submit this existing collection of
NYSEMKT–2015–62 on the subject line. Commissioners, Counsel to the information to the Office of
Paper Comments Commissioners, the Secretary to the Management and Budget (‘‘OMB’’) for
Commission, and recording secretaries extension and approval.
• Send paper comments in triplicate will attend the Closed Meeting. Certain Rule 17Ad–13 (17 CFR 240.17Ad–13)
to Brent J. Fields, Secretary, Securities staff members who have an interest in requires an annual study and evaluation
and Exchange Commission, 100 F Street the matters also may be present. of internal accounting controls under
NE., Washington, DC 20549–1090. the Securities Exchange Act of 1934 (15
The General Counsel of the
All submissions should refer to File Commission, or her designee, has U.S.C. 78a et seq.). It requires
Number SR–NYSEMKT–2015–62. This certified that, in her opinion, one or approximately 100 registered transfer
file number should be included on the more of the exemptions set forth in 5 agents to obtain an annual report on the
subject line if email is used. To help the U.S.C. 552b(c)(3), (5), (7), 9(B) and (10) adequacy of their internal accounting
Commission process and review your and 17 CFR 200.402(a)(3), (a)(5), (a)(7), controls from an independent
comments more efficiently, please use (a)(9)(ii) and (a)(10), permit accountant. In addition, transfer agents
only one method. The Commission will consideration of the scheduled matter at must maintain copies of any reports
post all comments on the Commission’s the Closed Meeting. prepared pursuant to Rule 17Ad–13
Internet Web site (http://www.sec.gov/ plus any documents prepared to notify
rules/sro.shtml). Copies of the Commissioner Piwowar, as duty
the Commission and appropriate
submission, all subsequent officer, voted to consider the items
regulatory agencies in the event that the
amendments, all written statements listed for the Closed Meeting in closed
transfer agent is required to take any
with respect to the proposed rule session.
corrective action. These recordkeeping
change that are filed with the The subject matter of the Closed requirements assist the Commission and
Commission, and all written Meeting will be: other regulatory agencies with
communications relating to the Institution and settlement of monitoring transfer agents and ensuring
proposed rule change between the injunctive actions; compliance with the rule. Small transfer
Commission and any person, other than Institution and settlement of agents are exempt from Rule 17Ad–13
those that may be withheld from the administrative proceedings; as are transfer agents that service only
public in accordance with the their own companies’ securities.
Adjudicatory matters; and
provisions of 5 U.S.C. 552, will be Approximately 100 independent,
available for Web site viewing and Other matters relating to enforcement professional transfer agents must file the
printing in the Commission’s Public proceedings. independent accountant’s report
Reference Section, 100 F Street NE., At times, changes in Commission annually. We estimate that the annual
Washington, DC 20549–1090. Copies of priorities require alterations in the internal time burden for each transfer
the filing will also be available for scheduling of meeting items. agent to comply with Rule 17Ad–13 by
inspection and copying at the NYSE’s For further information and to submitting the report prepared by the
principal office and on its Internet Web ascertain what, if any, matters have been independent accountant to the
site at www.nyse.com. All comments added, deleted or postponed, please Commission is minimal. The time
received will be posted without change; contact the Office of the Secretary at required for the independent accountant
the Commission does not edit personal to prepare the accountant’s report varies
asabaliauskas on DSK5VPTVN1PROD with NOTICES
(202) 551–5400.
identifying information from with each transfer agent depending on
Dated: August 6, 2015.
submissions. You should submit only the size and nature of the transfer
Brent J. Fields, agent’s operations. The Commission
information that you wish to make
available publicly. All submissions Secretary. estimates that, on average, each report
should refer to File Number SR– [FR Doc. 2015–19754 Filed 8–7–15; 11:15 am] can be completed by the independent
NYSEMKT–2015–62 and should be BILLING CODE 8011–01–P accountant in 120 hours, resulting in a
total of 12,000 external hours annually
13 15 U.S.C. 78s(b)(2)(B). 14 17 CFR 200.30–3(a)(12). (120 hours × 100 reports). The burden
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Document Created: 2016-09-27 22:24:47
Document Modified: 2016-09-27 22:24:47
| 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 48129 |
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