81 FR 41634 - Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Modifying the NYSE Amex Options Fee Schedule
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 123 (June 27, 2016)
Federal Register Volume 81, Issue 123 (June 27, 2016)
| Page Range | 41634-41636 | |
| FR Document | 2016-15066 |
[Federal Register Volume 81, Number 123 (Monday, June 27, 2016)] [Notices] [Pages 41634-41636] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-15066] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-78117; File No. SR-NYSEMKT-2016-60] Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Modifying the NYSE Amex Options Fee Schedule June 21, 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 June 9, 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 June 9, 2016. The proposed change is available on the Exchange's Web site at www.nyse.com, at the principal office of the Exchange, and at the Commission's Public Reference Room. II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the self-regulatory organization included statements concerning the purpose of, and basis for, the proposed rule change and discussed any comments it received on the proposed rule change. The text of those statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant parts of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change 1. Purpose The purpose of this filing is to amend Sections I. E. and G. of the Fee Schedule \4\ to adjust fees and credits payable, effective on June 9, 2016. --------------------------------------------------------------------------- \4\ See Fee Schedule, Sections I. E. (Amex Customer Engagement (``ACE'') Program--Standard Options) and G. (CUBE Auction Fees & Credits), available here, https://www.nyse.com/publicdocs/nyse/markets/amex-options/NYSE_Amex_Options_Fee_Schedule.pdf. --------------------------------------------------------------------------- Proposed changes to ACE Program Section I.E. of the Fee Schedule describes the Exchange's ACE Program, which features five tiers expressed as a percentage of total industry Customer equity and Exchange Traded Fund (``ETF'') option average daily volume \5\ and provides two alternative methods through which Order Flow Providers (each an ``OFP'') may receive per contract credits for Electronic Customer volume that the OFP, as agent, submits to the Exchange. --------------------------------------------------------------------------- \5\ The volume thresholds are based on an NYSE Amex Options Market Makers' volume transacted Electronically as a percentage of total industry Customer equity and ETF options volumes as reported by the Options Clearing Corporation (the ``OCC''). Total industry Customer equity and ETF option volume is comprised of those equity and ETF contracts that clear in the Customer account type at OCC and does not include contracts that clear in either the Firm or Market Maker account type at OCC or contracts overlying a security other than an equity or ETF security. See OCC Monthly Statistics Reports, available here, http://www.theocc.com/webapps/monthly-volume-reports. --------------------------------------------------------------------------- The Exchange proposes to modify the ACE Program by increasing certain of the credits available for Tiers 2 through 5 as illustrated in the table below, with proposed additions appearing underscored and proposed deletions appearing in brackets: * * * * * [[Page 41635]] -------------------------------------------------------------------------------------------------------------------------------------------------------- ACE Program--Standard Options Credits Payable On Customer Volume Only -------------------------------------------------------------------------------------------------------------------------------------------------------- Total Electronic ADV (of which 20% or greater of the 1 Year 3 Year Customer Electronic minimum qualifying Customer Enhanced Enhanced Tier ADV as a % of Industry OR volume for each Tier Volume Customer Customer Customer Equity and must be Customer) as Credits Volume Volume ETF Options ADV a % of Industry Credits Credits Customer Equity and ETF Options ADV -------------------------------------------------------------------------------------------------------------------------------------------------------- 1.................................. 0.00% to 0.60%........ N/A.................. $0.00 $0.00 $0.00 2.................................. >0.60% to 0.80% or N/A.................. [(0.16] [(0.16)] [(0.16)] >=0.35% over October (0.18) (0.18) (0.18) 2015 volumes. 3.................................. >0.80% to 1.25%....... 1.50% to 2.50% of [(0.17)] [(0.18)] [(0.19)] which 20% or greater (0.19) (0.20) (0.21) of 1.50% must be Customer. 4.................................. >1.25 to 1.75%........ >2.50% to 3.50% of [(0.18)] [(0.19)] [(0.21)] which 20% or greater (0.20) (0.21) (0.22) of 2.50% must be Customer. 5.................................. >1.75%................ >3.50% of which 20% [(0.19)] [(0.21)] [(0.23)] or greater of 3.5% (0.22) (0.23) (0.24) must be Customer. -------------------------------------------------------------------------------------------------------------------------------------------------------- The proposed amendments to the ACE Program are designed to enhance the rebates, which the Exchange believes would attract more volume and liquidity to the Exchange to the benefit of Exchange participants through increased opportunities to trade as well as enhancing price discovery. Proposed Changes to CUBE Pricing Section I.G. of the Fee Schedule sets forth the rates for per contract fees and credits for executions associated with a CUBE Auction. The Exchange is proposing to adjust rates for RFR Response fees and Initiating Credits and Rebates. Specifically, the Exchange proposes to adjust RFR Response fees for Non-Customers to $0.50 for symbols in the Penny Pilot, from $0.12; and to adjust RFR Response fees for Non-Customers for symbols not in the Penny Pilot to $1.05, from $0.12. The Exchange also proposes to adjust the Initiating Participant credits and rebates to $0.30 for symbols in the Penny Pilot, $0.70 for symbols not in the Penny Pilot, an increase from the $0.05 Initiating Participant credit in all names. The Exchange also proposes to increase the ACE Initiating Participant Rebate from $0.05 to $0.12. The proposed changes are designed to increase incentives for submission of CUBE Orders, which should maximize price improvement opportunities for Customers. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with Section 6(b) of the Act,\6\ in general, and furthers the objectives of Sections 6(b)(4) and (5) of the Act,\7\ 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. --------------------------------------------------------------------------- \6\ 15 U.S.C. 78f(b). \7\ 15 U.S.C. 78f(b)(4) and (5). --------------------------------------------------------------------------- The Exchange believes that the proposed amendments to the ACE Program are reasonable, equitable and not unfairly discriminatory because they would enhance the incentives to Order Flow Providers to transact Customer orders on the Exchange, which would benefit all market participants by providing more trading opportunities and tighter spreads, even to those market participants that do not participate in the ACE Program. Additionally, the Exchange believes the proposed changes to the ACE Program are consistent with the Act because they may attract greater volume and liquidity to the Exchange, which would benefit all market participants by providing tighter quoting and better prices, all of which perfects the mechanism for a free and open market and national market system. The Exchange believes that the proposed changes to CUBE Auction fees are reasonable, equitable and not unfairly discriminatory. Specifically, the proposed increases to both the Initiating Participant Credits (for both Penny Pilot and Non-Penny Pilot) as well as the fees associated with RFR Responses that participate in the CUBE are reasonable, equitable and non-discriminatory because they apply equally to all ATP Holders that choose to participate in the CUBE, and access to the Exchange is offered on terms that are not unfairly discriminatory. The Exchange believes the proposed changes to CUBE are reasonable, as they are similar to fees charged for similar auction mechanisms on other markets, such as BOX Options Exchange LLC (``BOX''), which charges a total fee of $1.05 for a Market Maker response to a PIP auction in a non-Penny Pilot issue.\8\ Similarly, the Exchange also notes that the proposed change to charge $0.50 for RFR Responses in Penny Pilot Issues is consistent with, or lower than, rates charged by competing option exchanges, including BOX (charging total response fee of $0.65 to market makers and $0.72 to all other participants); NASDAQ PHLX (``PHLX'') (charging a total response fee of $0.55 to market makers and $0.48 for all other participants) and Miami International Securities Exchange, Inc. (``MIAX'') (charging response fee of $0.50 to market participants).\9\ --------------------------------------------------------------------------- \8\ See BOX Fee Schedule, available here, http://boxexchange.com/assets/BOX_Fee_Schedule.pdf. \9\ See BOX Fee Schedule, at id.; PHLX fee schedule, available here, http://www.nasdaqtrader.com/Micro.aspx?id=phlxpricing; and MIAX fee schedule, available here, https://www.miaxoptions.com/content/fees. --------------------------------------------------------------------------- The Exchange likewise believes the proposed increase of the ACE Initiating Participant Credit is reasonable, equitable and not unfairly discriminatory for the following reasons. First, the ACE Initiating Participant Rebate is based on the amount of business transacted on the Exchange and is designed to attract more volume and liquidity to the Exchange generally, and to CUBE Auctions specifically, which would benefit all market participants (including those that do not participate [[Page 41636]] in the ACE Program) through increased opportunities to trade at potentially improved prices as well as enhancing price discovery. Furthermore, the Exchange notes that the ACE Initiating Participant Rebate is equitable and not unfairly discriminatory because it would continue to incent ATP Holders to transact Customer orders on the Exchange and an increase in Customer order flow would bring greater volume and liquidity to the Exchange. Increased volume to the Exchange benefits all market participants by providing more trading opportunities and tighter spreads, even to those market participants that do not participate in the ACE Program. Finally, the Exchange believes the proposed changes are consistent with the Act because to the extent the modifications permit the Exchange to continue to attract greater volume and liquidity, the proposed change would improve the Exchange's overall competitiveness and strengthen its market quality for all market participants. For these reasons, the Exchange believes that the proposal is consistent with the Act. B. Self-Regulatory Organization's Statement on Burden on Competition In accordance with Section 6(b)(8) of the Act,\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 amendments to the ACE Program are pro-competitive as the proposed increased rebates may encourage OFPs to direct Customer order flow to the Exchange and any resulting increase in volume and liquidity to the Exchange would benefit all Exchange participants through increased opportunities to trade as well as enhancing price discovery. Further, the Exchange believes the proposed amendments to CUBE Auction pricing are pro-competitive as the fees and credits are designed to incent increases in the number of CUBE Auctions brought to the Exchange, which would benefit all Exchange participants through increased opportunities to trade as well as enhancing price discovery. --------------------------------------------------------------------------- \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-2016-60 on the subject line. Paper Comments Send paper comments in triplicate to Brent J. Fields, Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090. All submissions should refer to File Number SR-NYSEMKT-2016-60. This file number should be included on the subject line if email is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for Web site viewing and printing in the Commission's Public Reference Room, 100 F Street NE., Washington, DC 20549 on official business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of such filing also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR- NYSEMKT-2016-60, and should be submitted on or before July 18, 2016. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\14\ --------------------------------------------------------------------------- \14\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Brent J. Fields, Secretary. [FR Doc. 2016-15066 Filed 6-24-16; 8:45 am] BILLING CODE 8011-01-P
![41634 Federal Register / Vol. 81, No. 123 / Monday, June 27, 2016 / Notices
of investors; or (iii) otherwise in For the Commission, by the Division of set forth in sections A, B, and C below,
furtherance of the purposes of the Act. Trading and Markets, pursuant to delegated of the most significant parts of such
If the Commission takes such action, the authority.39
statements.
Commission shall institute proceedings Brent J. Fields,
to determine whether the proposed rule Secretary. A. Self-Regulatory Organization’s
should be approved or disapproved. [FR Doc. 2016–15065 Filed 6–24–16; 8:45 am] Statement of the Purpose of, and the
BILLING CODE 8011–01–P Statutory Basis for, the Proposed Rule
IV. Solicitation of Comments Change
Interested persons are invited to
submit written data, views, and SECURITIES AND EXCHANGE 1. Purpose
arguments concerning the foregoing, COMMISSION The purpose of this filing is to amend
including whether the proposed rule [Release No. 34–78117; File No. SR– Sections I. E. and G. of the Fee
change is consistent with the Act. NYSEMKT–2016–60] Schedule 4 to adjust fees and credits
Comments may be submitted by any of payable, effective on June 9, 2016.
the following methods: Self-Regulatory Organizations; NYSE
MKT LLC; Notice of Filing and Proposed changes to ACE Program
Electronic Comments
Immediate Effectiveness of Proposed
• Use the Commission’s Internet Rule Change Modifying the NYSE Section I.E. of the Fee Schedule
comment form (http://www.sec.gov/ Amex Options Fee Schedule describes the Exchange’s ACE Program,
rules/sro.shtml); or which features five tiers expressed as a
• Send an email to rule-comments@ June 21, 2016. percentage of total industry Customer
sec.gov. Please include File Number SR- Pursuant to Section 19(b)(1) 1 of the equity and Exchange Traded Fund
Phlx–2016–69 on the subject line. Securities Exchange Act of 1934 (the (‘‘ETF’’) option average daily volume 5
‘‘Act’’) 2 and Rule 19b–4 thereunder,3 and provides two alternative methods
Paper Comments notice is hereby given that, on June 9, through which Order Flow Providers
• Send paper comments in triplicate 2016, NYSE MKT LLC (the ‘‘Exchange’’ (each an ‘‘OFP’’) may receive per
to Secretary, Securities and Exchange or ‘‘NYSE MKT’’) filed with the
contract credits for Electronic Customer
Commission, 100 F Street NE., Securities and Exchange Commission
Washington, DC 20549–1090. volume that the OFP, as agent, submits
(the ‘‘Commission’’) the proposed rule
change as described in Items I, II, and to the Exchange.
All submissions should refer to File
Number SR-Phlx–2016–69. This file III below, which Items have been The Exchange proposes to modify the
number should be included on the prepared by the self-regulatory ACE Program by increasing certain of
subject line if email is used. To help the organization. The Commission is the credits available for Tiers 2 through
Commission process and review your publishing this notice to solicit 5 as illustrated in the table below, with
comments more efficiently, please use comments on the proposed rule change proposed additions appearing
only one method. The Commission will from interested persons. underscored and proposed deletions
post all comments on the Commission’s I. Self-Regulatory Organization’s appearing in brackets:
Internet Web site (http://www.sec.gov/ Statement of the Terms of Substance of * * * * *
rules/sro.shtml). Copies of the the Proposed Rule Change
submission, all subsequent
amendments, all written statements The Exchange proposes to modify the
with respect to the proposed rule NYSE Amex Options Fee Schedule
change that are filed with the (‘‘Fee Schedule’’). The Exchange
Commission, and all written proposes to implement the fee change
communications relating to the effective June 9, 2016. The proposed
proposed rule change between the change is available on the Exchange’s
Commission and any person, other than Web site at www.nyse.com, at the
those that may be withheld from the principal office of the Exchange, and at
public in accordance with the the Commission’s Public Reference
provisions of 5 U.S.C. 552, will be Room.
available for Web site viewing and II. Self-Regulatory Organization’s
printing in the Commission’s Public Statement of the Purpose of, and 4 See Fee Schedule, Sections I. E. (Amex
Reference Room, 100 F Street NE., Statutory Basis for, the Proposed Rule Customer Engagement (‘‘ACE’’) Program—Standard
Washington, DC 20549, on official Change Options) and G. (CUBE Auction Fees & Credits),
business days between the hours of In its filing with the Commission, the available here, https://www.nyse.com/publicdocs/
10:00 a.m. and 3:00 p.m. Copies of the self-regulatory organization included
nyse/markets/amex-options/NYSE_Amex_Options_
filing also will be available for Fee_Schedule.pdf.
statements concerning the purpose of, 5 The volume thresholds are based on an NYSE
inspection and copying at the principal and basis for, the proposed rule change Amex Options Market Makers’ volume transacted
office of the Exchange. All comments and discussed any comments it received Electronically as a percentage of total industry
received will be posted without change; on the proposed rule change. The text Customer equity and ETF options volumes as
the Commission does not edit personal reported by the Options Clearing Corporation (the
of those statements may be examined at ‘‘OCC’’). Total industry Customer equity and ETF
mstockstill on DSK3G9T082PROD with NOTICES
identifying information from the places specified in Item IV below. option volume is comprised of those equity and
submissions. You should submit only The Exchange has prepared summaries, ETF contracts that clear in the Customer account
information that you wish to make type at OCC and does not include contracts that
available publicly. All submissions 39 17
clear in either the Firm or Market Maker account
CFR 200.30–3(a)(12). type at OCC or contracts overlying a security other
should refer to File Number SR-Phlx- 1 15 U.S.C. 78s(b)(1). than an equity or ETF security. See OCC Monthly
2016–69, and should be submitted on or 2 15 U.S.C. 78a.
Statistics Reports, available here, http://
before July 18, 2016. 3 17 CFR 240.19b–4. www.theocc.com/webapps/monthly-volume-reports.
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![Federal Register / Vol. 81, No. 123 / Monday, June 27, 2016 / Notices 41635
ACE Program—Standard Options Credits Payable On Customer Volume Only
Total Electronic ADV (of
which 20% or greater of the 1 Year 3 Year
Customer Electronic ADV as minimum qualifying volume Customer Enhanced Enhanced
Tier a % of Industry Customer OR for each Tier must be Volume Customer Customer
Equity and ETF Options ADV Customer) as a % of Credits Volume Volume
Industry Customer Equity Credits Credits
and ETF Options ADV
1 ..................... 0.00% to 0.60% ..................... N/A ......................................... $0.00 $0.00 $0.00
2 ..................... >0.60% to 0.80% or ≥0.35% N/A ......................................... [(0.16] [(0.16)] [(0.16)]
over October 2015 vol- (0.18) (0.18) (0.18)
umes.
3 ..................... >0.80% to 1.25% ................... 1.50% to 2.50% of which [(0.17)] [(0.18)] [(0.19)]
20% or greater of 1.50% (0.19) (0.20) (0.21)
must be Customer.
4 ..................... >1.25 to 1.75% ...................... >2.50% to 3.50% of which [(0.18)] [(0.19)] [(0.21)]
20% or greater of 2.50% (0.20) (0.21) (0.22)
must be Customer.
5 ..................... >1.75% .................................. >3.50% of which 20% or [(0.19)] [(0.21)] [(0.23)]
greater of 3.5% must be (0.22) (0.23) (0.24)
Customer.
The proposed amendments to the 6(b)(4) and (5) of the Act,7 in particular, to the Exchange is offered on terms that
ACE Program are designed to enhance because it provides for the equitable are not unfairly discriminatory.
the rebates, which the Exchange allocation of reasonable dues, fees, and The Exchange believes the proposed
believes would attract more volume and other charges among its members, changes to CUBE are reasonable, as they
liquidity to the Exchange to the benefit issuers and other persons using its are similar to fees charged for similar
of Exchange participants through facilities and does not unfairly auction mechanisms on other markets,
increased opportunities to trade as well discriminate between customers, such as BOX Options Exchange LLC
as enhancing price discovery. issuers, brokers or dealers. (‘‘BOX’’), which charges a total fee of
The Exchange believes that the $1.05 for a Market Maker response to a
Proposed Changes to CUBE Pricing
proposed amendments to the ACE PIP auction in a non-Penny Pilot issue.8
Section I.G. of the Fee Schedule sets Program are reasonable, equitable and Similarly, the Exchange also notes that
forth the rates for per contract fees and not unfairly discriminatory because they the proposed change to charge $0.50 for
credits for executions associated with a would enhance the incentives to Order RFR Responses in Penny Pilot Issues is
CUBE Auction. The Exchange is Flow Providers to transact Customer consistent with, or lower than, rates
proposing to adjust rates for RFR orders on the Exchange, which would charged by competing option exchanges,
Response fees and Initiating Credits and benefit all market participants by including BOX (charging total response
Rebates. Specifically, the Exchange providing more trading opportunities fee of $0.65 to market makers and $0.72
proposes to adjust RFR Response fees and tighter spreads, even to those to all other participants); NASDAQ
for Non-Customers to $0.50 for symbols market participants that do not PHLX (‘‘PHLX’’) (charging a total
in the Penny Pilot, from $0.12; and to participate in the ACE Program. response fee of $0.55 to market makers
adjust RFR Response fees for Non- Additionally, the Exchange believes the and $0.48 for all other participants) and
Customers for symbols not in the Penny proposed changes to the ACE Program Miami International Securities
Pilot to $1.05, from $0.12. The Exchange are consistent with the Act because they Exchange, Inc. (‘‘MIAX’’) (charging
also proposes to adjust the Initiating may attract greater volume and liquidity response fee of $0.50 to market
Participant credits and rebates to $0.30 to the Exchange, which would benefit participants).9
for symbols in the Penny Pilot, $0.70 for all market participants by providing The Exchange likewise believes the
symbols not in the Penny Pilot, an tighter quoting and better prices, all of proposed increase of the ACE Initiating
increase from the $0.05 Initiating which perfects the mechanism for a free Participant Credit is reasonable,
Participant credit in all names. The and open market and national market equitable and not unfairly
Exchange also proposes to increase the system. discriminatory for the following
ACE Initiating Participant Rebate from reasons. First, the ACE Initiating
The Exchange believes that the Participant Rebate is based on the
$0.05 to $0.12.
proposed changes to CUBE Auction fees amount of business transacted on the
The proposed changes are designed to are reasonable, equitable and not Exchange and is designed to attract
increase incentives for submission of unfairly discriminatory. Specifically, more volume and liquidity to the
CUBE Orders, which should maximize the proposed increases to both the Exchange generally, and to CUBE
price improvement opportunities for Initiating Participant Credits (for both Auctions specifically, which would
Customers. Penny Pilot and Non-Penny Pilot) as benefit all market participants
well as the fees associated with RFR
mstockstill on DSK3G9T082PROD with NOTICES
2. Statutory Basis (including those that do not participate
Responses that participate in the CUBE
The Exchange believes that the are reasonable, equitable and non- 8 See BOX Fee Schedule, available here, http://
proposed rule change is consistent with discriminatory because they apply boxexchange.com/assets/BOX_Fee_Schedule.pdf.
Section 6(b) of the Act,6 in general, and equally to all ATP Holders that choose 9 See BOX Fee Schedule, at id.; PHLX fee
furthers the objectives of Sections to participate in the CUBE, and access schedule, available here, http://
www.nasdaqtrader.com/Micro.aspx?id=phlxpricing;
and MIAX fee schedule, available here, https://
6 15 U.S.C. 78f(b). 7 15 U.S.C. 78f(b)(4) and (5). www.miaxoptions.com/content/fees.
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![41636 Federal Register / Vol. 81, No. 123 / Monday, June 27, 2016 / Notices
in the ACE Program) through increased competitive with other exchanges. For subject line if email is used. To help the
opportunities to trade at potentially the reasons described above, the Commission process and review your
improved prices as well as enhancing Exchange believes that the proposed comments more efficiently, please use
price discovery. Furthermore, the rule change reflects this competitive only one method. The Commission will
Exchange notes that the ACE Initiating environment. post all comments on the Commission’s
Participant Rebate is equitable and not Internet Web site (http://www.sec.gov/
unfairly discriminatory because it C. Self-Regulatory Organization’s rules/sro.shtml). Copies of the
would continue to incent ATP Holders Statement on Comments on the submission, all subsequent
to transact Customer orders on the Proposed Rule Change Received From amendments, all written statements
Exchange and an increase in Customer Members, Participants, or Others with respect to the proposed rule
order flow would bring greater volume No written comments were solicited change that are filed with the
and liquidity to the Exchange. Increased or received with respect to the proposed Commission, and all written
volume to the Exchange benefits all rule change. communications relating to the
market participants by providing more proposed rule change between the
III. Date of Effectiveness of the
trading opportunities and tighter Commission and any person, other than
Proposed Rule Change and Timing for
spreads, even to those market those that may be withheld from the
participants that do not participate in Commission Action public in accordance with the
the ACE Program. The foregoing rule change is effective provisions of 5 U.S.C. 552, will be
Finally, the Exchange believes the upon filing pursuant to Section available for Web site viewing and
proposed changes are consistent with 19(b)(3)(A) 11 of the Act and printing in the Commission’s Public
the Act because to the extent the subparagraph (f)(2) of Rule 19b–4 12 Reference Room, 100 F Street NE.,
modifications permit the Exchange to thereunder, because it establishes a due, Washington, DC 20549 on official
continue to attract greater volume and fee, or other charge imposed by the business days between the hours of
liquidity, the proposed change would Exchange. 10:00 a.m. and 3:00 p.m. Copies of such
improve the Exchange’s overall At any time within 60 days of the filing also will be available for
competitiveness and strengthen its filing of such proposed rule change, the inspection and copying at the principal
market quality for all market Commission summarily may office of the Exchange. All comments
participants. temporarily suspend such rule change if received will be posted without change;
For these reasons, the Exchange it appears to the Commission that such the Commission does not edit personal
believes that the proposal is consistent action is necessary or appropriate in the identifying information from
with the Act. public interest, for the protection of submissions. You should submit only
B. Self-Regulatory Organization’s investors, or otherwise in furtherance of information that you wish to make
Statement on Burden on Competition the purposes of the Act. If the available publicly. All submissions
Commission takes such action, the should refer to File Number SR–
In accordance with Section 6(b)(8) of Commission shall institute proceedings NYSEMKT–2016–60, and should be
the Act,10 the Exchange does not believe submitted on or before July 18, 2016.
under Section 19(b)(2)(B) 13 of the Act to
that the proposed rule change would
determine whether the proposed rule For the Commission, by the Division of
impose any burden on competition that
change should be approved or Trading and Markets, pursuant to delegated
is not necessary or appropriate in authority.14
disapproved.
furtherance of the purposes of the Act.
Brent J. Fields,
The Exchange believes the proposed IV. Solicitation of Comments
Secretary.
amendments to the ACE Program are Interested persons are invited to [FR Doc. 2016–15066 Filed 6–24–16; 8:45 am]
pro-competitive as the proposed submit written data, views, and
increased rebates may encourage OFPs BILLING CODE 8011–01–P
arguments concerning the foregoing,
to direct Customer order flow to the including whether the proposed rule
Exchange and any resulting increase in change is consistent with the Act. SECURITIES AND EXCHANGE
volume and liquidity to the Exchange Comments may be submitted by any of COMMISSION
would benefit all Exchange participants the following methods:
through increased opportunities to trade [Release No. 34–78108; File No. SR–NYSE–
as well as enhancing price discovery. Electronic Comments 2016–42]
Further, the Exchange believes the • Use the Commission’s Internet
proposed amendments to CUBE Auction Self-Regulatory Organizations; New
comment form (http://www.sec.gov/ York Stock Exchange LLC; Notice of
pricing are pro-competitive as the fees rules/sro.shtml); or
and credits are designed to incent Filing and Immediate Effectiveness of
• Send an email to rule-comments@ Proposed Rule Change To Amend Its
increases in the number of CUBE sec.gov. Please include File Number SR–
Auctions brought to the Exchange, Price List To Adopt a Fee Waiver and
NYSEMKT–2016–60 on the subject line. a Fee Cap Related to the Liquidity
which would benefit all Exchange
participants through increased Paper Comments Provider Incentive Program on the
NYSE BondsSM System
opportunities to trade as well as • Send paper comments in triplicate
enhancing price discovery. to Brent J. Fields, Secretary, Securities June 21, 2016.
The Exchange notes that it operates in and Exchange Commission, 100 F Street Pursuant to Section 19(b)(1) 1 of the
a highly competitive market in which
mstockstill on DSK3G9T082PROD with NOTICES
NE., Washington, DC 20549–1090. Securities Exchange Act of 1934 (the
market participants can readily favor All submissions should refer to File ‘‘Act’’) 2 and Rule 19b–4 thereunder,3
competing venues. In such an Number SR–NYSEMKT–2016–60. This notice is hereby given that, on June 7,
environment, the Exchange must file number should be included on the
continually review, and consider 14 17 CFR 200.30–3(a)(12).
adjusting, its fees and credits to remain 11 15 U.S.C. 78s(b)(3)(A). 1 15 U.S.C. 78s(b)(1).
12 17 CFR 240.19b–4(f)(2). 2 15 U.S.C. 78a.
10 15 U.S.C. 78f(b)(8). 13 15 U.S.C. 78s(b)(2)(B). 3 17 CFR 240.19b-4.
VerDate Sep<11>2014 18:52 Jun 24, 2016 Jkt 238001 PO 00000 Frm 00129 Fmt 4703 Sfmt 4703 E:\FR\FM\27JNN1.SGM 27JNN1](https://thefederalregister.org/doc/81_FR_41757/page/3.svg)
Document Created: 2016-06-25 02:07:27
Document Modified: 2016-06-25 02:07:27
| 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 41634 |
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