80 FR 62131 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending the NYSE Arca Equities Schedule of Fees and Charges for Exchange Services
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 199 (October 15, 2015)
Federal Register Volume 80, Issue 199 (October 15, 2015)
| Page Range | 62131-62132 | |
| FR Document | 2015-26149 |
[Federal Register Volume 80, Number 199 (Thursday, October 15, 2015)] [Notices] [Pages 62131-62132] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-26149] [[Page 62131]] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-76114; File No. SR-NYSEArca-2015-89] Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending the NYSE Arca Equities Schedule of Fees and Charges for Exchange Services October 8, 2015. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act''),\1\ and Rule 19b-4 \2\ thereunder, notice is hereby given that, on October 1, 2015, NYSE Arca, Inc. (the ``Exchange'' or ``NYSE Arca'') 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 the NYSE Arca Equities Schedule of Fees and Charges for Exchange Services (``Fee Schedule''). The Exchange proposes to implement the change on 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 Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to amend the Routable Retail Order Tier (``Routable Retail'') applicable to Tape C Securities on the Fee Schedule. Currently, the Routable Retail pricing tier provides ETP Holders, including Market Makers, that (1) provide liquidity of 0.20% or more of the US consolidated average daily volume (``CADV'') during a billing month across all Tapes, (2) maintain a ratio during a billing month across all Tapes of executed provide liquidity that is eligible to route away from the Exchange (``Routable Orders'') \3\ to total executed provide liquidity of 55% or more, and (3) execute an ADV of Retail Orders \4\ that provide liquidity during the month that is 0.10% or more of the US CADV, with a credit of $0.0032 per share for Routable and non-Routable Orders in Tape C Securities that provide liquidity to the Book and a fee of $0.0030 per share in Tape C Securities that take liquidity from the Book.\5\ --------------------------------------------------------------------------- \3\ ETP Holders are able to include an instruction with their orders to determine whether the order will be eligible to route to an away exchange (e.g., to execute against trading interest with a better price than on the Exchange) or, for example, be cancelled if routing would otherwise occur. \4\ Retail Orders are defined in the Fee Schedule as orders designated as retail orders and that meet the requirements of Rule 7.44(a)(3), but that are not executed in the Retail Liquidity Program. The Retail Liquidity Program is a pilot program designed to attract additional retail order flow to the Exchange for NYSE Arca- listed securities and securities traded pursuant to unlisted trading privileges while also providing the potential for price improvement to such order flow. See Rule 7.44. See Securities Exchange Act Release No. 71176 (December 23, 2013), 78 FR 79524 (December 30, 2013) (SR-NYSEArca-2013-107). \5\ See Basic Rate. Basic Rates are applicable when tier rates do not apply. --------------------------------------------------------------------------- The Exchange proposes to lower the per share fee for Routable and non-Routable Orders in Tape C Securities that take liquidity from the Book to $0.0029 per share.\6\ The Exchange proposes to implement the change on October 1, 2015. --------------------------------------------------------------------------- \6\ The Exchange recently submitted a proposed rule change to make a number of changes to the Fee Schedule to be implemented on October 1, 2015, including lowering the fee for orders in Tape C Securities tiers that take liquidity from the Book in certain pricing tiers. The Exchange intended to include the change proposed by this filing in the earlier filing but inadvertently failed to do so and is therefore submitting this proposed rule change separately. See SR-NYSEArca-2015-87. --------------------------------------------------------------------------- The proposed changes are not otherwise intended to address any other issues, and the Exchange is not aware of any problems that ETP Holders would have in complying with the proposed changes. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with Section 6(b) of the Act,\7\ in general, and furthers the objectives of Sections 6(b)(4) and (5) of the Act,\8\ in particular, because it provides for the equitable allocation of reasonable dues, fees, and other charges among its members, issuers and other persons using its facilities and does not unfairly discriminate between customers, issuers, brokers or dealers. --------------------------------------------------------------------------- \7\ 15 U.S.C. 78f(b). \8\ 15 U.S.C. 78f(b)(4) and (5). --------------------------------------------------------------------------- The Exchange believes the proposed change to the Routable Retail Order Tier is reasonable and equitably allocated because it would apply to all Routable and non-Routable Orders sent by ETP Holders and Market Makers in Tape C Securities that take liquidity from the Book and the proposed lower fee would serve to incentivize these market participants to direct order flow to the Exchange rather than to a competing market. The Exchange believes that it is equitable and not unfairly discriminatory to charge a lower fee to ETP Holders, including Market Makers, because these market participants make significant contributions to market quality by providing higher volumes of liquidity, which benefits all market participants. The Exchange further believes that the proposed fee change is equitable and not unfairly discriminatory because the lowered fees would apply to all similarly situated ETP Holders, including Market Makers, equally. Additionally, the Exchange, in an earlier filing, proposed to lower the per share fee for orders in Tape C Securities that take liquidity from the Book in a number of pricing tiers and is extending that same fee to the Routable Retail Order Tier which it intended to do in the earlier filing. Finally, 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 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,\9\ 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. Instead, the Exchange believes that the proposed fee change will encourage competition, [[Page 62132]] including by attracting additional liquidity to the Exchange, which will make the Exchange a more competitive venue for, among other things, order execution and price discovery. 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 promotes a competitive environment. --------------------------------------------------------------------------- \9\ 15 U.S.C. 78f(b)(8). --------------------------------------------------------------------------- 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 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-2015-89 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-2015-89. 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-NYSEArca-2015-89 and should be submitted on or before November 5, 2015. --------------------------------------------------------------------------- \13\ 17 CFR 200.30-3(a)(12). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\13\ Robert W. Errett, Deputy Secretary. [FR Doc. 2015-26149 Filed 10-14-15; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 80, No. 199 / Thursday, October 15, 2015 / Notices 62131
SECURITIES AND EXCHANGE A. Self-Regulatory Organization’s 2. Statutory Basis
COMMISSION Statement of the Purpose of, and The Exchange believes that the
Statutory Basis for, the Proposed Rule proposed rule change is consistent with
[Release No. 34–76114; File No. SR– Change Section 6(b) of the Act,7 in general, and
NYSEArca–2015–89] 1. Purpose furthers the objectives of Sections
6(b)(4) and (5) of the Act,8 in particular,
The Exchange proposes to amend the
Self-Regulatory Organizations; NYSE because it provides for the equitable
Routable Retail Order Tier (‘‘Routable
Arca, Inc.; Notice of Filing and allocation of reasonable dues, fees, and
Retail’’) applicable to Tape C Securities
Immediate Effectiveness of Proposed other charges among its members,
on the Fee Schedule. Currently, the
Rule Change Amending the NYSE Arca issuers and other persons using its
Routable Retail pricing tier provides
Equities Schedule of Fees and facilities and does not unfairly
ETP Holders, including Market Makers,
Charges for Exchange Services discriminate between customers,
that (1) provide liquidity of 0.20% or
issuers, brokers or dealers.
October 8, 2015.
more of the US consolidated average The Exchange believes the proposed
daily volume (‘‘CADV’’) during a billing change to the Routable Retail Order Tier
Pursuant to Section 19(b)(1) of the month across all Tapes, (2) maintain a is reasonable and equitably allocated
Securities Exchange Act of 1934 ratio during a billing month across all because it would apply to all Routable
(‘‘Act’’),1 and Rule 19b–4 2 thereunder, Tapes of executed provide liquidity that and non-Routable Orders sent by ETP
notice is hereby given that, on October is eligible to route away from the Holders and Market Makers in Tape C
1, 2015, NYSE Arca, Inc. (the Exchange (‘‘Routable Orders’’) 3 to total Securities that take liquidity from the
‘‘Exchange’’ or ‘‘NYSE Arca’’) filed with executed provide liquidity of 55% or Book and the proposed lower fee would
the Securities and Exchange more, and (3) execute an ADV of Retail serve to incentivize these market
Commission (‘‘SEC’’ or ‘‘Commission’’) Orders 4 that provide liquidity during participants to direct order flow to the
the proposed rule change as described the month that is 0.10% or more of the Exchange rather than to a competing
in Items I, II, and III below, which Items US CADV, with a credit of $0.0032 per market. The Exchange believes that it is
have been prepared by the Exchange. share for Routable and non-Routable equitable and not unfairly
The Commission is publishing this Orders in Tape C Securities that provide discriminatory to charge a lower fee to
liquidity to the Book and a fee of ETP Holders, including Market Makers,
notice to solicit comments on the
$0.0030 per share in Tape C Securities because these market participants make
proposed rule change from interested
that take liquidity from the Book.5 significant contributions to market
persons. The Exchange proposes to lower the
quality by providing higher volumes of
I. Self-Regulatory Organization’s per share fee for Routable and non-
liquidity, which benefits all market
Statement of the Terms of Substance of Routable Orders in Tape C Securities
participants. The Exchange further
the Proposed Rule Change that take liquidity from the Book to
believes that the proposed fee change is
$0.0029 per share.6 The Exchange
equitable and not unfairly
The Exchange proposes to amend the proposes to implement the change on
discriminatory because the lowered fees
NYSE Arca Equities Schedule of Fees October 1, 2015.
The proposed changes are not would apply to all similarly situated
and Charges for Exchange Services ETP Holders, including Market Makers,
(‘‘Fee Schedule’’). The Exchange otherwise intended to address any other
issues, and the Exchange is not aware of equally.
proposes to implement the change on Additionally, the Exchange, in an
October 1, 2015. The text of the any problems that ETP Holders would
earlier filing, proposed to lower the per
proposed rule change is available on the have in complying with the proposed
share fee for orders in Tape C Securities
changes.
Exchange’s Web site at www.nyse.com, that take liquidity from the Book in a
at the principal office of the Exchange, 3 ETP Holders are able to include an instruction
number of pricing tiers and is extending
and at the Commission’s Public with their orders to determine whether the order that same fee to the Routable Retail
Reference Room. will be eligible to route to an away exchange (e.g., Order Tier which it intended to do in
to execute against trading interest with a better the earlier filing.
II. Self-Regulatory Organization’s price than on the Exchange) or, for example, be Finally, the Exchange believes that it
cancelled if routing would otherwise occur.
Statement of the Purpose of, and 4 Retail Orders are defined in the Fee Schedule as is subject to significant competitive
Statutory Basis for, the Proposed Rule orders designated as retail orders and that meet the forces, as described below in the
Change requirements of Rule 7.44(a)(3), but that are not Exchange’s statement regarding the
executed in the Retail Liquidity Program. The Retail burden on competition. For these
In its filing with the Commission, the Liquidity Program is a pilot program designed to
reasons, the Exchange believes that the
attract additional retail order flow to the Exchange
self-regulatory organization included for NYSE Arca-listed securities and securities proposal is consistent with the Act.
statements concerning the purpose of, traded pursuant to unlisted trading privileges while
and basis for, the proposed rule change also providing the potential for price improvement B. Self-Regulatory Organization’s
and discussed any comments it received to such order flow. See Rule 7.44. See Securities Statement on Burden on Competition
Exchange Act Release No. 71176 (December 23,
on the proposed rule change. The text 2013), 78 FR 79524 (December 30, 2013) (SR– In accordance with Section 6(b)(8) of
of those statements may be examined at NYSEArca–2013–107). the Act,9 the Exchange believes that the
the places specified in Item IV below. 5 See Basic Rate. Basic Rates are applicable when
proposed rule change would not impose
tier rates do not apply. any burden on competition that is not
The Exchange has prepared summaries,
mstockstill on DSK4VPTVN1PROD with NOTICES
6 The Exchange recently submitted a proposed
set forth in sections A, B, and C below, rule change to make a number of changes to the Fee
necessary or appropriate in furtherance
of the most significant parts of such Schedule to be implemented on October 1, 2015, of the purposes of the Act. Instead, the
statements. including lowering the fee for orders in Tape C Exchange believes that the proposed fee
Securities tiers that take liquidity from the Book in change will encourage competition,
certain pricing tiers. The Exchange intended to
include the change proposed by this filing in the
7 15 U.S.C. 78f(b).
earlier filing but inadvertently failed to do so and
1 15 U.S.C. 78s(b)(1). 8 15
is therefore submitting this proposed rule change U.S.C. 78f(b)(4) and (5).
2 17 CFR 240.19b–4. separately. See SR–NYSEArca–2015–87. 9 15 U.S.C. 78f(b)(8).
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![62132 Federal Register / Vol. 80, No. 199 / Thursday, October 15, 2015 / Notices
including by attracting additional • Send an email to rule-comments@ SECURITIES AND EXCHANGE
liquidity to the Exchange, which will sec.gov. Please include File Number SR– COMMISSION
make the Exchange a more competitive NYSEArca–2015–89 on the subject line.
[Release No. 34–76115; File No. SR–BOX–
venue for, among other things, order 2015–32]
execution and price discovery. The Paper Comments
Exchange notes that it operates in a • Send paper comments in triplicate Self-Regulatory Organizations; BOX
highly competitive market in which to Secretary, Securities and Exchange Options Exchange, LLC; Notice of
market participants can readily favor Filing and Immediate Effectiveness of
Commission, 100 F Street NE.,
competing venues. In such an a Proposed Rule Change To Amend
Washington, DC 20549–1090.
environment, the Exchange must the Fee Schedule on the BOX Market
continually review, and consider All submissions should refer to File LLC Options Facility
adjusting, its fees and credits to remain Number SR–NYSEArca–2015–89. This
competitive with other exchanges. For file number should be included on the October 8, 2015.
the reasons described above, the subject line if email is used. To help the Pursuant to Section 19(b)(1) of the
Exchange believes that the proposed Commission process and review your Securities Exchange Act of 1934 (the
rule change promotes a competitive comments more efficiently, please use ‘‘Act’’),1 and Rule 19b–4 thereunder,2
environment. only one method. The Commission will notice is hereby given that on
post all comments on the Commission’s September 30, 2015, BOX Options
C. Self-Regulatory Organization’s Exchange LLC (the ‘‘Exchange’’) filed
Statement on Comments on the Internet Web site (http://www.sec.gov/
with the Securities and Exchange
Proposed Rule Change Received From rules/sro.shtml). Copies of the
Commission (‘‘Commission’’) the
Members, Participants, or Others submission, all subsequent proposed rule change as described in
No written comments were solicited amendments, all written statements Items I, II, and III below, which Items
or received with respect to the proposed with respect to the proposed rule have been prepared by the Exchange.
rule change. change that are filed with the The Exchange filed the proposed rule
Commission, and all written change pursuant to Section
III. Date of Effectiveness of the communications relating to the 19(b)(3)(A)(ii) of the Act,3 and Rule
Proposed Rule Change and Timing for proposed rule change between the 19b–4(f)(2) thereunder,4 which renders
Commission Action Commission and any person, other than the proposal effective upon filing with
The foregoing rule change is effective those that may be withheld from the the Commission. The Commission is
upon filing pursuant to Section public in accordance with the publishing this notice to solicit
19(b)(3)(A) 10 of the Act and provisions of 5 U.S.C. 552, will be comments on the proposed rule change
subparagraph (f)(2) of Rule 19b–4 11 available for Web site viewing and from interested persons.
thereunder, because it establishes a due, printing in the Commission’s Public
fee, or other charge imposed by the I. Self-Regulatory Organization’s
Reference Room, 100 F Street NE., Statement of the Terms of the Substance
Exchange. Washington, DC 20549, on official
At any time within 60 days of the of the Proposed Rule Change
business days between the hours of
filing of such proposed rule change, the 10:00 a.m. and 3:00 p.m. Copies of the The Exchange is filing with the
Commission summarily may filing also will be available for Securities and Exchange Commission
temporarily suspend such rule change if inspection and copying at the principal (‘‘Commission’’) a proposed rule change
it appears to the Commission that such to amend the Fee Schedule to make
office of the Exchange. All comments
action is necessary or appropriate in the changes to Section I.A., Exchange Fees
received will be posted without change;
public interest, for the protection of for Non-Auction Transactions and
investors, or otherwise in furtherance of the Commission does not edit personal Section II.B., Liquidity Fees and Credits
the purposes of the Act. If the identifying information from for Facilitation and Solicitation
Commission takes such action, the submissions. You should submit only transactions on the BOX Market LLC
Commission shall institute proceedings information that you wish to make (‘‘BOX’’) options facility. While changes
under Section 19(b)(2)(B) 12 of the Act to available publicly. All submissions to the fee schedule pursuant to this
determine whether the proposed rule should refer to File Number SR– proposal will be effective upon filing,
change should be approved or NYSEArca–2015–89 and should be the changes will become operative on
disapproved. submitted on or before November 5, October 1, 2015. The text of the
2015. proposed rule change is available from
IV. Solicitation of Comments
For the Commission, by the Division of the principal office of the Exchange, at
Interested persons are invited to Trading and Markets, pursuant to delegated the Commission’s Public Reference
submit written data, views and authority.13 Room and also on the Exchange’s
arguments concerning the foregoing, Internet Web site at http://
Robert W. Errett,
including whether the proposed rule boxexchange.com.
change is consistent with the Act. Deputy Secretary.
Comments may be submitted by any of [FR Doc. 2015–26149 Filed 10–14–15; 8:45 am] II. Self-Regulatory Organization’s
the following methods: BILLING CODE 8011–01–P
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Electronic Comments
mstockstill on DSK4VPTVN1PROD with NOTICES
Change
• Use the Commission’s Internet In its filing with the Commission, the
comment form (http://www.sec.gov/ Exchange included statements
rules/sro.shtml); or
1 15 U.S.C. 78s(b)(1).
10 15 U.S.C. 78s(b)(3)(A). 2 17 CFR 240.19b–4.
11 17 CFR 240.19b–4(f)(2). 3 15 U.S.C. 78s(b)(3)(A)(ii).
12 15 U.S.C. 78s(b)(2)(B). 13 17 CFR 200.30–3(a)(12). 4 17 CFR 240.19b–4(f)(2).
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Document Created: 2018-02-27 08:52:41
Document Modified: 2018-02-27 08:52:41
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
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| Section | Notices | |
| FR Citation | 80 FR 62131 |
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