80 FR 50683 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending the NYSE Arca Options Fee Schedule
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 161 (August 20, 2015)
Federal Register Volume 80, Issue 161 (August 20, 2015)
| Page Range | 50683-50685 | |
| FR Document | 2015-20548 |
[Federal Register Volume 80, Number 161 (Thursday, August 20, 2015)] [Notices] [Pages 50683-50685] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-20548] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-75704; File No. SR-NYSEArca-2015-71] Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending the NYSE Arca Options Fee Schedule August 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 August 6, 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 Options Fee Schedule (``Fee Schedule''). The Exchange proposes to implement the fee change effective August 6, 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 purpose of this filing is to modify the rates that Lead Market Makers and Market Makers are charged for Manual Executions, and to establish tiers for the Firm and Broker Dealer Monthly Firm Cap. The Exchange proposes to implement fee changes effective on August 6, 2015. First, the Exchange is proposing to increase the rates that Lead Market Makers and Market Makers are charged for Manual Executions. Currently, Lead Market Makers are assessed a fee of $0.09 per contract, and Market Makers a fee of $0.16 per contract, for Manual Executions. The Exchange proposes to raise each fee $0.09 per contract, to $0.18 for Lead Market Makers, and $0.25 for Market Makers. With this proposed change, the fee for Market Makers would be the same as the fee charged to Firm and Broker Dealer executions. The Lead Market Maker rate would be increased by the same amount, while maintaining a lower rate for Lead Market Makers because Lead Market Makers pay a monthly Rights Fee and have greater quoting obligations. Second, the Exchange is proposing to establish tiers for the Firm and Broker Dealer Monthly Firm Cap that are tied to Customer and Professional Customer Monthly Posting Credit Tiers and Qualifications for Executions in Penny Pilot Issues \4\ (``Customer and Professional Customer Posting Tiers''). At present, the Exchange places a limit, or cap, of $100,000 per month on combined Firm Proprietary Fees and Broker Dealer Fees, for transactions clearing in the customer range, if executed in open outcry (Manual Transactions), including fees for QCC transactions executed by a Floor Broker. The Firm Cap excludes Strategy Executions, Royalty Fees, and firm trades executed via a Joint Back Office agreement, and Mini option contracts. --------------------------------------------------------------------------- \4\ See Fee Schedule, NYSE Arca Options: Trade-Related Charges for Standard Options, Customer and Professional Customer Monthly Posting Credit Tiers and Qualifications for Executions in Penny Pilot Issues (setting forth the monthly volume requirements and credits applied for each tier achieved). --------------------------------------------------------------------------- The Exchange proposes to introduce tiered caps, with $100,000 being the maximum Monthly Firm Cap, which would decrease based on the Firm or Broker Dealer achieving Tier 2 or higher on the Customer and Professional Customer Posting Tiers (``Tiered Firm Caps''). Specifically, the higher Customer and Professional Customer Monthly Posting Credit Tier that a Firm or Broker Dealer achieves, the lower the Tiered Firm Cap, with the Cap getting progressively lower upon achieving higher tiers. The proposed Tiered Firm Caps and the corresponding Customer and Professional Customer Monthly Posting Credit Tiers are set forth in the table below: Firm and Broker Dealer Monthly Firm Cap Tiers ------------------------------------------------------------------------ Customer and professional customer monthly posting credit tier achieved Firm cap ------------------------------------------------------------------------ Base or Tier 1............................................... $100,000 Tier 2....................................................... 85,000 Tier 3....................................................... 80,000 Tier 4....................................................... 75,000 Tier 5....................................................... 70,000 Tier 6....................................................... 65,000 ------------------------------------------------------------------------ 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with Section 6(b) of the Act,\5\ in general, and furthers the objectives of Sections 6(b)(4) and (5) of the Act,\6\ 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. --------------------------------------------------------------------------- \5\ 15 U.S.C. 78f(b). \6\ 15 U.S.C. 78f(b)(4) and (5). --------------------------------------------------------------------------- The Exchange believes that increasing the fees for Lead Market Maker and Market Maker Manual executions is [[Page 50684]] reasonable and not unfairly discriminatory as it brings Market Maker fees in line with the fees paid by Firms and Broker Dealers that engage in trading activity similar to Market Makers. The Exchange also notes that the proposed rate for Market Makers is still lower than the rate charged by competing options exchanges.\7\ The Exchange also notes that other competing options exchanges likewise similarly charge Market Makers the same transaction fees for manual transactions as Broker Dealers and Firms.\8\ The Exchange also notes that Market Makers have alternative avenues to reduce transaction fees not available to Firms and Broker Dealers.\9\ The Exchange also believes that is not unfairly discriminatory to assess a lower rate for Lead Market Makers because Lead Market Makers pay Rights Fees and have more burdensome quoting obligations. --------------------------------------------------------------------------- \7\ See, e.g., NASDAQ OMX PHLX, available here, http://www.nasdaqtrader.com/Micro.aspx?id=phlxpricing (charging market makers $0.30 per contract for manual executions). \8\ See, e.g., NYSE Amex Options, available here, https://www.nyse.com/publicdocs/nyse/markets/amex-options/NYSE_Amex_Options_Fee_Schedule.pdf (charging both non-Amex options market makers and broker deals alike $0.25 per contract for manual executions). \9\ See Fee Schedule (various credits available to Market Makers for posted monthly volume, including for executions in Penny Pilot Issues and SPY and Market Maker Incentive). --------------------------------------------------------------------------- The Exchange also believes that the proposal to institute Tiered Firm Caps is reasonable equitable, and not unfairly discriminatory, as the Tiered Firm Caps would not be meaningful to Customers or Professional Customers that are not charged any transaction charges [sic] Manual Executions. The proposed Tiered Firm Caps are also reasonable, equitable and not unfairly discriminatory towards Market Makers, as Market Makers have alternative avenues to reduce transaction fees not available to Firms and Broker Dealers.\10\ In addition, the Exchange believes that linking the Tiered Firm Caps to the Customer and Professional Customer Posting Credit Tiers would benefit all market participants because it renders the Caps more achievable, which, in turn encourages additional open outcry order flow, with which Market Makers may interact, once fees are capped. Further, the proposed change likewise encourages Firms and Broker Dealers to achieve higher monthly Customer and Professional Customer Posting Tiers, which increases liquidity and provides greater opportunities for all market participants to interact with electronic order flow. This additional volume and liquidity would benefit all Exchange participants through increased opportunities to trade as well as enhancing price discovery and price improvement. --------------------------------------------------------------------------- \10\ See id. --------------------------------------------------------------------------- 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,\11\ 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 would continue to encourage competition, including by attracting a wider variety of business to the Exchange, which would continue to make the Exchange a more competitive venue for, among other things, order execution and price discovery. --------------------------------------------------------------------------- \11\ 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) \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-2015-71 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-2015-71. 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- [[Page 50685]] NYSEArca-2015-71, and should be submitted on or before September 10, 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. 2015-20548 Filed 8-19-15; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 80, No. 161 / Thursday, August 20, 2015 / Notices 50683
Fund to impose Distribution Fees and/ August 6, 2015. The text of the proposed Professional Customer Posting Tiers’’).
or Service Fees. Applicants have agreed rule change is available on the At present, the Exchange places a limit,
to comply with rules 12b–1 and 17d–3 Exchange’s Web site at www.nyse.com, or cap, of $100,000 per month on
as if those rules applied to closed-end at the principal office of the Exchange, combined Firm Proprietary Fees and
investment companies. and at the Commission’s Public Broker Dealer Fees, for transactions
Reference Room. clearing in the customer range, if
Applicants’ Condition
II. Self-Regulatory Organization’s executed in open outcry (Manual
Applicants agree that any order Transactions), including fees for QCC
granting the requested relief will be Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule transactions executed by a Floor Broker.
subject to the following condition: The Firm Cap excludes Strategy
Applicants will comply with the Change
Executions, Royalty Fees, and firm
provisions of rules 6c–10, 12b–1, 17d– In its filing with the Commission, the trades executed via a Joint Back Office
3, 18f–3 and 22d–1 under the Act, as self-regulatory organization included agreement, and Mini option contracts.
amended from time to time or replaced, statements concerning the purpose of, The Exchange proposes to introduce
as if those rules applied to closed-end and basis for, the proposed rule change tiered caps, with $100,000 being the
management investment companies, and discussed any comments it received maximum Monthly Firm Cap, which
and will comply with the NASD on the proposed rule change. The text would decrease based on the Firm or
Conduct Rule 2830, as amended from of those statements may be examined at Broker Dealer achieving Tier 2 or higher
time to time, as if that rule applied to the places specified in Item IV below. on the Customer and Professional
all closed-end management investment The Exchange has prepared summaries, Customer Posting Tiers (‘‘Tiered Firm
companies. set forth in sections A, B, and C below, Caps’’). Specifically, the higher
For the Commission, by the Division of of the most significant parts of such Customer and Professional Customer
Investment Management, under delegated statements. Monthly Posting Credit Tier that a Firm
authority. A. Self-Regulatory Organization’s or Broker Dealer achieves, the lower the
Robert W. Errett, Statement of the Purpose of, and Tiered Firm Cap, with the Cap getting
Deputy Secretary. Statutory Basis for, the Proposed Rule progressively lower upon achieving
[FR Doc. 2015–20550 Filed 8–19–15; 8:45 am] Change higher tiers.
BILLING CODE 8011–01–P The proposed Tiered Firm Caps and
1. Purpose the corresponding Customer and
The purpose of this filing is to modify Professional Customer Monthly Posting
SECURITIES AND EXCHANGE the rates that Lead Market Makers and Credit Tiers are set forth in the table
COMMISSION Market Makers are charged for Manual below:
Executions, and to establish tiers for the
[Release No. 34–75704; File No. SR–
NYSEArca-2015–71] Firm and Broker Dealer Monthly Firm FIRM AND BROKER DEALER MONTHLY
Cap. The Exchange proposes to FIRM CAP TIERS
Self-Regulatory Organizations; NYSE implement fee changes effective on
Arca, Inc.; Notice of Filing and August 6, 2015. Customer and professional cus-
Immediate Effectiveness of Proposed First, the Exchange is proposing to tomer monthly posting credit tier Firm cap
increase the rates that Lead Market achieved
Rule Change Amending the NYSE Arca
Options Fee Schedule Makers and Market Makers are charged Base or Tier 1 ............................... $100,000
for Manual Executions. Currently, Lead Tier 2 ............................................ 85,000
August 14, 2015. Market Makers are assessed a fee of Tier 3 ............................................ 80,000
Pursuant to Section 19(b)(1) 1 of the $0.09 per contract, and Market Makers Tier 4 ............................................ 75,000
Securities Exchange Act of 1934 (the a fee of $0.16 per contract, for Manual Tier 5 ............................................ 70,000
‘‘Act’’) 2 and Rule 19b-4 thereunder,3 Executions. The Exchange proposes to Tier 6 ............................................ 65,000
notice is hereby given that, on August raise each fee $0.09 per contract, to
6, 2015, NYSE Arca, Inc. (the $0.18 for Lead Market Makers, and 2. Statutory Basis
‘‘Exchange’’ or ‘‘NYSE Arca’’) filed with $0.25 for Market Makers. With this The Exchange believes that the
the Securities and Exchange proposed change, the fee for Market proposed rule change is consistent with
Commission (the ‘‘Commission’’) the Makers would be the same as the fee Section 6(b) of the Act,5 in general, and
proposed rule change as described in charged to Firm and Broker Dealer furthers the objectives of Sections
Items I, II, and III below, which Items executions. The Lead Market Maker rate 6(b)(4) and (5) of the Act,6 in particular,
have been prepared by the self- would be increased by the same because it provides for the equitable
regulatory organization. The amount, while maintaining a lower rate allocation of reasonable dues, fees, and
Commission is publishing this notice to for Lead Market Makers because Lead other charges among its members,
solicit comments on the proposed rule Market Makers pay a monthly Rights issuers and other persons using its
change from interested persons. Fee and have greater quoting facilities and does not unfairly
I. Self-Regulatory Organization’s obligations. discriminate between customers,
Statement of the Terms of Substance of Second, the Exchange is proposing to issuers, brokers or dealers.
the Proposed Rule Change establish tiers for the Firm and Broker The Exchange believes that increasing
Dealer Monthly Firm Cap that are tied the fees for Lead Market Maker and
The Exchange proposes to amend the to Customer and Professional Customer Market Maker Manual executions is
tkelley on DSK3SPTVN1PROD with NOTICES
NYSE Arca Options Fee Schedule (‘‘Fee Monthly Posting Credit Tiers and
Schedule’’). The Exchange proposes to Qualifications for Executions in Penny Tiers and Qualifications for Executions in Penny
implement the fee change effective Pilot Issues 4 (‘‘Customer and Pilot Issues (setting forth the monthly volume
requirements and credits applied for each tier
1 15 U.S.C.78s(b)(1). 4 See Fee Schedule, NYSE Arca Options: Trade- achieved).
2 15 U.S.C. 78a. 5 15 U.S.C. 78f(b).
Related Charges for Standard Options, Customer
3 17 CFR 240.19b-4. and Professional Customer Monthly Posting Credit 6 15 U.S.C. 78f(b)(4) and (5).
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![50684 Federal Register / Vol. 80, No. 161 / Thursday, August 20, 2015 / Notices
reasonable and not unfairly liquidity would benefit all Exchange Commission takes such action, the
discriminatory as it brings Market participants through increased Commission shall institute proceedings
Maker fees in line with the fees paid by opportunities to trade as well as under Section 19(b)(2)(B) 14 of the Act to
Firms and Broker Dealers that engage in enhancing price discovery and price determine whether the proposed rule
trading activity similar to Market improvement. change should be approved or
Makers. The Exchange also notes that For these reasons, the Exchange disapproved.
the proposed rate for Market Makers is believes that the proposal is consistent
IV. Solicitation of Comments
still lower than the rate charged by with the Act.
competing options exchanges.7 The Interested persons are invited to
B. Self-Regulatory Organization’s submit written data, views, and
Exchange also notes that other
Statement on Burden on Competition arguments concerning the foregoing,
competing options exchanges likewise
similarly charge Market Makers the In accordance with Section 6(b)(8) of including whether the proposed rule
same transaction fees for manual the Act,11 the Exchange does not believe change is consistent with the Act.
transactions as Broker Dealers and that the proposed rule change will Comments may be submitted by any of
Firms.8 The Exchange also notes that impose any burden on competition that the following methods:
Market Makers have alternative avenues is not necessary or appropriate in Electronic Comments
to reduce transaction fees not available furtherance of the purposes of the Act.
to Firms and Broker Dealers.9 The Instead, the Exchange believes that the • Use the Commission’s Internet
Exchange also believes that is not proposed change would continue to comment form (http://www.sec.gov/
unfairly discriminatory to assess a lower encourage competition, including by rules/sro.shtml); or
rate for Lead Market Makers because attracting a wider variety of business to • Send an email to rule-comments@
Lead Market Makers pay Rights Fees the Exchange, which would continue to sec.gov. Please include File Number SR–
and have more burdensome quoting make the Exchange a more competitive NYSEArca-2015–71 on the subject line.
obligations. venue for, among other things, order Paper Comments
The Exchange also believes that the execution and price discovery. • Send paper comments in triplicate
proposal to institute Tiered Firm Caps is The Exchange notes that it operates in to Secretary, Securities and Exchange
reasonable equitable, and not unfairly a highly competitive market in which Commission, 100 F Street NE.,
discriminatory, as the Tiered Firm Caps market participants can readily favor Washington, DC 20549–1090.
would not be meaningful to Customers competing venues. In such an
or Professional Customers that are not environment, the Exchange must All submissions should refer to File
charged any transaction charges [sic] continually review, and consider Number SR–NYSEArca-2015–71. This
Manual Executions. The proposed adjusting, its fees and credits to remain file number should be included on the
Tiered Firm Caps are also reasonable, competitive with other exchanges. For subject line if email is used.
To help the Commission process and
equitable and not unfairly the reasons described above, the
review your comments more efficiently,
discriminatory towards Market Makers, Exchange believes that the proposed
please use only one method. The
as Market Makers have alternative rule change reflects this competitive
Commission will post all comments on
avenues to reduce transaction fees not environment.
the Commission’s Internet Web site
available to Firms and Broker Dealers.10
C. Self-Regulatory Organization’s (http://www.sec.gov/rules/sro.shtml).
In addition, the Exchange believes that
Statement on Comments on the Copies of the submission, all subsequent
linking the Tiered Firm Caps to the
Proposed Rule Change Received From amendments, all written statements
Customer and Professional Customer
Members, Participants, or Others with respect to the proposed rule
Posting Credit Tiers would benefit all
No written comments were solicited change that are filed with the
market participants because it renders
or received with respect to the proposed Commission, and all written
the Caps more achievable, which, in
rule change. communications relating to the
turn encourages additional open outcry
proposed rule change between the
order flow, with which Market Makers III. Date of Effectiveness of the Commission and any person, other than
may interact, once fees are capped. Proposed Rule Change and Timing for those that may be withheld from the
Further, the proposed change likewise Commission Action public in accordance with the
encourages Firms and Broker Dealers to
The foregoing rule change is effective provisions of 5 U.S.C. 552, will be
achieve higher monthly Customer and
upon filing pursuant to Section available for Web site viewing and
Professional Customer Posting Tiers,
19(b)(3)(A) 12 of the Act and printing in the Commission’s Public
which increases liquidity and provides
subparagraph (f)(2) of Rule 19b–4 13 Reference Room, 100 F Street NE.,
greater opportunities for all market
thereunder, because it establishes a due, Washington, DC 20549, on official
participants to interact with electronic
fee, or other charge imposed by the business days between the hours of
order flow. This additional volume and
Exchange. 10:00 a.m. and 3:00 p.m. Copies of the
7 See, e.g., NASDAQ OMX PHLX, available here, At any time within 60 days of the filing will also be available for
http://www.nasdaqtrader.com/ filing of such proposed rule change, the inspection and copying at the NYSE’s
Micro.aspx?id=phlxpricing (charging market makers Commission summarily may principal office and on its Internet Web
$0.30 per contract for manual executions). site at www.nyse.com. All comments
8 See, e.g., NYSE Amex Options, available here,
temporarily suspend such rule change if
it appears to the Commission that such received will be posted without change;
https://www.nyse.com/publicdocs/nyse/markets/
amex-options/NYSE_Amex_Options_Fee_ action is necessary or appropriate in the the Commission does not edit personal
tkelley on DSK3SPTVN1PROD with NOTICES
Schedule.pdf (charging both non-Amex options public interest, for the protection of identifying information from
market makers and broker deals alike $0.25 per investors, or otherwise in furtherance of submissions. You should submit only
contract for manual executions). information that you wish to make
9 See Fee Schedule (various credits available to
the purposes of the Act. If the
Market Makers for posted monthly volume,
available publicly. All submissions
including for executions in Penny Pilot Issues and 11 15 U.S.C. 78f(b)(8). should refer to File Number SR–
SPY and Market Maker Incentive). 12 15 U.S.C. 78s(b)(3)(A).
10 See id. 13 17 CFR 240.19b–4(f)(2). 14 15 U.S.C. 78s(b)(2)(B).
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![Federal Register / Vol. 80, No. 161 / Thursday, August 20, 2015 / Notices 50685
NYSEArca-2015–71, and should be Pilot Options will increase specifically rebates for certain Customer Simple
submitted on or before September 10, for Tiers 3, 4, and 5; (ii) establish new Orders in Penny Pilot and non-Penny
2015. Category B for rebates for certain Pilot Options will increase specifically
For the Commission, by the Division of electronic Customer PIXLSM 5 Orders; for Tiers 3, 4, and 5; (ii) establish new
Trading and Markets, pursuant to delegated (iii) rename Category B to Category C Category B for rebates for certain
authority.15 regarding certain electronic Complex 6 electronic Customer PIXL Orders; (iii)
Robert W. Errett, and Complex PIXL 7 Orders; and (iv) rename Category B to Category C
Deputy Secretary. update and clarify the explanatory notes regarding certain electronic Complex
[FR Doc. 2015–20548 Filed 8–19–15; 8:45 am]
applicable to Categories A, B, and C to and Complex PIXL Orders; and (iv)
match the proposed changes. update and clarify the explanatory notes
BILLING CODE 8011–01–P
The text of the proposed rule change applicable to Categories A, B, and C to
is available on the Exchange’s Web site match the proposed changes. The
SECURITIES AND EXCHANGE at http:// Exchange proposes these amendments
COMMISSION nasdaqomxphlx.cchwallstreet.com/, at in order to more clearly delineate how
the principal office of the Exchange, and rebates apply to different types of
[Release No. 34–75702; File No. SR–Phlx– at the Commission’s Public Reference Customer orders: Customer Simple
2015–68] Room. Orders (Category A), Customer PIXL
Orders (Category B), and Customer
Self-Regulatory Organizations; II. Self-Regulatory Organization’s
Complex Orders and Customer Complex
NASDAQ OMX PHLX LLC; Notice of Statement of the Purpose of, and
PIXL Orders (Category C).
Filing and Immediate Effectiveness of Statutory Basis for, the Proposed Rule
Proposed Rule Change Relating to Change Section B—Customer Rebate Program
Customer Rebate Program In its filing with the Commission, the Currently, the Exchange has a
August 14, 2015. Exchange included statements Customer Rebate Program consisting of
Pursuant to Section 19(b)(1) of the concerning the purpose of and basis for five Tiers of Customer Rebates on two
Securities Exchange Act of 1934 the proposed rule change and discussed categories, A and B, of transactions. A
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 any comments it received on the Phlx member qualifies for a certain
notice is hereby given that on August 3, proposed rule change. The text of these rebate Tier based on the percentage of
2015, NASDAQ OMX PHLX LLC statements may be examined at the total national customer volume in
(‘‘Phlx’’ or ‘‘Exchange’’) filed with the places specified in Item IV below. The Multiply Listed equity and ETF options
Securities and Exchange Commission Exchange has prepared summaries, set classes, excluding SPY 8 options that it
(‘‘SEC’’ or ‘‘Commission’’) the proposed forth in sections A, B, and C below, of transacts monthly on Phlx. The
rule change as described in Items I, II, the most significant aspects of such Exchange calculates Customer volume
and III, below, which Items have been statements. in Multiply Listed Options (including
prepared by the Exchange. The A. Self-Regulatory Organization’s SPY options) by totaling electronically-
Commission is publishing this notice to Statement of the Purpose of, and delivered and executed volume,
solicit comments on the proposed rule Statutory Basis for, the Proposed Rule excluding volume associated with
change from interested persons. Change electronic Qualified Contingent Cross
(‘‘QCC’’) Orders,9 as defined in
I. Self-Regulatory Organization’s 1. Purpose Exchange Rule 1080(o).10
Statement of the Terms of Substance of The purpose of this filing is to amend The Exchange now has rebate
the Proposed Rule Change pricing in section B, entitled ‘‘Customer categories Category A and Category B to
The Exchange proposes to amend Rebate Program,’’ of the Pricing cover all rebates pursuant to the
pricing in section B, entitled ‘‘Customer Schedule. In particular, the Exchange
8 SPY is the SPDR® S&P 500® ETF Trust. S&P®,
Rebate Program,’’ 3 of the Pricing proposes to: (i) Indicate that Category A S&P 500®, SPDR®, and Standard & Poor’s® are
Schedule. In particular, the Exchange registered trademarks of Standard & Poor’s®
proposes to: (i) Indicate that Category A at http://www.nasdaqtrader.com/ Financial Services LLC.
rebates for certain Customer Simple Micro.aspx?id=phlx. 9 A QCC Order is comprised of an order to buy
5 PIXL is the Exchange’s price improvement
Orders in Penny Pilot 4 and non-Penny or sell at least 1000 contracts that is identified as
mechanism known as Price Improvement XL or being part of a qualified contingent trade, as that
PIXL. See Rule 1080(n). term is defined in Rule 1080(o)(3), coupled with a
15 17 CFR 200.30–3(a)(12). 6 A Complex Order is any order involving the contra-side order to buy or sell an equal number of
1 15 U.S.C. 78s(b)(1). simultaneous purchase and/or sale of two or more contracts. The QCC Order must be executed at a
2 17 CFR 240.19b–4.
different options series in the same underlying price at or between the National Best Bid and Offer
3 The term ‘‘Customer’’ applies to any transaction security, priced at a net debit or credit based on the and be rejected if a Customer order is resting on the
that is identified by a member or member relative prices of the individual components, for the Exchange book at the same price. A QCC Order
organization for clearing in the Customer range at same account, for the purpose of executing a shall only be submitted electronically from off the
The Options Clearing Corporation (‘‘OCC’’) which particular investment strategy. Furthermore, a floor to the PHLX XL II System. See Rule 1080(o).
is not for the account of broker or dealer or for the Complex Order can also be a stock-option order, See also Securities Exchange Act Release No. 64249
account of a ‘‘Professional’’ (as that term is defined which is an order to buy or sell a stated number (April 7, 2011), 76 FR 20773 (April 13, 2011) (SR–
in Rule 1000(b)(14). of units of an underlying stock or Exchange Traded Phlx–2011–47) (a rule change to establish a QCC
4 The Penny Pilot was established in January 2007 Fund (‘‘ETF’’) coupled with the purchase or sale of Order to facilitate the execution of stock/option
and was last extended in 2015. See Securities options contract(s). See Exchange Rule 1080, Qualified Contingent Trades (‘‘QCTs’’) that satisfy
Exchange Act Release Nos. 55153 (January 23, Commentary .07(a)(i). the requirements of the trade through exemption in
2007), 72 FR 4553 (January 31, 2007) (SR–Phlx– 7 A transaction resulting from an order that was connection with Rule 611(d) of the Regulation
tkelley on DSK3SPTVN1PROD with NOTICES
2006–74) (notice of filing and approval order electronically delivered utilizes Phlx XL. See NMS).
establishing Penny Pilot); and 75286 (June 24, 2015) Exchange Rules 1014 and 1080. Electronically 10 Members and member organizations under
(SR–Phlx–2015–54) (notice of filing and immediate delivered orders do not include orders transacted common ownership may aggregate their Customer
effectiveness extending the Penny Pilot through on the Exchange floor. A transaction resulting from volume for purposes of calculating the Customer
June 30, 2016). Non-Penny Pilot Options are an order that is non-electronically-delivered is Rebate Tiers and receiving rebates. Common
options other than Penny Pilot Options listed on the represented on the trading floor by a floor broker. ownership means members or member
Exchange (e.g. AAPL, BAC, EEM, FB, FXI, IWM, See Exchange Rule 1063. All orders are either organizations under 75% common ownership or
QQQ, TWTR, VXX and XLF), which can be found electronically or non-electronically delivered. control. See Preface to Pricing Schedule.
VerDate Sep<11>2014 17:31 Aug 19, 2015 Jkt 235001 PO 00000 Frm 00091 Fmt 4703 Sfmt 4703 E:\FR\FM\20AUN1.SGM 20AUN1](https://thefederalregister.org/doc/80_FR_50844/page/3.svg)
Document Created: 2015-12-15 11:08:43
Document Modified: 2015-12-15 11:08:43
| 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 50683 |
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