80 FR 78806 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending the NYSE Arca Options Fee Schedule
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 242 (December 17, 2015)
Federal Register Volume 80, Issue 242 (December 17, 2015)
| Page Range | 78806-78808 | |
| FR Document | 2015-31686 |
[Federal Register Volume 80, Number 242 (Thursday, December 17, 2015)] [Notices] [Pages 78806-78808] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-31686] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-76627; File No. SR-NYSEArca-2015-118] Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending the NYSE Arca Options Fee Schedule December 11, 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 December 1, 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. 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 the NYSE Arca Options Fee Schedule (``Fee Schedule''). The Exchange proposes to implement the fee changes effective December 1, 2015. 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. [[Page 78807]] A. Self-Regulatory Organization's Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change 1. Purpose The purpose of this filing is to amend the Fee Schedule in a number of different ways, effective December 1, 2015. Specifically, the Exchange proposes (i) to increase certain Take Liquidity Fees charged; (ii) to introduce an alternative qualification for Market Maker Monthly Posting Credit Tiers and Qualifications For Executions in Penny Pilot Issues and SPY; and (iii) to modify the Take Fee Discount Qualification, as described below. Transaction Fees for Taking Liquidity The Exchange proposes to modify the fees paid by Market Makers, Lead Market Makers, Firms and Broker Dealers, and Professional Customers (collectively, ``Non-Customers'') for Taking Liquidity in non-Penny Pilot Issues (``Take Fees''). Currently, Non-Customers pay Take Fees ranging from $0.92 to $0.94 per contract for electronic executions, depending on account type. The Exchange proposes to charge the same rate to all Non-Customers, and to raise that fee to $0.99 per contract, which is within the range of fees charged by competing option exchanges.\4\ --------------------------------------------------------------------------- \4\ For example, BOX assesses fees greater than $1.00 to non- Customers for executions against Public Customer interest in non- penny pilot options. See BOX Options fee schedule, available here, http://boxexchange.com/assets/BOX_Fee_Schedule.pdf. --------------------------------------------------------------------------- The Exchange also proposes to increase the Take Liquidity Fee for Customers in Penny Pilot issues from $0.47 to $0.49, which is within the range of fees charged by competing option exchanges.\5\ --------------------------------------------------------------------------- \5\ See, e.g., NASDAQ Options Market (``NOM'') price list, available here, http://www.nasdaqtrader.com/Micro.aspx?id=optionsPricing (charging customers a $0.50 take liquidity fee in Penny Pilot issues). --------------------------------------------------------------------------- Take Liquidity Discount for Certain Market Participants The Exchange proposes modifications to the Discount in Take Liquidity Fees for Professional Customer, Market Maker, Firm and Broker Dealer Liquidity Removing Orders (the ``Take Fee Discount'') for OTPs. Currently, the Take Fee Discount is applied if the OTP achieves one of two alternative qualifications, either: At least 1.00% of Total Industry Customer equity and exchange traded fund (``ETF'') option average daily volume (``ADV'') from Customer and Professional Customer Posted Orders in all Issues; or at least 2.00% of Total Industry Customer equity and ETF option ADV from Professional Customer, Market Maker, Firm, and Broker Dealer Liquidity Removing Orders in all Issues. The Take Fee Discount applied to orders meeting either qualification is $0.04 in Penny Pilot issues only. The Exchange proposes to reduce the Take Fee Discount in Penny Pilot issues to $0.02 and to institute a $0.05 Take Fee Discount in non-Penny Pilot issues. Market Maker Monthly Posting Credit and Qualifications for Executions in Penny Pilot Issues and SPY (``Posting Tiers'') Finally, the Exchange proposes to add an alternative qualification basis to achieve Super Tier II of the Posting Tiers. Currently, a Market Maker may qualify for Super Tier II if it achieves at least 1.60% of Total Industry Customer equity and ETF option ADV from Market Maker orders in all issues, with at least 0.90% of Total Industry Customer equity and ETF option ADV from Market Maker Posted Orders in Penny Pilot and Non-Penny Pilot Issues.\6\ The Exchange proposes that a Market Maker may also qualify for Super Tier II it is [sic] achieves at least 1.60% of Total Industry Customer equity and ETF option ADV from Customer and Professional Customer orders in all issues, with at least 1.20% of Total Industry Customer equity and ETF option ADV from Customer and Professional Customer Posted Orders in all issues. If a Market Maker achieves either qualification basis, it would receive the $0.42 posting credit for executions in penny issues or SPY. --------------------------------------------------------------------------- \6\ The volume thresholds are based on 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. --------------------------------------------------------------------------- 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 Take Fees for Non-Customers are reasonable, equitable and not unfairly discriminatory because they are competitive with fees charged by other exchanges and are designed to attract (and compete for) order flow to the Exchange, which provides a greater opportunity for trading by all market participants.\9\ In addition, the increased Take Fees are reasonable because the fees would generate revenue that would help to support the credits offered for posting liquidity, which are available to all market participants. Moreover, the Exchange believes the proposed change would not unfairly discriminate because it applies equally to all Non-Customers who are removing liquidity. The increased Take Fees for Customers in Penny Pilot issues are reasonable because the proposed fees would generate revenue that would help to support the credits and other incentives offered for posting liquidity, and they are not unfairly discriminatory because the fees for Customers are still at a rate lower than that charged to non-Customers. In addition, the Exchange believes the proposed Take Fees for Customers are reasonable, equitable and not unfairly discriminatory because they are competitive with fees charged by other exchanges and are designed to attract (and compete for) order flow to the Exchange, which provides a greater opportunity for trading by all market participants.\10\ --------------------------------------------------------------------------- \9\ See supra n. 4. \10\ See supra n. 5. --------------------------------------------------------------------------- The Exchange believes the changes to the Take Fee Discount for Non- Customers are reasonable, equitable and non-discriminatory because it would apply to both Penny Pilot and non-Penny Pilot issues, which would incent OTPs to execute large volumes of orders on the Exchange, which benefits all market participants through increased liquidity and enhanced price discovery. The Exchange believes the Take Fee Discount is reasonable, equitable, and not unfairly discriminatory because it continues to apply to all participants other than Customers, who pay a much lower Take Liquidity Fee, and because it is available to all firms that provide Customer and Professional Customer orders. The Exchange also notes that the proposed Take Fee Discount is consistent with those offered on competing options exchanges.\11\ --------------------------------------------------------------------------- \11\ See, e.g., BATS Options Exchange fee schedule (Non-Customer Penny Pilot Take Volume Tiers), available here, http://www.batsoptions.com/support/fee_schedule/. --------------------------------------------------------------------------- [[Page 78808]] The Exchange believes that the proposed change to the Posting Tiers, specifically adding an alternative basis to achieve Super Tier II, is reasonable, equitable and not unfairly discriminatory because it would impact all similarly situated OTPs that post electronic Customer (and Professional Customer) executions on the Exchange equally, and provides a reasonable alternative to qualify for Super Tier II posting credit. 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,\12\ 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 purposes of the Act. Instead, the Exchange believes that the proposed incentive would continue to encourage competition, including by attracting additional liquidity and a wider variety of business to the Exchange, which would continue to make the Exchange a more competitive venue for, among other things, order execution and price discovery. The Exchange also believes the proposed fee modifications would not impose an undue burden on competition because the changes offset an increase in fees for some transactions with a variety of means to achieve credits and discounts. The Exchange does not believe that the proposed changes would impair the ability of any market participants or competing order execution venues to maintain their competitive standing in the financial markets. --------------------------------------------------------------------------- \12\ 15 U.S.C. 78f(b)(8). --------------------------------------------------------------------------- The increases in Take Liquidity fees would impact all affected order types (i.e., Professional Customers, Firm, Broker Dealers) in issues at the same rate. The proposed change to Super Tier II is designed to attract additional volume, in particular posted electronic Customer (and Professional Customer) executions, to the Exchange, which would promote price discovery and transparency in the securities markets thereby benefitting competition in the industry. As stated above, the Exchange believes that the proposed change would impact all similarly situated OTPs that post electronic Customer (and Professional Customer) executions on the Exchange equally, and as such, the proposed change would not impose a disparate burden on competition either among or between classes of market participants. 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) \13\ of the Act and subparagraph (f)(2) of Rule 19b-4 \14\ thereunder, because it establishes a due, fee, or other charge imposed by the Exchange. --------------------------------------------------------------------------- \13\ 15 U.S.C. 78s(b)(3)(A). \14\ 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) \15\ of the Act to determine whether the proposed rule change should be approved or disapproved. --------------------------------------------------------------------------- \15\ 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-NYSEArca-2015-118 on the subject line. Paper Comments Send paper comments in triplicate to Brent J. Fields, Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549. All submissions should refer to File Number SR-NYSEArca-2015-118. 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 Section, 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 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-2015-118 and should be submitted on or before January 7, 2016. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\16\ --------------------------------------------------------------------------- \16\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2015-31686 Filed 12-16-15; 8:45 am] BILLING CODE 8011-01-P
![78806 Federal Register / Vol. 80, No. 242 / Thursday, December 17, 2015 / Notices
Act 15 normally does not become Paper Comments SECURITIES AND EXCHANGE
operative for 30 days after the date of its COMMISSION
filing. However, Rule 19b–4(f)(6)(iii) 16 • Send paper comments in triplicate
permits the Commission to designate a to Brent J. Fields, Secretary, Securities
[Release No. 34–76627; File No. SR–
shorter time if such action is consistent and Exchange Commission, 100 F Street
NYSEArca–2015–118]
with the protection of investors and the NE., Washington, DC 20549–1090.
public interest. The Exchange has asked All submissions should refer to File Self-Regulatory Organizations; NYSE
the Commission to waive the 30-day Number SR–BYX–2015–49. This file Arca, Inc.; Notice of Filing and
operative delay so that the proposal may number should be included on the Immediate Effectiveness of Proposed
become operative immediately upon Rule Change Amending the NYSE Arca
subject line if email is used. To help the
filing. The Exchange stated that waiver Options Fee Schedule
Commission process and review your
of the operative delay will allow the
Exchange to immediately provide Users comments more efficiently, please use
December 11, 2015.
with additional control over their orders only one method. The Commission will
post all comments on the Commission’s Pursuant to Section 19(b)(1) 1 of the
in the context of a national market
Internet Web site (http://www.sec.gov/ Securities Exchange Act of 1934 (the
system where quotations may lock or
cross orders posted to the BATS Book rules/sro.shtml). Copies of the ‘‘Act’’) 2 and Rule 19b–4 thereunder,3
and to facilitate executions on the submission, all subsequent notice is hereby given that, on December
Exchange consistent with User amendments, all written statements 1, 2015, NYSE Arca, Inc. (the
instructions.17 The Commission with respect to the proposed rule ‘‘Exchange’’ or ‘‘NYSE Arca’’) filed with
believes the waiver of the operative change that are filed with the the Securities and Exchange
delay is consistent with the protection Commission, and all written Commission (the ‘‘Commission’’) the
of investors and the public interest. communications relating to the proposed rule change as described in
Therefore, the Commission hereby proposed rule change between the Items I, II, and III below, which Items
waives the operative delay and Commission and any person, other than have been prepared by the self-
designates the proposal operative upon those that may be withheld from the regulatory organization. The
filing.18 public in accordance with the Commission is publishing this notice to
At any time within 60 days of the provisions of 5 U.S.C. 552, will be solicit comments on the proposed rule
filing of the proposed rule change, the available for Web site viewing and change from interested persons.
Commission summarily may printing in the Commission’s Public I. Self-Regulatory Organization’s
temporarily suspend such rule change if Reference Room, 100 F Street NE., Statement of the Terms of Substance of
it appears to the Commission that such Washington, DC 20549 on official the Proposed Rule Change
action is necessary or appropriate in the business days between the hours of
public interest, for the protection of 10:00 a.m. and 3:00 p.m. Copies of such The Exchange proposes to amend the
investors, or otherwise in furtherance of filing also will be available for NYSE Arca Options Fee Schedule (‘‘Fee
the purposes of the Act. If the inspection and copying at the principal Schedule’’). The Exchange proposes to
Commission takes such action, the office of the Exchange. All comments implement the fee changes effective
Commission shall institute proceedings received will be posted without change; December 1, 2015. The proposed rule
to determine whether the proposed rule the Commission does not edit personal change is available on the Exchange’s
change should be approved or
identifying information from Web site at www.nyse.com, at the
disapproved.
submissions. You should submit only principal office of the Exchange, and at
IV. Solicitation of Comments information that you wish to make the Commission’s Public Reference
available publicly. All submissions Room.
Interested persons are invited to
should refer to File Number SR–BYX–
submit written data, views, and II. Self-Regulatory Organization’s
arguments concerning the foregoing, 2015–49, and should be submitted on or
Statement of the Purpose of, and
including whether the proposed rule before January 7, 2016.
Statutory Basis for, the Proposed Rule
change is consistent with the Act. For the Commission, by the Division of Change
Comments may be submitted by any of Trading and Markets, pursuant to delegated
the following methods: authority.19 In its filing with the Commission, the
Robert W. Errett, self-regulatory organization included
Electronic Comments
Deputy Secretary. statements concerning the purpose of,
• Use the Commission’s Internet [FR Doc. 2015–31684 Filed 12–16–15; 8:45 am] and basis for, the proposed rule change
comment form (http://www.sec.gov/ and discussed any comments it received
BILLING CODE 8011–01–P
rules/sro.shtml); or on the proposed rule change. The text
• Send an email to rule-comments@ of those statements may be examined at
sec.gov. Please include File Number SR– the places specified in Item IV below.
BYX–2015–49 on the subject line. The Exchange has prepared summaries,
set forth in sections A, B, and C below,
asabaliauskas on DSK5VPTVN1PROD with NOTICES
15 17 CFR 240.19b–4(f)(6). of the most significant parts of such
16 17 CFR 240.19b–4(f)(6)(iii). statements.
17 The Exchange further stated that it will provide
Members with reasonable advance notice of the
proposed rule change’s implementation date.
18 For purposes only of waiving the 30-day
operative delay, the Commission has also 1 15 U.S.C. 78s(b)(1).
considered the proposed rule’s impact on
2 15 U.S.C. 78a.
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f). 19 17 CFR 200.30–3(a)(12). 3 17 CFR 240.19b–4.
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A. Self-Regulatory Organization’s 2.00% of Total Industry Customer facilities and does not unfairly
Statement of the Purpose of, and the equity and ETF option ADV from discriminate between customers,
Statutory Basis for, the Proposed Rule Professional Customer, Market Maker, issuers, brokers or dealers.
Change Firm, and Broker Dealer Liquidity The Exchange believes the proposed
Removing Orders in all Issues. The Take Take Fees for Non-Customers are
1. Purpose
Fee Discount applied to orders meeting reasonable, equitable and not unfairly
The purpose of this filing is to amend either qualification is $0.04 in Penny discriminatory because they are
the Fee Schedule in a number of Pilot issues only. The Exchange competitive with fees charged by other
different ways, effective December 1, proposes to reduce the Take Fee exchanges and are designed to attract
2015. Specifically, the Exchange Discount in Penny Pilot issues to $0.02 (and compete for) order flow to the
proposes (i) to increase certain Take and to institute a $0.05 Take Fee Exchange, which provides a greater
Liquidity Fees charged; (ii) to introduce Discount in non-Penny Pilot issues. opportunity for trading by all market
an alternative qualification for Market participants.9 In addition, the increased
Maker Monthly Posting Credit Tiers and Market Maker Monthly Posting Credit
and Qualifications for Executions in Take Fees are reasonable because the
Qualifications For Executions in Penny fees would generate revenue that would
Pilot Issues and SPY; and (iii) to modify Penny Pilot Issues and SPY (‘‘Posting
Tiers’’) help to support the credits offered for
the Take Fee Discount Qualification, as posting liquidity, which are available to
described below. Finally, the Exchange proposes to add all market participants. Moreover, the
an alternative qualification basis to Exchange believes the proposed change
Transaction Fees for Taking Liquidity
achieve Super Tier II of the Posting would not unfairly discriminate because
The Exchange proposes to modify the Tiers. it applies equally to all Non-Customers
fees paid by Market Makers, Lead Currently, a Market Maker may who are removing liquidity. The
Market Makers, Firms and Broker qualify for Super Tier II if it achieves at increased Take Fees for Customers in
Dealers, and Professional Customers least 1.60% of Total Industry Customer Penny Pilot issues are reasonable
(collectively, ‘‘Non-Customers’’) for equity and ETF option ADV from because the proposed fees would
Taking Liquidity in non-Penny Pilot Market Maker orders in all issues, with generate revenue that would help to
Issues (‘‘Take Fees’’). Currently, Non- at least 0.90% of Total Industry
support the credits and other incentives
Customers pay Take Fees ranging from Customer equity and ETF option ADV
offered for posting liquidity, and they
$0.92 to $0.94 per contract for electronic from Market Maker Posted Orders in
are not unfairly discriminatory because
executions, depending on account type. Penny Pilot and Non-Penny Pilot
the fees for Customers are still at a rate
The Exchange proposes to charge the Issues.6 The Exchange proposes that a
lower than that charged to non-
same rate to all Non-Customers, and to Market Maker may also qualify for
Customers. In addition, the Exchange
raise that fee to $0.99 per contract, Super Tier II it is [sic] achieves at least
believes the proposed Take Fees for
which is within the range of fees 1.60% of Total Industry Customer
Customers are reasonable, equitable and
charged by competing option equity and ETF option ADV from
not unfairly discriminatory because they
exchanges.4 Customer and Professional Customer
The Exchange also proposes to are competitive with fees charged by
orders in all issues, with at least 1.20%
increase the Take Liquidity Fee for of Total Industry Customer equity and other exchanges and are designed to
Customers in Penny Pilot issues from ETF option ADV from Customer and attract (and compete for) order flow to
$0.47 to $0.49, which is within the Professional Customer Posted Orders in the Exchange, which provides a greater
range of fees charged by competing all issues. If a Market Maker achieves opportunity for trading by all market
option exchanges.5 either qualification basis, it would participants.10
receive the $0.42 posting credit for The Exchange believes the changes to
Take Liquidity Discount for Certain the Take Fee Discount for Non-
executions in penny issues or SPY.
Market Participants Customers are reasonable, equitable and
The Exchange proposes modifications 2. Statutory Basis non-discriminatory because it would
to the Discount in Take Liquidity Fees The Exchange believes that the apply to both Penny Pilot and non-
for Professional Customer, Market proposed rule change is consistent with Penny Pilot issues, which would incent
Maker, Firm and Broker Dealer Section 6(b) of the Act,7 in general, and OTPs to execute large volumes of orders
Liquidity Removing Orders (the ‘‘Take furthers the objectives of Sections on the Exchange, which benefits all
Fee Discount’’) for OTPs. Currently, the 6(b)(4) and (5) of the Act,8 in particular, market participants through increased
Take Fee Discount is applied if the OTP because it provides for the equitable liquidity and enhanced price discovery.
achieves one of two alternative allocation of reasonable dues, fees, and The Exchange believes the Take Fee
qualifications, either: At least 1.00% of other charges among its members, Discount is reasonable, equitable, and
Total Industry Customer equity and issuers and other persons using its not unfairly discriminatory because it
exchange traded fund (‘‘ETF’’) option continues to apply to all participants
average daily volume (‘‘ADV’’) from 6 The volume thresholds are based on Market other than Customers, who pay a much
Customer and Professional Customer Makers’ volume transacted electronically as a lower Take Liquidity Fee, and because
percentage of total industry Customer equity and it is available to all firms that provide
Posted Orders in all Issues; or at least ETF options volumes as reported by the Options
Clearing Corporation (the ‘‘OCC’’). Total industry Customer and Professional Customer
4 For example, BOX assesses fees greater than customer equity and ETF option volume is orders. The Exchange also notes that the
asabaliauskas on DSK5VPTVN1PROD with NOTICES
$1.00 to non-Customers for executions against comprised of those equity and ETF contracts that proposed Take Fee Discount is
Public Customer interest in non-penny pilot clear in the Customer account type at OCC and does consistent with those offered on
options. See BOX Options fee schedule, available not include contracts that clear in either the Firm
here, http://boxexchange.com/assets/ or Market Maker account type at OCC or contracts competing options exchanges.11
BOX_Fee_Schedule.pdf. overlying a security other than an equity or ETF
5 See, e.g., NASDAQ Options Market (‘‘NOM’’) security. See OCC Monthly Statistics Reports, 9 See supra n. 4.
price list, available here, http:// available here, http://www.theocc.com/webapps/ 10 See supra n. 5.
www.nasdaqtrader.com/ monthly-volume-reports. 11 See, e.g., BATS Options Exchange fee schedule
7 15 U.S.C. 78f(b).
Micro.aspx?id=optionsPricing (charging customers a (Non-Customer Penny Pilot Take Volume Tiers),
$0.50 take liquidity fee in Penny Pilot issues). 8 15 U.S.C. 78f(b)(4) and (5). Continued
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The Exchange believes that the among or between classes of market Paper Comments
proposed change to the Posting Tiers, participants.
specifically adding an alternative basis The Exchange notes that it operates in • Send paper comments in triplicate
to achieve Super Tier II, is reasonable, a highly competitive market in which to Brent J. Fields, Secretary, Securities
equitable and not unfairly market participants can readily favor and Exchange Commission, 100 F Street
discriminatory because it would impact competing venues. In such an NE., Washington, DC 20549.
all similarly situated OTPs that post environment, the Exchange must
All submissions should refer to File
electronic Customer (and Professional continually review, and consider
adjusting, its fees and credits to remain Number SR–NYSEArca–2015–118. This
Customer) executions on the Exchange
competitive with other exchanges. For file number should be included on the
equally, and provides a reasonable
alternative to qualify for Super Tier II the reasons described above, the subject line if email is used. To help the
posting credit. Exchange believes that the proposed Commission process and review your
For these reasons, the Exchange rule change reflects this competitive comments more efficiently, please use
believes that the proposal is consistent environment. only one method. The Commission will
with the Act. post all comments on the Commission’s
C. Self-Regulatory Organization’s Internet Web site (http://www.sec.gov/
B. Self-Regulatory Organization’s Statement on Comments on the
rules/sro.shtml). Copies of the
Statement on Burden on Competition Proposed Rule Change Received From
submission, all subsequent
In accordance with Section 6(b)(8) of Members, Participants, or Others
amendments, all written statements
the Act,12 the Exchange does not believe No written comments were solicited with respect to the proposed rule
that the proposed rule change will or received with respect to the proposed change that are filed with the
impose any burden on competition that rule change. Commission, and all written
is not necessary or appropriate in III. Date of Effectiveness of the communications relating to the
furtherance of the purposes of the Act. Proposed Rule Change and Timing for proposed rule change between the
Instead, the Exchange believes that the Commission Action Commission and any person, other than
proposed incentive would continue to
The foregoing rule change is effective those that may be withheld from the
encourage competition, including by
upon filing pursuant to Section public in accordance with the
attracting additional liquidity and a
19(b)(3)(A) 13 of the Act and provisions of 5 U.S.C. 552, will be
wider variety of business to the
Exchange, which would continue to subparagraph (f)(2) of Rule 19b–4 14 available for Web site viewing and
make the Exchange a more competitive thereunder, because it establishes a due, printing in the Commission’s Public
venue for, among other things, order fee, or other charge imposed by the Reference Section, 100 F Street NE.,
execution and price discovery. The Exchange. Washington, DC 20549 on official
Exchange also believes the proposed fee At any time within 60 days of the business days between the hours of
modifications would not impose an filing of such proposed rule change, the 10:00 a.m. and 3:00 p.m. Copies of the
Commission summarily may filing will also be available for
undue burden on competition because
temporarily suspend such rule change if inspection and copying at the principal
the changes offset an increase in fees for
it appears to the Commission that such office of the Exchange. All comments
some transactions with a variety of
action is necessary or appropriate in the received will be posted without change;
means to achieve credits and discounts.
public interest, for the protection of
The Exchange does not believe that the the Commission does not edit personal
investors, or otherwise in furtherance of
proposed changes would impair the identifying information from
the purposes of the Act. If the
ability of any market participants or submissions. You should submit only
Commission takes such action, the
competing order execution venues to information that you wish to make
Commission shall institute proceedings
maintain their competitive standing in available publicly. All submissions
under Section 19(b)(2)(B) 15 of the Act to
the financial markets. determine whether the proposed rule should refer to File Number SR–
The increases in Take Liquidity fees NYSEArca–2015–118 and should be
change should be approved or
would impact all affected order types submitted on or before January 7, 2016.
disapproved.
(i.e., Professional Customers, Firm,
Broker Dealers) in issues at the same IV. Solicitation of Comments For the Commission, by the Division of
rate. The proposed change to Super Tier Trading and Markets, pursuant to delegated
Interested persons are invited to authority.16
II is designed to attract additional submit written data, views, and
volume, in particular posted electronic Robert W. Errett,
arguments concerning the foregoing,
Customer (and Professional Customer) including whether the proposed rule Deputy Secretary.
executions, to the Exchange, which change is consistent with the Act. [FR Doc. 2015–31686 Filed 12–16–15; 8:45 am]
would promote price discovery and Comments may be submitted by any of BILLING CODE 8011–01–P
transparency in the securities markets the following methods:
thereby benefitting competition in the
industry. As stated above, the Exchange Electronic Comments
believes that the proposed change • Use the Commission’s Internet
would impact all similarly situated comment form (http://www.sec.gov/
asabaliauskas on DSK5VPTVN1PROD with NOTICES
OTPs that post electronic Customer (and rules/sro.shtml); or
Professional Customer) executions on • Send an email to rule-comments@
the Exchange equally, and as such, the sec.gov. Please include File Number SR–
proposed change would not impose a NYSEArca–2015–118 on the subject
disparate burden on competition either line.
13 15 U.S.C. 78s(b)(3)(A).
available here, http://www.batsoptions.com/
support/fee_schedule/. 14 17 CFR 240.19b–4(f)(2).
12 15 U.S.C. 78f(b)(8). 15 15 U.S.C. 78s(b)(2)(B). 16 17 CFR 200.30–3(a)(12).
VerDate Sep<11>2014 16:53 Dec 16, 2015 Jkt 238001 PO 00000 Frm 00101 Fmt 4703 Sfmt 9990 E:\FR\FM\17DEN1.SGM 17DEN1](https://thefederalregister.org/doc/80_FR_79048/page/3.svg)
Document Created: 2018-03-02 09:17:45
Document Modified: 2018-03-02 09:17:45
| 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 78806 |
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