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)

[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