82 FR 28726 - Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and Immediate Effectiveness of Proposed Change To Modify the NYSE Amex Options Fee Schedule
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 120 (June 23, 2017)
Federal Register Volume 82, Issue 120 (June 23, 2017)
| Page Range | 28726-28728 | |
| FR Document | 2017-13095 |
[Federal Register Volume 82, Number 120 (Friday, June 23, 2017)] [Notices] [Pages 28726-28728] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-13095] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-80964; File No. SR-NYSEMKT-2017-37] Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and Immediate Effectiveness of Proposed Change To Modify the NYSE Amex Options Fee Schedule June 19, 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 June 9, 2017, NYSE MKT LLC (the ``Exchange'' or ``NYSE MKT'') 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 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 June 9, 2017. 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 establish fees and credits for a recently adopted Exchange trading mechanism known as Broadcast Order Liquidity Delivery Mechanism (``BOLD''), which was launched on May 31, 2017.\4\ --------------------------------------------------------------------------- \4\ See Securities Exchange Act Release Nos. 80494 (April 20, 2017) 82 FR 19300 (April 26, 2017) (SR-NYSEMKT-2017-21) and 80695 (May 16, 2017) (SR-NYSEMKT-2017-28). --------------------------------------------------------------------------- BOLD is a new feature within the Exchange's trading system that provides automated order handling in eligible orders that are executable against quotations disseminated by other exchanges that are participants in the Options Order Protection and Locked/Crossed Market Plan.\5\ --------------------------------------------------------------------------- \5\ See Rule 994NY. --------------------------------------------------------------------------- First, the Exchange proposes to adopt definitions related to BOLD. The Exchange proposes to define the ``BOLD Mechanism'' as referring to ``the Exchange's automated order handling for eligible orders in designated classes, pursuant to Rule 994NY.'' \6\ As a general matter, the BOLD Mechanism is Exchange functionality that allows ATP Holders to ``step-up'' and trade against orders that are exposed by the Exchange prior to such orders being routed to another market or posted on the Exchange's order book. ATP Holders that submit orders that are designated to be BOLD-eligible will be considered BOLD Initiating Orders for purposes of this proposed rule change. As such, the Exchange proposes to define a ``BOLD Initiating Order'' as ``an order submitted to be executed via the BOLD Mechanism.'' \7\ ATP Holders that ``step- up'' to trade against a BOLD Initiating Order will be considered BOLD Responding Order for purposes of this proposed rule change. As such, the Exchange proposes to define a ``BOLD Responding Order'' as ``an order that trades with the BOLD Initiating Order.'' \8\ The Exchange believes these proposed changes would add clarity and transparency to the Fee Schedule. --------------------------------------------------------------------------- \6\ See proposed Fee Schedule, Key Terms and Definitions. \7\ See id. \8\ See id. --------------------------------------------------------------------------- Regarding pricing, the Exchange proposes that Non-Customer \9\ and Professional Customer orders executed via BOLD would be charged the same rate as currently applied to Electronic executions in standard options contracts, based on participant type and whether the option traded is a Penny Pilot issue.\10\ The Exchange proposes to apply a per contract credit for all BOLD Initiating Orders that are Customer orders executed via BOLD, which credit would be the greater of $0.12 or the rebate amount achieved through the Amex Customer Engagement (``ACE'') Program.\11\ The Exchange proposes to exclude from this proposed credit any transactions in Binary Return Derivatives--or ByRDs--executed via BOLD as ByRDs transactions are not currently subject to transaction charges.\12\ The Exchange proposes to impose no fee on Customer orders that are BOLD Responding Orders. The Exchange notes that, as proposed, NYSE Amex Options Market Makers would not be assessed Marketing Charges for transactions executed via the BOLD Mechanism.\13\ The Exchange believes this proposed change would encourage Market Makers to provide additional liquidity to orders directed to BOLD Mechanism for execution on the Exchange. --------------------------------------------------------------------------- \9\ Non-Customers include Broker-Dealers, DOMMs, e-Specialists, Firms, Market Makers, and Specialists. \10\ See Fee Schedule, Section I.A. (Rates for Standard Options transactions--Electronic and Manual), available here, https://www.nyse.com/publicdocs/nyse/markets/amex-options/NYSE_Amex_Options_Fee_Schedule.pdf. \11\ See proposed Fee Schedule, Section I.M. (BOLD Mechanism Fees & Credits). \12\ See Fee Schedule, supra note 11, at footnote 5 to Section I.A. (excluding transactions in ByRDs from transaction fees and credits) and proposed Fee Schedule, Section I.M., at footnote 2 (excluding ByRDs from proposed credit for executions via the BOLD Mechanism). See also Fee Schedule, Section I.H. (Early Adopter Specialist) (providing incentive to Specialists appointed to trade ByRDs). \13\ See proposed Fee Schedule, Section I.M., at footnote 1. Only Market Makers incur Marketing Charges, such charges are not imposed on any other market participants. --------------------------------------------------------------------------- The Exchange proposes that, beginning in June 2017, volume [[Page 28727]] executed via BOLD would be included for purposes of calculating monthly volume thresholds for the Market Maker Sliding Scale and the ACE Program.\14\ Also beginning in June 2017, the Exchange proposes to apply fees incurred via the BOLD Mechanism to the Prepayment Programs.\15\ --------------------------------------------------------------------------- \14\ See proposed Fee Schedule, Sections I.C. (NYSE Amex Options Market Maker Sliding Scale--Electronic and Manual) and I.E (ACE Program). The Exchange also proposes to remove from Section I.C. of the Fee Schedule the now-superfluous language ``[e]ffective January 3, 2017,'' which would add clarity and transparency to the Fee Schedule. See proposed Fee Schedule, Section I.C. \15\ See proposed Fee Schedule, Section I.D. (Prepayment Program). --------------------------------------------------------------------------- Finally, the Exchange proposes to make a clarifying change to the ACE Program to make clear that ATP Holders that achieve Tier 2 and are eligible to receive the $0.19 per contract credit for Electronic Customer Complex Orders would receive such credit ``regardless of whether the Complex Order trades against interest in the Complex Order Book or with individual orders and quotes in the Consolidated Book.'' \16\ The Exchange notes that this treatment would be consistent with how other credits for Complex Orders achieved through the ACE Program are handled.\17\ The Exchange believes this change would add clarity, transparency and internal consistency to the Fee Schedule. --------------------------------------------------------------------------- \16\ See proposed Fee Schedule, Section I.E., n. 4 (ACE Program). \17\ See Fee Schedule, supra note 11, Section I.E., n. 2 (providing that credits for Complex Orders achieved under Tiers 4 or 5 of the ACE Program would be paid ``regardless of whether the Complex Order trades against interest in the Complex Order Book or with individual orders and quotes in the Consolidated Book''). --------------------------------------------------------------------------- 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with Section 6(b) of the Act,\18\ in general, and furthers the objectives of Sections 6(b)(4) and (5) of the Act,\19\ 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. --------------------------------------------------------------------------- \18\ 15 U.S.C. 78f(b). \19\ 15 U.S.C. 78f(b)(4) and (5). --------------------------------------------------------------------------- The Exchange believes applying standard transaction fees (based on participant type and whether a Penny Pilot issue) for Non-Customer and Professional Customer orders executed using the BOLD Mechanism is reasonable, equitable, and not unfairly discriminatory, because these market participants would be subject to the same or lower fees as are currently imposed on these market participants for Electronic transactions executed on the Exchange. Further, the Exchange believes the proposed treatment of Customer orders executed via BOLD--i.e., the proposed credit for BOLD Initiating Orders, no fee for BOLD Responding Orders and absence of Marketing Charge--is reasonable, equitable, and not unfairly discriminatory as these fees and credits recognize the benefits of additional liquidity delivered to the Exchange when ATP Holders utilize the BOLD Mechanism. Specifically, the proposed pricing provides an incentive for Customer orders that are marketable against the National Best Bid/Offer (``NBBO'') to be sent to NYSE Amex, which benefits all market participants by providing more trading opportunities. The Exchange also notes that other markets have utilized pricing incentives for features similar to the BOLD Mechanism and therefore the concept is not new or novel.\20\ The Exchange also notes that it is reasonable to exclude transactions in ByRDs from the proposed credit for BOLD Initiating Orders because ByRDs are not currently subject to any transaction fees.\21\ --------------------------------------------------------------------------- \20\ See, e.g., Nasdaq ISE Schedule of Fees, available here, https://www.ise.com/fees (Section IV.G., providing credit for responses to Flash Orders). See also NASDAQ PHLX LLC Pricing Schedule, available here, http://www.nasdaqtrader.com/Micro.aspx?id=phlxpricing (providing that ``[n]o Marketing Fees will be assessed on transactions which execute against an order for which the Exchange broadcast an order exposure alert in Penny Pilot Options,'' which exposure alert is similar to BOLD). \21\ The Exchange notes that ByRDs, which were re-launched in 2016, are exempted from standard transaction fees and are also not subject to monthly rights fees. See Fee Schedule, supra note 11, Section I.A., n. 5 and Section III. C., n. 1, respectively. --------------------------------------------------------------------------- Further, the proposal to include orders executed via the BOLD Mechanism for purposes of calculating monthly volume thresholds for the Market Maker Sliding Scale and the ACE Program, as well as to apply fees incurred for BOLD transactions to the Prepayment Program, are reasonable, equitable, and not unfairly discriminatory as these programs are designed to encourage participation by Customers and Market Makers in the full spectrum of NYSE Amex Options transactions. The Exchange also believes it is reasonable, equitable, and not unfairly discriminatory to not impose Marketing Charges on NYSE Amex Market Makers for orders executed via the BOLD Mechanism because such orders do not interact with quoted markets but are required to be filled at prices no worse than the NBBO. The Exchange believes that removing the Marketing Charges should incentivize Market Makers to more actively provide liquidity in response to orders submitted via BOLD.\22\ To the extent that the proposed changes attract additional order flow to the Exchange, this would result in liquidity and more trading opportunities to the benefit of all market participants. --------------------------------------------------------------------------- \22\ The Exchange also notes that other options exchanges do not charge marketing fees for orders similar to BOLD-designated orders. See supra note 21 (citing NASDAQ PHLX fee schedule). --------------------------------------------------------------------------- In addition, the Exchange believes the proposed changes are consistent with the Act because to the extent the BOLD Mechanism permits the Exchange to continue to attract greater volume and liquidity, the proposed change would improve the Exchange's overall competitiveness and strengthen its market quality for all market participants. Finally, the Exchange believes the proposed clarifying change to the ACE Program regarding how credits for Complex Orders would be handled is consistent with the Act as this change would add clarity, transparency and internal consistency to the Fee Schedule. In addition, the proposal to remove extraneous language from Section I.C. of the Fee Schedule \23\ would likewise add clarity, transparency and internal consistency to the Fee Schedule. --------------------------------------------------------------------------- \23\ See supra note 15. --------------------------------------------------------------------------- B. Self-Regulatory Organization's Statement on Burden on Competition In accordance with Section 6(b)(8) of the Act,\24\ 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 the proposed credit for Customer orders executed via BOLD and the proposed absence of a fee for Customer orders that are BOLD Responding Orders are pro-competitive as the proposed pricing is designed to encourage Order Flow Providers (``OFPs'') to direct Customer order flow to the Exchange and any resulting increase in volume and liquidity to the Exchange would benefit all Exchange participants through increased opportunities to trade as well as enhancing price discovery. The proposed fees for Non- Customer and Professional Customer orders executed via BOLD would not discourage competition and are instead intended to promote competition and better improve the Exchange's competitive position. Further, the proposed changes only [[Page 28728]] affect trading on the Exchange. To the extent that the proposed changes make NYSE Amex a more attractive marketplace for market participants at other exchanges, such market participants are welcome to become ATP Holders on the Exchange. --------------------------------------------------------------------------- \24\ 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) \25\ of the Act and subparagraph (f)(2) of Rule 19b-4 \26\ thereunder, because it establishes a due, fee, or other charge imposed by the Exchange. --------------------------------------------------------------------------- \25\ 15 U.S.C. 78s(b)(3)(A). \26\ 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) \27\ of the Act to determine whether the proposed rule change should be approved or disapproved. --------------------------------------------------------------------------- \27\ 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-NYSEMKT-2017-37 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-2017-37. 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-NYSEMKT-2017-37, and should be submitted on or before July 14, 2017. --------------------------------------------------------------------------- \28\ 17 CFR 200.30-3(a)(12). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\28\ Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017-13095 Filed 6-22-17; 8:45 am] BILLING CODE 8011-01-P
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arbitrator selection process at an earlier Web site at www.nyse.com, at the to be executed via the BOLD
date. Accordingly, the Commission principal office of the Exchange, and at Mechanism.’’ 7 ATP Holders that ‘‘step-
believes that the approach proposed by the Commission’s Public Reference up’’ to trade against a BOLD Initiating
FINRA is appropriate and designed to Room. Order will be considered BOLD
protect investors and the public interest, Responding Order for purposes of this
II. Self-Regulatory Organization’s
consistent with Section 15A(b)(6) of the proposed rule change. As such, the
Statement of the Purpose of, and Exchange proposes to define a ‘‘BOLD
Exchange Act. For these reasons, the
Statutory Basis for, the Proposed Rule Responding Order’’ as ‘‘an order that
Commission finds that the proposed
Change trades with the BOLD Initiating
rule change is consistent with the
Exchange Act and the rules and In its filing with the Commission, the Order.’’ 8 The Exchange believes these
regulations thereunder. self-regulatory organization included proposed changes would add clarity and
statements concerning the purpose of, transparency to the Fee Schedule.
V. Conclusion and basis for, the proposed rule change Regarding pricing, the Exchange
It is therefore ordered pursuant to and discussed any comments it received proposes that Non-Customer 9 and
Section 19(b)(2) of the Exchange Act 30 on the proposed rule change. The text Professional Customer orders executed
that the proposal (SR–FINRA–2017– of those statements may be examined at via BOLD would be charged the same
009), be and hereby is approved. the places specified in Item IV below. rate as currently applied to Electronic
For the Commission, by the Division of The Exchange has prepared summaries, executions in standard options
Trading and Markets, pursuant to delegated set forth in sections A, B, and C below, contracts, based on participant type and
authority.31 of the most significant parts of such whether the option traded is a Penny
Eduardo A. Aleman, statements. Pilot issue.10 The Exchange proposes to
Assistant Secretary. apply a per contract credit for all BOLD
A. Self-Regulatory Organization’s Initiating Orders that are Customer
[FR Doc. 2017–13104 Filed 6–22–17; 8:45 am] Statement of the Purpose of, and the orders executed via BOLD, which credit
BILLING CODE 8011–01–P Statutory Basis for, the Proposed Rule would be the greater of $0.12 or the
Change rebate amount achieved through the
SECURITIES AND EXCHANGE 1. Purpose Amex Customer Engagement (‘‘ACE’’)
COMMISSION Program.11 The Exchange proposes to
The purpose of this filing is to exclude from this proposed credit any
[Release No. 34–80964; File No. SR– establish fees and credits for a recently transactions in Binary Return
NYSEMKT–2017–37] adopted Exchange trading mechanism Derivatives—or ByRDs—executed via
known as Broadcast Order Liquidity BOLD as ByRDs transactions are not
Self-Regulatory Organizations; NYSE Delivery Mechanism (‘‘BOLD’’), which currently subject to transaction
MKT LLC; Notice of Filing and was launched on May 31, 2017.4 charges.12 The Exchange proposes to
Immediate Effectiveness of Proposed BOLD is a new feature within the impose no fee on Customer orders that
Change To Modify the NYSE Amex Exchange’s trading system that provides are BOLD Responding Orders. The
Options Fee Schedule automated order handling in eligible Exchange notes that, as proposed, NYSE
orders that are executable against Amex Options Market Makers would
June 19, 2017.
quotations disseminated by other not be assessed Marketing Charges for
Pursuant to Section 19(b)(1) 1 of the
exchanges that are participants in the transactions executed via the BOLD
Securities Exchange Act of 1934 (the
Options Order Protection and Locked/ Mechanism.13 The Exchange believes
‘‘Act’’) 2 and Rule 19b–4 thereunder,3
Crossed Market Plan.5 this proposed change would encourage
notice is hereby given that, on June 9,
First, the Exchange proposes to adopt Market Makers to provide additional
2017, NYSE MKT LLC (the ‘‘Exchange’’
definitions related to BOLD. The liquidity to orders directed to BOLD
or ‘‘NYSE MKT’’) filed with the
Exchange proposes to define the ‘‘BOLD Mechanism for execution on the
Securities and Exchange Commission
Mechanism’’ as referring to ‘‘the Exchange.
(the ‘‘Commission’’) the proposed rule
Exchange’s automated order handling The Exchange proposes that,
change as described in Items I, II, and
for eligible orders in designated classes, beginning in June 2017, volume
III below, which Items have been
pursuant to Rule 994NY.’’ 6 As a general
prepared by the self-regulatory
matter, the BOLD Mechanism is 7 See id.
organization. The Commission is
Exchange functionality that allows ATP 8 See id.
publishing this notice to solicit 9 Non-Customers include Broker-Dealers,
Holders to ‘‘step-up’’ and trade against
comments on the proposed rule change DOMMs, e-Specialists, Firms, Market Makers, and
orders that are exposed by the Exchange
from interested persons. Specialists.
prior to such orders being routed to 10 See Fee Schedule, Section I.A. (Rates for
I. Self-Regulatory Organization’s another market or posted on the Standard Options transactions—Electronic and
Statement of the Terms of Substance of Exchange’s order book. ATP Holders Manual), available here, https://www.nyse.com/
that submit orders that are designated to publicdocs/nyse/markets/amex-options/NYSE_
the Proposed Rule Change Amex_Options_Fee_Schedule.pdf.
The Exchange proposes to modify the be BOLD-eligible will be considered 11 See proposed Fee Schedule, Section I.M.
NYSE Amex Options Fee Schedule BOLD Initiating Orders for purposes of (BOLD Mechanism Fees & Credits).
(‘‘Fee Schedule’’). The Exchange this proposed rule change. As such, the 12 See Fee Schedule, supra note 11, at footnote 5
asabaliauskas on DSKBBXCHB2PROD with NOTICES
Exchange proposes to define a ‘‘BOLD to Section I.A. (excluding transactions in ByRDs
proposes to implement the fee change from transaction fees and credits) and proposed Fee
effective June 9, 2017. The proposed Initiating Order’’ as ‘‘an order submitted Schedule, Section I.M., at footnote 2 (excluding
change is available on the Exchange’s ByRDs from proposed credit for executions via the
4 See Securities Exchange Act Release Nos. 80494
BOLD Mechanism). See also Fee Schedule, Section
(April 20, 2017) 82 FR 19300 (April 26, 2017) (SR– I.H. (Early Adopter Specialist) (providing incentive
30 15 U.S.C. 78s(b)(2). NYSEMKT–2017–21) and 80695 (May 16, 2017) to Specialists appointed to trade ByRDs).
31 17 CFR 200.30–3(a)(12). (SR–NYSEMKT–2017–28). 13 See proposed Fee Schedule, Section I.M., at
1 15 U.S.C.78s(b)(1). 5 See Rule 994NY.
footnote 1. Only Market Makers incur Marketing
2 15 U.S.C. 78a. 6 See proposed Fee Schedule, Key Terms and Charges, such charges are not imposed on any other
3 17 CFR 240.19b–4. Definitions. market participants.
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executed via BOLD would be included same or lower fees as are currently Exchange believes that removing the
for purposes of calculating monthly imposed on these market participants Marketing Charges should incentivize
volume thresholds for the Market Maker for Electronic transactions executed on Market Makers to more actively provide
Sliding Scale and the ACE Program.14 the Exchange. liquidity in response to orders
Also beginning in June 2017, the Further, the Exchange believes the submitted via BOLD.22 To the extent
Exchange proposes to apply fees proposed treatment of Customer orders that the proposed changes attract
incurred via the BOLD Mechanism to executed via BOLD—i.e., the proposed additional order flow to the Exchange,
the Prepayment Programs.15 credit for BOLD Initiating Orders, no fee this would result in liquidity and more
Finally, the Exchange proposes to for BOLD Responding Orders and trading opportunities to the benefit of
make a clarifying change to the ACE absence of Marketing Charge—is all market participants.
Program to make clear that ATP Holders reasonable, equitable, and not unfairly In addition, the Exchange believes the
that achieve Tier 2 and are eligible to discriminatory as these fees and credits proposed changes are consistent with
receive the $0.19 per contract credit for recognize the benefits of additional the Act because to the extent the BOLD
Electronic Customer Complex Orders liquidity delivered to the Exchange Mechanism permits the Exchange to
would receive such credit ‘‘regardless of when ATP Holders utilize the BOLD continue to attract greater volume and
whether the Complex Order trades Mechanism. Specifically, the proposed liquidity, the proposed change would
against interest in the Complex Order pricing provides an incentive for improve the Exchange’s overall
Book or with individual orders and Customer orders that are marketable competitiveness and strengthen its
quotes in the Consolidated Book.’’ 16 against the National Best Bid/Offer market quality for all market
The Exchange notes that this treatment (‘‘NBBO’’) to be sent to NYSE Amex, participants.
would be consistent with how other which benefits all market participants Finally, the Exchange believes the
credits for Complex Orders achieved by providing more trading proposed clarifying change to the ACE
through the ACE Program are handled.17 opportunities. The Exchange also notes Program regarding how credits for
The Exchange believes this change that other markets have utilized pricing Complex Orders would be handled is
would add clarity, transparency and incentives for features similar to the consistent with the Act as this change
internal consistency to the Fee BOLD Mechanism and therefore the would add clarity, transparency and
Schedule. concept is not new or novel.20 The internal consistency to the Fee
Exchange also notes that it is reasonable Schedule. In addition, the proposal to
2. Statutory Basis to exclude transactions in ByRDs from remove extraneous language from
The Exchange believes that the the proposed credit for BOLD Initiating Section I.C. of the Fee Schedule 23
proposed rule change is consistent with Orders because ByRDs are not currently would likewise add clarity,
Section 6(b) of the Act,18 in general, and subject to any transaction fees.21 transparency and internal consistency to
furthers the objectives of Sections Further, the proposal to include the Fee Schedule.
6(b)(4) and (5) of the Act,19 in particular, orders executed via the BOLD B. Self-Regulatory Organization’s
because it provides for the equitable Mechanism for purposes of calculating
Statement on Burden on Competition
allocation of reasonable dues, fees, and monthly volume thresholds for the
Market Maker Sliding Scale and the In accordance with Section 6(b)(8) of
other charges among its members,
ACE Program, as well as to apply fees the Act,24 the Exchange does not believe
issuers and other persons using its
incurred for BOLD transactions to the that the proposed rule change would
facilities and does not unfairly
Prepayment Program, are reasonable, impose any burden on competition that
discriminate between customers,
equitable, and not unfairly is not necessary or appropriate in
issuers, brokers or dealers.
discriminatory as these programs are furtherance of the purposes of the Act.
The Exchange believes applying
designed to encourage participation by The Exchange believes the proposed
standard transaction fees (based on
Customers and Market Makers in the credit for Customer orders executed via
participant type and whether a Penny
full spectrum of NYSE Amex Options BOLD and the proposed absence of a fee
Pilot issue) for Non-Customer and
transactions. The Exchange also believes for Customer orders that are BOLD
Professional Customer orders executed
it is reasonable, equitable, and not Responding Orders are pro-competitive
using the BOLD Mechanism is
unfairly discriminatory to not impose as the proposed pricing is designed to
reasonable, equitable, and not unfairly
Marketing Charges on NYSE Amex encourage Order Flow Providers
discriminatory, because these market
Market Makers for orders executed via (‘‘OFPs’’) to direct Customer order flow
participants would be subject to the to the Exchange and any resulting
the BOLD Mechanism because such
14 See proposed Fee Schedule, Sections I.C. orders do not interact with quoted increase in volume and liquidity to the
(NYSE Amex Options Market Maker Sliding Scale— markets but are required to be filled at Exchange would benefit all Exchange
Electronic and Manual) and I.E (ACE Program). The prices no worse than the NBBO. The participants through increased
Exchange also proposes to remove from Section I.C. opportunities to trade as well as
of the Fee Schedule the now-superfluous language 20 See, e.g., Nasdaq ISE Schedule of Fees, enhancing price discovery. The
‘‘[e]ffective January 3, 2017,’’ which would add
clarity and transparency to the Fee Schedule. See
available here, https://www.ise.com/fees (Section proposed fees for Non-Customer and
IV.G., providing credit for responses to Flash Professional Customer orders executed
proposed Fee Schedule, Section I.C.
Orders). See also NASDAQ PHLX LLC Pricing
15 See proposed Fee Schedule, Section I.D.
Schedule, available here, http://
via BOLD would not discourage
(Prepayment Program). www.nasdaqtrader.com/Micro.aspx?id=phlxpricing competition and are instead intended to
16 See proposed Fee Schedule, Section I.E., n. 4
promote competition and better improve
asabaliauskas on DSKBBXCHB2PROD with NOTICES
(providing that ‘‘[n]o Marketing Fees will be
(ACE Program). assessed on transactions which execute against an
17 See Fee Schedule, supra note 11, Section I.E.,
the Exchange’s competitive position.
order for which the Exchange broadcast an order
n. 2 (providing that credits for Complex Orders exposure alert in Penny Pilot Options,’’ which
Further, the proposed changes only
achieved under Tiers 4 or 5 of the ACE Program exposure alert is similar to BOLD).
would be paid ‘‘regardless of whether the Complex 21 The Exchange notes that ByRDs, which were re- 22 The Exchange also notes that other options
Order trades against interest in the Complex Order launched in 2016, are exempted from standard exchanges do not charge marketing fees for orders
Book or with individual orders and quotes in the transaction fees and are also not subject to monthly similar to BOLD-designated orders. See supra note
Consolidated Book’’). rights fees. See Fee Schedule, supra note 11, 21 (citing NASDAQ PHLX fee schedule).
18 15 U.S.C. 78f(b). 23 See supra note 15.
Section I.A., n. 5 and Section III. C., n. 1,
19 15 U.S.C. 78f(b)(4) and (5). respectively. 24 15 U.S.C. 78f(b)(8).
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affect trading on the Exchange. To the Electronic Comments SMALL BUSINESS ADMINISTRATION
extent that the proposed changes make
NYSE Amex a more attractive • Use the Commission’s Internet
[Disaster Declaration #15183 and #15184;
marketplace for market participants at comment form (http://www.sec.gov/
KANSAS Disaster #KS–00102]
other exchanges, such market rules/sro.shtml); or
participants are welcome to become • Send an email to rule-comments@ Presidential Declaration of a Major
ATP Holders on the Exchange. sec.gov. Please include File Number SR– Disaster for Public Assistance Only for
The Exchange notes that it operates in NYSEMKT–2017–37 on the subject line. the State of KANSAS
a highly competitive market in which Paper Comments AGENCY: U.S. Small Business
market participants can readily favor Administration.
competing venues. In such an • Send paper comments in triplicate ACTION: Notice.
environment, the Exchange must to Secretary, Securities and Exchange
continually review, and consider Commission, 100 F Street NE., SUMMARY: This is a Notice of the
adjusting, its fees and credits to remain Washington, DC 20549–1090. Presidential declaration of a major
competitive with other exchanges. For disaster for Public Assistance Only for
All submissions should refer to File
the reasons described above, the the State of KANSAS (FEMA–4319–DR),
Exchange believes that the proposed Number SR–NYSEMKT–2017–37. This
dated 06/16/2017.
rule change reflects this competitive file number should be included on the
Incident: Severe Winter Storm,
environment. subject line if email is used. To help the Snowstorm, Straight-line Winds, and
Commission process and review your Flooding.
C. Self-Regulatory Organization’s comments more efficiently, please use Incident Period: 04/28/2017 through
Statement on Comments on the only one method. The Commission will 05/03/2017.
Proposed Rule Change Received From post all comments on the Commission’s
Members, Participants, or Others DATES: Effective 06/16/2017.
Internet Web site (http://www.sec.gov/
Physical Loan Application Deadline
rules/sro.shtml). Copies of the
No written comments were solicited Date: 08/15/2017.
submission, all subsequent
or received with respect to the proposed Economic Injury (Eidl) Loan
amendments, all written statements Application Deadline Date: 03/16/2018.
rule change.
with respect to the proposed rule
ADDRESSES: Submit completed loan
III. Date of Effectiveness of the change that are filed with the
Proposed Rule Change and Timing for applications to: U.S. Small Business
Commission, and all written
Commission Action Administration, Processing and
communications relating to the
Disbursement Center, 14925 Kingsport
proposed rule change between the
The foregoing rule change is effective Road, Fort Worth, TX 76155.
Commission and any person, other than
upon filing pursuant to Section FOR FURTHER INFORMATION CONTACT: A.
those that may be withheld from the
19(b)(3)(A) 25 of the Act and Escobar, Office of Disaster Assistance,
public in accordance with the
subparagraph (f)(2) of Rule 19b–4 26 U.S. Small Business Administration,
provisions of 5 U.S.C. 552, will be
thereunder, because it establishes a due, 409 3rd Street SW., Suite 6050,
available for Web site viewing and
fee, or other charge imposed by the Washington, DC 20416, (202) 205–6734.
printing in the Commission’s Public
Exchange. SUPPLEMENTARY INFORMATION: Notice is
Reference Room, 100 F Street NE.,
At any time within 60 days of the Washington, DC 20549, on official hereby given that as a result of the
filing of such proposed rule change, the President’s major disaster declaration on
business days between the hours of
Commission summarily may 06/16/2017, Private Non-Profit
10:00 a.m. and 3:00 p.m. Copies of the
temporarily suspend such rule change if organizations that provide essential
filing also will be available for services of governmental nature may file
it appears to the Commission that such inspection and copying at the principal
action is necessary or appropriate in the disaster loan applications at the address
office of the Exchange. All comments listed above or other locally announced
public interest, for the protection of
received will be posted without change; locations.
investors, or otherwise in furtherance of
the Commission does not edit personal The following areas have been
the purposes of the Act. If the
identifying information from determined to be adversely affected by
Commission takes such action, the
Commission shall institute proceedings submissions. You should submit only the disaster:
under Section 19(b)(2)(B) 27 of the Act to information that you wish to make Primary Counties: Cherokee, Cheyenne,
determine whether the proposed rule available publicly. All submissions Crawford, Decatur, Finney, Gove,
change should be approved or should refer to File Number SR– Graham, Grant, Greeley, Hamilton,
disapproved. NYSEMKT–2017–37, and should be Haskell, Kearny, Lane, Logan, Morton,
submitted on or before July 14, 2017. Neosho, Norton, Rawlins, Scott,
IV. Solicitation of Comments Seward, Sheridan, Sherman, Stanton,
For the Commission, by the Division of
Interested persons are invited to Trading and Markets, pursuant to delegated Stevens, Thomas, Wallace, Wichita.
submit written data, views, and authority.28 The Interest Rates are:
asabaliauskas on DSKBBXCHB2PROD with NOTICES
arguments concerning the foregoing, Eduardo A. Aleman,
including whether the proposed rule Assistant Secretary. Percent
change is consistent with the Act. [FR Doc. 2017–13095 Filed 6–22–17; 8:45 am] For Physical Damage:
Comments may be submitted by any of BILLING CODE 8011–01–P Non-Profit Organizations with
the following methods: Credit Available Elsewhere ... 2.500
Non-Profit Organizations with-
25 15 U.S.C. 78s(b)(3)(A). out Credit Available Else-
26 17 CFR 240.19b–4(f)(2). where ..................................... 2.500
27 15 U.S.C. 78s(b)(2)(B). 28 17 CFR 200.30–3(a)(12). For Economic Injury:
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Document Created: 2017-06-23 03:37:41
Document Modified: 2017-06-23 03:37:41
| 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 28726 |
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