81 FR 24674 - Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Modifying the NYSE Amex Options Fee Schedule
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 80 (April 26, 2016)
Federal Register Volume 81, Issue 80 (April 26, 2016)
| Page Range | 24674-24676 | |
| FR Document | 2016-09594 |
[Federal Register Volume 81, Number 80 (Tuesday, April 26, 2016)] [Notices] [Pages 24674-24676] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-09594] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-77658; File No. SR-NYSEMKT-2016-45] Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Modifying the NYSE Amex Options Fee Schedule April 20, 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 11, 2016, NYSE MKT LLC (the ``Exchange'' or ``NYSE MKT'') 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 modify the NYSE Amex Options Fee Schedule (``Fee Schedule''). The Exchange proposes to implement the fee change effective April 11, 2016. The proposed 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 amend Sections I. E. and G. of the Fee Schedule \4\ to adjust fees and credits payable, effective on April 11, 2016. --------------------------------------------------------------------------- \4\ See Fee Schedule, Sections I. E. (Amex Customer Engagement (``ACE'') Program--Standard Options) and G. (CUBE Auction Fees & Credits), available here, https://www.nyse.com/publicdocs/nyse/markets/amex-options/NYSE_Amex_Options_Fee_Schedule.pdf. --------------------------------------------------------------------------- Proposed changes to ACE Program Section I.E. of the Fee Schedule describes the Exchange's ACE Program, which features five tiers expressed as a percentage of total industry Customer equity and Exchange Traded Fund (``ETF'') option average daily volume \5\ and provides two alternative methods through which Order Flow Providers (each an ``OFP'') may receive per contract credits for Electronic Customer volume that the OFP, as agent, submits to the Exchange. --------------------------------------------------------------------------- \5\ The volume thresholds are based on an NYSE Amex Options 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. --------------------------------------------------------------------------- The Exchange proposes to modify the ACE Program by increasing certain of the credits available for Tiers 2 through 5 as illustrated in the table below, with proposed additions appearing underscored and proposed deletions appearing in brackets: -------------------------------------------------------------------------------------------------------------------------------------------------------- ACE Program--Standard options Credits payable on customer volume only -------------------------------------------------------------------------------------------------------------------- Total electronic ADV (of which 20% or Customer electronic greater of the Tier ADV as a % of minimum qualifying 1 Year 3 Year industry customer OR volume for each tier Customer enhanced enhanced equity and ETF must be customer) as volume credits customer customer options ADV a % of industry volume credits volume credits customer equity and ETF options ADV -------------------------------------------------------------------------------------------------------------------------------------------------------- 1.................................. 0.00% to 0.60%....... ..................... N/A.................. $0.00 $0.00 $0.00 [[Page 24675]] 2.................................. > 0.60% to 0.80% or ..................... N/A.................. [(0.16] [(0.16)] [(0.16)] >= 0.35% over (0.18) (0.18) (0.18) October 2015 volumes. 3.................................. > 0.80% to 1.25%..... ..................... 1.50% to 2.50% of [(0.17)] [(0.18)] [(0.19)] which 20% or greater (0.19) (0.20) (0.21) of 1.50% must be Customer. 4.................................. > 1.25 to 1.75%...... ..................... > 2.50% to 3.50% of [(0.18)] [(0.19)] [(0.21)] which 20% or greater (0.20) (0.21) (0.22) of 2.50% must be Customer. 5.................................. > 1.75%.............. ..................... > 3.50% of which 20% [(0.19)] [(0.21)] [(0.23)] or greater of 3.5% (0.22) (0.23) (0.24) must be Customer. -------------------------------------------------------------------------------------------------------------------------------------------------------- * * * * * The proposed amendments to the ACE Program are designed to enhance the rebates, which the Exchange believes would attract more volume and liquidity to the Exchange to the benefit of Exchange participants through increased opportunities to trade as well as enhancing price discovery. Proposed changes to CUBE Pricing Section I.G. of the Fee Schedule sets forth the rates for per contract fees and credits for executions associated with a CUBE Auction. The Exchange is proposing to adjust rates for RFR Response fees and Initiating Credits and Rebates. Specifically, the Exchange proposes to adjust RFR Response fees for Non-Customers to $0.70 for symbols in the Penny Pilot, from $0.12; and to adjust RFR Response fees for Non-Customers for symbols not in the Penny Pilot to $1.05, from $0.12. The Exchange also proposes to adjust the Initiating Participant credits and rebates to $0.35 for symbols in the Penny Pilot, $0.70 for symbols not in the Penny Pilot, an increase from the $0.05 Initiating Participant credit in all names. The Exchange also proposes to increase the ACE Initiating Participant Rebate from $0.05 to $0.18. The proposed changes are designed to increase incentives for submission of CUBE Orders, which should maximize price improvement opportunities for Customers. In addition, the Exchange notes that prior changes to CUBE Pricing (effective in February 2016), designed to address concerns raised about auction fee structures revealed that fee adjustments to incent Market Maker participation did not lead to greater volume and liquidity in CUBE Auctions, and did not encourage Market Maker RFR Responses to such Auctions.\6\ --------------------------------------------------------------------------- \6\ See Securities Exchange Act Release No. 77106 (February 10, 2016), 81 FR 8107, 8108 (February 17, 2016) (SR-MKT-2016-18) (the ``February CUBE Changes'') (noting that the changes to CUBE pricing, particularly the reduction in the RFR Response Fee, were designed to address concerns raised by Market Makers that auction pricing, including the CUBE, hindered competition by Market Makers, and providing that ``the proposed changes would also provide the concerned Market Makers to have a platform on which they can provide proof of concept.'') The Exchange notes that the CUBE fees and credits in place prior to the February CUBE Changes are consistent with the adjustments proposed herein. --------------------------------------------------------------------------- 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with Section 6(b) of the Act,\7\ in general, and furthers the objectives of Sections 6(b)(4) and (5) of the Act,\8\ in particular, because it provides for the equitable allocation of reasonable dues, fees, and other charges among its members, issuers and other persons using its facilities and does not unfairly discriminate between customers, issuers, brokers or dealers. --------------------------------------------------------------------------- \7\ 15 U.S.C. 78f(b). \8\ 15 U.S.C. 78f(b)(4) and (5). --------------------------------------------------------------------------- The Exchange believes that the proposed amendments to the ACE Program are reasonable, equitable and not unfairly discriminatory because they would enhance the incentives to Order Flow Providers to transact Customer orders on the Exchange, which would benefit all market participants by providing more trading opportunities and tighter spreads, even to those market participants that do not participate in the ACE Program. Additionally, the Exchange believes the proposed changes to the ACE Program are consistent with the Act because they may attract greater volume and liquidity to the Exchange, which would benefit all market participants by providing tighter quoting and better prices, all of which perfects the mechanism for a free and open market and national market system. The Exchange believes that the proposed changes to CUBE Auction fees are reasonable, equitable and not unfairly discriminatory. Specifically, the proposed increases to both the Initiating Participant Credits (for both Penny Pilot and Non-Penny Pilot) as well as the fees associated with RFR Responses that participate in the CUBE are reasonable, equitable and non-discriminatory because they apply equally to all ATP Holders that choose to participate in the CUBE, and access to the Exchange is offered on terms that are not unfairly discriminatory. The Exchange believes the proposed changes to CUBE are reasonable, as they are similar to fee and credit structures previously applied to the CUBE Auction \9\ and to fees charged for similar auction mechanisms on other markets, such as BOX Options Exchange LLC (``BOX''), which charges a total fee of $1.05 for a Market Maker response to a PIP auction in a non-Penny Pilot issue.\10\ --------------------------------------------------------------------------- \9\ See supra n. 6. \10\ See BOX Fee Schedule, available here, http://boxexchange.com/assets/BOX_Fee_Schedule.pdf. --------------------------------------------------------------------------- The Exchange likewise believes the proposed increase of the ACE Initiating Participant Credit is reasonable, equitable and not unfairly discriminatory for the following reasons. First, the ACE Initiating Participant Rebate is based on the amount of business transacted on the Exchange and is designed to attract more volume and liquidity to the [[Page 24676]] Exchange generally, and to CUBE Auctions specifically, which would benefit all market participants (including those that do not participate in the ACE Program) through increased opportunities to trade at potentially improved prices as well as enhancing price discovery. Furthermore, the Exchange notes that the ACE Initiating Participant Rebate is equitable and not unfairly discriminatory because it would continue to incent ATP Holders to transact Customer orders on the Exchange and an increase in Customer order flow would bring greater volume and liquidity to the Exchange. Increased volume to the Exchange benefits all market participants by providing more trading opportunities and tighter spreads, even to those market participants that do not participate in the ACE Program. Finally, the Exchange believes the proposed changes are consistent with the Act because to the extent the modifications permit the Exchange to continue to attract greater volume and liquidity, the proposed change would improve the Exchange's overall competitiveness and strengthen its market quality for 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,\11\ the Exchange does not believe that the proposed rule change would impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. The Exchange believes the proposed amendments to the ACE Program are pro-competitive as the proposed increased rebates may encourage OFPs to direct Customer order flow to the Exchange and any resulting increase in volume and liquidity to the Exchange would benefit all Exchange participants through increased opportunities to trade as well as enhancing price discovery. Further, the Exchange believes the proposed amendments to CUBE Auction pricing are pro-competitive as the fees and credits are designed to incent increases in the number of CUBE Auctions brought to the Exchange, which would benefit all Exchange participants through increased opportunities to trade as well as enhancing price discovery. --------------------------------------------------------------------------- \11\ 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. 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) \12\ of the Act and subparagraph (f)(2) of Rule 19b-4 \13\ thereunder, because it establishes a due, fee, or other charge imposed by the Exchange. --------------------------------------------------------------------------- \12\ 15 U.S.C. 78s(b)(3)(A). \13\ 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) \14\ of the Act to determine whether the proposed rule change should be approved or disapproved. --------------------------------------------------------------------------- \14\ 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 CommentsUse 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-NYSEMKT-2016-45 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-NYSEMKT-2016-45. 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-NYSEMKT-2016-45, and should be submitted on or before May 17, 2016. --------------------------------------------------------------------------- \15\ 17 CFR 200.30-3(a)(12). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\15\ Robert W. Errett, Deputy Secretary. [FR Doc. 2016-09594 Filed 4-25-16; 8:45 am] BILLING CODE 8011-01-P
![24674 Federal Register / Vol. 81, No. 80 / Tuesday, April 26, 2016 / Notices
All submissions should refer to File SECURITIES AND EXCHANGE statements concerning the purpose of,
Number SR–NASDAQ–2016–055. This COMMISSION and basis for, the proposed rule change
file number should be included on the and discussed any comments it received
[Release No. 34–77658; File No. SR–
subject line if email is used. To help the NYSEMKT–2016–45] on the proposed rule change. The text
Commission process and review your of those statements may be examined at
comments more efficiently, please use Self-Regulatory Organizations; NYSE the places specified in Item IV below.
only one method. The Commission will MKT LLC; Notice of Filing and The Exchange has prepared summaries,
post all comments on the Commission’s Immediate Effectiveness of Proposed set forth in sections A, B, and C below,
Internet Web site (http://www.sec.gov/ Rule Change Modifying the NYSE of the most significant parts of such
rules/sro.shtml). Amex Options Fee Schedule statements.
Copies of the submission, all
subsequent amendments, all written April 20, 2016. A. Self-Regulatory Organization’s
statements with respect to the proposed Pursuant to Section 19(b)(1) 1 of the Statement of the Purpose of, and the
rule change that are filed with the Securities Exchange Act of 1934 (the Statutory Basis for, the Proposed Rule
Commission, and all written ‘‘Act’’) 2 and Rule 19b–4 thereunder,3 Change
communications relating to the notice is hereby given that, on April 11,
proposed rule change between the 2016, NYSE MKT LLC (the ‘‘Exchange’’ 1. Purpose
Commission and any person, other than or ‘‘NYSE MKT’’) filed with the
those that may be withheld from the Securities and Exchange Commission The purpose of this filing is to amend
public in accordance with the (the ‘‘Commission’’) the proposed rule Sections I. E. and G. of the Fee
provisions of 5 U.S.C. 552, will be change as described in Items I, II, and Schedule 4 to adjust fees and credits
available for Web site viewing and III below, which Items have been payable, effective on April 11, 2016.
printing in the Commission’s Public prepared by the self-regulatory Proposed changes to ACE Program
Reference Room, 100 F Street NE., organization. The Commission is
Washington, DC 20549, on official publishing this notice to solicit Section I.E. of the Fee Schedule
business days between the hours of comments on the proposed rule change describes the Exchange’s ACE Program,
10:00 a.m. and 3:00 p.m. Copies of the from interested persons. which features five tiers expressed as a
filing also will be available for I. Self-Regulatory Organization’s percentage of total industry Customer
inspection and copying at the principal Statement of the Terms of Substance of equity and Exchange Traded Fund
office of the Exchange. All comments the Proposed Rule Change (‘‘ETF’’) option average daily volume 5
received will be posted without change; and provides two alternative methods
the Commission does not edit personal The Exchange proposes to modify the
NYSE Amex Options Fee Schedule through which Order Flow Providers
identifying information from (each an ‘‘OFP’’) may receive per
submissions. You should submit only (‘‘Fee Schedule’’). The Exchange
proposes to implement the fee change contract credits for Electronic Customer
information that you wish to make volume that the OFP, as agent, submits
available publicly. effective April 11, 2016. The proposed
change is available on the Exchange’s to the Exchange.
All submissions should refer to File
Number SR–NASDAQ–2016–055 and Web site at www.nyse.com, at the The Exchange proposes to modify the
should be submitted on or before May principal office of the Exchange, and at ACE Program by increasing certain of
17, 2016. the Commission’s Public Reference the credits available for Tiers 2 through
Room. 5 as illustrated in the table below, with
For the Commission, by the Division of
Trading and Markets, pursuant to delegated II. Self-Regulatory Organization’s proposed additions appearing
authority.42 Statement of the Purpose of, and underscored and proposed deletions
Robert W. Errett, Statutory Basis for, the Proposed Rule appearing in brackets:
Deputy Secretary. Change
[FR Doc. 2016–09597 Filed 4–25–16; 8:45 am] In its filing with the Commission, the
BILLING CODE 8011–01–P self-regulatory organization included
ACE Program—Standard options Credits payable on customer volume only
Total electronic ADV (of
which 20% or
greater of the minimum quali- 1 Year 3 Year
Tier Customer electronic ADV as fying volume for Customer enhanced enhanced
a % of industry customer eq- OR each tier must be customer) volume credits customer vol- customer vol-
uity and ETF options ADV as a % of ume credits ume credits
industry customer equity and
ETF options ADV
1 ..................... 0.00% to 0.60% .................... ................... N/A ........................................ $0.00 $0.00 $0.00
mstockstill on DSK4VPTVN1PROD with NOTICES
42 17 CFR 200.30–3(a)(12). nyse/markets/amex-options/NYSE_Amex_Options_ option volume is comprised of those equity and
1 15 U.S.C. 78s(b)(1). Fee_Schedule.pdf. ETF contracts that clear in the Customer account
2 15 U.S.C. 78a. 5 The volume thresholds are based on an NYSE type at OCC and does not include contracts that
3 17 CFR 240.19b–4. Amex Options Market Makers’ volume transacted clear in either the Firm or Market Maker account
4 See Fee Schedule, Sections I. E. (Amex Electronically as a percentage of total industry type at OCC or contracts overlying a security other
Customer Engagement (‘‘ACE’’) Program—Standard Customer equity and ETF options volumes as than an equity or ETF security. See OCC Monthly
Options) and G. (CUBE Auction Fees & Credits), reported by the Options Clearing Corporation (the Statistics Reports, available here, http://
available here, https://www.nyse.com/publicdocs/ ‘‘OCC’’). Total industry Customer equity and ETF www.theocc.com/webapps/monthly-volume-reports.
VerDate Sep<11>2014 22:08 Apr 25, 2016 Jkt 238001 PO 00000 Frm 00121 Fmt 4703 Sfmt 4703 E:\FR\FM\26APN1.SGM 26APN1](https://thefederalregister.org/doc/81_FR_24754/page/1.svg)
![Federal Register / Vol. 81, No. 80 / Tuesday, April 26, 2016 / Notices 24675
ACE Program—Standard options Credits payable on customer volume only
Total electronic ADV (of
which 20% or
greater of the minimum quali- 1 Year 3 Year
Tier Customer electronic ADV as fying volume for Customer enhanced enhanced
a % of industry customer eq- OR each tier must be customer) volume credits customer vol- customer vol-
uity and ETF options ADV as a % of ume credits ume credits
industry customer equity and
ETF options ADV
2 ..................... > 0.60% to 0.80% or ≥ ................... N/A ........................................ [(0.16] [(0.16)] [(0.16)]
0.35% over October 2015 (0.18) (0.18) (0.18)
volumes.
3 ..................... > 0.80% to 1.25% ................. ................... 1.50% to 2.50% of which [(0.17)] [(0.18)] [(0.19)]
20% or greater of 1.50% (0.19) (0.20) (0.21)
must be Customer.
4 ..................... > 1.25 to 1.75% .................... ................... > 2.50% to 3.50% of which [(0.18)] [(0.19)] [(0.21)]
20% or greater of 2.50% (0.20) (0.21) (0.22)
must be Customer.
5 ..................... > 1.75% ................................. ................... > 3.50% of which 20% or [(0.19)] [(0.21)] [(0.23)]
greater of 3.5% must be (0.22) (0.23) (0.24)
Customer.
* * * * * Maker RFR Responses to such may attract greater volume and liquidity
The proposed amendments to the Auctions.6 to the Exchange, which would benefit
ACE Program are designed to enhance all market participants by providing
2. Statutory Basis
the rebates, which the Exchange tighter quoting and better prices, all of
believes would attract more volume and The Exchange believes that the which perfects the mechanism for a free
liquidity to the Exchange to the benefit proposed rule change is consistent with and open market and national market
of Exchange participants through Section 6(b) of the Act,7 in general, and system.
increased opportunities to trade as well furthers the objectives of Sections The Exchange believes that the
as enhancing price discovery. 6(b)(4) and (5) of the Act,8 in particular, proposed changes to CUBE Auction fees
because it provides for the equitable are reasonable, equitable and not
Proposed changes to CUBE Pricing allocation of reasonable dues, fees, and unfairly discriminatory. Specifically,
Section I.G. of the Fee Schedule sets other charges among its members, the proposed increases to both the
forth the rates for per contract fees and issuers and other persons using its Initiating Participant Credits (for both
credits for executions associated with a facilities and does not unfairly Penny Pilot and Non-Penny Pilot) as
CUBE Auction. The Exchange is discriminate between customers, well as the fees associated with RFR
proposing to adjust rates for RFR issuers, brokers or dealers. Responses that participate in the CUBE
Response fees and Initiating Credits and The Exchange believes that the are reasonable, equitable and non-
Rebates. Specifically, the Exchange proposed amendments to the ACE discriminatory because they apply
proposes to adjust RFR Response fees Program are reasonable, equitable and equally to all ATP Holders that choose
for Non-Customers to $0.70 for symbols not unfairly discriminatory because they to participate in the CUBE, and access
in the Penny Pilot, from $0.12; and to would enhance the incentives to Order to the Exchange is offered on terms that
adjust RFR Response fees for Non- Flow Providers to transact Customer are not unfairly discriminatory.
Customers for symbols not in the Penny orders on the Exchange, which would The Exchange believes the proposed
Pilot to $1.05, from $0.12. The Exchange benefit all market participants by changes to CUBE are reasonable, as they
also proposes to adjust the Initiating providing more trading opportunities are similar to fee and credit structures
Participant credits and rebates to $0.35 and tighter spreads, even to those previously applied to the CUBE
for symbols in the Penny Pilot, $0.70 for market participants that do not Auction 9 and to fees charged for similar
symbols not in the Penny Pilot, an participate in the ACE Program. auction mechanisms on other markets,
increase from the $0.05 Initiating Additionally, the Exchange believes the such as BOX Options Exchange LLC
Participant credit in all names. The proposed changes to the ACE Program (‘‘BOX’’), which charges a total fee of
Exchange also proposes to increase the are consistent with the Act because they $1.05 for a Market Maker response to a
ACE Initiating Participant Rebate from PIP auction in a non-Penny Pilot
$0.05 to $0.18. 6 See Securities Exchange Act Release No. 77106 issue.10
The proposed changes are designed to (February 10, 2016), 81 FR 8107, 8108 (February 17, The Exchange likewise believes the
increase incentives for submission of 2016) (SR–MKT–2016–18) (the ‘‘February CUBE proposed increase of the ACE Initiating
Changes’’) (noting that the changes to CUBE pricing, Participant Credit is reasonable,
CUBE Orders, which should maximize particularly the reduction in the RFR Response Fee,
price improvement opportunities for were designed to address concerns raised by Market
equitable and not unfairly
Makers that auction pricing, including the CUBE, discriminatory for the following
Customers. In addition, the Exchange
hindered competition by Market Makers, and reasons. First, the ACE Initiating
mstockstill on DSK4VPTVN1PROD with NOTICES
notes that prior changes to CUBE providing that ‘‘the proposed changes would also Participant Rebate is based on the
Pricing (effective in February 2016), provide the concerned Market Makers to have a amount of business transacted on the
designed to address concerns raised platform on which they can provide proof of
concept.’’) The Exchange notes that the CUBE fees Exchange and is designed to attract
about auction fee structures revealed
and credits in place prior to the February CUBE more volume and liquidity to the
that fee adjustments to incent Market Changes are consistent with the adjustments
Maker participation did not lead to proposed herein. 9 See
supra n. 6.
greater volume and liquidity in CUBE 7 15 U.S.C. 78f(b). 10 See
BOX Fee Schedule, available here, http://
Auctions, and did not encourage Market 8 15 U.S.C. 78f(b)(4) and (5). boxexchange.com/assets/BOX_Fee_Schedule.pdf.
VerDate Sep<11>2014 22:08 Apr 25, 2016 Jkt 238001 PO 00000 Frm 00122 Fmt 4703 Sfmt 4703 E:\FR\FM\26APN1.SGM 26APN1](https://thefederalregister.org/doc/81_FR_24754/page/2.svg)
![24676 Federal Register / Vol. 81, No. 80 / Tuesday, April 26, 2016 / Notices
Exchange generally, and to CUBE competing venues. In such an All submissions should refer to File
Auctions specifically, which would environment, the Exchange must Number SR–NYSEMKT–2016–45. This
benefit all market participants continually review, and consider file number should be included on the
(including those that do not participate adjusting, its fees and credits to remain subject line if email is used. To help the
in the ACE Program) through increased competitive with other exchanges. For Commission process and review your
opportunities to trade at potentially the reasons described above, the comments more efficiently, please use
improved prices as well as enhancing Exchange believes that the proposed only one method. The Commission will
price discovery. Furthermore, the rule change reflects this competitive post all comments on the Commission’s
Exchange notes that the ACE Initiating environment. Internet Web site (http://www.sec.gov/
Participant Rebate is equitable and not rules/sro.shtml). Copies of the
C. Self-Regulatory Organization’s
unfairly discriminatory because it submission, all subsequent
Statement on Comments on the
would continue to incent ATP Holders amendments, all written statements
Proposed Rule Change Received From
to transact Customer orders on the with respect to the proposed rule
Members, Participants, or Others
Exchange and an increase in Customer change that are filed with the
order flow would bring greater volume No written comments were solicited Commission, and all written
and liquidity to the Exchange. Increased or received with respect to the proposed communications relating to the
volume to the Exchange benefits all rule change. proposed rule change between the
market participants by providing more III. Date of Effectiveness of the Commission and any person, other than
trading opportunities and tighter Proposed Rule Change and Timing for those that may be withheld from the
spreads, even to those market Commission Action public in accordance with the
participants that do not participate in provisions of 5 U.S.C. 552, will be
the ACE Program. The foregoing rule change is effective available for Web site viewing and
Finally, the Exchange believes the upon filing pursuant to Section printing in the Commission’s Public
proposed changes are consistent with 19(b)(3)(A) 12 of the Act and Reference Room, 100 F Street NE.,
the Act because to the extent the subparagraph (f)(2) of Rule 19b–4 13 Washington, DC 20549 on official
modifications permit the Exchange to thereunder, because it establishes a due, business days between the hours of
continue to attract greater volume and fee, or other charge imposed by the 10:00 a.m. and 3:00 p.m. Copies of such
liquidity, the proposed change would Exchange. filing also will be available for
improve the Exchange’s overall At any time within 60 days of the inspection and copying at the principal
competitiveness and strengthen its filing of such proposed rule change, the office of the Exchange. All comments
market quality for all market Commission summarily may received will be posted without change;
participants. temporarily suspend such rule change if the Commission does not edit personal
For these reasons, the Exchange it appears to the Commission that such identifying information from
believes that the proposal is consistent action is necessary or appropriate in the submissions. You should submit only
with the Act. public interest, for the protection of information that you wish to make
investors, or otherwise in furtherance of available publicly. All submissions
B. Self-Regulatory Organization’s the purposes of the Act. If the
Statement on Burden on Competition should refer to File Number SR–
Commission takes such action, the NYSEMKT–2016–45, and should be
In accordance with Section 6(b)(8) of Commission shall institute proceedings submitted on or before May 17, 2016.
the Act,11 the Exchange does not believe under Section 19(b)(2)(B) 14 of the Act to
determine whether the proposed rule For the Commission, by the Division of
that the proposed rule change would
Trading and Markets, pursuant to delegated
impose any burden on competition that change should be approved or
authority.15
is not necessary or appropriate in disapproved.
Robert W. Errett,
furtherance of the purposes of the Act. IV. Solicitation of Comments Deputy Secretary.
The Exchange believes the proposed
amendments to the ACE Program are Interested persons are invited to [FR Doc. 2016–09594 Filed 4–25–16; 8:45 am]
pro-competitive as the proposed submit written data, views, and BILLING CODE 8011–01–P
increased rebates may encourage OFPs arguments concerning the foregoing,
to direct Customer order flow to the including whether the proposed rule
change is consistent with the Act. SECURITIES AND EXCHANGE
Exchange and any resulting increase in
Comments may be submitted by any of COMMISSION
volume and liquidity to the Exchange
would benefit all Exchange participants the following methods: [Release No. 34–77660; File No. SR–BOX–
through increased opportunities to trade Electronic Comments 2016–19]
as well as enhancing price discovery. • Use the Commission’s Internet
Further, the Exchange believes the Self-Regulatory Organizations; BOX
comment form (http://www.sec.gov/ Options Exchange LLC; Notice of
proposed amendments to CUBE Auction rules/sro.shtml); or
pricing are pro-competitive as the fees Filing and Immediate Effectiveness of
• Send an email to rule-comments@ a Proposed Rule Change To Extend
and credits are designed to incent sec.gov. Please include File Number SR– the Pilot Program for the Listing and
increases in the number of CUBE NYSEMKT–2016–45 on the subject line. Trading of Options Settling to the
Auctions brought to the Exchange,
Paper Comments RealVolTM SPY Index (‘‘Index’’)
which would benefit all Exchange
mstockstill on DSK4VPTVN1PROD with NOTICES
participants through increased • Send paper comments in triplicate April 20, 2016.
opportunities to trade as well as to Brent J. Fields, Secretary, Securities Pursuant to Section 19(b)(1) of the
enhancing price discovery. and Exchange Commission, 100 F Street Securities Exchange Act of 1934
The Exchange notes that it operates in NE., Washington, DC 20549–1090. (‘‘Act’’),1 and Rule 19b-4 thereunder,2
a highly competitive market in which
market participants can readily favor 12 15 U.S.C. 78s(b)(3)(A). 15 17 CFR 200.30–3(a)(12).
13 17 CFR 240.19b–4(f)(2). 1 15 U.S.C. 78s(b)(1).
11 15 U.S.C. 78f(b)(8). 14 15 U.S.C. 78s(b)(2)(B). 2 17 CFR 240.19b–4.
VerDate Sep<11>2014 22:08 Apr 25, 2016 Jkt 238001 PO 00000 Frm 00123 Fmt 4703 Sfmt 4703 E:\FR\FM\26APN1.SGM 26APN1](https://thefederalregister.org/doc/81_FR_24754/page/3.svg)
Document Created: 2016-04-26 01:36:56
Document Modified: 2016-04-26 01:36:56
| 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 24674 |
2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR