82 FR 39921 - Self-Regulatory Organizations; NYSE American LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Modify the NYSE American Options Fee Schedule

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 161 (August 22, 2017)

Page Range		39921-39923
FR Document		2017-17684
Federal Register, Volume 82 Issue 161 (Tuesday, August 22, 2017)
[Federal Register Volume 82, Number 161 (Tuesday, August 22, 2017)]
[Notices]
[Pages 39921-39923]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-17684]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-81408; File No. SR-NYSEAMER-2017-04]


Self-Regulatory Organizations; NYSE American LLC; Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change To Modify 
the NYSE American Options Fee Schedule

August 16, 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 August 1, 2017, NYSE American LLC (the ``Exchange'' or 
``NYSE American'') 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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of the 
Substance of the Proposed Rule Change

    The Exchange proposes to modify the NYSE American Options Fee 
Schedule (``Fee Schedule''). The Exchange proposes to implement the fee 
change effective August 1, 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,

[[Page 39922]]

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 effective 
August 1, 2017. Specifically, the Exchange proposes to modify the fees 
for Firm Electronic transactions in Penny Pilot issues, and to offer an 
incentive for ATP Holders to electronically transact business of 
Broker-Dealers, Firms, Non-NYSE American Market Makers, and 
Professional Customers (``Non Customer/Non Market Maker Interest'') on 
the Exchange.
    Currently, the Exchange charges $0.42 per contract for Electronic 
executions in Penny Pilot issues that clear in the Firm range. The 
Exchange proposes to modify that fee to $0.47, which is similar to 
transaction charges fees paid on other exchanges.\4\ The Exchange does 
not propose to alter the per contract fee of $0.75 for Electronic 
executions in Non-Penny Pilot issues that clear in the Firm range.
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    \4\ See, e.g., MIAX Options Exchange (``MIAX'') fee schedule, 
available here, https://www.miaxoptions.com/sites/default/files/fee_schedule-files/MIAX_Options_Fee_Schedule_06302017.pdf (charging 
$0.47 per contract for electronic executions in Penny Pilot Issues 
that clear in the Firm range); NASDAQ PHLX LLC (``PHLX'') Pricing 
Schedule, available here, http://www.nasdaqtrader.com/Micro.aspx?id=phlxpricing (charging $0.48 per contract for 
electronic executions in Penny Pilot Issues that clear in the Firm 
range).
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    Additionally, the Exchange proposes to offer reduced fees to 
encourage ATP Holders to transact additional Non Customer/Non Market 
Maker Interest on the Exchange.\5\ Specifically, the Exchange proposes 
to charge a reduced per contract rate on Electronic executions of $0.36 
per contract for Penny Pilot Issues, and $0.60 per contract for Non-
Penny Pilot Issues, to ATP Holders that transact at least 0.05% of 
TCADV above that ATP Holder's 2nd Quarter 2017 Non-Customer, Non-Market 
Maker Interest.\6\ However, the Exchange would exclude from this TCADV 
calculation Electronic executions in the following: CUBE, QCC, Strategy 
Executions, and any ``Routed Volume,'' i.e., any volume attributable to 
orders routed to another exchange in connection with the Options Order 
Protection and Locked/Crossed Market Plan referenced in Rule 991NY. The 
Exchange notes that this proposed rate is comparable to pricing 
incentives offered on other options exchanges, including MIAX.\7\
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    \5\ See proposed note 8 to Section I.A. (Options Transactions 
and Credits, Rates for Options transactions) of the Fee Schedule. 
The Exchange notes that executions via the BOLD Mechanism would be 
included in the TCADV calculation.
    \6\ Currently, the Exchange charges ATP Holders transacting Non-
Customer/Non-Market Maker Interest (excluding Firms) a per contract 
rate of $0.50 per contract for Penny Pilot Issues, and $0.75 per 
contract for Non-Penny Pilot Issues. The Exchange does not propose 
to alter these base rates.
    \7\ See supra note 4, MIAX fee schedule, Section (1)(a)(iv) 
(providing a per contract credit for certain orders executed on the 
exchange, provided the Member achieves certain ``Professional'' 
volume increase percentage thresholds in the month relative to a 
baseline period, which credits result in a per-contract rates [sic] 
similar to the Exchange's proposal). MIAX similarly excludes from 
this calculation certain volumes, including executions in price 
improvement auctions, QCCs, as well as Routed Volume. The following 
are considered ``Professional'' interest on MIAX: Public Customers, 
that are not Priority Customers; non-MIAX Options Market Makers; 
non-Member Broker-Dealers; or Firms.
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act,\8\ in general, and furthers the 
objectives of Sections 6(b)(4) and (5) of the Act,\9\ 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.
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    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(4) and (5).
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    The Exchange believes the proposed increased fee for Firm 
Electronic transactions in Penny Pilot Issues is reasonable as it is 
competitive with rates changes by other options exchanges for Firm 
transactions.\10\
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    \10\ See supra note 4.
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    The Exchange believes that the proposed reduced fees for Non-
Customer/Non-Market Maker Interest executed on the Exchange are fair, 
equitable and not unreasonably discriminatory. The Exchange believes 
the proposed reduced rates are reasonably designed to encourage ATP 
Holders that transact Non-Customer/Non-Market Maker Interest to direct 
this order flow to the Exchange. To the extent this goal is achieved, 
the Exchange would improve its overall competitiveness and strengthen 
its market quality for all market participants. The proposed rates are 
fair and equitable and not unreasonably discriminatory because they 
apply equally to all ATP Holders that transact Non-Customer/Non-Market 
Maker Interest. In addition, the proposed changes are equitable and not 
unfairly discriminatory because, while only Non-Customer/Non-Market 
Maker Interest qualifies for the reduced fees, any increase in this 
type of order flow would attract greater volume and liquidity of all 
account type [sic] to the Exchange, which benefit all market 
participants by providing more trading opportunities and tighter 
spreads.
    Finally, the Exchange believes that the proposed reduced rates are 
not unfairly discriminatory to Market Makers or Customers. The Exchange 
offers separate incentives to Market Makers, which incentives take into 
account the distinct obligations of Market Makers) [sic]. Further, the 
Exchange does not impose any fee on Electronic executions of Customer 
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,\11\ 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 proposed fee increase for Electronic 
executions in Penny Pilot Issues that clear in the Firm range are 
competitive with rates charged by other options exchanges, and 
therefore do not impose any undue burden on competition.\12\ In 
addition, the Exchange believes that the proposed reduced rates for 
Non-Customer/Non-Market Maker Interest executed on the Exchange rule 
change would increase both intermarket and intramarket competition by 
incenting ATP Holders to direct this type of interest to the Exchange, 
which would enhance the quality of the Exchange's markets and increase 
the volume of contracts traded here. To the extent that this purpose is 
achieved, all the Exchange's market participants would benefit from the 
improved market liquidity. Enhanced market quality and increased 
transaction volume that results from the anticipated increase in order 
flow directed to the Exchange will benefit all market participants and 
improve competition on the Exchange. The proposed changes are intended 
to promote competition and better improve the Exchange's competitive 
position and make the Exchange a more attractive marketplace in order 
to encourage market participants to bring increased volume to the 
Exchange. To the extent that the proposed changes make the Exchange a 
more attractive marketplace

[[Page 39923]]

for market participants at other exchanges, such market participants 
are welcome to become ATP Holders.
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    \11\ 15 U.S.C. 78f(b)(8).
    \12\ See supra note 4.
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    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) \13\ of the Act and subparagraph (f)(2) of Rule 
19b-4 \14\ thereunder, because it establishes a due, fee, or other 
charge imposed by the Exchange.
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    \13\ 15 U.S.C. 78s(b)(3)(A).
    \14\ 17 CFR 240.19b-4(f)(2).
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    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)\15\ of the Act to determine whether the proposed 
rule change should be approved or disapproved.
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    \15\ 15 U.S.C. 78s(b)(2)(B).
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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-NYSEAMER-2017-04 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-NYSEAMER-2017-04. 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-NYSEAMER-2017-04, and should 
be submitted on or before September 12, 2017.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\16\
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    \16\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-17684 Filed 8-21-17; 8:45 am]
 BILLING CODE 8011-01-P
Federal Register / Vol. 82, No. 161 / Tuesday, August 22, 2017 / Notices 39921

listed issuers with additional time to IV. Solicitation of Comments For the Commission, by the Division of
ensure that they have adequate Trading and Markets, pursuant to delegated
compliance systems in place furthers Interested persons are invited to authority.10
the protection of investors and the submit written data, views, and Eduardo A. Aleman,
public interest because it will enhance arguments concerning the foregoing, Assistant Secretary.
investor confidence that listed issuers including whether the proposed rule [FR Doc. 2017–17682 Filed 8–21–17; 8:45 am]
are complying with Exchange rules. change is consistent with the Act. BILLING CODE 8011–01–P
Comments may be submitted by any of
For these reasons, Nasdaq believes the
proposed rule change is consistent with the following methods:
SECURITIES AND EXCHANGE
the requirements of Section 6(b)(5) of Electronic Comments COMMISSION
the Act.
• Use the Commission’s Internet [Release No. 34–81408; File No. SR–
B. Self-Regulatory Organization’s comment form (http://www.sec.gov/ NYSEAMER–2017–04]
Statement on Burden on Competition rules/sro.shtml); or
Self-Regulatory Organizations; NYSE
The Exchange does not believe that • Send an email to rule-comments@ American LLC; Notice of Filing and
the proposed rule change will impose sec.gov. Please include File Number SR– Immediate Effectiveness of Proposed
any burden on competition not NASDAQ–2017–081 on the subject line. Rule Change To Modify the NYSE
necessary or appropriate in furtherance American Options Fee Schedule
of the purposes of the Act, as amended. Paper Comments
The Exchange believes that the • Send paper comments in triplicate August 16, 2017.
proposed rule change will facilitate to Secretary, Securities and Exchange Pursuant to Section 19(b)(1)1 of the
listed issuer ability to monitor and Commission, 100 F Street NE., Securities Exchange Act of 1934 (the
evidence compliance with approved Washington, DC 20549–1090. ‘‘Act’’),2 and Rule 19b-4 thereunder,3
continued listing rules by providing notice is hereby given that, on August
issuers with additional time to develop All submissions should refer to File 1, 2017, NYSE American LLC (the
and test their internal systems and Number SR–NASDAQ–2017–081. This ‘‘Exchange’’ or ‘‘NYSE American’’) filed
procedures prior to the implementation file number should be included on the with the Securities and Exchange
date. subject line if email is used. To help the Commission (the ‘‘Commission’’) the
Commission process and review your proposed rule change as described in
C. Self-Regulatory Organization’s Items I, II, and III below, which Items
comments more efficiently, please use
Statement on Comments on the have been prepared by the self-
only one method. The Commission will
Proposed Rule Change Received From regulatory organization. The
post all comments on the Commission’s
Members, Participants, or Others Commission is publishing this notice to
Internet Web site (http://www.sec.gov/
The Exchange received a copy of a rules/sro.shtml). Copies of the solicit comments on the proposed rule
letter from the Investment Company submission, all subsequent change from interested persons.
Institute, on behalf of listed ETP issuers, amendments, all written statements I. Self-Regulatory Organization’s
to the SEC.9 As described in Item 3 [sic], with respect to the proposed rule Statement of the Terms of the Substance
above, the Investment Company change that are filed with the of the Proposed Rule Change
Institute detailed challenges that listed Commission, and all written The Exchange proposes to modify the
ETP issuers are facing in developing communications relating to the NYSE American Options Fee Schedule
compliance systems to address the proposed rule change between the (‘‘Fee Schedule’’). The Exchange
amendments contained in the Proposed Commission and any person, other than proposes to implement the fee change
Rule Change and have requested that those that may be withheld from the effective August 1, 2017. The proposed
the implementation date for such public in accordance with the change is available on the Exchange’s
amendments be extended to July 1, provisions of 5 U.S.C. 552, will be Web site at www.nyse.com, at the
2018. available for Web site viewing and principal office of the Exchange, and at
III. Date of Effectiveness of the printing in the Commission’s Public the Commission’s Public Reference
Proposed Rule Change and Timing for Reference Room, 100 F Street NE., Room.
Commission Action Washington, DC 20549, on official
II. Self-Regulatory Organization’s
business days between the hours of
Within 45 days of the date of Statement of the Purpose of, and
10:00 a.m. and 3:00 p.m. Copies of the Statutory Basis for, the Proposed Rule
publication of this notice in the Federal filing also will be available for
Register or within such longer period Change
inspection and copying at the principal
up to 90 days (i) as the Commission may office of the Exchange. All comments In its filing with the Commission, the
designate if it finds such longer period received will be posted without change; self-regulatory organization included
to be appropriate and publishes its statements concerning the purpose of,
the Commission does not edit personal
reasons for so finding or (ii) as to which and basis for, the proposed rule change
identifying information from
the self-regulatory organization and discussed any comments it received
consents, the Commission will: submissions. You should submit only
on the proposed rule change. The text
information that you wish to make
sradovich on DSK3GMQ082PROD with NOTICES

(A) By order approve or disapprove of those statements may be examined at
available publicly. All submissions the places specified in Item IV below.
such proposed rule change; or should refer to File Number SR– The Exchange has prepared summaries,
(B) institute proceedings to determine NASDAQ–2017–081 and should be
whether the proposed rule change submitted on or before September 12, 10 17 CFR 200.30–3(a)(12).
should be disapproved. 2017. 1 15 U.S.C. 78s(b)(1).
2 15 U.S.C. 78a.
9 See Footnote 6, infra. [sic] 3 17 CFR 240.19b–4.

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39922 Federal Register / Vol. 82, No. 161 / Tuesday, August 22, 2017 / Notices

set forth in sections A, B, and C below, QCC, Strategy Executions, and any Non-Customer/Non-Market Maker
of the most significant parts of such ‘‘Routed Volume,’’ i.e., any volume Interest qualifies for the reduced fees,
statements. attributable to orders routed to another any increase in this type of order flow
exchange in connection with the would attract greater volume and
A. Self-Regulatory Organization’s
Options Order Protection and Locked/ liquidity of all account type [sic] to the
Statement of the Purpose of, and
Crossed Market Plan referenced in Rule Exchange, which benefit all market
Statutory Basis for, the Proposed Rule
991NY. The Exchange notes that this participants by providing more trading
Change
proposed rate is comparable to pricing opportunities and tighter spreads.
1. Purpose incentives offered on other options Finally, the Exchange believes that
The purpose of this filing is to amend exchanges, including MIAX.7 the proposed reduced rates are not
the Fee Schedule effective August 1, unfairly discriminatory to Market
2. Statutory Basis Makers or Customers. The Exchange
2017. Specifically, the Exchange
The Exchange believes that the offers separate incentives to Market
proposes to modify the fees for Firm
proposed rule change is consistent with Makers, which incentives take into
Electronic transactions in Penny Pilot
Section 6(b) of the Act,8 in general, and account the distinct obligations of
issues, and to offer an incentive for ATP
furthers the objectives of Sections Market Makers) [sic]. Further, the
Holders to electronically transact
6(b)(4) and (5) of the Act,9 in particular, Exchange does not impose any fee on
business of Broker-Dealers, Firms, Non-
because it provides for the equitable Electronic executions of Customer
NYSE American Market Makers, and
allocation of reasonable dues, fees, and interest.
Professional Customers (‘‘Non
other charges among its members, For these reasons, the Exchange
Customer/Non Market Maker Interest’’)
issuers and other persons using its believes that the proposal is consistent
on the Exchange.
Currently, the Exchange charges $0.42 facilities and does not unfairly with the Act.
per contract for Electronic executions in discriminate between customers,
B. Self-Regulatory Organization’s
Penny Pilot issues that clear in the Firm issuers, brokers or dealers.
The Exchange believes the proposed Statement on Burden on Competition
range. The Exchange proposes to modify In accordance with Section 6(b)(8) of
increased fee for Firm Electronic
that fee to $0.47, which is similar to the Act,11 the Exchange does not believe
transactions in Penny Pilot Issues is
transaction charges fees paid on other that the proposed rule change would
reasonable as it is competitive with rates
exchanges.4 The Exchange does not impose any burden on competition that
changes by other options exchanges for
propose to alter the per contract fee of is not necessary or appropriate in
Firm transactions.10
$0.75 for Electronic executions in Non- The Exchange believes that the furtherance of the purposes of the Act.
Penny Pilot issues that clear in the Firm proposed reduced fees for Non- The proposed fee increase for Electronic
range. Customer/Non-Market Maker Interest executions in Penny Pilot Issues that
Additionally, the Exchange proposes
executed on the Exchange are fair, clear in the Firm range are competitive
to offer reduced fees to encourage ATP
equitable and not unreasonably with rates charged by other options
Holders to transact additional Non
discriminatory. The Exchange believes exchanges, and therefore do not impose
Customer/Non Market Maker Interest on
the proposed reduced rates are any undue burden on competition.12 In
the Exchange.5 Specifically, the
reasonably designed to encourage ATP addition, the Exchange believes that the
Exchange proposes to charge a reduced
Holders that transact Non-Customer/ proposed reduced rates for Non-
per contract rate on Electronic
executions of $0.36 per contract for Non-Market Maker Interest to direct this Customer/Non-Market Maker Interest
Penny Pilot Issues, and $0.60 per order flow to the Exchange. To the executed on the Exchange rule change
contract for Non-Penny Pilot Issues, to extent this goal is achieved, the would increase both intermarket and
ATP Holders that transact at least 0.05% Exchange would improve its overall intramarket competition by incenting
of TCADV above that ATP Holder’s 2nd competitiveness and strengthen its ATP Holders to direct this type of
Quarter 2017 Non-Customer, Non- market quality for all market interest to the Exchange, which would
Market Maker Interest.6 However, the participants. The proposed rates are fair enhance the quality of the Exchange’s
Exchange would exclude from this and equitable and not unreasonably markets and increase the volume of
TCADV calculation Electronic discriminatory because they apply contracts traded here. To the extent that
executions in the following: CUBE, equally to all ATP Holders that transact this purpose is achieved, all the
Non-Customer/Non-Market Maker Exchange’s market participants would
4 See, e.g., MIAX Options Exchange (‘‘MIAX’’) fee Interest. In addition, the proposed benefit from the improved market
schedule, available here, https://www. changes are equitable and not unfairly liquidity. Enhanced market quality and
miaxoptions.com/sites/default/files/fee_schedule- discriminatory because, while only increased transaction volume that
files/MIAX_Options_Fee_Schedule_06302017.pdf
(charging $0.47 per contract for electronic
results from the anticipated increase in
executions in Penny Pilot Issues that clear in the
7 See supra note 4, MIAX fee schedule, Section
order flow directed to the Exchange will
Firm range); NASDAQ PHLX LLC (‘‘PHLX’’) Pricing (1)(a)(iv) (providing a per contract credit for certain benefit all market participants and
Schedule, available here, http:// orders executed on the exchange, provided the
Member achieves certain ‘‘Professional’’ volume improve competition on the Exchange.
www.nasdaqtrader.com/Micro.aspx?id=phlxpricing
(charging $0.48 per contract for electronic increase percentage thresholds in the month The proposed changes are intended to
executions in Penny Pilot Issues that clear in the relative to a baseline period, which credits result in promote competition and better improve
Firm range). a per-contract rates [sic] similar to the Exchange’s the Exchange’s competitive position and
5 See proposed note 8 to Section I.A. (Options proposal). MIAX similarly excludes from this
calculation certain volumes, including executions make the Exchange a more attractive
Transactions and Credits, Rates for Options
sradovich on DSK3GMQ082PROD with NOTICES

transactions) of the Fee Schedule. The Exchange in price improvement auctions, QCCs, as well as marketplace in order to encourage
notes that executions via the BOLD Mechanism Routed Volume. The following are considered market participants to bring increased
would be included in the TCADV calculation. ‘‘Professional’’ interest on MIAX: Public Customers, volume to the Exchange. To the extent
that are not Priority Customers; non-MIAX Options
6 Currently, the Exchange charges ATP Holders
Market Makers; non-Member Broker-Dealers; or that the proposed changes make the
transacting Non-Customer/Non-Market Maker Exchange a more attractive marketplace
Interest (excluding Firms) a per contract rate of Firms.
8 15 U.S.C. 78f(b).
$0.50 per contract for Penny Pilot Issues, and $0.75
9 15 U.S.C. 78f(b)(4) and (5). 11 15 U.S.C. 78f(b)(8).
per contract for Non-Penny Pilot Issues. The
Exchange does not propose to alter these base rates. 10 See supra note 4. 12 See supra note 4.

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Federal Register / Vol. 82, No. 161 / Tuesday, August 22, 2017 / Notices 39923

for market participants at other NYSEAMER–2017–04 on the subject SECURITIES AND EXCHANGE
exchanges, such market participants are line. COMMISSION
welcome to become ATP Holders.
The Exchange notes that it operates in Paper Comments [Release No. 34–81410; File No. TP 17–10]
a highly competitive market in which • Send paper comments in triplicate Order Granting Limited Exemptions
market participants can readily favor to Secretary, Securities and Exchange From Exchange Act Rule 10b–17 and
competing venues. In such an
Commission, 100 F Street NE., Rules 101 and 102 of Regulation M to
environment, the Exchange must
Washington, DC 20549–1090. IQ Real Return ETF Pursuant to
continually review, and consider
Exchange Act Rule 10b–17(b)(2) and
adjusting, its fees and credits to remain All submissions should refer to File
Rules 101(d) and 102(e) of Regulation
competitive with other exchanges. For Number SR–NYSEAMER–2017–04. This
M
the reasons described above, the file number should be included on the
Exchange believes that the proposed subject line if email is used. To help the August 16, 2017.
rule change reflects this competitive Commission process and review your By letter dated August 16, 2017 (the
environment. comments more efficiently, please use ‘‘Letter’’), as supplemented by
C. Self-Regulatory Organization’s only one method. The Commission will conversations with the staff of the
Statement on Comments on the post all comments on the Commission’s Division of Trading and Markets,
Proposed Rule Change Received From Internet Web site (http://www.sec.gov/ counsel for IndexIQ ETF Trust (the
Members, Participants, or Others rules/sro.shtml). Copies of the ‘‘Trust’’), on behalf of the Trust and one
submission, all subsequent of its investment portfolios, the IQ Real
No written comments were solicited Return ETF (the ‘‘Fund’’), NYSE Arca,
or received with respect to the proposed amendments, all written statements
with respect to the proposed rule Inc. (‘‘NYSE Arca’’) or other national
rule change. securities exchanges on or through
change that are filed with the
III. Date of Effectiveness of the Commission, and all written which shares issued by the Fund
Proposed Rule Change and Timing for communications relating to the (‘‘Shares’’) may subsequently trade,
Commission Action proposed rule change between the ALPS Distributors, Inc. (the
‘‘Distributor’’), and persons or entities
The foregoing rule change is effective Commission and any person, other than
engaging in transactions in Shares
upon filing pursuant to Section those that may be withheld from the
(collectively, the ‘‘Requestors’’),
19(b)(3)(A) 13 of the Act and public in accordance with the
requested exemptions, or interpretive or
subparagraph (f)(2) of Rule 19b–4 14 provisions of 5 U.S.C. 552, will be no-action relief, from Rule 10b–17 of the
thereunder, because it establishes a due, available for Web site viewing and Securities Exchange Act of 1934, as
fee, or other charge imposed by the printing in the Commission’s Public amended (‘‘Exchange Act’’), and Rules
Exchange. Reference Room, 100 F Street NE., 101 and 102 of Regulation M, in
At any time within 60 days of the Washington, DC 20549 on official connection with secondary market
filing of such proposed rule change, the business days between the hours of transactions in Shares and the creation
Commission summarily may 10:00 a.m. and 3:00 p.m. Copies of such or redemption of aggregations of Shares
temporarily suspend such rule change if filing also will be available for of at least 50,000 shares (‘‘Creation
it appears to the Commission that such inspection and copying at the principal Units’’).
action is necessary or appropriate in the office of the Exchange. All comments The Trust is registered with the
public interest, for the protection of
received will be posted without change; Securities and Exchange Commission
investors, or otherwise in furtherance of
the Commission does not edit personal (‘‘Commission’’) under the Investment
the purposes of the Act. If the
identifying information from Company Act of 1940, as amended
Commission takes such action, the
submissions. You should submit only (‘‘1940 Act’’), as an open-end
Commission shall institute proceedings
information that you wish to make management investment company. The
under Section 19(b)(2)(B)15 of the Act to
available publicly. All submissions Fund is a ‘‘fund of funds’’ that is
determine whether the proposed rule
should refer to File Number SR– passively managed according to an
change should be approved or
NYSEAMER–2017–04, and should be index. The Fund is designed to track the
disapproved.
submitted on or before September 12, performance of the IQ Real Return Index
IV. Solicitation of Comments 2017. (‘‘Index’’), which seeks to provide
Interested persons are invited to investors with a hedge against the U.S.
For the Commission, by the Division of inflation rate by providing a ‘‘real
submit written data, views, and Trading and Markets, pursuant to delegated
arguments concerning the foregoing, return,’’ or a return above the rate of
authority.16 inflation, as represented by the
including whether the proposed rule
Eduardo A. Aleman, Consumer Price Index (‘‘CPI’’).
change is consistent with the Act.
Comments may be submitted by any of Assistant Secretary. At least 80% of the Fund’s portfolio
the following methods: [FR Doc. 2017–17684 Filed 8–21–17; 8:45 am] holdings are, and will be, shares of some
BILLING CODE 8011–01–P
or all of the exchange-traded products
Electronic Comments (‘‘ETPs’’) that constitute the Index. The
• Use the Commission’s Internet Fund operates in a manner very similar
to that of the ETPs held in its portfolio.
sradovich on DSK3GMQ082PROD with NOTICES

comment form (http://www.sec.gov/
rules/sro.shtml); or Some or all of the remaining 20% may
• Send an email to rule-comments@ be invested in securities that are not
sec.gov. Please include File Number SR– Index constituents that the Fund’s
adviser believes will help the Fund
13 15 U.S.C. 78s(b)(3)(A). track the Index, as well as cash, cash
14 17 CFR 240.19b–4(f)(2). equivalents and various types of
15 15 U.S.C. 78s(b)(2)(B). 16 17 CFR 200.30–3(a)(12). financial instruments including, but not

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Document Created: 2018-10-24 11:54:40
Document Modified: 2018-10-24 11:54:40
Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Notices
FR Citation		82 FR 39921