81 FR 54887 - Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and Immediate Effectiveness of Proposed Change To Modify the NYSE Amex Options Fee Schedule

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 159 (August 17, 2016)

Page Range		54887-54888
FR Document		2016-19579
Federal Register, Volume 81 Issue 159 (Wednesday, August 17, 2016)
[Federal Register Volume 81, Number 159 (Wednesday, August 17, 2016)]
[Notices]
[Pages 54887-54888]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-19579]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-78548; File No. SR-NYSEMKT-2016-74]


Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and 
Immediate Effectiveness of Proposed Change To Modify the NYSE Amex 
Options Fee Schedule

August 11, 2016.
    Pursuant to section 19(b)(1) \1\ of the Securities Exchange Act of 
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby 
given that, on August 1, 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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
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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 August 1, 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 section I. A. of the Fee 
Schedule to adjust certain Marketing Charges for Electronic Executions 
in standard options contracts, effective on August 1, 2016.\4\
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    \4\ See Fee Schedule, section I. A. (Rates for Standard Options 
Transactions), available here, https://www.nyse.com/publicdocs/nyse/markets/amex-options/NYSE_Amex_Options_Fee_Schedule.pdf.
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    The Exchange assesses a Marketing Charge to all NYSE Amex Options 
Market Makers, which includes Specialists, e-Specialists and Directed 
Order Market Makers (collectively, ``Market Makers'') for contracts 
they execute Electronically when the contra-party to the execution is a 
Customer.\5\ Currently, the Exchange collects a Marketing Charge from 
Market Makers of $0.25 per contract in Penny Pilot Issues, and $0.65 
per contract on in non-Penny Pilot Issues.\6\ The Exchange proposes to 
modify the Marketing Charge for transactions in non-Penny Pilot Issues 
to $0.70 per contract, which is comparable to the marketing fees 
charged by competing options exchanges.\7\
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    \5\ As specified in the Fee Schedule, the Exchange acts as an 
administrator in collecting and re-distributing all monies collected 
from the Marketing Charges. See id., Note 3 to Section I. A.
    \6\ The term ``non-Penny Pilot Issues'' applies to those option 
issues that are not in the Penny Pilot pursuant to Rule 960NY, 
Commentary .02.
    \7\ See, e.g., Chicago Board Options Exchange (``CBOE'') fee 
schedule, available here, http://www.cboe.com/publish/feeschedule/CBOEFeeSchedule.pdf (charging a marketing fee of $0.70 per contract 
for non-Penny Pilot Issues); Nasdaq OMX PHLX (``PHLX'') fee 
schedule, available here, http://www.nasdaqtrader.com/Micro.aspx?id=phlxpricing (same).
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    The Exchange also proposes to correct certain typographical errors 
in Note 3 to section I.A. of the Fee Schedule, which would add clarity 
and transparency to the Fee Schedule.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with section 6(b) of the Act,\8\ in general, and furthers the 
objectives of sections 6(b)(4) and (5) of the Act,\9\ in particular, 
because it provides for the equitable allocation of reasonable dues, 
fees, and other charges among its members, issuers and other persons 
using its facilities and does not unfairly

[[Page 54888]]

discriminate between customers, issuers, brokers or dealers.
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    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(4) and (5).
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    The Exchange notes that the U.S. options markets are highly 
competitive, and the Marketing Charge is intended to provide an 
incentive for order flow providers (``OFPs'') to route Customer orders 
to the Exchange. To the extent the proposed fees permit the Exchange to 
continue to attract greater volume and liquidity, the proposed change 
would also strengthen the Exchange's market quality for all market 
participants.
    The Exchange also believes that its proposed increase to the 
Marketing Charge for Non-Penny Pilot Issues is reasonable and not 
unfairly discriminatory since it is the same as the amount charged by 
competing options exchanges for Non-Penny Pilot Issues.\10\
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    \10\ See supra note 7.
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    The Exchange believes the correction of certain typographical 
errors in Note 3 to section I.A. of the Fee Schedule are reasonable 
because the corrections would add clarity and transparency to the Fee 
Schedule.
    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,\11\ 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 increase in 
certain Marketing Charges are pro-competitive as the proposed increased 
allows the Exchange to fund a program that competes on an equal basis 
with programs on other exchanges,\12\ and 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.
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    \11\ 15 U.S.C. 78f(b)(8).
    \12\ See supra note 7.
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    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) \13\ of the Act and subparagraph (f)(2) of Rule 
19b-4 \14\ thereunder, because it establishes a due, fee, or other 
charge imposed by the Exchange.
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    \13\ 15 U.S.C. 78s(b)(3)(A).
    \14\ 17 CFR 240.19b-4(f)(2).
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    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) \15\ of the Act to determine whether the proposed 
rule change should be approved or disapproved.
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    \15\ 15 U.S.C. 78s(b)(2)(B).
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IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-NYSEMKT-2016-74 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities 
and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.

All submissions should refer to File Number SR-NYSEMKT-2016-74. This 
file number should be included on the subject line if email is used. To 
help the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all 
written statements with respect to the proposed rule change that are 
filed with the Commission, and all written communications relating to 
the proposed rule change between the Commission and any person, other 
than those that may be withheld from the public in accordance with the 
provisions of 5 U.S.C. 552, will be available for Web site viewing and 
printing in the Commission's Public Reference Room, 100 F Street NE., 
Washington, DC 20549 on official business days between the hours of 
10:00 a.m. and 3:00 p.m. Copies of the filing also will be available 
for inspection and copying at the principal office of the Exchange. All 
comments received will be posted without change; the Commission does 
not edit personal identifying information from submissions. You should 
submit only information that you wish to make available publicly. All 
submissions should refer to File Number SR-NYSEMKT-2016-74 and should 
be submitted on or before September 7, 2016.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\16\
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    \16\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-19579 Filed 8-16-16; 8:45 am]
 BILLING CODE 8011-01-P
Federal Register / Vol. 81, No. 159 / Wednesday, August 17, 2016 / Notices 54887

Electronic Comments SECURITIES AND EXCHANGE A. Self-Regulatory Organization’s
COMMISSION Statement of the Purpose of, and the
• Use the Commission’s Internet Statutory Basis for, the Proposed Rule
comment form (http://www.sec.gov/ Change
[Release No. 34–78548; File No. SR–
rules/sro.shtml); or
NYSEMKT–2016–74] 1. Purpose
• Send an email to rule-comments@
sec.gov. Please include File No. SR– Self-Regulatory Organizations; NYSE The purpose of this filing is to amend
NYSE–2016–45 on the subject line. MKT LLC; Notice of Filing and section I. A. of the Fee Schedule to
Immediate Effectiveness of Proposed adjust certain Marketing Charges for
Paper Comments Electronic Executions in standard
Change To Modify the NYSE Amex
• Send paper comments in triplicate Options Fee Schedule options contracts, effective on August 1,
to Brent J. Fields, Secretary, Securities 2016.4
August 11, 2016. The Exchange assesses a Marketing
and Exchange Commission, 100 F Street
NE., Washington, DC 20549–1090. Pursuant to section 19(b)(1) 1 of the Charge to all NYSE Amex Options
Securities Exchange Act of 1934 (the Market Makers, which includes
All submissions should refer to File No. ‘‘Act’’) 2 and Rule 19b–4 thereunder,3 Specialists, e-Specialists and Directed
SR–NYSE–2016–45. This file number notice is hereby given that, on August Order Market Makers (collectively,
should be included on the subject line 1, 2016, NYSE MKT LLC (the ‘‘Market Makers’’) for contracts they
if email is used. To help the ‘‘Exchange’’ or ‘‘NYSE MKT’’) filed with execute Electronically when the contra-
Commission process and review your the Securities and Exchange party to the execution is a Customer.5
comments more efficiently, please use Commission (the ‘‘Commission’’) the Currently, the Exchange collects a
only one method. The Commission will proposed rule change as described in Marketing Charge from Market Makers
post all comments on the Commission’s of $0.25 per contract in Penny Pilot
Items I, II, and III below, which Items
Internet Web site (http://www.sec.gov/ Issues, and $0.65 per contract on in non-
have been prepared by the self-
rules/sro.shtml). Copies of the Penny Pilot Issues.6 The Exchange
regulatory organization. The
submission, all subsequent proposes to modify the Marketing
Commission is publishing this notice to Charge for transactions in non-Penny
amendments, all written statements solicit comments on the proposed rule
with respect to the proposed rule Pilot Issues to $0.70 per contract, which
change from interested persons. is comparable to the marketing fees
change that are filed with the
Commission, and all written I. Self-Regulatory Organization’s charged by competing options
communications relating to the Statement of the Terms of Substance of exchanges.7
proposed rule change between the the Proposed Rule Change The Exchange also proposes to correct
Commission and any person, other than certain typographical errors in Note 3 to
those that may be withheld from the The Exchange proposes to modify the section I.A. of the Fee Schedule, which
public in accordance with the NYSE Amex Options Fee Schedule would add clarity and transparency to
provisions of 5 U.S.C. 552, will be (‘‘Fee Schedule’’). The Exchange the Fee Schedule.
available for Web site viewing and proposes to implement the fee change
2. Statutory Basis
printing in the Commission’s Public effective August 1, 2016. The proposed
Reference Room, 100 F Street NE., change is available on the Exchange’s The Exchange believes that the
Washington, DC 20549 on official Web site at www.nyse.com, at the proposed rule change is consistent with
business days between the hours of principal office of the Exchange, and at section 6(b) of the Act,8 in general, and
10:00 a.m. and 3:00 p.m. Copies of such the Commission’s Public Reference furthers the objectives of sections 6(b)(4)
filing also will be available for Room. and (5) of the Act,9 in particular,
because it provides for the equitable
inspection and copying at the principal II. Self-Regulatory Organization’s allocation of reasonable dues, fees, and
office of the Exchange. All comments Statement of the Purpose of, and other charges among its members,
received will be posted without change; Statutory Basis for, the Proposed Rule issuers and other persons using its
the Commission does not edit personal Change facilities and does not unfairly
identifying information from
submissions. You should submit only In its filing with the Commission, the
4 See Fee Schedule, section I. A. (Rates for
information that you wish to make self-regulatory organization included Standard Options Transactions), available here,
available publicly. All submissions statements concerning the purpose of, https://www.nyse.com/publicdocs/nyse/markets/
should refer to File No. SR–NYSE– and basis for, the proposed rule change amex-options/NYSE_Amex_Options_Fee_
and discussed any comments it received Schedule.pdf.
2016–45, and should be submitted on or 5 As specified in the Fee Schedule, the Exchange
before September 7, 2016. on the proposed rule change. The text acts as an administrator in collecting and re-
of those statements may be examined at distributing all monies collected from the Marketing
For the Commission, by the Division of
the places specified in Item IV below. Charges. See id., Note 3 to Section I. A.
Trading and Markets, pursuant to delegated 6 The term ‘‘non-Penny Pilot Issues’’ applies to
authority.45
The Exchange has prepared summaries,
those option issues that are not in the Penny Pilot
set forth in sections A, B, and C below, pursuant to Rule 960NY, Commentary .02.
Robert W. Errett,
of the most significant parts of such 7 See, e.g., Chicago Board Options Exchange
mstockstill on DSK3G9T082PROD with NOTICES

Deputy Secretary. statements. (‘‘CBOE’’) fee schedule, available here, http://
[FR Doc. 2016–19586 Filed 8–16–16; 8:45 am] www.cboe.com/publish/feeschedule/
CBOEFeeSchedule.pdf (charging a marketing fee of
BILLING CODE 8011–01–P
$0.70 per contract for non-Penny Pilot Issues);
Nasdaq OMX PHLX (‘‘PHLX’’) fee schedule,
available here, http://www.nasdaqtrader.com/
1 15 U.S.C. 78s(b)(1). Micro.aspx?id=phlxpricing (same).
2 15 U.S.C. 78a. 8 15 U.S.C. 78f(b).
45 17 CFR 200.30–3(a)(12). 3 17 CFR 240.19b–4. 9 15 U.S.C. 78f(b)(4) and (5).

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54888 Federal Register / Vol. 81, No. 159 / Wednesday, August 17, 2016 / Notices

discriminate between customers, C. Self-Regulatory Organization’s rules/sro.shtml). Copies of the
issuers, brokers or dealers. Statement on Comments on the submission, all subsequent
The Exchange notes that the U.S. Proposed Rule Change Received From amendments, all written statements
options markets are highly competitive, Members, Participants, or Others with respect to the proposed rule
and the Marketing Charge is intended to No written comments were solicited change that are filed with the
provide an incentive for order flow or received with respect to the proposed Commission, and all written
providers (‘‘OFPs’’) to route Customer rule change. communications relating to the
orders to the Exchange. To the extent proposed rule change between the
the proposed fees permit the Exchange III. Date of Effectiveness of the Commission and any person, other than
to continue to attract greater volume and Proposed Rule Change and Timing for those that may be withheld from the
liquidity, the proposed change would Commission Action public in accordance with the
also strengthen the Exchange’s market The foregoing rule change is effective provisions of 5 U.S.C. 552, will be
quality for all market participants. upon filing pursuant to section available for Web site viewing and
The Exchange also believes that its 19(b)(3)(A) 13 of the Act and printing in the Commission’s Public
proposed increase to the Marketing subparagraph (f)(2) of Rule 19b–4 14 Reference Room, 100 F Street NE.,
Charge for Non-Penny Pilot Issues is thereunder, because it establishes a due, Washington, DC 20549 on official
reasonable and not unfairly fee, or other charge imposed by the business days between the hours of
discriminatory since it is the same as Exchange. 10:00 a.m. and 3:00 p.m. Copies of the
the amount charged by competing At any time within 60 days of the filing also will be available for
options exchanges for Non-Penny Pilot filing of such proposed rule change, the inspection and copying at the principal
Issues.10 Commission summarily may office of the Exchange. All comments
The Exchange believes the correction temporarily suspend such rule change if received will be posted without change;
of certain typographical errors in Note 3 it appears to the Commission that such the Commission does not edit personal
to section I.A. of the Fee Schedule are action is necessary or appropriate in the identifying information from
public interest, for the protection of submissions. You should submit only
reasonable because the corrections
investors, or otherwise in furtherance of information that you wish to make
would add clarity and transparency to
the purposes of the Act. If the available publicly. All submissions
the Fee Schedule.
Commission takes such action, the should refer to File Number SR–
For these reasons, the Exchange NYSEMKT–2016–74 and should be
believes that the proposal is consistent Commission shall institute proceedings
under section 19(b)(2)(B) 15 of the Act to submitted on or before September 7,
with the Act. 2016.
determine whether the proposed rule
B. Self-Regulatory Organization’s change should be approved or For the Commission, by the Division of
Statement on Burden on Competition disapproved. Trading and Markets, pursuant to delegated
authority.16
In accordance with section 6(b)(8) of IV. Solicitation of Comments
the Act,11 the Exchange does not believe
Interested persons are invited to Robert W. Errett,
that the proposed rule change would
impose any burden on competition that submit written data, views, and Deputy Secretary.
is not necessary or appropriate in arguments concerning the foregoing, [FR Doc. 2016–19579 Filed 8–16–16; 8:45 am]
furtherance of the purposes of the Act. including whether the proposed rule BILLING CODE 8011–01–P

The Exchange believes the proposed change is consistent with the Act.
increase in certain Marketing Charges Comments may be submitted by any of
the following methods: SECURITIES AND EXCHANGE
are pro-competitive as the proposed
COMMISSION
increased allows the Exchange to fund Electronic Comments
a program that competes on an equal • Use the Commission’s Internet [Release No. 34–78553; File No. SR–FINRA–
basis with programs on other 2016–030]
comment form (http://www.sec.gov/
exchanges,12 and may encourage OFPs rules/sro.shtml); or
to direct Customer order flow to the Self-Regulatory Organizations;
• Send an email to rule-comments@ Financial Industry Regulatory
Exchange and any resulting increase in sec.gov. Please include File Number SR–
volume and liquidity to the Exchange Authority, Inc.; Notice of Filing of a
NYSEMKT–2016–74 on the subject line. Proposed Rule Change Amending Rule
would benefit all Exchange participants
through increased opportunities to trade Paper Comments 12504 of the Code of Arbitration
Procedure for Customer Disputes and
as well as enhancing price discovery. • Send paper comments in triplicate
Rule 13504 of the Code of Arbitration
The Exchange notes that it operates in to Secretary, Securities and Exchange
Procedure for Industry Disputes
a highly competitive market in which Commission, 100 F Street NE.,
Relating to Motions To Dismiss in
market participants can readily favor Washington, DC 20549–1090.
Arbitration
competing venues. In such an All submissions should refer to File
environment, the Exchange must Number SR–NYSEMKT–2016–74. This August 11, 2016.
continually review, and consider file number should be included on the Pursuant to section 19(b)(1) of the
adjusting, its fees and credits to remain subject line if email is used. To help the Securities Exchange Act of 1934
competitive with other exchanges. For Commission process and review your (‘‘Act’’) 1 and Rule 19b–4 thereunder,2
mstockstill on DSK3G9T082PROD with NOTICES

the reasons described above, the comments more efficiently, please use notice is hereby given that on August 3,
Exchange believes that the proposed only one method. The Commission will 2016, Financial Industry Regulatory
rule change reflects this competitive post all comments on the Commission’s Authority, Inc. (‘‘FINRA’’) filed with the
environment. Internet Web site (http://www.sec.gov/ Securities and Exchange Commission
10 See supra note 7. 13 15 U.S.C. 78s(b)(3)(A). 16 17 CFR 200.30–3(a)(12).
11 15 U.S.C. 78f(b)(8). 14 17 CFR 240.19b–4(f)(2). 1 15 U.S.C. 78s(b)(1).
12 See supra note 7. 15 15 U.S.C. 78s(b)(2)(B). 2 17 CFR 240.19b-4.

VerDate Sep<11>2014 16:39 Aug 16, 2016 Jkt 238001 PO 00000 Frm 00103 Fmt 4703 Sfmt 4703 E:\FR\FM\17AUN1.SGM 17AUN1
Document Created: 2018-02-09 11:34:58
Document Modified: 2018-02-09 11:34:58
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 54887