81 FR 7390 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending the NYSE Arca Options Fee Schedule
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 28 (February 11, 2016)
Federal Register Volume 81, Issue 28 (February 11, 2016)
| Page Range | 7390-7391 | |
| FR Document | 2016-02732 |
[Federal Register Volume 81, Number 28 (Thursday, February 11, 2016)] [Notices] [Pages 7390-7391] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-02732] [[Page 7390]] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-77067; File No. SR-NYSEARCA-2016-24] Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending the NYSE Arca Options Fee Schedule February 5, 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 February 1, 2016, NYSE Arca, Inc. (the ``Exchange'' or ``NYSE Arca'') 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 the Substance of the Proposed Rule Change The Exchange proposes to amend the NYSE Arca Options Fee Schedule (``Fee Schedule''). The Exchange proposes to implement the fee change effective February 1, 2016. The proposed rule change is available on the Exchange's Web site at www.nyse.com, at the principal office of the Exchange, and at the Commission's Public Reference Room. II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the self-regulatory organization included statements concerning the purpose of, and basis for, the proposed rule change and discussed any comments it received on the proposed rule change. The text of those statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant parts of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The purpose of this filing is to clarify an aspect of the tiers for the Firm and Broker Dealer Monthly Firm Cap. The Exchange proposes to have the clarification effective February 1, 2016. Currently, for trade-related charges for standard options, the Exchange has a Firm and Broker Dealer Monthly Fee Cap (``Firm Cap'') that places a limit, or cap, of $100,000 per month on combined Firm Proprietary Fees and Broker Dealer Fees for transactions in standard options contracts cleared in the customer range for Manual (Open Outcry) Executions, and QCC Transactions executed by a Floor Broker from the Floor of the Exchange. The Firm Cap excludes Strategy Executions, Royalty Fees, and firm trades executed via a Joint Back Office agreement, and also excludes Mini option contracts. On August 1, 2015, the Exchange adopted Tiered Caps based on the Firm's achieving one of the higher Customer and Professional Customer Monthly Posting Credit Tiers.\4\ Firms receiving the base Posting Credit for Customer or Professional Customer Order executions in Penny Pilot issues would continue to be capped at a $100,000 per month Firm Cap. Firms that achieve a higher Customer and Professional Customer Monthly Posting Credit Tier would be capped at progressively lower totals, dependent on achieving higher tiers. --------------------------------------------------------------------------- \4\ See Exchange Act Release No. 75704 (August 14, 2015) 80 FR 50683(August 20, 2015) (SR-NYSEArca-2015-71). --------------------------------------------------------------------------- At the time the Tiered Caps were adopted, there were six Customer and Professional Customer Monthly Posting Credit Tiers. Recently, on November 2, 2015, the Exchange adopted a seventh Customer and Professional Customer Monthly Posting Credit Tier.\5\ However, at the time that the additional Customer and Professional Customer Monthly Posting Credit Tier was added, there was no modification to the Firm and Broker Dealer Monthly Firm Cap Tiers, nor was there any intention to do so. --------------------------------------------------------------------------- \5\ See Exchange Act Release No. 76438 (November 13, 2015) 80 FR 72465 (November 19, 2015) (SR-NYSEArca-2015-108). --------------------------------------------------------------------------- The Exchange has received a request for clarification, and in the interest of reducing any possible investor confusion, proposes to amend the Fee Schedule to provide that the Firm Cap currently applicable to Tier 6 is also applicable to Tier 7, as follows (proposed new text italicized): Firm and Broker Dealer Monthly Firm Cap Tiers ------------------------------------------------------------------------ Customer and professional customer monthly posting credit tier achieved Firm cap ------------------------------------------------------------------------ Base or Tier 1.......................................... $100,000 Tier 2.................................................. 85,000 Tier 3.................................................. 80,000 Tier 4.................................................. 75,000 Tier 5.................................................. 70,000 Tier 6 or 7............................................. 65,000 ------------------------------------------------------------------------ 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 the proposed change clarifying Tiered Firm Caps is reasonable, equitable, and not unfairly discriminatory, because the proposed rule change does not change any fees, but rather clarifies that the Firm Cap level currently in place for the Customer and Professional Customer Monthly Posting Credit Tier 6 would also be applicable to the Customer and Professional Customer Monthly Posting Credit Tier 7. Accordingly, the proposed rule change is designed to promote transparency and reduce investor confusion by aligning all of the eligible Customer and Professional Monthly Posting Credit Tiers with the Firm Caps. 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,\8\ the Exchange does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. Instead, the Exchange believes that the proposed change would continue to encourage competition, including by attracting a wider variety of business to the Exchange, which would continue to make the Exchange a more competitive venue for, among other things, order execution and price discovery. --------------------------------------------------------------------------- \8\ 15 U.S.C. 78f(b)(8). --------------------------------------------------------------------------- The Exchange notes that it operates in a highly competitive market in which [[Page 7391]] 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) \9\ of the Act and subparagraph (f)(2) of Rule 19b- 4 \10\ thereunder, because it establishes a due, fee, or other charge imposed by the Exchange. --------------------------------------------------------------------------- \9\ 15 U.S.C. 78s(b)(3)(A). \10\ 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) \11\ of the Act to determine whether the proposed rule change should be approved or disapproved. --------------------------------------------------------------------------- \11\ 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-NYSEARCA-2016-24 on the subject line. Paper Comments Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090. All submissions should refer to File Number SR-NYSEARCA-2016-24. 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-NYSEARCA-2016-24, and should be submitted on or before March 3, 2016. --------------------------------------------------------------------------- \12\ 17 CFR 200.30-3(a)(12). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\12\ Brent J. Fields, Secretary. [FR Doc. 2016-02732 Filed 2-10-16; 8:45 am] BILLING CODE 8011-01-P
![7390 Federal Register / Vol. 81, No. 28 / Thursday, February 11, 2016 / Notices
SECURITIES AND EXCHANGE A. Self-Regulatory Organization’s FIRM AND BROKER DEALER MONTHLY
COMMISSION Statement of the Purpose of, and FIRM CAP TIERS
Statutory Basis for, the Proposed Rule
[Release No. 34–77067; File No. SR– Change Customer and professional
customer monthly posting Firm cap
NYSEARCA–2016–24] 1. Purpose credit tier achieved
The purpose of this filing is to clarify
Self-Regulatory Organizations; NYSE Base or Tier 1 ....................... $100,000
an aspect of the tiers for the Firm and
Arca, Inc.; Notice of Filing and Tier 2 .................................... 85,000
Broker Dealer Monthly Firm Cap. The Tier 3 .................................... 80,000
Immediate Effectiveness of Proposed Exchange proposes to have the
Rule Change Amending the NYSE Arca Tier 4 .................................... 75,000
clarification effective February 1, 2016. Tier 5 .................................... 70,000
Options Fee Schedule Currently, for trade-related charges for Tier 6 or 7 ............................. 65,000
February 5, 2016.
standard options, the Exchange has a
Firm and Broker Dealer Monthly Fee 2. Statutory Basis
Pursuant to Section 19(b)(1) 1 of the Cap (‘‘Firm Cap’’) that places a limit, or
Securities Exchange Act of 1934 (the The Exchange believes that the
cap, of $100,000 per month on
proposed rule change is consistent with
‘‘Act’’) 2 and Rule 19b–4 thereunder,3 combined Firm Proprietary Fees and
Section 6(b) of the Act,6 in general, and
notice is hereby given that, on February Broker Dealer Fees for transactions in
furthers the objectives of Sections
1, 2016, NYSE Arca, Inc. (the standard options contracts cleared in
6(b)(4) and (5) of the Act,7 in particular,
‘‘Exchange’’ or ‘‘NYSE Arca’’) filed with the customer range for Manual (Open
because it provides for the equitable
the Securities and Exchange Outcry) Executions, and QCC
allocation of reasonable dues, fees, and
Commission (the ‘‘Commission’’) the Transactions executed by a Floor Broker
other charges among its members,
proposed rule change as described in from the Floor of the Exchange. The
issuers and other persons using its
Items I, II, and III below, which Items Firm Cap excludes Strategy Executions,
facilities and does not unfairly
have been prepared by the self- Royalty Fees, and firm trades executed
discriminate between customers,
regulatory organization. The via a Joint Back Office agreement, and
issuers, brokers or dealers.
also excludes Mini option contracts. The Exchange believes the proposed
Commission is publishing this notice to
On August 1, 2015, the Exchange
solicit comments on the proposed rule change clarifying Tiered Firm Caps is
adopted Tiered Caps based on the
change from interested persons. reasonable, equitable, and not unfairly
Firm’s achieving one of the higher
discriminatory, because the proposed
I. Self-Regulatory Organization’s Customer and Professional Customer
rule change does not change any fees,
Statement of the Terms of the Substance Monthly Posting Credit Tiers.4 Firms
but rather clarifies that the Firm Cap
of the Proposed Rule Change receiving the base Posting Credit for
level currently in place for the Customer
Customer or Professional Customer
and Professional Customer Monthly
The Exchange proposes to amend the Order executions in Penny Pilot issues
Posting Credit Tier 6 would also be
NYSE Arca Options Fee Schedule (‘‘Fee would continue to be capped at a
applicable to the Customer and
Schedule’’). The Exchange proposes to $100,000 per month Firm Cap. Firms
Professional Customer Monthly Posting
implement the fee change effective that achieve a higher Customer and
Credit Tier 7. Accordingly, the proposed
February 1, 2016. The proposed rule Professional Customer Monthly Posting
rule change is designed to promote
change is available on the Exchange’s Credit Tier would be capped at
transparency and reduce investor
Web site at www.nyse.com, at the progressively lower totals, dependent on
confusion by aligning all of the eligible
principal office of the Exchange, and at achieving higher tiers.
At the time the Tiered Caps were Customer and Professional Monthly
the Commission’s Public Reference Posting Credit Tiers with the Firm Caps.
adopted, there were six Customer and
Room. For these reasons, the Exchange
Professional Customer Monthly Posting
believes that the proposal is consistent
II. Self-Regulatory Organization’s Credit Tiers. Recently, on November 2,
with the Act.
Statement of the Purpose of, and 2015, the Exchange adopted a seventh
Statutory Basis for, the Proposed Rule Customer and Professional Customer B. Self-Regulatory Organization’s
Change Monthly Posting Credit Tier.5 However, Statement on Burden on Competition
at the time that the additional Customer In accordance with Section 6(b)(8) of
In its filing with the Commission, the and Professional Customer Monthly the Act,8 the Exchange does not believe
self-regulatory organization included Posting Credit Tier was added, there that the proposed rule change will
statements concerning the purpose of, was no modification to the Firm and impose any burden on competition that
and basis for, the proposed rule change Broker Dealer Monthly Firm Cap Tiers, is not necessary or appropriate in
and discussed any comments it received nor was there any intention to do so. furtherance of the purposes of the Act.
on the proposed rule change. The text The Exchange has received a request Instead, the Exchange believes that the
of those statements may be examined at for clarification, and in the interest of proposed change would continue to
the places specified in Item IV below. reducing any possible investor encourage competition, including by
The Exchange has prepared summaries, confusion, proposes to amend the Fee attracting a wider variety of business to
set forth in sections A, B, and C below, Schedule to provide that the Firm Cap the Exchange, which would continue to
currently applicable to Tier 6 is also make the Exchange a more competitive
of the most significant parts of such
mstockstill on DSK4VPTVN1PROD with NOTICES
applicable to Tier 7, as follows venue for, among other things, order
statements.
(proposed new text italicized): execution and price discovery.
The Exchange notes that it operates in
4 See Exchange Act Release No. 75704 (August 14,
a highly competitive market in which
2015) 80 FR 50683(August 20, 2015) (SR–
NYSEArca–2015–71).
1 15 U.S.C.78s(b)(1). 6 15
5 See Exchange Act Release No. 76438 (November U.S.C. 78f(b).
2 15 U.S.C. 78a. 7 15
13, 2015) 80 FR 72465 (November 19, 2015) (SR– U.S.C. 78f(b)(4) and (5).
3 17 CFR 240.19b–4. NYSEArca–2015–108). 8 15 U.S.C. 78f(b)(8).
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![Federal Register / Vol. 81, No. 28 / Thursday, February 11, 2016 / Notices 7391
market participants can readily favor Commission, 100 F Street NE., under sections 6(c) and 17(b) of the Act
competing venues. Washington, DC 20549–1090. for an exemption from sections 17(a)(1)
In such an environment, the Exchange All submissions should refer to File and (2) of the Act. The requested order
must continually review, and consider Number SR–NYSEARCA–2016–24. This would permit certain registered open-
adjusting, its fees and credits to remain file number should be included on the end investment companies to acquire
competitive with other exchanges. For subject line if email is used. To help the shares of certain registered open-end
the reasons described above, the Commission process and review your investment companies, registered
Exchange believes that the proposed comments more efficiently, please use closed-end investment companies,
rule change reflects this competitive only one method. The Commission will business development companies, as
environment. post all comments on the Commission’s defined in section 2(a)(48) of the Act,
C. Self-Regulatory Organization’s Internet Web site (http://www.sec.gov/ and unit investment trusts (collectively,
Statement on Comments on the rules/sro.shtml). Copies of the ‘‘Underlying Funds’’) that are within
Proposed Rule Change Received From submission, all subsequent and outside the same group of
Members, Participants, or Others amendments, all written statements investment companies as the acquiring
with respect to the proposed rule investment companies, in excess of the
No written comments were solicited limits in section 12(d)(1) of the Act.
change that are filed with the
or received with respect to the proposed
Commission, and all written
rule change. APPLICANTS: Good Hill ETF Trust, a
communications relating to the
III. Date of Effectiveness of the proposed rule change between the Massachusetts business trust that
Proposed Rule Change and Timing for intends to register under the Act as an
Commission and any person, other than
Commission Action open-end management investment
those that may be withheld from the
company with multiple series and Good
The foregoing rule change is effective public in accordance with the
Hill Partners LP, a Delaware limited
upon filing pursuant to Section provisions of 5 U.S.C. 552, will be
partnership registered as an investment
19(b)(3)(A) 9 of the Act and available for Web site viewing and
adviser under the Investment Advisers
subparagraph (f)(2) of Rule 19b–4 10 printing in the Commission’s Public
Act of 1940.
thereunder, because it establishes a due, Reference Room, 100 F Street NE.,
FILING DATES: The application was filed
fee, or other charge imposed by the Washington, DC 20549 on official
business days between the hours of on June 30, 2015 and amended on
Exchange. October 16, 2015.
At any time within 60 days of the 10:00 a.m. and 3:00 p.m. Copies of such
filing also will be available for HEARING OR NOTIFICATION OF HEARING:
filing of such proposed rule change, the
Commission summarily may inspection and copying at the principal An order granting the requested relief
temporarily suspend such rule change if office of the Exchange. All comments will be issued unless the Commission
it appears to the Commission that such received will be posted without change; orders a hearing. Interested persons may
action is necessary or appropriate in the the Commission does not edit personal request a hearing by writing to the
public interest, for the protection of identifying information from Commission’s Secretary and serving
investors, or otherwise in furtherance of submissions. You should submit only applicants with a copy of the request,
the purposes of the Act. If the information that you wish to make personally or by mail. Hearing requests
Commission takes such action, the available publicly. All submissions should be received by the Commission
Commission shall institute proceedings should refer to File Number SR– by 5:30 p.m. on March 1, 2016 and
under Section 19(b)(2)(B) 11 of the Act to NYSEARCA–2016–24, and should be should be accompanied by proof of
determine whether the proposed rule submitted on or before March 3, 2016. service on the applicants, in the form of
change should be approved or an affidavit, or, for lawyers, a certificate
For the Commission, by the Division of
disapproved. of service. Pursuant to Rule 0–5 under
Trading and Markets, pursuant to delegated
authority.12 the Act, hearing requests should state
IV. Solicitation of Comments the nature of the writer’s interest, any
Brent J. Fields,
Interested persons are invited to facts bearing upon the desirability of a
Secretary.
submit written data, views, and hearing on the matter, the reason for the
[FR Doc. 2016–02732 Filed 2–10–16; 8:45 am]
arguments concerning the foregoing, request, and the issues contested.
BILLING CODE 8011–01–P Persons who wish to be notified of a
including whether the proposed rule
change is consistent with the Act. hearing may request notification by
Comments may be submitted by any of writing to the Commission’s Secretary.
SECURITIES AND EXCHANGE
the following methods: ADDRESSES: Secretary, U.S. Securities
COMMISSION
Electronic Comments and Exchange Commission, 100 F Street
[Investment Company Act Release No. NE., Washington, DC 20549–1090.
• Use the Commission’s Internet 31986; File No. 812–14505] Applicants: c/o William Hauf, Good Hill
comment form (http://www.sec.gov/ Partners LP, 1599 Post Road East,
rules/sro.shtml); or Good Hill Partners LP and Good Hill Westport, Connecticut 06880.
• Send an email to rule-comments@ ETF Trust; Notice of Application
FOR FURTHER INFORMATION CONTACT:
sec.gov. Please include File Number SR– Bruce R. MacNeil, Senior Counsel, at
February 5, 2016.
NYSEARCA–2016–24 on the subject (202) 551–6817, or James M. Curtis,
AGENCY: Securities and Exchange
line. Branch Chief, at (202) 551–6712
Commission (‘‘Commission’’).
mstockstill on DSK4VPTVN1PROD with NOTICES
Paper Comments ACTION: Notice of an application for an (Division of Investment Management,
• Send paper comments in triplicate order under section 12(d)(1)(J) of the Chief Counsel’s Office).
to Secretary, Securities and Exchange Investment Company Act of 1940 (the SUPPLEMENTARY INFORMATION: The
‘‘Act’’) for an exemption from sections following is a summary of the
9 15 U.S.C. 78s(b)(3)(A). 12(d)(1)(A), (B), and (C) of the Act and application. The complete application
10 17 CFR 240.19b–4(f)(2). may be obtained via the Commission’s
11 15 U.S.C. 78s(b)(2)(B). 12 17 CFR 200.30–3(a)(12). Web site by searching for the file
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Document Created: 2016-02-11 00:03:47
Document Modified: 2016-02-11 00:03:47
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
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| Section | Notices | |
| FR Citation | 81 FR 7390 |
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