80 FR 70860 - Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending Its Price List to Modify Certain Fees for Transactions that Remove Liquidity from the Exchange
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 220 (November 16, 2015)
Federal Register Volume 80, Issue 220 (November 16, 2015)
| Page Range | 70860-70862 | |
| FR Document | 2015-28865 |
[Federal Register Volume 80, Number 220 (Monday, November 16, 2015)] [Notices] [Pages 70860-70862] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-28865] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-76400; File No. SR-NYSE-2015-56] Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending Its Price List to Modify Certain Fees for Transactions that Remove Liquidity from the Exchange November 9, 2015. Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 1934 (``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given that, on November 2, 2015, New York Stock Exchange LLC (``NYSE'' or ``Exchange'') filed with the Securities and Exchange Commission (``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. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 15 U.S.C. 78a. \3\ 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 modify certain fees for transactions that remove liquidity from the Exchange, effective November 2, 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 increase certain fees that remove liquidity from the Exchange, effective November 2, 2015. The proposed change would only apply to transactions in securities priced $1.00 or more. In particular, the Exchange currently charges $0.0027 per share for non-Floor broker transactions that remove liquidity from the Exchange, including those of Designated Market Makers (``DMM''). The Exchange proposes to increase this fee to $0.00275 per share. Similarly, the Exchange currently charges $0.0027 per share for all Midpoint Passive Liquidity (``MPL'') Orders \4\ that remove liquidity from the Exchange and are not designated with a Retail Modifier as defined in Rule 13. The Exchange proposes to increase the fee for executions of MPL Orders that remove liquidity from the NYSE to $0.00275 per share. --------------------------------------------------------------------------- \4\ MPL Order is defined in Rule 13 as an undisplayed limit order that automatically executes at the mid-point of the protected best bid or offer (``PBBO''). --------------------------------------------------------------------------- The Exchange currently charges $0.0024 per share or $0.0027 if an MPL Order for all other Floor broker transactions that remove liquidity from the Exchange. MPL orders designated with a Retail Modifier as defined in Rule 13 are not charged a fee. The Exchange proposes to increase the $0.0027 per share fee for Floor broker MPL Orders that take liquidity from the [[Page 70861]] NYSE to $0.00275 per share. The current $0.0024 per share fee for Floor broker transactions that take liquidity from the Exchange would remain unchanged. 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 proposed fee increase for non-Floor broker transactions that remove liquidity is reasonable because non- Floor brokers would continue to receive credits for their transactions that provide liquidity on the Exchange, including (i) for member organizations that add liquidity that satisfies certain thresholds under the Tier Adding Credits, (ii) for DMMs under the DMM credits, and (iii) for MPL Orders under various pricing categories in the Price List. The resulting fee also is equitable and not unfairly discriminatory because it would continue to be consistent with, and in some cases lower than, the applicable rate on other marketplaces. For example, the standard fee for removing liquidity from NASDAQ in both NASDAQ-listed and NYSE-listed securities is $0.0030 per share, which is higher than the proposed $0.00275 per share fee.\7\ --------------------------------------------------------------------------- \7\ See, e.g., NASDAQ Rule 7018(d). The fee for removing liquidity on NYSE Arca is also $0.0030. See NYSE Arca Equities, Inc., Schedule of Fees and Charges, available at https://www.nyse.com/publicdocs/nyse/markets/nyse-arca/NYSE_Arca_Marketplace_Fees.pdf. --------------------------------------------------------------------------- The Exchange believes that the proposed increase to the fee for executions of MPL Orders, including Floor broker MPL orders, that remove liquidity from the Exchange is reasonable because the charge would be the same as the $0.00275 per share fee proposed for all other non-Floor broker transactions that take liquidity from the NYSE. The proposed fee is also reasonable because it would be lower than the applicable rate on other marketplaces. For example, NASDAQ charges $0.0030 per share to execute against resting midpoint liquidity, which is greater than both the existing $0.0027 per share rate and the proposed $0.00275 per share rate that would apply to MPL Orders.\8\ --------------------------------------------------------------------------- \8\ See, e.g., NASDAQ Rule 7018(a). --------------------------------------------------------------------------- The Exchange believes that the proposed fee increase for MPL Orders, including Floor broker MPL orders, that remove liquidity from the Exchange is equitable and not unfairly discriminatory because MPL Orders may provide opportunities for market participants to interact with orders priced at the midpoint of the PBBO, thus providing price improving liquidity to market participants and thereby increase the quality of order execution on the Exchange's market, which benefits all market participants. The Exchange also believes the proposed fee is equitable and not unfairly discriminatory because all market participants that use the MPL Order type will pay the same proposed fee. The Exchange also believes it is equitable and not unfairly discriminatory to continue to charge Floor brokers that take liquidity a lower fee ($0.0024) than non-Floor brokers that take liquidity because Floor brokers have slower access to the Exchange (via handheld technology) than non-Floor brokers and are prohibited from routing directly to other market centers from handheld devices, which prevents them from accessing any associated pricing opportunities that might exist at those away markets. 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 change would encourage the submission of additional liquidity to a public exchange, thereby promoting price discovery and transparency and enhancing order execution opportunities for member organizations. The Exchange believes that this could promote competition between the Exchange and other execution venues, including those that currently offer similar order types and comparable transaction pricing, by encouraging additional orders to be sent to the Exchange for execution. --------------------------------------------------------------------------- \9\ 15 U.S.C. 78f(b)(8). --------------------------------------------------------------------------- Finally, the Exchange notes that it operates in a highly competitive market in which market participants can readily favor competing venues if they deem fee levels at a particular venue to be excessive or rebate opportunities available at other venues to be more favorable. In such an environment, the Exchange must continually adjust its fees and rebates to remain competitive with other exchanges and with alternative trading systems that have been exempted from compliance with the statutory standards applicable to exchanges. Because competitors are free to modify their own fees and credits in response, and because market participants may readily adjust their order routing practices, the Exchange believes that the degree to which fee changes in this market may impose any burden on competition is extremely limited. As a result of all of these considerations, the Exchange does not believe that the proposed changes will impair the ability of member organizations or competing order execution venues to maintain their competitive standing in the financial markets. 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 [[Page 70862]] 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 rule-comments@sec.gov. Please include File Number SR-NYSE-2015-56 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-NYSE-2015-56. 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 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-NYSE-2015-56 and should be submitted on or before December 7, 2015.\13\ --------------------------------------------------------------------------- \13\ 17 CFR 200.30-3(a)(12). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority. Robert W. Errett, Deputy Secretary. [FR Doc. 2015-28865 Filed 11-13-15; 8:45 am] BILLING CODE 8011-01-P
![70860 Federal Register / Vol. 80, No. 220 / Monday, November 16, 2015 / Notices
arguments concerning whether Amendments Nos. 1 and 2 only the Exchange, effective November 2,
Amendments Nos. 1 and 2 are supplement the proposed rule change 2015. The text of the proposed rule
consistent with the Act. Comments may by clarifying certain points and change is available on the Exchange’s
be submitted by any of the following providing additional detail. Therefore, Web site at www.nyse.com, at the
methods: the Commission finds good cause, principal office of the Exchange, and at
Electronic Comments pursuant to Section 19(b)(2) of the the Commission’s Public Reference
Act,31 to approve the proposed rule Room.
• Use the Commission’s Internet change, as modified by Amendments
comment form (http://www.sec.gov/ II. Self-Regulatory Organization’s
Nos. 1 and 2 on an accelerated basis.
rules/sro.shtml); or Statement of the Purpose of, and
• Send an email to rule-comments@ VI. Conclusion Statutory Basis for, the Proposed Rule
sec.gov. Please include File Number SR– It is therefore ordered, pursuant to Change
BATS–2015–56 on the subject line. Section 19(b)(2) of the Exchange Act,32 In its filing with the Commission, the
Paper Comments that the proposed rule change (SR– self-regulatory organization included
BATS–2015–56), as modified by statements concerning the purpose of,
• Send paper comments in triplicate Amendment Nos. 1 and 2, is hereby and basis for, the proposed rule change
to Secretary, Securities and Exchange approved on an accelerated basis. and discussed any comments it received
Commission, 100 F Street NE., on the proposed rule change. The text
Washington, DC 20549–1090. For the Commission, by the Division of
Trading and Markets, pursuant to delegated of those statements may be examined at
All submissions should refer to File authority.33 the places specified in Item IV below.
Number SR–BATS–2015–56. This file The Exchange has prepared summaries,
Robert W. Errett,
number should be included on the set forth in sections A, B, and C below,
subject line if email is used. To help the Deputy Secretary.
[FR Doc. 2015–28863 Filed 11–13–15; 8:45 am]
of the most significant parts of such
Commission process and review your statements.
comments more efficiently, please use BILLING CODE 8011–01–P
only one method. The Commission will A. Self-Regulatory Organization’s
post all comments on the Commission’s Statement of the Purpose of, and the
Internet Web site (http://www.sec.gov/ SECURITIES AND EXCHANGE Statutory Basis for, the Proposed Rule
rules/sro.shtml). Copies of the COMMISSION Change
submission, all subsequent [Release No. 34–76400; File No. SR–NYSE– 1. Purpose
amendments, all written statements 2015–56]
with respect to the proposed rule The Exchange proposes to amend its
change that are filed with the Self-Regulatory Organizations; New Price List to increase certain fees that
Commission, and all written York Stock Exchange LLC; Notice of remove liquidity from the Exchange,
communications relating to the Filing and Immediate Effectiveness of effective November 2, 2015. The
proposed rule change between the Proposed Rule Change Amending Its proposed change would only apply to
Commission and any person, other than Price List to Modify Certain Fees for transactions in securities priced $1.00 or
those that may be withheld from the Transactions that Remove Liquidity more.
public in accordance with the from the Exchange In particular, the Exchange currently
provisions of 5 U.S.C. 552, will be charges $0.0027 per share for non-Floor
November 9, 2015. broker transactions that remove
available for Web site viewing and
Pursuant to Section 19(b)(1) 1 of the liquidity from the Exchange, including
printing in the Commission’s Public
Securities Exchange Act of 1934 those of Designated Market Makers
Reference Room, 100 F Street NE.,
(‘‘Act’’) 2 and Rule 19b–4 thereunder,3 (‘‘DMM’’). The Exchange proposes to
Washington, DC 20549, on official
notice is hereby given that, on increase this fee to $0.00275 per share.
business days between the hours of
November 2, 2015, New York Stock Similarly, the Exchange currently
10:00 a.m. and 3:00 p.m. Copies of the
Exchange LLC (‘‘NYSE’’ or ‘‘Exchange’’) charges $0.0027 per share for all
filing also will be available for
filed with the Securities and Exchange Midpoint Passive Liquidity (‘‘MPL’’)
inspection and copying at the principal
Commission (‘‘Commission’’) the Orders 4 that remove liquidity from the
office of the Exchange. All comments
proposed rule change as described in Exchange and are not designated with a
received will be posted without change;
Items I, II, and III below, which Items Retail Modifier as defined in Rule 13.
the Commission does not edit personal
have been prepared by the self- The Exchange proposes to increase the
identifying information from
regulatory organization. The fee for executions of MPL Orders that
submissions. You should submit only
Commission is publishing this notice to remove liquidity from the NYSE to
information that you wish to make
solicit comments on the proposed rule $0.00275 per share.
available publicly. All submissions
change from interested persons. The Exchange currently charges
should refer to File Number SR–BATS–
$0.0024 per share or $0.0027 if an MPL
2015–56 and should be submitted on or I. Self-Regulatory Organization’s Order for all other Floor broker
before December 7, 2015. Statement of the Terms of Substance of transactions that remove liquidity from
the Proposed Rule Change the Exchange. MPL orders designated
V. Accelerated Approval of Proposed
Rule Change as Modified by The Exchange proposes to amend its with a Retail Modifier as defined in
Amendments Nos. 1 and 2 Price List to modify certain fees for Rule 13 are not charged a fee. The
transactions that remove liquidity from Exchange proposes to increase the
tkelley on DSK3SPTVN1PROD with NOTICES
The Commission finds good cause to
approve the proposed rule change, as $0.0027 per share fee for Floor broker
31 15 U.S.C. 78s(b)(2).
modified by Amendments Nos. 1 and 2, MPL Orders that take liquidity from the
32 15 U.S.C. 78s(b)(2).
prior to the thirtieth day after the date 33 17 CFR 200.30–3(a)(12).
4 MPL Order is defined in Rule 13 as an
of publication of notice in the Federal 1 15 U.S.C. 78s(b)(1).
undisplayed limit order that automatically executes
Register. No comments were received 2 15 U.S.C. 78a.
at the mid-point of the protected best bid or offer
after publication of the Notice. 3 17 CFR 240.19b–4. (‘‘PBBO’’).
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![70862 Federal Register / Vol. 80, No. 220 / Monday, November 16, 2015 / Notices
Commission shall institute proceedings 2015–56 and should be submitted on or SECURITIES AND EXCHANGE
under Section 19(b)(2)(B) 12 of the Act to before December 7, 2015.13 COMMISSION
determine whether the proposed rule For the Commission, by the Division of [Release No. 34–76391; File No. SR–FINRA–
change should be approved or Trading and Markets, pursuant to delegated 2015–044]
disapproved. authority.
IV. Solicitation of Comments Robert W. Errett, Self-Regulatory Organizations;
Financial Industry Regulatory
Interested persons are invited to Deputy Secretary.
Authority, Inc.; Notice of Filing and
submit written data, views, and [FR Doc. 2015–28865 Filed 11–13–15; 8:45 am]
Immediate Effectiveness of a Proposed
arguments concerning the foregoing, BILLING CODE 8011–01–P Rule Change To Establish an
including whether the proposed rule Examination Fee for the Securities
change is consistent with the Act. Trader Qualification Examination
Comments may be submitted by any of SECURITIES AND EXCHANGE (Series 57)
the following methods: COMMISSION
November 9, 2015.
Electronic Comments Pursuant to Section 19(b)(1) of the
[File No. 500–1]
• Use the Commission’s Internet Securities Exchange Act of 1934
comment form (http://www.sec.gov/ In the Matter of Tirex Corporation, (‘‘Act’’) 1 and Rule 19b–4 thereunder,2
rules/sro.shtml); or Order of Suspension of Trading notice is hereby given that on October
29, 2015, Financial Industry Regulatory
• Send an email to rule-comments@ November 12, 2015. Authority, Inc. (‘‘FINRA’’) filed with the
sec.gov. Please include File Number SR– Securities and Exchange Commission
NYSE–2015–56 on the subject line. It appears to the Securities and
Exchange Commission that there is a (‘‘SEC’’ or ‘‘Commission’’) the proposed
Paper Comments lack of current and accurate information rule change as described in Items I, II,
and III below, which Items have been
• Send paper comments in triplicate concerning the securities of The Tirex
prepared by FINRA. FINRA has
to Secretary, Securities and Exchange Corporation (‘‘Tirex’’) because it has not
designated the proposed rule change as
Commission, 100 F Street NE., filed any periodic reports since it filed
‘‘establishing or changing a due, fee or
Washington, DC 20549–1090. a Form 10–K for the period ended June other charge’’ under Section
30, 2009 on March 1, 2011. Tirex is a 19(b)(3)(A)(ii) of the Act 3 and Rule 19b–
All submissions should refer to File
Delaware corporation based in Wilton, 4(f)(2) thereunder,4 which renders the
Number SR–NYSE–2015–56. This file
Connecticut. Its securities are quoted on proposal effective upon receipt of this
number should be included on the
OTC Link (previously ‘‘Pink Sheets’’), filing by the Commission. The
subject line if email is used. To help the
Commission process and review your operated by OTC Markets Group, Inc. Commission is publishing this notice to
comments more efficiently, please use under the ticker symbol ‘‘TXMC.’’ solicit comments on the proposed rule
only one method. The Commission will The Commission is of the opinion that change from interested persons.
post all comments on the Commission’s the public interest and the protection of I. Self-Regulatory Organization’s
Internet Web site (http://www.sec.gov/ investors require a suspension of trading Statement of the Terms of the Substance
rules/sro.shtml). Copies of the in the securities of the above-listed of the Proposed Rule Change
submission, all subsequent company.
amendments, all written statements FINRA is proposing to amend Section
Therefore, it is ordered, pursuant to 4(c) of Schedule A to the FINRA By-
with respect to the proposed rule
Section 12(k) of the Securities Exchange Laws to establish an examination fee for
change that are filed with the
Act of 1934, that trading in the the Securities Trader qualification
Commission, and all written
securities of the above-listed company is examination (Series 57).
communications relating to the
proposed rule change between the suspended for the period from 9:30 a.m. The text of the proposed rule change
Commission and any person, other than EST on November 12, 2015, through is available on FINRA’s Web site at
those that may be withheld from the 11:59 p.m. EST on November 25, 2015. http://www.finra.org, at the principal
public in accordance with the By the Commission.
office of FINRA and at the
provisions of 5 U.S.C. 552, will be Commission’s Public Reference Room.
Jill M. Peterson,
available for Web site viewing and Assistant Secretary. II. Self-Regulatory Organization’s
printing in the Commission’s Public Statement of the Purpose of, and
[FR Doc. 2015–29287 Filed 11–12–15; 4:15 pm]
Reference Room, 100 F Street NE., Statutory Basis for, the Proposed Rule
BILLING CODE 8011–01–P
Washington, DC 20549, on official Change
business days between the hours of
In its filing with the Commission,
10:00 a.m. and 3:00 p.m. Copies of such
FINRA included statements concerning
filing also will be available for
the purpose of and basis for the
inspection and copying at the principal
proposed rule change and discussed any
office of the Exchange. All comments
comments it received on the proposed
received will be posted without change;
rule change. The text of these statements
the Commission does not edit personal
may be examined at the places specified
tkelley on DSK3SPTVN1PROD with NOTICES
identifying information from
in Item IV below. FINRA has prepared
submissions. You should submit only
summaries, set forth in sections A, B,
information that you wish to make
available publicly. All submissions 1 15 U.S.C. 78s(b)(1).
should refer to File Number SR–NYSE– 2 17 CFR 240.19b–4.
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: 2015-12-14 14:12:24
Document Modified: 2015-12-14 14:12:24
| 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 70860 |
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