80 FR 78809 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending the NYSE Arca Equities Schedule of Fees and Charges for Exchange Services

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 242 (December 17, 2015)

Page Range		78809-78810
FR Document		2015-31688
Federal Register, Volume 80 Issue 242 (Thursday, December 17, 2015)
[Federal Register Volume 80, Number 242 (Thursday, December 17, 2015)]
[Notices]
[Pages 78809-78810]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-31688]



[[Page 78809]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-76629; File No. SR-NYSEARCA-2015-120]


Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change Amending the NYSE 
Arca Equities Schedule of Fees and Charges for Exchange Services

December 11, 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 December 1, 2015, NYSE Arca, Inc. (the ``Exchange'' or ``NYSE 
Arca'') 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.
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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 Substance 
of the Proposed Rule Change

    The Exchange proposes to amend the NYSE Arca Equities Schedule of 
Fees and Charges for Exchange Services (``Fee Schedule''). The Exchange 
proposes to implement the change on 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.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to amend the Routable Retail Order Tier 
(``Routable Retail'') applicable to Tape A and C Securities on the Fee 
Schedule. Currently, the Routable Retail pricing tier provides ETP 
Holders, including Market Makers, that (1) provide liquidity of 0.20% 
or more of the US consolidated average daily volume (``CADV'') during a 
billing month across all Tapes, (2) maintain a ratio during a billing 
month across all Tapes of executed provide liquidity that is eligible 
to route away from the Exchange (``Routable Orders'') \4\ to total 
executed provide liquidity of 55% or more, and (3) execute an ADV of 
Retail Orders \5\ that provide liquidity during the month that is 0.10% 
or more of the US CADV, with a credit of $0.0032 per share for Routable 
and non-Routable Orders in Tape A and Tape C Securities that provide 
liquidity to the Book and a fee of $0.0030 per share [sic] and $.0029 
per share for Routable and non-Routable Orders in Tape C Securities, 
respectively [sic], that take liquidity from the Book.\6\
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    \4\ ETP Holders are able to include an instruction with their 
orders to determine whether the order will be eligible to route to 
an away exchange (e.g., to execute against trading interest with a 
better price than on the Exchange) or, for example, be cancelled if 
routing would otherwise occur.
    \5\ Retail Orders are defined in the Fee Schedule as orders 
designated as retail orders and that meet the requirements of Rule 
7.44(a)(3), but that are not executed in the Retail Liquidity 
Program. The Retail Liquidity Program is a pilot program designed to 
attract additional retail order flow to the Exchange for NYSE Arca-
listed securities and securities traded pursuant to unlisted trading 
privileges while also providing the potential for price improvement 
to such order flow. See Rule 7.44. See Securities Exchange Act 
Release No. 71176 (December 23, 2013), 78 FR 79524 (December 30, 
2013) (SR-NYSEArca-2013-107).
    \6\ See Basic Rate. Basic Rates are applicable when tier rates 
do not apply.
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    The Exchange proposes to lower the per share credit for Routable 
and non-Routable Orders in Tape A and Tape C Securities that provide 
liquidity to the Book to $0.0030 per share. The Exchange proposes to 
implement the change on December 1, 2015.
    The proposed changes are not otherwise intended to address any 
other issues, and the Exchange is not aware of any problems that ETP 
Holders would have in complying with the proposed changes.
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.
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    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(4) and (5).
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    The Exchange's proposal to lower the rebate for Routable and non-
Routable Orders in Tape A and Tape C Securities that provide liquidity 
to the Book is reasonable because the Exchange believes that despite 
the decrease, ETP Holders, including Market Makers, will continue to be 
incentivized to bring Retail Orders to earn the $0.0030 per share 
rebate. The Exchange further believes that the proposed fee change is 
equitable and not unfairly discriminatory because the lowered rebate 
would apply to all similarly situated ETP Holders, including Market 
Makers, equally. Additionally, the Exchange believes that the per share 
credits for Routable and non-Routable Orders that provide liquidity are 
fair, equitable and not unfairly discriminatory because they are 
consistent with rebate differentiation that exists today at other 
exchanges.
    The Exchange believes that the proposed rebate is competitive with 
rebates provided by other exchanges and is therefore reasonable and 
equitably allocated to those participants that direct orders to the 
Exchange rather than to a competing exchange. 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 
fee change will continue to encourage competition and attract liquidity 
to the Exchange, which will make the Exchange a more competitive venue 
for, among other things, order execution and price discovery. The 
Exchange does not believe that the proposed changes represent a 
significant departure from

[[Page 78810]]

pricing offered by the Exchange's competitors. Additionally, ETP 
Holders, including Market Makers, may opt to disfavor the Exchange's 
pricing if they believe that alternatives offer them better value. 
Accordingly, the Exchange does not believe that the proposed changes 
will impair the ability of ETP Holders, including Market Makers, or 
competing venues to maintain their competitive standing in the 
financial markets.
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    \9\ 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 promotes a 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) \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 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-2015-120 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-2015-120. 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 the 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-NYSEARCA-2015-120 and should 
be submitted on or before January 7, 2016.
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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. 2015-31688 Filed 12-16-15; 8:45 am]
 BILLING CODE 8011-01-P
78810 Federal Register / Vol. 80, No. 242 / Thursday, December 17, 2015 / Notices

pricing offered by the Exchange’s Comments may be submitted by any of SECURITIES AND EXCHANGE
competitors. Additionally, ETP Holders, the following methods: COMMISSION
including Market Makers, may opt to
disfavor the Exchange’s pricing if they Electronic Comments Submission for OMB Review Comment
believe that alternatives offer them Request
• Use the Commission’s Internet
better value. Accordingly, the Exchange comment form (http://www.sec.gov/ Upon Written Request Copies Available
does not believe that the proposed rules/sro.shtml); or From: Securities and Exchange
changes will impair the ability of ETP Commission, Office of FOIA Services,
Holders, including Market Makers, or • Send an email to rule-comments@
sec.gov. Please include File Number SR– 100 F Street NE., Washington, DC
competing venues to maintain their 20549–2736.
competitive standing in the financial NYSEARCA–2015–120 on the subject
markets. line. Extension:
Form F–80, OMB Control No. 3235–0404,
The Exchange notes that it operates in Paper Comments SEC File No. 270–357.
a highly competitive market in which
market participants can readily favor • Send paper comments in triplicate Notice is hereby given that, pursuant
competing venues. In such an to Secretary, Securities and Exchange to the Paperwork Reduction Act of 1995
environment, the Exchange must Commission, 100 F Street NE., (44 U.S.C. 3501 et seq.), the Securities
continually review, and consider Washington, DC 20549–1090. and Exchange Commission
adjusting, its fees and credits to remain (‘‘Commission’’) has submitted to the
competitive with other exchanges. For All submissions should refer to File Office of Management and Budget a
the reasons described above, the Number SR–NYSEARCA–2015–120. request for extension of the previously
Exchange believes that the proposed This file number should be included on approved collection of information
rule change promotes a competitive the subject line if email is used. To help discussed below.
environment. the Commission process and review Form F–80 (17 CFR 239.41) is a
your comments more efficiently, please registration form used by large,
C. Self-Regulatory Organization’s use only one method. The Commission publicly-traded Canadian issuers to
Statement on Comments on the will post all comments on the register securities that will be offered in
Proposed Rule Change Received From Commission’s Internet Web site (http:// a business combination, exchange offer
Members, Participants, or Others www.sec.gov/rules/sro.shtml). Copies of or other reorganization requiring the
No written comments were solicited the submission, all subsequent vote of shareholders of the participating
or received with respect to the proposed amendments, all written statements companies. The information collected is
rule change. with respect to the proposed rule intended to make available material
change that are filed with the information upon which shareholders
III. Date of Effectiveness of the and investors can make informed voting
Proposed Rule Change and Timing for Commission, and all written
and investment decisions. The
Commission Action communications relating to the
information provided is mandatory and
proposed rule change between the
The foregoing rule change is effective all information is made available to the
Commission and any person, other than
upon filing pursuant to Section public upon request. Form F–80 takes
those that may be withheld from the
19(b)(3)(A) 10 of the Act and approximately 2 hours per response and
public in accordance with the
subparagraph (f)(2) of Rule 19b–4 11 is filed by approximately 4 issuers for a
provisions of 5 U.S.C. 552, will be total annual reporting burden of 8 hours
thereunder, because it establishes a due, available for Web site viewing and
fee, or other charge imposed by the (2 hours per response × 4 responses).
printing in the Commission’s Public The estimated burden of 2 hours per
Exchange. Reference Room, 100 F Street NE.,
At any time within 60 days of the response was based upon the amount of
Washington, DC 20549, on official time necessary to compile the
filing of such proposed rule change, the business days between the hours of
Commission summarily may registration statement using the existing
10:00 a.m. and 3:00 p.m. Copies of the Canadian prospectus plus any
temporarily suspend such rule change if filing also will be available for
it appears to the Commission that such additional information required by the
inspection and copying at the principal Commission.
action is necessary or appropriate in the office of the Exchange. All comments
public interest, for the protection of An agency may not conduct or
received will be posted without change; sponsor, and a person is not required to
investors, or otherwise in furtherance of the Commission does not edit personal
the purposes of the Act. If the respond to, a collection of information
identifying information from unless it displays a currently valid
Commission takes such action, the
submissions. You should submit only control number.
Commission shall institute proceedings
information that you wish to make The public may view the background
under Section 19(b)(2)(B) 12 of the Act to
available publicly. All submissions documentation for this information
determine whether the proposed rule
should refer to File Number SR– collection at the following Web site,
change should be approved or
NYSEARCA–2015–120 and should be www.reginfo.gov. Comments should be
disapproved.
submitted on or before January 7, 2016. directed to: (i) Desk Officer for the
IV. Solicitation of Comments For the Commission, by the Division of Securities and Exchange Commission,
Office of Information and Regulatory
asabaliauskas on DSK5VPTVN1PROD with NOTICES

Interested persons are invited to Trading and Markets, pursuant to delegated
submit written data, views and authority.13 Affairs, Office of Management and
arguments concerning the foregoing, Robert W. Errett,
Budget, Room 10102, New Executive
including whether the proposed rule Office Building, Washington, DC 20503,
Deputy Secretary. or by sending an email to: Shagufta_
change is consistent with the Act.
[FR Doc. 2015–31688 Filed 12–16–15; 8:45 am] Ahmed@omb.eop.gov; and (ii) Pamela
10 15 U.S.C. 78s(b)(3)(A). BILLING CODE 8011–01–P Dyson, Director/Chief Information
11 17 CFR 240.19b–4(f)(2). Officer, Securities and Exchange
12 15 U.S.C. 78s(b)(2)(B). 13 17 CFR 200.30–3(a)(12). Commission, c/o Remi Pavlik-Simon,

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Document Created: 2018-03-02 09:17:59
Document Modified: 2018-03-02 09:17:59
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 78809