82_FR_43240 82 FR 43064 - Self-Regulatory Organizations; NYSE American LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Modify the NYSE American Options Fee Schedule

82 FR 43064 - Self-Regulatory Organizations; NYSE American LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Modify the NYSE American Options Fee Schedule

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 176 (September 13, 2017)

Page Range43064-43066
FR Document2017-19378

Federal Register, Volume 82 Issue 176 (Wednesday, September 13, 2017)
[Federal Register Volume 82, Number 176 (Wednesday, September 13, 2017)]
[Notices]
[Pages 43064-43066]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-19378]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-81549; File No. SR-NYSEAMER-2017-08]


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

September 7, 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 31, 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 Substance 
of the Proposed Rule Change

    The Exchange proposes to modify the NYSE American Options Fee 
Schedule. The proposed change is available on the Exchange's Web site 
at www.nyse.com, at the principal office of the Exchange, and at the 
Commission's Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the self-regulatory organization 
included statements concerning the purpose of, and basis for, the 
proposed rule change and discussed any comments it received on the 
proposed rule change. The text of those statements may be examined at 
the places specified in Item IV below. The Exchange has prepared 
summaries, set forth in sections A, B, and C below, of the most 
significant parts of such statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The purpose of this filing is to amend the Fee Schedule effective 
September 1, 2017. Specifically, the Exchange proposes to modify the 
surcharge that is applied to certain Complex Orders executed on the 
Exchange.
    Currently, the Exchange imposes a $0.05 per contract surcharge for 
any Electronic Non-Customer Complex Order that executes against a 
Customer Complex Order, regardless of whether the execution occurs in a 
Complex Order Auction (the ``Surcharge'').\4\ The Exchange proposes to 
modify the Surcharge to $0.10 per contract, which surcharge is 
comparable to charges imposed by other options exchanges.\5\ For 
clarity, the Exchange also proposes to make clear that the Surcharge is 
applied on a ``per contract'' basis.\6\
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    \4\ See Fee Schedule, Section I.A., n. 6, available here, 
https://www.nyse.com/publicdocs/nyse/markets/american-options/NYSE_American_Options_Fee_Schedule.pdf. Per the Fee Schedule, a 
``Customer'' is an individual or organization that is not a Broker-
Dealer, per Rule 900.2NY(18); and is not a Professional Customer; 
and a ``Non-Customer'' is anyone who is not a Customer. See id., Fee 
Schedule, Key Terms and Definitions. Thus, Non-Customers include 
Specialists, e-Specialists, Directed Order Market Makers, Firms, 
Broker Dealers, and Professional Customers. The Exchange notes that 
Firm Facilitation trades are not electronic and are therefore not 
subject to the Surcharge.
    \5\ See MIAX Options fee schedule, available here, https://www.miaxoptions.com/sites/default/files/fee_schedule-files/MIAX_Options_Fee_Schedule_08072017.pdf (imposing a $0.10 on certain 
complex orders). See also The Chicago Board Options Exchange, Inc. 
(``CBOE'') fee schedule, available here, http://www.cboe.com/publish/feeschedule/CBOEFeeSchedule.pdf, at n. 35 (same).
    \6\ See proposed Fee Schedule, Section I.A., n. 6. The Exchange 
also proposes to correct a typographical error referring to ``a CUBE 
Auctions'' by removing the word ``a.'' See id.
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    Additionally, to encourage ATP Holders to transact additional Non-
Customer Complex Orders on the Exchange, the Exchange proposes to offer 
a reduced Surcharge for those ATP Holders that meet a certain volume 
threshold. Specifically, the Exchange proposes to reduce the per 
contract surcharge to $0.07 for any ATP Holder that transacts at least 
0.20% of Total Industry Customer equity and ETF option average daily 
volume (or TCADV) of Electronic Non-Customer Complex Order Executions 
in a month.
    Finally, the Exchange proposes to add ``TCADV'' as a defined term 
in the Key

[[Page 43065]]

Terms and Definitions section of the Fee Schedule, which would add 
clarity and transparency to the Fee Schedule.\7\ As proposed, TCADV 
would refer to ``Total Industry Customer equity and ETF option average 
daily volume that includes OCC calculated Customer volume of all types, 
including Complex Order Transactions and QCC transactions, in equity 
and ETF options.'' \8\ This proposed definition is consistent with how 
other options exchanges define this term.\9\ Consistent with this 
proposed change, the Exchange proposes to utilize this defined term in 
Section I.E. regarding the American Customer Engagement (``ACE'') 
Program.\10\
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    \7\ See Fee Schedule, Preface, Key Terms and Definitions.
    \8\ See proposed Fee Schedule, Preface, Key Terms and 
Definitions.
    \9\ See e.g., NYSE Arca Options Fee Schedule, Endnote 8.
    \10\ See proposed Fee Schedule, Section I.E. The Exchange also 
proposes to fix a typographical error and add the word ``for'' to 
the end of the first paragraph describing the ACE Program, which 
would clearly provide that the ACE Program offers ``two methods for 
OFPs to receive credits'' (emphasis added). See id.
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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.
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    \11\ 15 U.S.C. 78f(b).
    \12\ 15 U.S.C. 78f(b)(4) and (5).
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    The Exchange believes the proposed increase to the Surcharge is 
reasonable, equitable, and not unfairly discriminatory, as it applies 
to all similarly situated Non-Customer Complex Orders. Applying the 
Surcharge, as modified, to market participant orders except Customer 
orders is equitable and not unfairly discriminatory because Customer 
order flow enhances liquidity on the Exchange for the benefit of all 
market participants. Specifically, Customer liquidity benefits all 
market participants by providing more trading opportunities, which 
attracts Market Makers. An increase in the activity of Specialists and 
Market Makers in turn facilitates tighter spreads, which may cause an 
additional corresponding increase in order flow from other market 
participants.
    In addition, the proposed surcharge is reasonable, equitable, and 
not unfairly discriminatory as it is consistent with fees charged by 
other options exchanges.\13\ For example, MIAX imposes a $0.10 ``Per 
Contract Surcharge for Removing Liquidity Against A Resting Priority 
Customer Complex Order on the Strategy Book'' for all option classes), 
which may result in an overall per contract fee of $0.60.\14\
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    \13\ See supra note 5.
    \14\ See MIAX fee schedule, supra note 5 (providing for a 
potential total per contract fee of $0.60 for Market Makers, which 
includes a ``Complex Per Contract Fee for Penny Classes,'' a per 
contract ``Marketing Fee,'' and a $0.10 ``Per Contract Surcharge for 
Removing Liquidity Against a Resting Priority Customer Complex Order 
on the Strategy Book for Penny and Non-Penny Classes''). The 
Exchange believes that MIAX does not subject transactions in a 
complex order auction to any fee cap. See also Securities Exchange 
Act Release No. 80262 (March 16, 2017), 82 FR 14779 (March 22, 2017) 
(SR-NYSEMKT-2017-15) (establishing the Surcharge).
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    Further, the Exchange believes that the proposal to offer a reduced 
surcharge to those ATP Holders that achieve certain volume thresholds 
is reasonable, equitable and not unfairly discriminatory. The Exchange 
believes the proposed reduced rate is reasonably designed to encourage 
ATP Holders that transact Non-Customer Complex Orders to direct more of 
this order flow to the Exchange to qualify for the reduced rates. The 
proposed rates are reasonable and equitable and not unfairly 
discriminatory because they apply equally to all ATP Holders that 
transact Non-Customer Complex Orders. In addition, the proposed changes 
are equitable and not unfairly discriminatory because, while only Non-
Customer Complex Orders qualify for the reduced surcharge, the Exchange 
believes any increase in Non-Customer Complex Orders would result in 
greater volume and liquidity being attracted to the Exchange, which 
benefit all market participants by providing more trading opportunities 
and tighter spreads.\15\ To the extent this goal is achieved, the 
Exchange would improve its overall competitiveness and strengthen its 
market quality for all market participants.
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    \15\ The Exchange notes that it does not impose any fee on 
Electronic executions of Customer interest.
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    The proposal to define ``TCADV'' in the Fee Schedule, as well as to 
fix the typographical errors in Section I.A.\16\ and I.E.,\17\ is 
likewise reasonable, equitable and not unfairly discriminatory because 
it would add clarity and transparency to the Fee Schedule to the 
benefit of all market participants.
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    \16\ See supra note 6.
    \17\ See supra note 10.
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    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,\18\ 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 modification to the Surcharge 
would not impose an unfair burden on competition as it is consistent 
with fees charged by other exchanges.\19\ Further, the proposal to 
reduce the surcharge for certain ATP Holders that achieve certain 
volume thresholds would likewise not impose an unfair burden on 
competition because it is designed to attract Non-Customer Complex 
Orders to the Exchange. To the extent that this purpose is achieved, 
this proposal would enhance the quality of the Exchange's markets and 
increase the volume of Complex Orders traded here. In turn, all the 
Exchange's market participants would benefit from the improved market 
liquidity. If the proposed changes make the Exchange a more attractive 
marketplace for market participants at other exchanges, such market 
participants are welcome to become ATP Holders.
---------------------------------------------------------------------------

    \18\ 15 U.S.C. 78f(b)(8).
    \19\ See supra note 5.
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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) \20\ of the Act and

[[Page 43066]]

subparagraph (f)(2) of Rule 19b-4 \21\ thereunder, because it 
establishes a due, fee, or other charge imposed by the Exchange.
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    \20\ 15 U.S.C. 78s(b)(3)(A).
    \21\ 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) \22\ of the Act to determine whether the proposed 
rule change should be approved or disapproved.
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    \22\ 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-2017-08 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-2017-08. 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-NYSEAMER-2017-08, and should 
be submitted on or before October 4, 2017.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\23\
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    \23\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-19378 Filed 9-12-17; 8:45 am]
 BILLING CODE 8011-01-P



                                                43064                   Federal Register / Vol. 82, No. 176 / Wednesday, September 13, 2017 / Notices

                                                burden hours associated with the                        Ahmed@omb.eop.gov; and (ii) Pamela                    the places specified in Item IV below.
                                                adoption and documentation                              Dyson, Director/Chief Information                     The Exchange has prepared summaries,
                                                requirement is 10,185 hours.                            Officer, Securities and Exchange                      set forth in sections A, B, and C below,
                                                   All funds are required to conduct an                 Commission, c/o Remi Pavlik-Simon,                    of the most significant parts of such
                                                annual review of the adequacy of their                  100 F Street NE., Washington, DC 20549                statements.
                                                existing policies and procedures and the                or send an email to: PRA_Mailbox@
                                                policies and procedures of each                                                                               A. Self-Regulatory Organization’s
                                                                                                        sec.gov. Comments must be submitted to
                                                investment adviser, principal                                                                                 Statement of the Purpose of, and the
                                                                                                        OMB within 30 days of this notice.
                                                underwriter, administrator, and transfer                                                                      Statutory Basis for, the Proposed Rule
                                                                                                          Dated: September 8, 2017.                           Change
                                                agent of the fund, and the effectiveness
                                                                                                        Eduardo A. Aleman,
                                                of their implementation. In addition,                                                                         1. Purpose
                                                                                                        Assistant Secretary.
                                                each fund chief compliance officer is                                                                            The purpose of this filing is to amend
                                                required to prepare an annual report                    [FR Doc. 2017–19446 Filed 9–12–17; 8:45 am]
                                                                                                        BILLING CODE 8011–01–P
                                                                                                                                                              the Fee Schedule effective September 1,
                                                that addresses the operation of the                                                                           2017. Specifically, the Exchange
                                                policies and procedures of the fund and                                                                       proposes to modify the surcharge that is
                                                the policies and procedures of each                                                                           applied to certain Complex Orders
                                                investment adviser, principal                           SECURITIES AND EXCHANGE
                                                                                                        COMMISSION                                            executed on the Exchange.
                                                underwriter, administrator, and transfer                                                                         Currently, the Exchange imposes a
                                                agent of the fund, any material changes                 [Release No. 34–81549; File No. SR–                   $0.05 per contract surcharge for any
                                                made to those policies and procedures                   NYSEAMER–2017–08]                                     Electronic Non-Customer Complex
                                                since the date of the last report, any                                                                        Order that executes against a Customer
                                                material changes to the policies and                    Self-Regulatory Organizations; NYSE
                                                                                                        American LLC; Notice of Filing and                    Complex Order, regardless of whether
                                                procedures recommended as a result of                                                                         the execution occurs in a Complex
                                                the annual review, and certain                          Immediate Effectiveness of a Proposed
                                                                                                        Rule Change To Modify the NYSE                        Order Auction (the ‘‘Surcharge’’).4 The
                                                compliance matters that occurred since                                                                        Exchange proposes to modify the
                                                the date of the last report. The staff                  American Options Fee Schedule
                                                                                                                                                              Surcharge to $0.10 per contract, which
                                                estimates that each fund spends 49                      September 7, 2017.                                    surcharge is comparable to charges
                                                hours per year, on average, conducting                     Pursuant to Section 19(b)(1) 1 of the              imposed by other options exchanges.5
                                                the annual review and preparing the                     Securities Exchange Act of 1934 (the                  For clarity, the Exchange also proposes
                                                annual report to the board of directors.                ‘‘Act’’) 2 and Rule 19b–4 thereunder,3                to make clear that the Surcharge is
                                                Thus, we estimate that the annual                       notice is hereby given that, on August                applied on a ‘‘per contract’’ basis.6
                                                aggregate burden hours associated with                  31, 2017, NYSE American LLC (the                         Additionally, to encourage ATP
                                                the annual review and annual report                     ‘‘Exchange’’ or ‘‘NYSE American’’) filed              Holders to transact additional Non-
                                                requirement is 202,517 hours.                           with the Securities and Exchange                      Customer Complex Orders on the
                                                   Finally, the staff estimates that each               Commission (the ‘‘Commission’’) the                   Exchange, the Exchange proposes to
                                                fund spends 6 hours annually, on                        proposed rule change as described in                  offer a reduced Surcharge for those ATP
                                                average, maintaining the records                        Items I, II, and III below, which Items               Holders that meet a certain volume
                                                required by proposed Rule 38a–1. Thus,                  have been prepared by the self-                       threshold. Specifically, the Exchange
                                                the annual aggregate burden hours                       regulatory organization. The                          proposes to reduce the per contract
                                                associated with the recordkeeping                       Commission is publishing this notice to               surcharge to $0.07 for any ATP Holder
                                                requirement is 24,798 hours.                            solicit comments on the proposed rule                 that transacts at least 0.20% of Total
                                                   In total, the staff estimates that the                                                                     Industry Customer equity and ETF
                                                                                                        change from interested persons.
                                                aggregate annual information collection                                                                       option average daily volume (or
                                                burden of Rule 38a–1 is 237,500 hours.                  I. Self-Regulatory Organization’s                     TCADV) of Electronic Non-Customer
                                                The estimate of burden hours is made                    Statement of the Terms of Substance of                Complex Order Executions in a month.
                                                solely for the purposes of the Paperwork                the Proposed Rule Change                                 Finally, the Exchange proposes to add
                                                Reduction Act. The estimate is not                         The Exchange proposes to modify the                ‘‘TCADV’’ as a defined term in the Key
                                                derived from a comprehensive or even                    NYSE American Options Fee Schedule.
                                                a representative survey or study of the                 The proposed change is available on the                  4 See Fee Schedule, Section I.A., n. 6, available

                                                costs of Commission rules. Complying                    Exchange’s Web site at www.nyse.com,                  here, https://www.nyse.com/publicdocs/nyse/
                                                with this collection of information                                                                           markets/american-options/NYSE_American_
                                                                                                        at the principal office of the Exchange,              Options_Fee_Schedule.pdf. Per the Fee Schedule, a
                                                requirement is mandatory. Responses                     and at the Commission’s Public                        ‘‘Customer’’ is an individual or organization that is
                                                will not be kept confidential. An agency                Reference Room.                                       not a Broker-Dealer, per Rule 900.2NY(18); and is
                                                may not conduct or sponsor, and a                                                                             not a Professional Customer; and a ‘‘Non-Customer’’
                                                person is not required to respond to, a                 II. Self-Regulatory Organization’s                    is anyone who is not a Customer. See id., Fee
                                                                                                                                                              Schedule, Key Terms and Definitions. Thus, Non-
                                                collection of information unless it                     Statement of the Purpose of, and                      Customers include Specialists, e-Specialists,
                                                displays a currently valid control                      Statutory Basis for, the Proposed Rule                Directed Order Market Makers, Firms, Broker
                                                number.                                                 Change                                                Dealers, and Professional Customers. The Exchange
                                                                                                                                                              notes that Firm Facilitation trades are not electronic
                                                   The public may view the background                      In its filing with the Commission, the             and are therefore not subject to the Surcharge.
                                                documentation for this information                      self-regulatory organization included                    5 See MIAX Options fee schedule, available here,
                                                collection at the following Web site,                   statements concerning the purpose of,                 https://www.miaxoptions.com/sites/default/files/
                                                www.reginfo.gov. Comments should be                                                                           fee_schedule-files/MIAX_Options_Fee_Schedule_
sradovich on DSK3GMQ082PROD with NOTICES




                                                                                                        and basis for, the proposed rule change               08072017.pdf (imposing a $0.10 on certain complex
                                                directed to: (i) Desk Officer for the                   and discussed any comments it received                orders). See also The Chicago Board Options
                                                Securities and Exchange Commission,                     on the proposed rule change. The text                 Exchange, Inc. (‘‘CBOE’’) fee schedule, available
                                                Office of Information and Regulatory                    of those statements may be examined at                here, http://www.cboe.com/publish/feeschedule/
                                                Affairs, Office of Management and                                                                             CBOEFeeSchedule.pdf, at n. 35 (same).
                                                                                                                                                                 6 See proposed Fee Schedule, Section I.A., n. 6.
                                                Budget, Room 10102, New Executive                         1 15 U.S.C. 78s(b)(1).                              The Exchange also proposes to correct a
                                                Office Building, Washington, DC 20503,                    2 15 U.S.C. 78a.                                    typographical error referring to ‘‘a CUBE Auctions’’
                                                or by sending an email to: Shagufta_                      3 17 CFR 240.19b–4.                                 by removing the word ‘‘a.’’ See id.



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                                                                        Federal Register / Vol. 82, No. 176 / Wednesday, September 13, 2017 / Notices                                            43065

                                                Terms and Definitions section of the Fee      In addition, the proposed surcharge is                           Schedule to the benefit of all market
                                                Schedule, which would add clarity and      reasonable, equitable, and not unfairly                             participants.
                                                transparency to the Fee Schedule.7 As      discriminatory as it is consistent with                               For these reasons, the Exchange
                                                proposed, TCADV would refer to ‘‘Total     fees charged by other options                                       believes that the proposal is consistent
                                                Industry Customer equity and ETF           exchanges.13 For example, MIAX                                      with the Act.
                                                option average daily volume that           imposes a $0.10 ‘‘Per Contract                                      B. Self-Regulatory Organization’s
                                                includes OCC calculated Customer           Surcharge for Removing Liquidity                                    Statement on Burden on Competition
                                                volume of all types, including Complex     Against A Resting Priority Customer
                                                Order Transactions and QCC                 Complex Order on the Strategy Book’’                                   In accordance with Section 6(b)(8) of
                                                transactions, in equity and ETF            for all option classes), which may result                           the Act,18 the Exchange does not believe
                                                options.’’ 8 This proposed definition is   in an overall per contract fee of $0.60.14                          that the proposed rule change would
                                                consistent with how other options                                                                              impose any burden on competition that
                                                                                              Further, the Exchange believes that                              is not necessary or appropriate in
                                                exchanges define this term.9 Consistent
                                                                                           the proposal to offer a reduced                                     furtherance of the purposes of the Act.
                                                with this proposed change, the
                                                Exchange proposes to utilize this          surcharge to those ATP Holders that                                 The proposed modification to the
                                                defined term in Section I.E. regarding     achieve certain volume thresholds is                                Surcharge would not impose an unfair
                                                the American Customer Engagement           reasonable, equitable and not unfairly                              burden on competition as it is
                                                (‘‘ACE’’) Program.10                       discriminatory. The Exchange believes                               consistent with fees charged by other
                                                                                           the proposed reduced rate is reasonably                             exchanges.19 Further, the proposal to
                                                2. Statutory Basis                         designed to encourage ATP Holders that                              reduce the surcharge for certain ATP
                                                                                           transact Non-Customer Complex Orders                                Holders that achieve certain volume
                                                   The Exchange believes that the
                                                                                           to direct more of this order flow to the                            thresholds would likewise not impose
                                                proposed rule change is consistent with
                                                Section 6(b) of the Act, in general, and Exchange to qualify for the reduced
                                                                         11                                                                                    an unfair burden on competition
                                                furthers the objectives of Sections        rates. The proposed rates are reasonable                            because it is designed to attract Non-
                                                6(b)(4) and (5) of the Act, in particular, and equitable and not unfairly
                                                                            12                                                                                 Customer Complex Orders to the
                                                because it provides for the equitable      discriminatory because they apply                                   Exchange. To the extent that this
                                                allocation of reasonable dues, fees, and   equally to all ATP Holders that transact                            purpose is achieved, this proposal
                                                other charges among its members,           Non-Customer Complex Orders. In                                     would enhance the quality of the
                                                issuers and other persons using its        addition, the proposed changes are                                  Exchange’s markets and increase the
                                                facilities and does not unfairly           equitable and not unfairly                                          volume of Complex Orders traded here.
                                                discriminate between customers,            discriminatory because, while only                                  In turn, all the Exchange’s market
                                                issuers, brokers or dealers.               Non-Customer Complex Orders qualify                                 participants would benefit from the
                                                                                           for the reduced surcharge, the Exchange                             improved market liquidity. If the
                                                   The Exchange believes the proposed      believes any increase in Non-Customer                               proposed changes make the Exchange a
                                                increase to the Surcharge is reasonable,   Complex Orders would result in greater                              more attractive marketplace for market
                                                equitable, and not unfairly                volume and liquidity being attracted to                             participants at other exchanges, such
                                                discriminatory, as it applies to all       the Exchange, which benefit all market                              market participants are welcome to
                                                similarly situated Non-Customer                                                                                become ATP Holders.
                                                                                           participants by providing more trading
                                                Complex Orders. Applying the                                                                                      The Exchange notes that it operates in
                                                                                           opportunities and tighter spreads.15 To
                                                Surcharge, as modified, to market                                                                              a highly competitive market in which
                                                                                           the extent this goal is achieved, the
                                                participant orders except Customer                                                                             market participants can readily favor
                                                                                           Exchange would improve its overall
                                                orders is equitable and not unfairly                                                                           competing venues. In such an
                                                                                           competitiveness and strengthen its
                                                discriminatory because Customer order                                                                          environment, the Exchange must
                                                                                           market quality for all market
                                                flow enhances liquidity on the                                                                                 continually review, and consider
                                                                                           participants.
                                                Exchange for the benefit of all market                                                                         adjusting, its fees and credits to remain
                                                participants. Specifically, Customer          The proposal to define ‘‘TCADV’’ in
                                                                                                                                                               competitive with other exchanges. For
                                                liquidity benefits all market participants the Fee Schedule, as well as to fix the                             the reasons described above, the
                                                by providing more trading                  typographical errors in Section I.A.16
                                                                                                                                                               Exchange believes that the proposed
                                                opportunities, which attracts Market       and   I.E.,17 is likewise reasonable,
                                                                                                                                                               rule change reflects this competitive
                                                Makers. An increase in the activity of     equitable and not unfairly
                                                                                                                                                               environment.
                                                Specialists and Market Makers in turn      discriminatory because it would add
                                                facilitates tighter spreads, which may     clarity and transparency to the Fee                                 C. Self-Regulatory Organization’s
                                                cause an additional corresponding                                                                              Statement on Comments on the
                                                increase in order flow from other market     13 See supra note 5.                                              Proposed Rule Change Received From
                                                participants.                                14 See MIAX fee schedule, supra note 5                            Members, Participants, or Others
                                                                                                        (providing for a potential total per contract fee of
                                                                                                        $0.60 for Market Makers, which includes a                No written comments were solicited
                                                   7 See Fee Schedule, Preface, Key Terms and
                                                                                                        ‘‘Complex Per Contract Fee for Penny Classes,’’ a      or received with respect to the proposed
                                                Definitions.                                            per contract ‘‘Marketing Fee,’’ and a $0.10 ‘‘Per      rule change.
                                                   8 See proposed Fee Schedule, Preface, Key Terms
                                                                                                        Contract Surcharge for Removing Liquidity Against
                                                and Definitions.                                        a Resting Priority Customer Complex Order on the       III. Date of Effectiveness of the
                                                   9 See e.g., NYSE Arca Options Fee Schedule,          Strategy Book for Penny and Non-Penny Classes’’).      Proposed Rule Change and Timing for
                                                Endnote 8.                                              The Exchange believes that MIAX does not subject
                                                                                                                                                               Commission Action
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                                                   10 See proposed Fee Schedule, Section I.E. The       transactions in a complex order auction to any fee
                                                Exchange also proposes to fix a typographical error     cap. See also Securities Exchange Act Release No.         The foregoing rule change is effective
                                                and add the word ‘‘for’’ to the end of the first        80262 (March 16, 2017), 82 FR 14779 (March 22,
                                                                                                        2017) (SR–NYSEMKT–2017–15) (establishing the
                                                                                                                                                               upon filing pursuant to Section
                                                paragraph describing the ACE Program, which
                                                would clearly provide that the ACE Program offers       Surcharge).                                            19(b)(3)(A) 20 of the Act and
                                                ‘‘two methods for OFPs to receive credits’’                15 The Exchange notes that it does not impose any

                                                (emphasis added). See id.                               fee on Electronic executions of Customer interest.      18 15 U.S.C. 78f(b)(8).
                                                   11 15 U.S.C. 78f(b).                                    16 See supra note 6.                                 19 See supra note 5.
                                                   12 15 U.S.C. 78f(b)(4) and (5).                         17 See supra note 10.                                20 15 U.S.C. 78s(b)(3)(A).




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                                                43066                     Federal Register / Vol. 82, No. 176 / Wednesday, September 13, 2017 / Notices

                                                subparagraph (f)(2) of Rule 19b–4 21                      Reference Room, 100 F Street NE.,                      locations. The following areas have been
                                                thereunder, because it establishes a due,                 Washington, DC 20549, on official                      determined to be adversely affected by
                                                fee, or other charge imposed by the                       business days between the hours of                     the disaster:
                                                Exchange.                                                 10:00 a.m. and 3:00 p.m. Copies of the                 Primary Areas (Physical Damage and
                                                   At any time within 60 days of the                      filing also will be available for                          Economic Injury Loans): Saint John,
                                                filing of such proposed rule change, the                  inspection and copying at the principal                    Saint Thomas
                                                Commission summarily may                                  office of the Exchange. All comments                   Contiguous Areas (Economic Injury
                                                temporarily suspend such rule change if                   received will be posted without change;                    Loans Only): None
                                                it appears to the Commission that such                    the Commission does not edit personal                    The Interest Rates are:
                                                action is necessary or appropriate in the                 identifying information from
                                                public interest, for the protection of                    submissions. You should submit only                                                                      Percent
                                                investors, or otherwise in furtherance of                 information that you wish to make
                                                the purposes of the Act. If the                           available publicly. All submissions                    For Physical Damage:
                                                Commission takes such action, the                         should refer to File Number SR–                          Homeowners with Credit Avail-
                                                Commission shall institute proceedings                                                                               able Elsewhere ......................           3.500
                                                                                                          NYSEAMER–2017–08, and should be                          Homeowners without Credit
                                                under Section 19(b)(2)(B) 22 of the Act to                submitted on or before October 4, 2017.                    Available Elsewhere ..............              1.750
                                                determine whether the proposed rule
                                                                                                            For the Commission, by the Division of                 Businesses with Credit Avail-
                                                change should be approved or                              Trading and Markets, pursuant to delegated                 able Elsewhere ......................           6.610
                                                disapproved.                                              authority.23                                             Businesses        without          Credit
                                                IV. Solicitation of Comments                              Eduardo A. Aleman,                                         Available Elsewhere ..............               3.305
                                                                                                                                                                   Non-Profit Organizations with
                                                  Interested persons are invited to                       Assistant Secretary.
                                                                                                                                                                     Credit Available Elsewhere ...                   2.500
                                                submit written data, views, and                           [FR Doc. 2017–19378 Filed 9–12–17; 8:45 am]              Non-Profit Organizations with-
                                                arguments concerning the foregoing,                       BILLING CODE 8011–01–P                                     out Credit Available Else-
                                                including whether the proposed rule                                                                                  where .....................................      2.500
                                                change is consistent with the Act.                                                                               For Economic Injury:
                                                Comments may be submitted by any of                                                                                Businesses & Small Agricultural
                                                                                                          SMALL BUSINESS ADMINISTRATION                              Cooperatives without Credit
                                                the following methods:
                                                                                                          [Disaster Declaration #15293 and #15294;                   Available Elsewhere ..............              3.305
                                                Electronic Comments                                       U.S. VIRGIN ISLANDS Disaster Number VI–                  Non-Profit Organizations with-
                                                                                                          00009]                                                     out Credit Available Else-
                                                   • Use the Commission’s Internet                                                                                   where .....................................      2.500
                                                comment form (http://www.sec.gov/                         Presidential Declaration of a Major
                                                rules/sro.shtml); or                                      Disaster for the U.S. Virgin Islands                     The number assigned to this disaster
                                                   • Send an email to rule-comments@                                                                             for physical damage is 152938 and for
                                                sec.gov. Please include File Number SR–                   AGENCY: U.S. Small Business                            economic injury is 152940.
                                                NYSEAMER–2017–08 on the subject                           Administration.
                                                line.                                                                                                            (Catalog of Federal Domestic Assistance
                                                                                                          ACTION: Notice.                                        Number 59008)
                                                Paper Comments
                                                                                                          SUMMARY:   This is a Notice of the                     James E. Rivera,
                                                   • Send paper comments in triplicate                    Presidential declaration of a major                    Associate Administrator for Disaster
                                                to Secretary, Securities and Exchange                     disaster for the U.S. VIRGIN ISLANDS                   Assistance.
                                                Commission, 100 F Street NE.,                             (FEMA–4335–DR), dated 09/07/2017.                      [FR Doc. 2017–19447 Filed 9–12–17; 8:45 am]
                                                Washington, DC 20549–1090.                                  Incident: Hurricane Irma.                            BILLING CODE 8025–01–P
                                                All submissions should refer to File                        Incident Period: 09/06/2017 and
                                                Number SR–NYSEAMER–2017–08. This                          continuing.
                                                file number should be included on the                     DATES: Issued on 09/07/2017.                           SOCIAL SECURITY ADMINISTRATION
                                                subject line if email is used. To help the                  Physical Loan Application Deadline                   [Docket No: SSA–2017–0050]
                                                Commission process and review your                        Date: 11/06/2017.
                                                comments more efficiently, please use                       Economic Injury (EIDL) Loan                          Agency Information Collection
                                                only one method. The Commission will                      Application Deadline Date: 06/07/2018.                 Activities: Proposed Request and
                                                post all comments on the Commission’s                                                                            Comment Request
                                                                                                          ADDRESSES: Submit completed loan
                                                Internet Web site (http://www.sec.gov/
                                                                                                          applications to: U.S. Small Business                      The Social Security Administration
                                                rules/sro.shtml). Copies of the
                                                                                                          Administration, Processing and                         (SSA) publishes a list of information
                                                submission, all subsequent
                                                                                                          Disbursement Center, 14925 Kingsport                   collection packages requiring clearance
                                                amendments, all written statements
                                                                                                          Road, Fort Worth, TX 76155.                            by the Office of Management and
                                                with respect to the proposed rule
                                                change that are filed with the                            FOR FURTHER INFORMATION CONTACT: A.                    Budget (OMB) in compliance with
                                                Commission, and all written                               Escobar, Office of Disaster Assistance,                Public Law 104–13, the Paperwork
                                                communications relating to the                            U.S. Small Business Administration,                    Reduction Act of 1995, effective October
                                                proposed rule change between the                          409 3rd Street SW., Suite 6050,                        1, 1995. This notice includes revisions
                                                Commission and any person, other than                     Washington, DC 20416, (202) 205–6734.                  of OMB-approved information
sradovich on DSK3GMQ082PROD with NOTICES




                                                those that may be withheld from the                       SUPPLEMENTARY INFORMATION: Notice is                   collections.
                                                public in accordance with the                             hereby given that as a result of the                      SSA is soliciting comments on the
                                                provisions of 5 U.S.C. 552, will be                       President’s major disaster declaration on              accuracy of the agency’s burden
                                                available for Web site viewing and                        09/07/2017, applications for disaster                  estimate; the need for the information;
                                                printing in the Commission’s Public                       loans may be filed at the address listed               its practical utility; ways to enhance its
                                                                                                          above or other locally announced                       quality, utility, and clarity; and ways to
                                                  21 17   CFR 240.19b–4(f)(2).                                                                                   minimize burden on respondents,
                                                  22 15   U.S.C. 78s(b)(2)(B).                              23 17   CFR 200.30–3(a)(12).                         including the use of automated


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Document Created: 2017-09-13 00:08:56
Document Modified: 2017-09-13 00:08:56
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
FR Citation82 FR 43064 

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