82 FR 32911 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the NYSE Arca Equities Schedule of Fees and Charges for Exchange Services To Adopt a New Pricing Tier, Tape A and Tape C Tier
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 136 (July 18, 2017)
Federal Register Volume 82, Issue 136 (July 18, 2017)
| Page Range | 32911-32913 | |
| FR Document | 2017-14987 |
[Federal Register Volume 82, Number 136 (Tuesday, July 18, 2017)] [Notices] [Pages 32911-32913] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-14987] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-81134; File No. SR-NYSEARCA-2017-72] Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the NYSE Arca Equities Schedule of Fees and Charges for Exchange Services To Adopt a New Pricing Tier, Tape A and Tape C Tier July 12, 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 30, 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 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'') to adopt a new pricing tier, Tape A and Tape C Tier. The Exchange proposes to implement the fee changes effective July 3, 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. A. Self-Regulatory Organization's Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to amend the Fee Schedule, as described below, and implement the fee changes on July 3, 2017. The Exchange proposes to introduce a new pricing tier--Tape A and Tape C Tier--for securities with a per share price of $1.00 or above. As proposed, a new Tape A and Tape C Tier credit of $0.0028 per share for orders that provide liquidity in Tape A and Tape C Securities would be applicable to ETP Holders and Market Makers, that, on a daily basis, measured monthly, (1) directly execute providing volume in Tape A Securities during the billing month (``Tape A Adding ADV'') that is at least 2 million shares ADV over the ETP Holder's or Market Maker's first quarter 2017 Tape A Adding ADV, [[Page 32912]] (2) directly execute providing volume in Tape C Securities during the billing month (``Tape C Adding ADV'') that is at least 2 million shares ADV over the ETP Holder's or Market Maker's first quarter 2017 Tape C Adding ADV, and (3) meet the requirements of Tape B Tier 2.\4\ For example, if an ETP Holder's Tape A Baseline during the first quarter of 2017 was 5 million shares ADV and the ETP Holder's Tape C Baseline during the first quarter of 2017 was 3 million shares, the ETP Holder would need a Tape A Adding ADV of at least 7 million shares and a Tape C Adding ADV of at least 5 million shares and meet the requirements of Tape B Tier 2 to qualify for the proposed credit of $0.0028 per share in Tape A and Tape C Securities in the billing month.\5\ --------------------------------------------------------------------------- \4\ Tape B Tier 2 requires that ETP Holders and Market Makers on a daily basis, measured monthly, directly execute providing volume that is either (1) equal to at least 1.0% of the US Tape B CADV or (2) equal to at least 0.20% of the US Tape B ADV [sic] for the billing month over the ETP Holder's or Market Maker's Q2 2015 Tape B Adding ADV taken as a percentage of Tape B CADV. See Tape B Tier 2, Schedule of Fees. \5\ The Exchange recognizes that a firm that becomes an ETP Holder or Market Maker after the Baseline Month [sic] would have a Tape A and Tape C Baseline ADV of zero. In this regard, a new ETP Holder or Market Maker would need to have a Tape A Adding ADV and Tape C Adding ADV during the billing month of 2 million shares, in addition to meeting the Tape B Tier 2 requirements, for the $0.0028 per share credit to apply. --------------------------------------------------------------------------- For ETP Holders that qualify for the proposed new Tape A and Tape C Tier, Tiered or Basic Rates would apply to all other fees and credits, based on the firm's qualifying levels, and if an ETP Holder qualifies for more than one tier in the Fee Schedule, the Exchange would apply the most favorable rate available under such tiers. Additionally, the Exchange recently adopted the Tape C Tier 3 pricing tier that references the applicability of a $0.0002 per share credit to ETP Holders and Market Makers that qualify for that pricing tier.\6\ The Exchange proposes to make a non-substantive change to the Tape C Tier 3 pricing tier by adding the word ``directly'' in front of ``execute'' in the second prong of the pricing tier. The proposed change is intended to provide consistency within the pricing tier and the Fee Schedule generally. The Exchange is not proposing any other change to Tape C Tier 3. --------------------------------------------------------------------------- \6\ See Securities Exchange Act Release No. 80285 [sic] (May 11, 2017), 82 FR 22687 (May 17, 2017) (SR-NYSEArca-2017-51). --------------------------------------------------------------------------- The proposed changes are not otherwise intended to address any other issues, and the Exchange is not aware of any significant problems that market participants 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,\7\ in general, and furthers the objectives of Sections 6(b)(4) and (5) of the Act,\8\ 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. --------------------------------------------------------------------------- \7\ 15 U.S.C. 78f(b). \8\ 15 U.S.C. 78f(b)(4) and (5). --------------------------------------------------------------------------- The Exchange believes the proposed Tape A and Tape C Tier is reasonable and equitably allocated because it would apply to ETP Holders and Market Makers that provide liquidity in Tape A, Tape B and Tape C Securities to the Exchange and is designed to incentivize these market participants to increase the orders sent directly to the Exchange and therefore provide liquidity that supports the quality of price discovery and promotes market transparency. The Exchange believes the new Tape A and Tape C Tier is equitable because the proposed new tier would be available to all similarly situated ETP Holders and Market Makers on an equal basis and the proposed new tier provides a credit that is reasonably related to the value of an exchange's market quality associated with higher volumes. The Exchange currently provides a comparable credit for orders that provide liquidity in Tape B Securities to ETP Holders and Market Makers that meet the requirements of Tape B Tier 2 and with this proposed rule change, the Exchange would extend the availability of a similar credit to ETP Holders and Market Makers in Tape A and Tape C Securities. The Exchange further believes that the proposed Tape A and Tape C Tier is reasonable, equitable and not unfairly discriminatory because the Exchange has previously implemented pricing tiers that target a particular segment of securities. For example, to qualify for the Step Up Tier, ETP Holders and Market Makers are required to set a new NYSE Arca Best Bid or Offer with at least 25% in each of the ETP Holder's or Market Maker's Tape A, Tape B and Tape C providing ADV. The Exchange also believes that the requirement to execute providing volume in Tape A and Tape C Securities during the billing month that is at least 2 million shares ADV over the ETP Holder's and Market Maker's first quarter 2017 adding ADV in each of Tape A and Tape C Securities is reasonable as it would provide incentives for adding liquidity in Tape A and Tape C Securities and strengthen market quality in those securities. The Exchange further believes that the requirement to execute providing volume in Tape A and Tape C Securities for the proposed Tape A and Tape C Tier is equitable and not unfairly discriminatory because it would apply uniformly to all similarly situated ETP Holders and Market Makers. The Exchange believes that the proposed rule change regarding Tape A and Tape C credits would create an added incentive for ETP Holders and Market Makers to execute additional orders on the Exchange. The Exchange believes that the proposed change is equitable and not unfairly discriminatory because providing incentives for orders in exchange-listed securities that are executed on a registered national securities exchange (rather than relying on certain available off- exchange execution methods) would contribute to investors' confidence in the fairness of their transactions and would benefit all investors by deepening the Exchange's liquidity pool, supporting the quality of price discovery, promoting market transparency and improving investor protection. The Exchange believes that the non-substantive change to add the word ``directly'' in front of ``execute'' in current Tape C Tier 3 pricing tier removes impediments to and perfects the mechanism of a free and open market by providing clarity and adding transparency to the Exchange's rules. The Exchange believes the proposed amendment to the Fee Schedule is both reasonable and equitable because ETP Holders and Market Makers would benefit from clear guidance in the rule text describing the manner in which the Exchange's fees and credits would be assessed. Volume-based rebates and fees such as the ones currently in place on the Exchange, and as proposed herein, have been widely adopted in the cash equities markets and are equitable because they are open to all ETP Holders and Market Makers on an equal basis and provide additional benefits or discounts that are reasonably related to the value to an exchange's market quality associated with higher levels of market activity, such as higher levels of liquidity provision and/or growth patterns, and introduction of higher volumes of orders into the price and volume discovery processes. The Exchange believes that the proposed introduction of Tape A and Tape C Tier will provide such enhancements in market quality on the Exchange's equity [[Page 32913]] market by incentivizing increased participation. For the foregoing 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,\9\ 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. Instead, the Exchange believes that the addition of the proposed new credit would encourage the submission of additional liquidity to a public exchange, thereby promoting price discovery and transparency and enhancing order execution opportunities for ETP Holders and Market Makers. The Exchange believes that this could promote competition between the Exchange and other execution venues, including those that currently offer similar order types and comparable transaction pricing, by encouraging additional orders to be sent to the Exchange for execution. --------------------------------------------------------------------------- \9\ 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 if they deem fee levels at a particular venue to be excessive or rebate opportunities available at other venues to be more favorable. In such an environment, the Exchange must continually adjust its fees and rebates to remain competitive with other exchanges and with alternative trading systems that have been exempted from compliance with the statutory standards applicable to 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 Exchange believes that the degree to which fee changes in this market may impose any burden on competition is extremely limited. As a result of all of these considerations, the Exchange does not believe that the proposed changes will impair the ability of ETP Holders or competing order execution venues to maintain their competitive standing in the financial markets. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others No written comments were solicited or received with respect to the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing rule change is effective upon filing pursuant to Section 19(b)(3)(A)\10\ of the Act and subparagraph (f)(2) of Rule 19b- 4\11\ thereunder, because it establishes a due, fee, or other charge imposed by the Exchange. --------------------------------------------------------------------------- \10\ 15 U.S.C. 78s(b)(3)(A). \11\ 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) \12\ of the Act to determine whether the proposed rule change should be approved or disapproved. --------------------------------------------------------------------------- \12\ 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-2017-72 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-2017-72. 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-2017-72 and should be submitted on or before August 8, 2017. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\13\ --------------------------------------------------------------------------- \13\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Jill M. Peterson, Assistant Secretary. [FR Doc. 2017-14987 Filed 7-17-17; 8:45 am] BILLING CODE 8011-01-P
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100 F Street NE., Washington, DC compliance for the annual hour burden Securities and Exchange Commission
20549–0213 is as follows: [(2 legal hours × 12 months (the ‘‘Commission’’) the proposed rule
Extension: × $396) × 304] + [(3 compliance hours change as described in Items I, II, and
Rule 611; SEC File No. 270–540, OMB × 12 months × $349) × 304] = III below, which Items have been
Control No. 3235–0600 $6,708,672.2 prepared by the self-regulatory
Notice is hereby given that pursuant An agency may not conduct or organization. The Commission is
to the Paperwork Reduction Act of 1995 sponsor, and a person is not required to publishing this notice to solicit
(‘‘PRA’’) (44 U.S.C. 3501 et seq.), the respond to, a collection of information comments on the proposed rule change
Securities and Exchange Commission under the PRA unless it displays a from interested persons.
(‘‘Commission’’) has submitted to the currently valid OMB control number.
The public may view background I. Self-Regulatory Organization’s
Office of Management and Budget Statement of the Terms of Substance of
(‘‘OMB’’) a request for approval of documentation for this information
collection at the following Web site: the Proposed Rule Change
extension of the previously approved
collection of information provided for in www.reginfo.gov. Comments should be The Exchange proposes to amend the
Rule 611 (17 CFR 242.611). directed to (i) Desk Officer for the NYSE Arca Equities Schedule of Fees
On June 9, 2005, effective August 29, Securities and Exchange Commission, and Charges for Exchange Services
2005 (see 70 FR 37496, June 29, 2005), Office of Information and Regulatory (‘‘Fee Schedule’’) to adopt a new pricing
the Commission adopted Rule 611 of Affairs, Office of Management and tier, Tape A and Tape C Tier. The
Regulation NMS under the Securities Budget, Room 10102, New Executive Exchange proposes to implement the fee
Exchange Act of 1934 (15 U.S.C. 78a et Office Building, Washington, DC 20503 changes effective July 3, 2017. The
seq.) to require any national securities or by sending an email to: Shagufta_ proposed rule change is available on the
exchange, national securities Ahmed@omb.eop.gov; and (ii) Pamela Exchange’s Web site at www.nyse.com,
association, alternative trading system, Dyson, Director/Chief Information at the principal office of the Exchange,
exchange market maker, over-the- Officer, Securities and Exchange and at the Commission’s Public
counter market maker, and any other Commission, c/o Remi Pavlik-Simon, Reference Room.
broker-dealer that executes orders 100 F Street NE., Washington, DC
20549, or by sending an email to: PRA_ II. Self-Regulatory Organization’s
internally by trading as principal or Statement of the Purpose of, and
crossing orders as agent, to establish, Mailbox@sec.gov. Comments must be
submitted within 30 days of this notice. Statutory Basis for, the Proposed Rule
maintain, and enforce written policies Change
and procedures reasonably designed to Dated: July 11, 2017.
prevent the execution of a transaction in In its filing with the Commission, the
Jill M. Peterson,
its market at a price that is inferior to self-regulatory organization included
Assistant Secretary.
a bid or offer displayed in another statements concerning the purpose of,
[FR Doc. 2017–14970 Filed 7–17–17; 8:45 am] and basis for, the proposed rule change
market at the time of execution (a
BILLING CODE 8011–01–P and discussed any comments it received
‘‘trade-though’’), absent an applicable
exception and, if relying on an on the proposed rule change. The text
exception, that are reasonably designed of those statements may be examined at
SECURITIES AND EXCHANGE the places specified in Item IV below.
to assure compliance with the terms of COMMISSION
the exception. Without this collection of The Exchange has prepared summaries,
information, respondents would not [Release No. 34–81134; File No. SR– set forth in sections A, B, and C below,
have a means to enforce compliance NYSEARCA–2017–72] of the most significant parts of such
with the Commission’s intention to statements.
prevent trade-throughs pursuant to the Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and A. Self-Regulatory Organization’s
rule. Statement of the Purpose of, and the
There are approximately 304 Immediate Effectiveness of Proposed
Rule Change To Amend the NYSE Arca Statutory Basis for, the Proposed Rule
respondents 1 per year that will require
Equities Schedule of Fees and Change
an aggregate total of 18,240 hours to
comply with this rule. It is anticipated Charges for Exchange Services To 1. Purpose
that each respondent will continue to Adopt a New Pricing Tier, Tape A and
Tape C Tier The Exchange proposes to amend the
expend approximately 60 hours Fee Schedule, as described below, and
annually: Two hours per month of July 12, 2017. implement the fee changes on July 3,
internal legal time and three hours per Pursuant to Section 19(b)(1) 1 of the 2017.
month of internal compliance time to Securities Exchange Act of 1934 (the The Exchange proposes to introduce a
ensure that its written policies and ‘‘Act’’) 2 and Rule 19b–4 thereunder,3 new pricing tier—Tape A and Tape C
procedures are up-to-date and remain in notice is hereby given that, on June 30, Tier—for securities with a per share
compliance with Rule 611. The 2017, NYSE Arca, Inc. (the ‘‘Exchange’’ price of $1.00 or above.
estimated cost for an in-house attorney or ‘‘NYSE Arca’’) filed with the As proposed, a new Tape A and Tape
is $396 per hour and the estimated cost
C Tier credit of $0.0028 per share for
for an assistant compliance director in 2 The total cost of compliance for the annual hour
orders that provide liquidity in Tape A
the securities industry is $349 per hour. burden has been revised to reflect updated and Tape C Securities would be
Therefore the estimated total cost of estimated cost figures for an in-house attorney and
applicable to ETP Holders and Market
sradovich on DSK3GMQ082PROD with NOTICES
an assistant compliance director. These figures are
1 This estimate includes twelve national from SIFMA’s Management & Professional Earnings Makers, that, on a daily basis, measured
securities exchanges and one national securities in the Securities Industry 2017, modified by monthly, (1) directly execute providing
association that trade NMS stocks. The estimate Commission staff for an 1800-hour work-year and volume in Tape A Securities during the
also includes the approximately 255 firms that were multiplied by 5.35 to account for bonuses, firm size,
employee benefits, and overhead. billing month (‘‘Tape A Adding ADV’’)
registered equity market makers or specialists at
year-end 2015, as well as 36 alternative trading
1 15 U.S.C. 78s(b)(1). that is at least 2 million shares ADV
systems that operate trading systems that trade 2 15 U.S.C. 78a. over the ETP Holder’s or Market Maker’s
NMS stocks. 3 17 CFR 240.19b–4. first quarter 2017 Tape A Adding ADV,
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(2) directly execute providing volume in 2. Statutory Basis incentives for adding liquidity in Tape
Tape C Securities during the billing The Exchange believes that the A and Tape C Securities and strengthen
month (‘‘Tape C Adding ADV’’) that is proposed rule change is consistent with market quality in those securities. The
at least 2 million shares ADV over the Section 6(b) of the Act,7 in general, and Exchange further believes that the
ETP Holder’s or Market Maker’s first furthers the objectives of Sections requirement to execute providing
quarter 2017 Tape C Adding ADV, and volume in Tape A and Tape C Securities
6(b)(4) and (5) of the Act,8 in particular,
(3) meet the requirements of Tape B Tier for the proposed Tape A and Tape C
because it provides for the equitable
2.4 For example, if an ETP Holder’s Tier is equitable and not unfairly
allocation of reasonable dues, fees, and
Tape A Baseline during the first quarter discriminatory because it would apply
other charges among its members,
of 2017 was 5 million shares ADV and uniformly to all similarly situated ETP
issuers and other persons using its
the ETP Holder’s Tape C Baseline Holders and Market Makers.
facilities and does not unfairly The Exchange believes that the
during the first quarter of 2017 was 3 discriminate between customers,
million shares, the ETP Holder would proposed rule change regarding Tape A
issuers, brokers or dealers. and Tape C credits would create an
need a Tape A Adding ADV of at least The Exchange believes the proposed
7 million shares and a Tape C Adding added incentive for ETP Holders and
Tape A and Tape C Tier is reasonable Market Makers to execute additional
ADV of at least 5 million shares and and equitably allocated because it
meet the requirements of Tape B Tier 2 orders on the Exchange. The Exchange
would apply to ETP Holders and Market believes that the proposed change is
to qualify for the proposed credit of Makers that provide liquidity in Tape A,
$0.0028 per share in Tape A and Tape equitable and not unfairly
Tape B and Tape C Securities to the discriminatory because providing
C Securities in the billing month.5 Exchange and is designed to incentivize
For ETP Holders that qualify for the incentives for orders in exchange-listed
these market participants to increase the securities that are executed on a
proposed new Tape A and Tape C Tier, orders sent directly to the Exchange and
Tiered or Basic Rates would apply to all registered national securities exchange
therefore provide liquidity that supports (rather than relying on certain available
other fees and credits, based on the the quality of price discovery and
firm’s qualifying levels, and if an ETP off-exchange execution methods) would
promotes market transparency. The contribute to investors’ confidence in
Holder qualifies for more than one tier Exchange believes the new Tape A and
in the Fee Schedule, the Exchange the fairness of their transactions and
Tape C Tier is equitable because the would benefit all investors by
would apply the most favorable rate proposed new tier would be available to
available under such tiers. deepening the Exchange’s liquidity
all similarly situated ETP Holders and pool, supporting the quality of price
Additionally, the Exchange recently Market Makers on an equal basis and
adopted the Tape C Tier 3 pricing tier discovery, promoting market
the proposed new tier provides a credit transparency and improving investor
that references the applicability of a that is reasonably related to the value of
$0.0002 per share credit to ETP Holders protection.
an exchange’s market quality associated The Exchange believes that the non-
and Market Makers that qualify for that with higher volumes. The Exchange substantive change to add the word
pricing tier.6 The Exchange proposes to currently provides a comparable credit ‘‘directly’’ in front of ‘‘execute’’ in
make a non-substantive change to the for orders that provide liquidity in Tape current Tape C Tier 3 pricing tier
Tape C Tier 3 pricing tier by adding the B Securities to ETP Holders and Market removes impediments to and perfects
word ‘‘directly’’ in front of ‘‘execute’’ in Makers that meet the requirements of the mechanism of a free and open
the second prong of the pricing tier. The Tape B Tier 2 and with this proposed market by providing clarity and adding
proposed change is intended to provide rule change, the Exchange would extend transparency to the Exchange’s rules.
consistency within the pricing tier and the availability of a similar credit to ETP The Exchange believes the proposed
the Fee Schedule generally. The Holders and Market Makers in Tape A amendment to the Fee Schedule is both
Exchange is not proposing any other and Tape C Securities. reasonable and equitable because ETP
change to Tape C Tier 3. The Exchange further believes that the Holders and Market Makers would
The proposed changes are not proposed Tape A and Tape C Tier is benefit from clear guidance in the rule
otherwise intended to address any other reasonable, equitable and not unfairly text describing the manner in which the
issues, and the Exchange is not aware of discriminatory because the Exchange Exchange’s fees and credits would be
any significant problems that market has previously implemented pricing assessed.
participants would have in complying tiers that target a particular segment of Volume-based rebates and fees such
with the proposed changes. securities. For example, to qualify for as the ones currently in place on the
the Step Up Tier, ETP Holders and Exchange, and as proposed herein, have
4 Tape B Tier 2 requires that ETP Holders and
Market Makers are required to set a new been widely adopted in the cash
Market Makers on a daily basis, measured monthly,
directly execute providing volume that is either (1) NYSE Arca Best Bid or Offer with at equities markets and are equitable
equal to at least 1.0% of the US Tape B CADV or least 25% in each of the ETP Holder’s because they are open to all ETP
(2) equal to at least 0.20% of the US Tape B ADV or Market Maker’s Tape A, Tape B and Holders and Market Makers on an equal
[sic] for the billing month over the ETP Holder’s or basis and provide additional benefits or
Market Maker’s Q2 2015 Tape B Adding ADV taken
Tape C providing ADV.
as a percentage of Tape B CADV. See Tape B Tier The Exchange also believes that the discounts that are reasonably related to
2, Schedule of Fees. requirement to execute providing the value to an exchange’s market
5 The Exchange recognizes that a firm that
volume in Tape A and Tape C Securities quality associated with higher levels of
becomes an ETP Holder or Market Maker after the during the billing month that is at least market activity, such as higher levels of
Baseline Month [sic] would have a Tape A and liquidity provision and/or growth
sradovich on DSK3GMQ082PROD with NOTICES
Tape C Baseline ADV of zero. In this regard, a new 2 million shares ADV over the ETP
ETP Holder or Market Maker would need to have Holder’s and Market Maker’s first patterns, and introduction of higher
a Tape A Adding ADV and Tape C Adding ADV quarter 2017 adding ADV in each of volumes of orders into the price and
during the billing month of 2 million shares, in Tape A and Tape C Securities is volume discovery processes. The
addition to meeting the Tape B Tier 2 requirements, Exchange believes that the proposed
for the $0.0028 per share credit to apply. reasonable as it would provide
6 See Securities Exchange Act Release No. 80285 introduction of Tape A and Tape C Tier
[sic] (May 11, 2017), 82 FR 22687 (May 17, 2017) 7 15 U.S.C. 78f(b). will provide such enhancements in
(SR–NYSEArca–2017–51). 8 15 U.S.C. 78f(b)(4) and (5). market quality on the Exchange’s equity
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market by incentivizing increased III. Date of Effectiveness of the proposed rule change between the
participation. Proposed Rule Change and Timing for Commission and any person, other than
For the foregoing reasons, the Commission Action those that may be withheld from the
Exchange believes that the proposal is The foregoing rule change is effective public in accordance with the
consistent with the Act. upon filing pursuant to Section provisions of 5 U.S.C. 552, will be
19(b)(3)(A)10 of the Act and available for Web site viewing and
B. Self-Regulatory Organization’s printing in the Commission’s Public
Statement on Burden on Competition subparagraph (f)(2) of Rule 19b–411
thereunder, because it establishes a due, Reference Room, 100 F Street NE.,
In accordance with Section 6(b)(8) of fee, or other charge imposed by the Washington, DC 20549 on official
the Act,9 the Exchange believes that the Exchange. business days between the hours of
proposed rule change would not impose At any time within 60 days of the 10:00 a.m. and 3:00 p.m. Copies of the
any burden on competition that is not filing of such proposed rule change, the filing also will be available for
necessary or appropriate in furtherance Commission summarily may inspection and copying at the principal
of the purposes of the Act. Instead, the temporarily suspend such rule change if office of the Exchange. All comments
Exchange believes that the addition of it appears to the Commission that such received will be posted without change;
the proposed new credit would action is necessary or appropriate in the the Commission does not edit personal
encourage the submission of additional public interest, for the protection of identifying information from
liquidity to a public exchange, thereby investors, or otherwise in furtherance of submissions. You should submit only
promoting price discovery and the purposes of the Act. If the information that you wish to make
transparency and enhancing order Commission takes such action, the available publicly. All submissions
execution opportunities for ETP Holders Commission shall institute proceedings should refer to File Number SR–
and Market Makers. The Exchange under Section 19(b)(2)(B) 12 of the Act to NYSEARCA–2017–72 and should be
believes that this could promote determine whether the proposed rule submitted on or before August 8, 2017.
competition between the Exchange and change should be approved or For the Commission, by the Division of
other execution venues, including those disapproved. Trading and Markets, pursuant to delegated
that currently offer similar order types IV. Solicitation of Comments
authority.13
and comparable transaction pricing, by Jill M. Peterson,
encouraging additional orders to be sent Interested persons are invited to Assistant Secretary.
to the Exchange for execution. submit written data, views, and
[FR Doc. 2017–14987 Filed 7–17–17; 8:45 am]
The Exchange notes that it operates in arguments concerning the foregoing,
BILLING CODE 8011–01–P
a highly competitive market in which including whether the proposed rule
market participants can readily favor change is consistent with the Act.
competing venues if they deem fee Comments may be submitted by any of
the following methods: DEPARTMENT OF TRANSPORTATION
levels at a particular venue to be
excessive or rebate opportunities Electronic Comments Federal Highway Administration
available at other venues to be more
• Use the Commission’s Internet Environmental Impact Statement:
favorable. In such an environment, the
comment form (http://www.sec.gov/ DeRenne Avenue in Chatham County,
Exchange must continually adjust its
rules/sro.shtml); or Georgia
fees and rebates to remain competitive • Send an email to rule-comments@
with other exchanges and with sec.gov. Please include File Number SR– AGENCY: Federal Highway
alternative trading systems that have NYSEARCA–2017–72 on the subject Administration (FHWA), United States
been exempted from compliance with line. Department of Transportation (USDOT).
the statutory standards applicable to
Paper Comments ACTION: Notice of Intent.
exchanges. Because competitors are free
to modify their own fees and credits in • Send paper comments in triplicate SUMMARY: The FHWA is issuing this
response, and because market to Brent J. Fields, Secretary, Securities notice to advise the public that an EIS
participants may readily adjust their and Exchange Commission, 100 F Street will be prepared for proposed
order routing practices, the Exchange NE., Washington, DC 20549–1090. improvements along I–516/SR21/CS
believes that the degree to which fee All submissions should refer to File 1503/DeRenne Avenue. The project
changes in this market may impose any Number SR–NYSEARCA–2017–72. This would begin approximately 0.72 mile
burden on competition is extremely file number should be included on the west of Mildred Street and end west of
limited. As a result of all of these subject line if email is used. To help the the Harry S. Truman Parkway ramps at
considerations, the Exchange does not Commission process and review your DeRenne Avenue, for a project corridor
believe that the proposed changes will comments more efficiently, please use of approximately 2.6 miles.
impair the ability of ETP Holders or only one method. The Commission will FOR FURTHER INFORMATION CONTACT:
competing order execution venues to post all comments on the Commission’s Jennifer Giersch, Federal Highway
maintain their competitive standing in Internet Web site (http://www.sec.gov/ Administration, 61 Forsyth Street SW.,
the financial markets. rules/sro.shtml). Copies of the Suite 17T100, Atlanta, Georgia 30303,
C. Self-Regulatory Organization’s submission, all subsequent Telephone: (404) 562–3653, Email:
Statement on Comments on the amendments, all written statements jennifer.giersch@dot.gov.
sradovich on DSK3GMQ082PROD with NOTICES
Proposed Rule Change Received From with respect to the proposed rule David Moyer, P.E., Project Manager,
Members, Participants, or Others change that are filed with the Georgia Department of Transportation,
Commission, and all written 600 West Peachtree Street, 25th Floor,
No written comments were solicited communications relating to the Atlanta, Georgia 30308, Telephone:
or received with respect to the proposed (404) 631–1588, Email: dmoyer@
rule change. 10 15 U.S.C. 78s(b)(3)(A). dot.ga.gov.
11 17 CFR 240.19b–4(f)(2).
9 15 U.S.C. 78f(b)(8). 12 15 U.S.C. 78s(b)(2)(B). 13 17 CFR 200.30–3(a)(12).
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Document Created: 2018-10-24 11:24:21
Document Modified: 2018-10-24 11:24:21
| 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 32911 |
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