82 FR 22360 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending the NYSE Arca Equities Schedule of Fees and Charges for Exchange Services
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 92 (May 15, 2017)
Federal Register Volume 82, Issue 92 (May 15, 2017)
| Page Range | 22360-22362 | |
| FR Document | 2017-09715 |
[Federal Register Volume 82, Number 92 (Monday, May 15, 2017)] [Notices] [Pages 22360-22362] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-09715] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-80632; File No. SR-NYSEArca-2017-50] Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending the NYSE Arca Equities Schedule of Fees and Charges for Exchange Services May 9, 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 April 28, 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 and II 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 Substance of the Proposed Rule Change The Exchange proposes to amend the NYSE Arca Equities Schedule of Fees and Charges for Exchange Services (``Fee Schedule''). 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. [[Page 22361]] 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 the Quoting and Depth Standard under the recently adopted Exchange Traded Fund Liquidity Provider Program (``ELP Program'').\4\ The Exchange proposes to implement the proposed fee change effective May 1, 2017. --------------------------------------------------------------------------- \4\ See Securities Exchange Act Release No. 80258 (March 16, 2017), 82 FR 14775 (March 22, 2017) (SR-NYSEArca-2017-28) (``ELP Program Filing''). --------------------------------------------------------------------------- Pursuant to the ELP Program Filing, the Exchange currently provides an incremental credit of $0.0001 per share to ETP Holders and Market Makers (collectively, ``ELPs'') for providing displayed liquidity that result in an execution to ELPs that meet prescribed quoting standards in NYSE-Arca listed Tape B securities that have a consolidated average daily volume (``CADV'') in the previous month of less than 250,000 shares (``ELP Securities''). Pursuant to the ELP Program Filing, beginning March 2017 and through April 2017, an ELP that quotes at the National Best Bid or Offer (``NBBO'') for at least an average of 15% of the time for the billing month in at least 50 ELP Securities for each billing month (``Quoting Standard'') \5\ is paid the stated incremental credit in their Tape B executions that add liquidity. --------------------------------------------------------------------------- \5\ An ELP would meet the Quoting Standard if the average of the percentage of time during regular trading hours during which the ELP maintains a quote at each of the NBB and NBO equals at least 15%. As an example, where the ELP maintains a quote for any number of shares at the NBB for 20% of the time during regular trading hours in at least 50 ELP Securities and maintains a quote for any number of shares at the NBO for 10% of the time during regular trading hours in the same ELP Securities, the ELP would be deemed to be at the NBBO for the required time period of 15% ((20% + 10%)/2). --------------------------------------------------------------------------- In the ELP Program Filing, the Exchange proposed that beginning May 1, 2017, in order for an ELP to qualify for the incremental credit, the ELP must, in at least 50 ELP Securities:Quote at the NBBO for at least an average of 15% of the time for the billing month, and, Display at least 2,500 shares that are priced no more than 2% away from the NBBO at least 90% of the time for the billing month (``Quoting and Depth Standard''). The Exchange proposes to require the Quoting and Depth Standard to begin June 1, 2017 instead of on May 1, 2017. As a result, the Quoting Standard that was implemented for March 2017 and April 2017 will be extended through May 2017. Thus, until June 1, 2017, ELPs will continue to qualify for the incremental credit by meeting just the Quoting Standard. Beginning June 1, 2017, as noted above, ELPs will be required to meet the Quoting and Depth Standard to qualify for the incremental credit. The Exchange is not proposing any other change to the ELP Program. The ELP Program is intended to provide incentives for increased trading in ELP Securities for market participants. The Exchange believes the proposed rule change will strengthen market quality in ELP Securities. The ELP Program is also intended to reward liquidity providers who improve displayed liquidity and the size of such liquidity in the market. The Exchange believes that the ELP Program will encourage the additional utilization of, and interaction with, the Exchange and provide customers with the premier venue for price discovery, liquidity, competitive quotes and price improvement. The proposed changes are not otherwise intended to address any other issues, and the Exchange is not aware of any problems that ETP Holders would have in complying with the proposed changes. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with Section 6(b) of the Act,\6\ in general, and furthers the objectives of Sections 6(b)(4) and (5) of the Act,\7\ in particular, because it provides for the equitable allocation of reasonable dues, fees, and other charges among its members, issuers and other persons using its facilities and does not unfairly discriminate between customers, issuers, brokers or dealers. --------------------------------------------------------------------------- \6\ 15 U.S.C. 78f(b). \7\ 15 U.S.C. 78f(b)(4) and (5). --------------------------------------------------------------------------- The Exchange believes that the proposed rule change would continue to encourage increased participation by ELPs in the trading of ETP Securities. In particular, the Exchange believes that extending the implementation date for the Quoting and Depth Standard from May 1, 2017 to June 1, 2017 would provide ELPs with additional time to implement the requirements associated with the ELP credit while encouraging ELPs to participate in the ELP Program. The Exchange also believes that extending the Quoting Standard through May 2017 would continue to encourage the submission of additional liquidity by ETP Holders to a public exchange, thereby promoting price discovery and transparency and enhancing order execution opportunities for all market participants on the Exchange. The Exchange believes the ELP Program will continue to provide an incentive for ELPs to quote and trade a greater number of securities on the Exchange and will generally allow the Exchange and ELPs to better compete for order flow and thus enhance competition. Further, the ELP program is intended to provide ELPs with an incentive to increase displayed quoting on NYSE Arca and thereby provide liquidity and better quoting that supports the quality of price discovery and promotes market transparency. The Exchange also believes that the proposed incremental credit for ELPs that meet the requirements of the ELP Program is equitable and not unfairly discriminatory because it would apply uniformly to all ELPs. As proposed, the ELP Program is designed to enhance the Exchange's competitiveness as a listing venue and to strengthen its market quality for NYSE Arca-listed securities. The Exchange believes that adopting the Quoting and Depth Standard beginning June 2017 instead of May 2017 is reasonable because the additional requirement has not yet been implemented by the Exchange so no ETP Holder is or would be adversely impacted. The Quoting and Depth Standard would ensure that liquidity displayed on the Exchange by ELPs is available for a greater period of time during the trading day to provide market participants an adequate opportunity to transact against such liquidity. The Exchange also believes that extending the Quoting Standard through May 2017 is reasonable in order for the Exchange to continue providing ELPs with the incremental credit associated with the ELP Program. The Exchange believes that adopting the Quoting and Depth Standard beginning June 2017 and extending the Quoting Standard through May 2017 is equitable and not unfairly discriminatory because the proposed changes would apply uniformly to all ELPs. [[Page 22362]] B. Self-Regulatory Organization's Statement on Burden on Competition In accordance with Section 6(b)(8) of the Act,\8\ the Exchange believes that the proposed rule change would not impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. The proposed rule change is intended to adopt the Quoting and Depth Standard in June 2017 rather than in May 2017, as was originally proposed in the ELP Program Filing, while extending the current Quoting Standard through May 2017. --------------------------------------------------------------------------- \8\ 15 U.S.C. 78f(b)(8). --------------------------------------------------------------------------- C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others No written comments were solicited or received with respect to the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing rule change is effective upon filing pursuant to Section 19(b)(3)(A) \9\ of the Act and subparagraph (f)(2) of Rule 19b- 4 \10\ thereunder, because it establishes a due, fee, or other charge imposed by the Exchange. --------------------------------------------------------------------------- \9\ 15 U.S.C. 78s(b)(3)(A). \10\ 17 CFR 240.19b-4(f)(2). --------------------------------------------------------------------------- At any time within 60 days of the filing of such proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. 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-2017-50 on the subject line. Paper Comments Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090. All submissions should refer to File Number SR-NYSEArca-2017-50. This file number should be included on the subject line if email is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for Web site viewing and printing in the Commission's Public Reference Room, 100 F Street NE., Washington, DC 20549 on official business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of the filing also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR-NYSEArca-2017-50 and should be submitted on or before June 5, 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. 2017-09715 Filed 5-12-17; 8:45 am] BILLING CODE 8011-01-P
![22360 Federal Register / Vol. 82, No. 92 / Monday, May 15, 2017 / Notices
the amendments are designed to avoid the self-regulatory organization www.theice.com/clear-europe/
unfairly burdening affiliate groups that consents, the Commission will: regulation#rule-filings.
have elected to clear through more than (A) By order approve or disapprove All comments received will be posted
one affiliated CDS Clearing Member, by the proposed rule change or without change; the Commission does
setting the relevant Firm Trade notional (B) institute proceedings to determine not edit personal identifying
limit at the CP affiliate group level. In whether the proposed rule change information from submissions. You
ICE Clear Europe’s view, the revised should be disapproved. should submit only information that
approach appropriately incentivizes The proposal shall not take effect you wish to make available publicly. All
CDS Clearing Member participation in until all regulatory actions required submissions should refer to File
the end-of-day price submission with respect to the proposal are Number SR–ICEEU–2017–006 and
process, while balancing the risks of the completed. should be submitted on or before June
Firm Trade process fairly across 5, 2017.
different CDS Clearing Members. The IV. Solicitation of Comments
amendments to the Disciplinary Interested persons are invited to For the Commission, by the Division of
Framework will also apply to all CDS Trading and Markets, pursuant to delegated
submit written data, views, and
Clearing Members, and establish new authority.11
arguments concerning the foregoing,
procedures for determinations that a including whether the proposed rule Eduardo A. Aleman,
Clearing Member is subject to a cash change, security-based swap submission Assistant Secretary.
assessment as a result of a Missed or advance notice is consistent with the [FR Doc. 2017–09714 Filed 5–12–17; 8:45 am]
Submission. ICE Clear Europe does not Act. Comments may be submitted by BILLING CODE 8011–01–P
believe that the adoption of the any of the following methods:
amendments will adversely affect
competition among Clearing Members, Electronic Comments
SECURITIES AND EXCHANGE
or the ability of market participants to • Use the Commission’s Internet COMMISSION
clear contracts generally. The Clearing comment form (http://www.sec.gov/
House also does not believe that the rules/sro.shtml) or [Release No. 34–80632; File No. SR–
amendments will reduce access to • Send an email to rule-comments@ NYSEArca–2017–50]
clearing CDS contracts or limit market sec.gov. Please include File Number SR–
participants’ choices for clearing CDS. ICEEU–2017–006 on the subject line. Self-Regulatory Organizations; NYSE
The amended policies, like the Arca, Inc.; Notice of Filing and
current policies, may result in certain Paper Comments
Immediate Effectiveness of Proposed
costs for Clearing Members that are • Send paper comments in triplicate Rule Change Amending the NYSE Arca
required to enter into Firm Trades as a to Secretary, Securities and Exchange Equities Schedule of Fees and
result of obvious errors in their Commission, 100 F Street NE., Charges for Exchange Services
submissions or otherwise, or are subject Washington, DC 20549–1090.
to cash assessments as a result of Missed May 9, 2017.
Submissions. ICE Clear Europe believes All submissions should refer to File
Number SR–ICEEU–2017–006. This file Pursuant to Section 19(b)(1) 1 of the
that these costs are warranted to
number should be included on the Securities Exchange Act of 1934 (the
enhance the integrity of the price
subject line if email is used. To help the ‘‘Act’’) 2 and Rule 19b–4 thereunder,3
submission process, and are in any
Commission process and review your notice is hereby given that, on April 28,
event generally within the control of the
comments more efficiently, please use 2017, NYSE Arca, Inc. (the ‘‘Exchange’’
Clearing Member. As a result, ICE Clear
only one method. The Commission will or ‘‘NYSE Arca’’) filed with the
Europe does not believe the proposed
post all comments on the Commission’s Securities and Exchange Commission
amendments impose any burden on
Internet Web site (http://www.sec.gov/ (the ‘‘Commission’’) the proposed rule
competition that is inappropriate in
rules/sro.shtml). Copies of the change as described in Items I and II
furtherance of the purposes of the Act.
submission, all subsequent below, which Items have been prepared
(C) Clearing Agency’s Statement on amendments, all written statements by the self-regulatory organization. The
Comments on the Proposed Rule with respect to the proposed rule Commission is publishing this notice to
Change Received From Members, change, security-based swap submission solicit comments on the proposed rule
Participants or Others or advance notice that are filed with the change from interested persons.
Written comments relating to the Commission, and all written
I. Self-Regulatory Organization’s
proposed changes to the rules have not communications relating to the
Statement of the Terms of Substance of
been solicited or received. ICE Clear proposed rule change, security-based
the Proposed Rule Change
Europe will notify the Commission of swap submission or advance notice
any written comments received by ICE between the Commission and any The Exchange proposes to amend the
Clear Europe. person, other than those that may be NYSE Arca Equities Schedule of Fees
withheld from the public in accordance and Charges for Exchange Services
III. Date of Effectiveness of the with the provisions of 5 U.S.C. 552, will (‘‘Fee Schedule’’). The proposed rule
Proposed Rule Change, Security-Based be available for Web site viewing and change is available on the Exchange’s
Swap Submission and Advance Notice printing in the Commission’s Public Web site at www.nyse.com, at the
and Timing for Commission Action Reference Room, 100 F Street NE.,
jstallworth on DSK7TPTVN1PROD with NOTICES
principal office of the Exchange, and at
Within 45 days of the date of Washington, DC 20549, on official the Commission’s Public Reference
publication of this notice in the Federal business days between the hours of Room.
Register or within such longer period 10:00 a.m. and 3:00 p.m. Copies of such
up to 90 days (i) as the Commission may filings will also be available for 11 17 CFR 200.30–3(a)(12).
designate if it finds such longer period inspection and copying at the principal 1 15 U.S.C. 78s(b)(1).
to be appropriate and publishes its office of ICE Clear Europe and on ICE 2 15 U.S.C. 78a.
reasons for so finding or (ii) as to which Clear Europe’s Web site at https:// 3 17 CFR 240.19b–4.
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![22362 Federal Register / Vol. 82, No. 92 / Monday, May 15, 2017 / Notices
B. Self-Regulatory Organization’s Commission, 100 F Street NE., Notice is hereby given that, pursuant
Statement on Burden on Competition Washington, DC 20549–1090. to the Paperwork Reduction Act of 1995
All submissions should refer to File (44 U.S.C. 3501 et seq.), the Securities
In accordance with Section 6(b)(8) of
Number SR–NYSEArca–2017–50. This and Exchange Commission (the
the Act,8 the Exchange believes that the
file number should be included on the ‘‘Commission’’) is soliciting comments
proposed rule change would not impose
subject line if email is used. To help the on the collection of information
any burden on competition that is not
Commission process and review your summarized below. The Commission
necessary or appropriate in furtherance
comments more efficiently, please use plans to submit this existing collection
of the purposes of the Act. The
only one method. The Commission will of information to the Office of
proposed rule change is intended to
post all comments on the Commission’s Management and Budget (‘‘OMB’’) for
adopt the Quoting and Depth Standard
Internet Web site (http://www.sec.gov/ extension and approval.
in June 2017 rather than in May 2017, Rule 30b1–5 (17 CFR 270.30b1–5)
as was originally proposed in the ELP rules/sro.shtml). Copies of the
submission, all subsequent under the Investment Company Act of
Program Filing, while extending the 1940 (15 U.S.C. 80a–1 et seq.) (the
current Quoting Standard through May amendments, all written statements
with respect to the proposed rule ‘‘Investment Company Act’’) requires
2017. registered management investment
change that are filed with the
C. Self-Regulatory Organization’s Commission, and all written companies, other than small business
Statement on Comments on the communications relating to the investment companies registered on
Proposed Rule Change Received From proposed rule change between the Form N–5 (17 CFR 239.24 and 274.5)
Members, Participants, or Others (‘‘funds’’), to file a quarterly report via
Commission and any person, other than
the Commission’s EDGAR system on
No written comments were solicited those that may be withheld from the
Form N–Q (17 CFR 249.332 and
or received with respect to the proposed public in accordance with the
274.130), not more than sixty calendar
rule change. provisions of 5 U.S.C. 552, will be
days after the close of each first and
available for Web site viewing and
III. Date of Effectiveness of the third fiscal quarter, containing their
printing in the Commission’s Public
Proposed Rule Change and Timing for complete portfolio holdings. The
Reference Room, 100 F Street NE.,
Commission Action purpose of the collection of information
Washington, DC 20549 on official
required by rule 30b1–5 is to meet the
The foregoing rule change is effective business days between the hours of
disclosure requirements of the
upon filing pursuant to Section 10:00 a.m. and 3:00 p.m. Copies of the Investment Company Act and to provide
19(b)(3)(A) 9 of the Act and filing also will be available for investors with information necessary to
subparagraph (f)(2) of Rule 19b–4 10 inspection and copying at the principal evaluate an interest in the fund by
thereunder, because it establishes a due, office of the Exchange. All comments improving the transparency of
fee, or other charge imposed by the received will be posted without change; information about the fund’s portfolio
Exchange. the Commission does not edit personal holdings.
At any time within 60 days of the identifying information from The Commission estimates that there
filing of such proposed rule change, the submissions. You should submit only are 2,380 management investment
Commission summarily may information that you wish to make companies, with a total of
temporarily suspend such rule change if available publicly. All submissions approximately 11,757 portfolios, that
it appears to the Commission that such should refer to File Number SR– are governed by the rule. For purposes
action is necessary or appropriate in the NYSEArca–2017–50 and should be of this analysis, the burden associated
public interest, for the protection of submitted on or before June 5, 2017. with the requirements of rule 30b1–5
investors, or otherwise in furtherance of For the Commission, by the Division of has been included in the collection of
the purposes of the Act. Trading and Markets, pursuant to delegated information requirements of Form N–Q,
authority.11 rather than the rule.
IV. Solicitation of Comments The collection of information under
Eduardo A. Aleman,
Interested persons are invited to Assistant Secretary. rule 30b1–5 is mandatory. The
submit written data, views, and [FR Doc. 2017–09715 Filed 5–12–17; 8:45 am] information provided under rule 30b1–
arguments concerning the foregoing, BILLING CODE 8011–01–P
5 is not kept confidential. An agency
including whether the proposed rule may not conduct or sponsor, and a
change is consistent with the Act. person is not required to respond to, a
Comments may be submitted by any of SECURITIES AND EXCHANGE collection of information unless it
the following methods: COMMISSION displays a currently valid OMB control
number.
Electronic Comments Written comments are invited on: (a)
[SEC File No. 270–520, OMB Control No.
• Use the Commission’s Internet 3235–0577] Whether the proposed collection of
comment form (http://www.sec.gov/ information is necessary for the proper
rules/sro.shtml); or Proposed Collection; Comment performance of the functions of the
• Send an email to rule-comments@ Request agency, including whether the
sec.gov. Please include File Number SR– information will have practical utility;
NYSEArca–2017–50 on the subject line. Upon Written Request, Copies Available (b) the accuracy of the agency’s estimate
From: Securities and Exchange of the burden of the collection of
jstallworth on DSK7TPTVN1PROD with NOTICES
Paper Comments Commission, Office of FOIA Services, information; (c) ways to enhance the
• Send paper comments in triplicate 100 F Street NE., Washington, DC quality, utility, and clarity of the
to Secretary, Securities and Exchange 20549–2736 information collected; and (d) ways to
Extension: minimize the burden of the collection of
8 15 U.S.C. 78f(b)(8). Rule 30b1–5 information on respondents, including
9 15 U.S.C. 78s(b)(3)(A). through the use of automated collection
10 17 CFR 240.19b–4(f)(2). 11 17 CFR 200.30–3(a)(12). techniques or other forms of information
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Document Created: 2017-05-13 02:38:40
Document Modified: 2017-05-13 02:38:40
| 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 22360 |
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