80 FR 50707 - Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Modifying the NYSE Amex Options Fee Schedule

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 161 (August 20, 2015)

[Federal Register Volume 80, Number 161 (Thursday, August 20, 2015)]
[Notices]
[Pages 50707-50708]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-20547]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-75703; File No. SR-NYSEMKT-2015-63]


Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and 
Immediate Effectiveness of Proposed Rule Change Modifying the NYSE Amex 
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 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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to modify the NYSE Amex 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 amend the Firm Monthly Fee Cap to 
establish tiers, effective on August 6, 2015.
    The Exchange is proposing to modify Section I.I. of the Fee 
Schedule to establish tiers for the Firm Monthly Fee Cap that are tied 
to tiers achieved in the Exchange's Amex Customer Engagement (``ACE'') 
Program.\4\ Currently, the Exchange places a limit, or cap, of $100,000 
per month on fees incurred by Firms trading though a Floor Broker in 
open outcry or QCC (``Manual Transactions'').\5\ The Exchange is 
proposing to add tiered caps which correspond to tiers achieved in the 
ACE Program. Specifically, the higher the ACE Tier attained, the lower 
the cap on fees for applicable Manual Transactions.
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    \4\ See Fee Schedule, section I.E. (describing ACE Program), 
available at, https://www.nyse.com/publicdocs/nyse/markets/amex-options/NYSE_Amex_Options_Fee_Schedule.pdf.
    \5\ Fees or volumes associated with a Strategy Execution 
described in section I.J., (e.g., reversal and conversion, box 
spread, short stock interest spread, merger spread and jelly roll) 
are not counted toward the $100,000 cap. Royalty Fees are charged at 
the rates described in section I.K., and do not count toward the 
$100,000 fee cap. Firm Facilitation Manual trades are executed at 
the rate of $0.00 per contract regardless of whether a Firm has 
reached the $100,000 cap or not. See Fee Schedule, section I.I.
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    The proposed Firm Monthly Fee Cap tiers are set forth in the table 
below:

------------------------------------------------------------------------
                       ACE Tier                           Firm fee cap
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1.....................................................          $100,000
2.....................................................            85,000
3.....................................................            75,000
4.....................................................            70,000
5.....................................................            65,000
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with

[[Page 50708]]

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.
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    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f(b)(4) and (5).
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    The Exchange believes that the proposed change to institute tiered 
caps to the Firm Monthly Fee Cap is reasonable, equitable and not 
unfairly discriminatory because the tiers are based on the amount of 
business transacted on the Exchange. In addition, the Exchange believes 
that the proposed amendment is reasonable, equitable and not unfairly 
discriminatory because it would enhance the incentives for ACE Program 
participants who use Manual Transactions to execute those transactions 
on the Exchange, which would benefit all ATP Holders. Additionally, the 
Exchange believes the proposed changes are consistent with the Act 
because the proposal could incentivize additional ATP Holders to 
participate in the ACE Program, and (for those that already do) to 
achieve higher ACE tiers which may attract greater volume and liquidity 
to the Exchange, which would benefit all market participants by 
providing tighter quoting and better prices, all of which perfects the 
mechanism for a free and open market and national market system.
    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,\8\ 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. The Exchange believes the proposed amendments to 
the Firm Monthly Fee Cap are pro-competitive as the fees are to 
incentivize increases in volume and liquidity to the Exchange which 
would benefit all of [sic] Exchange participants through increased 
opportunities to trade as well as enhancing price discovery.
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    \8\ 15 U.S.C. 78f(b)(8).
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    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) \9\ of the Act and subparagraph (f)(2) of Rule 19b-
4 \10\ thereunder, because it establishes a due, fee, or other charge 
imposed by the Exchange.
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    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 17 CFR 240.19b-4(f)(2).
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    At any time within 60 days of the filing of such proposed rule 
change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is necessary or 
appropriate in the public interest, for the protection of investors, or 
otherwise in furtherance of the purposes of the Act. If the Commission 
takes such action, the Commission shall institute proceedings under 
section 19(b)(2)(B) \11\ of the Act to determine whether the proposed 
rule change should be approved or disapproved.
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    \11\ 15 U.S.C. 78s(b)(2)(B).
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IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-NYSEMKT-2015-63 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-NYSEMKT-2015-63. 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-NYSEMKT-2015-63, and should be submitted 
on or before September 10, 2015.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12\
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    \12\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-20547 Filed 8-19-15; 8:45 am]
BILLING CODE 8011-01-P