81 FR 14916 - 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 81, Issue 53 (March 18, 2016)

Page Range		14916-14917
FR Document		2016-06088
Federal Register, Volume 81 Issue 53 (Friday, March 18, 2016)
[Federal Register Volume 81, Number 53 (Friday, March 18, 2016)]
[Notices]
[Pages 14916-14917]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-06088]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-77359; File No. SR-NYSEArca-2016-39]


Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change Amending the NYSE 
Arca Options Fee Schedule

March 14, 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 8, 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 Substance 
of the Proposed Rule Change

    The Exchange proposes to amend the NYSE Arca Options Fee Schedule 
(``Fee Schedule'') to remove reference and information relating to Mini 
Options. The Exchange proposes to implement the fee change effective 
March 8, 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 the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The purpose of this filing is to remove reference and information 
relating to Mini Options, as the Exchange no longer lists or trades 
Mini Options and has no current plans to do so.
    The Exchange added rules relating to the listing of Mini Options 
(options overlying 10 shares of stock) in 2012 \4\ and later changed 
its Fee Schedule to address the treatment of Mini Options, including 
establishing transactions fees for these products.\5\ However, the 
Exchange no longer lists or trades Mini Option series, and has no 
current plans to do so.
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    \4\ See Securities Exchange Act Release No. 67948 (September 28, 
2012), 77 FR 60735 (October 4, 2012) (SR-NYSEArca-2012-64; SR-ISE-
2012-58).
    \5\ See Securities Exchange Act Release No. 69246 (March 27, 
2013), 78 FR 19784 (April 2, 2013) (SR-NYSEArca-2013-25).
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    Thus, the Exchange proposes to strip references, and charges 
related to, Mini Options from the Fee Schedule.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act,\6\ in general, and furthers the 
objectives of Sections 6(b)(4) and (5) of the Act,\7\ 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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    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f(b)(4) and (5).
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    The Exchange believes the proposed change is reasonable, equitable, 
and not unfairly discriminatory, as the Exchange no longer lists or 
trades Mini-option series and has no intention to do so at this time. 
Thus, removing outmoded references on the Fee Schedule would alleviate 
potential investor confusion and improve the clarity and transparency 
of the Fee Schedule. The proposed change is also reasonable, equitable 
and not unfairly discriminatory as it applies to all market 
participants.
    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,\8\ 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. As noted above, the proposed change is non-
competitive and is designed to provide additional clarity and greater 
transparency regarding the Exchange's fees.
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    \8\ 15 U.S.C. 78f(b)(8).
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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) \9\ of the Act and subparagraph (f)(2) of Rule 19b-
4 \10\ thereunder, because it establishes a due, fee, or other charge 
imposed by the Exchange.
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    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 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) \11\ of the Act to determine whether the proposed 
rule change should be approved or disapproved.
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    \11\ 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

[[Page 14917]]

Number SR-NYSEArca-2016-39 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-2016-39. 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-2016-39 and should 
be submitted on or before April 8, 2016.
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    \12\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12\
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-06088 Filed 3-17-16; 8:45 am]
 BILLING CODE 8011-01-P
14916 Federal Register / Vol. 81, No. 53 / Friday, March 18, 2016 / Notices

For the Commission, by the Division of The Exchange has prepared summaries, B. Self-Regulatory Organization’s
Trading and Markets, pursuant to delegated set forth in sections A, B, and C below, Statement on Burden on Competition
authority.11 of the most significant parts of such
Robert W. Errett, In accordance with Section 6(b)(8) of
statements.
Deputy Secretary.
the Act,8 the Exchange does not believe
A. Self-Regulatory Organization’s that the proposed rule change will
[FR Doc. 2016–06089 Filed 3–17–16; 8:45 am]
Statement of the Purpose of, and the impose any burden on competition that
BILLING CODE 8011–01–P
Statutory Basis for, the Proposed Rule is not necessary or appropriate in
Change furtherance of the purposes of the Act.
As noted above, the proposed change is
SECURITIES AND EXCHANGE 1. Purpose
non-competitive and is designed to
COMMISSION
The purpose of this filing is to remove provide additional clarity and greater
[Release No. 34–77359; File No. SR– reference and information relating to transparency regarding the Exchange’s
NYSEArca–2016–39] Mini Options, as the Exchange no longer fees.
lists or trades Mini Options and has no C. Self-Regulatory Organization’s
Self-Regulatory Organizations; NYSE
current plans to do so. Statement on Comments on the
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed The Exchange added rules relating to Proposed Rule Change Received From
Rule Change Amending the NYSE Arca the listing of Mini Options (options Members, Participants, or Others
Options Fee Schedule overlying 10 shares of stock) in 2012 4
and later changed its Fee Schedule to No written comments were solicited
March 14, 2016. address the treatment of Mini Options, or received with respect to the proposed
Pursuant to Section 19(b)(1) 1 of the including establishing transactions fees rule change.
Securities Exchange Act of 1934 (the for these products.5 However, the III. Date of Effectiveness of the
‘‘Act’’) 2 and Rule 19b–4 thereunder,3 Exchange no longer lists or trades Mini Proposed Rule Change and Timing for
notice is hereby given that, on March 8, Option series, and has no current plans Commission Action
2016, NYSE Arca, Inc. (the ‘‘Exchange’’ to do so.
or ‘‘NYSE Arca’’) filed with the The foregoing rule change is effective
Thus, the Exchange proposes to strip
Securities and Exchange Commission upon filing pursuant to Section
references, and charges related to, Mini
(the ‘‘Commission’’) the proposed rule 19(b)(3)(A) 9 of the Act and
Options from the Fee Schedule.
change as described in Items I, II, and subparagraph (f)(2) of Rule 19b–4 10
III below, which Items have been 2. Statutory Basis thereunder, because it establishes a due,
prepared by the self-regulatory fee, or other charge imposed by the
The Exchange believes that the
organization. The Commission is Exchange.
proposed rule change is consistent with
publishing this notice to solicit At any time within 60 days of the
Section 6(b) of the Act,6 in general, and
comments on the proposed rule change filing of such proposed rule change, the
furthers the objectives of Sections
from interested persons. Commission summarily may
6(b)(4) and (5) of the Act,7 in particular,
temporarily suspend such rule change if
I. Self-Regulatory Organization’s because it provides for the equitable
it appears to the Commission that such
Statement of the Terms of Substance of allocation of reasonable dues, fees, and
action is necessary or appropriate in the
the Proposed Rule Change other charges among its members,
public interest, for the protection of
issuers and other persons using its
The Exchange proposes to amend the investors, or otherwise in furtherance of
facilities and does not unfairly
NYSE Arca Options Fee Schedule (‘‘Fee the purposes of the Act. If the
discriminate between customers,
Schedule’’) to remove reference and Commission takes such action, the
issuers, brokers or dealers.
information relating to Mini Options. Commission shall institute proceedings
The Exchange believes the proposed under Section 19(b)(2)(B) 11 of the Act to
The Exchange proposes to implement change is reasonable, equitable, and not
the fee change effective March 8, 2016. determine whether the proposed rule
unfairly discriminatory, as the Exchange change should be approved or
The proposed rule change is available no longer lists or trades Mini-option
on the Exchange’s Web site at disapproved.
series and has no intention to do so at
www.nyse.com, at the principal office of this time. Thus, removing outmoded IV. Solicitation of Comments
the Exchange, and at the Commission’s references on the Fee Schedule would
Public Reference Room. Interested persons are invited to
alleviate potential investor confusion submit written data, views, and
II. Self-Regulatory Organization’s and improve the clarity and arguments concerning the foregoing,
Statement of the Purpose of, and transparency of the Fee Schedule. The including whether the proposed rule
Statutory Basis for, the Proposed Rule proposed change is also reasonable, change is consistent with the Act.
Change equitable and not unfairly Comments may be submitted by any of
discriminatory as it applies to all market the following methods:
In its filing with the Commission, the
participants.
self-regulatory organization included Electronic Comments
statements concerning the purpose of, For these reasons, the Exchange
and basis for, the proposed rule change believes that the proposal is consistent • Use the Commission’s Internet
with the Act.
asabaliauskas on DSK3SPTVN1PROD with NOTICES

and discussed any comments it received comment form (http://www.sec.gov/
on the proposed rule change. The text rules/sro.shtml); or
of those statements may be examined at 4 See Securities Exchange Act Release No. 67948
• Send an email to rule-
(September 28, 2012), 77 FR 60735 (October 4, comments@sec.gov. Please include File
the places specified in Item IV below. 2012) (SR–NYSEArca–2012–64; SR–ISE–2012–58).
5 See Securities Exchange Act Release No. 69246
11 17 CFR 200.30–3(a)(12). 8 15 U.S.C. 78f(b)(8).
(March 27, 2013), 78 FR 19784 (April 2, 2013) (SR–
1 15 U.S.C. 78s(b)(1). NYSEArca–2013–25). 9 15 U.S.C. 78s(b)(3)(A).
2 15 U.S.C. 78a. 6 15 U.S.C. 78f(b). 10 17 CFR 240.19b–4(f)(2).
3 17 CFR 240.19b–4. 7 15 U.S.C. 78f(b)(4) and (5). 11 15 U.S.C. 78s(b)(2)(B).

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Federal Register / Vol. 81, No. 53 / Friday, March 18, 2016 / Notices 14917

Number SR–NYSEArca–2016–39 on the SECURITIES AND EXCHANGE 2016. The current implementation
subject line. COMMISSION deadline is March 4, 2016.
In March 2015, the Commission
Paper Comments [Release No. 34–77356; File No. SR– approved Rule 967.1NY, which
NYSEMKT–2016–36]
provides a price protection risk
• Send paper comments in triplicate
Self-Regulatory Organizations; NYSE mechanism for Market Maker quotes.4
to Secretary, Securities and Exchange
MKT LLC; Notice of Filing and Rule 967.1NY provides two layers of
Commission, 100 F Street NE., price protection to incoming Market
Washington, DC 20549–1090. Immediate Effectiveness of Proposed
Rule Change To Extend the Deadline Maker quotes, rejecting those Market
All submissions should refer to File for Implementing Rule 967.1NY(a)(2) Maker quotes that exceed certain
Number SR–NYSEArca–2016–39. This and (3) parameters, as a risk mitigation tool.5
file number should be included on the The Exchange has implemented the first
subject line if email is used. To help the March 14, 2016. layer of price protection (the NBBO
Commission process and review your Pursuant to Section 19(b)(1) 1 of the Reasonability Check) and has until one
comments more efficiently, please use Securities Exchange Act of 1934 (the year from the date of the Approval
‘‘Act’’) 2 and Rule 19b–4 thereunder,3 Order to implement the second layer of
only one method. The Commission will
notice is hereby given that on March 4, protection (the Underlying Stock Price/
post all comments on the Commission’s 2016, NYSE MKT LLC (the ‘‘Exchange’’ Strike Price Check) pursuant to
Internet Web site (http://www.sec.gov/ or ‘‘NYSE MKT’’) filed with the Commentary .01 to Rule 967.1NY,
rules/sro.shtml). Copies of the Securities and Exchange Commission which is March 4, 2016 (the ‘‘March 4th
submission, all subsequent (the ‘‘Commission’’) the proposed rule Deadline’’).6
amendments, all written statements change as described in Items I and II Because the Exchange has not yet
with respect to the proposed rule below, which Items have been prepared implemented the Underlying Stock
change that are filed with the by the self-regulatory organization. The Price/Strike Price Check, the Exchange
Commission, and all written Commission is publishing this notice to proposes to modify Commentary .01 to
communications relating to the solicit comments on the proposed rule Rule 967.1NY to extend the March 4th
proposed rule change between the change from interested persons. Deadline to implement Rule
Commission and any person, other than 967.1NY(a)(2) and (3) until July 31,
I. Self-Regulatory Organization’s
those that may be withheld from the 2016. The Exchange has finalized the
Statement of the Terms of Substance of
public in accordance with the technology related to this aspect of the
the Proposed Rule Change
provisions of 5 U.S.C. 552, will be Rule and will be filing with the
available for Web site viewing and The Exchange proposes to extend the Commission a separate proposed rule
deadline for implementing Rule change to modify the Rule as it relates
printing in the Commission’s Public
967.1NY(a)(2) and (3) until July 31, to the Underlying Stock Price/Strike
Reference Room, 100 F Street NE.,
2016. The proposed rule change is Price Check. The Exchange believes the
Washington, DC 20549 on official available on the Exchange’s Web site at proposed extension would provide the
business days between the hours of www.nyse.com, at the principal office of Exchange with sufficient time to review
10:00 a.m. and 3:00 p.m. Copies of the the Exchange, and at the Commission’s the proposed modifications with the
filing also will be available for Public Reference Room. Commission prior to implementing the
inspection and copying at the principal rule, as modified.
office of the Exchange. All comments II. Self-Regulatory Organization’s
Finally, the Exchange believes that
received will be posted without change; Statement of the Purpose of, and
because the Underlying Stock Price/
the Commission does not edit personal Statutory Basis for, the Proposed Rule
Strike Price Check is an approved rule
identifying information from Change
of the Exchange, providing the
submissions. You should submit only In its filing with the Commission, the Exchange with additional time to
information that you wish to make self-regulatory organization included implement the Rule would ensure that
available publicly. All submissions statements concerning the purpose of,
should refer to File Number SR– and basis for, the proposed rule change 4 See Securities Exchange Act Release No. 74440

NYSEArca–2016–39 and should be and discussed any comments it received (March 4, 2015), 80 FR 12687 (March 10, 2015) (SR–
on the proposed rule change. The text NYSEMKT–2014–116) (Approval Order); see also
submitted on or before April 8, 2016. Securities Exchange Act Release No. 74017 (January
of those statements may be examined at 8, 2015), 80 FR 1979 (January 14, 2015) (SR–
For the Commission, by the Division of the places specified in Item IV below. NYSEMKT–2014–116) (Notice).
Trading and Markets, pursuant to delegated The Exchange has prepared summaries, 5 The first layer of price protection assesses
authority.12 set forth in sections A, B, and C below, incoming sell quotes against the NBB and incoming
Robert W. Errett, buy quotes against the NBO (the ‘‘NBBO Price
of the most significant parts of such Reasonability Check’’). Specifically, per Rule
Deputy Secretary. statements. 967.1NY(a)(1), provided that an NBBO is available,
[FR Doc. 2016–06088 Filed 3–17–16; 8:45 am] a Market Maker quote would be rejected if it is
A. Self-Regulatory Organization’s priced a specified dollar amount or percentage
BILLING CODE 8011–01–P Statement of the Purpose of, and the through the contra-side NBBO. The second layer of
Statutory Basis for, the Proposed Rule price protection assesses the price of call or put
bids against a specified benchmark (the
Change ‘‘Underlying Stock Price/Strike Price Check’’), per
asabaliauskas on DSK3SPTVN1PROD with NOTICES

1. Purpose Rule 967.1NY(a)(2) and (3). This second layer of
protection applies to bids in call options or put
The Exchange is proposing to extend options when (1) there is no NBBO available, for
the deadline for implementing Rule example, during pre-opening or prior to conducting
a re-opening after a trading halt, or (2) if the NBBO
967.1NY(a)(2) and (3) until July 31, is so wide as to not reflect an appropriate price for
the respective options series.
1 15 U.S.C. 78s(b)(1). 6 See Securities Exchange Act Release No. 75151
2 15 U.S.C. 78a. (June 11, 2015), 80 FR 34770 (June 17, 2015) (SR–
12 17 CFR 200.30–3(a)(12). 3 17 CFR 240.19b–4. NYSEMKT–2015–42).

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Document Created: 2018-02-02 15:14:03
Document Modified: 2018-02-02 15:14:03
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 14916