81 FR 3545 - Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange Rule 7018
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 13 (January 21, 2016)
Federal Register Volume 81, Issue 13 (January 21, 2016)
| Page Range | 3545-3547 | |
| FR Document | 2016-01064 |
[Federal Register Volume 81, Number 13 (Thursday, January 21, 2016)] [Notices] [Pages 3545-3547] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-01064] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-76915; File No. SR-BX-2016-001] Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange Rule 7018 January 14, 2016. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that on January 4, 2016, NASDAQ OMX BX, Inc. (``BX'' or ``Exchange'') filed with the Securities and Exchange Commission (``SEC'' or ``Commission'') the proposed rule change as described in Items I, II, and III below, which Items have been prepared by the Exchange. 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\ 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 fee schedule under Exchange Rule 7018(a) with respect to execution and routing of orders in securities priced at $1 or more per share. The text of the proposed rule change is also available on the Exchange's Web site at http://nasdaqomxbx.cchwallstreet.com, at the principal office of the Exchange, and at the Commission's Public Reference Room. [[Page 3546]] 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 Exchange 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 these 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 aspects of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange is proposing to amend the fee schedule under BX Rule 7018(a), relating to fees and credits provided for orders in securities priced and $1 or more per share that execute on BX. Under BX Rule 7018(a), the Exchange provides credits to member firms that access liquidity on BX. The Exchange is proposing to add a new credit tier for orders that access liquidity (excluding orders with midpoint pegging and excluding orders that receive price improvement and execute against an order with midpoint pegging). The new credit tier will be for a member that adds and accesses liquidity equal to or exceeding 0.50% of total consolidated volume during a month. The proposed credit for the tier will be $0.0017 per share executed. The Exchange also proposes to amend a fee for providing liquidity through the NASDAQ OMX BX Equities System (the ``System''), by eliminating one of the criteria applicable to the fee and decreasing the fee. Specifically, the current fee for a displayed order entered by a member that (i) adds liquidity equal to or exceeding 0.25% of total Consolidated Volume during a month; and (ii) adds and accesses liquidity equal to or exceeding 0.50% of total Consolidated Volume during a month is $0.0016 per share executed. The Exchange proposes to eliminate criteria (i) and decrease the fee to $0.0014 per share executed. 2. Statutory Basis The Exchange believes that its proposal is consistent with Section 6(b) of the Act,\3\ in general, and furthers the objectives of Sections 6(b)(4) and 6(b)(5) of the Act,\4\ in particular, in that it provides for the equitable allocation of reasonable dues, fees and other fees among members and issuers and other persons using any facility or system which the Exchange operates or controls, and is not designed to permit unfair discrimination between customers, issuers, brokers, or dealers. --------------------------------------------------------------------------- \3\ 15 U.S.C. 78f(b). \4\ 15 U.S.C. 78f(b)(4) and (5). --------------------------------------------------------------------------- The Commission and the courts have repeatedly expressed their preference for competition over regulatory intervention in determining prices, products, and services in the securities markets. In Regulation NMS, for example, the Commission indicated that market forces should generally determine the price of non-core market data because national market system regulation ``has been remarkably successful in promoting market competition in its broader forms that are most important to investors and listed companies.'' \5\ Likewise, in NetCoalition v. NYSE Arca, Inc.\6\ (``NetCoalition'') the DC Circuit upheld the Commission's use of a market-based approach in evaluating the fairness of market data fees against a challenge claiming that Congress mandated a cost- based approach.\7\ As the court emphasized, the Commission ``intended in Regulation NMS that `market forces, rather than regulatory requirements' play a role in determining the market data . . . to be made available to investors and at what cost.'' \8\ --------------------------------------------------------------------------- \5\ Securities Exchange Act Release No. 51808 at 37499 (June 9, 2005) (``Regulation NMS Adopting Release''). \6\ NetCoalition v. NYSE Arca, Inc., 615 F.3d 525 (D.C. Cir. 2010). \7\ See NetCoalition, at 534. \8\ Id. at 537. --------------------------------------------------------------------------- Further, ``[n]o one disputes that competition for order flow is `fierce.' . . . As the SEC explained, `[i]n the U.S. national market system, buyers and sellers of securities, and the broker-dealers that act as their order-routing agents, have a wide range of choices of where to route orders for execution'; [and] `no exchange can afford to take its market share percentages for granted' because `no exchange possesses a monopoly, regulatory or otherwise, in the execution of order flow from broker dealers'. . . .'' \9\ --------------------------------------------------------------------------- \9\ Id. at 539 (quoting ArcaBook Order, 73 FR at 74782-74783). --------------------------------------------------------------------------- The Exchange believes that the proposed new credit tier for orders that access liquidity (excluding orders with midpoint pegging and excluding orders that receive price improvement and execute against an order with midpoint pegging), entered by a member that adds and accesses liquidity equal to or exceeding 0.50% of total consolidated volume during a month is reasonable because it provides an additional opportunity for market participants to receive credits for participation on BX and the Exchange desires to further incentivize member firms to participate in the Exchange by removing liquidity. The Exchange also believes that the proposed rule change is an equitable allocation and is not unfairly discriminatory because the Exchange will provide the same credit to all similarly situated members that achieve the level of total consolidated volume required by the tier. BX believes that the proposed fee decrease from $0.0016 per share executed to $0.0014 per share executed, as well as the elimination of the first criteria below (criteria (i)), for a displayed order entered by a member that (i) adds liquidity equal to or exceeding 0.25% of total Consolidated Volume during a month; and (ii) adds and accesses liquidity equal to or exceeding 0.50% of total Consolidated Volume during a month are reasonable because decreasing the fee and eliminating the first criteria will provide firms more flexibility in attaining the tier and further incentivize participation in the market. The Exchange also believes that this proposed rule change is an equitable allocation and is not unfairly discriminatory because it will further encourage market participant activity and will also support price discovery and liquidity provision. The Exchange also believes this proposed rule change is an equitable allocation and is not unfairly discriminatory because the Exchange will apply the same fee and credit to all similarly situated members. Finally, BX notes that it operates in a highly competitive market in which market participants can readily favor competing venues if they deem fee levels at a particular venue to be excessive or credit opportunities available at other venues to be more favorable. In such an environment, BX must continually adjust its fees and credits to remain competitive with other exchanges and with alternative trading systems that have been exempted from compliance with the statutory standards applicable to exchanges. The changes reflect this environment because they reflect changes to both credits and fees designed to incentivize changes in market participant behavior to the benefit of the market overall. B. Self-Regulatory Organization's Statement on Burden on Competition The Exchange does not believe that the proposed rule change will result in [[Page 3547]] a burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act, as amended.\10\ In terms of inter-market competition, the Exchange notes that it operates in a highly competitive market in which market participants can readily favor competing venues if they deem fee levels at a particular venue to be excessive, or credit opportunities available at other venues to be more favorable. In such an environment, the Exchange must continually adjust its fees and credits to remain competitive with other exchanges and with alternative trading systems that have been exempted from compliance with the statutory standards applicable to exchanges. Because competitors are free to modify their own fees and credits in response, and because market participants may readily adjust their order routing practices, the Exchange believes that the degree to which fee changes in this market may impose any burden on competition is extremely limited. In this instance, both the proposed new credit tier and the modification to the fee are subject to extensive competition both from other exchanges and from off-exchange venues. --------------------------------------------------------------------------- \10\ 15 U.S.C. 78f(b)(8). --------------------------------------------------------------------------- In sum, if the changes proposed herein are unattractive to market participants, it is likely that the Exchange will lose market share as a result. Accordingly, the Exchange does not believe that the proposed changes will impair the ability of members or competing order execution venues to maintain their competitive standing in the financial markets. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others No written comments were either solicited or received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing change has become effective pursuant to Section 19(b)(3)(A) of the Act \11\ and paragraph (f) of Rule 19b-4 \12\ thereunder. At any time within 60 days of the filing of the 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 to determine whether the proposed rule should be approved or disapproved. --------------------------------------------------------------------------- \11\ 15 U.S.C. 78s(b)(3)(A). \12\ 17 CFR 240.19b-4(f). --------------------------------------------------------------------------- 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-BX-2016-001 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-BX-2016-001. 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-BX-2016-001, and should be submitted on or before February 11, 2016. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\13\ --------------------------------------------------------------------------- \13\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2016-01064 Filed 1-20-16; 8:45 am] BILLING CODE 8011-01-P
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Act, or the rules and regulations If so, how? Will the proposed rule change, as identifying information from
thereunder. modified by Partial Amendment No. 1, create submissions. You should submit only
Although there do not appear to be competitive advantages or disadvantages for information that you wish to make
any issues relevant to approval or member firms based on their size? If so, how? available publicly. All submissions
disapproval that would be facilitated by 4. What are commenters’ views on the
impact of the proposed rule change, as
should refer to File Number SR–FINRA–
an oral presentation of views, data, and modified by Partial Amendment No. 1, on 2015–036 and should be submitted on
arguments, the Commission will other affected parties, such as non-member or before February 11, 2016. If
consider, pursuant to Rule 19b–4, any firms and other market participants? comments are received, any rebuttal
request for an opportunity to make an 5. What are commenters’ views on the comments should be submitted by
oral presentation.167 exception for multifamily housing and March 7, 2016.
Interested persons are invited to project loan securities in the proposed rule
submit written data, views, and change, as modified by Partial Amendment For the Commission, by the Division of
No. 1? Does the proposed exception for Trading and Markets, pursuant to delegated
arguments by February 11, 2016
multifamily and project loan securities pose authority.168
concerning whether the proposed rule
change should be approved or any risks to FINRA members, as well as other Robert W. Errett,
market participants? If so, please describe Deputy Secretary.
disapproved. Any person who wishes to
these risks?
file a rebuttal to any other person’s 6. What are commenters’ views on the [FR Doc. 2016–01058 Filed 1–20–16; 8:45 am]
submission must file that rebuttal by implementation time required to comply BILLING CODE 8011–01–P
March 7, 2016. In light of the concerns with the proposed rule change, as modified
raised by the proposed rule change, as by Partial Amendment No. 1?
modified by Partial Amendment No. 1, SECURITIES AND EXCHANGE
as discussed above, the Commission Comments may be submitted by any
of the following methods: COMMISSION
invites additional comment on the
proposed rule change, as modified by Electronic Comments [Release No. 34–76915; File No. SR–BX–
Partial Amendment No. 1, as the
• Use the Commission’s Internet 2016–001]
Commission continues its analysis of
comment form (http://www.sec.gov/
whether the proposed rule change, as Self-Regulatory Organizations;
rules/sro.shtml); or
modified by Partial Amendment No. 1, NASDAQ OMX BX, Inc.; Notice of Filing
• Send an email to rule-comments@
is consistent with Section 15A(b)(6), or and Immediate Effectiveness of a
sec.gov. Please include File Number SR–
any other provision of the Exchange Proposed Rule Change To Amend
FINRA–2015–036 on the subject line.
Act, or the rules and regulations Exchange Rule 7018
thereunder. The Commission is asking Paper Comments
that commenters address the merits of January 14, 2016.
• Send paper comments in triplicate
FINRA’s statements in support of its to Secretary, Securities and Exchange Pursuant to Section 19(b)(1) of the
proposal, as modified by Partial Commission, 100 F Street NE., Securities Exchange Act of 1934
Amendment No. 1, as well as the Washington, DC 20549–1090. (‘‘Act’’),1 and Rule 19b–4 thereunder,2
comments received on the proposal, in notice is hereby given that on January 4,
addition to any other comments they All submissions should refer to File
Number SR–FINRA–2015–036. This file 2016, NASDAQ OMX BX, Inc. (‘‘BX’’ or
may wish to submit about the proposed ‘‘Exchange’’) filed with the Securities
rule change, as modified by Partial number should be included on the
subject line if email is used. To help the and Exchange Commission (‘‘SEC’’ or
Amendment No. 1. Specifically, the ‘‘Commission’’) the proposed rule
Commission is considering and Commission process and review your
comments more efficiently, please use change as described in Items I, II, and
requesting comment, including III below, which Items have been
empirical data in support of comments, only one method. The Commission will
post all comments on the Commission’s prepared by the Exchange. The
in response to the following questions: Commission is publishing this notice to
Internet Web site (http://www.sec.gov/
1. Will the proposed rule change, as rules/sro.shtml). Copies of the solicit comments on the proposed rule
modified by Partial Amendment No. 1, affect submission, all subsequent change from interested persons.
the operation and structure of the TBA
markets as it exists today? If so, how? amendments, all written statements I. Self-Regulatory Organization’s
2. What are commenters’ views with with respect to the proposed rule Statement of the Terms of Substance of
respect to the benefits and costs of the change that are filed with the the Proposed Rule Change
proposed rule change, as modified by Partial Commission, and all written
Amendment No. 1? What implementation communications relating to the The Exchange proposes to amend the
and ongoing costs will result, if any, from proposed rule change between the fee schedule under Exchange Rule
complying with the proposed rule change, as Commission and any person, other than 7018(a) with respect to execution and
modified by Partial Amendment No. 1?
3. Will the proposed rule change, as
those that may be withheld from the routing of orders in securities priced at
modified by Partial Amendment No. 1, affect public in accordance with the $1 or more per share.
FINRA member firms differently based on provisions of 5 U.S.C. 552, will be The text of the proposed rule change
their size (i.e., small, medium or large firms)? available for Web site viewing and is also available on the Exchange’s Web
printing in the Commission’s Public site at http://
167 Exchange Act Section 19(b)(2), as amended by Reference Room, 100 F Street NE.,
asabaliauskas on DSK9F6TC42PROD with NOTICES
nasdaqomxbx.cchwallstreet.com, at the
the Securities Acts Amendments of 1975, Pub. L. Washington, DC 20549, on official
94–29, 89 Stat. 97 (1975), grants the Commission principal office of the Exchange, and at
flexibility to determine what type of proceedings—
business days between the hours of 10 the Commission’s Public Reference
either oral or notice and opportunity for written a.m. and 3 p.m. Copies of such filing Room.
comments—is appropriate for consideration of a also will be available for inspection and
particular proposal by a self-regulatory copying at the principal office of 168 17 CFR 200.30–3(a)(12); 17 CFR 200.30–
organization. See Securities Acts Amendments of
1975, Report of the Senate Committee on Banking,
FINRA. All comments received will be 3(a)(57).
Housing and Urban Affairs to Accompany S. 249, posted without change. The 1 15 U.S.C. 78s(b)(1).
S. Rep. No. 75, 94th Cong., 1st Sess. 30 (1975). Commission does not edit personal 2 17 CFR 240.19b–4.
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II. Self-Regulatory Organization’s of the Act,4 in particular, in that it exceeding 0.50% of total consolidated
Statement of the Purpose of, and provides for the equitable allocation of volume during a month is reasonable
Statutory Basis for, the Proposed Rule reasonable dues, fees and other fees because it provides an additional
Change among members and issuers and other opportunity for market participants to
persons using any facility or system receive credits for participation on BX
In its filing with the Commission, the
which the Exchange operates or and the Exchange desires to further
Exchange included statements
controls, and is not designed to permit incentivize member firms to participate
concerning the purpose of and basis for
unfair discrimination between in the Exchange by removing liquidity.
the proposed rule change and discussed customers, issuers, brokers, or dealers. The Exchange also believes that the
any comments it received on the The Commission and the courts have proposed rule change is an equitable
proposed rule change. The text of these repeatedly expressed their preference allocation and is not unfairly
statements may be examined at the for competition over regulatory discriminatory because the Exchange
places specified in Item IV below. The intervention in determining prices, will provide the same credit to all
Exchange has prepared summaries, set products, and services in the securities similarly situated members that achieve
forth in sections A, B, and C below, of markets. In Regulation NMS, for the level of total consolidated volume
the most significant aspects of such example, the Commission indicated that required by the tier.
statements. market forces should generally BX believes that the proposed fee
A. Self-Regulatory Organization’s determine the price of non-core market decrease from $0.0016 per share
Statement of the Purpose of, and data because national market system executed to $0.0014 per share executed,
Statutory Basis for, the Proposed Rule regulation ‘‘has been remarkably as well as the elimination of the first
Change successful in promoting market criteria below (criteria (i)), for a
competition in its broader forms that are displayed order entered by a member
1. Purpose most important to investors and listed that (i) adds liquidity equal to or
The Exchange is proposing to amend companies.’’ 5 Likewise, in NetCoalition exceeding 0.25% of total Consolidated
the fee schedule under BX Rule 7018(a), v. NYSE Arca, Inc.6 (‘‘NetCoalition’’) the Volume during a month; and (ii) adds
relating to fees and credits provided for DC Circuit upheld the Commission’s use and accesses liquidity equal to or
orders in securities priced and $1 or of a market-based approach in exceeding 0.50% of total Consolidated
more per share that execute on BX. evaluating the fairness of market data Volume during a month are reasonable
Under BX Rule 7018(a), the Exchange fees against a challenge claiming that because decreasing the fee and
provides credits to member firms that Congress mandated a cost-based eliminating the first criteria will provide
access liquidity on BX. The Exchange is approach.7 As the court emphasized, the firms more flexibility in attaining the
proposing to add a new credit tier for Commission ‘‘intended in Regulation tier and further incentivize participation
orders that access liquidity (excluding NMS that ‘market forces, rather than in the market.
regulatory requirements’ play a role in The Exchange also believes that this
orders with midpoint pegging and
determining the market data . . . to be proposed rule change is an equitable
excluding orders that receive price
made available to investors and at what allocation and is not unfairly
improvement and execute against an
cost.’’ 8 discriminatory because it will further
order with midpoint pegging). The new
Further, ‘‘[n]o one disputes that encourage market participant activity
credit tier will be for a member that and will also support price discovery
adds and accesses liquidity equal to or competition for order flow is ‘fierce.’
. . . As the SEC explained, ‘[i]n the U.S. and liquidity provision. The Exchange
exceeding 0.50% of total consolidated also believes this proposed rule change
volume during a month. The proposed national market system, buyers and
sellers of securities, and the broker- is an equitable allocation and is not
credit for the tier will be $0.0017 per unfairly discriminatory because the
share executed. dealers that act as their order-routing
agents, have a wide range of choices of Exchange will apply the same fee and
The Exchange also proposes to amend credit to all similarly situated members.
where to route orders for execution’;
a fee for providing liquidity through the Finally, BX notes that it operates in a
[and] ‘no exchange can afford to take its
NASDAQ OMX BX Equities System (the highly competitive market in which
market share percentages for granted’
‘‘System’’), by eliminating one of the market participants can readily favor
because ‘no exchange possesses a
criteria applicable to the fee and competing venues if they deem fee
monopoly, regulatory or otherwise, in
decreasing the fee. Specifically, the levels at a particular venue to be
the execution of order flow from broker
current fee for a displayed order entered excessive or credit opportunities
dealers’. . . .’’ 9
by a member that (i) adds liquidity The Exchange believes that the available at other venues to be more
equal to or exceeding 0.25% of total proposed new credit tier for orders that favorable. In such an environment, BX
Consolidated Volume during a month; access liquidity (excluding orders with must continually adjust its fees and
and (ii) adds and accesses liquidity midpoint pegging and excluding orders credits to remain competitive with other
equal to or exceeding 0.50% of total that receive price improvement and exchanges and with alternative trading
Consolidated Volume during a month is execute against an order with midpoint systems that have been exempted from
$0.0016 per share executed. The pegging), entered by a member that adds compliance with the statutory standards
Exchange proposes to eliminate criteria and accesses liquidity equal to or applicable to exchanges. The changes
(i) and decrease the fee to $0.0014 per reflect this environment because they
share executed. reflect changes to both credits and fees
asabaliauskas on DSK9F6TC42PROD with NOTICES
4 15 U.S.C. 78f(b)(4) and (5).
2. Statutory Basis 5 Securities Exchange Act Release No. 51808 at designed to incentivize changes in
37499 (June 9, 2005) (‘‘Regulation NMS Adopting market participant behavior to the
The Exchange believes that its Release’’).
benefit of the market overall.
6 NetCoalition v. NYSE Arca, Inc., 615 F.3d 525
proposal is consistent with Section 6(b)
(D.C. Cir. 2010). B. Self-Regulatory Organization’s
of the Act,3 in general, and furthers the 7 See NetCoalition, at 534.
objectives of Sections 6(b)(4) and 6(b)(5) 8 Id. at 537.
Statement on Burden on Competition
9 Id. at 539 (quoting ArcaBook Order, 73 FR at The Exchange does not believe that
3 15 U.S.C. 78f(b). 74782–74783). the proposed rule change will result in
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![Federal Register / Vol. 81, No. 13 / Thursday, January 21, 2016 / Notices 3547
a burden on competition that is not Commission takes such action, the For the Commission, by the Division of
necessary or appropriate in furtherance Commission shall institute proceedings Trading and Markets, pursuant to delegated
of the purposes of the Act, as to determine whether the proposed rule authority.13
amended.10 In terms of inter-market should be approved or disapproved. Robert W. Errett,
competition, the Exchange notes that it Deputy Secretary.
IV. Solicitation of Comments
operates in a highly competitive market [FR Doc. 2016–01064 Filed 1–20–16; 8:45 am]
in which market participants can Interested persons are invited to BILLING CODE 8011–01–P
readily favor competing venues if they submit written data, views, and
deem fee levels at a particular venue to arguments concerning the foregoing,
be excessive, or credit opportunities including whether the proposed rule SECURITIES AND EXCHANGE
available at other venues to be more change is consistent with the Act. COMMISSION
favorable. In such an environment, the Comments may be submitted by any of [Release No. 34–76903; File No. SR–
Exchange must continually adjust its the following methods: NYSEARCA–2016–01]
fees and credits to remain competitive
Electronic Comments
with other exchanges and with Self-Regulatory Organizations; NYSE
alternative trading systems that have • Use the Commission’s Internet Arca, Inc.; Notice of Filing and
been exempted from compliance with comment form (http://www.sec.gov/ Immediate Effectiveness of Proposed
the statutory standards applicable to rules/sro.shtml); or Rule Change Amending the Fees for
exchanges. Because competitors are free • Send an email to rule-comments@ NYSE ArcaBook
to modify their own fees and credits in sec.gov. Please include File Number SR–
response, and because market BX–2016–001 on the subject line. January 14, 2016.
participants may readily adjust their Pursuant to Section 19(b)(1) 1 of the
Paper Comments Securities Exchange Act of 1934 (the
order routing practices, the Exchange
believes that the degree to which fee • Send paper comments in triplicate ‘‘Act’’) 2 and Rule 19b–4 thereunder,3
changes in this market may impose any to Secretary, Securities and Exchange notice is hereby given that, on January
burden on competition is extremely Commission, 100 F Street NE., 4, 2016, NYSE Arca, Inc. (the
limited. In this instance, both the Washington, DC 20549–1090. ‘‘Exchange’’ or ‘‘NYSE Arca’’) filed with
proposed new credit tier and the All submissions should refer to File the Securities and Exchange
modification to the fee are subject to Number SR–BX–2016–001. This file Commission (the ‘‘Commission’’ or
extensive competition both from other number should be included on the ‘‘SEC’’) the proposed rule change as
exchanges and from off-exchange subject line if email is used. To help the described in Items I, II, and III below,
venues. Commission process and review your which Items have been prepared by the
In sum, if the changes proposed comments more efficiently, please use self-regulatory organization. The
herein are unattractive to market only one method. The Commission will Commission is publishing this notice to
participants, it is likely that the post all comments on the Commission’s solicit comments on the proposed rule
Exchange will lose market share as a Internet Web site (http://www.sec.gov/ change from interested persons.
result. Accordingly, the Exchange does rules/sro.shtml). Copies of the I. Self-Regulatory Organization’s
not believe that the proposed changes submission, all subsequent Statement of the Terms of Substance of
will impair the ability of members or amendments, all written statements the Proposed Rule Change
competing order execution venues to with respect to the proposed rule
maintain their competitive standing in The Exchange proposes to amend the
change that are filed with the
the financial markets. fees for NYSE ArcaBook to: (1) Establish
Commission, and all written
a multiple data feed fee; (2) discontinue
C. Self-Regulatory Organization’s communications relating to the
fees relating to managed non-display;
Statement on Comments on the proposed rule change between the
and (3) modify the application of the
Proposed Rule Change Received From Commission and any person, other than
non-professional user fee cap. The
Members, Participants, or Others those that may be withheld from the
proposed rule change is available on the
public in accordance with the
No written comments were either Exchange’s Web site at www.nyse.com,
provisions of 5 U.S.C. 552, will be
solicited or received. at the principal office of the Exchange,
available for Web site viewing and
and at the Commission’s Public
III. Date of Effectiveness of the printing in the Commission’s Public
Reference Room.
Proposed Rule Change and Timing for Reference Room, 100 F Street NE.,
Commission Action Washington, DC 20549 on official II. Self-Regulatory Organization’s
The foregoing change has become business days between the hours of Statement of the Purpose of, and
effective pursuant to Section 19(b)(3)(A) 10:00 a.m. and 3:00 p.m. Copies of the Statutory Basis for, the Proposed Rule
of the Act 11 and paragraph (f) of Rule filing also will be available for Change
19b–4 12 thereunder. At any time within inspection and copying at the principal In its filing with the Commission, the
60 days of the filing of the proposed rule office of the Exchange. All comments self-regulatory organization included
change, the Commission summarily may received will be posted without change; statements concerning the purpose of,
temporarily suspend such rule change if the Commission does not edit personal and basis for, the proposed rule change
identifying information from
asabaliauskas on DSK9F6TC42PROD with NOTICES
it appears to the Commission that such and discussed any comments it received
action is necessary or appropriate in the submissions. You should submit only on the proposed rule change. The text
public interest, for the protection of information that you wish to make of those statements may be examined at
investors, or otherwise in furtherance of available publicly. All submissions the places specified in Item IV below.
the purposes of the Act. If the should refer to File Number SR–BX– The Exchange has prepared summaries,
2016–001, and should be submitted on
10 15 U.S.C. 78f(b)(8). or before February 11, 2016. 1 15 U.S.C. 78s(b)(1).
11 15 U.S.C. 78s(b)(3)(A). 2 15 U.S.C. 78a.
12 17 CFR 240.19b–4(f). 13 17 CFR 200.30–3(a)(12). 3 17 CFR 240.19b–4.
VerDate Sep<11>2014 18:26 Jan 20, 2016 Jkt 238001 PO 00000 Frm 00171 Fmt 4703 Sfmt 4703 E:\FR\FM\21JAN1.SGM 21JAN1](https://thefederalregister.org/doc/81_FR_3558/page/3.svg)
Document Created: 2018-02-02 12:33:24
Document Modified: 2018-02-02 12:33:24
| 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 3545 |
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