81 FR 23066 - 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 75 (April 19, 2016)
Federal Register Volume 81, Issue 75 (April 19, 2016)
| Page Range | 23066-23068 | |
| FR Document | 2016-08946 |
[Federal Register Volume 81, Number 75 (Tuesday, April 19, 2016)] [Notices] [Pages 23066-23068] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-08946] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-77610; File No. SR-NYSEArca-2016-55] Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending the NYSE Arca Options Fee Schedule April 13, 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 April 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. --------------------------------------------------------------------------- \1\ 15 U.S.C.78s(b)(1). \2\ 15 U.S.C. 78a. \3\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend the NYSE Arca Options Fee Schedule (``Fee [[Page 23067]] Schedule''). The Exchange proposes to implement the fee change 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 the Statutory Basis for, the Proposed Rule Change 1. Purpose The purpose of this filing is to modify a criterion used for Lead Market Makers and Market Makers (collectively, ``Market Makers'') to qualify for the Super Tier level of the Monthly Posting Credit Tiers For Executions in Penny Pilot Issues and SPY (the ``Posting Tiers''). The Exchange proposes to implement the fee change effective April 1, 2016. Currently, Market Makers qualify for the Posting Tiers by achieving certain percentages of Total Industry Customer Equity and exchange traded fund (``ETF'') option ADV (``ICADV'').\4\ The Posting Tiers include the Select, Super and Super II tiers and the volume requirements to achieve each are as follows: \5\ --------------------------------------------------------------------------- \4\ The volume thresholds are based on Market Makers' volume transacted electronically as a percentage of total industry Customer equity and ETF options volumes as reported by the Options Clearing Corporation (the ``OCC''). Total industry Customer equity and ETF option volume is comprised of those equity and ETF contracts that clear in the Customer account type at OCC and does not include contracts that clear in either the Firm or Market Maker account type at OCC or contracts overlying a security other than an equity or ETF security. See OCC Monthly Statistics Reports, available here, http://www.theocc.com/webapps/monthly-volume-reports. \5\ The Exchange notes that there is a posting credit of $0.28 associated with a Base Tier for which there is no volume requirement. ---------------------------------------------------------------------------Select Tier: A Market Maker achieve at least 0.25% of ICADV from Market Maker Posted Orders in both Penny Pilot and non-Penny Pilot issues; Super Tier: A Market Maker achieve either (i) at least 0.65% of ICADV from Market Maker Posted Orders in both Penny Pilot and non-Penny Pilot issues or (ii) at least 1.60% of ICADV from all orders in Penny Pilot Issues, all account types, with at least 0.80% of ICADV from Posted Orders in Penny Pilot Issues. As is the case today, in calculating the Super Tier, the Exchange will include the ADV of the Market Maker's affiliate(s); and Super Tier II: A Market Maker must achieve at least 1.60% of ICADV from Market Maker Posted Orders, and at least 0.90% of ICADV from Posted Orders from both Penny Pilot and non-Penny Pilot issues.\6\ --------------------------------------------------------------------------- \6\ The Commission notes that a Market Maker alternatively can qualify for Super Tier II by achieving at least 1.60% of ICADV from Customer and Professional Customer orders, with at least 1.20% of ICADV from Customer and Professional Customer Posted Orders in all Issues. --------------------------------------------------------------------------- The Exchange is proposing to modify one of the alternative criteria to qualify for the Super Tier, by reducing the percentages of ICADV from 0.65% of ICADV to 0.55% of ICADV from Market Maker Posted Orders in All Issues.\7\ The Exchange believes this modification would encourage more Market Makers to achieve Super Tier, which in turn would improve the Posted Markets in all issues. --------------------------------------------------------------------------- \7\ See supra n. 4. --------------------------------------------------------------------------- The Exchange is not proposing any changes to the amount of the Posting Credits for any of the tiers. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with section 6(b) of the Act,\8\ in general, and furthers the objectives of sections 6(b)(4) and (5) of the Act,\9\ 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. --------------------------------------------------------------------------- \8\ 15 U.S.C. 78f(b). \9\ 15 U.S.C. 78f(b)(4) and (5). --------------------------------------------------------------------------- The Exchange believes that the proposed change to the Super Tier is reasonable, equitable, and not unfairly discriminatory because it is designed to encourage Market Makers to achieve the Super Tier by posting volume on the Exchange, which additional liquidity would benefit all participants by offering greater price discovery, increased transparency, and an increased opportunity to trade on the Exchange. The Exchange believes that modifying the Super Tier qualification is also not unfairly discriminatory as it applies to all Market Makers and may enable more Market Makers to meet the Super Tier on a more consistent basis because, as proposed, the threshold has been lowered slightly. The Exchange also believes that the proposed change to the qualification criteria is reasonable equitable, and not unfairly discriminatory, as the Posting Credits are intended to encourage quoting at the National Best Bid and Offer (``NBBO'') which in turn benefits both Customers and non-Customers by having narrower spreads available for execution. 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,\10\ the Exchange does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. Instead, the Exchange believes that the proposed change would encourage competition, including by attracting a wider variety of business to the Exchange, which would make the Exchange a more competitive venue for, among other things, order execution and price discovery. Moreover, because the proposed change to the Super Tier continues to be based on the amount of business conducted on the Exchange, it would apply equally to similarly-situated Marker Makers and would not impose a disparate burden on competition either among or between classes of market participants. --------------------------------------------------------------------------- \10\ 15 U.S.C. 78f(b)(8). --------------------------------------------------------------------------- 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. [[Page 23068]] 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) \11\ of the Act and subparagraph (f)(2) of Rule 19b-4 \12\ thereunder, because it establishes a due, fee, or other charge imposed by the Exchange. --------------------------------------------------------------------------- \11\ 15 U.S.C. 78s(b)(3)(A). \12\ 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) \13\ of the Act to determine whether the proposed rule change should be approved or disapproved. --------------------------------------------------------------------------- \13\ 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-2016-55 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-2016-55. 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-2016-55, and should be submitted on or before May 10, 2016. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\14\ --------------------------------------------------------------------------- \14\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2016-08946 Filed 4-18-16; 8:45 am] BILLING CODE 8011-01-P
![23066 Federal Register / Vol. 81, No. 75 / Tuesday, April 19, 2016 / Notices
Sale Period. Accordingly, the proposal A proposed rule change filed under those that may be withheld from the
is designed to incentivize and reward Rule 19b–4(f)(6) 17 normally does not public in accordance with the
aggressive displayed quoting by market become operative prior to 30 days after provisions of 5 U.S.C. 552, will be
participants, which would remove the date of the filing. However, pursuant available for Web site viewing and
impediments to and perfect the to Rule 19b–4(f)(6)(iii),18 the printing in the Commission’s Public
mechanism of a free and open market Commission may designate a shorter Reference Room, 100 F Street NE.,
and national market system by time if such action is consistent with the Washington, DC 20549 on official
contributing to the market quality of the protection of investors and the public business days between the hours of
Exchange and the national market interest. 10:00 a.m. and 3:00 p.m. Copies of the
system in general. In this regard, the At any time within 60 days of the filing also will be available for
Exchange believes that this proposed filing of such proposed rule change, the inspection and copying at the principal
change would have positive impact on Commission summarily may office of the Exchange. All comments
the Exchange’s market, on the temporarily suspend such rule change if received will be posted without change;
Exchange’s members, and on investors it appears to the Commission that such the Commission does not edit personal
generally by promoting the display of action is necessary or appropriate in the identifying information from
aggressively-priced liquidity on a public interest, for the protection of submissions.
registered exchange. investors, or otherwise in furtherance of You should submit only information
the purposes of the Act. If the that you wish to make available
B. Self-Regulatory Organization’s Commission takes such action, the publicly. All submissions should refer
Statement on Burden on Competition Commission shall institute proceedings to File Number SR–NYSE–2016–28 and
under section 19(b)(2)(B) 19 of the Act to should be submitted on or before May
The Exchange does not believe that 10, 2016.
determine whether the proposed rule
the proposed rule change will impose change should be approved or
any burden on competition that is not For the Commission, by the Division of
disapproved. Trading and Markets, pursuant to delegated
necessary or appropriate in furtherance authority.20
of the purposes of the Act. The IV. Solicitation of Comments
Robert W. Errett,
proposed change is not designed to Interested persons are invited to Deputy Secretary.
address any competitive issue but rather submit written data, views, and [FR Doc. 2016–08968 Filed 4–18–16; 8:45 am]
to promote the additional display of arguments concerning the foregoing,
BILLING CODE 8011–01–P
aggressively-priced liquidity on the including whether the proposed rule
Exchange by allowing interest that sets change is consistent with the Act.
a new Exchange BBO to be considered Comments may be submitted by any of SECURITIES AND EXCHANGE
setting interest even if other orders react the following methods: COMMISSION
and re-price based on such interest
setting a new Exchange BBO. Electronic Comments [Release No. 34–77610; File No. SR–
• Use the Commission’s Internet NYSEArca–2016–55]
C. Self-Regulatory Organization’s comment form (http://www.sec.gov/
Statement on Comments on the rules/sro.shtm); or Self-Regulatory Organizations; NYSE
Proposed Rule Change Received From • Send an email to rule-comments@ Arca, Inc.; Notice of Filing and
Members, Participants, or Others sec.gov. Please include File Number SR– Immediate Effectiveness of Proposed
NYSE–2016–28 on the subject line. Rule Change Amending the NYSE Arca
No written comments were solicited Options Fee Schedule
or received with respect to the proposed Paper Comments
rule change. April 13, 2016.
• Send paper comments in triplicate Pursuant to section 19(b)(1) 1 of the
III. Date of Effectiveness of the to Brent J. Fields, Secretary, Securities Securities Exchange Act of 1934 (the
Proposed Rule Change and Timing for and Exchange Commission, 100 F Street ‘‘Act’’) 2 and Rule 19b–4 thereunder,3
Commission Action NE., Washington, DC 20549–1090. notice is hereby given that, on April 1,
All submissions should refer to File 2016, NYSE Arca, Inc. (the ‘‘Exchange’’
The Exchange has filed the proposed Number SR–NYSE–2016–28. This file
rule change pursuant to section or ‘‘NYSE Arca’’) filed with the
number should be included on the Securities and Exchange Commission
19(b)(3)(A)(iii) of the Act 15 and Rule subject line if email is used. To help the (the ‘‘Commission’’) the proposed rule
19b–4(f)(6) thereunder.16 Because the Commission process and review your change as described in Items I, II, and
proposed rule change does not: (i) comments more efficiently, please use III below, which Items have been
Significantly affect the protection of only one method. The Commission will prepared by the self-regulatory
investors or the public interest; (ii) post all comments on the Commission’s organization. The Commission is
impose any significant burden on Internet Web site (http://www.sec.gov/ publishing this notice to solicit
competition; and (iii) become operative rules/sro.shtml). Copies of the comments on the proposed rule change
prior to 30 days from the date on which submission, all subsequent from interested persons.
it was filed, or such shorter time as the amendments, all written statements
Commission may designate, if with respect to the proposed rule I. Self-Regulatory Organization’s
consistent with the protection of change that are filed with the Statement of the Terms of Substance of
mstockstill on DSK4VPTVN1PROD with NOTICES
investors and the public interest, the Commission, and all written the Proposed Rule Change
proposed rule change has become communications relating to the The Exchange proposes to amend the
effective pursuant to section 19(b)(3)(A) proposed rule change between the NYSE Arca Options Fee Schedule (‘‘Fee
of the Act and Rule 19b–4(f)(6)(iii) Commission and any person, other than
thereunder. 20 17 CFR 200.30–3(a)(12).
17 17 CFR 240.19b–4(f)(6). 1 15 U.S.C.78s(b)(1).
15 15 U.S.C. 78s(b)(3)(A)(iii). 18 17 CFR 240.19b–4(f)(6)(iii). 2 15 U.S.C. 78a.
16 17 CFR 240.19b–4(f)(6). 19 15 U.S.C. 78s(b)(2)(B). 3 17 CFR 240.19b–4.
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III. Date of Effectiveness of the Commission and any person, other than stock from participants to satisfy tax
Proposed Rule Change and Timing for those that may be withheld from the withholding obligations relating to the
Commission Action public in accordance with the vesting of Restricted Stock or the
The foregoing rule change is effective provisions of 5 U.S.C. 552, will be exercise of options to purchase shares of
upon filing pursuant to section available for Web site viewing and Applicant’s common stock (‘‘Options’’),
19(b)(3)(A) 11 of the Act and printing in the Commission’s Public and (c) permit participants to pay the
subparagraph (f)(2) of Rule 19b–4 12 Reference Room, 100 F Street NE., exercise price of Options with shares of
thereunder, because it establishes a due, Washington, DC 20549, on official Applicant’s common stock.
fee, or other charge imposed by the business days between the hours of FILING DATES: The application was filed
Exchange. 10:00 a.m. and 3:00 p.m. Copies of the on April 28, 2015, and amended on
At any time within 60 days of the filing also will be available for October 28, 2015 and February 9, 2016.
filing of such proposed rule change, the inspection and copying at the principal HEARING OR NOTIFICATION OF HEARING: An
Commission summarily may office of the Exchange. All comments order granting the requested relief will
temporarily suspend such rule change if received will be posted without change; be issued unless the Commission orders
it appears to the Commission that such the Commission does not edit personal a hearing. Interested persons may
action is necessary or appropriate in the identifying information from request a hearing by writing to the
public interest, for the protection of submissions. You should submit only Commission’s Secretary and serving
investors, or otherwise in furtherance of information that you wish to make applicant with a copy of the request,
the purposes of the Act. If the available publicly. All submissions personally or by mail. Hearing requests
Commission takes such action, the should refer to File Number SR– should be received by the Commission
Commission shall institute proceedings NYSEArca–2016–55, and should be by 5:30 p.m. on May 9, 2016, and
under section 19(b)(2)(B) 13 of the Act to submitted on or before May 10, 2016. should be accompanied by proof of
determine whether the proposed rule For the Commission, by the Division of service on applicant, in the form of an
change should be approved or Trading and Markets, pursuant to delegated affidavit or, for lawyers, a certificate of
disapproved. authority.14 service. Pursuant to rule 0–5 under the
IV. Solicitation of Comments Robert W. Errett, Act, hearing requests should state the
Deputy Secretary. nature of the writer’s interest, any facts
Interested persons are invited to bearing upon the desirability of a
[FR Doc. 2016–08946 Filed 4–18–16; 8:45 am]
submit written data, views, and hearing on the matter, the reason for the
BILLING CODE 8011–01–P
arguments concerning the foregoing, request, and the issues contested.
including whether the proposed rule Persons who wish to be notified of a
change is consistent with the Act. hearing may request notification by
SECURITIES AND EXCHANGE
Comments may be submitted by any of writing to the Commission’s Secretary.
COMMISSION
the following methods:
ADDRESSES: Secretary, U.S. Securities
[Investment Company Act Release No.
Electronic Comments 32070; 812–14450] and Exchange Commission, 100 F Street
• Use the Commission’s Internet NE., Washington, DC 20549–1090.
comment form (http://www.sec.gov/ Newtek Business Services Corp.; Applicant, 212 West 35th Street, 2nd
rules/sro.shtml); or Notice of Application Floor, New York, New York 10001.
• Send an email to rule-comments@ FOR FURTHER INFORMATION CONTACT: Jill
April 13, 2016. Ehrlich, Senior Counsel, at (202) 551–
sec.gov. Please include File Number SR–
NYSEArca–2016–55 on the subject line. AGENCY: Securities and Exchange 6819, or Mary Kay Frech, Branch Chief,
Commission (‘‘Commission’’). at (202) 551–6821 (Chief Counsel’s
Paper Comments ACTION: Notice of an application for an Office, Division of Investment
• Send paper comments in triplicate order under section 6(c) of the Management).
to Secretary, Securities and Exchange Investment Company Act of 1940 (the
SUPPLEMENTARY INFORMATION: The
Commission, 100 F Street NE., ‘‘Act’’) for an exemption from sections
following is a summary of the
Washington, DC 20549–1090. 23(a), 23(b) and 63 of the Act; under
application. The complete application
All submissions should refer to File sections 57(a)(4) and 57(i) of the Act and
may be obtained via the Commission’s
Number SR–NYSEArca–2016–55. This rule 17d–1 under the Act permitting
Web site by searching for the file
file number should be included on the certain joint transactions otherwise
number, or for an applicant using the
subject line if email is used. To help the prohibited by section 57(a)(4) of the Act;
Company name box, at http://
Commission process and review your and under section 23(c)(3) of the Act for
www.sec.gov/search/search.htm or by
comments more efficiently, please use an exemption from section 23(c) of the
calling (202) 551–8090.
only one method. The Commission will Act.
APPLICANT’S REPRESENTATIONS: 1.
post all comments on the Commission’s
SUMMARY OF THE APPLICATION: Newtek Applicant is an internally managed
Internet Web site (http://www.sec.gov/
Business Services Corp. (‘‘Applicant’’ or closed-end investment company that
rules/sro.shtml). Copies of the
‘‘Company’’) requests an order that has elected to be regulated as a business
submission, all subsequent
would permit Applicant to (a) issue development company (‘‘BDC’’) under
amendments, all written statements
restricted shares of its common stock the Act.1 Applicant represents that it is
with respect to the proposed rule
mstockstill on DSK4VPTVN1PROD with NOTICES
change that are filed with the (‘‘Restricted Stock’’) as part of the 1 Applicant was incorporated under the laws of
Commission, and all written compensation package for certain the state of New York in June 1999 as Whitestone
communications relating to the participants in its 2015 Stock Incentive Holdings, Inc., completed an initial public offering
proposed rule change between the Plan (the ‘‘Plan’’), (b) withhold shares of in September 2000, and changed its name to
the Applicant’s common stock or Newtek Business Services, Inc. in November 2002.
In November 2014, Newtek Business Services, Inc.
11 15 U.S.C. 78s(b)(3)(A). purchase shares of Applicant’s common merged with and into Newtek Business Services
12 17 CFR 240.19b–4(f)(2). Corp. (the ‘‘Reincorporation Transaction’’) for the
13 15 U.S.C. 78s(b)(2)(B). 14 17 CFR 200.30–3(a)(12). purpose of reincorporating in the state of Maryland.
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Document Created: 2016-04-19 00:15:47
Document Modified: 2016-04-19 00:15:47
| 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 23066 |
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