81 FR 41636 - Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Its Price List To Adopt a Fee Waiver and a Fee Cap Related to the Liquidity Provider Incentive Program on the NYSE BondsSM
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 123 (June 27, 2016)
Federal Register Volume 81, Issue 123 (June 27, 2016)
| Page Range | 41636-41638 | |
| FR Document | 2016-15072 |
[Federal Register Volume 81, Number 123 (Monday, June 27, 2016)] [Notices] [Pages 41636-41638] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-15072] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-78108; File No. SR-NYSE-2016-42] Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Its Price List To Adopt a Fee Waiver and a Fee Cap Related to the Liquidity Provider Incentive Program on the NYSE Bonds\SM\ System 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 7, [[Page 41637]] 2016, New York Stock Exchange LLC (``NYSE'' or the ``Exchange'') 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 amend its Price List to adopt a fee waiver and a fee cap related to the Liquidity Provider Incentive Program on the NYSE Bonds\SM\ system. 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 the Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to amend its Price List to adopt a fee waiver and a fee cap related to the Liquidity Provider Incentive Program on the NYSE Bonds system recently implemented by the Exchange.\4\ Pursuant to the Liquidity Provider Incentive Program, a voluntary rebate program, the Exchange pays Users \5\ of NYSE Bonds a monthly rebate provided Users who opt into the rebate program meet specified quoting requirements. Under the program, the rebate payable is based on the number of CUSIPs \6\ a User quotes. The rebate amount is tiered based on the number of CUSIPs quoted by a User, as follows: --------------------------------------------------------------------------- \4\ See Securities Exchange Act Release Nos. 77591 (April 12, 2016), 81 FR 22656 (April 18, 2016) (SR-NYSE-2016-26); and 77812 (May 11, 2016), 81 FR 30594 (May 17, 2016) (Sr-NYSE-2016-34). \5\ Rule 86(b)(2)(M) [sic] defines a User as any Member or Member Organization, Sponsored Participant, or Authorized Trader that is authorized to access NYSE Bonds. \6\ CUSIP stands for Committee on Uniform Securities Identification Procedures. A CUSIP number identifies most financial instruments, including: stocks of all registered U.S. and Canadian companies, commercial paper, and U.S. government and municipal bonds. The CUSIP system--owned by the American Bankers Association and managed by Standard & Poor's--facilitates the clearance and settlement process of securities. See http://www.sec.gov/answers/cusip.htm. Liquidity Provider Incentive Program ------------------------------------------------------------------------ Number of CUSIPs Monthly rebate ------------------------------------------------------------------------ 400-599................................................. $10,000 600-799................................................. 20,000 800 or more............................................. 30,000 ------------------------------------------------------------------------ To qualify for a rebate, a User is required to provide continuous two-sided quotes for at least eighty percent (80%) of the time during the Core Bond Trading Session for an entire calendar month.\7\ The Exchange calculates each participating User's quoting performance beginning each month on a daily basis, up to and including the last trading day of a calendar month, to determine at the end of each month each User's monthly average. Under the program, Users must provide a two-sided quote for a minimum of hundred (100) bonds per side of the market with an average spread of half-point ($0.50) or less in CUSIPs whose average maturity is at least five (5) years as of the date the User provides a quote. In order for a CUSIP to qualify for inclusion in the rebate calculation, a User must provide continuous two-sided quotes in a CUSIP, whether it's for eighty percent (80%) or fifty percent (50%) of the time, as applicable, for a minimum of hundred (100) bonds per side of the market that has an average spread of half-point ($0.50) or less and whose average maturity is at least five (5) years as of the date the User provides the quote. --------------------------------------------------------------------------- \7\ For the first calendar month after a User opts in, the User is required to provide continuous two-sided quotes for fifty percent (50%) of the time during the Core Bond Trading Session. --------------------------------------------------------------------------- Users that opt in to the Liquidity Provider Incentive Program are subject to a transaction fee for orders that provide liquidity to the NYSE Bonds Book of $0.50 per bond.\8\ In order to further incentivize Users to provide liquidity on the NYSE Bonds system, the Exchange proposes to adopt a fee waiver and a fee cap. As proposed, the fee waiver would apply to Users that provide liquidity in 800 or more qualifying CUSIPs quoted on the NYSE Bonds Book. Additionally, the Exchange proposes to adopt a fee cap of $5,000 per month that would apply to all Users that do not attain the fee waiver, i.e., Users that provide liquidity in the 400-599 qualifying CUSIP tier and in the 600- 799 qualifying CUSIP tier. The Exchange is not proposing any change to the level of fees or rebates applicable to the Liquidity Provider Incentive Program. The proposed rule change is intended to provide Users with a greater incentive to provide liquidity on the NYSE Bonds system. --------------------------------------------------------------------------- \8\ For orders that take liquidity from the NYSE Bonds Book, the current tiered fees apply, i.e., $0.50 per bond for executions of one to 10 bonds, $0.20 per bond for executions of 11 to 25 bonds and $0.10 per bond for executions of 26 bonds or more, with a maximum fee of $100 per execution. Users that do not opt in to the Liquidity Provider Incentive Program are subject to the Exchange's standard fees and rebates, as currently provided on the Price List. --------------------------------------------------------------------------- 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with Section 6(b) of the Act,\9\ in general, and furthers the objectives of Sections 6(b)(4) and 6(b)(5) of the Act,\10\ 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. --------------------------------------------------------------------------- \9\ 15 U.S.C. 78f(b). \10\ 15 U.S.C. 78f(b)(4), (5). --------------------------------------------------------------------------- The Exchange believes that the proposed changes to the Liquidity Provider Incentive Program are reasonable and equitable as they are intended to further incentivize Users to provide liquidity to the NYSE Bonds system. The proposed fee waiver for Users that provide liquidity in 800 or more qualifying CUSIPs and the proposed fee cap for Users that provide liquidity in the 400-599 qualifying CUSIP tier and in the 600-799 qualifying CUSIP tier, are both reasonable amendments to the Exchange's fee schedule and do not unfairly discriminate between customers, issuers, and brokers or dealers because all member organizations that opt in to the Liquidity Provider Incentive Program would benefit from the proposed fee changes. The Exchange believes that the proposed fee changes are also reasonable because they are designed to provide an incentive for member organizations to increase displayed liquidity at the Exchange, thereby increasing traded volume. The Exchange is proposing to adopt a pricing model whereby Users providing liquidity in a minimum number of [[Page 41638]] qualifying CUSIPs to the NYSE Bonds system would not pay a fee, and Users that do not qualify for the fee waiver would benefit by the proposed fee cap. The proposed rule change will therefore benefit all Users that provide liquidity to the NYSE Bonds system. The Exchange further believes that the proposed rule change is equitable and not unfairly discriminatory in that it will apply uniformly to all Users accessing the NYSE Bonds system. Each User will have the ability to determine the extent to which the Exchange's proposed structure will provide it with an economic incentive to use the NYSE Bonds system, and model its business accordingly. B. Self-Regulatory Organization's Statement on Burden on Competition In accordance with Section 6(b)(8) of the Act,\11\ the Exchange believes that the proposed rule change would not impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. Debt securities typically trade in a decentralized OTC dealer market that is less liquid and transparent than the equities markets. The Exchange believes that the proposed change would increase competition with these OTC venues by creating additional incentives to engage in bonds transactions on the Exchange and rewarding market participants for actively quoting and providing liquidity in the only transparent bond market, which the Exchange believes will enhance market quality. --------------------------------------------------------------------------- \11\ 15 U.S.C. 78f(b)(8). --------------------------------------------------------------------------- The Exchange notes that it operates in a highly competitive market in which market participants can readily favor competing venues that are not transparent. In such an environment, the Exchange must continually review, and consider adjusting its fees and rebates to remain competitive with other exchanges as well as with alternative trading systems and other venues that are not required to comply 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. As a result of all of these considerations, the Exchange does not believe that the proposed change will impair the ability of member organizations 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 solicited or received with respect to the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing rule change is effective upon filing pursuant to Section 19(b)(3)(A) \12\ of the Act and subparagraph (f)(2) of Rule 19b-4 \13\ thereunder, because it establishes a due, fee, or other charge imposed by the Exchange. --------------------------------------------------------------------------- \12\ 15 U.S.C. 78s(b)(3)(A). \13\ 17 CFR 240.19b-4(f)(2). --------------------------------------------------------------------------- At any time within 60 days of the filing of such proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings under Section 19(b)(2)(B) \14\ of the Act to determine whether the proposed rule change should be approved or disapproved. --------------------------------------------------------------------------- \14\ 15 U.S.C. 78s(b)(2)(B). --------------------------------------------------------------------------- IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic CommentsUse the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to [email protected]. Please include File Number SR-NYSE-2016-42 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-NYSE-2016-42. 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-NYSE-2016-42, and should be submitted on or before July 18, 2016. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\15\ --------------------------------------------------------------------------- \15\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2016-15072 Filed 6-24-16; 8:45 am] BILLING CODE 8011-01-P
![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.
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![Federal Register / Vol. 81, No. 123 / Monday, June 27, 2016 / Notices 41637
2016, New York Stock Exchange LLC of CUSIPs 6 a User quotes. The rebate further incentivize Users to provide
(‘‘NYSE’’ or the ‘‘Exchange’’) filed with amount is tiered based on the number liquidity on the NYSE Bonds system,
the Securities and Exchange of CUSIPs quoted by a User, as follows: the Exchange proposes to adopt a fee
Commission (the ‘‘Commission’’) the waiver and a fee cap. As proposed, the
proposed rule change as described in LIQUIDITY PROVIDER INCENTIVE fee waiver would apply to Users that
Items I, II, and III below, which Items PROGRAM provide liquidity in 800 or more
have been prepared by the self- qualifying CUSIPs quoted on the NYSE
regulatory organization. The Number of CUSIPs Monthly rebate Bonds Book. Additionally, the Exchange
Commission is publishing this notice to proposes to adopt a fee cap of $5,000
solicit comments on the proposed rule 400–599 ................................ $10,000 per month that would apply to all Users
change from interested persons. 600–799 ................................ 20,000 that do not attain the fee waiver, i.e.,
800 or more .......................... 30,000
Users that provide liquidity in the 400–
I. Self-Regulatory Organization’s
To qualify for a rebate, a User is 599 qualifying CUSIP tier and in the
Statement of the Terms of Substance of
required to provide continuous two- 600–799 qualifying CUSIP tier. The
the Proposed Rule Change
sided quotes for at least eighty percent Exchange is not proposing any change
The Exchange proposes to amend its to the level of fees or rebates applicable
Price List to adopt a fee waiver and a fee (80%) of the time during the Core Bond
Trading Session for an entire calendar to the Liquidity Provider Incentive
cap related to the Liquidity Provider Program. The proposed rule change is
Incentive Program on the NYSE month.7 The Exchange calculates each
participating User’s quoting intended to provide Users with a greater
BondsSM system. The proposed rule
change is available on the Exchange’s performance beginning each month on a incentive to provide liquidity on the
daily basis, up to and including the last NYSE Bonds system.
Web site at www.nyse.com, at the
principal office of the Exchange, and at trading day of a calendar month, to 2. Statutory Basis
the Commission’s Public Reference determine at the end of each month The Exchange believes that the
Room. each User’s monthly average. Under the proposed rule change is consistent with
program, Users must provide a two- Section 6(b) of the Act,9 in general, and
II. Self-Regulatory Organization’s sided quote for a minimum of hundred furthers the objectives of Sections
Statement of the Purpose of, and (100) bonds per side of the market with 6(b)(4) and 6(b)(5) of the Act,10 in
Statutory Basis for, the Proposed Rule an average spread of half-point ($0.50) particular, because it provides for the
Change or less in CUSIPs whose average equitable allocation of reasonable dues,
In its filing with the Commission, the maturity is at least five (5) years as of fees, and other charges among its
self-regulatory organization included the date the User provides a quote. In members, issuers and other persons
statements concerning the purpose of, order for a CUSIP to qualify for using its facilities and does not unfairly
and basis for, the proposed rule change inclusion in the rebate calculation, a discriminate between customers,
and discussed any comments it received User must provide continuous two- issuers, brokers or dealers.
on the proposed rule change. The text sided quotes in a CUSIP, whether it’s for The Exchange believes that the
of those statements may be examined at eighty percent (80%) or fifty percent proposed changes to the Liquidity
the places specified in Item IV below. (50%) of the time, as applicable, for a Provider Incentive Program are
The Exchange has prepared summaries, minimum of hundred (100) bonds per reasonable and equitable as they are
set forth in sections A, B, and C below, side of the market that has an average intended to further incentivize Users to
of the most significant parts of such spread of half-point ($0.50) or less and provide liquidity to the NYSE Bonds
statements. whose average maturity is at least five system. The proposed fee waiver for
(5) years as of the date the User provides Users that provide liquidity in 800 or
A. Self-Regulatory Organization’s the quote.
Statement of the Purpose of, and the more qualifying CUSIPs and the
Users that opt in to the Liquidity
Statutory Basis for, the Proposed Rule proposed fee cap for Users that provide
Provider Incentive Program are subject
Change liquidity in the 400–599 qualifying
to a transaction fee for orders that
provide liquidity to the NYSE Bonds CUSIP tier and in the 600–799
1. Purpose qualifying CUSIP tier, are both
Book of $0.50 per bond.8 In order to
The Exchange proposes to amend its reasonable amendments to the
Price List to adopt a fee waiver and a fee 6 CUSIP stands for Committee on Uniform
Exchange’s fee schedule and do not
cap related to the Liquidity Provider Securities Identification Procedures. A CUSIP unfairly discriminate between
Incentive Program on the NYSE Bonds number identifies most financial instruments, customers, issuers, and brokers or
including: stocks of all registered U.S. and dealers because all member
system recently implemented by the Canadian companies, commercial paper, and U.S.
Exchange.4 Pursuant to the Liquidity government and municipal bonds. The CUSIP organizations that opt in to the Liquidity
Provider Incentive Program, a voluntary system—owned by the American Bankers Provider Incentive Program would
rebate program, the Exchange pays Association and managed by Standard & Poor’s— benefit from the proposed fee changes.
facilitates the clearance and settlement process of The Exchange believes that the
Users 5 of NYSE Bonds a monthly rebate securities. See http://www.sec.gov/answers/
provided Users who opt into the rebate cusip.htm. proposed fee changes are also
program meet specified quoting 7 For the first calendar month after a User opts in, reasonable because they are designed to
requirements. Under the program, the the User is required to provide continuous two- provide an incentive for member
sided quotes for fifty percent (50%) of the time organizations to increase displayed
rebate payable is based on the number during the Core Bond Trading Session.
mstockstill on DSK3G9T082PROD with NOTICES
8 For orders that take liquidity from the NYSE
liquidity at the Exchange, thereby
Bonds Book, the current tiered fees apply, i.e., $0.50 increasing traded volume.
4 See Securities Exchange Act Release Nos. 77591
(April 12, 2016), 81 FR 22656 (April 18, 2016) (SR– per bond for executions of one to 10 bonds, $0.20 The Exchange is proposing to adopt a
NYSE–2016–26); and 77812 (May 11, 2016), 81 FR per bond for executions of 11 to 25 bonds and $0.10 pricing model whereby Users providing
30594 (May 17, 2016) (Sr-NYSE–2016–34). per bond for executions of 26 bonds or more, with
5 Rule 86(b)(2)(M) [sic] defines a User as any
liquidity in a minimum number of
a maximum fee of $100 per execution. Users that
Member or Member Organization, Sponsored do not opt in to the Liquidity Provider Incentive
9 15 U.S.C. 78f(b).
Participant, or Authorized Trader that is authorized Program are subject to the Exchange’s standard fees
to access NYSE Bonds. and rebates, as currently provided on the Price List. 10 15 U.S.C. 78f(b)(4), (5).
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![41638 Federal Register / Vol. 81, No. 123 / Monday, June 27, 2016 / Notices
qualifying CUSIPs to the NYSE Bonds competitive standing in the financial only one method. The Commission will
system would not pay a fee, and Users markets. post all comments on the Commission’s
that do not qualify for the fee waiver Internet Web site (http://www.sec.gov/
C. Self-Regulatory Organization’s
would benefit by the proposed fee cap. rules/sro.shtml). Copies of the
Statement on Comments on the
The proposed rule change will therefore submission, all subsequent
Proposed Rule Change Received From
benefit all Users that provide liquidity amendments, all written statements
to the NYSE Bonds system. Members, Participants, or Others with respect to the proposed rule
The Exchange further believes that the No written comments were solicited change that are filed with the
proposed rule change is equitable and or received with respect to the proposed Commission, and all written
not unfairly discriminatory in that it rule change. communications relating to the
will apply uniformly to all Users proposed rule change between the
III. Date of Effectiveness of the
accessing the NYSE Bonds system. Each Commission and any person, other than
Proposed Rule Change and Timing for
User will have the ability to determine those that may be withheld from the
the extent to which the Exchange’s Commission Action
public in accordance with the
proposed structure will provide it with The foregoing rule change is effective provisions of 5 U.S.C. 552, will be
an economic incentive to use the NYSE upon filing pursuant to Section available for Web site viewing and
Bonds system, and model its business 19(b)(3)(A) 12 of the Act and printing in the Commission’s Public
accordingly. subparagraph (f)(2) of Rule 19b–4 13 Reference Room, 100 F Street NE.,
thereunder, because it establishes a due, Washington, DC 20549 on official
B. Self-Regulatory Organization’s
fee, or other charge imposed by the business days between the hours of
Statement on Burden on Competition
Exchange. 10:00 a.m. and 3:00 p.m. Copies of such
In accordance with Section 6(b)(8) of At any time within 60 days of the filing also will be available for
the Act,11 the Exchange believes that the filing of such proposed rule change, the inspection and copying at the principal
proposed rule change would not impose Commission summarily may office of the Exchange. All comments
any burden on competition that is not temporarily suspend such rule change if received will be posted without change;
necessary or appropriate in furtherance it appears to the Commission that such the Commission does not edit personal
of the purposes of the Act. Debt action is necessary or appropriate in the identifying information from
securities typically trade in a public interest, for the protection of submissions. You should submit only
decentralized OTC dealer market that is investors, or otherwise in furtherance of information that you wish to make
less liquid and transparent than the the purposes of the Act. If the available publicly. All submissions
equities markets. The Exchange believes Commission takes such action, the should refer to File Number SR–NYSE–
that the proposed change would Commission shall institute proceedings 2016–42, and should be submitted on or
increase competition with these OTC under Section 19(b)(2)(B) 14 of the Act to before July 18, 2016.
venues by creating additional incentives determine whether the proposed rule For the Commission, by the Division of
to engage in bonds transactions on the change should be approved or Trading and Markets, pursuant to delegated
Exchange and rewarding market disapproved. authority.15
participants for actively quoting and Robert W. Errett,
providing liquidity in the only IV. Solicitation of Comments
Deputy Secretary.
transparent bond market, which the Interested persons are invited to [FR Doc. 2016–15072 Filed 6–24–16; 8:45 am]
Exchange believes will enhance market submit written data, views, and
quality. BILLING CODE 8011–01–P
arguments concerning the foregoing,
The Exchange notes that it operates in including whether the proposed rule
a highly competitive market in which change is consistent with the Act.
market participants can readily favor SECURITIES AND EXCHANGE
Comments may be submitted by any of COMMISSION
competing venues that are not the following methods:
transparent. In such an environment, [Release No. 34–78111; File No. SR–
the Exchange must continually review, Electronic Comments BatsBZX–2016–24]
and consider adjusting its fees and • Use the Commission’s Internet
rebates to remain competitive with other Self-Regulatory Organizations; Bats
comment form (http://www.sec.gov/
exchanges as well as with alternative BZX Exchange, Inc.; Notice of Filing
rules/sro.shtml); or
and Immediate Effectiveness of a
trading systems and other venues that • Send an email to rule-comments@
are not required to comply with the Proposed Rule Change Related to Fees
sec.gov. Please include File Number SR–
statutory standards applicable to NYSE–2016–42 on the subject line. June 21, 2016.
exchanges. Because competitors are free Pursuant to Section 19(b)(1) of the
to modify their own fees and credits in Paper Comments
Securities Exchange Act of 1934 (the
response, and because market • Send paper comments in triplicate ‘‘Act’’),1 and Rule 19b–4 thereunder,2
participants may readily adjust their to Brent J. Fields, Secretary, Securities notice is hereby given that on June 8,
order routing practices, the Exchange and Exchange Commission, 100 F Street 2016, Bats BZX Exchange, Inc. (the
believes that the degree to which fee NE., Washington, DC 20549–1090. ‘‘Exchange’’ or ‘‘BZX’’) filed with the
changes in this market may impose any All submissions should refer to File Securities and Exchange Commission
burden on competition is extremely Number SR–NYSE–2016–42. This file (‘‘Commission’’) the proposed rule
limited. As a result of all of these
mstockstill on DSK3G9T082PROD with NOTICES
number should be included on the change as described in Items I, II and III
considerations, the Exchange does not subject line if email is used. To help the below, which Items have been prepared
believe that the proposed change will Commission process and review your by the Exchange. The Exchange has
impair the ability of member comments more efficiently, please use designated the proposed rule change as
organizations or competing order
execution venues to maintain their 12 15 U.S.C. 78s(b)(3)(A). 15 17 CFR 200.30–3(a)(12).
13 17 CFR 240.19b–4(f)(2). 1 15 U.S.C. 78s(b)(1).
11 15 U.S.C. 78f(b)(8). 14 15 U.S.C. 78s(b)(2)(B). 2 17 CFR 240.19b–4.
VerDate Sep<11>2014 18:52 Jun 24, 2016 Jkt 238001 PO 00000 Frm 00131 Fmt 4703 Sfmt 4703 E:\FR\FM\27JNN1.SGM 27JNN1](https://thefederalregister.org/doc/81_FR_41759/page/3.svg)
Document Created: 2016-06-25 02:07:26
Document Modified: 2016-06-25 02:07:26
| 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 41636 |
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