81 FR 30583 - Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and Immediate Effectiveness of Proposed Change Modifying the NYSE Amex Options Fee Schedule
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 95 (May 17, 2016)
Federal Register Volume 81, Issue 95 (May 17, 2016)
| Page Range | 30583-30585 | |
| FR Document | 2016-11544 |
[Federal Register Volume 81, Number 95 (Tuesday, May 17, 2016)] [Notices] [Pages 30583-30585] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-11544] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-77814; File No. SR-NYSEMKT-2016-50] Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and Immediate Effectiveness of Proposed Change Modifying the NYSE Amex Options Fee Schedule May 11, 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 28, 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 May 2, 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 modify the definition of a Firm Facilitation trade to include Broker-Dealers, which would be consistent with the treatment of such transactions on another options market. The Exchange proposes to implement the change effective on May 2, 2016. The current Fee Schedule defines a ``Firm Facilitation'' trade as ``a Manual trade that is executed in open outcry, in which one counterparty clears in the Firm range at the OCC, the other counterparty clears in the Customer range at the OCC, and both counterparties have the same Clearing Member symbol or identification.'' \4\ Firm Facilitation trades are not subject to transaction charges and are only subject to Royalty Fees.\5\ --------------------------------------------------------------------------- \4\ See Fee Schedule, Terms and Definitions, available here, https://www.nyse.com/publicdocs/nyse/markets/amex-options/NYSE_Amex_Options_Fee_Schedule.pdf. \5\ See id., Fee Schedule, sections I. A. and B. (providing that Firm Facilitation trades are executed at the rate of $0.00 per contract) and K. (providing that Firm Facilitation trades are subject to Royalty Fees). The Exchange notes that Royalty Fees (or license fees) apply to certain classes of options and such fees are passed-on by the Exchange to the actual participants executing the trade. --------------------------------------------------------------------------- The Exchange proposes to modify the definition of Firm Facilitation to include Manual trades clearing in the [[Page 30584]] Broker-Dealer range at the OCC.\6\ The Exchange notes that this proposal would align its definition of a Firm Facilitation trade with that of another options exchange. Specifically, the fee schedule for NYSE Arca provides that firm facilitation trades are manual trades that apply to ``any transaction involving a Firm proprietary trading account that has a customer of that same Firm on the contra side of the transaction, or a broker dealer facilitating a Customer order, where the broker dealer and the Customer both clear through the same clearing firm and the broker dealer clears in the customer range.'' \7\ --------------------------------------------------------------------------- \6\ See proposed Fee Schedule. Per the Fee Schedule, a ``Firm'' means a Broker-Dealer that is not registered as a dealer-specialist or Market Maker that is an ATP Holder on the Exchange, per Rule 900.2NY(28) and a ``Broker-Dealer'' is an entity registered pursuant to section 15 of the Exchange Act, per Rule 990NY(3). See Fee Schedule, supra n. 4. \7\ See NYSE Arca fee schedule, Endnote 7, available here, https://www.nyse.com/publicdocs/nyse/markets/arca-options/NYSE_Arca_Options_Fee_Schedule.pdf (describing Firm Facilitation and Broker Dealer facilitating a Customer--Manual). NYSE Arca likewise does not charge transaction fees for firm facilitation trades. --------------------------------------------------------------------------- 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 modification to the definition of Firm Facilitation trades is reasonable, equitable and not unfairly discriminatory because it would align the scope of such trades with how trades are characterized on at least one other options exchange, thereby encouraging greater harmonization across exchange. Additionally, the Exchange believes the proposed change is consistent with the Act because they it 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. 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 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 amendment is pro-competitive as expanding the definition of Firm Facilitation trades consistent with other markets may encourage additional order flow to be direction 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. --------------------------------------------------------------------------- \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. 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 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-2016-50 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-NYSEMKT-2016-50. 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-NYSEMKT-2016-50, and should be submitted on or before June 7, 2016. [[Page 30585]] 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. 2016-11544 Filed 5-16-16; 8:45 am] BILLING CODE 8011-01-P
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C. Self-Regulatory Organization’s Commission and any person, other than (‘‘Fee Schedule’’). The Exchange
Statement on Comments on the those that may be withheld from the proposes to implement the fee change
Proposed Rule Change Received From public in accordance with the effective May 2, 2016. The proposed
Members, Participants, or Others provisions of 5 U.S.C. 552, will be change is available on the Exchange’s
The Exchange has not solicited, and available for Web site viewing and Web site at www.nyse.com, at the
does not intend to solicit, comments on printing in the Commission’s Public principal office of the Exchange, and at
this proposed rule change. The Reference Room, 100 F Street NE., the Commission’s Public Reference
Exchange has not received any written Washington, DC 20549, on official Room.
comments from members or other business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the II. Self-Regulatory Organization’s
interested parties.
filing also will be available for Statement of the Purpose of, and
III. Date of Effectiveness of the inspection and copying at the principal Statutory Basis for, the Proposed Rule
Proposed Rule Change and Timing for office of the Exchange. All comments Change
Commission Action received will be posted without change;
the Commission does not edit personal In its filing with the Commission, the
The foregoing rule change has become
identifying information from self-regulatory organization included
effective pursuant to Section 19(b)(3)(A)
submissions. You should submit only statements concerning the purpose of,
of the Act 20 and paragraph (f)(2) of Rule
19b–4 thereunder.21 At any time within information that you wish to make and basis for, the proposed rule change
60 days of the filing of the proposed rule available publicly. All submissions and discussed any comments it received
change, the Commission summarily may should refer to File No. SR–BatsEDGX– on the proposed rule change. The text
temporarily suspend such rule change if 2016–15, and should be submitted on or of those statements may be examined at
it appears to the Commission that such before June 7, 2016. the places specified in Item IV below.
action is necessary or appropriate in the The Exchange has prepared summaries,
For the Commission, by the Division of
public interest, for the protection of Trading and Markets, pursuant to delegated set forth in sections A, B, and C below,
investors, or otherwise in furtherance of authority.22 of the most significant parts of such
the purposes of the Act. Robert W. Errett, statements.
IV. Solicitation of Comments Deputy Secretary. A. Self-Regulatory Organization’s
[FR Doc. 2016–11543 Filed 5–16–16; 8:45 am] Statement of the Purpose of, and the
Interested persons are invited to
BILLING CODE 8011–01–P Statutory Basis for, the Proposed Rule
submit written data, views, and
Change
arguments concerning the foregoing,
including whether the proposed rule SECURITIES AND EXCHANGE 1. Purpose
change is consistent with the Act. COMMISSION
Comments may be submitted by any of The purpose of this filing is to modify
the following methods: [Release No. 34–77814; File No. SR– the definition of a Firm Facilitation
NYSEMKT–2016–50] trade to include Broker-Dealers, which
Electronic Comments would be consistent with the treatment
• Use the Commission’s Internet Self-Regulatory Organizations; NYSE of such transactions on another options
comment form (http://www.sec.gov/ MKT LLC; Notice of Filing and
market. The Exchange proposes to
rules/sro.shtml); or Immediate Effectiveness of Proposed
implement the change effective on May
• Send an email to rule-comments@ Change Modifying the NYSE Amex
2, 2016.
sec.gov. Please include File No. SR- Options Fee Schedule
The current Fee Schedule defines a
BatsEDGX–2016–15 on the subject line. May 11, 2016. ‘‘Firm Facilitation’’ trade as ‘‘a Manual
Paper Comments Pursuant to section 19(b)(1) 1 of the trade that is executed in open outcry, in
Securities Exchange Act of 1934 (the which one counterparty clears in the
• Send paper comments in triplicate
‘‘Act’’) 2 and Rule 19b–4 thereunder,3 Firm range at the OCC, the other
to Secretary, Securities and Exchange
notice is hereby given that, on April 28, counterparty clears in the Customer
Commission, 100 F Street NE.,
2016, NYSE MKT LLC (the ‘‘Exchange’’ range at the OCC, and both
Washington, DC 20549–1090.
or ‘‘NYSE MKT’’) filed with the counterparties have the same Clearing
All submissions should refer to File No. Securities and Exchange Commission
SR–BatsEDGX–2016–15. This file Member symbol or identification.’’ 4
(the ‘‘Commission’’) the proposed rule Firm Facilitation trades are not subject
number should be included on the change as described in Items I, II, and
subject line if email is used. To help the to transaction charges and are only
III below, which Items have been subject to Royalty Fees.5
Commission process and review your prepared by the self-regulatory
comments more efficiently, please use organization. The Commission is The Exchange proposes to modify the
only one method. The Commission will publishing this notice to solicit definition of Firm Facilitation to
post all comments on the Commission’s comments on the proposed rule change include Manual trades clearing in the
Internet Web site (http://www.sec.gov/ from interested persons.
rules/sro.shtml). Copies of the 4 See Fee Schedule, Terms and Definitions,
submission, all subsequent I. Self-Regulatory Organization’s available here, https://www.nyse.com/publicdocs/
amendments, all written statements Statement of the Terms of Substance of nyse/markets/amex-options/
the Proposed Rule Change NYSE_Amex_Options_Fee_Schedule.pdf.
jstallworth on DSK7TPTVN1PROD with NOTICES
with respect to the proposed rule 5 See id., Fee Schedule, sections I. A. and B.
change that are filed with the The Exchange proposes to modify the (providing that Firm Facilitation trades are
Commission, and all written NYSE Amex Options Fee Schedule executed at the rate of $0.00 per contract) and K.
communications relating to the (providing that Firm Facilitation trades are subject
to Royalty Fees). The Exchange notes that Royalty
proposed rule change between the 2215 CFR 200.30–3(a)(12). Fees (or license fees) apply to certain classes of
1 15 U.S.C. 78s(b)(1). options and such fees are passed-on by the
20 15 U.S.C. 78s(b)(3)(A). 2 15 U.S.C. 78a.
Exchange to the actual participants executing the
21 17 CFR 240.19b–4(f). 3 17 CFR 240.19b–4. trade.
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![Federal Register / Vol. 81, No. 95 / Tuesday, May 17, 2016 / Notices 30585
For the Commission, by the Division of should state the nature of the writer’s 7 under the Act (collectively, the
Trading and Markets, pursuant to delegated interest, any facts bearing upon the ‘‘Money Market Funds’’).2
authority.14 desirability of a hearing on the matter, 2. The Funds may lend cash to banks
Robert W. Errett, the reason for the request, and the issues or other entities by entering into
Deputy Secretary. contested. Persons who wish to be repurchase agreements or purchasing
[FR Doc. 2016–11544 Filed 5–16–16; 8:45 am] notified of a hearing may request short-term instruments. The Funds may
BILLING CODE 8011–01–P notification by writing to the also need to borrow money for
Commission’s Secretary. temporary purposes. In order to meet an
unexpected volume of redemptions or to
SECURITIES AND EXCHANGE ADDRESSES: Secretary, U.S. Securities cover unanticipated cash shortfalls, the
COMMISSION and Exchange Commission, 100 F Street Metropolitan West Funds have
NE., Washington, DC 20549–1090; contracted for a revolving credit facility
[Investment Company Act Release No. Applicants: 865 S. Figueroa Street, Suite with the Bank of New York Mellon
32113; File No. 812–14561] 1800, Los Angeles, CA 90017. Corporation, and other lenders that may
TCW Alternative Funds, et al.; Notice FOR FURTHER INFORMATION CONTACT: be added in the future to the lending
of Application Mark N. Zaruba, Senior Counsel, at syndicate (‘‘Bank Borrowing’’). The
(202) 551–6878 or Mary Kay Frech, TCW Alternative Funds and TCW
May 11, 2016. Branch Chief, at (202) 551–6821 Funds, Inc. may in the future join this
AGENCY: Securities and Exchange (Division of Investment Management, credit facility or enter into other
Commission (‘‘Commission’’). Chief Counsel’s Office). arrangements with other bank lenders
ACTION: Notice of an application for an (each also a ‘‘Bank Borrowing’’). The
order pursuant to: (a) Section 6(c) of the SUPPLEMENTARY INFORMATION: The amount of borrowing under each of
Investment Company Act of 1940 following is a summary of the these lines of credit is limited to the
(‘‘Act’’) granting an exemption from application. The complete application amount specified by fundamental
sections 18(f) and 21(b) of the Act; (b) may be obtained via the Commission’s investment restrictions, the terms
section 12(d)(1)(J) of the Act granting an Web site by searching for the file specified in the agreements, and/or
exemption from section 12(d)(1) of the number, or an applicant using the other policies of the applicable Fund
Act; (c) sections 6(c) and 17(b) of the Company name box, at http:// and section 18 of the Act.
Act granting an exemption from sections www.sec.gov/search/search.htm or by 3. If Funds that experience a cash
17(a)(1), 17(a)(2) and 17(a)(3) of the Act; calling (202) 551–8090. shortfall were to draw down on their
and (d) section 17(d) of the Act and rule Applicants’ Representations Bank Borrowing, they would pay
17d–1 under the Act to permit certain interest at a rate that is likely to be
joint arrangements and transactions. 1. Each Trust is organized as a higher than the rate that could be earned
Delaware statutory trust and is by non-borrowing Funds on investments
Summary of the Application: registered under the Act as an open-end in repurchase agreements and other
Applicants request an order that would management investment company. The short-term money market instruments of
permit certain registered open-end Corporation is a Maryland corporation the same maturity as the Bank
management investment companies to and is registered as an open-end Borrowing (‘‘Short-Term Instruments’’).
participate in a joint lending and management investment company. Each Applicants assert the difference between
borrowing facility. Trust and the Corporation has issued the higher rate paid on Bank Borrowing
Applicants: TCW Alternative Funds one or more series, each of which has and what the bank pays to borrow under
and Metropolitan West Funds (each a its own investment objective and its repurchase agreements or other
‘‘Trust’’ and collectively the ‘‘Trusts’’), own investment policies.1 TCWIMC is a arrangements represents the bank’s
TCW Funds, Inc. (the ‘‘Corporation’’); California corporation and MWAM is a profit for serving as the middleperson
TCW Investment Management Company California limited liability company, between a borrower and lender and is
(‘‘TCWIMC’’) and Metropolitan West and each of TCWIMC and MWAM is not attributable to any material
Asset Management, LLC (‘‘MWAM’’) registered as an investment adviser difference in the credit quality or risk of
(each, an ‘‘Adviser,’’ and such entities under the Investment Advisers Act of such transactions.
together, the ‘‘Advisers’’). 1940 (‘‘Advisers Act’’). Both are wholly- 4. The Funds seek to enter into master
Filing Dates: The application was owned subsidiaries (direct or indirect) interfund lending agreements with each
filed on October 5, 2015, and amended of the TCW Group, Inc., which, in turn, other (the ‘‘InterFund Program’’) that
on January 28, 2016 and May 10, 2016. is owned indirectly by two investment would permit each Fund whose policies
Hearing or Notification of Hearing: An funds that are controlled by The Carlyle permit it to do so to lend money directly
order granting the requested relief will Group, L.P. In the future, the Advisers to and borrow money directly from
be issued unless the Commission orders may advise Funds that are money other Funds for temporary purposes
a hearing. Interested persons may through the InterFund Program (an
market funds that comply with rule 2a–
request a hearing by writing to the ‘‘Interfund Loan’’). The Money Market
Commission’s Secretary and serving 1 Applicants request that the order apply to any
Funds will not participate as borrowers.
applicants with a copy of the request, registered open-end management investment
Applicants state that the requested will
personally or by mail. company or series thereof for which TCWIMC, relief enable the Funds to access an
Hearing requests should be received MWAM or any successor thereto or an investment available source of money and reduce
by the Commission by 5:30 p.m. on June adviser controlling, controlled by, or under costs incurred by the Funds that need to
jstallworth on DSK7TPTVN1PROD with NOTICES
common control (within the meaning of section
6, 2016, and should be accompanied by 2(a)(9) of the Act) with TCWIMC or MWAM or any
obtain loans for temporary purposes and
proof of service on the applicants, in the successor thereto serves as investment adviser (each permit those Funds that have cash
form of an affidavit, or, for lawyers, a a ‘‘Fund’’ and collectively the ‘‘Funds’’ or each such
certificate of service. Pursuant to Rule investment adviser an ‘‘Adviser’’). For purposes of 2 All Funds that currently intend to rely on the
the requested order, ‘‘successor’’ is limited to any requested order have been named as applicants.
0–5 under the Act, hearing requests entity that results from a reorganization into Any other Fund that relies on the requested order
another jurisdiction or a change in the type of a in the future will comply with the terms and
14 17 CFR 200.30–3(a)(12). business organization. conditions of the application.
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Document Created: 2018-02-07 15:05:57
Document Modified: 2018-02-07 15:05:57
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
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| Section | Notices | |
| FR Citation | 81 FR 30583 |
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