81 FR 78217 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the NYSE Arca Options Fee Schedule Effective November 1, 2016

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 215 (November 7, 2016)

Page Range		78217-78219
FR Document		2016-26788
Federal Register, Volume 81 Issue 215 (Monday, November 7, 2016)
[Federal Register Volume 81, Number 215 (Monday, November 7, 2016)]
[Notices]
[Pages 78217-78219]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-26788]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-79209; File No. SR-NYSEArca-2016-138]


Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change To Amend the NYSE 
Arca Options Fee Schedule Effective November 1, 2016

November 1, 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 October 25, 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.
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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 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 November 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 provide for fees for manually 
executed Professional Customer orders, effective November 1, 2016.
    Currently, the Exchange does not differentiate between Customer and 
Professional Customer orders for purposes of manual transaction fees, 
and Customers and Professional Customers are not charged any fee for 
orders executed in open outcry.\4\
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    \4\ Per the Fee Schedule, ``[u]nless Professional Customer 
executions are specifically delineated, such executions will be 
treated as Customer executions for fee purposes.'' See Fee Schedule, 
available here, https://www.nyse.com/publicdocs/nyse/markets/arca-options/NYSE_Arca_Options_Fee_Schedule.pdf.

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[[Page 78218]]

    The Exchange proposes to assess a fee of $0.25 per contract for 
Professional Customer orders that are executed manually, and to modify 
the Fee Schedule to reflect this change. This proposed assessment would 
mean Professional Customers are charged the same rate as Firms and 
Broker Dealers for manual orders.
    The Exchange is not proposing any other modification to Transaction 
Fees at this time.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act,\5\ in general, and furthers the 
objectives of Sections 6(b)(4) and (5) of the Act,\6\ 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.
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    \5\ 15 U.S.C. 78f(b).
    \6\ 15 U.S.C. 78f(b)(4) and (5).
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    The Exchange believes that the proposed change is reasonable, 
equitable and not unfairly discriminatory because Professional 
Customers submit more than 390 orders in listed options per day on 
average and generally engage in trading activity similar to non-
Customers. Thus, the Exchange believes it is appropriate to charge 
Professional Customers the same fee it assesses Firms and Broker 
Dealers (i.e., non-Customers) for manual transactions. In addition, the 
proposed change is competitive as other options exchanges likewise 
treat Professional Customers as non-Customers for purposes of order 
[sic] executed in open outcry.\7\
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    \7\ See, e.g., NYSE Amex Options fee schedule, available here, 
https://www.nyse.com/publicdocs/nyse/markets/amexoptions/NYSE_Amex_Options_Fee_Schedule.pdf (charging the Professional 
Customers the same rate as Broker Dealers and Firms); NASDAQ OMX 
PHLX fee schedule, available here, http://www.nasdaqtrader.com/Micro.aspx?id=phlxpricing (same).
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    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 by treating Professional 
Customers on the same basis as non-Customers. The Exchange's proposal 
does not place on undue burden on inter-market competition because 
other exchanges likewise charge Professional Customers the same rate as 
non-Customer for manual transactions.\9\ The Exchange does not believe 
that the proposed change will impair the ability of any market 
participants or competing order execution venues to maintain their 
competitive standing in the financial markets.
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    \8\ 15 U.S.C. 78f(b)(8).
    \9\ See supra note 6.
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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. Because competitors are free to modify their own fees in 
response, and because market participants may readily adjust their 
order routing practices, the degree to which fee changes in this market 
may impose any burden on competition is extremely limited. 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) \10\ of the Act and subparagraph (f)(2) of Rule 
19b-4 \11\ thereunder, because it establishes a due, fee, or other 
charge imposed by the Exchange.
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    \10\ 15 U.S.C. 78s(b)(3)(A).
    \11\ 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) \12\ of the Act to determine whether the proposed 
rule change should be approved or disapproved.
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    \12\ 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-NYSEArca-2016-138 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-NYSEArca-2016-138. 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-2016-138, and 
should be submitted on or before November 28, 2016.


[[Page 78219]]


    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\13\
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    \13\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2016-26788 Filed 11-4-16; 8:45 am]
 BILLING CODE 8011-01-P
Federal Register / Vol. 81, No. 215 / Monday, November 7, 2016 / Notices 78217

changes in this market may impose any and Exchange Commission, 100 F Street ‘‘Act’’) 2 and Rule 19b–4 thereunder,3
burden on competition is extremely NE., Washington, DC 20549–1090. notice is hereby given that, on October
limited. As a result of all of these All submissions should refer to File 25, 2016, NYSE Arca, Inc. (the
considerations, the Exchange does not Number SR–NYSE–2016–68. This file ‘‘Exchange’’ or ‘‘NYSE Arca’’) filed with
believe that the proposed change will number should be included on the the Securities and Exchange
impair the ability of member subject line if email is used. To help the Commission (the ‘‘Commission’’) the
organizations or competing order Commission process and review your proposed rule change as described in
execution venues to maintain their comments more efficiently, please use Items I, II, and III below, which Items
competitive standing in the financial only one method. The Commission will have been prepared by the self-
markets. post all comments on the Commission’s regulatory organization. The
Internet Web site (http://www.sec.gov/ Commission is publishing this notice to
C. Self-Regulatory Organization’s solicit comments on the proposed rule
Statement on Comments on the rules/sro.shtml). Copies of the
submission, all subsequent change from interested persons.
Proposed Rule Change Received From
Members, Participants, or Others amendments, all written statements I. Self-Regulatory Organization’s
with respect to the proposed rule Statement of the Terms of the Substance
No written comments were solicited change that are filed with the of the Proposed Rule Change
or received with respect to the proposed Commission, and all written
rule change. The Exchange proposes to amend the
communications relating to the
NYSE Arca Options Fee Schedule (‘‘Fee
III. Date of Effectiveness of the proposed rule change between the
Schedule’’). The Exchange proposes to
Proposed Rule Change and Timing for Commission and any person, other than implement the fee change effective
Commission Action those that may be withheld from the November 1, 2016. The proposed rule
public in accordance with the change is available on the Exchange’s
The foregoing rule change is effective provisions of 5 U.S.C. 552, will be
upon filing pursuant to Section Web site at www.nyse.com, at the
available for Web site viewing and principal office of the Exchange, and at
19(b)(3)(A) 17 of the Act and printing in the Commission’s Public
subparagraph (f)(2) of Rule 19b–4 18 the Commission’s Public Reference
Reference Room, 100 F Street NE., Room.
thereunder, because it establishes a due, Washington, DC 20549 on official
fee, or other charge imposed by the business days between the hours of II. Self-Regulatory Organization’s
Exchange. 10:00 a.m. and 3:00 p.m. Copies of the Statement of the Purpose of, and
At any time within 60 days of the filing also will be available for Statutory Basis for, the Proposed Rule
filing of such proposed rule change, the inspection and copying at the principal Change
Commission summarily may office of the Exchange. All comments In its filing with the Commission, the
temporarily suspend such rule change if received will be posted without change; self-regulatory organization included
it appears to the Commission that such the Commission does not edit personal statements concerning the purpose of,
action is necessary or appropriate in the identifying information from and basis for, the proposed rule change
public interest, for the protection of submissions. You should submit only and discussed any comments it received
investors, or otherwise in furtherance of information that you wish to make on the proposed rule change. The text
the purposes of the Act. If the available publicly. All submissions of those statements may be examined at
Commission takes such action, the should refer to File Number SR–NYSE– the places specified in Item IV below.
Commission shall institute proceedings 2016–68 and should be submitted on or The Exchange has prepared summaries,
under Section 19(b)(2)(B) 19 of the Act to before November 28, 2016. set forth in sections A, B, and C below,
determine whether the proposed rule
For the Commission, by the Division of of the most significant parts of such
change should be approved or
Trading and Markets, pursuant to delegated statements.
disapproved.
authority.20
A. Self-Regulatory Organization’s
IV. Solicitation of Comments Brent J. Fields, Statement of the Purpose of, and
Interested persons are invited to Secretary. Statutory Basis for, the Proposed Rule
submit written data, views, and [FR Doc. 2016–26789 Filed 11–4–16; 8:45 am] Change
arguments concerning the foregoing, BILLING CODE 8011–01–P
including whether the proposed rule 1. Purpose
change is consistent with the Act. The purpose of this filing is to
Comments may be submitted by any of SECURITIES AND EXCHANGE provide for fees for manually executed
the following methods: COMMISSION Professional Customer orders, effective
[Release No. 34–79209; File No. SR– November 1, 2016.
Electronic Comments Currently, the Exchange does not
NYSEArca–2016–138]
• Use the Commission’s Internet differentiate between Customer and
comment form (http://www.sec.gov/ Self-Regulatory Organizations; NYSE Professional Customer orders for
rules/sro.shtml); or Arca, Inc.; Notice of Filing and purposes of manual transaction fees,
• Send an email to rule-comments@ Immediate Effectiveness of Proposed and Customers and Professional
sec.gov. Please include File Number SR– Rule Change To Amend the NYSE Arca Customers are not charged any fee for
NYSE–2016–68 on the subject line. Options Fee Schedule Effective orders executed in open outcry.4
sradovich on DSK3GMQ082PROD with NOTICES

Paper Comments November 1, 2016
2 15 U.S.C. 78a.
• Send paper comments in triplicate November 1, 2016. 3 17 CFR 240.19b–4.
4 Per the Fee Schedule, ‘‘[u]nless Professional
to Brent J. Fields, Secretary, Securities Pursuant to Section 19(b)(1) 1 of the
Customer executions are specifically delineated,
Securities Exchange Act of 1934 (the such executions will be treated as Customer
17 15 U.S.C. 78s(b)(3)(A). executions for fee purposes.’’ See Fee Schedule,
18 17 CFR 240.19b–4(f)(2). 20 17 CFR 200.30–3(a)(12). available here, https://www.nyse.com/publicdocs/
19 15 U.S.C. 78s(b)(2)(B). 1 15 U.S.C. 78s(b)(1). Continued

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78218 Federal Register / Vol. 81, No. 215 / Monday, November 7, 2016 / Notices

The Exchange proposes to assess a fee proposed change would continue to determine whether the proposed rule
of $0.25 per contract for Professional encourage competition by treating change should be approved or
Customer orders that are executed Professional Customers on the same disapproved.
manually, and to modify the Fee basis as non-Customers. The Exchange’s
IV. Solicitation of Comments
Schedule to reflect this change. This proposal does not place on undue
proposed assessment would mean burden on inter-market competition Interested persons are invited to
Professional Customers are charged the because other exchanges likewise charge submit written data, views, and
same rate as Firms and Broker Dealers Professional Customers the same rate as arguments concerning the foregoing,
for manual orders. non-Customer for manual transactions.9 including whether the proposed rule
The Exchange is not proposing any The Exchange does not believe that the change is consistent with the Act.
other modification to Transaction Fees proposed change will impair the ability Comments may be submitted by any of
at this time. of any market participants or competing the following methods:
2. Statutory Basis order execution venues to maintain
their competitive standing in the Electronic Comments
The Exchange believes that the financial markets.
proposed rule change is consistent with • Use the Commission’s Internet
The Exchange notes that it operates in comment form (http://www.sec.gov/
Section 6(b) of the Act,5 in general, and a highly competitive market in which
furthers the objectives of Sections rules/sro.shtml); or
market participants can readily favor
6(b)(4) and (5) of the Act,6 in particular, • Send an email to rule-comments@
competing venues. In such an
because it provides for the equitable sec.gov. Please include File Number SR–
environment, the Exchange must
allocation of reasonable dues, fees, and NYSEArca–2016–138 on the subject
continually review, and consider
other charges among its members, line.
adjusting, its fees and credits to remain
issuers and other persons using its competitive with other exchanges. Paper Comments
facilities and does not unfairly Because competitors are free to modify
discriminate between customers, their own fees in response, and because • Send paper comments in triplicate
issuers, brokers or dealers. market participants may readily adjust to Brent J. Fields, Secretary, Securities
The Exchange believes that the their order routing practices, the degree and Exchange Commission, 100 F Street
proposed change is reasonable, to which fee changes in this market may NE., Washington, DC 20549–1090.
equitable and not unfairly impose any burden on competition is All submissions should refer to File
discriminatory because Professional extremely limited. For the reasons Number SR–NYSEArca–2016–138. This
Customers submit more than 390 orders described above, the Exchange believes file number should be included on the
in listed options per day on average and that the proposed rule change reflects subject line if email is used. To help the
generally engage in trading activity this competitive environment. Commission process and review your
similar to non-Customers. Thus, the
C. Self-Regulatory Organization’s comments more efficiently, please use
Exchange believes it is appropriate to
Statement on Comments on the only one method. The Commission will
charge Professional Customers the same
Proposed Rule Change Received From post all comments on the Commission’s
fee it assesses Firms and Broker Dealers
Members, Participants, or Others Internet Web site (http://www.sec.gov/
(i.e., non-Customers) for manual
rules/sro.shtml). Copies of the
transactions. In addition, the proposed No written comments were solicited submission, all subsequent
change is competitive as other options or received with respect to the proposed amendments, all written statements
exchanges likewise treat Professional rule change. with respect to the proposed rule
Customers as non-Customers for
III. Date of Effectiveness of the change that are filed with the
purposes of order [sic] executed in open
Proposed Rule Change and Timing for Commission, and all written
outcry.7
Commission Action communications relating to the
For these reasons, the Exchange
proposed rule change between the
believes that the proposal is consistent The foregoing rule change is effective Commission and any person, other than
with the Act. upon filing pursuant to Section those that may be withheld from the
B. Self-Regulatory Organization’s 19(b)(3)(A) 10 of the Act and public in accordance with the
Statement on Burden on Competition subparagraph (f)(2) of Rule 19b–4 11 provisions of 5 U.S.C. 552, will be
thereunder, because it establishes a due, available for Web site viewing and
In accordance with Section 6(b)(8) of fee, or other charge imposed by the
the Act,8 the Exchange does not believe printing in the Commission’s Public
Exchange. Reference Room, 100 F Street NE.,
that the proposed rule change will At any time within 60 days of the
impose any burden on competition that Washington, DC 20549 on official
filing of such proposed rule change, the business days between the hours of
is not necessary or appropriate in Commission summarily may
furtherance of the purposes of the Act. 10:00 a.m. and 3:00 p.m. Copies of such
temporarily suspend such rule change if filing also will be available for
Instead, the Exchange believes that the it appears to the Commission that such inspection and copying at the principal
action is necessary or appropriate in the office of the Exchange. All comments
nyse/markets/arca-options/NYSE_Arca_Options_
Fee_Schedule.pdf.
public interest, for the protection of received will be posted without change;
5 15 U.S.C. 78f(b). investors, or otherwise in furtherance of the Commission does not edit personal
6 15 U.S.C. 78f(b)(4) and (5). the purposes of the Act. If the identifying information from
sradovich on DSK3GMQ082PROD with NOTICES

7 See, e.g., NYSE Amex Options fee schedule, Commission takes such action, the submissions. You should submit only
available here, https://www.nyse.com/publicdocs/ Commission shall institute proceedings information that you wish to make
nyse/markets/amexoptions/NYSE_Amex_Options_ under Section 19(b)(2)(B) 12 of the Act to
Fee_Schedule.pdf (charging the Professional available publicly. All submissions
Customers the same rate as Broker Dealers and
9 See
should refer to File Number SR–
Firms); NASDAQ OMX PHLX fee schedule, supra note 6.
10 15 U.S.C. 78s(b)(3)(A).
NYSEArca–2016–138, and should be
available here, http://www.nasdaqtrader.com/
Micro.aspx?id=phlxpricing (same). 11 17 CFR 240.19b–4(f)(2). submitted on or before November 28,
8 15 U.S.C. 78f(b)(8). 12 15 U.S.C. 78s(b)(2)(B). 2016.

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For the Commission, by the Division of set forth in sections A, B, and C below, same strategy by an amount specified by
Trading and Markets, pursuant to delegated of the most significant parts of such the Exchange (‘Specified Amount’).’’
authority.13 statements. The Exchange proposes to replace
Brent J. Fields, references to the ‘‘derived contra-side
A. Self-Regulatory Organization’s
Secretary. net debit/credit NBBO’’ with the
Statement of the Purpose of, and the
[FR Doc. 2016–26788 Filed 11–4–16; 8:45 am] ‘‘contra-side Complex NBBO,’’ as the
Statutory Basis for, the Proposed Rule
BILLING CODE 8011–01–P Exchange has defined Complex NBBO
Change
since implementing the Filter.8 This
1. Purpose proposed modification would not affect
SECURITIES AND EXCHANGE The Exchange is proposing to amend the operation of the rule. Rather, the
COMMISSION Commentary .05 to Rule 980NY to Exchange believes this change would
enhance the Exchange’s price protection reduce redundancy and add internal
[Release No. 34–79213; File No. SR–
NYSEMKT–2016–98] filters applicable to electronically consistency to Exchange rules. Further,
entered Complex Orders,4 including by regarding the description of how the
Self-Regulatory Organizations; NYSE clarifying how the functionality Filter operates, the Exchange proposes
MKT LLC; Notice of Filing and operates and expanding its application, to provide that the Filter would reject an
Immediate Effectiveness of Proposed as described below. ECO back to the submitting ATP Holder
Rule Change Amending Commentary if the sum of the following would be
.05 to Rule 980NY Clarifying the Description of the Filter less than zero ($0.00):
Commentary .05 to Rule 980NY (i) The net debit (credit) limit price of
November 1, 2016. currently sets forth the Price Protection the order,
Pursuant to Section 19(b)(1) 1 of the Filter (the ‘‘Filter’’) applicable to each (ii) the contra-side Complex NBBO for
Securities Exchange Act of 1934 (the incoming ‘‘Electronic Complex Order’’ that same Complex Order, and
‘‘Act’’) 2 and Rule 19b–4 thereunder,3 (iii) the Specified Amount.9
(or ‘‘ECO’’).5 The Filter automatically
notice is hereby given that on October The proposed modification does not
rejects incoming ECOs with a price that alter how the Filter is applied. The
25, 2016, NYSE MKT LLC (the deviates from the current market by the
‘‘Exchange’’ or ‘‘NYSE MKT’’) filed with Filter would continue to help prevent
Specified Amount,6 which varies the execution of aggressively-priced
the Securities and Exchange depending on the smallest MPV of any
Commission (the ‘‘Commission’’) the ECOs (i.e., priced so far away from the
leg in the ECO.7 prevailing contra-side NBBO market for
proposed rule change as described in First, the Exchange proposes to
Items I and II below, which Items have the same strategy) that could cause
modify its description of how the Filter
been prepared by the Exchange. The significant price dislocation in the
operates to make it easier for market
Commission is publishing this notice to market. The Exchange would continue
participants to understand. Commentary
solicit comments on the proposed rule to apply the Filter to help ensure that
.05 to Rule 980NY currently describes
change from interested persons. market participants do not receive an
the Filter as rejecting an ECO if ‘‘the net
execution at a price significantly
I. Self-Regulatory Organization’s debit/credit limit price of the order is
inferior to the contra-side NBBO.
Statement of the Terms of Substance of greater (less) than the derived net debit/
However, the proposed modification
the Proposed Rule Change credit NBBO for the contra-side of that
would add specificity and more clearly
The Exchange proposes to amend 4 Rule 900.3NY(e) defines a Complex Order as
convey the operation of the Filter. The
Commentary .05 to Rule any order involving the simultaneous purchase Exchange believes this proposed change
980NY(Electronic Complex Order and/or sale of two or more different option series would add clarity and transparency to
Trading) to enhance the price protection in the same underlying security, for the same the rule text and enable market
account, in a ratio that is equal to or greater than participants to better understand the
filters applicable to electronically one-to-three (.333) and less than or equal to three-
entered Complex Orders. The proposed to-one (3.00) and for the purpose of executing operation of the Filter, and the
rule change is available on the particular investment strategy. calculation that the Exchange applies to
Exchange’s Web site at www.nyse.com, 5 Per Rule 980NY, an ECO is a Complex Order incoming ECOs without altering the
that has been entered into the NYSE Amex Options operation of the Filter.
at the principal office of the Exchange, System (‘‘System’’) and routed to the Complex
and at the Commission’s Public Matching Engine (‘‘CME’’) for possible execution.
Second, the Exchange proposes to
Reference Room. The CME is the mechanism in which ECOs are modify its explanation of how the
executed against each other or against individual Specified Amount may be adjusted
II. Self-Regulatory Organization’s quotes and orders in the Consolidated Book. ECOs based on the characteristics of the ECO.
Statement of the Purpose of, and that are not immediately executed by the CME are
ranked in the Consolidated Book. See Rule
Currently, paragraphs (b)–(d) of
Statutory Basis for, the Proposed Rule 980NY(a). Commentary .05 describe how the Filter
Change 6 The Specified Amount is defined as: (i) .10 for ‘‘will be applied by’’ the Specified
In its filing with the Commission, the orders where the smallest Minimum Price Variation Amount, which Specified Amount is
(‘‘MPV’’) of any leg of the Electronic Complex Order multiplied by the component of the leg
self-regulatory organization included is .01; (ii) .15 for orders where the smallest MPV
statements concerning the purpose of, of any leg of the Electronic Complex Order is .05; ratio that the leg of the order
and basis for, the proposed rule change and.30 for orders where the smallest MPV of any
and discussed any comments it received leg of the Electronic Complex Order is .10. See 8 See Rule 900.2NY(41)(b) (defining Complex

Commentary .05 to Rule 980NY. NBBO as ‘‘the NBBO for a given complex order
on the proposed rule change. The text 7 See Commentary .05 to Rule 980NY(a). The strategy as derived from the national best bid and
sradovich on DSK3GMQ082PROD with NOTICES

of those statements may be examined at Exchange notes that each ECO is entered into the national best offer for each individual component
the places specified in Item IV below. System at a net debit (credit) price for the entire series of a Complex Order’’). See also Securities and
The Exchange has prepared summaries, strategy and does not include specified prices for Exchange Act Release No. 73284 (October 1, 2014),
any single series component (‘‘leg’’) of the ECO. See 79 FR 60560 (October 7, 2014) (SR–NYSEMKT–
also Securities and Exchange Act Release No. 70674 2014–84) (Notice of filing and immediate
13 17 CFR 200.30–3(a)(12). (October 11, 2013), 78 FR 62917 (October 22, 2013) effectiveness of proposed rule change to codify the
1 15 U.S.C. 78s(b)(1). (SR–NYSEMKT–2013–80) (Notice of filing, which term Complex NBBO).
2 15 U.S.C. 78a.
describes the operation of the Filter) (herein 9 See proposed Commentary .05(a) to Rule
3 17 CFR 240.19b–4. referred to as the ‘‘Original Release’’). 980NY.

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Document Created: 2018-02-14 08:21:25
Document Modified: 2018-02-14 08:21:25
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 78217