82 FR 11085 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending the NYSE Arca Options Fee Schedule
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 32 (February 17, 2017)
Federal Register Volume 82, Issue 32 (February 17, 2017)
| Page Range | 11085-11087 | |
| FR Document | 2017-03180 |
[Federal Register Volume 82, Number 32 (Friday, February 17, 2017)] [Notices] [Pages 11085-11087] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-03180] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-80029; File No. SR-NYSEArca-2017-12] Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending the NYSE Arca Options Fee Schedule February 13, 2017. Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given that, on February 7, 2017, NYSE Arca, Inc. (the ``Exchange'' or ``NYSE Arca'') filed with the Securities and Exchange Commission (the ``Commission'') the proposed rule change as described in Items I, II, and III below, which Items have been prepared by the self-regulatory organization. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 15 U.S.C. 78a. \3\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of the Substance of the Proposed Rule Change The Exchange proposes to amend the NYSE Arca Options Fee Schedule (``Fee Schedule''). The Exchange proposes to implement the fee change effective February 7, 2017. 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. [[Page 11086]] 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 amend the Fee Schedule effective February 7, 2017. Specifically, the Exchange proposes to introduce a Market Maker posting incentive that applies to transactions in non- Penny Pilot Issues. Currently, the Exchange offers various incentives that apply to Market Maker posted orders in Penny Pilot issues. Among these are the Market Maker Incentive (``Penny Incentive''),\4\ and the Market Maker Monthly Posting Credit Tiers for executions in Penny Pilot Issues and SPY (the ``Credit Tiers''). The Credit Tiers offer increasing incentives applied to posted orders in Penny Pilot issues, qualified by increased levels of market share. One of the Credit Tiers, designated the Super Tier, applies a posting credit of $0.37 to posted order transactions in Penny Pilot issues, and a $0.39 credit to posted order transactions in SPY. Market Makers qualify for the Super Tier in one of two ways: (1) By achieving at least 0.55% of Total Industry Customer equity and ETF option ADV (``TCADV'') from Market Maker Posted Orders in All Issues, or (2) by achieving at least 1.60% of TCADV from all orders in Penny Pilot Issues, all account types, with at least 0.80% of TCADV from Posted Orders in Penny Pilot Issues (the ``Super Tier qualification levels''). --------------------------------------------------------------------------- \4\ The Penny Incentive offers a $0.41 credit applied to posted electronic Market Maker executions in Penny Pilot Issues to any Market Maker that, together with its affiliates or Appointed OFPs, achieve at least 0.75% of TCADV from Customer Posted Orders in both Penny Pilot and non-Penny Pilot Issues and an ADV from Market Maker Posted Orders equal to 0.70% of TCADV. --------------------------------------------------------------------------- The Exchange proposes to adopt an additional incentive program based on the Super Tier qualification levels that would apply to posted volume in non-Penny Pilot issues (the ``Non-Penny Incentive''). As proposed, a Market Maker would be eligible for a $0.55 credit for Posted Electronic Market Maker Executions in Non-Penny Pilot Issues provided the Market Maker achieved (1) at least 0.55% of TCADV from Market Maker Posted Orders in All Issues, or (2) at least 1.60% of TCADV from all orders in Penny Pilot Issues, all account types, with at least 0.80% of TCADV from Posted Orders in Penny Pilot Issues. The Exchange believes that adopting this additional incentive would encourage Market Makers to achieve a higher level of posted orders in all issues, which in turn encourages tighter market spreads and increased liquidity to the benefit of all market participants. The proposed incentive would be referred to as the ``Market Maker Incentive For Non-Penny Pilot Issues.'' The Exchange notes that, like the existing Penny Incentive, the calculations for the qualification thresholds for the proposed Non- Penny Incentive would apply solely to electronic executions and would include transaction volume from the Market Maker's affiliates or its Appointed OFP. Further, Qualified Contingent Cross (``QCC'') orders are neither posted nor taken; thus, QCC transactions would not be included in the calculation of posted or taken execution volumes. The calculations would not include volume from mini-option transactions, nor would they include volume from Complex Order transactions. Orders routed to another market for execution would not be included in the calculation of taking volume. To avoid potential confusion and to distinguish the proposed program from the existing Penny Incentive, the Exchange proposes to re- name the Market Maker Incentive to the ``Market Maker Incentive in Penny Pilot Issues.'' The Exchange believes this proposed change would add clarity and consistency to the Fee Schedule. 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. --------------------------------------------------------------------------- \5\ 15 U.S.C. 78f(b). \6\ 15 U.S.C. 78f(b)(4) and (5). --------------------------------------------------------------------------- The Exchange believes that the proposed Non-Penny Incentive is reasonable, equitable, and not unfairly discriminatory because it would be available to all Market Makers on an equal and non-discriminatory basis, in particular because it offers alternative means to achieve the same credit. The Exchange believes that adopting the proposed Incentive is equitable and not unfairly discriminatory because it would encourage more Market Makers to qualify for the credit, including encouraging Market Makers to have affiliated or appointed order flow directed to the Exchange. The Exchange believes that attracting additional order flow to the Exchange would enhance market quality and would benefit all market participants by offering greater price discovery, increased transparency, and an increased opportunity to trade on the Exchange. Further, encouraging Market Makers to send higher volumes of orders to the Exchange would also contribute to the Exchange's depth of book as well as to the top of book liquidity. 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,\7\ the Exchange does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. Instead, the Exchange believes that the proposed change would continue to encourage competition, including by attracting additional liquidity to the Exchange, which would continue to make the Exchange a more competitive venue for, among other things, order execution and price discovery. The Exchange does not believe that the proposed change would impair the ability of any market participants or competing order execution venues to maintain their competitive standing in the financial markets. Further, the incentive would be available to all similarly situated Market Makers, and, as such, the proposed change would not impose a disparate burden on competition either among or between classes of market participants and should encourage competition. --------------------------------------------------------------------------- \7\ 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. Because competitors are free to modify their own fees and credits in response, and because market participants may readily adjust their order routing practices, the 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. [[Page 11087]] 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) \8\ of the Act and subparagraph (f)(2) of Rule 19b- 4 \9\ thereunder, because it establishes a due, fee, or other charge imposed by the Exchange. --------------------------------------------------------------------------- \8\ 15 U.S.C. 78s(b)(3)(A). \9\ 17 CFR 240.19b-4(f)(2). --------------------------------------------------------------------------- At any time within 60 days of the filing of such proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings under Section 19(b)(2)(B) \10\ of the Act to determine whether the proposed rule change should be approved or disapproved. --------------------------------------------------------------------------- \10\ 15 U.S.C. 78s(b)(2)(B). --------------------------------------------------------------------------- IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic CommentsUse the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to [email protected]. Please include File Number SR-NYSEArca-2017-12 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-2017-12. 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-2017-12, and should be submitted on or before March 10, 2017. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\11\ --------------------------------------------------------------------------- \11\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017-03180 Filed 2-16-17; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 82, No. 32 / Friday, February 17, 2017 / Notices 11085
to benefit from the same waiver with Electronic Comments SECURITIES AND EXCHANGE
respect to annual fees for their first COMMISSION
partial year of listing and not just those • Use the Commission’s Internet
transferring from NYSE Arca and NYSE comment form (http://www.sec.gov/
[Release No. 34–80029; File No. SR–
MKT, as is currently the case. The rules/sro.shtml); or
NYSEArca–2017–12]
market for listings is extremely • Send an email to rule-comments@
competitive. Each listing exchange has a sec.gov. Please include File Number SR– Self-Regulatory Organizations; NYSE
different fee schedule that applies to NYSE–2017–02 on the subject line. Arca, Inc.; Notice of Filing and
issuers seeking to list securities on its Immediate Effectiveness of Proposed
Paper Comments
exchange. Issuers have the option to list Rule Change Amending the NYSE Arca
their securities on these alternative • Send paper comments in triplicate Options Fee Schedule
venues based on the fees charged and to Brent J. Fields, Secretary, Securities
February 13, 2017.
the value provided by each listing. and Exchange Commission, 100 F Street
Because issuers have a choice to list NE., Washington, DC 20549–1090. Pursuant to Section 19(b)(1) 1 of the
their securities on a different national Securities Exchange Act of 1934 (the
All submissions should refer to File ‘‘Act’’) 2 and Rule 19b–4 thereunder,3
securities exchange, the Exchange does
Number SR–NYSE–2017–02. This file notice is hereby given that, on February
not believe that the proposed fee change
number should be included on the 7, 2017, NYSE Arca, Inc. (the
imposes a burden on competition.
subject line if email is used. To help the ‘‘Exchange’’ or ‘‘NYSE Arca’’) filed with
C. Self-Regulatory Organization’s Commission process and review your the Securities and Exchange
Statement on Comments on the comments more efficiently, please use Commission (the ‘‘Commission’’) the
Proposed Rule Change Received From only one method. The Commission will proposed rule change as described in
Members, Participants, or Others post all comments on the Commission’s Items I, II, and III below, which Items
Internet Web site (http://www.sec.gov/ have been prepared by the self-
No written comments were solicited rules/sro.shtml). Copies of the
or received with respect to the proposed regulatory organization. The
submission, all subsequent Commission is publishing this notice to
rule change. amendments, all written statements solicit comments on the proposed rule
III. Date of Effectiveness of the with respect to the proposed rule change from interested persons.
Proposed Rule Change and Timing for change that are filed with the
Commission Action Commission, and all written I. Self-Regulatory Organization’s
communications relating to the Statement of the Terms of the Substance
The foregoing rule change is effective proposed rule change between the of the Proposed Rule Change
upon filing pursuant to Section Commission and any person, other than
19(b)(3)(A) 6 of the Act and those that may be withheld from the The Exchange proposes to amend the
subparagraph (f)(2) of Rule 19b–4 7 public in accordance with the NYSE Arca Options Fee Schedule (‘‘Fee
thereunder, because it establishes a due, provisions of 5 U.S.C. 552, will be Schedule’’). The Exchange proposes to
fee, or other charge imposed by the available for Web site viewing and implement the fee change effective
Exchange. printing in the Commission’s Public February 7, 2017. The proposed rule
Reference Room, 100 F Street NE., change is available on the Exchange’s
At any time within 60 days of the
Washington, DC 20549 on official Web site at www.nyse.com, at the
filing of such proposed rule change, the
business days between the hours of principal office of the Exchange, and at
Commission summarily may
10:00 a.m. and 3:00 p.m. Copies of such the Commission’s Public Reference
temporarily suspend such rule change if
filing also will be available for Room.
it appears to the Commission that such
action is necessary or appropriate in the inspection and copying at the principal II. Self-Regulatory Organization’s
public interest, for the protection of office of the Exchange. All comments Statement of the Purpose of, and
investors, or otherwise in furtherance of received will be posted without change; Statutory Basis for, the Proposed Rule
the purposes of the Act. If the the Commission does not edit personal Change
Commission takes such action, the identifying information from
Commission shall institute proceedings submissions. You should submit only In its filing with the Commission, the
under Section 19(b)(2)(B) 8 of the Act to information that you wish to make self-regulatory organization included
determine whether the proposed rule available publicly. All submissions statements concerning the purpose of,
change should be approved or should refer to File Number SR–NYSE– and basis for, the proposed rule change
disapproved. 2017–02, and should be submitted on or and discussed any comments it received
before March 10, 2017. on the proposed rule change. The text
IV. Solicitation of Comments of those statements may be examined at
For the Commission, by the Division of
the places specified in Item IV below.
Interested persons are invited to Trading and Markets, pursuant to delegated
The Exchange has prepared summaries,
submit written data, views, and authority.9
set forth in sections A, B, and C below,
arguments concerning the foregoing, Eduardo A. Aleman,
of the most significant parts of such
including whether the proposed rule
mstockstill on DSK3G9T082PROD with NOTICES
Assistant Secretary. statements.
change is consistent with the Act. [FR Doc. 2017–03181 Filed 2–16–17; 8:45 am]
Comments may be submitted by any of
BILLING CODE 8011–01–P
the following methods:
6 15 1 15 U.S.C. 78s(b)(1).
U.S.C. 78s(b)(3)(A).
7 17 CFR 240.19b–4(f)(2). 2 15 U.S.C. 78a.
8 15 U.S.C. 78s(b)(2)(B). 9 17 CFR 200.30–3(a)(12). 3 17 CFR 240.19b–4.
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![Federal Register / Vol. 82, No. 32 / Friday, February 17, 2017 / Notices 11087
C. Self-Regulatory Organization’s rules/sro.shtml). Copies of the proposed rule change from interested
Statement on Comments on the submission, all subsequent persons.
Proposed Rule Change Received From amendments, all written statements
I. Self-Regulatory Organization’s
Members, Participants, or Others with respect to the proposed rule
Statement of the Terms of Substance of
No written comments were solicited change that are filed with the
the Proposed Rule Change
or received with respect to the proposed Commission, and all written
communications relating to the The Exchange proposes to amend its
rule change.
proposed rule change between the Fees Schedule. The text of the proposed
III. Date of Effectiveness of the Commission and any person, other than rule change is available on the
Proposed Rule Change and Timing for those that may be withheld from the Exchange’s Web site (http://
Commission Action public in accordance with the www.c2exchange.com/Legal/), at the
The foregoing rule change is effective provisions of 5 U.S.C. 552, will be Exchange’s Office of the Secretary, and
upon filing pursuant to Section available for Web site viewing and at the Commission’s Public Reference
19(b)(3)(A) 8 of the Act and printing in the Commission’s Public Room.
subparagraph (f)(2) of Rule 19b–4 9 Reference Room, 100 F Street NE., II. Self-Regulatory Organization’s
thereunder, because it establishes a due, Washington, DC 20549 on official Statement of the Purpose of, and
fee, or other charge imposed by the business days between the hours of Statutory Basis for, the Proposed Rule
Exchange. 10:00 a.m. and 3:00 p.m. Copies of such Change
At any time within 60 days of the filing also will be available for
In its filing with the Commission, the
filing of such proposed rule change, the inspection and copying at the principal
Exchange included statements
Commission summarily may office of the Exchange. All comments
concerning the purpose of and basis for
temporarily suspend such rule change if received will be posted without change; the proposed rule change and discussed
it appears to the Commission that such the Commission does not edit personal any comments it received on the
action is necessary or appropriate in the identifying information from proposed rule change. The text of these
public interest, for the protection of submissions. You should submit only statements may be examined at the
investors, or otherwise in furtherance of information that you wish to make places specified in Item IV below. The
the purposes of the Act. If the available publicly. All submissions Exchange has prepared summaries, set
Commission takes such action, the should refer to File Number SR– forth in sections A, B, and C below, of
Commission shall institute proceedings NYSEArca–2017–12, and should be the most significant aspects of such
under Section 19(b)(2)(B) 10 of the Act to submitted on or before March 10, 2017. statements.
determine whether the proposed rule For the Commission, by the Division of
change should be approved or Trading and Markets, pursuant to delegated A. Self-Regulatory Organization’s
disapproved. authority.11 Statement of the Purpose of, and
Eduardo A. Aleman, Statutory Basis for, the Proposed Rule
IV. Solicitation of Comments Change
Assistant Secretary.
Interested persons are invited to
[FR Doc. 2017–03180 Filed 2–16–17; 8:45 am] 1. Purpose
submit written data, views, and
arguments concerning the foregoing, BILLING CODE 8011–01–P The Exchange proposes to amend its
including whether the proposed rule Fees Schedule. The Exchange is
change is consistent with the Act. changing fees for functionality related to
SECURITIES AND EXCHANGE its PULSe workstation. The fees herein
Comments may be submitted by any of
COMMISSION will be effective on February 1, 2017.
the following methods:
[Release No. 34–80031; File No. SR–C2–
By way of background, the PULSe
Electronic Comments workstation is a front-end order entry
2017–008]
• Use the Commission’s Internet system designed for use with respect to
comment form (http://www.sec.gov/ Self-Regulatory Organizations; C2 orders that may be sent to the trading
rules/sro.shtml); or Options Exchange, Incorporated; systems of the Exchange. Exchange
• Send an email to rule-comments@ Notice of Filing and Immediate Trading Permit Holders (‘‘TPHs’’) may
sec.gov. Please include File Number SR– Effectiveness of a Proposed Rule To also make workstations available to
NYSEArca–2017–12 on the subject line. Amend the Fees Schedule their customers, which may include
TPHs, non-broker dealer public
Paper Comments February 13, 2017. customers and non-TPH broker dealers.
• Send paper comments in triplicate Pursuant to Section 19(b)(1) of the
to Brent J. Fields, Secretary, Securities Securities Exchange Act of 1934 (the Drop Copies
and Exchange Commission, 100 F Street ‘‘Act’’),1 and Rule 19b–4 thereunder,2 Financial Information eXchange
NE., Washington, DC 20549–1090. notice is hereby given that on February (‘‘FIX’’) language-based connectivity,
All submissions should refer to File 1, 2017, C2 Options Exchange, upon request, provides customers (both
Number SR–NYSEArca–2017–12. This Incorporated (the ‘‘Exchange’’ or ‘‘C2’’) TPH and non-TPH) of TPHs that are
file number should be included on the filed with the Securities and Exchange brokers and PULSe users (‘‘PULSe
subject line if email is used. To help the Commission (the ‘‘Commission’’) the brokers’’) with the ability to receive
Commission process and review your proposed rule change as described in ‘‘drop-copy’’ order fill messages from
their PULSe brokers. These fill messages
mstockstill on DSK3G9T082PROD with NOTICES
comments more efficiently, please use Items I, II, and III below, which Items
only one method. The Commission will have been prepared by the Exchange. allow customers to update positions,
post all comments on the Commission’s The Commission is publishing this risk calculations and streamline back-
Internet Web site (http://www.sec.gov/ notice to solicit comments on the office functions.
The Exchange is proposing reducing
8 15 U.S.C. 78s(b)(3)(A). 11 17 CFR 200.30–3(a)(12). the monthly fee to be assessed on TPHs
9 17 CFR 240.19b–4(f)(2). 1 15 U.S.C. 78s(b)(1). who are either receiving or sending drop
10 15 U.S.C. 78s(b)(2)(B). 2 17 CFR 240.19b–4. copies via a PULSe workstation.
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Document Created: 2017-02-17 00:28:33
Document Modified: 2017-02-17 00:28:33
| 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 | 82 FR 11085 |
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