81 FR 31984 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the NYSE Arca Options Fee Schedule

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 98 (May 20, 2016)

Page Range		31984-31986
FR Document		2016-11876
Federal Register, Volume 81 Issue 98 (Friday, May 20, 2016)
[Federal Register Volume 81, Number 98 (Friday, May 20, 2016)]
[Notices]
[Pages 31984-31986]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-11876]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-77835; File No. SR-NYSEARCA-2016-61]


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

May 16, 2016.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 
1934 (``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given 
that, on May 2, 2016, NYSE Arca, Inc. (the ``Exchange'' or ``NYSE 
Arca'') filed with the Securities and Exchange Commission 
(``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. 
The proposed rule change is available on the Exchange's Web site at 
www.nyse.com, at the principal office of the Exchange, and at the 
Commission's Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the self-regulatory organization 
included statements concerning the purpose of, and basis for, the 
proposed rule change and discussed any comments it received on the 
proposed rule change. The text of those statements may be examined at 
the places specified in Item IV below. The Exchange has prepared 
summaries, set forth in sections A, B, and C below, of the most 
significant parts of such statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The purpose of this filing is to amend the Fee Schedule in a number 
of different ways, effective May 2, 2016. Specifically, the Exchange 
proposes (i) to increase certain Take Liquidity Fees charged; (ii) to 
modify the Customer and Professional Customer Incentive Program; and 
(iii) to introduce a new qualification for Customer and Professional 
Customer Posting Credit Tiers in Non-Penny Pilot Issues, as described 
below.
Transaction Fees for Taking Liquidity
    The Exchange proposes to modify the fees paid by Market Makers, 
Lead Market Makers, Firms and Broker Dealers, and Professional 
Customers (collectively, ``Non-Customers'') for Taking Liquidity in 
non-Penny Pilot Issues (``Take Fees''). Specifically, the Exchange 
proposes to increase the Take Fee charged to Non-Customers from $0.99 
per contract to $1.08 per contract, which is within the range of fees 
charged by competing option exchanges.\4\
---------------------------------------------------------------------------

    \4\ See, e.g., NASDAQ Options Market (``NOM'') price list, 
available here, http://www.nasdaqtrader.com/Micro.aspx?id=optionsPricing (charging non-customers a $1.10 per 
contract take liquidity fee in Non-Penny Pilot Issues).
---------------------------------------------------------------------------

Customer and Professional Customer Incentive Program (the ``Incentive 
Program'')
    The Exchange is proposing to increase one of the credits available 
under the Incentive Program, which provides OTP Holders and OTP Firms 
(collectively, ``OTPs'') five alternatives to earn

[[Page 31985]]

additional posting credits ranging from $0.01 to $0.04.\5\ 
Specifically, the Exchange proposes to increase from $0.04 to $0.05 the 
additional post credit available to OTPs that achieve at least 1.00% of 
Total Industry Customer equity and ETF option ADV (``TCADV'') from 
Customer and Professional Customer Posted Orders in both Penny Pilot 
and non-Penny Pilot Issues, of which at least 0.25% of TCADV is from 
Customer and Professional Customer Posted Orders in non-Penny Pilot 
Issues. The Exchange believes this increased credit would provide 
additional incentive to direct Customer and Professional Customer order 
flow to the Exchange, which benefits all market participants through 
increased liquidity and enhanced price discovery.
---------------------------------------------------------------------------

    \5\ The Exchange proposes to remove the word ``four'' from the 
italicized comment at the bottom of the Incentive Program table to 
make clear that there are currently five alternatives to earn the 
credit. See proposed Fee Schedule, Incentive Program (``OTP Holders 
and OTP Firms may earn one additional Credit from the alternatives 
listed above'').
---------------------------------------------------------------------------

Customer and Professional Customer Posting Credit Tiers in Non-Penny 
Pilot Issues (the ``Posting Credit Tiers'')
    Finally, the Exchange also proposes to introduce a new tier to the 
Posting Credit Tiers, which consist of Tier A and Tier B and provide 
for specified credits if specified volume thresholds have been met.\6\ 
The Exchange is proposing to adopt a Tier C which would provide a $0.90 
per contract credit to OTPs that meet or exceed a qualification basis 
of at least 1.50% of TCADV from Customer and Professional Customer 
Posted Orders in all Issues, of which at least 0.40% of TCADV is from 
Customer and Professional Customer Posted Orders in non-Penny Pilot 
Issues. The Exchange believes proposed Tier C would provide additional 
incentive to direct Customer and Professional Customer order flow to 
the Exchange, which benefits all market participants through increased 
liquidity and enhanced price discovery.
---------------------------------------------------------------------------

    \6\ The Exchange notes that there is a posting credit of $0.75 
associated with a Base Tier for which there is no volume 
requirement.
---------------------------------------------------------------------------

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 Take Fees for Non-Customers 
are reasonable, equitable and not unfairly discriminatory because they 
are competitive with fees charged by other exchanges.\9\ In addition, 
the increased Take Fees are reasonable because the fees would generate 
revenue that would help to support the credits offered for posting 
liquidity, which credits are designed to attract (and compete for) 
order flow to the Exchange, which provides a greater opportunity for 
trading by all market participants. Moreover, the Exchange believes the 
proposed change does not unfairly discriminate because it applies 
equally to all Non-Customers who are removing liquidity.
---------------------------------------------------------------------------

    \9\ See supra n. 4.
---------------------------------------------------------------------------

    The Exchange also believes that the proposed increased additional 
credit under the Incentive Program as well as the addition of proposed 
Tier C to the Posting Credit Tiers are reasonable, equitable, and not 
unfairly discriminatory because the incentives would be available to 
all OTPs that execute posted electronic Customer and Professional 
Customer orders on the Exchange on an equal and non-discriminatory 
basis, in particular because they provide alternative means of 
achieving the same [sic] credit. The Exchange believes that providing 
methods for achieving the credits based on posted electronic Customer 
and Professional Customer Executions in both Penny Pilot and non-Penny 
Pilot issues is equitable and not unfairly discriminatory because it 
would continue to result in more OTPs qualifying for the credits and 
therefore reducing their overall transaction costs on the Exchange. 
Moreover, the Exchange believes the proposed modifications would 
provide additional incentives to direct Customer and Professional 
Customer order flow to the Exchange, which benefits all market 
participants through increased liquidity and enhanced price discovery.
    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 changes would continue to encourage competition, including by 
attracting additional liquidity to the Exchange, which would continue 
to make the Exchange a more competitive venue for, among other things, 
order execution and price discovery. The Exchange does not believe that 
the proposed change will impair the ability of any market participants 
or competing order execution venues to maintain their competitive 
standing in the financial markets. Further, the additional credit under 
the Incentive Program as well as the addition of proposed Tier C to the 
Posting Credit Tiers would be available to all similarly situated OTP 
Holders and OTP Firms that post electronic Customer and Professional 
Customer executions on the Exchange equally and, as such, the proposed 
change would not impose a disparate burden on competition either among 
or between classes of market participants and may, in fact, encourage 
competition.
---------------------------------------------------------------------------

    \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

[[Page 31986]]

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-2016-61 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-2016-61. 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-2016-61 and should 
be submitted on or before June 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. 2016-11876 Filed 5-19-16; 8:45 am]
 BILLING CODE 8011-01-P
31984 Federal Register / Vol. 81, No. 98 / Friday, May 20, 2016 / Notices

Act of 1934 (‘‘Act’’) (15 U.S.C. 78a et collection of information; (c) ways to Exchange’s Web site at www.nyse.com,
seq.). The Commission plans to submit enhance the quality, utility, and clarity at the principal office of the Exchange,
this existing collection of information to of the information to be collected; and and at the Commission’s Public
the Office of Management and Budget (d) ways to minimize the burden of the Reference Room.
(‘‘OMB’’) for extension and approval. collection of information on
Rule 19b–5 provides a temporary II. Self-Regulatory Organization’s
respondents, including through the use
exemption from the rule-filing Statement of the Purpose of, and
of automated collection techniques or
requirements of Section 19(b) of the Act Statutory Basis for, the Proposed Rule
other forms of information technology.
(15 U.S.C. 78s(b)) to self-regulatory Change
Consideration will be given to
organizations (‘‘SROs’’) wishing to comments and suggestions submitted in In its filing with the Commission, the
establish and operate pilot trading writing within 60 days of this self-regulatory organization included
systems. Rule 19b–5 permits an SRO to publication. statements concerning the purpose of,
develop a pilot trading system and to An agency may not conduct or and basis for, the proposed rule change
begin operation of such system shortly sponsor, and a person is not required to and discussed any comments it received
after submitting an initial report on respond to, a collection of information on the proposed rule change. The text
Form PILOT to the Commission. During under the PRA unless it displays a of those statements may be examined at
operation of any such pilot trading currently valid OMB control number. the places specified in Item IV below.
system, the SRO must submit quarterly Please direct your written comments The Exchange has prepared summaries,
reports of the system’s operation to the to: Pamela Dyson, Director/Chief set forth in sections A, B, and C below,
Commission, as well as timely Information Officer, Securities and of the most significant parts of such
amendments describing any material Exchange Commission, c/o Remi Pavlik- statements.
changes to the system. Within two years Simon, 100 F Street NE., Washington,
A. Self-Regulatory Organization’s
of operating such pilot trading system DC 20549 or send an email to: PRA_
Statement of the Purpose of, and
under the exemption afforded by Rule Mailbox@sec.gov.
Statutory Basis for, the Proposed Rule
19b–5, the SRO must submit a rule Dated: May 16, 2016. Change
filing pursuant to Section 19(b)(2) of the Robert W Errett,
Act (15 U.S.C. 78s(b)(2)) to obtain 1. Purpose
Deputy Secretary.
permanent approval of the pilot trading The purpose of this filing is to amend
[FR Doc. 2016–11871 Filed 5–19–16; 8:45 am]
system from the Commission. the Fee Schedule in a number of
BILLING CODE 8011–01–P
The collection of information is different ways, effective May 2, 2016.
designed to allow the Commission to Specifically, the Exchange proposes (i)
maintain an accurate record of all new to increase certain Take Liquidity Fees
SECURITIES AND EXCHANGE
pilot trading systems operated by SROs charged; (ii) to modify the Customer and
COMMISSION
and to determine whether an SRO has Professional Customer Incentive
properly availed itself of the exemption [Release No. 34–77835; File No. SR– Program; and (iii) to introduce a new
afforded by Rule 19b–5, is operating a NYSEARCA–2016–61]
qualification for Customer and
pilot trading system in compliance with Professional Customer Posting Credit
the Act, and is carrying out its statutory Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and Tiers in Non-Penny Pilot Issues, as
oversight obligations under the Act. described below.
The respondents to the collection of Immediate Effectiveness of Proposed
information are national securities Rule Change To Amend the NYSE Arca Transaction Fees for Taking Liquidity
exchanges and national securities Options Fee Schedule
The Exchange proposes to modify the
associations. May 16, 2016. fees paid by Market Makers, Lead
While there are 20 national securities Pursuant to Section 19(b)(1) 1 of the Market Makers, Firms and Broker
exchanges and national securities Securities Exchange Act of 1934 Dealers, and Professional Customers
associations that may avail themselves (‘‘Act’’) 2 and Rule 19b–4 thereunder,3 (collectively, ‘‘Non-Customers’’) for
of the exemption under Rule 19b–5 and notice is hereby given that, on May 2, Taking Liquidity in non-Penny Pilot
the use of Form PILOT, it is estimated 2016, NYSE Arca, Inc. (the ‘‘Exchange’’ Issues (‘‘Take Fees’’). Specifically, the
that approximately three respondents or ‘‘NYSE Arca’’) filed with the Exchange proposes to increase the Take
will file a total of 3 initial reports, 12 Securities and Exchange Commission Fee charged to Non-Customers from
quarterly reports, and 6 amendments on (‘‘Commission’’) the proposed rule $0.99 per contract to $1.08 per contract,
Form PILOT per year, with an estimated change as described in Items I, II, and which is within the range of fees
total annual response burden of 126 III below, which Items have been charged by competing option
hours and an estimated total annual cost prepared by the self-regulatory exchanges.4
burden of $10,047. At an average hourly organization. The Commission is
cost of $272.33, the estimated aggregate Customer and Professional Customer
publishing this notice to solicit Incentive Program (the ‘‘Incentive
related internal cost of compliance with comments on the proposed rule change
respect to Rule 19b–5 for all Program’’)
from interested persons.
respondents is $34,314 per year (126 The Exchange is proposing to increase
burden hours multiplied by $272.33/ I. Self-Regulatory Organization’s one of the credits available under the
hour = $34,314). Statement of the Terms of Substance of Incentive Program, which provides OTP
Written comments are invited on (a) the Proposed Rule Change Holders and OTP Firms (collectively,
mstockstill on DSK3G9T082PROD with NOTICES

whether the proposed collection of The Exchange proposes to amend the ‘‘OTPs’’) five alternatives to earn
information is necessary for the proper NYSE Arca Options Fee Schedule. The
performance of the functions of the proposed rule change is available on the 4 See, e.g., NASDAQ Options Market (‘‘NOM’’)

Commission, including whether the price list, available here, http://
www.nasdaqtrader.com/
information shall have practical utility; 1 15 U.S.C. 78s(b)(1). Micro.aspx?id=optionsPricing (charging non-
(b) the accuracy of the Commission’s 2 15 U.S.C. 78a. customers a $1.10 per contract take liquidity fee in
estimates of the burden of the proposed 3 17 CFR 240.19b–4. Non-Penny Pilot Issues).

VerDate Sep<11>2014 17:40 May 19, 2016 Jkt 238001 PO 00000 Frm 00076 Fmt 4703 Sfmt 4703 E:\FR\FM\20MYN1.SGM 20MYN1
Federal Register / Vol. 81, No. 98 / Friday, May 20, 2016 / Notices 31985

additional posting credits ranging from facilities and does not unfairly Instead, the Exchange believes that the
$0.01 to $0.04.5 Specifically, the discriminate between customers, proposed changes would continue to
Exchange proposes to increase from issuers, brokers or dealers. encourage competition, including by
$0.04 to $0.05 the additional post credit The Exchange believes that the attracting additional liquidity to the
available to OTPs that achieve at least proposed Take Fees for Non-Customers Exchange, which would continue to
1.00% of Total Industry Customer are reasonable, equitable and not make the Exchange a more competitive
equity and ETF option ADV (‘‘TCADV’’) unfairly discriminatory because they are venue for, among other things, order
from Customer and Professional competitive with fees charged by other execution and price discovery. The
Customer Posted Orders in both Penny exchanges.9 In addition, the increased Exchange does not believe that the
Pilot and non-Penny Pilot Issues, of Take Fees are reasonable because the proposed change will impair the ability
which at least 0.25% of TCADV is from fees would generate revenue that would of any market participants or competing
Customer and Professional Customer help to support the credits offered for order execution venues to maintain
Posted Orders in non-Penny Pilot posting liquidity, which credits are their competitive standing in the
Issues. The Exchange believes this designed to attract (and compete for) financial markets. Further, the
increased credit would provide order flow to the Exchange, which additional credit under the Incentive
additional incentive to direct Customer provides a greater opportunity for Program as well as the addition of
and Professional Customer order flow to trading by all market participants. proposed Tier C to the Posting Credit
the Exchange, which benefits all market Moreover, the Exchange believes the Tiers would be available to all similarly
participants through increased liquidity proposed change does not unfairly situated OTP Holders and OTP Firms
and enhanced price discovery. discriminate because it applies equally that post electronic Customer and
to all Non-Customers who are removing Professional Customer executions on the
Customer and Professional Customer liquidity.
Posting Credit Tiers in Non-Penny Pilot Exchange equally and, as such, the
The Exchange also believes that the proposed change would not impose a
Issues (the ‘‘Posting Credit Tiers’’) proposed increased additional credit disparate burden on competition either
Finally, the Exchange also proposes to under the Incentive Program as well as among or between classes of market
introduce a new tier to the Posting the addition of proposed Tier C to the participants and may, in fact, encourage
Credit Tiers, which consist of Tier A Posting Credit Tiers are reasonable, competition.
and Tier B and provide for specified equitable, and not unfairly The Exchange notes that it operates in
credits if specified volume thresholds discriminatory because the incentives a highly competitive market in which
have been met.6 The Exchange is would be available to all OTPs that market participants can readily favor
proposing to adopt a Tier C which execute posted electronic Customer and competing venues. In such an
would provide a $0.90 per contract Professional Customer orders on the environment, the Exchange must
credit to OTPs that meet or exceed a Exchange on an equal and non- continually review, and consider
qualification basis of at least 1.50% of discriminatory basis, in particular adjusting, its fees and credits to remain
TCADV from Customer and Professional because they provide alternative means competitive with other exchanges. For
Customer Posted Orders in all Issues, of of achieving the same [sic] credit. The the reasons described above, the
which at least 0.40% of TCADV is from Exchange believes that providing Exchange believes that the proposed
Customer and Professional Customer methods for achieving the credits based rule change reflects this competitive
Posted Orders in non-Penny Pilot on posted electronic Customer and environment.
Issues. The Exchange believes proposed Professional Customer Executions in
Tier C would provide additional both Penny Pilot and non-Penny Pilot C. Self-Regulatory Organization’s
incentive to direct Customer and issues is equitable and not unfairly Statement on Comments on the
Professional Customer order flow to the discriminatory because it would Proposed Rule Change Received From
Exchange, which benefits all market continue to result in more OTPs Members, Participants, or Others
participants through increased liquidity qualifying for the credits and therefore No written comments were solicited
and enhanced price discovery. reducing their overall transaction costs or received with respect to the proposed
2. Statutory Basis on the Exchange. Moreover, the rule change.
Exchange believes the proposed
The Exchange believes that the III. Date of Effectiveness of the
modifications would provide additional
proposed rule change is consistent with Proposed Rule Change and Timing for
incentives to direct Customer and
Section 6(b) of the Act,7 in general, and Commission Action
Professional Customer order flow to the
furthers the objectives of Sections Exchange, which benefits all market The foregoing rule change is effective
6(b)(4) and (5) of the Act,8 in particular, participants through increased liquidity upon filing pursuant to Section
because it provides for the equitable and enhanced price discovery. 19(b)(3)(A) 11 of the Act and
allocation of reasonable dues, fees, and For these reasons, the Exchange subparagraph (f)(2) of Rule 19b–412
other charges among its members, believes that the proposal is consistent thereunder, because it establishes a due,
issuers and other persons using its with the Act. fee, or other charge imposed by the
Exchange.
5 The Exchange proposes to remove the word B. Self-Regulatory Organization’s At any time within 60 days of the
‘‘four’’ from the italicized comment at the bottom Statement on Burden on Competition filing of such proposed rule change, the
of the Incentive Program table to make clear that
there are currently five alternatives to earn the In accordance with Section 6(b)(8) of Commission summarily may
mstockstill on DSK3G9T082PROD with NOTICES

credit. See proposed Fee Schedule, Incentive the Act,10 the Exchange does not believe temporarily suspend such rule change if
Program (‘‘OTP Holders and OTP Firms may earn that the proposed rule change will it appears to the Commission that such
one additional Credit from the alternatives listed impose any burden on competition that action is necessary or appropriate in the
above’’).
6 The Exchange notes that there is a posting credit
is not necessary or appropriate in public interest, for the protection of
of $0.75 associated with a Base Tier for which there furtherance of the purposes of the Act. investors, or otherwise in furtherance of
is no volume requirement.
7 15 U.S.C. 78f(b). 9 See supra n. 4. 11 15 U.S.C. 78s(b)(3)(A).
8 15 U.S.C. 78f(b)(4) and (5). 10 15 U.S.C. 78f(b)(8). 12 17 CFR 240.19b–4(f)(2).

VerDate Sep<11>2014 17:40 May 19, 2016 Jkt 238001 PO 00000 Frm 00077 Fmt 4703 Sfmt 4703 E:\FR\FM\20MYN1.SGM 20MYN1
31986 Federal Register / Vol. 81, No. 98 / Friday, May 20, 2016 / Notices

the purposes of the Act. If the should refer to File Number SR– II. Self-Regulatory Organization’s
Commission takes such action, the NYSEARCA–2016–61 and should be Statement of the Purpose of, and
Commission shall institute proceedings submitted on or before June 10, 2016. Statutory Basis for, the Proposed Rule
under Section 19(b)(2)(B) 13 of the Act to Change
For the Commission, by the Division of
determine whether the proposed rule In its filing with the Commission, the
Trading and Markets, pursuant to delegated
change should be approved or Exchange included statements
authority.14
disapproved. concerning the purpose of, and basis for,
Robert W. Errett,
IV. Solicitation of Comments the proposed rule change and discussed
Deputy Secretary.
any comments it received on the
Interested persons are invited to [FR Doc. 2016–11876 Filed 5–19–16; 8:45 am]
proposed rule change. The text of these
submit written data, views and BILLING CODE 8011–01–P statements may be examined at the
arguments concerning the foregoing,
places specified in Item IV below. The
including whether the proposed rule
self-regulatory organization has
change is consistent with the Act. SECURITIES AND EXCHANGE prepared summaries, set forth in
Comments may be submitted by any of COMMISSION Sections A, B and C below, of the most
the following methods:
significant aspects of such statements.
Electronic Comments [Release No. 34–77841; File No. SR–
A. Self-Regulatory Organization’s
• Use the Commission’s Internet ISEMercury–2016–11]
Statement of the Purpose of, and
comment form (http://www.sec.gov/ Statutory Basis for, the Proposed Rule
rules/sro.shtml); or Self-Regulatory Organizations; ISE
Change
• Send an email to rule-comments@ Mercury, LLC; Notice of Filing and
sec.gov. Please include File Number SR– Immediate Effectiveness of Proposed 1. Purpose
NYSEARCA–2016–61 on the subject Rule Change To Amend the Schedule Mercury proposes to amend its
line. of Fees Schedule of Fees to add the definitions
Paper Comments of Mercury Appointed Market Maker
May 16, 2016.
and Mercury Appointed Order Flow
• Send paper comments in triplicate Pursuant to Section 19(b)(1) of the Provider effective May 2, 2016, which
to Secretary, Securities and Exchange Securities Exchange Act of 1934 (the would increase opportunities for
Commission, 100 F Street NE., ‘‘Act’’),1 and Rule 19b–4 thereunder,2 members to qualify for the Exchange’s
Washington, DC 20549–1090. notice is hereby given that on May 2, MVP.3
All submissions should refer to File 2016, ISE Mercury, LLC (the Specifically, the Exchange proposes to
Number SR–NYSEARCA–2016–61. This ‘‘Exchange’’ or ‘‘Mercury’’) filed with allow a Mercury Appointed Order Flow
file number should be included on the the Securities and Exchange Provider (‘‘MOFP’’) 4 to designate a
subject line if email is used. To help the Commission (‘‘Commission’’) the Mercury Appointed Market Maker
Commission process and review your proposed rule change, as described in (‘‘MAMM’’) 5 for purposes of Section I,
comments more efficiently, please use Table 4 of the Fee Schedule.6 MOFPs
Items I, II, and III below, which Items
only one method. The Commission will and MAMMs would effectuate the
have been prepared by the self-
post all comments on the Commission’s designation by each sending an email to
Internet Web site (http://www.sec.gov/ regulatory organization. The
the Exchange by the 5th day of the
rules/sro.shtml). Copies of the Commission is publishing this notice to
month with their designations.7 The
submission, all subsequent solicit comments on the proposed rule
Exchange would view the
amendments, all written statements change from interested persons. corresponding emails as acceptance of
with respect to the proposed rule I. Self-Regulatory Organization’s such an appointment and would only
change that are filed with the Statement of the Terms of Substance of recognize one such designation for each
Commission, and all written the Proposed Rule Change party once every 6 months, which
communications relating to the designation would remain in effect until
proposed rule change between the Mercury proposes to amend its the Exchange receives an email from
Commission and any person, other than Schedule of Fees proposes to amend its either party indicating that the
those that may be withheld from the Schedule of Fees [sic] to add the appointment has been terminated.8 The
public in accordance with the definitions of ‘‘Mercury Appointed proposed new concepts would be
provisions of 5 U.S.C. 552, will be Market Maker’’ and ‘‘Mercury applicable to, and included in, Section
available for Web site viewing and Appointed Order Flow Provider’’
printing in the Commission’s Public effective May 2, 2016, which would 3 The MVP tiers are determined by a member’s

Reference Room, 100 F Street NE., average daily volume of Priority Customer Regular
increase opportunities for Market Orders, in Penny and Non-Penny Pilot Symbols
Washington, DC 20549, on official Makers to qualify for the Exchange’s traded on the Exchange.
business days between the hours of Member Volume Program (‘‘MVP’’). The 4 A ‘‘MOFP’’ is an Electronic Access Member who
10:00 a.m. and 3:00 p.m. Copies of the has been appointed by a Mercury Market Maker
text of the proposed rule change is
filing also will be available for pursuant to Section I, Table 4 of the ISE Mercury
available on the Exchange’s Internet Fee Schedule.
inspection and copying at the principal
office of the Exchange. All comments Web site at http://www.ise.com, at the 5 A ‘‘MAMM’’ is a Mercury Market Maker who

principal office of the Exchange, and at has been appointed by an Electronic Access
received will be posted without change;
mstockstill on DSK3G9T082PROD with NOTICES

Member pursuant to Section I, Table 4 of the ISE
the Commission does not edit personal the Commission’s Public Reference Mercury Fee Schedule.
identifying information from Room. 6 See proposed ISE Mercury Fee Schedule,

submissions. You should submit only Preface.
7 See proposed ISE Mercury Fee Schedule,
information that you wish to make Section 1, Table 4. Members should direct their
available publicly. All submissions 14 17 CFR 200.30–3(a)(12). emails designating a MAMM/MOFP to bizdev@
1 15 U.S.C. 78s(b)(1). ise.com.
13 15 U.S.C. 78s(b)(2)(B). 2 17 CFR 240.19b–4. 8 See id.

VerDate Sep<11>2014 17:40 May 19, 2016 Jkt 238001 PO 00000 Frm 00078 Fmt 4703 Sfmt 4703 E:\FR\FM\20MYN1.SGM 20MYN1
Document Created: 2016-05-20 01:59:35
Document Modified: 2016-05-20 01:59:35
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 31984