80 FR 62590 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change, as Modified by Amendment No. 1, Amending the Exchange's Fee Schedule To Eliminate the Sponsor Fee In Connection With Listing a New Derivative Securities Product on the Exchange

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 200 (October 16, 2015)

Page Range		62590-62591
FR Document		2015-26324
Federal Register, Volume 80 Issue 200 (Friday, October 16, 2015)
[Federal Register Volume 80, Number 200 (Friday, October 16, 2015)]
[Notices]
[Pages 62590-62591]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-26324]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-76124; File No. SR-NYSEArca-2015-91]


Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change, as Modified by 
Amendment No. 1, Amending the Exchange's Fee Schedule To Eliminate the 
Sponsor Fee In Connection With Listing a New Derivative Securities 
Product on the Exchange

October 9, 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 October 5, 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. On October 8, 2015, the Exchange filed Amendment No. 1 to 
the proposed rule change.\4\ The Commission is publishing this notice 
to solicit comments on the proposed rule change, as modified by 
Amendment No. 1, 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.
    \4\ In Amendment No. 1, the Exchange represented that, 
notwithstanding the elimination of the Sponsor Fee (as defined 
herein), the Exchange will continue to be able to fund its 
regulatory obligations.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend the Exchange's Schedule of Fees and 
Charges (``Fee Schedule'') to eliminate the $20,000 one-time 
consultation fee when a first time sponsor, managing owner, general 
partner or equivalent is listing a new Derivative Securities Product on 
the Exchange. 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
    Currently, the Exchange's Schedule of Fees and Charges 
(``Schedule'') provides that, where a first time sponsor, managing 
owner, general partner or equivalent (``Sponsor'') lists a new 
Derivative Securities Product \5\ on the Exchange, the Sponsor is 
charged a one-time consulting charge of $20,000 (the ``Sponsor Fee''). 
The Exchange originally implemented the Sponsor Fee in 2009 to 
adequately compensate the Exchange for additional legal and business 
resources to properly advise new Sponsors through the listing 
process.\6\
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    \5\ For the purposes of the Schedule, the term ``Derivative 
Securities Products'' includes securities described in NYSE Arca 
Equities Rules 5.2(j)(3) (Investment Company Units); 8.100 
(Portfolio Depositary Receipts); 8.200 (Trust Issued Receipts); 
8.201 (Commodity-Based Trust Shares); 8.202 (Currency Trust Shares); 
8.203 (Commodity Index Trust Shares); 8.204 (Commodity Futures Trust 
Shares); 8.300 (Partnership Units); 8.500 (Trust Units); 8.600 
(Managed Fund Shares), and 8.700 (Managed Trust Securities).
    \6\ See Securities Exchange Act Release No. 60184 (June 29, 
2009), 74 FR 32209 (July 7, 2009) (SR-NYSEArca-2009-52) (notice of 
filing of proposed rule change to amend the schedule of fees and 
changes for Exchange services).
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    The Exchange proposes to amend the Fee Schedule to eliminate the 
Sponsor Fee. The Exchange has determined to eliminate the Sponsor Fee 
to permit the Exchange to better compete for listings of Derivative 
Securities Products with other exchanges that do not impose a fee 
similar to the Sponsor Fee. Elimination of the Sponsor Fee would 
benefit Sponsors by providing a cost savings and by permitting them to 
select their listing venue for a new Derivative Securities Product 
based on level of service and without consideration of

[[Page 62591]]

whether a consulting fee would be charged.
    Listing Fees and Annual Fees applicable to Derivatives Securities 
Products would remain unchanged.
2. Statutory Basis
    NYSE Arca believes that the proposal is consistent with Section 
6(b) \7\ of the Act, in general, and Section 6(b)(4) \8\ of the Act in 
particular, in that it provides for the equitable allocation of 
reasonable dues, fees and other charges among its issuers and other 
persons using its facilities. In addition, the Exchange believes the 
proposal is consistent with the requirement under Section 6(b)(5) \9\ 
that an exchange have rules that are designed to prevent fraudulent and 
manipulative acts and practices, to promote just and equitable 
principles of trade, to remove impediments to, and perfect the 
mechanism of a free and open market and, in general, to protect 
investors and the public interest. The proposed elimination of the 
Sponsor Fee is equitable and does not unfairly discriminate between 
issuers because it would apply uniformly to all Sponsors. The Exchange 
believes elimination of the Sponsor Fee is reasonable in that it 
constitutes a reduction in fees for Sponsors. Notwithstanding the 
elimination of the Sponsor Fee, the Exchange will continue to be able 
to fund its regulatory obligations.
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    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(4).
    \9\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    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 purpose of the Act. The Exchange believes the 
proposed rule change would promote competition because it will permit 
the Exchange to better compete with other exchanges that do not charge 
a fee similar to the Sponsor Fee.

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.
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    \10\ 15 U.S.C. 78s(b)(3)(A).
    \11\ 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) \12\ of the Act to determine whether the proposed 
rule change should be approved or disapproved.
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    \12\ 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, as modified by Amendment No. 1, 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-NYSEArca-2015-91 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-2015-91. 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 such filing will also 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-2015-91 and should 
be submitted on or before November 6, 2015.
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    \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. 2015-26324 Filed 10-15-15; 8:45 am]
 BILLING CODE 8011-01-P
62590 Federal Register / Vol. 80, No. 200 / Friday, October 16, 2015 / Notices

Commission shall institute proceedings 2015–83, and should be submitted on or and at the Commission’s Public
under Section 19(b)(2)(B) 14 of the Act to before November 6, 2015. Reference Room.
determine whether the proposed rule For the Commission, by the Division of II. Self-Regulatory Organization’s
change should be approved or Trading and Markets, pursuant to delegated Statement of the Purpose of, and
disapproved. authority.15
Statutory Basis for, the Proposed Rule
IV. Solicitation of Comments Robert W. Errett, Change
Deputy Secretary.
Interested persons are invited to [FR Doc. 2015–26328 Filed 10–15–15; 8:45 am]
In its filing with the Commission, the
submit written data, views, and self-regulatory organization included
BILLING CODE 8011–01–P
arguments concerning the foregoing, statements concerning the purpose of,
including whether the proposed rule and basis for, the proposed rule change
change is consistent with the Act. SECURITIES AND EXCHANGE and discussed any comments it received
Comments may be submitted by any of COMMISSION on the proposed rule change. The text
the following methods: of those statements may be examined at
[Release No. 34–76124; File No. SR– the places specified in Item IV below.
Electronic Comments NYSEArca–2015–91] The Exchange has prepared summaries,
• Use the Commission’s Internet Self-Regulatory Organizations; NYSE set forth in sections A, B, and C below,
comment form (http://www.sec.gov/ Arca, Inc.; Notice of Filing and of the most significant parts of such
rules/sro.shtml); or Immediate Effectiveness of Proposed statements.
• Send an email to rule-comments@ Rule Change, as Modified by A. Self-Regulatory Organization’s
sec.gov. Please include File No. SR– Amendment No. 1, Amending the Statement of the Purpose of, and
BATS–2015–83 on the subject line. Exchange’s Fee Schedule To Eliminate Statutory Basis for, the Proposed Rule
the Sponsor Fee In Connection With Change
Paper Comments Listing a New Derivative Securities
Product on the Exchange 1. Purpose
• Send paper comments in triplicate
Currently, the Exchange’s Schedule of
to Brent J. Fields, Secretary, Securities October 9, 2015.
Fees and Charges (‘‘Schedule’’) provides
and Exchange Commission, 100 F Street Pursuant to Section 19(b)(1)1 of the that, where a first time sponsor,
NE., Washington, DC 20549–1090. Securities Exchange Act of 1934 (the managing owner, general partner or
All submissions should refer to File No. ‘‘Act’’) 2 and Rule 19b–4 thereunder,3 equivalent (‘‘Sponsor’’) lists a new
SR–BATS–2015–83. This file number notice is hereby given that, on October Derivative Securities Product 5 on the
should be included on the subject line 5, 2015, NYSE Arca, Inc. (the Exchange, the Sponsor is charged a one-
if email is used. To help the ‘‘Exchange’’ or ‘‘NYSE Arca’’) filed with
time consulting charge of $20,000 (the
Commission process and review your the Securities and Exchange
‘‘Sponsor Fee’’). The Exchange
comments more efficiently, please use Commission (the ‘‘Commission’’) the
originally implemented the Sponsor Fee
only one method. The Commission will proposed rule change as described in
in 2009 to adequately compensate the
post all comments on the Commission’s Items I, II, and III below, which Items
Exchange for additional legal and
Internet Web site (http://www.sec.gov/ have been prepared by the self-
business resources to properly advise
rules/sro.shtml). Copies of the regulatory organization. On October 8,
new Sponsors through the listing
submission, all subsequent 2015, the Exchange filed Amendment
process.6
amendments, all written statements No. 1 to the proposed rule change.4 The
The Exchange proposes to amend the
with respect to the proposed rule Commission is publishing this notice to
Fee Schedule to eliminate the Sponsor
change that are filed with the solicit comments on the proposed rule
Fee. The Exchange has determined to
Commission, and all written change, as modified by Amendment No.
eliminate the Sponsor Fee to permit the
communications relating to the 1, from interested persons.
Exchange to better compete for listings
proposed rule change between the I. Self-Regulatory Organization’s of Derivative Securities Products with
Commission and any person, other than Statement of the Terms of Substance of other exchanges that do not impose a fee
those that may be withheld from the the Proposed Rule Change similar to the Sponsor Fee. Elimination
public in accordance with the The Exchange proposes to amend the of the Sponsor Fee would benefit
provisions of 5 U.S.C. 552, will be Exchange’s Schedule of Fees and Sponsors by providing a cost savings
available for Web site viewing and Charges (‘‘Fee Schedule’’) to eliminate and by permitting them to select their
printing in the Commission’s Public the $20,000 one-time consultation fee listing venue for a new Derivative
Reference Room, 100 F Street NE., when a first time sponsor, managing Securities Product based on level of
Washington, DC 20549 on official owner, general partner or equivalent is service and without consideration of
business days between the hours of listing a new Derivative Securities
10:00 a.m. and 3:00 p.m. Copies of such Product on the Exchange. The text of the
5 For the purposes of the Schedule, the term

filing also will be available for ‘‘Derivative Securities Products’’ includes securities
proposed rule change is available on the described in NYSE Arca Equities Rules 5.2(j)(3)
inspection and copying at the principal Exchange’s Web site at www.nyse.com, (Investment Company Units); 8.100 (Portfolio
office of the Exchange. All comments at the principal office of the Exchange, Depositary Receipts); 8.200 (Trust Issued Receipts);
received will be posted without change; 8.201 (Commodity-Based Trust Shares); 8.202
the Commission does not edit personal (Currency Trust Shares); 8.203 (Commodity Index
srobinson on DSK5SPTVN1PROD with NOTICES

15 17 CFR 200.30–3(a)(12). Trust Shares); 8.204 (Commodity Futures Trust
identifying information from 1 15 U.S.C. 78s(b)(1). Shares); 8.300 (Partnership Units); 8.500 (Trust
submissions. You should submit only 2 15 U.S.C. 78a.
Units); 8.600 (Managed Fund Shares), and 8.700
information that you wish to make 3 17 CFR 240.19b–4. (Managed Trust Securities).
available publicly. All submissions 4 In Amendment No. 1, the Exchange represented 6 See Securities Exchange Act Release No. 60184

should refer to File No. SR–BATS– that, notwithstanding the elimination of the (June 29, 2009), 74 FR 32209 (July 7, 2009) (SR–
Sponsor Fee (as defined herein), the Exchange will NYSEArca–2009–52) (notice of filing of proposed
continue to be able to fund its regulatory rule change to amend the schedule of fees and
14 15 U.S.C. 78s(b)(2)(B). obligations. changes for Exchange services).

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Federal Register / Vol. 80, No. 200 / Friday, October 16, 2015 / Notices 62591

whether a consulting fee would be subparagraph (f)(2) of Rule 19b–4 11 Reference Room, 100 F Street NE.,
charged. thereunder, because it establishes a due, Washington, DC 20549, on official
Listing Fees and Annual Fees fee, or other charge imposed by the business days between the hours of
applicable to Derivatives Securities Exchange. 10:00 a.m. and 3:00 p.m. Copies of such
Products would remain unchanged. At any time within 60 days of the filing will also be available for
filing of such proposed rule change, the inspection and copying at the principal
2. Statutory Basis
Commission summarily may office of the Exchange. All comments
NYSE Arca believes that the proposal temporarily suspend such rule change if received will be posted without change;
is consistent with Section 6(b) 7 of the it appears to the Commission that such the Commission does not edit personal
Act, in general, and Section 6(b)(4) 8 of action is necessary or appropriate in the identifying information from
the Act in particular, in that it provides public interest, for the protection of submissions. You should submit only
for the equitable allocation of reasonable investors, or otherwise in furtherance of information that you wish to make
dues, fees and other charges among its the purposes of the Act. If the available publicly. All submissions
issuers and other persons using its Commission takes such action, the should refer to File Number SR–
facilities. In addition, the Exchange Commission shall institute proceedings NYSEArca–2015–91 and should be
believes the proposal is consistent with under Section 19(b)(2)(B) 12 of the Act to submitted on or before November 6,
the requirement under Section 6(b)(5) 9 determine whether the proposed rule 2015.
that an exchange have rules that are change should be approved or
designed to prevent fraudulent and For the Commission, by the Division of
disapproved. Trading and Markets, pursuant to delegated
manipulative acts and practices, to
IV. Solicitation of Comments authority.13
promote just and equitable principles of
trade, to remove impediments to, and Robert W. Errett,
Interested persons are invited to
perfect the mechanism of a free and Deputy Secretary.
submit written data, views, and
open market and, in general, to protect arguments concerning the foregoing, [FR Doc. 2015–26324 Filed 10–15–15; 8:45 am]
investors and the public interest. The including whether the proposed rule BILLING CODE 8011–01–P
proposed elimination of the Sponsor change, as modified by Amendment No.
Fee is equitable and does not unfairly 1, is consistent with the Act. Comments
discriminate between issuers because it may be submitted by any of the SECURITIES AND EXCHANGE
would apply uniformly to all Sponsors. following methods: COMMISSION
The Exchange believes elimination of [Release No. 34-76123; File No. SR-
the Sponsor Fee is reasonable in that it Electronic comments
NASDAQ-2015-096]
constitutes a reduction in fees for • Use the Commission’s Internet
Sponsors. Notwithstanding the comment form (http://www.sec.gov/ Self-Regulatory Organizations; The
elimination of the Sponsor Fee, the rules/sro.shtml); or NASDAQ Stock Market LLC; Order
Exchange will continue to be able to • Send an email to rule-comments@ Approving Proposed Rule Change To
fund its regulatory obligations. sec.gov. Please include File Number SR– Adopt a Kill Switch for NOM
NYSEArca–2015–91 on the subject line.
B. Self-Regulatory Organization’s October 9, 2015.
Statement on Burden on Competition Paper comments
I. Introduction
The Exchange does not believe that • Send paper comments in triplicate
the proposed rule change will impose to Secretary, Securities and Exchange On August 7, 2015, The NASDAQ
any burden on competition that is not Commission, 100 F Street, NE., Stock Market LLC filed with the
necessary or appropriate in furtherance Washington, DC 20549–1090. Securities and Exchange Commission
of the purpose of the Act. The Exchange All submissions should refer to File (‘‘Commission’’), pursuant to Section
believes the proposed rule change Number SR–NYSEArca–2015–91. This 19(b)(1) of the Securities Exchange Act
would promote competition because it file number should be included on the of 1934 (‘‘Act’’) 1 and Rule 19b–4
will permit the Exchange to better subject line if email is used. To help the thereunder,2 a proposed rule change to
compete with other exchanges that do Commission process and review your adopt a risk protection functionality
not charge a fee similar to the Sponsor comments more efficiently, please use referred to as a kill switch that will be
Fee. only one method. The Commission will available to all Participants of the
post all comments on the Commission’s NASDAQ Options Market (‘‘Exchange’’
C. Self-Regulatory Organization’s or ‘‘NOM’’). The proposed rule change
Statement on Comments on the Internet Web site (http://www.sec.gov/
rules/sro.shtml). Copies of the was published for comment in the
Proposed Rule Change Received From FEDERAL REGISTER on August 26, 2015.3
Members, Participants, or Others submission, all subsequent
amendments, all written statements The Commission received no comment
No written comments were solicited letters on the proposed rule change.
with respect to the proposed rule
or received with respect to the proposed This order approves the proposed rule
change that are filed with the
rule change. change.
Commission, and all written
III. Date of Effectiveness of the communications relating to the II. Description of the Proposed Rule
Proposed Rule Change and Timing for proposed rule change between the Change
Commission Action Commission and any person, other than The Exchange proposes to offer to all
srobinson on DSK5SPTVN1PROD with NOTICES

The foregoing rule change is effective those that may be withheld from the its members a new optional risk
upon filing pursuant to Section public in accordance with the protection functionality for options to
19(b)(3)(A) 10 of the Act and provisions of 5 U.S.C. 552, will be
available for Web site viewing and 13 17 CFR 200.30–3(a)(12).
7 15 U.S.C. 78f(b). printing in the Commission’s Public 1 15 U.S.C. 78s(b)(1).
8 15 U.S.C. 78f(b)(4). 2 17 CFR 240.19b–4.
9 15 U.S.C. 78f(b)(5). 11 17 CFR 240.19b–4(f)(2). 3 See Securities Exchange Act Release No. 75743
10 15 U.S.C. 78s(b)(3)(A). 12 15 U.S.C. 78s(b)(2)(B). (August 26, 2015), 80 FR 51850 (‘‘Notice’’).

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Document Created: 2015-12-14 15:23:58
Document Modified: 2015-12-14 15:23:58
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 62590