81 FR 22676 - 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 81, Issue 74 (April 18, 2016)
Federal Register Volume 81, Issue 74 (April 18, 2016)
| Page Range | 22676-22678 | |
| FR Document | 2016-08819 |
[Federal Register Volume 81, Number 74 (Monday, April 18, 2016)] [Notices] [Pages 22676-22678] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-08819] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-77588; File No. SR-NYSEArca-2016-54] 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 April 12, 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 31, 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. --------------------------------------------------------------------------- \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 the 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 fee changes effective April 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 Exchange proposes to amend the Fee Schedule as follows: Routing Fees The Exchange proposes to modify the fees that it charges for routing orders to other market centers. Currently, for the Exchange's Tier 1 and Tier 2 customers, the Exchange charges the following routing fees:$0.0027 per share in Tape A Securities for orders routed outside the Book to the NYSE; $0.0027 per share in Tape A Securities for Primary Only Plus (``PO+'') Orders \4\ routed to the NYSE that remove liquidity; --------------------------------------------------------------------------- \4\ A PO+ Order is a Primary Only Order (i.e., a market or limit order that is to be routed to the primary market) that is entered for participation in the primary market, other than for participation in the primary market opening or primary market reopening. See NYSE Arca Equities Rule 7.31(f)(1)(C). --------------------------------------------------------------------------- $0.0030 per share in Tape B Securities for orders routed outside the Book to any away market center; $0.0028 per share in Tape B Securities for Primary Only (``PO'') Orders \5\ and PO+ Orders routed to NYSE MKT that remove liquidity from the NYSE MKT Book; --------------------------------------------------------------------------- \5\ A PO Order is a market or limit [sic] that is routed to the primary, listing market, without sweeping the NYSE Arca book. See NYSE Arca Equities Rule 7.31(f)(1). See also NYSE Arca Equities Rule 7.31P(f)(1). --------------------------------------------------------------------------- $0.0030 per share in Tape B Securities for PO+ Orders routed outside the Book to NASDAQ; $0.0030 per share in Tape A and Tape C Securities for orders routed outside the Book to any away market center other than NYSE; and $0.0030 per share in Tape A and Tape C Securities for PO+ Orders routed outside the Book to NASDAQ. [[Page 22677]] For Tier 3 customers, the Exchange charges the following routing fees: $0.0027 per share in Tape A Securities for orders routed outside the Book to the NYSE; $0.0030 per share in Tape B Securities for orders routed outside the Book to any away market center; and $0.0030 per share in Tape A and Tape C Securities for orders routed outside the Book to any away market center. The Exchange proposes to modify the above routing fees by adopting a uniform fee of $0.0030 per share for Tier 1, Tier 2 and Tier 3 customers in Tape A, Tape B and Tape C Securities for orders that remove liquidity, including PO and PO+ Orders, that are routed outside the Book to any away market center. Currently, for non-tier customers (i.e., Basic Rates), the Exchange charges the following routing fees: $0.0030 per share in Tape A Securities for orders routed outside the Book to any away market center other than NYSE; $0.0029 per share in Tape A Securities for orders routed outside the Book to the NYSE; $0.0027 per share in Tape A Securities for PO+ Orders routed to the NYSE that remove liquidity; $0.0035 per share in Tape B Securities for orders routed outside the Book to any away market center; $0.0028 per share in Tape B Securities for PO and PO+ Orders routed to NYSE MKT that remove liquidity from the NYSE MKT Book; and $0.0035 per share in Tape C Securities for orders routed outside the Book to any away market center. The Exchange proposes to modify the above routing fees by adopting a uniform fee of $0.0035 per share for Basic Rates customers in Tape A, Tape B and Tape C Securities for orders that remove liquidity, including PO and PO+ Orders, that are routed outside the Book to any away market center. MPL Orders Currently, the Exchange provides credits under Tier 1, Tier 2 and Basic Rates for Mid-Point Passive Liquidity (``MPL'') Orders that provide liquidity.\6\ The Exchange provides different levels of credits based on the Average Daily Volume (``ADV'') of provided liquidity in MPL Orders for Tape A, Tape B and Tape C Securities combined (``MPL Adding ADV''). For ETP Holders and Market Makers that have MPL Adding ADV during the billing month of at least 3 million shares, the Exchange provides a credit of $0.0015 per share for Tape A Securities, $0.0020 per share for Tape B Securities and $0.0025 per share for Tape C Securities.\7\ --------------------------------------------------------------------------- \6\ An MPL Order is a limit order priced at the midpoint of the Protected Best Bid and Offer (``PBBO'') and not displayed. See Rule 7.31(d)(4). An MPL Order on Pillar is a limit order that is not displayed and does not route, with a working price at the midpoint of the PBBO. See Rule 7.31P(d)(3). \7\ ETP Holders and Market Makers with MPL Adding ADV during the billing month of at least 1.5 million shares but less than 3 million shares are provided a credit of $0.0015 per share for Tape A, Tape B and Tape C Securities. ETP Holders and Market Makers with MPL Adding ADV during the billing month of less than 1.5 million shares are provided a credit of $0.0010 per share for Tape A, Tape B and Tape C Securities. See Fee Schedule. --------------------------------------------------------------------------- The Exchange proposes to modify the per share credit payable under Tier 1, Tier 2 and Basic Rates from $0.0025 per share to $0.0020 per share for MPL Orders that provide liquidity in Tape C Securities for ETP Holders and Market Makers that have MPL Adding ADV during the billing month of at least 3 million shares. The Exchange does not propose to make any other change to credits for MPL Orders. Non-Substantive Changes to the Fee Schedule The Exchange recently amended the Fee Schedule to reflect the migration of securities to Pillar, the Exchange's new trading technology platform.\8\ The Exchange proposes to make two non- substantive changes to the Fee Schedule that that [sic] the Exchange intended to make in the Pillar Fee Filing but inadvertently failed to do so. First, in the section for Tier 2 fees, under Tape B Securities, the Exchange proposes to add a second asterisk (``*'') so that the footnote for Market Order Auction appears as ``**Market Order Auction in [sic] named Core Open Auction in Pillar.'' Second, in the Pillar Fee Filing, the Exchange noted that Mid-Point Passive Liquidity Order is named Mid-Point Liquidity Order on Pillar. In connection with that name change, the Exchange further noted that orders designated as retail orders for securities traded on Pillar would need to meet the requirements of Rule 7.44P(a)(3). The Exchange proposes to add the reference to Rule 7.44P(a)(3) in the section for Basic Rates, under Tape C Securities. --------------------------------------------------------------------------- \8\ See Securities Exchange Act Release No. 74124 [sic] (February 12, 2016), 81 FR 8548 (February 19, 2016) (SR-NYSEArca- 2016-18) (``Pillar Fee Filing''). --------------------------------------------------------------------------- The proposed changes are not otherwise intended to address any other issues, and the Exchange is not aware of any significant problems that market participants 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,\9\ in general, and furthers the objectives of sections 6(b)(4) and (5) of the Act,\10\ 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. --------------------------------------------------------------------------- \9\ 15 U.S.C. 78f(b). \10\ 15 U.S.C. 78f(b)(4) and (5). --------------------------------------------------------------------------- The Exchange believes that the proposed change to adopt uniform routing fees for Tier 1, Tier 2, Tier 3 and Basic Rate customers in Tape A, Tape B and Tape C Securities for orders that remove liquidity, including PO and PO+ Orders, that are routed outside the Book to any away market center is equitable and not unfairly discriminatory because it will standardize the routing fee, meaning that the fee would apply uniformly within pricing tiers and all similarly situated ETP Holders and Market Makers would be subject to the same fee. This aspect of the proposed change would therefore result in a more streamlined Fee Schedule. In addition, the Exchange believes the decrease in the per share credit payable under Tier 1, Tier 2 and Basic Rates for MPL Orders that provide liquidity in Tape C Securities for ETP Holders and Market Makers that have MPL Adding ADV during the billing month of at least 3 million shares is reasonable as it is comparable to the tiered credit available on the NASDAQ Stock Market (``NASDAQ'') for midpoint liquidity, which is currently $0.0017 per share for Tape C Securities when a firm adds greater than 3 million shares of midpoint liquidity.\11\ The Exchange also believes that the proposed change is equitable and not unfairly discriminatory because the proposed credit would be applicable to all market participants that use MPL Orders and meet the requirements for the credit on the Exchange and each such participant would be subject to the same credit. --------------------------------------------------------------------------- \11\ See NASDAQ Pricing at http://nasdaqtrader.com/Trader.aspx?id=PriceListTrading2. --------------------------------------------------------------------------- The Exchange believes that the proposed non-substantive changes to the Fee Schedule are reasonable, equitable and not unfairly discriminatory because the changes are designed to make the Fee Schedule more logical and comprehensive, and therefore easier for market participants to navigate and digest, which is in the public interest. [[Page 22678]] 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. For the foregoing 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 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. In particular, the routing fees would not place a burden on competition because the Exchange is standardizing the fee so that each participant would pay a uniform fee. Further, the proposed change to credits applicable to MPL Orders would also not place a burden on competition as the modified credit is comparable to the level of credit for Tape C Securities provided by at least one other exchange.\13\ --------------------------------------------------------------------------- \12\ 15 U.S.C. 78f(b)(8). \13\ See supra, note 11. --------------------------------------------------------------------------- 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 this proposal 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) \14\ of the Act and subparagraph (f)(2) of Rule 19b-4 \15\ thereunder, because it establishes a due, fee, or other charge imposed by the Exchange. --------------------------------------------------------------------------- \14\ 15 U.S.C. 78s(b)(3)(A). \15\ 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) \16\ of the Act to determine whether the proposed rule change should be approved or disapproved. --------------------------------------------------------------------------- \16\ 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 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-2016-54 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 20549-1090. All submissions should refer to File Number SR-NYSEArca-2016-54. This file number should be included on the subject line if email is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for Web site viewing and printing in the Commission's Public Reference Room, 100 F Street NE., Washington, DC 20549 on official business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of such filing also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR-NYSEArca-2016-54, and should be submitted on or before May 9, 2016. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\17\ --------------------------------------------------------------------------- \17\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2016-08819 Filed 4-15-16; 8:45 am] BILLING CODE 8011-01-P
![22676 Federal Register / Vol. 81, No. 74 / Monday, April 18, 2016 / Notices
OPRA put the revised description of office of OPRA. All comments received II. Self-Regulatory Organization’s
reduced rate Redistribution Fee into will be posted without change; the Statement of the Purpose of, and
effect as of January 1, 2016. Commission does not edit personal Statutory Basis for, the Proposed Rule
identifying information from Change
III. Solicitation of Comments
submissions. You should submit only In its filing with the Commission, the
Interested persons are invited to information that you wish to make
submit written data, views, and self-regulatory organization included
available publicly. All submissions statements concerning the purpose of,
arguments concerning the foregoing,
should refer to File Number SR–OPRA– and basis for, the proposed rule change
including whether the OPRA Plan
amendment is consistent with the Act.6 2015–03 and should be submitted on or and discussed any comments it received
Comments may be submitted by any of before May 9, 2016. on the proposed rule change. The text
the following methods: By the Commission. of those statements may be examined at
the places specified in Item IV below.
Electronic Comments Robert W. Errett,
The Exchange has prepared summaries,
Deputy Secretary.
• Use the Commission’s Internet set forth in sections A, B, and C below,
comment form (http://www.sec.gov/ [FR Doc. 2016–08817 Filed 4–15–16; 8:45 am] of the most significant parts of such
rules/sro.shtml); or BILLING CODE 8011–01–P statements.
• Send an email to rule-comments@ A. Self-Regulatory Organization’s
sec.gov. Please include File No. SR–
SECURITIES AND EXCHANGE Statement of the Purpose of, and
OPRA–2015–03 on the subject line.
Statutory Basis for, the Proposed Rule
COMMISSION
Paper Comments Change
• Send paper comments in triplicate [Release No. 34–77588; File No. SR– 1. Purpose
to Secretary, Securities and Exchange NYSEArca–2016–54] The Exchange proposes to amend the
Commission, 100 F Street NE.,
Washington, DC 20549–1090. Fee Schedule as follows:
Self-Regulatory Organizations; NYSE
All submissions should refer to File Arca, Inc.; Notice of Filing and Routing Fees
Number SR–OPRA–2015–03. This file Immediate Effectiveness of Proposed The Exchange proposes to modify the
number should be included on the Rule Change Amending the NYSE Arca fees that it charges for routing orders to
subject line if email is used. To help the Equities Schedule of Fees and other market centers. Currently, for the
Commission process and review your Charges for Exchange Services Exchange’s Tier 1 and Tier 2 customers,
comments more efficiently, please use the Exchange charges the following
only one method. The Commission will April 12, 2016. routing fees:
post all comments on the Commission’s • $0.0027 per share in Tape A
Pursuant to section 19(b)(1) 1 of the
Internet Web site (http://www.sec.gov/ Securities for orders routed outside the
Securities Exchange Act of 1934 (the
rules/sro.shtml). Copies of the Book to the NYSE;
submission, all subsequent ‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that, on March • $0.0027 per share in Tape A
amendments, all written statements Securities for Primary Only Plus
with respect to the OPRA Plan 31, 2016, NYSE Arca, Inc. (the
‘‘Exchange’’ or ‘‘NYSE Arca’’) filed with (‘‘PO+’’) Orders 4 routed to the NYSE
amendment that are filed with the that remove liquidity;
the Securities and Exchange
Commission, and all written • $0.0030 per share in Tape B
communications relating to the OPRA Commission (the ‘‘Commission’’) the
Securities for orders routed outside the
Plan amendment between the proposed rule change as described in Book to any away market center;
Commission and any person, other than Items I, II, and III below, which Items • $0.0028 per share in Tape B
those that may be withheld from the have been prepared by the self- Securities for Primary Only (‘‘PO’’)
public in accordance with the regulatory organization. The Orders 5 and PO+ Orders routed to
provisions of 5 U.S.C. 552, will be Commission is publishing this notice to NYSE MKT that remove liquidity from
available for Web site viewing and solicit comments on the proposed rule the NYSE MKT Book;
printing in the Commission’s Public change from interested persons. • $0.0030 per share in Tape B
Reference Room, 100 F Street NE., Securities for PO+ Orders routed
Washington, DC 20549, on official I. Self-Regulatory Organization’s
outside the Book to NASDAQ;
Statement of the Terms of the Substance
business days between the hours of • $0.0030 per share in Tape A and
10:00 a.m. and 3:00 p.m. Copies of such of the Proposed Rule Change Tape C Securities for orders routed
filing also will be available for The Exchange proposes to amend the outside the Book to any away market
inspection and copying at the principal center other than NYSE; and
NYSE Arca Equities Schedule of Fees
and Charges for Exchange Services • $0.0030 per share in Tape A and
6 Pursuant to Rule 608(b)(3)(iii) of Regulation
(‘‘Fee Schedule’’). The Exchange Tape C Securities for PO+ Orders routed
NMS, the Commission may summarily abrogate an
outside the Book to NASDAQ.
immediately effective NMS Plan amendment within proposes to implement the fee changes
sixty days of its filing and require refiling and effective April 1, 2016. The proposed 4 A PO+ Order is a Primary Only Order (i.e., a
approval of the amendment if it appears to the
Commission that such action is necessary or rule change is available on the market or limit order that is to be routed to the
appropriate in the public interest, for the protection Exchange’s Web site at www.nyse.com, primary market) that is entered for participation in
mstockstill on DSK4VPTVN1PROD with NOTICES
of investors, or the maintenance of fair and orderly at the principal office of the Exchange, the primary market, other than for participation in
markets, to remove impediments to, and perfect the the primary market opening or primary market
mechanisms of, a national market system, or
and at the Commission’s Public reopening. See NYSE Arca Equities Rule
otherwise in furtherance of the purposes of the Reference Room. 7.31(f)(1)(C).
Securities Exchange Act of 1934. See 17 CFR 5 A PO Order is a market or limit [sic] that is
242.608(b)(3)(iii). The abrogation period for the 1 15
routed to the primary, listing market, without
U.S.C. 78s(b)(1).
OPRA Plan amendment has expired. Interested sweeping the NYSE Arca book. See NYSE Arca
2 15 U.S.C. 78a.
persons may nevertheless submit written comments Equities Rule 7.31(f)(1). See also NYSE Arca
on the OPRA Plan amendment. 3 17 CFR 240.19b–4. Equities Rule 7.31P(f)(1).
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For Tier 3 customers, the Exchange Adding ADV’’). For ETP Holders and 2. Statutory Basis
charges the following routing fees: Market Makers that have MPL Adding The Exchange believes that the
• $0.0027 per share in Tape A ADV during the billing month of at least proposed rule change is consistent with
Securities for orders routed outside the 3 million shares, the Exchange provides Section 6(b) of the Act,9 in general, and
Book to the NYSE; a credit of $0.0015 per share for Tape A furthers the objectives of sections 6(b)(4)
• $0.0030 per share in Tape B Securities, $0.0020 per share for Tape B and (5) of the Act,10 in particular,
Securities for orders routed outside the Securities and $0.0025 per share for because it provides for the equitable
Book to any away market center; and Tape C Securities.7
• $0.0030 per share in Tape A and allocation of reasonable dues, fees, and
The Exchange proposes to modify the other charges among its members,
Tape C Securities for orders routed
per share credit payable under Tier 1, issuers and other persons using its
outside the Book to any away market
center. Tier 2 and Basic Rates from $0.0025 per facilities and does not unfairly
The Exchange proposes to modify the share to $0.0020 per share for MPL discriminate between customers,
above routing fees by adopting a Orders that provide liquidity in Tape C issuers, brokers or dealers.
uniform fee of $0.0030 per share for Tier Securities for ETP Holders and Market The Exchange believes that the
1, Tier 2 and Tier 3 customers in Tape Makers that have MPL Adding ADV proposed change to adopt uniform
A, Tape B and Tape C Securities for during the billing month of at least 3 routing fees for Tier 1, Tier 2, Tier 3 and
orders that remove liquidity, including million shares. The Exchange does not Basic Rate customers in Tape A, Tape B
PO and PO+ Orders, that are routed propose to make any other change to and Tape C Securities for orders that
outside the Book to any away market credits for MPL Orders. remove liquidity, including PO and PO+
center. Orders, that are routed outside the Book
Non-Substantive Changes to the Fee to any away market center is equitable
Currently, for non-tier customers (i.e., Schedule
Basic Rates), the Exchange charges the and not unfairly discriminatory because
following routing fees: The Exchange recently amended the it will standardize the routing fee,
• $0.0030 per share in Tape A Fee Schedule to reflect the migration of meaning that the fee would apply
Securities for orders routed outside the securities to Pillar, the Exchange’s new uniformly within pricing tiers and all
Book to any away market center other trading technology platform.8 The similarly situated ETP Holders and
than NYSE; Exchange proposes to make two non- Market Makers would be subject to the
• $0.0029 per share in Tape A substantive changes to the Fee Schedule same fee. This aspect of the proposed
Securities for orders routed outside the that that [sic] the Exchange intended to change would therefore result in a more
Book to the NYSE; make in the Pillar Fee Filing but streamlined Fee Schedule.
• $0.0027 per share in Tape A inadvertently failed to do so. First, in In addition, the Exchange believes the
Securities for PO+ Orders routed to the the section for Tier 2 fees, under Tape decrease in the per share credit payable
NYSE that remove liquidity; B Securities, the Exchange proposes to under Tier 1, Tier 2 and Basic Rates for
• $0.0035 per share in Tape B add a second asterisk (‘‘*’’) so that the MPL Orders that provide liquidity in
Securities for orders routed outside the footnote for Market Order Auction Tape C Securities for ETP Holders and
Book to any away market center; Market Makers that have MPL Adding
appears as ‘‘**Market Order Auction in
• $0.0028 per share in Tape B [sic] named Core Open Auction in
ADV during the billing month of at least
Securities for PO and PO+ Orders 3 million shares is reasonable as it is
Pillar.’’ Second, in the Pillar Fee Filing,
routed to NYSE MKT that remove comparable to the tiered credit available
the Exchange noted that Mid-Point
liquidity from the NYSE MKT Book; and on the NASDAQ Stock Market
Passive Liquidity Order is named Mid-
• $0.0035 per share in Tape C (‘‘NASDAQ’’) for midpoint liquidity,
Point Liquidity Order on Pillar. In
Securities for orders routed outside the which is currently $0.0017 per share for
connection with that name change, the
Book to any away market center. Tape C Securities when a firm adds
The Exchange proposes to modify the Exchange further noted that orders
greater than 3 million shares of
above routing fees by adopting a designated as retail orders for securities
midpoint liquidity.11 The Exchange also
uniform fee of $0.0035 per share for traded on Pillar would need to meet the
believes that the proposed change is
Basic Rates customers in Tape A, Tape requirements of Rule 7.44P(a)(3). The
equitable and not unfairly
B and Tape C Securities for orders that Exchange proposes to add the reference discriminatory because the proposed
remove liquidity, including PO and PO+ to Rule 7.44P(a)(3) in the section for credit would be applicable to all market
Orders, that are routed outside the Book Basic Rates, under Tape C Securities. participants that use MPL Orders and
to any away market center. The proposed changes are not meet the requirements for the credit on
otherwise intended to address any other the Exchange and each such participant
MPL Orders
issues, and the Exchange is not aware of would be subject to the same credit.
Currently, the Exchange provides any significant problems that market The Exchange believes that the
credits under Tier 1, Tier 2 and Basic participants would have in complying proposed non-substantive changes to
Rates for Mid-Point Passive Liquidity with the proposed changes. the Fee Schedule are reasonable,
(‘‘MPL’’) Orders that provide liquidity.6 equitable and not unfairly
The Exchange provides different levels 7 ETP Holders and Market Makers with MPL discriminatory because the changes are
of credits based on the Average Daily Adding ADV during the billing month of at least 1.5 designed to make the Fee Schedule
Volume (‘‘ADV’’) of provided liquidity million shares but less than 3 million shares are
provided a credit of $0.0015 per share for Tape A,
more logical and comprehensive, and
mstockstill on DSK4VPTVN1PROD with NOTICES
in MPL Orders for Tape A, Tape B and Tape B and Tape C Securities. ETP Holders and therefore easier for market participants
Tape C Securities combined (‘‘MPL Market Makers with MPL Adding ADV during the to navigate and digest, which is in the
billing month of less than 1.5 million shares are public interest.
6 An MPL Order is a limit order priced at the provided a credit of $0.0010 per share for Tape A,
midpoint of the Protected Best Bid and Offer Tape B and Tape C Securities. See Fee Schedule.
9 15 U.S.C. 78f(b).
(‘‘PBBO’’) and not displayed. See Rule 7.31(d)(4). 8 See Securities Exchange Act Release No. 74124
10 15 U.S.C. 78f(b)(4) and (5).
An MPL Order on Pillar is a limit order that is not [sic] (February 12, 2016), 81 FR 8548 (February 19,
displayed and does not route, with a working price 2016) (SR–NYSEArca–2016–18) (‘‘Pillar Fee 11 See NASDAQ Pricing at http://nasdaqtrader.
at the midpoint of the PBBO. See Rule 7.31P(d)(3). Filing’’). com/Trader.aspx?id=PriceListTrading2.
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Finally, the Exchange believes that it it appears to the Commission that such submissions. You should submit only
is subject to significant competitive action is necessary or appropriate in the information that you wish to make
forces, as described below in the public interest, for the protection of available publicly. All submissions
Exchange’s statement regarding the investors, or otherwise in furtherance of should refer to File Number SR–
burden on competition. For these the purposes of the Act. If the NYSEArca–2016–54, and should be
reasons, the Exchange believes that the Commission takes such action, the submitted on or before May 9, 2016.
proposal is consistent with the Act. Commission shall institute proceedings For the Commission, by the Division of
For the foregoing reasons, the under section 19(b)(2)(B) 16 of the Act to Trading and Markets, pursuant to delegated
Exchange believes that the proposal is determine whether the proposed rule authority.17
consistent with the Act. change should be approved or Robert W. Errett,
disapproved. Deputy Secretary.
B. Self-Regulatory Organization’s
Statement on Burden on Competition IV. Solicitation of Comments [FR Doc. 2016–08819 Filed 4–15–16; 8:45 am]
BILLING CODE 8011–01–P
In accordance with section 6(b)(8) of Interested persons are invited to
the Act,12 the Exchange believes that the submit written data, views, and
proposed rule change would not impose arguments concerning the foregoing,
SECURITIES AND EXCHANGE
any burden on competition that is not including whether the proposed rule
COMMISSION
necessary or appropriate in furtherance change is consistent with the Act.
of the purposes of the Act. In particular, Comments may be submitted by any of [Release No. 34–77590; File No. SR–BX–
the routing fees would not place a the following methods: 2016–020]
burden on competition because the Electronic Comments Self-Regulatory Organizations;
Exchange is standardizing the fee so that
each participant would pay a uniform • Use the Commission’s Internet NASDAQ BX, Inc.; Notice of Filing and
comment form (http://www.sec.gov/ Immediate Effectiveness of Proposed
fee. Further, the proposed change to Rule Change To Amend Fees Under
credits applicable to MPL Orders would rules/sro.shtml); or
• Send an email to rule-comments@ Rule 7018(a)
also not place a burden on competition
sec.gov. Please include File Number SR–
as the modified credit is comparable to April 12, 2016.
NYSEArca–2016–54 on the subject line.
the level of credit for Tape C Securities Pursuant to Section 19(b)(1) of the
provided by at least one other Paper Comments Securities Exchange Act of 1934
exchange.13 • Send paper comments in triplicate (‘‘Act’’),1 and Rule 19b–4 thereunder,2
The Exchange notes that it operates in to Brent J. Fields, Secretary, Securities notice is hereby given that on March 30,
a highly competitive market in which and Exchange Commission, 100 F Street 2016, NASDAQ BX, Inc. (‘‘BX’’ or
market participants can readily favor NE., Washington, DC 20549–1090. ‘‘Exchange’’) filed with the Securities
competing venues. In such an and Exchange Commission (‘‘SEC’’ or
All submissions should refer to File
environment, the Exchange must ‘‘Commission’’) the proposed rule
Number SR–NYSEArca–2016–54. This
continually review, and consider change as described in Items I, II, and
file number should be included on the
adjusting, its fees and credits to remain III below, which Items have been
subject line if email is used. To help the
competitive with other exchanges. For prepared by the Exchange. The
Commission process and review your
the reasons described above, the Commission is publishing this notice to
comments more efficiently, please use
Exchange believes that this proposal solicit comments on the proposed rule
only one method. The Commission will
promotes a competitive environment. change from interested persons.
post all comments on the Commission’s
C. Self-Regulatory Organization’s Internet Web site (http://www.sec.gov/ I. Self-Regulatory Organization’s
Statement on Comments on the rules/sro.shtml). Copies of the Statement of the Terms of Substance of
Proposed Rule Change Received From submission, all subsequent the Proposed Rule Change
Members, Participants, or Others amendments, all written statements The Exchange proposes to amend the
No written comments were solicited with respect to the proposed rule Exchange’s transaction fees at Rule
or received with respect to the proposed change that are filed with the 7018(a) relating to charges assessed for
rule change. Commission, and all written providing liquidity through the
communications relating to the NASDAQ OMX BX Equities System in
III. Date of Effectiveness of the proposed rule change between the securities priced at $1 or more per share
Proposed Rule Change and Timing for Commission and any person, other than that it trades to: (i) Eliminate Qualified
Commission Action those that may be withheld from the Market Maker-based criteria and adopt
The foregoing rule change is effective public in accordance with the new Consolidated Volume-based criteria
upon filing pursuant to section provisions of 5 U.S.C. 552, will be required to receive the $0.0014 per
19(b)(3)(A) 14 of the Act and available for Web site viewing and share executed charge; and (ii) decrease
subparagraph (f)(2) of Rule 19b–4 15 printing in the Commission’s Public the $0.0018 per share executed charge,
thereunder, because it establishes a due, Reference Room, 100 F Street NE., and amend the qualification criteria
fee, or other charge imposed by the Washington, DC 20549 on official currently required to receive the charge,
Exchange. business days between the hours of for a displayed order entered by a
At any time within 60 days of the 10:00 a.m. and 3:00 p.m. Copies of such member.
mstockstill on DSK4VPTVN1PROD with NOTICES
filing of such proposed rule change, the filing also will be available for While these amendments are effective
Commission summarily may inspection and copying at the principal upon filing, the Exchange has
temporarily suspend such rule change if office of the Exchange. All comments designated the proposed amendments to
received will be posted without change; be operative on April 1, 2016.
12 15 U.S.C. 78f(b)(8). the Commission does not edit personal
13 See supra, note 11. identifying information from 17 17 CFR 200.30–3(a)(12).
14 15 U.S.C. 78s(b)(3)(A). 1 15 U.S.C. 78s(b)(1).
15 17 CFR 240.19b–4(f)(2). 16 15 U.S.C. 78s(b)(2)(B). 2 17 CFR 240.19b–4.
VerDate Sep<11>2014 17:54 Apr 15, 2016 Jkt 238001 PO 00000 Frm 00112 Fmt 4703 Sfmt 4703 E:\FR\FM\18APN1.SGM 18APN1](https://thefederalregister.org/doc/81_FR_22750/page/3.svg)
Document Created: 2016-04-16 01:45:58
Document Modified: 2016-04-16 01:45:58
| 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 22676 |
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