80 FR 61258 - Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending Its Price List To Change the Monthly Fees for the Use of Certain Ports

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 196 (October 9, 2015)

Page Range		61258-61260
FR Document		2015-25699
Federal Register, Volume 80 Issue 196 (Friday, October 9, 2015)
[Federal Register Volume 80, Number 196 (Friday, October 9, 2015)]
[Notices]
[Pages 61258-61260]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-25699]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-76072; File No. SR-NYSE-2015-43]


Self-Regulatory Organizations; New York Stock Exchange LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
Amending Its Price List To Change the Monthly Fees for the Use of 
Certain Ports

October 5, 2015.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that 
on September 23, 2015, New York Stock Exchange LLC (``NYSE'' or the 
``Exchange'') filed with the Securities and Exchange Commission 
(``SEC'' or ``Commission'') the proposed rule change as described in 
Items I, II, and III below, which Items have been prepared by the 
Exchange. 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\ 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 change the monthly 
fees for the use of certain ports. The Exchange proposes to implement 
the fee change effective October 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 change the monthly 
fees for the use of certain ports.\3\ The Exchange proposes to 
implement the fee changes on October 1, 2015.
---------------------------------------------------------------------------

    \3\ The Exchange has a Common Customer Gateway (``CCG'') that 
accesses the equity trading systems that it shares with its 
affiliates, NYSE MKT LLC (``NYSE MKT'') and NYSE Arca, Inc. (``NYSE 
Arca''), and all ports connect to the CCG. See, e.g., Securities 
Exchange Act Release No. 64542 (May 25, 2011), 76 FR 31659 (June 1, 
2011) (SR-NYSE-2011-13). All NYSE member organizations are also NYSE 
MKT member organizations and, accordingly, a member organization 
utilizes its ports for activity on both NYSE and/or NYSE MKT and is 
charged port fees based on the total number of ports connected to 
the CCG, whether the ports are used to quote and trade on NYSE, NYSE 
MKT, and/or both, because those trading systems are integrated. See 
Supplementary Material .10 to Rule 2. The NYSE Arca trading platform 
is not integrated in the same manner. Therefore, it does not share 
its ports with NYSE or NYSE MKT.
---------------------------------------------------------------------------

    The Exchange currently makes ports available that provide 
connectivity to the Exchange's trading systems (i.e., ports for entry 
of orders and/or quotes (``order/quote entry ports'')) and charges $200 
per port per month for users of 1-5 ports, and $500 per port per month 
for users of 6 or more ports. The Exchange also currently makes ports 
available for drop copies and charges $500 per port per month.\4\
---------------------------------------------------------------------------

    \4\ Only one fee per drop copy port applies, even if receiving 
drop copies from multiple order/quote entry ports. In addition, the 
Price List provides that (i) users of the Exchange's Risk Management 
Gateway service (``RMG'') are not charged for order/quote entry 
ports if such ports are designated as being used for RMG purposes, 
and (ii) Designated Market Makers (``DMMs'') are not charged for 
order/quote entry ports that connect to the Exchange via the DMM 
Gateway. See Securities Exchange Act Release No. 68229 (November 14, 
2012), 77 FR 69688 (November 20, 2012) (SR-NYSE-2012-60). Two 
methods are available to DMMs to connect to the Exchange: DMM 
Gateway and CCG. Only DMMs may connect to the DMM Gateway and only 
when acting in their capacity as a DMM. DMMs are required to use the 
DMM Gateway for certain DMM-specific functions that relate to the 
DMM's role on the Exchange and the obligations attendant therewith, 
which are not applicable to other market participants on the 
Exchange. By contrast, non-DMMs as well as DMMs may use the CCG. Use 
of the CCG by a DMM is optional, and a DMM that connects to the 
Exchange via CCG can use the relevant order/quote entry port for 
orders and quotes both in its capacity as a DMM and for orders and 
quotes in other securities. Because DMMs are required to utilize DMM 
Gateway, but not CCG, to fulfill their functions as DMMs, DMMs are 
not charged for order/quote entry ports that connect to the Exchange 
via the DMM Gateway. However, DMMs, like other market participants, 
are charged for order/entry ports that connect to the Exchange via 
the CCG.

---------------------------------------------------------------------------

[[Page 61259]]

    The Exchange proposes to standardize the port fee for connecting to 
CCG and charge $550 per port per month, regardless of the number of 
users and whether the port is used for order/quote entry or for drop 
copies. The Exchange believes that standardizing the port fees will 
permit the Exchange to offset, in part, its infrastructure costs 
associated with making such ports available. The proposed change would 
also encourage users to become more efficient with their usage of the 
ports thereby resulting in a corresponding increase in the efficiency 
that the Exchange would be able to realize with respect to managing its 
own infrastructure. In this regard, as users decrease the number of 
ports that they utilize, the Exchange would similarly be able to 
decrease the amount of its hardware that it is required to support to 
interface with such ports.
    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 proposal to amend the port fees 
constitutes an equitable allocation of fees because all similarly 
situated member organizations and other market participants would be 
charged the same rates. The Exchange believes that the proposed change 
to the monthly rates is reasonable because the proposed port fees are 
expected to permit the Exchange to offset, in part, its infrastructure 
costs associated with making such ports available, including costs 
based on gateway software and hardware enhancements and resources 
dedicated to gateway development, quality assurance, and support. In 
this regard, the Exchange believes that the proposed fees are 
competitive with those charged by other exchanges.\7\ The proposed 
change is also reasonable because the proposed per port rates would 
encourage users to become more efficient with, and reduce the number of 
ports used, thereby resulting in a corresponding increase in the 
efficiency that the Exchange would be able to realize with respect to 
managing its own infrastructure.
---------------------------------------------------------------------------

    \7\ For example, the charge on the NASDAQ for a FIX Trading Port 
is $550 per port per month. See NASDAQ Rule 7015. A separate charge 
for Pre-Trade Risk Management ports also is applicable, which ranges 
from $400 to $600 and is capped at $25,000 per firm per month. See 
NASDAQ Rule 7016.
---------------------------------------------------------------------------

    The Exchange believes that it is subject to significant competitive 
forces, as described below in the Exchange's statement regarding the 
burden on competition.
    For 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 Exchange believes that the proposed 
change will permit the Exchange to set fees for ports that are 
competitive with those charged by other exchanges.\9\ Moreover, the 
Exchange believes that the proposal to amend the port fees would 
encourage users to become more efficient with, and reduce the number of 
ports used. In this regard, the Exchange believes that the proposal 
would not impose any burden on competition that is not necessary or 
appropriate in furtherance of the purposes of the Act because the 
Exchange believes that a reduction in the number of ports would result 
in a decrease in the infrastructure that the Exchange is required to 
support for connectivity to its trading systems. This would also 
provide incentive for users to become more efficient with their use of 
ports and could therefore result in such users becoming more 
competitive due to decreased costs.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78f(b)(8).
    \9\ See supra note 7.
---------------------------------------------------------------------------

    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 
this proposal promotes a competitive environment.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    No written comments were solicited or received with respect to the 
proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The foregoing rule change is effective upon filing pursuant to 
Section 19(b)(3)(A) \10\ of the Act and subparagraph (f)(2) of Rule 
19b-4 \11\ thereunder, because it establishes a due, fee, or other 
charge imposed by the Exchange.
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78s(b)(3)(A).
    \11\ 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) \12\ of the Act to determine whether the proposed 
rule change should be approved or disapproved.
---------------------------------------------------------------------------

    \12\ 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 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-NYSE-2015-43 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-NYSE-2015-43. 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/

[[Page 61260]]

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 such filing also will be 
available for inspection and copying at the principal offices 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-2015-43, and should be submitted on or before October 30, 2015.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\13\
---------------------------------------------------------------------------

    \13\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-25699 Filed 10-8-15; 8:45 am]
BILLING CODE 8011-01-P
Federal Register / Vol. 80, No. 196 / Friday, October 9, 2015 / Notices 61259

The Exchange proposes to standardize proposed change is also reasonable C. Self-Regulatory Organization’s
the port fee for connecting to CCG and because the proposed per port rates Statement on Comments on the
charge $550 per port per month, would encourage users to become more Proposed Rule Change Received From
regardless of the number of users and efficient with, and reduce the number of Members, Participants, or Others
whether the port is used for order/quote ports used, thereby resulting in a No written comments were solicited
entry or for drop copies. The Exchange corresponding increase in the efficiency or received with respect to the proposed
believes that standardizing the port fees that the Exchange would be able to rule change.
will permit the Exchange to offset, in realize with respect to managing its own
part, its infrastructure costs associated III. Date of Effectiveness of the
infrastructure.
with making such ports available. The Proposed Rule Change and Timing for
proposed change would also encourage The Exchange believes that it is Commission Action
users to become more efficient with subject to significant competitive forces, The foregoing rule change is effective
their usage of the ports thereby resulting as described below in the Exchange’s upon filing pursuant to Section
in a corresponding increase in the statement regarding the burden on 19(b)(3)(A) 10 of the Act and
efficiency that the Exchange would be competition. subparagraph (f)(2) of Rule 19b–4 11
able to realize with respect to managing For the foregoing reasons, the thereunder, because it establishes a due,
its own infrastructure. In this regard, as Exchange believes that the proposal is fee, or other charge imposed by the
users decrease the number of ports that consistent with the Act. Exchange.
they utilize, the Exchange would At any time within 60 days of the
similarly be able to decrease the amount B. Self-Regulatory Organization’s filing of such proposed rule change, the
of its hardware that it is required to Statement on Burden on Competition Commission summarily may
support to interface with such ports. temporarily suspend such rule change if
The proposed change is not otherwise In accordance with Section 6(b)(8) of
it appears to the Commission that such
intended to address any other issues, the Act,8 the Exchange believes that the action is necessary or appropriate in the
and the Exchange is not aware of any proposed rule change would not impose public interest, for the protection of
problems that member organizations any burden on competition that is not investors, or otherwise in furtherance of
would have in complying with the necessary or appropriate in furtherance the purposes of the Act. If the
proposed change. of the purposes of the Act. Rather, the Commission takes such action, the
2. Statutory Basis Exchange believes that the proposed Commission shall institute proceedings
change will permit the Exchange to set under Section 19(b)(2)(B) 12 of the Act to
The Exchange believes that the fees for ports that are competitive with
proposed rule change is consistent with determine whether the proposed rule
those charged by other exchanges.9 change should be approved or
Section 6(b) of the Act,5 in general, and
Moreover, the Exchange believes that disapproved.
furthers the objectives of Sections
6(b)(4) and 6(b)(5) of the Act,6 in the proposal to amend the port fees
IV. Solicitation of Comments
particular, because it provides for the would encourage users to become more
efficient with, and reduce the number of Interested persons are invited to
equitable allocation of reasonable dues, submit written data, views, and
fees, and other charges among its ports used. In this regard, the Exchange
believes that the proposal would not arguments concerning the foregoing,
members, issuers and other persons including whether the proposed rule
using its facilities and does not unfairly impose any burden on competition that
is not necessary or appropriate in change is consistent with the Act.
discriminate between customers, Comments may be submitted by any of
issuers, brokers or dealers. furtherance of the purposes of the Act
the following methods:
The Exchange believes that the because the Exchange believes that a
proposal to amend the port fees reduction in the number of ports would Electronic Comments
constitutes an equitable allocation of result in a decrease in the infrastructure • Use the Commission’s Internet
fees because all similarly situated that the Exchange is required to support comment form (http://www.sec.gov/
member organizations and other market for connectivity to its trading systems. rules/sro.shtml); or
participants would be charged the same This would also provide incentive for • Send an email to rule-comments@
rates. The Exchange believes that the users to become more efficient with sec.gov. Please include File Number SR–
proposed change to the monthly rates is their use of ports and could therefore NYSE–2015–43 on the subject line.
reasonable because the proposed port result in such users becoming more
fees are expected to permit the Paper Comments
competitive due to decreased costs.
Exchange to offset, in part, its • Send paper comments in triplicate
infrastructure costs associated with The Exchange notes that it operates in to Brent J. Fields, Secretary, Securities
making such ports available, including a highly competitive market in which and Exchange Commission, 100 F Street
costs based on gateway software and market participants can readily favor NE., Washington, DC 20549–1090.
hardware enhancements and resources competing venues. In such an All submissions should refer to File
dedicated to gateway development, environment, the Exchange must Number SR–NYSE–2015–43. This file
quality assurance, and support. In this continually review, and consider number should be included on the
regard, the Exchange believes that the adjusting, its fees and credits to remain subject line if email is used. To help the
proposed fees are competitive with competitive with other exchanges. For Commission process and review your
those charged by other exchanges.7 The the reasons described above, the comments more efficiently, please use
tkelley on DSK3SPTVN1PROD with NOTICES

Exchange believes that this proposal only one method. The Commission will
5 15 U.S.C. 78f(b). promotes a competitive environment. post all comments on the Commission’s
6 15 U.S.C. 78f(b)(4) and (5).
7 For example, the charge on the NASDAQ for a
Internet Web site (http://www.sec.gov/
FIX Trading Port is $550 per port per month. See $25,000 per firm per month. See NASDAQ Rule
NASDAQ Rule 7015. A separate charge for Pre- 7016. 10 15 U.S.C. 78s(b)(3)(A).
8 15 U.S.C. 78f(b)(8). 11 17 CFR 240.19b–4(f)(2).
Trade Risk Management ports also is applicable,
which ranges from $400 to $600 and is capped at 9 See supra note 7. 12 15 U.S.C. 78s(b)(2)(B).

VerDate Sep<11>2014 17:44 Oct 08, 2015 Jkt 238001 PO 00000 Frm 00105 Fmt 4703 Sfmt 4703 E:\FR\FM\09OCN1.SGM 09OCN1
Document Created: 2015-12-15 08:33:59
Document Modified: 2015-12-15 08:33:59
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 61258