81_FR_95940 81 FR 95691 - Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and Immediate Effectiveness of Proposed Change Modifying the NYSE Amex Options Fee Schedule

81 FR 95691 - Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and Immediate Effectiveness of Proposed Change Modifying the NYSE Amex Options Fee Schedule

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 249 (December 28, 2016)

Page Range95691-95693
FR Document2016-31310

Federal Register, Volume 81 Issue 249 (Wednesday, December 28, 2016)
[Federal Register Volume 81, Number 249 (Wednesday, December 28, 2016)]
[Notices]
[Pages 95691-95693]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-31310]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-79651; File No. SR-NYSEMKT-2016-121]


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

December 21, 2016.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 
1934 (``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given 
that, on December 15, 2016, NYSE MKT LLC (``Exchange'') filed with the 
Securities and Exchange Commission (``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 December 15, 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 III.C. of the Fee 
Schedule to exempt Binary Return Derivatives contracts (``ByRDs'') from 
the monthly Rights Fees assessed on Specialists, e-Specialists, 
Directed Order Market Markers (each a ``DOMM''). The Exchange proposes 
to implement these changes effective December 15, 2016.
    The Exchange added rules related to ByRDs in 2007 and re-launched 
trading in ByRDs in March 2016.\4\ To encourage

[[Page 95692]]

trading in ByRDs, the Exchange currently exempts transactions in ByRDs 
from all transactions fees and credits.\5\ However, ByRDs are subject 
to monthly Rights Fees.\6\ The Exchange proposes to exempt ByRDs from 
all Rights Fees, which should encourage trading in ByRDs.\7\
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    \4\ The Exchange adopted ByRDs in 2007 and plans to re-launch 
trading in ByRDs in March. See Securities Exchange Act Release No. 
56251 (August 14, 2007), 72 FR 46523 (August 20, 2007) (SR-Amex-
2004-27) (Order approving listing of Fixed Return Options 
(``FROs'')); see also Securities Exchange Act Release Nos. 71957 
(April 16, 2014), 79 FR 22563 (April 22, 2014) (SR-NYSEMKT-2014-06) 
(Order approving name change from FROs to Binary Return Derivatives 
(ByRDs) and re-launch of these products, with certain modification, 
and amending Obvious Errors rules to include ByRDs); 77014 (February 
2, 2016), 81 FR 6566 (February 8, 2016) (SR-NYSEMKT-2016-16) 
(immediate effectiveness filing amending amend certain of rules 
related to ByRDs). ByRDs are European-style option contracts on 
individual stocks, exchange-traded funds (``ETFs'') and Section 107 
Securities that have a fixed return in cash based on a set strike 
price; satisfy specified listing criteria; and may only be exercised 
at expiration pursuant to the Rules of the Options Clearing 
Corporation (the ``OCC'').
    \5\ See Fee Schedule, Section I.A., n. 5 (exempting ByRDs from 
all fees and credits for standard options transactions), available 
here, https://www.nyse.com/publicdocs/nyse/markets/amex-options/NYSE_Amex_Options_Fee_Schedule.pdf.
    \6\ The Exchange charges a monthly Rights Fee on each issue in 
the allocation of an e-Specialist, DOMM, and Specialist, which 
ranges from $50 to $2,500 (absent any applicable discount) and is 
based on the Average National Daily Customer Contracts per issue. 
See id., Fee Schedule, Section III.C. (e-Specialist, DOMM and 
Specialist Monthly Rights Fees).
    \7\ See proposed Fee Schedule, Section III.C. at n. 1 (stating 
that ByRDs are exempt from the Rights Fees). The Exchange proposes 
to delete as obsolete language from current note 1 to Section 
III.C., which provides that options listed before June 1, 2012 would 
be ``grandfathered'' for purposes of certain Rights Fee. See id. The 
Exchange believes this proposed change adds clarity and transparency 
to the Fee Schedule, as any options series listed before 2012 would 
have expired by now.
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    The Exchange believes the proposed treatment of ByRDs for purposes 
of the Fee Schedule would further the Exchange's goal of introducing 
new products to the marketplace by encouraging trading in these 
products.
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 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 believes the proposed change is reasonable, equitable 
and not unfairly discriminatory because the Exchange's treatment of 
ByRDs would apply equally to all market participants that opted to 
trade ByRDs. Further, the proposed change is reasonable and does not 
unfairly discriminate because exempting ByRDs from monthly Rights Fees 
would further the Exchange's goal of introducing new products to the 
marketplace by encouraging trading in these products. To the extent 
that the proposed change incentivizes any market participants to direct 
their order flow to the Exchange, all market participants would benefit 
from increased liquidity and trading opportunities on the Exchange.
    The Exchange believes the proposed change to remove obsolete 
language from the Fee Schedule adds clarity and transparency to the Fee 
Schedule, which makes it easier for market participants to comprehend.
    For these reasons, the Exchange believes that the proposal is 
consistent with the Act.

B. Self-Regulatory Organization's Statement on Burden on Competition

    In accordance with Section 6(b)(8) of the Act,\10\ the Exchange 
does not believe that the proposed rule change would impose any burden 
on competition that is not necessary or appropriate in furtherance of 
the purposes of the Act. The Exchange believes that the proposed change 
is pro-competitive as it would further the Exchange's goal of 
introducing new products to the marketplace and encouraging trading in 
these products, which would in turn, benefit market participants. To 
the extent that this purpose is achieved, all of the Exchange's market 
participants should benefit from the improved market liquidity. 
Enhanced market quality and increased transaction volume that results 
from the anticipated increase in order flow directed to the Exchange 
will benefit all market participants and improve competition on the 
Exchange.
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78f(b)(8).
---------------------------------------------------------------------------

    The Exchange notes that it operates in a highly competitive market 
in which market participants can readily favor competing venues. In 
such an environment, the Exchange must continually review, and consider 
adjusting, its fees and credits to remain competitive with other 
exchanges. For the reasons described above, the Exchange believes that 
the proposed rule change reflects this competitive environment.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    No written comments were solicited or received with respect to the 
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action
    The foregoing rule change is effective upon filing pursuant to 
Section 19(b)(3)(A) \11\ of the Act and subparagraph (f)(2) of Rule 
19b-4 \12\ thereunder, because it establishes a due, fee, or other 
charge imposed by the Exchange.
---------------------------------------------------------------------------

    \11\ 15 U.S.C. 78s(b)(3)(A).
    \12\ 17 CFR 240.19b-4(f)(2).
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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) \13\ of the Act to determine whether the proposed 
rule change should be approved or disapproved.
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    \13\ 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-2016-121 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-2016-121. 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

[[Page 95693]]

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-2016-121 and should 
be submitted on or before January 18, 2017.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\14\
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    \14\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2016-31310 Filed 12-27-16; 8:45 am]
 BILLING CODE 8011-01-P



                                                                         Federal Register / Vol. 81, No. 249 / Wednesday, December 28, 2016 / Notices                                                 95691

                                                subject to oversight and certain                        transactions from any provision of the                15, 2016, NYSE MKT LLC (‘‘Exchange’’)
                                                approvals by the Funds’ Board,                          Act if such exemption is necessary or                 filed with the Securities and Exchange
                                                including, among others, approval of the                appropriate in the public interest and                Commission (‘‘Commission’’) the
                                                interest rate formula and of the method                 consistent with the protection of                     proposed rule change as described in
                                                for allocating loans across Funds, as                   investors and the purposes fairly                     Items I, II, and III below, which Items
                                                well as review of the process in place to               intended by the policy and provisions of              have been prepared by the self-
                                                evaluate the liquidity implications for                 the Act. Section 12(d)(1)(J) of the Act               regulatory organization. The
                                                the Funds. A Fund’s aggregate                           provides that the Commission may                      Commission is publishing this notice to
                                                outstanding interfund loans will not                    exempt any person, security, or                       solicit comments on the proposed rule
                                                exceed 15% of its net assets, and the                   transaction, or any class or classes of               change from interested persons.
                                                Fund’s loans to any one Fund will not                   persons, securities, or transactions, from
                                                exceed 5% of the lending Fund’s net                     any provision of section 12(d)(1) if the              I. Self-Regulatory Organization’s
                                                assets.3                                                exemption is consistent with the public               Statement of the Terms of Substance of
                                                   4. Applicants assert that the facility               interest and the protection of investors.             the Proposed Rule Change
                                                does not raise the concerns underlying                  Section 17(b) of the Act authorizes the                  The Exchange proposes to modify the
                                                section 12(d)(1) of the Act given that the              Commission to grant an order                          NYSE Amex Options Fee Schedule
                                                Funds are part of the same group of                     permitting a transaction otherwise                    (‘‘Fee Schedule’’). The Exchange
                                                investment companies and there will be                  prohibited by section 17(a) if it finds               proposes to implement the fee change
                                                no duplicative costs or fees to the                     that (a) the terms of the proposed                    effective December 15, 2016. The
                                                Funds.4 Applicants also assert that the                 transaction are fair and reasonable and               proposed change is available on the
                                                proposed transactions do not raise the                  do not involve overreaching on the part               Exchange’s Web site at www.nyse.com,
                                                concerns underlying sections 17(a)(1),                  of any person concerned; (b) the                      at the principal office of the Exchange,
                                                17(a)(3), 17(d) and 21(b) of the Act as                 proposed transaction is consistent with               and at the Commission’s Public
                                                the Funds would not engage in lending                   the policies of each registered                       Reference Room.
                                                transactions that unfairly benefit                      investment company involved; and (c)
                                                insiders or are detrimental to the Funds.               the proposed transaction is consistent                II. Self-Regulatory Organization’s
                                                Applicants state that the facility will                 with the general purposes of the Act.                 Statement of the Purpose of, and
                                                offer both reduced borrowing costs and                  Rule 17d–1(b) under the Act provides                  Statutory Basis for, the Proposed Rule
                                                enhanced returns on loaned funds to all                 that in passing upon an application filed             Change
                                                participating Funds and each Fund                       under the rule, the Commission will                     In its filing with the Commission, the
                                                would have an equal opportunity to                      consider whether the participation of                 self-regulatory organization included
                                                borrow and lend on equal terms based                    the registered investment company in a                statements concerning the purpose of,
                                                on an interest rate formula that is                     joint enterprise, joint arrangement or                and basis for, the proposed rule change
                                                objective and verifiable. With respect to               profit sharing plan on the basis                      and discussed any comments it received
                                                the relief from section 17(a)(2) of the                 proposed is consistent with the                       on the proposed rule change. The text
                                                Act, applicants note that any collateral                provisions, policies and purposes of the              of those statements may be examined at
                                                pledged to secure an interfund loan                     Act and the extent to which such                      the places specified in Item IV below.
                                                would be subject to the same conditions                 participation is on a basis different from            The Exchange has prepared summaries,
                                                imposed by any other lender to a Fund                   or less advantageous than that of the                 set forth in sections A, B, and C below,
                                                that imposes conditions on the quality                  other participants.                                   of the most significant parts of such
                                                of or access to collateral for a borrowing                For the Commission, by the Division of              statements.
                                                (if the lender is another Fund) or the                  Investment Management, under delegated
                                                same or better conditions (in any other                 authority.
                                                                                                                                                              A. Self-Regulatory Organization’s
                                                circumstance).5                                                                                               Statement of the Purpose of, and the
                                                                                                        Robert W. Errett,
                                                   5. Applicants also believe that the                                                                        Statutory Basis for, the Proposed Rule
                                                                                                        Deputy Secretary.
                                                limited relief from section 18(f)(1) of the                                                                   Change
                                                                                                        [FR Doc. 2016–31288 Filed 12–27–16; 8:45 am]
                                                Act that is necessary to implement the                                                                        1. Purpose
                                                                                                        BILLING CODE 8011–01–P
                                                facility (because the lending Funds are
                                                not banks) is appropriate in light of the                                                                       The purpose of this filing is to amend
                                                conditions and safeguards described in                                                                        Section III.C. of the Fee Schedule to
                                                                                                        SECURITIES AND EXCHANGE                               exempt Binary Return Derivatives
                                                the application and because the Funds                   COMMISSION
                                                would remain subject to the                                                                                   contracts (‘‘ByRDs’’) from the monthly
                                                requirement of section 18(f)(1) that all                [Release No. 34–79651; File No. SR–                   Rights Fees assessed on Specialists, e-
                                                borrowings of a Fund, including                         NYSEMKT–2016–121]                                     Specialists, Directed Order Market
                                                combined interfund loans and bank                                                                             Markers (each a ‘‘DOMM’’). The
                                                borrowings, have at least 300% asset                    Self-Regulatory Organizations; NYSE                   Exchange proposes to implement these
                                                coverage.                                               MKT LLC; Notice of Filing and                         changes effective December 15, 2016.
                                                   6. Section 6(c) of the Act permits the               Immediate Effectiveness of Proposed                     The Exchange added rules related to
                                                Commission to exempt any persons or                     Change Modifying the NYSE Amex                        ByRDs in 2007 and re-launched trading
                                                                                                        Options Fee Schedule                                  in ByRDs in March 2016.4 To encourage
                                                  3 Under certain circumstances, a borrowing Fund
                                                                                                        December 21, 2016.
                                                will be required to pledge collateral to secure the                                                             4 The Exchange adopted ByRDs in 2007 and plans
sradovich on DSK3GMQ082PROD with NOTICES




                                                loan.                                                      Pursuant to Section 19(b)(1) 1 of the              to re-launch trading in ByRDs in March. See
                                                  4 Applicants state that the obligation to repay an    Securities Exchange Act of 1934                       Securities Exchange Act Release No. 56251 (August
                                                interfund loan could be deemed to constitute a          (‘‘Act’’) 2 and Rule 19b–4 thereunder,3               14, 2007), 72 FR 46523 (August 20, 2007) (SR–
                                                security for the purposes of sections 17(a)(1) and      notice is hereby given that, on December              Amex–2004–27) (Order approving listing of Fixed
                                                12(d)(1) of the Act.                                                                                          Return Options (‘‘FROs’’)); see also Securities
                                                  5 Applicants state that any pledge of securities to                                                         Exchange Act Release Nos. 71957 (April 16, 2014),
                                                                                                          1 15 U.S.C. 78s(b)(1).
                                                secure an interfund loan could constitute a                                                                   79 FR 22563 (April 22, 2014) (SR–NYSEMKT–
                                                                                                          2 15 U.S.C. 78a.
                                                purchase of securities for purposes of section                                                                2014–06) (Order approving name change from FROs
                                                17(a)(2) of the Act.                                      3 17 CFR 240.19b–4.                                                                         Continued




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                                                95692                    Federal Register / Vol. 81, No. 249 / Wednesday, December 28, 2016 / Notices

                                                trading in ByRDs, the Exchange                          Fees would further the Exchange’s goal                  III. Date of Effectiveness of the Proposed
                                                currently exempts transactions in                       of introducing new products to the                      Rule Change and Timing for
                                                ByRDs from all transactions fees and                    marketplace by encouraging trading in                   Commission Action
                                                credits.5 However, ByRDs are subject to                 these products. To the extent that the                     The foregoing rule change is effective
                                                monthly Rights Fees.6 The Exchange                      proposed change incentivizes any                        upon filing pursuant to Section
                                                proposes to exempt ByRDs from all                       market participants to direct their order               19(b)(3)(A) 11 of the Act and
                                                Rights Fees, which should encourage                     flow to the Exchange, all market                        subparagraph (f)(2) of Rule 19b–4 12
                                                trading in ByRDs.7                                      participants would benefit from                         thereunder, because it establishes a due,
                                                   The Exchange believes the proposed                   increased liquidity and trading                         fee, or other charge imposed by the
                                                treatment of ByRDs for purposes of the                  opportunities on the Exchange.                          Exchange.
                                                Fee Schedule would further the                             The Exchange believes the proposed                      At any time within 60 days of the
                                                Exchange’s goal of introducing new                      change to remove obsolete language                      filing of such proposed rule change, the
                                                products to the marketplace by                          from the Fee Schedule adds clarity and                  Commission summarily may
                                                encouraging trading in these products.                                                                          temporarily suspend such rule change if
                                                                                                        transparency to the Fee Schedule,
                                                2. Statutory Basis                                      which makes it easier for market                        it appears to the Commission that such
                                                                                                        participants to comprehend.                             action is necessary or appropriate in the
                                                   The Exchange believes that the
                                                                                                           For these reasons, the Exchange                      public interest, for the protection of
                                                proposed rule change is consistent with
                                                                                                        believes that the proposal is consistent                investors, or otherwise in furtherance of
                                                Section 6(b) of the Act,8 in general, and
                                                                                                        with the Act.                                           the purposes of the Act. If the
                                                furthers the objectives of Sections
                                                                                                                                                                Commission takes such action, the
                                                6(b)(4) and (5) of the Act,9 in particular,
                                                                                                        B. Self-Regulatory Organization’s                       Commission shall institute proceedings
                                                because it provides for the equitable
                                                                                                        Statement on Burden on Competition                      under Section 19(b)(2)(B) 13 of the Act to
                                                allocation of reasonable dues, fees, and
                                                                                                                                                                determine whether the proposed rule
                                                other charges among its members,                           In accordance with Section 6(b)(8) of                change should be approved or
                                                issuers and other persons using its                     the Act,10 the Exchange does not believe                disapproved.
                                                facilities and does not unfairly                        that the proposed rule change would
                                                discriminate between customers,                         impose any burden on competition that                   IV. Solicitation of Comments
                                                issuers, brokers or dealers.                            is not necessary or appropriate in                        Interested persons are invited to
                                                   The Exchange believes the proposed                   furtherance of the purposes of the Act.                 submit written data, views, and
                                                change is reasonable, equitable and not                 The Exchange believes that the                          arguments concerning the foregoing,
                                                unfairly discriminatory because the                     proposed change is pro-competitive as it                including whether the proposed rule
                                                Exchange’s treatment of ByRDs would                     would further the Exchange’s goal of                    change is consistent with the Act.
                                                apply equally to all market participants                introducing new products to the                         Comments may be submitted by any of
                                                that opted to trade ByRDs. Further, the                 marketplace and encouraging trading in                  the following methods:
                                                proposed change is reasonable and does                  these products, which would in turn,
                                                not unfairly discriminate because                       benefit market participants. To the                     Electronic Comments
                                                exempting ByRDs from monthly Rights                     extent that this purpose is achieved, all                  • Use the Commission’s Internet
                                                                                                        of the Exchange’s market participants                   comment form (http://www.sec.gov/
                                                to Binary Return Derivatives (ByRDs) and re-launch                                                              rules/sro.shtml); or
                                                of these products, with certain modification, and
                                                                                                        should benefit from the improved
                                                amending Obvious Errors rules to include ByRDs);        market liquidity. Enhanced market                          • Send an email to rule-comments@
                                                77014 (February 2, 2016), 81 FR 6566 (February 8,       quality and increased transaction                       sec.gov. Please include File Number SR–
                                                2016) (SR–NYSEMKT–2016–16) (immediate                   volume that results from the anticipated                NYSEMKT–2016–121 on the subject
                                                effectiveness filing amending amend certain of rules                                                            line.
                                                related to ByRDs). ByRDs are European-style option      increase in order flow directed to the
                                                contracts on individual stocks, exchange-traded         Exchange will benefit all market                        Paper Comments
                                                funds (‘‘ETFs’’) and Section 107 Securities that have   participants and improve competition
                                                a fixed return in cash based on a set strike price;     on the Exchange.                                           • Send paper comments in triplicate
                                                satisfy specified listing criteria; and may only be                                                             to Secretary, Securities and Exchange
                                                exercised at expiration pursuant to the Rules of the       The Exchange notes that it operates in               Commission, 100 F Street NE.,
                                                Options Clearing Corporation (the ‘‘OCC’’).             a highly competitive market in which
                                                   5 See Fee Schedule, Section I.A., n. 5 (exempting                                                            Washington, DC 20549–1090.
                                                                                                        market participants can readily favor
                                                ByRDs from all fees and credits for standard options                                                            All submissions should refer to File
                                                transactions), available here, https://                 competing venues. In such an
                                                                                                                                                                Number SR–NYSEMKT–2016–121. This
                                                www.nyse.com/publicdocs/nyse/markets/amex-              environment, the Exchange must
                                                                                                                                                                file number should be included on the
                                                options/NYSE_Amex_Options_Fee_Schedule.pdf.             continually review, and consider
                                                   6 The Exchange charges a monthly Rights Fee on                                                               subject line if email is used. To help the
                                                                                                        adjusting, its fees and credits to remain
                                                each issue in the allocation of an e-Specialist,                                                                Commission process and review your
                                                DOMM, and Specialist, which ranges from $50 to
                                                                                                        competitive with other exchanges. For
                                                                                                                                                                comments more efficiently, please use
                                                $2,500 (absent any applicable discount) and is          the reasons described above, the
                                                                                                                                                                only one method. The Commission will
                                                based on the Average National Daily Customer            Exchange believes that the proposed
                                                Contracts per issue. See id., Fee Schedule, Section                                                             post all comments on the Commission’s
                                                                                                        rule change reflects this competitive
                                                III.C. (e-Specialist, DOMM and Specialist Monthly                                                               Internet Web site (http://www.sec.gov/
                                                Rights Fees).
                                                                                                        environment.
                                                                                                                                                                rules/sro.shtml). Copies of the
                                                   7 See proposed Fee Schedule, Section III.C. at n.
                                                                                                        C. Self-Regulatory Organization’s                       submission, all subsequent
                                                1 (stating that ByRDs are exempt from the Rights
                                                Fees). The Exchange proposes to delete as obsolete
                                                                                                        Statement on Comments on the                            amendments, all written statements
sradovich on DSK3GMQ082PROD with NOTICES




                                                language from current note 1 to Section III.C.,         Proposed Rule Change Received From                      with respect to the proposed rule
                                                which provides that options listed before June 1,       Members, Participants, or Others                        change that are filed with the
                                                2012 would be ‘‘grandfathered’’ for purposes of                                                                 Commission, and all written
                                                certain Rights Fee. See id. The Exchange believes         No written comments were solicited                    communications relating to the
                                                this proposed change adds clarity and transparency      or received with respect to the proposed
                                                to the Fee Schedule, as any options series listed
                                                before 2012 would have expired by now.                  rule change.                                              11 15 U.S.C. 78s(b)(3)(A).
                                                   8 15 U.S.C. 78f(b).                                                                                            12 17 CFR 240.19b–4(f)(2).
                                                   9 15 U.S.C. 78f(b)(4) and (5).                         10 15   U.S.C. 78f(b)(8).                               13 15 U.S.C. 78s(b)(2)(B).




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                                                                          Federal Register / Vol. 81, No. 249 / Wednesday, December 28, 2016 / Notices                                                      95693

                                                proposed rule change between the                         thereunder,4 which renders the                        Summary Depth will also contain the
                                                Commission and any person, other than                    proposed rule change effective upon                   individual last sale information, Market
                                                those that may be withheld from the                      filing with the Commission. The                       Status, Trading Status, and Trade Break
                                                public in accordance with the                            Commission is publishing this notice to               messages. The individual last sale
                                                provisions of 5 U.S.C. 552, will be                      solicit comments on the proposed rule                 information will include the price, size,
                                                available for Web site viewing and                       change from interested persons.                       and time of execution. The last sale
                                                printing in the Commission’s Public                                                                            message will also include the
                                                                                                         I. Self-Regulatory Organization’s
                                                Reference Room, 100 F Street NE.,                                                                              cumulative number of shares executed
                                                                                                         Statement of the Terms of Substance of
                                                Washington, DC 20549 on official                                                                               on the Exchange for that trading day.
                                                                                                         the Proposed Rule Change
                                                business days between the hours of                                                                             The Exchange intends to begin to offer
                                                10:00 a.m. and 3:00 p.m. Copies of the                      The Exchange filed a proposal to                   BZX Summary Depth on January 3,
                                                filing also will be available for                        amend the Market Data section of its fee              2017.7
                                                inspection and copying at the principal                  schedule to: (i) Adopt fees for a new                    The Exchange now proposes to amend
                                                office of the Exchange. All comments                     market data product called BZX                        its fee schedule to incorporate fees for
                                                received will be posted without change;                  Summary Depth; and (ii) amend the fees                distribution of BZX Summary Depth to
                                                the Commission does not edit personal                    for BZX Depth.                                        subscribers.8 The proposed fees include
                                                identifying information from                                The text of the proposed rule change               the following, each of which are
                                                submissions. You should submit only                      is available at the Exchange’s Web site               described in detail below: (i)
                                                information that you wish to make                        at www.batstrading.com, at the                        Distribution Fees for both Internal and
                                                available publicly. All submissions                      principal office of the Exchange, and at              External Distributors; 9 (ii) Usage Fees
                                                should refer to File Number SR–                          the Commission’s Public Reference                     for both Professional 10 and Non-
                                                NYSEMKT–2016–121 and should be                           Room.                                                 Professional 11 Users; (iii) an Enterprise
                                                submitted on or before January 18, 2017.                 II. Self-Regulatory Organization’s                    Fee; and (iv) a Digital Media Enterprise
                                                  For the Commission, by the Division of                 Statement of the Purpose of, and                      Fee.
                                                Trading and Markets, pursuant to delegated               Statutory Basis for, the Proposed Rule                   Distribution Fees. As proposed, each
                                                authority.14                                             Change                                                Internal Distributor that receives BZX
                                                Eduardo A. Aleman,
                                                                                                            In its filing with the Commission, the                7 See Reminder: Bats Global Markets to Introduce
                                                Assistant Secretary.                                     Exchange included statements                          Bats Summary Depth Feeds on January 3, 2017,
                                                [FR Doc. 2016–31310 Filed 12–27–16; 8:45 am]             concerning the purpose of and basis for               http://cdn.batstrading.com/resources/release_
                                                BILLING CODE 8011–01–P                                   the proposed rule change and discussed                notes/2017/Reminder-Bats-Global-Markets-to-
                                                                                                                                                               Introduce-Bats-Summary-Depth-Feeds-on-Jan-3-
                                                                                                         any comments it received on the                       2017.pdf.
                                                                                                         proposed rule change. The text of these                  8 The Exchange notes that its affiliated exchanges,
                                                SECURITIES AND EXCHANGE                                  statements may be examined at the                     Bats EDGX Exchange, Inc. (‘‘EDGX’’), Bats EDGA
                                                COMMISSION                                               places specified in Item IV below. The                Exchange, Inc. (‘‘EDGA’’) and Bats BYX Exchange,
                                                [Release No. 34–79636; File No. SR-                      Exchange has prepared summaries, set                  Inc. (‘‘BYX’’, together with the Exchange, EDGX and
                                                                                                                                                               EDGA, the ‘‘Bats Exchanges’’), also intent to file
                                                BatsBZX–2016–87]                                         forth in Sections A, B, and C below, of               proposed rule changes with Commission to adopt
                                                                                                         the most significant parts of such                    similar fees for their respective Summary Depth
                                                Self-Regulatory Organizations; Bats                      statements.                                           market data product.
                                                BZX Exchange, Inc.; Notice of Filing                                                                              9 A ‘‘Distributor’’ is defined as ‘‘any entity that

                                                and Immediate Effectiveness of a                         A. Self-Regulatory Organization’s                     receives the Exchange Market Data product directly
                                                Proposed Rule Change To Amend the                        Statement of the Purpose of, and                      from the Exchange or indirectly through another
                                                                                                         Statutory Basis for, the Proposed Rule                entity and then distributes it internally or externally
                                                Market Data Section of Its Fee                                                                                 to a third party.’’ See the Exchange’s fee schedule
                                                Schedule To Adopt Fees for BZX                           Change                                                available at http://www.bats.com/us/equities/
                                                Summary Depth and Amend Fees for                         1. Purpose                                            membership/fee_schedule/bzx/. An ‘‘Internal
                                                BZX Depth                                                                                                      Distributor’’ is defined as ‘‘a Distributor that
                                                                                                            The Exchange proposes to amend the                 receives the Exchange Market Data product and
                                                December 21, 2016.                                       Market Data section of its fee schedule               then distributes that data to one or more Users
                                                                                                                                                               within the Distributor’s own entity.’’ Id. An
                                                   Pursuant to Section 19(b)(1) of the                   to: (i) Adopt fees for a new market data              ‘‘External Distributor’’ is defined as ‘‘a Distributor
                                                Securities Exchange Act of 1934 (the                     product called BZX Summary Depth;                     that receives the Exchange Market Data product and
                                                ‘‘Act’’),1 and Rule 19b–4 thereunder,2                   and (ii) amend the fees for BZX Depth.                then distributes that data to a third party or one or
                                                notice is hereby given that on December                                                                        more Users outside the Distributor’s own entity.’’
                                                14, 2016, Bats BZX Exchange, Inc.                        BZX Summary Depth                                     Id.’’
                                                                                                                                                                  10 A ‘‘Professional User’’ is defined as ‘‘any User
                                                (‘‘BZX’’ or the ‘‘Exchange’’) filed with                   BZX Summary Depth is a data feed                    other than a Non-Professional User.’’ See the
                                                the Securities and Exchange                              that will provide aggregated two-sided                Exchange’s fee schedule available at http://
                                                Commission (‘‘SEC’’ or ‘‘Commission’’)                   quotations for all displayed orders                   www.bats.com/us/equities/membership/fee_
                                                the proposed rule change as described                    entered into the System 5 for up to five              schedule/bzx/.
                                                                                                                                                                  11 A ‘‘Non-Professional User’’ is defined as ‘‘a
                                                in Items I, II, and III below, which Items               (5) price levels for securities traded on
                                                                                                                                                               natural person who is not: (i) Registered or qualified
                                                have been prepared by the Exchange.                      the Exchange and for which the                        in any capacity with the Commission, the
                                                The Exchange has designated the                          Exchange reports quotes under the                     Commodity Futures Trading Commission, any state
                                                proposed rule change as one                              Consolidated Tape Association (‘‘CTA’’)               securities agency, any securities exchange or
                                                                                                         Plan or the Nasdaq/UTP Plan.6 BZX                     association, or any commodities or futures contract
                                                establishing or changing a member due,                                                                         market or association; (ii) engaged as an
sradovich on DSK3GMQ082PROD with NOTICES




                                                fee, or other charge imposed by the                                                                            ‘‘investment adviser’’ as that term is defined in
                                                                                                           4 17 CFR 240.19b–4(f)(2).
                                                Exchange under Section 19(b)(3)(A)(ii)                                                                         Section 202(a)(11) of the Investment Advisers Act
                                                                                                           5 ‘‘System’’is defined as the ‘‘the electronic
                                                of the Act 3 and Rule 19b–4(f)(2)                                                                              of 1940 (whether or not registered or qualified
                                                                                                         communications and trading facility designated by     under that Act); or (iii) employed by a bank or other
                                                                                                         the Board through which securities orders of Users    organization exempt from registration under federal
                                                  14 17 CFR 200.30–3(a)(12).                             Are consolidated for ranking, execution and, when     or state securities laws to perform functions that
                                                  1 15 U.S.C. 78s(b)(1).                                 applicable, routing away.’’ See Exchange Rule         would require registration or qualification if such
                                                  2 17 CFR 240.19b–4.                                    1.5(aa).                                              functions were performed for an organization not so
                                                  3 15 U.S.C. 78s(b)(3)(A)(ii).                            6 See Exchange Rule 11.22(m).                       exempt.’’ Id.



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Document Created: 2016-12-28 02:16:45
Document Modified: 2016-12-28 02:16:45
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
FR Citation81 FR 95691 

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