80 FR 65826 - Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Modifying the NYSE Amex Options Fee Schedule

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 207 (October 27, 2015)

[Federal Register Volume 80, Number 207 (Tuesday, October 27, 2015)]
[Notices]
[Pages 65826-65828]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-27223]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-76215; File No. SR-NYSEMKT-2015-79]


Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and 
Immediate Effectiveness of Proposed Rule Change Modifying the NYSE Amex 
Options Fee Schedule

October 21, 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 15, 2015, NYSE MKT LLC (the ``Exchange'' or 
``NYSE MKT'') 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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of the 
Substance of the Proposed Rule Change

    The Exchange proposes to modify the NYSE Amex Options Fee Schedule. 
The Exchange proposes to implement the fee change effective October 15, 
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,

[[Page 65827]]

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 purpose of this filing is to change the Section I.C.--NYSE Amex 
Options Market Maker Sliding Scale--Electronic (``Market Maker Sliding 
Scale'') to reduce the per contract rate for each tier by $0.03 if 
volume from posted liquidity exceeds a threshold, effective on October 
15, 2015.
    Section I.C. of the Fee Schedule currently provides a discount to 
NYSE Amex Options Market Maker transaction fees based on a sliding 
volume scale.\4\ Specifically, an NYSE Amex Options Market Maker that 
has monthly volume on the Exchange of less than or equal to 0.10% of 
total industry Customer equity and exchange traded fund (``ETF'') 
options volume \5\ is charged a base rate of $0.23. An NYSE Amex 
Options Market Maker that reaches higher volume thresholds, or Tiers, 
receives a reduction of this per contract rate.\6\
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    \4\ See Fee Schedule, Section I.C.(NYSE Amex Options Market 
Maker Sliding Scale--Electronic), available here, https://www.theice.com/publicdocs/nyse/markets/amex-options/NYSE_Amex_Options_Fee_Schedule.pdf.
    \5\ The volume thresholds are based on an NYSE Amex Options 
Market Makers' volume transacted Electronically as a percentage of 
total industry Customer equity and ETF options volumes as reported 
by the Options Clearing Corporation (the ``OCC''). Total industry 
Customer equity and ETF option volume is comprised of those equity 
and ETF contracts that clear in the Customer account type at OCC and 
does not include contracts that clear in either the Firm or Market 
Maker account type at OCC or contracts overlying a security other 
than an equity or ETF security. See OCC Monthly Statistics Reports, 
available here, http://www.theocc.com/webapps/monthly-volume-reports.
    \6\ In calculating an NYSE Amex Options Market Maker Electronic 
volumes, the Exchange proposes to exclude any volumes attributable 
to Mini Options, QCC trades, CUBE Auctions, and Strategy Execution 
Fee Caps, as these transactions are subject to separate pricing 
described in proposed [sic] Fee Schedule Sections I.B., I.F., I.G., 
and I.J, respectively.
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    The Exchange is proposing to offer Market Makers the ability to 
reduce the per contract rate charged per Tier of the Market Maker 
Sliding Scale--Electronic by $0.03. Specifically, a Market Maker would 
receive the additional $0.03 discount if its monthly volume includes 
contracts traded as a result of posted trading interest that is in 
excess of 0.85% of Industry Customer Equity and ETF Option Volume.\7\ 
Accordingly, if a Market Maker meets this additional threshold, the 
following per contract rates would apply: Tier 1--$0.20; Tier 2--$0.17; 
Tier 3--$0.07; Tier 4--$0.05; Tier 5--$0.02; Tier 6--$0.00; and for 
each contract qualifying for Tier 7 the Market Maker will receive a 
$0.01 credit.
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    \7\ The same exclusions apply to posted volumes as set forth 
supra n. 6.
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act,\8\ in general, and furthers the 
objectives of Sections 6(b)(4) and (5) of the Act,\9\ 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.
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    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(4) and (5).
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    The Exchange believes that the proposal to offer an additional 
rebate to Market Makers eligible for the Sliding Scale is reasonable, 
equitable and not unfairly discriminatory because it would incentivize 
Market Makers to increase posted liquidity on the Exchange, which would 
benefit all Exchange participants, including ATP Holders, through 
increased opportunities to trade as well as enhancing price discovery. 
In addition, the proposed changes are equitable and not unfairly 
discriminatory because the credits offered would be based on the amount 
of business transacted on the Exchange.
    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,\10\ the Exchange 
does not believe that the proposed rule change would impose any burden 
on competition that is not necessary or appropriate in furtherance of 
the purposes of the Act. The Exchange believes the proposed amendments 
to the Marker Maker Sliding Scale is pro-competitive as the credits may 
incentivize Market Makers to increase posted liquidity on the Exchange 
and any resulting increase in volume and liquidity to the Exchange 
would benefit all of Exchange participants through increased 
opportunities to trade as well as enhancing price discovery.
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    \10\ 15 U.S.C. 78f(b)(8).
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    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 reflects this 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) \11\ of the Act and subparagraph (f)(2) of Rule 
19b-4 \12\ thereunder, because it establishes a due, fee, or other 
charge imposed by the Exchange.
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    \11\ 15 U.S.C. 78s(b)(3)(A).
    \12\ 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) \13\ of the Act to determine whether the proposed 
rule change should be approved or disapproved.
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    \13\ 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 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-NYSEMKT-2015-79 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-NYSEMKT-2015-79. This

[[Page 65828]]

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 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-NYSEMKT-2015-79, and should 
be submitted on or before November 17, 2015.
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    \14\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\14\
Brent J. Fields,
Secretary.
[FR Doc. 2015-27223 Filed 10-26-15; 8:45 am]
BILLING CODE 8011-01-P