82 FR 33194 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the NYSE Arca Options Fee Schedule
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 137 (July 19, 2017)
Federal Register Volume 82, Issue 137 (July 19, 2017)
| Page Range | 33194-33197 | |
| FR Document | 2017-15101 |
[Federal Register Volume 82, Number 137 (Wednesday, July 19, 2017)] [Notices] [Pages 33194-33197] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-15101] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-81140; File No. SR-NYSEArca-2017-77] Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the NYSE Arca Options Fee Schedule July 13, 2017. Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given that, on July 10, 2017, NYSE Arca, Inc. (the ``Exchange'' or ``NYSE Arca'') filed with the Securities and Exchange Commission (the ``Commission'') the proposed rule change as described in Items I, II, and III below, which Items have been prepared by the self-regulatory organization. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 15 U.S.C. 78a. \3\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of the Substance of the Proposed Rule Change The Exchange proposes to amend the NYSE Arca Options Fee Schedule (``Fee Schedule''). The Exchange proposes to implement the fee change effective July 10, 2017.\4\ 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. --------------------------------------------------------------------------- \4\ The Exchange originally filed to amend the Fee Schedule on July 3, 2017 (SR-NYSEArca-2017-74) and withdrew such filing on July 10, 2017. --------------------------------------------------------------------------- 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 [[Page 33195]] 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 Statutory Basis for, the Proposed Rule Change 1. Purpose The purpose of this filing is to amend the Fee Schedule to offer an incentive for Market Makers to post liquidity in the SPDR S&P 500 ETF Trust (``SPY''). The Exchange also proposes a number of textual changes designed to clarify certain aspects of the Fee Schedule. Currently, Market Makers receive a $0.28 per contract credit for executions against Market Maker posted liquidity in Penny Pilot Issues and Lead Market Makers (``LMMs'') may receive an additional $.04 per contract credit (for a total of $0.32 per contract credit) for posted liquidity in Penny Pilot Issues that are in the LMM's appointment.\5\ Similarly, Market Makers may receive a $0.28 per contract credit for executions against Market Maker posted liquidity in SPY.\6\ The Exchange currently offers additional incentives (i.e., enhanced credits) to Market Makers to post liquidity.\7\ --------------------------------------------------------------------------- \5\ See Fee Schedule, Transaction Fee for Electronic Executions, Per Contract. See also Market Maker Monthly Posting Credit Tiers and Qualifications for Executions in Penny Pilot Issues and SPY (the ``MM Tiers''). \6\ See Fee Schedule, the MM Tiers, Base Rate. \7\ See id. See, e.g., the Market Maker Incentive for Penny Pilot Issues (which provides a $0.41 per contract credit for executions of Marker Maker posted interest provided the Market Maker achieves at least 0.75% of total industry Customer equity and ETF option average daily volume (``TCADV'') from Customer posted interest (e.g., from the Marker Maker's affiliate of Appointed Order Flow Provider) in all issues and an ADV from Market Maker posted interest equal to 0.70% of TCADV). --------------------------------------------------------------------------- The Exchange proposes to add a new incentive to encourage Market Makers to post interest in SPY. Specifically, the Exchange proposes to offer any Market Maker that has posted interest of at least 0.20% of TCADV in SPY during a calendar month, a per contract credit of $0.45 for electronic executions against such posted interest.\8\ As is the case today, a Market Maker that qualifies for more than one available credit will always receive the highest rebate applicable to a transaction. For example, a Market Maker that is eligible to receive both the $0.41 per contract credit via the Market Maker Incentive For Penny Pilot Issues as well as the proposed $0.45 per contract credit via the Market Maker Incentive for SPY would receive the latter (higher) credit. --------------------------------------------------------------------------- \8\ See proposed Fee Schedule, Market Maker Incentive for SPY (including reference to Endnote 8, which sets forth the calculations for monthly posting credits). --------------------------------------------------------------------------- The Exchange also proposes to make the following textual changes to the Fee Schedule regarding Market Maker incentives, which are designed to make the Fee Schedule easier to navigate and comprehend:The Exchange proposes to re-locate the reference to Endnote 15 from the beginning to the end of each of the following tables: The Market Maker Incentive For Penny Pilot Issues; the Market Maker Incentive For Non-Penny Pilot Issues; and the MM Tiers (collectively, the ``MM Tables''). Endnote 15 defines an Appointed Market Maker (``MM'') and an Appointed Order Flow Provider (``OFP''). The Exchange proposes to add a sentence to the beginning of Endnote 15 to make clear that the qualification thresholds set forth in the MM Tables ``[i]ncludes transaction volume from the OTP Holder's or OTP Firm's affiliates or its Appointed OFP or Appointed MM.'' \9\ Consistent with this proposed change, the Exchange proposes to remove the language that appears at the end of each of the MM Tables providing that volume of an Appointed MM or Appointed OFP may be included because it would be duplicative of the proposed new next in Endnote 15. --------------------------------------------------------------------------- \9\ See proposed Fee Schedule, Endnote 15. --------------------------------------------------------------------------- The Exchange proposes to modify Endnote 8 to define Total Industry Customer equity and ETF option average daily volume as ``TCADV'' and to use this shorthand reference in each of the MM Tables. The Exchange proposes to clarify how the credit for each of the MM Tables is applied, i.e., that it is applied to ``electronic executions of Market Maker posted interest'' in the applicable securities. Consistent with this change, the Exchange proposes to delete the current language that provides the credit is applied to ``Posted Electronic Market Maker Executions'' in the applicable securities. In each of the MM Tables, the Exchange proposes to replace reference to ``Posted Orders'' with ``posted interest'' and ``orders'' with ``interest'' to make clear that, where applicable, liquidity may include orders or quotes. In the fee table for Market Maker Incentive for Penny Pilot Issues, the Exchange proposes to replace reference to ``both Penny and Non-Penny Issues'' with ``all issues.'' For consistency, the Exchange proposes to remove the capitalization from ``Non-Penny,'' as appears in the Market Maker Incentive For Non-Penny Pilot Issues, and to remove any capitalization from ``all' and ``issues'' in reference to ``all issues'' in the MM Tables. For ease of reference, the Exchange proposes to rename the Market Maker Monthly Posting Credit Tiers and Qualifications for Executions in Penny Pilot Issues and SPY (i.e., the MM Tiers) to ``MARKET MAKER PENNY PILOT AND SPY POSTING CREDIT TIERS,'' and to add the following preamble, followed by reference to Endnotes 8 and 15 (as modified herein): ``OTP Holders and OTP Firms meeting the qualifications below will receive the corresponding credit on electronic executions of Market Maker posted interest in Penny Pilot issues and SPY.'' The Exchange also proposes to update a cross reference to the MM Tiers to reflect the modified name.\10\ --------------------------------------------------------------------------- \10\ See proposed Fee Schedule, Transaction Fee for Electronic Executions, Per Contract. --------------------------------------------------------------------------- 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with Section 6(b) of the Act,\11\ in general, and furthers the objectives of Sections 6(b)(4) and (5) of the Act,\12\ 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. --------------------------------------------------------------------------- \11\ 15 U.S.C. 78f(b). \12\ 15 U.S.C. 78f(b)(4) and (5). --------------------------------------------------------------------------- The Exchange believes that providing an enhanced incentive for executions against posted liquidity in SPY is reasonable, equitable, and not unfairly discriminatory because, among other things, it may encourage greater participation in SPY--which is consistently the most active options issue nationally. The proposed SPY incentive would also provide an additional means for Market Makers to qualify for credits for posting volume on the Exchange. By encouraging activity in SPY, the Exchange believes that opportunities to qualify for other rebates are increased, which benefits all participants through increased Market Maker activity. The Exchange also believes that encouraging a higher level of trading volume in SPY should increase opportunities for OTP Holders and OTP Firms (``OTPs'') to achieve credits available through existing incentive programs, such as the MM [[Page 33196]] Tiers, which provides OTPs the ability to achieve per contract credit for electronic executions of posted Market Maker interest in SPY and other Penny Pilot names by combining the volume of the OTP with volume of their affiliates or Appointed Market Maker. To the extent that order flow, which adds liquidity, is increased by the proposal, OTPs will be encouraged to compete for the opportunity to trade on the Exchange, including by sending additional order flow to the Exchange to achieve higher tiers or enhanced rebates. The resulting increased volume and liquidity would benefit all Exchange participants by providing more trading opportunities and tighter spreads. The Exchange also believes the proposed SPY incentive is not unfairly discriminatory to non-Market Markers (i.e., Customers, Professionals Customers, Firms and Broker-Dealers) because such market participants are not subject to the obligations that apply to Market Makers. The Exchange believes the proposed incentive is reasonable, equitable and not unfairly discriminatory because encouraging Market Makers to direct more volume to the Exchange would also contribute to the Exchange's depth of book as well as to the top of book liquidity. The Exchange also notes that the proposed credit for posting in SPY is reasonable, equitable, and not unfairly discriminatory as it is consistent with credits offered to Market Makers by other options exchanges.\13\ --------------------------------------------------------------------------- \13\ See, e.g., MIAX Pearl Fee Schedule, Section 1.a., Transaction Rebates/Fees, Exchange Rebates/Fees--Add/Remove Tiered Rebates/Fees, available here, http://www.miaxoptions.com/sites/default/files/page-files/MIAX_PEARL_Fee_Schedule_06072017.pdf (providing an alternative basis to achieve a $0.47 per contract credit in Penny Pilot Issues based on a specified level of SPY volume). --------------------------------------------------------------------------- The Exchange believes that the proposed textual modifications are reasonable, equitable, and not unfairly discriminatory because the proposed changes would add clarity, transparency and internal consistency to the Fee Schedule making it easier to navigate and comprehend, which is in the public interest. For these reasons, the Exchange believes that the proposal is consistent with the Act. B. Self-Regulatory Organization's Statement on Burden on Competition In accordance with Section 6(b)(8) of the Act,\14\ the Exchange does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. Instead, the Exchange believes that the proposed changes would encourage competition, including by attracting additional liquidity to the Exchange, which would continue to make the Exchange a more competitive venue for, among other things, order execution and price discovery. The Exchange does not believe that the proposed change would impair the ability of any market participants or competing order execution venues to maintain their competitive standing in the financial markets. Further, the incentive would not impose an unfair burden on non-Market Markers because such market participants are not subject to the heightened obligations that apply to Market Makers. The Exchanges notes that the proposed textual changes are not intended to have any impact on competition, but instead are designed to make the Fee Schedule easier for market participants to navigate and digest, which is in the public interest. --------------------------------------------------------------------------- \14\ 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) \15\ of the Act and subparagraph (f)(2) of Rule 19b-4 \16\ thereunder, because it establishes a due, fee, or other charge imposed by the Exchange. --------------------------------------------------------------------------- \15\ 15 U.S.C. 78s(b)(3)(A). \16\ 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) \17\ of the Act to determine whether the proposed rule change should be approved or disapproved. --------------------------------------------------------------------------- \17\ 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 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-2017-77 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-2017-77. This file number should be included on the subject line if email is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for Web site viewing and printing in the Commission's Public Reference Room, 100 F Street NE., Washington, DC 20549 on official business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of such filing also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR- [[Page 33197]] NYSEArca-2017-77, and should be submitted on or before August 9, 2017. --------------------------------------------------------------------------- \18\ 17 CFR 200.30-3(a)(12). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\18\ Jill M. Peterson, Assistant Secretary. [FR Doc. 2017-15101 Filed 7-18-17; 8:45 am] BILLING CODE 8011-01-P
![33194 Federal Register / Vol. 82, No. 137 / Wednesday, July 19, 2017 / Notices
proposed rule change would promote temporarily suspend such rule change if should refer to File Number SR–
fair and orderly markets that would it appears to the Commission that such NYSEArca–2017–73 and should be
protect investors and the public interest action is necessary or appropriate in the submitted on or before August 9, 2017.
because it would promote the display of public interest, for the protection of For the Commission, by the Division of
liquidity by ensuring that a displayed investors, or otherwise in furtherance of Trading and Markets, pursuant to delegated
odd lot order maintains its ranking even the purposes of the Act. If the authority.15
if it trades at a less aggressive price. Commission takes such action, the Jill M. Peterson,
The Exchange further believes that the Commission shall institute proceedings Assistant Secretary.
proposed rule change would remove to determine whether the proposed rule
[FR Doc. 2017–15102 Filed 7–18–17; 8:45 am]
impediments to and perfect the should be approved or disapproved.
BILLING CODE 8011–01–P
mechanism of a free and open market
and a national market system because it IV. Solicitation of Comments
would promote transparency in Interested persons are invited to
submit written data, views, and SECURITIES AND EXCHANGE
Exchange rules and reduce potential
arguments concerning the foregoing, COMMISSION
confusion regarding how an odd-lot
order would be ranked and execute [sic] including whether the proposed rule [Release No. 34–81140; File No. SR–
in the limited scenario when the display change is consistent with the Act. NYSEArca–2017–77]
price of a resting odd lot has been Comments may be submitted by any of
crossed, and it has been assigned a the following methods: Self-Regulatory Organizations; NYSE
working price inferior to its display Arca, Inc.; Notice of Filing and
Electronic Comments Immediate Effectiveness of Proposed
price.
• Use the Commission’s Internet Rule Change To Amend the NYSE Arca
B. Self-Regulatory Organization’s comment form (http://www.sec.gov/ Options Fee Schedule
Statement on Burden on Competition rules/sro.shtml); or
The Exchange does not believe that • Send an email to rule-comments@ July 13, 2017.
the proposed rule change will impose sec.gov. Please include File Number SR– Pursuant to Section 19(b)(1) 1 of the
any burden on competition that is not NYSEArca–2017–73 on the subject line. Securities Exchange Act of 1934 (the
necessary or appropriate in furtherance ‘‘Act’’) 2 and Rule 19b–4 thereunder,3
Paper Comments notice is hereby given that, on July 10,
of the purposes of the Act. The
Exchange believes that the proposed • Send paper comments in triplicate 2017, NYSE Arca, Inc. (the ‘‘Exchange’’
rule change is not designed to address to Brent J. Fields, Secretary, Securities or ‘‘NYSE Arca’’) filed with the
any competitive issues but rather to and Exchange Commission, 100 F Street Securities and Exchange Commission
provide an incentive for market NE., Washington, DC 20549–1090. (the ‘‘Commission’’) the proposed rule
participants to enter aggressively-priced All submissions should refer to File change as described in Items I, II, and
displayed liquidity. Number SR–NYSEArca–2017–73. This III below, which Items have been
file number should be included on the prepared by the self-regulatory
C. Self-Regulatory Organization’s subject line if email is used. To help the organization. The Commission is
Statement on Comments on the Commission process and review your publishing this notice to solicit
Proposed Rule Change Received From comments more efficiently, please use comments on the proposed rule change
Members, Participants, or Others only one method. The Commission will from interested persons.
No written comments were solicited post all comments on the Commission’s
or received with respect to the proposed Internet Web site (http://www.sec.gov/ I. Self-Regulatory Organization’s
rule change. rules/sro.shtml). Copies of the Statement of the Terms of the Substance
submission, all subsequent of the Proposed Rule Change
III. Date of Effectiveness of the
amendments, all written statements The Exchange proposes to amend the
Proposed Rule Change and Timing for
with respect to the proposed rule NYSE Arca Options Fee Schedule (‘‘Fee
Commission Action
change that are filed with the Schedule’’). The Exchange proposes to
Because the foregoing proposed rule Commission, and all written implement the fee change effective July
change does not: (i) Significantly affect communications relating to the 10, 2017.4 The proposed rule change is
the protection of investors or the public proposed rule change between the available on the Exchange’s Web site at
interest; (ii) impose any significant Commission and any person, other than www.nyse.com, at the principal office of
burden on competition; and (iii) become those that may be withheld from the the Exchange, and at the Commission’s
operative for 30 days from the date on public in accordance with the Public Reference Room.
which it was filed, or such shorter time provisions of 5 U.S.C. 552, will be
as the Commission may designate, it has II. Self-Regulatory Organization’s
available for Web site viewing and
become effective pursuant to Section Statement of the Purpose of, and
printing in the Commission’s Public
19(b)(3)(A) of the Act 13 and Rule 19b– Statutory Basis for, the Proposed Rule
Reference Room, 100 F Street NE.,
4(f)(6) thereunder.14 Change
Washington, DC 20549 on official
At any time within 60 days of the business days between the hours of In its filing with the Commission, the
filing of the proposed rule change, the 10:00 a.m. and 3:00 p.m. Copies of the self-regulatory organization included
Commission summarily may statements concerning the purpose of,
asabaliauskas on DSKBBXCHB2PROD with NOTICES
filing also will be available for
inspection and copying at the principal and basis for, the proposed rule change
13 15 U.S.C. 78s(b)(3)(A).
14 17 CFR 240.19b–4(f)(6). As required under Rule
office of the Exchange. All comments
15 17 CFR 200.30–3(a)(12).
19b–4(f)(6)(iii), the Exchange provided the received will be posted without change;
1 15 U.S.C. 78s(b)(1).
Commission with written notice of its intent to file the Commission does not edit personal 2 15 U.S.C. 78a.
the proposed rule change, along with a brief identifying information from 3 17 CFR 240.19b–4.
description and the text of the proposed rule
change, at least five business days prior to the date
submissions. You should submit only 4 The Exchange originally filed to amend the Fee
of filing of the proposed rule change, or such information that you wish to make Schedule on July 3, 2017 (SR–NYSEArca–2017–74)
shorter time as designated by the Commission. available publicly. All submissions and withdrew such filing on July 10, 2017.
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and discussed any comments it received both the $0.41 per contract credit via the • For consistency, the Exchange
on the proposed rule change. The text Market Maker Incentive For Penny Pilot proposes to remove the capitalization
of those statements may be examined at Issues as well as the proposed $0.45 per from ‘‘Non-Penny,’’ as appears in the
the places specified in Item IV below. contract credit via the Market Maker Market Maker Incentive For Non-Penny
The Exchange has prepared summaries, Incentive for SPY would receive the Pilot Issues, and to remove any
set forth in sections A, B, and C below, latter (higher) credit. capitalization from ‘‘all’ and ‘‘issues’’ in
of the most significant parts of such The Exchange also proposes to make reference to ‘‘all issues’’ in the MM
statements. the following textual changes to the Fee Tables.
Schedule regarding Market Maker • For ease of reference, the Exchange
A. Self-Regulatory Organization’s incentives, which are designed to make proposes to rename the Market Maker
Statement of the Purpose of, and the Fee Schedule easier to navigate and Monthly Posting Credit Tiers and
Statutory Basis for, the Proposed Rule comprehend: Qualifications for Executions in Penny
Change • The Exchange proposes to re-locate Pilot Issues and SPY (i.e., the MM Tiers)
1. Purpose the reference to Endnote 15 from the to ‘‘MARKET MAKER PENNY PILOT
beginning to the end of each of the AND SPY POSTING CREDIT TIERS,’’
The purpose of this filing is to amend
following tables: The Market Maker and to add the following preamble,
the Fee Schedule to offer an incentive
Incentive For Penny Pilot Issues; the followed by reference to Endnotes 8 and
for Market Makers to post liquidity in
Market Maker Incentive For Non-Penny 15 (as modified herein): ‘‘OTP Holders
the SPDR S&P 500 ETF Trust (‘‘SPY’’).
Pilot Issues; and the MM Tiers and OTP Firms meeting the
The Exchange also proposes a number
(collectively, the ‘‘MM Tables’’). qualifications below will receive the
of textual changes designed to clarify
Endnote 15 defines an Appointed corresponding credit on electronic
certain aspects of the Fee Schedule.
Currently, Market Makers receive a Market Maker (‘‘MM’’) and an executions of Market Maker posted
$0.28 per contract credit for executions Appointed Order Flow Provider interest in Penny Pilot issues and SPY.’’
against Market Maker posted liquidity (‘‘OFP’’). The Exchange also proposes to update a
in Penny Pilot Issues and Lead Market • The Exchange proposes to add a cross reference to the MM Tiers to
Makers (‘‘LMMs’’) may receive an sentence to the beginning of Endnote 15 reflect the modified name.10
additional $.04 per contract credit (for a to make clear that the qualification
thresholds set forth in the MM Tables 2. Statutory Basis
total of $0.32 per contract credit) for
posted liquidity in Penny Pilot Issues ‘‘[i]ncludes transaction volume from the The Exchange believes that the
that are in the LMM’s appointment.5 OTP Holder’s or OTP Firm’s affiliates or proposed rule change is consistent with
Similarly, Market Makers may receive a its Appointed OFP or Appointed MM.’’ 9 Section 6(b) of the Act,11 in general, and
$0.28 per contract credit for executions Consistent with this proposed change, furthers the objectives of Sections
against Market Maker posted liquidity the Exchange proposes to remove the 6(b)(4) and (5) of the Act,12 in particular,
in SPY.6 The Exchange currently offers language that appears at the end of each because it provides for the equitable
additional incentives (i.e., enhanced of the MM Tables providing that volume allocation of reasonable dues, fees, and
credits) to Market Makers to post of an Appointed MM or Appointed OFP other charges among its members,
liquidity.7 may be included because it would be issuers and other persons using its
The Exchange proposes to add a new duplicative of the proposed new next in facilities and does not unfairly
incentive to encourage Market Makers to Endnote 15. discriminate between customers,
post interest in SPY. Specifically, the • The Exchange proposes to modify issuers, brokers or dealers.
Exchange proposes to offer any Market Endnote 8 to define Total Industry The Exchange believes that providing
Maker that has posted interest of at least Customer equity and ETF option an enhanced incentive for executions
0.20% of TCADV in SPY during a average daily volume as ‘‘TCADV’’ and against posted liquidity in SPY is
calendar month, a per contract credit of to use this shorthand reference in each reasonable, equitable, and not unfairly
$0.45 for electronic executions against of the MM Tables. discriminatory because, among other
such posted interest.8 As is the case • The Exchange proposes to clarify things, it may encourage greater
today, a Market Maker that qualifies for how the credit for each of the MM participation in SPY—which is
more than one available credit will Tables is applied, i.e., that it is applied consistently the most active options
always receive the highest rebate to ‘‘electronic executions of Market issue nationally. The proposed SPY
applicable to a transaction. For example, Maker posted interest’’ in the applicable incentive would also provide an
a Market Maker that is eligible to receive securities. Consistent with this change, additional means for Market Makers to
the Exchange proposes to delete the qualify for credits for posting volume on
5 See Fee Schedule, Transaction Fee for current language that provides the credit the Exchange. By encouraging activity
Electronic Executions, Per Contract. See also is applied to ‘‘Posted Electronic Market in SPY, the Exchange believes that
Market Maker Monthly Posting Credit Tiers and Maker Executions’’ in the applicable opportunities to qualify for other rebates
Qualifications for Executions in Penny Pilot Issues securities.
and SPY (the ‘‘MM Tiers’’). are increased, which benefits all
6 See Fee Schedule, the MM Tiers, Base Rate.
• In each of the MM Tables, the participants through increased Market
7 See id. See, e.g., the Market Maker Incentive for Exchange proposes to replace reference Maker activity. The Exchange also
Penny Pilot Issues (which provides a $0.41 per to ‘‘Posted Orders’’ with ‘‘posted believes that encouraging a higher level
contract credit for executions of Marker Maker interest’’ and ‘‘orders’’ with ‘‘interest’’ to of trading volume in SPY should
asabaliauskas on DSKBBXCHB2PROD with NOTICES
posted interest provided the Market Maker achieves make clear that, where applicable,
at least 0.75% of total industry Customer equity and increase opportunities for OTP Holders
ETF option average daily volume (‘‘TCADV’’) from
liquidity may include orders or quotes. and OTP Firms (‘‘OTPs’’) to achieve
Customer posted interest (e.g., from the Marker • In the fee table for Market Maker credits available through existing
Maker’s affiliate of Appointed Order Flow Provider) Incentive for Penny Pilot Issues, the incentive programs, such as the MM
in all issues and an ADV from Market Maker posted Exchange proposes to replace reference
interest equal to 0.70% of TCADV).
8 See proposed Fee Schedule, Market Maker
to ‘‘both Penny and Non-Penny Issues’’ 10 See proposed Fee Schedule, Transaction Fee
Incentive for SPY (including reference to Endnote with ‘‘all issues.’’ for Electronic Executions, Per Contract.
11 15 U.S.C. 78f(b).
8, which sets forth the calculations for monthly
posting credits). 9 See proposed Fee Schedule, Endnote 15. 12 15 U.S.C. 78f(b)(4) and (5).
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NYSEArca–2017–77, and should be Oneida, Orleans, Otsego, Rensselaer, on Pool Certificates. A Pool Certificate
submitted on or before August 9, 2017. Saratoga, Schenectady, Schoharie, represents a fractional undivided
For the Commission, by the Division of Suffolk, Sullivan, Tioga, Tompkins, interest in a ‘‘Pool,’’ which is an
Trading and Markets, pursuant to delegated Ulster. aggregation of SBA guaranteed portions
authority.18 The Interest Rates are: of loans made by SBA Lenders under
Jill M. Peterson, section 7(a) of the Small Business Act,
Assistant Secretary. Percent 15 U.S.C. 636(a). In order to support the
[FR Doc. 2017–15101 Filed 7–18–17; 8:45 am]
timely payment guaranty requirement,
For Physical Damage:
Non-Profit Organizations with Credit
SBA established the Master Reserve
BILLING CODE 8011–01–P
Available Elsewhere ......................... 2.500 Fund (‘‘MRF’’), which serves as a
Non-Profit Organizations without Cred- mechanism to cover the cost of SBA’s
it Available Elsewhere ...................... 2.500 timely payment guaranty. Borrower
SMALL BUSINESS ADMINISTRATION For Economic Injury:
payments on the guaranteed portions of
Non-Profit Organizations without Cred-
[Disaster Declaration #15207 and #15208; it Available Elsewhere ...................... 2.500 pooled loans, as well as SBA guaranty
NEW YORK Disaster # NY–00177] payments on defaulted pooled loans, are
The number assigned to this disaster deposited into the MRF. Funds are held
Presidential Declaration of a Major for physical damage is 15207B and for in the MRF until distributions are made
Disaster for Public Assistance Only for economic injury is 15208B. to investors (‘‘Registered Holders’’) of
the State of New York Pool Certificates. The interest earned on
(Catalog of Federal Domestic Assistance
AGENCY: U.S. Small Business Number 59008) the borrower payments and the SBA
Administration. guaranty payments deposited into the
Lisa Lopez-Suarez, MRF supports the timely payments
ACTION: Notice. Acting Associate Administrator for Disaster made to Registered Holders.
Assistance. To facilitate the formation of SBA
SUMMARY: This is a Notice of the
[FR Doc. 2017–15076 Filed 7–18–17; 8:45 am] loan Pools and to enhance the
Presidential declaration of a major
disaster for Public Assistance Only for BILLING CODE 8025–01–P marketability of the SBA Secondary
the State of New York (FEMA–4322– Market (as defined in 13 CFR 120.601),
DR), dated 07/12/2017. SBA allows loans with different
SMALL BUSINESS ADMINISTRATION maturity dates to be placed in the same
Incident: Severe Winter Storm and
Snowstorm. Notice of Changes to SBA Secondary Pool. From time to time, SBA provides
Incident Period: 03/14/2017 through Market Program instruction to SBA Pool Assemblers on
03/15/2017. the required loan and pool
DATES: Issued on July 12, 2017. AGENCY: U.S. Small Business characteristics necessary to form a Pool.
Physical Loan Application Deadline Administration (‘‘SBA’’). These characteristics include, among
Date: 09/11/2017. SUMMARY: The purpose of this Notice is other things, the minimum number of
Economic Injury (Eidl) Loan to provide the public with notification guaranteed portions of loans required to
Application Deadline Date: 04/12/2018. of program changes to SBA’s Secondary form a Pool, the allowable difference
Market Loan Pooling Program. The between the highest and lowest gross
ADDRESSES: Submit completed loan
changes described in this Notice are and net note rates of the guaranteed
applications to: U.S. Small Business portions of loans in a Pool, and the
Administration, Processing and being made to ensure that there are
sufficient funds to cover the estimated minimum maturity ratio of the
Disbursement Center, 14925 Kingsport guaranteed portions of loans in a Pool.
Road, Fort Worth, TX 76155. cost of the timely payment guaranty for
newly formed SBA 7(a) loan pools. The The minimum maturity ratio is equal to
FOR FURTHER INFORMATION CONTACT: the ratio of the shortest and the longest
changes in this Notice will be
A. Escobar, Office of Disaster incorporated, as needed, into the SBA remaining term to maturity of the
Assistance, U.S. Small Business Secondary Market Program Guide, and guaranteed portions of loans in a Pool.
Administration, 409 3rd Street SW., all other appropriate SBA Secondary In November of 2008, SBA published
Suite 6050, Washington, DC 20416, Market documents. changes to the regulations governing
(202) 205–6734. SBA’s Secondary Market to allow SBA
DATES: The changes in this Notice will
SUPPLEMENTARY INFORMATION: Notice is Pool Assemblers to form and initiate the
apply to SBA 7(a) loan pools with an
hereby given that as a result of the issue date on or after October 1, 2017. sale of Weighted Average Coupon
President’s major disaster declaration on (WAC) Pools. See 73 FR 67099,
ADDRESSES: Address comments
07/12/2017, Private Non-Profit November 13, 2008. A WAC Pool is a
organizations that provide essential concerning this Notice to John M. Wade,
Chief Secondary Market Division, U.S. Pool where the interest rate payable to
services of governmental nature may file the Registered Holder is equal to the
disaster loan applications at the address Small Business Administration, 409 3rd
Street SW., Washington, DC 20416, or Dollar-Weighted Average Net Rate of the
listed above or other locally announced Pool (as defined in 13 CFR 120.600(l)).
locations. john.wade@sba.gov.
All other Pools formed by SBA Pool
The following areas have been FOR FURTHER INFORMATION CONTACT: John
Assemblers are considered Standard
determined to be adversely affected by M. Wade, Chief, Secondary Market
asabaliauskas on DSKBBXCHB2PROD with NOTICES
Pools. The minimum maturity ratio for
the disaster: Division, U.S. Small Business Standard Pools and WAC Pools is
Administration, 409 3rd Street SW., currently 80% and 76%, respectively.
Primary Counties: Albany, Broome,
Washington, DC 20416, or john.wade@ The minimum maturity ratio for
Chenango, Clinton, Columbia,
sba.gov. Standard Pools was last adjusted by
Cortland, Delaware, Dutchess, Essex,
Franklin, Fulton, Greene, Hamilton, SUPPLEMENTARY INFORMATION: The SBA in 2005. The minimum maturity
Herkimer, Madison, Montgomery, Secondary Market Improvements Act of ratio for WAC Pools was established by
1984 authorized SBA to guaranty the SBA in 2008 and has remained
18 17 CFR 200.30–3(a)(12). timely payment of principal and interest unchanged.
VerDate Sep<11>2014 18:49 Jul 18, 2017 Jkt 241001 PO 00000 Frm 00158 Fmt 4703 Sfmt 4703 E:\FR\FM\19JYN1.SGM 19JYN1](https://thefederalregister.org/doc/82_FR_33331/page/4.svg)
Document Created: 2017-07-19 06:17:39
Document Modified: 2017-07-19 06:17:39
| 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 33194 |
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