81 FR 12775 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Modify the NYSE Arca Options Fee Schedule Relating to ByRDs Transaction Fees

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 47 (March 10, 2016)

Page Range		12775-12776
FR Document		2016-05324
Federal Register, Volume 81 Issue 47 (Thursday, March 10, 2016)
[Federal Register Volume 81, Number 47 (Thursday, March 10, 2016)]
[Notices]
[Pages 12775-12776]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-05324]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-77294; File No. SR-NYSEArca-2016-40]


Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change To Modify the NYSE 
Arca Options Fee Schedule Relating to ByRDs Transaction Fees

March 4, 2016.
    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 March 1, 2016, 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.
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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 Arca Options Fee Schedule 
(``Fee Schedule'') to address how the Exchange would treat transactions 
in Binary Return Derivatives contracts (``ByRDs''). The Exchange 
proposes to implement the fee change effective March 1, 2016. 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 purpose of this filing is to propose revisions to the Fee 
Schedule to address how the Exchange would treat transactions in ByRDs.
    The Exchange recently added rules related to ByRDs and plans to 
launch trading in ByRDs in March 2016.\4\ To encourage trading in 
ByRDs, the Exchange proposes to exempt transactions in ByRds from all 
transaction fees and credits at this time., [sic] The Exchange also 
proposes that any volume in ByRDs would be included in the calculations 
to qualify for any volume-based incentives currently being offered on 
the Exchange. Accordingly, the Exchange proposes to add Endnote 14 to 
the Fee Schedule regarding the Rates for Standard Options transactions 
to reflect this proposed change.
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    \4\ See Securities Exchange Act Release No. 77044 (February 3, 
2016), 81 FR 6908 (February 3 [sic], 2016) (SR-Arca-2-16) (immediate 
effectiveness filing adopting rules relating to ByRDs). ByRDs are 
European-style option contracts on individual stocks, exchange-
traded funds (``ETFs'') and Index-Linked Securities that have a 
fixed return in cash based on a set strike price; satisfy specified 
listing criteria; and may only be excercised at expiration pursuant 
to the Rules of the Options Clearing Corporation (the ``OCC'').
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    The Exchange believes the proposed treatment of ByRDs for purposes 
of the Fee Schedule would further the Exchange's goal of introducing 
new products to the marketplace by encouraging trading in these 
products.
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 (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.
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    \5\ 15 U.S.C. 78f(b).
    \6\ 15 U.S.C. 78f(b)(4) and (5).
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    The Exchange believes the proposed change is reasonable and does 
not unfairly discriminate between customers, issues, brokers, or 
dealers, because the Exchange's treatment of ByRDs would apply equally 
to all market participants that opted to trade ByRDs. Further, the 
proposed change is reasonable and does not unfairly discriminate 
because exempting ByRDs from transaction fees, while still including 
any volume in ByRDs in the calculations to qualify for any volume-based 
incentives offered on the Exchange would further the Exchange's goal of 
introducing new products to the marketplace by encouraging trading in 
these products. To the extent that the proposed change incentivizes any 
market participants to direct their order flow to the Exchange, all 
market participants would benefit from increased liquidity and trading 
opportunities on the Exchange.

B. Self-Regulatory Organization's Statement on Burden on Competition

    In accordance with section 6(b)(8) of the Act,\7\ 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. The Exchange believes that the proposed change is 
pro-competitive as it would further the Exchange's goal of introducing 
new products to the marketplace and encouraging trading in these 
products, which would in turn, benefit market participants. To the 
extent that this purpose is achieved, all of the Exchange's market 
participants should benefit from the improved market liquidity. 
Enhanced market quality and increased transaction volume that results 
from the anticipated increase in order flow directed to the Exchange 
will benefit all market

[[Page 12776]]

participants and improve competition on the Exchange.
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    \7\ 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) \8\ of the Act and subparagraph (f)(2) of Rule 19b-
4 \9\ thereunder, because it establishes a due, fee, or other charge 
imposed by the Exchange.
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    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 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) \10\ of the Act to determine whether the proposed 
rule change should be approved or disapproved.
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    \10\ 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 No. SR-NYSEArca-2016-40 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 No. SR-NYSEArca-2016-40. 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 No. SR-NYSEArca-2016-40, and should be 
submitted on or before March 31, 2016.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2016-05324 Filed 3-9-16; 8:45 am]
BILLING CODE 8011-01-P
Federal Register / Vol. 81, No. 47 / Thursday, March 10, 2016 / Notices 12775

public in accordance with the Exchange would treat transactions in products to the marketplace by
provisions of 5 U.S.C. 552, will be Binary Return Derivatives contracts encouraging trading in these products.
available for Web site viewing and (‘‘ByRDs’’). The Exchange proposes to
2. Statutory Basis
printing in the Commission’s Public implement the fee change effective
Reference Room, 100 F Street NE., March 1, 2016. The proposed rule The Exchange believes that the
Washington, DC 20549 on official change is available on the Exchange’s proposed rule change is consistent with
business days between the hours of Web site at www.nyse.com, at the Section 6(b) of the Act,5 in general, and
10:00 a.m. and 3:00 p.m. Copies of such principal office of the Exchange, and at furthers the objectives of sections 6(b)(4)
filing also will be available for the Commission’s Public Reference and (5) of the Act,6 in particular,
inspection and copying at the principal Room. because it provides for the equitable
office of the Exchange. All comments allocation of reasonable dues, fees, and
received will be posted without change; II. Self-Regulatory Organization’s
Statement of the Purpose of, and other charges among its members,
the Commission does not edit personal issuers and other persons using its
identifying information from Statutory Basis for, the Proposed Rule
Change facilities and does not unfairly
submissions. You should submit only discriminate between customers,
information that you wish to make In its filing with the Commission, the issuers, brokers or dealers.
available publicly. All submissions self-regulatory organization included The Exchange believes the proposed
should refer to File Number SR– statements concerning the purpose of, change is reasonable and does not
ISEMercury–2016–02, and should be and basis for, the proposed rule change unfairly discriminate between
submitted on or before March 31, 2016. and discussed any comments it received customers, issues, brokers, or dealers,
For the Commission, by the Division of on the proposed rule change. The text because the Exchange’s treatment of
Trading and Markets, pursuant to delegated of those statements may be examined at ByRDs would apply equally to all
authority.43 the places specified in Item IV below. market participants that opted to trade
Brent J. Fields, The Exchange has prepared summaries, ByRDs. Further, the proposed change is
Secretary. set forth in sections A, B, and C below, reasonable and does not unfairly
[FR Doc. 2016–05322 Filed 3–9–16; 8:45 am] of the most significant parts of such discriminate because exempting ByRDs
BILLING CODE 8011–01–P
statements. from transaction fees, while still
A. Self-Regulatory Organization’s including any volume in ByRDs in the
Statement of the Purpose of, and calculations to qualify for any volume-
SECURITIES AND EXCHANGE Statutory Basis for, the Proposed Rule based incentives offered on the
COMMISSION Change Exchange would further the Exchange’s
[Release No. 34–77294; File No. SR– goal of introducing new products to the
1. Purpose marketplace by encouraging trading in
NYSEArca–2016–40]
The purpose of this filing is to these products. To the extent that the
Self-Regulatory Organizations; NYSE propose revisions to the Fee Schedule to proposed change incentivizes any
Arca, Inc.; Notice of Filing and address how the Exchange would treat market participants to direct their order
Immediate Effectiveness of Proposed transactions in ByRDs. flow to the Exchange, all market
Rule Change To Modify the NYSE Arca The Exchange recently added rules participants would benefit from
Options Fee Schedule Relating to related to ByRDs and plans to launch increased liquidity and trading
ByRDs Transaction Fees trading in ByRDs in March 2016.4 To opportunities on the Exchange.
March 4, 2016.
encourage trading in ByRDs, the B. Self-Regulatory Organization’s
Exchange proposes to exempt Statement on Burden on Competition
Pursuant to section 19(b)(1) 1 of the
transactions in ByRds from all
Securities Exchange Act of 1934 (the
transaction fees and credits at this time., In accordance with section 6(b)(8) of
‘‘Act’’) 2 and Rule 19b–4 thereunder,3
[sic] The Exchange also proposes that the Act,7 the Exchange does not believe
notice is hereby given that, on March 1,
any volume in ByRDs would be that the proposed rule change will
2016, NYSE Arca, Inc. (the ‘‘Exchange’’
included in the calculations to qualify impose any burden on competition that
or ‘‘NYSE Arca’’) filed with the
for any volume-based incentives is not necessary or appropriate in
Securities and Exchange Commission
currently being offered on the Exchange. furtherance of the purposes of the Act.
(the ‘‘Commission’’) the proposed rule
Accordingly, the Exchange proposes to The Exchange believes that the
change as described in Items I, II, and
add Endnote 14 to the Fee Schedule proposed change is pro-competitive as it
III below, which Items have been
regarding the Rates for Standard would further the Exchange’s goal of
prepared by the self-regulatory
Options transactions to reflect this introducing new products to the
organization. The Commission is
proposed change. marketplace and encouraging trading in
publishing this notice to solicit
The Exchange believes the proposed these products, which would in turn,
comments on the proposed rule change
treatment of ByRDs for purposes of the benefit market participants. To the
from interested persons.
Fee Schedule would further the extent that this purpose is achieved, all
I. Self-Regulatory Organization’s Exchange’s goal of introducing new of the Exchange’s market participants
Statement of the Terms of the Substance should benefit from the improved
of the Proposed Rule Change 4 See Securities Exchange Act Release No. 77044
market liquidity. Enhanced market
(February 3, 2016), 81 FR 6908 (February 3 [sic],
mstockstill on DSK4VPTVN1PROD with NOTICES

The Exchange proposes to modify the quality and increased transaction
2016) (SR–Arca–2–16) (immediate effectiveness
NYSE Arca Options Fee Schedule (‘‘Fee filing adopting rules relating to ByRDs). ByRDs are volume that results from the anticipated
Schedule’’) to address how the European-style option contracts on individual increase in order flow directed to the
stocks, exchange-traded funds (‘‘ETFs’’) and Index- Exchange will benefit all market
43 17
Linked Securities that have a fixed return in cash
CFR 200.30–3(a)(12). based on a set strike price; satisfy specified listing
1 15 U.S.C. 78s(b)(1). 5 15 U.S.C. 78f(b).
criteria; and may only be excercised at expiration
2 15 U.S.C. 78a. 6 15 U.S.C. 78f(b)(4) and (5).
pursuant to the Rules of the Options Clearing
3 17 CFR 240.19b–4. Corporation (the ‘‘OCC’’). 7 15 U.S.C. 78f(b)(8).

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12776 Federal Register / Vol. 81, No. 47 / Thursday, March 10, 2016 / Notices

participants and improve competition Paper Comments 27, 1978, the Foreign Affairs Reform and
on the Exchange. • Send paper comments in triplicate Restructuring Act of 1998 (112 Stat.
The Exchange notes that it operates in to Secretary, Securities and Exchange 2681, et seq.; 22 U.S.C. 6501 note, et
a highly competitive market in which Commission, 100 F Street NE., seq.), Delegation of Authority No. 234 of
market participants can readily favor Washington, DC 20549–1090. October 1, 1999, Delegation of Authority
competing venues. In such an No. 236–3 of August 28, 2000 (and, as
environment, the Exchange must All submissions should refer to File No. appropriate, Delegation of Authority No.
continually review, and consider SR–NYSEArca–2016–40. This file 257–1 of December 11, 2015), I hereby
adjusting, its fees and credits to remain number should be included on the determine that the objects to be
competitive with other exchanges. For subject line if email is used. To help the included in the exhibition ‘‘Agnes
the reasons described above, the Commission process and review your Martin,’’ imported from abroad for
Exchange believes that the proposed comments more efficiently, please use temporary exhibition within the United
rule change reflects this competitive only one method. The Commission will States, are of cultural significance. The
environment. post all comments on the Commission’s objects are imported pursuant to loan
Internet Web site (http://www.sec.gov/ agreements with the foreign owners or
C. Self-Regulatory Organization’s rules/sro.shtml). Copies of the custodians. I also determine that the
Statement on Comments on the submission, all subsequent exhibition or display of the exhibit
Proposed Rule Change Received From amendments, all written statements objects at the Los Angeles County
Members, Participants, or Others with respect to the proposed rule Museum of Art, Los Angeles, California,
No written comments were solicited change that are filed with the from on or about April 24, 2016, until
or received with respect to the proposed Commission, and all written on or about September 11, 2016, at the
rule change. communications relating to the Solomon R. Guggenheim Museum, New
proposed rule change between the York, New York, from on or about
III. Date of Effectiveness of the Commission and any person, other than
Proposed Rule Change and Timing for October 7, 2016, until on or about
those that may be withheld from the January 11, 2017, and at possible
Commission Action public in accordance with the additional exhibitions or venues yet to
The foregoing rule change is effective provisions of 5 U.S.C. 552, will be be determined, is in the national
upon filing pursuant to section available for Web site viewing and interest. I have ordered that Public
19(b)(3)(A) 8 of the Act and printing in the Commission’s Public Notice of these Determinations be
subparagraph (f)(2) of Rule 19b–4 9 Reference Room, 100 F Street NE., published in the Federal Register.
thereunder, because it establishes a due, Washington, DC 20549 on official
FOR FURTHER INFORMATION CONTACT: For
fee, or other charge imposed by the business days between the hours of
further information, including a list of
Exchange. 10:00 a.m. and 3:00 p.m. Copies of such
the imported objects, contact the Office
At any time within 60 days of the filing also will be available for
of Public Diplomacy and Public Affairs
filing of such proposed rule change, the inspection and copying at the principal
in the Office of the Legal Adviser, U.S.
Commission summarily may office of the Exchange. All comments
Department of State (telephone: 202–
temporarily suspend such rule change if received will be posted without change;
632–6471; email: section2459@
it appears to the Commission that such the Commission does not edit personal
state.gov). The mailing address is U.S.
action is necessary or appropriate in the identifying information from
Department of State, L/PD, SA–5, Suite
public interest, for the protection of submissions. You should submit only
5H03, Washington, DC 20522–0505.
investors, or otherwise in furtherance of information that you wish to make
the purposes of the Act. If the available publicly. All submissions Dated: March 3, 2016.
Commission takes such action, the should refer to File No. SR–NYSEArca– Mark Taplin,
Commission shall institute proceedings 2016–40, and should be submitted on or Deputy Assistant Secretary for Policy, Bureau
under section 19(b)(2)(B) 10 of the Act to before March 31, 2016. of Educational and Cultural Affairs,
determine whether the proposed rule Department of State.
For the Commission, by the Division of
change should be approved or Trading and Markets, pursuant to delegated [FR Doc. 2016–05536 Filed 3–9–16; 8:45 am]
disapproved. authority.11 BILLING CODE 4710–05–P
Brent J. Fields,
IV. Solicitation of Comments
Secretary.
Interested persons are invited to DEPARTMENT OF STATE
[FR Doc. 2016–05324 Filed 3–9–16; 8:45 am]
submit written data, views, and [Public Notice: 9468]
BILLING CODE 8011–01–P
arguments concerning the foregoing,
including whether the proposed rule In the Matter of the Review of the
change is consistent with the Act. Designation of the Palestine Liberation
Comments may be submitted by any of DEPARTMENT OF STATE
Front (PLF) (and other aliases) as a
the following methods: [Public Notice: 9470] Foreign Terrorist Organization
Electronic Comments Pursuant to Section 219 of the
Culturally Significant Objects Imported Immigration and Nationality Act, as
• Use the Commission’s Internet for Exhibition Determinations: ‘‘Agnes Amended
comment form (http://www.sec.gov/ Martin’’ Exhibition
mstockstill on DSK4VPTVN1PROD with NOTICES

rules/sro.shtml); or Based upon a review of the
• Send an email to rule-comments@ SUMMARY: Notice is hereby given of the Administrative Record assembled
sec.gov. Please include File No. SR– following determinations: Pursuant to pursuant to Section 219(a)(4)(C) of the
NYSEArca–2016–40 on the subject line. the authority vested in me by the Act of Immigration and Nationality Act, as
October 19, 1965 (79 Stat. 985; 22 U.S.C. amended (8 U.S.C. 1189(a)(4)(C))
8 15 U.S.C. 78s(b)(3)(A). 2459), Executive Order 12047 of March (‘‘INA’’), and in consultation with the
9 17 CFR 240.19b–4(f)(2). Attorney General and the Secretary of
10 15 U.S.C. 78s(b)(2)(B). 11 17 CFR 200.30–3(a)(12). the Treasury, I conclude that the

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Document Created: 2018-02-02 15:12:18
Document Modified: 2018-02-02 15:12:18
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		81 FR 12775