80 FR 53600 - Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Its Price List To Raise the NYSE Crossing Session II Fee Cap
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 172 (September 4, 2015)
Federal Register Volume 80, Issue 172 (September 4, 2015)
| Page Range | 53600-53601 | |
| FR Document | 2015-21957 |
[Federal Register Volume 80, Number 172 (Friday, September 4, 2015)] [Notices] [Pages 53600-53601] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-21957] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-75793; File No. SR-NYSE-2015-37] Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Its Price List To Raise the NYSE Crossing Session II Fee Cap August 31, 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 21, 2015, New York Stock Exchange LLC (``NYSE'' or the ``Exchange'') 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 its Price List to raise the NYSE Crossing Session II (``NYSE CSII'') fee cap. The Exchange proposes to implement the fee change effective September 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 its Price List to raise the NYSE CSII fee cap. Currently, the Exchange charges a fee of $0.0004 per share for executions in CSII.\4\ Fees for executions in CSII are capped at $100,000 per month per member organization. --------------------------------------------------------------------------- \4\ CSII runs on the Exchange from 4:00 p.m. to 6:30 p.m. Eastern Time and handles member organization crosses of baskets of securities of aggregate-priced buy and sell orders. See NYSE Rules 900-907. --------------------------------------------------------------------------- The Exchange proposes to increase the monthly fee cap from $100,000 to $200,000. The $0.0004 per share fee for executions in CSII would remain unchanged. The proposed change is not otherwise intended to address any other issues, and the Exchange is not aware of any problems that member organizations would have in complying with the proposed change. 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 6(b)(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 the proposed increase in the monthly fee cap for CSII transactions is reasonable and an equitable allocation of fees because all similarly situated member organizations will be subject to the same fee structure and access to the Exchange's market is offered on fair and non-discriminatory terms. The Exchange also believes that maintaining a cap for member organizations that are particularly active during NYSE CSII is reasonable, equitable and not unfairly discriminatory. The Exchange notes that the last time this cap was changed was in 2012.\7\ --------------------------------------------------------------------------- \7\ See Securities Exchange Act Release No. 66600 (March 14, 2012), 77 FR 16298 (March 20, 2012) (SR-NYSE-2012-07). --------------------------------------------------------------------------- The Exchange believes that it is subject to significant competitive forces, [[Page 53601]] as described below in the Exchange's statement regarding the burden on competition. For the foregoing 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 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. Rather, the increase in the fee cap for member organizations that are particularly active in CS II would not burden competition because it would apply to all member organizations. --------------------------------------------------------------------------- \8\ 15 U.S.C. 78f(b)(8). --------------------------------------------------------------------------- Finally, the Exchange notes that it operates in a highly competitive market in which market participants can readily favor competing venues if they deem fee levels at a particular venue to be excessive or rebate opportunities available at other venues to be more favorable. In such an environment, the Exchange must continually adjust its fees and rebates to remain competitive with other exchanges and with alternative trading systems that have been exempted from compliance with the statutory standards applicable to exchanges. Because competitors are free to modify their own fees and credits in response, and because market participants may readily adjust their order routing practices, the Exchange believes that the degree to which fee changes in this market may impose any burden on competition is extremely limited. As a result of all of these considerations, the Exchange does not believe that the proposed changes will impair the ability of member organizations or competing order execution venues to maintain their competitive standing in the financial markets. 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. --------------------------------------------------------------------------- \9\ 15 U.S.C. 78s(b)(3)(A). \10\ 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) \11\ of the Act to determine whether the proposed rule change should be approved or disapproved. --------------------------------------------------------------------------- \11\ 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-NYSE-2015-37 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-NYSE-2015-37. 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 also will be available for inspection and copying at the principal office of the Exchange. 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-NYSE-2015-37, and should be submitted on or before September 25, 2015. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\12\ --------------------------------------------------------------------------- \12\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2015-21957 Filed 9-3-15; 8:45 am] BILLING CODE 8011-01-P
![53600 Federal Register / Vol. 80, No. 172 / Friday, September 4, 2015 / Notices
information or materials upon which For the Commission, by the Division of set forth in sections A, B, and C below,
the Board’s determinations were made. Investment Management, under delegated of the most significant parts of such
authority. statements.
9. Before investing in a Fund in Robert W. Errett,
excess of the limits in section A. Self-Regulatory Organization’s
Deputy Secretary.
12(d)(1)(A), an Investing Fund will Statement of the Purpose of, and the
[FR Doc. 2015–21954 Filed 9–3–15; 8:45 am]
execute a FOF Participation Agreement Statutory Basis for, the Proposed Rule
BILLING CODE 8011–01–P
with the Fund stating that their Change
respective boards of directors or trustees 1. Purpose
and their investment advisers, or SECURITIES AND EXCHANGE
Trustee and Sponsor, as applicable, The Exchange proposes to amend its
COMMISSION Price List to raise the NYSE CSII fee cap.
understand the terms and conditions of
[Release No. 34–75793; File No. SR–NYSE– Currently, the Exchange charges a fee
the Order, and agree to fulfill their
2015–37] of $0.0004 per share for executions in
responsibilities under the Order. At the
CSII.4 Fees for executions in CSII are
time of its investment in Shares of a Self-Regulatory Organizations; New capped at $100,000 per month per
Fund in excess of the limit in section York Stock Exchange LLC; Notice of member organization.
12(d)(1)(A)(i), an Investing Fund will Filing and Immediate Effectiveness of The Exchange proposes to increase
notify the Fund of the investment. At Proposed Rule Change To Amend Its the monthly fee cap from $100,000 to
such time, the Investing Fund will also Price List To Raise the NYSE Crossing $200,000. The $0.0004 per share fee for
transmit to the Fund a list of the names Session II Fee Cap executions in CSII would remain
of each Investing Fund Affiliate and unchanged.
Underwriting Affiliate. The Investing August 31, 2015.
The proposed change is not otherwise
Fund will notify the Fund of any Pursuant to Section 19(b)(1) 1 of the intended to address any other issues,
changes to the list as soon as reasonably Securities Exchange Act of 1934 (the and the Exchange is not aware of any
practicable after a change occurs. The ‘‘Act’’) 2 and Rule 19b–4 thereunder,3 problems that member organizations
Fund and the Investing Fund will notice is hereby given that, on August would have in complying with the
maintain and preserve a copy of the 21, 2015, New York Stock Exchange proposed change.
LLC (‘‘NYSE’’ or the ‘‘Exchange’’) filed
Order, the FOF Participation 2. Statutory Basis
with the Securities and Exchange
Agreement, and the list with any
Commission (the ‘‘Commission’’) the The Exchange believes that the
updated information for the duration of
proposed rule change as described in proposed rule change is consistent with
the investment and for a period of not
Items I, II, and III below, which Items Section 6(b) of the Act,5 in general, and
less than six years thereafter, the first have been prepared by the self-
two years in an easily accessible place. furthers the objectives of Sections
regulatory organization. The 6(b)(4) and 6(b)(5) of the Act,6 in
10. Before approving any advisory Commission is publishing this notice to particular, because it provides for the
contract under section 15 of the Act, the solicit comments on the proposed rule equitable allocation of reasonable dues,
board of directors or trustees of each change from interested persons. fees, and other charges among its
Investing Management Company, members, issuers and other persons
I. Self-Regulatory Organization’s
including a majority of the independent using its facilities and does not unfairly
Statement of the Terms of Substance of
directors or trustees, will find that the the Proposed Rule Change discriminate between customers,
advisory fees charged under such issuers, brokers or dealers.
contract are based on services provided The Exchange proposes to amend its The Exchange believes that the
that will be in addition to, rather than Price List to raise the NYSE Crossing proposed increase in the monthly fee
duplicative of, the services provided Session II (‘‘NYSE CSII’’) fee cap. The cap for CSII transactions is reasonable
under the advisory contract(s) of any Exchange proposes to implement the fee and an equitable allocation of fees
Fund in which the Investing change effective September 1, 2015. The because all similarly situated member
Management Company may invest. text of the proposed rule change is organizations will be subject to the same
These findings and their basis will be available on the Exchange’s Web site at fee structure and access to the
www.nyse.com, at the principal office of Exchange’s market is offered on fair and
recorded fully in the minute books of
the Exchange, and at the Commission’s non-discriminatory terms. The
the appropriate Investing Management
Public Reference Room. Exchange also believes that maintaining
Company.
II. Self-Regulatory Organization’s a cap for member organizations that are
11. Any sales charges and/or service particularly active during NYSE CSII is
fees charged with respect to shares of an Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule reasonable, equitable and not unfairly
Investing Fund will not exceed the discriminatory. The Exchange notes that
limits applicable to a fund of funds as Change
the last time this cap was changed was
set forth in NASD Conduct Rule 2830. In its filing with the Commission, the in 2012.7
12. No Fund relying on the section self-regulatory organization included The Exchange believes that it is
statements concerning the purpose of, subject to significant competitive forces,
12(d)(1) relief will acquire securities of
and basis for, the proposed rule change
any investment company or company
and discussed any comments it received 4 CSII runs on the Exchange from 4:00 p.m. to
relying on section 3(c)(1) or 3(c)(7) of
mstockstill on DSK4VPTVN1PROD with NOTICES
on the proposed rule change. The text 6:30 p.m. Eastern Time and handles member
the Act in excess of the limits contained of those statements may be examined at organization crosses of baskets of securities of
in section 12(d)(1)(A) of the Act, except the places specified in Item IV below. aggregate-priced buy and sell orders. See NYSE
to the extent permitted by exemptive Rules 900–907.
The Exchange has prepared summaries, 5 15 U.S.C. 78f(b).
relief from the Commission permitting 6 15 U.S.C. 78f(b)(4) and (5).
the Fund to purchase shares of other 1 15 U.S.C.78s(b)(1). 7 See Securities Exchange Act Release No. 66600
investment companies for short-term 2 15 U.S.C. 78a. (March 14, 2012), 77 FR 16298 (March 20, 2012)
cash management purposes. 3 17 CFR 240.19b–4. (SR–NYSE–2012–07).
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![Federal Register / Vol. 80, No. 172 / Friday, September 4, 2015 / Notices 53601
as described below in the Exchange’s subparagraph (f)(2) of Rule 19b–4 10 Washington, DC 20549, on official
statement regarding the burden on thereunder, because it establishes a due, business days between the hours of
competition. fee, or other charge imposed by the 10:00 a.m. and 3:00 p.m. Copies of the
For the foregoing reasons, the Exchange. filing also will be available for
Exchange believes that the proposal is At any time within 60 days of the inspection and copying at the principal
consistent with the Act. filing of such proposed rule change, the office of the Exchange. All comments
Commission summarily may received will be posted without change;
B. Self-Regulatory Organization’s temporarily suspend such rule change if the Commission does not edit personal
Statement on Burden on Competition it appears to the Commission that such identifying information from
In accordance with Section 6(b)(8) of action is necessary or appropriate in the submissions. You should submit only
the Act,8 the Exchange believes that the public interest, for the protection of information that you wish to make
proposed rule change would not impose investors, or otherwise in furtherance of available publicly. All submissions
any burden on competition that is not the purposes of the Act. If the should refer to File Number SR–NYSE–
necessary or appropriate in furtherance Commission takes such action, the 2015–37, and should be submitted on or
of the purposes of the Act. Rather, the Commission shall institute proceedings before September 25, 2015.
increase in the fee cap for member under Section 19(b)(2)(B) 11 of the Act to For the Commission, by the Division of
organizations that are particularly active determine whether the proposed rule Trading and Markets, pursuant to delegated
in CS II would not burden competition change should be approved or authority.12
because it would apply to all member disapproved. Robert W. Errett,
organizations. IV. Solicitation of Comments Deputy Secretary.
Finally, the Exchange notes that it [FR Doc. 2015–21957 Filed 9–3–15; 8:45 am]
operates in a highly competitive market Interested persons are invited to
BILLING CODE 8011–01–P
in which market participants can submit written data, views, and
readily favor competing venues if they arguments concerning the foregoing,
deem fee levels at a particular venue to including whether the proposed rule SECURITIES AND EXCHANGE
be excessive or rebate opportunities change is consistent with the Act. COMMISSION
available at other venues to be more Comments may be submitted by any of
the following methods: [Release No. 34–75792; File No. SR–ISE–
favorable. In such an environment, the 2015–26]
Exchange must continually adjust its Electronic Comments
fees and rebates to remain competitive Self-Regulatory Organizations;
• Use the Commission’s Internet
with other exchanges and with International Securities Exchange,
comment form (http://www.sec.gov/
alternative trading systems that have LLC; Notice of Filing and Immediate
rules/sro.shtml); or
been exempted from compliance with • Send an email to rule-comments@ Effectiveness of Proposed Rule
the statutory standards applicable to Change Adopting a Principles-Based
sec.gov. Please include File Number SR–
exchanges. Because competitors are free Approach To Prohibit the Misuse of
NYSE–2015–37 on the subject line.
to modify their own fees and credits in Material, Non-Public Information by
response, and because market Paper Comments Market Makers by Deleting Rule 810
participants may readily adjust their • Send paper comments in triplicate August 31, 2015.
order routing practices, the Exchange to Secretary, Securities and Exchange Pursuant to Section 19(b)(1) of the
believes that the degree to which fee Commission, 100 F Street NE., Securities Exchange Act of 1934 (the
changes in this market may impose any Washington, DC 20549–1090. ‘‘Act’’),1 and Rule 19b–4 thereunder,2
burden on competition is extremely All submissions should refer to File notice is hereby given that on August
limited. As a result of all of these Number SR–NYSE–2015–37. This file 28, 2015, the International Securities
considerations, the Exchange does not number should be included on the Exchange, LLC (the ‘‘Exchange’’ or the
believe that the proposed changes will subject line if email is used. To help the ‘‘ISE’’) filed with the Securities and
impair the ability of member Commission process and review your Exchange Commission the proposed
organizations or competing order comments more efficiently, please use rule change as described in Items I and
execution venues to maintain their only one method. The Commission will II below, which Items have been
competitive standing in the financial post all comments on the Commission’s prepared by the self-regulatory
markets. Internet Web site (http://www.sec.gov/ organization. The Commission is
C. Self-Regulatory Organization’s rules/sro.shtml). Copies of the publishing this notice to solicit
Statement on Comments on the submission, all subsequent comments on the proposed rule change
Proposed Rule Change Received From amendments, all written statements from interested persons.
Members, Participants, or Others with respect to the proposed rule
change that are filed with the I. Self-Regulatory Organization’s
No written comments were solicited Commission, and all written Statement of the Terms of Substance of
or received with respect to the proposed communications relating to the the Proposed Rule Change
rule change. proposed rule change between the ISE proposes to adopt a principles-
III. Date of Effectiveness of the Commission and any person, other than based approach to prohibit the misuse
Proposed Rule Change and Timing for those that may be withheld from the of material, non-public information by
mstockstill on DSK4VPTVN1PROD with NOTICES
Commission Action public in accordance with the market makers by deleting Rule 810.
provisions of 5 U.S.C. 552, will be The text of the proposed rule change is
The foregoing rule change is effective available for Web site viewing and available on the Exchange’s Web site at
upon filing pursuant to Section printing in the Commission’s Public www.ise.com, at the principal office of
19(b)(3)(A) 9 of the Act and Reference Room, 100 F Street NE.,
12 17 CFR 200.30–3(a)(12).
8 15 U.S.C. 78f(b)(8). 10 17 CFR 240.19b–4(f)(2). 1 15 U.S.C. 78s(b)(1).
9 15 U.S.C. 78s(b)(3)(A). 11 15 U.S.C. 78s(b)(2)(B). 2 17 CFR 240.19b–4.
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Document Created: 2015-12-15 09:58:35
Document Modified: 2015-12-15 09:58:35
| 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 53600 |
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