82 FR 46580 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the NYSE Arca Options Fee Schedule
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 192 (October 5, 2017)
Federal Register Volume 82, Issue 192 (October 5, 2017)
| Page Range | 46580-46581 | |
| FR Document | 2017-21404 |
[Federal Register Volume 82, Number 192 (Thursday, October 5, 2017)] [Notices] [Pages 46580-46581] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-21404] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-81767; File No. SR-NYSEARCA-2017-114] Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the NYSE Arca Options Fee Schedule September 29, 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 September 26, 2017, NYSE Arca, Inc. (the ``Exchange'' or ``NYSE Arca'') filed with the Securities and Exchange Commission (the ``Commission'') the proposed rule change as described in Items I, II, and III below, which Items have been prepared by the self-regulatory organization. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. --------------------------------------------------------------------------- \1\ 15 U.S.C.78s(b)(1). \2\ 15 U.S.C. 78a. \3\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend the NYSE Arca Options Fee Schedule (``Fee Schedule''). The Exchange proposes to implement the fee change effective October 1, 2017. The proposed rule change is available on the Exchange's Web site at www.nyse.com, at the principal office of the Exchange, and at the Commission's Public Reference Room. II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the self-regulatory organization included statements concerning the purpose of, and basis for, the proposed rule change and discussed any comments it received on the proposed rule change. The text of those statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant parts of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change 1. Purpose The purpose of this filing is to amend the Fee Schedule effective October 1, 2017. Specifically, the Exchange proposes to place a cap on an incentive for Floor Brokers to execute Qualified Contingent Cross (``QCC'') transactions. Currently, Floor Brokers earn a rebate for executed QCC orders of $0.035 per contract side.\4\ QCC executions in which a Customer or Professional Customer (collectively, ``Customer'') is on both sides of the QCC trade are not eligible for the Floor Broker rebate.\5\ The Exchange does not currently impose any monthly cap on the maximum to be paid under the QCC rebate program. --------------------------------------------------------------------------- \4\ See Fee Schedule, QUALIFIED CONTINGENT CROSS TRANSACTION FEES, available here, https://www.nyse.com/publicdocs/nyse/markets/arca-options/NYSE_Arca_Options_Fee_Schedule.pdf. \5\ See id., Endnote 14. --------------------------------------------------------------------------- The Exchange proposes to limit the maximum Floor Broker rebate to $375,000 per month per Floor Broker firm.\6\ Although the proposal would limit the potential monthly rebate, the Exchange believes that OTP Holders acting as Floor Brokers would still be incented to achieve the highest rebate possible. The Exchange notes that other options exchanges have similar caps on rebates offers for QCC transactions.\7\ --------------------------------------------------------------------------- \6\ See proposed Fee Schedule, Endnote 13 (providing that ``[t]he maximum Floor Broker Rebate paid shall not exceed $375,000 per month per Floor Broker firm''). \7\ See NYSE American Options Fee Schedule, Section I.F., QCC Fees & Credits, n. 1, available here, https://www.nyse.com/publicdocs/nyse/markets/american-options/NYSE_American_Options_Fee_Schedule.pdf (providing that ``[t]he maximum Floor Broker credit paid shall not exceed $375,000 per month per Floor Broker firm''); Chicago Board Options Exchange (``CBOE'') fee schedule, QCC Rate Table, p. 5, available here, http://www.cboe.com/publish/feeschedule/CBOEFeeSchedule.pdf (providing that QCC credits ``will be capped at $350,000 per month'', per CBOE trading permit holder). --------------------------------------------------------------------------- 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. --------------------------------------------------------------------------- \8\ 15 U.S.C. 78f(b). \9\ 15 U.S.C. 78f(b)(4) and (5). --------------------------------------------------------------------------- Specifically, the Exchange does not currently impose any monthly cap on the maximum to be paid to Floor Broker firms under the QCC rebate program. The Exchange believes the proposed cap is reasonable, equitable and not unfairly discriminatory because all OTP Holders would be uniformly capped at a potential rebate of $370,000 per month per Floor Broker firm. In addition, the proposal is reasonable, equitable and not unfairly discriminatory because it is consistent with similar caps on rebates pad [sic] for QCC transactions on other exchanges.\10\ --------------------------------------------------------------------------- \10\ See supra note 7. --------------------------------------------------------------------------- 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 will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. The proposed cap would not impose an unfair burden on competition because all OTP Holders would be uniformly capped at $375,000 per month per Floor Broker firm and because the proposal is consistent with similar caps on rebates pad [sic] for QCC transactions on other exchanges.\12\ --------------------------------------------------------------------------- \11\ 15 U.S.C. 78f(b)(8). \12\ See supra note 7. --------------------------------------------------------------------------- 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. [[Page 46581]] 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. --------------------------------------------------------------------------- \13\ 15 U.S.C. 78s(b)(3)(A). \14\ 17 CFR 240.19b-4(f)(2). --------------------------------------------------------------------------- At any time within 60 days of the filing of such proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings under Section 19(b)(2)(B) \15\ of the Act to determine whether the proposed rule change should be approved or disapproved. --------------------------------------------------------------------------- \15\ 15 U.S.C. 78s(b)(2)(B). --------------------------------------------------------------------------- IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic CommentsUse the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to [email protected]. Please include File Number SR-NYSEArca-2017-114 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-NYSEArca-2017-114. This file number should be included on the subject line if email is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for Web site viewing and printing in the Commission's Public Reference Room, 100 F Street NE., Washington, DC 20549, on official business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of the filing also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR-NYSEArca-2017-114, and should be submitted on or before October 26, 2017. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\16\ --------------------------------------------------------------------------- \16\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017-21404 Filed 10-4-17; 8:45 am] BILLING CODE 8011-01-P
![46580 Federal Register / Vol. 82, No. 192 / Thursday, October 5, 2017 / Notices
Section 6(c) of the Act permits the II. Self-Regulatory Organization’s 2. Statutory Basis
Commission to exempt any persons or Statement of the Purpose of, and
transactions from any provision of the Statutory Basis for, the Proposed Rule The Exchange believes that the
Act if such exemption is necessary or Change proposed rule change is consistent with
appropriate in the public interest and Section 6(b) of the Act,8 in general, and
In its filing with the Commission, the furthers the objectives of Sections
consistent with the protection of self-regulatory organization included
investors and the purposes fairly 6(b)(4) and (5) of the Act,9 in particular,
statements concerning the purpose of,
intended by the policy and provisions of because it provides for the equitable
and basis for, the proposed rule change
the Act. allocation of reasonable dues, fees, and
and discussed any comments it received
other charges among its members,
For the Commission, by the Division of on the proposed rule change. The text
of those statements may be examined at issuers and other persons using its
Investment Management, pursuant to facilities and does not unfairly
delegated authority. the places specified in Item IV below.
The Exchange has prepared summaries, discriminate between customers,
Eduardo A. Aleman, issuers, brokers or dealers.
set forth in sections A, B, and C below,
Assistant Secretary.
of the most significant parts of such Specifically, the Exchange does not
[FR Doc. 2017–21398 Filed 10–4–17; 8:45 am] statements. currently impose any monthly cap on
BILLING CODE 8011–01–P the maximum to be paid to Floor Broker
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the firms under the QCC rebate program.
Statutory Basis for, the Proposed Rule The Exchange believes the proposed cap
SECURITIES AND EXCHANGE
Change is reasonable, equitable and not unfairly
COMMISSION
discriminatory because all OTP Holders
1. Purpose would be uniformly capped at a
[Release No. 34–81767; File No. SR– potential rebate of $370,000 per month
The purpose of this filing is to amend
NYSEARCA–2017–114] per Floor Broker firm. In addition, the
the Fee Schedule effective October 1,
2017. Specifically, the Exchange proposal is reasonable, equitable and
Self-Regulatory Organizations; NYSE
proposes to place a cap on an incentive not unfairly discriminatory because it is
Arca, Inc.; Notice of Filing and
for Floor Brokers to execute Qualified consistent with similar caps on rebates
Immediate Effectiveness of Proposed
Contingent Cross (‘‘QCC’’) transactions. pad [sic] for QCC transactions on other
Rule Change To Amend the NYSE Arca
Currently, Floor Brokers earn a rebate exchanges.10
Options Fee Schedule for executed QCC orders of $0.035 per
contract side.4 QCC executions in which B. Self-Regulatory Organization’s
September 29, 2017.
a Customer or Professional Customer Statement on Burden on Competition
Pursuant to Section 19(b)(1) 1 of the (collectively, ‘‘Customer’’) is on both
Securities Exchange Act of 1934 (the In accordance with Section 6(b)(8) of
sides of the QCC trade are not eligible
‘‘Act’’) 2 and Rule 19b–4 thereunder,3 the Act,11 the Exchange does not believe
for the Floor Broker rebate.5 The
notice is hereby given that, on that the proposed rule change will
Exchange does not currently impose any
September 26, 2017, NYSE Arca, Inc. monthly cap on the maximum to be impose any burden on competition that
(the ‘‘Exchange’’ or ‘‘NYSE Arca’’) filed paid under the QCC rebate program. is not necessary or appropriate in
with the Securities and Exchange The Exchange proposes to limit the furtherance of the purposes of the Act.
Commission (the ‘‘Commission’’) the maximum Floor Broker rebate to The proposed cap would not impose an
proposed rule change as described in $375,000 per month per Floor Broker unfair burden on competition because
Items I, II, and III below, which Items firm.6 Although the proposal would all OTP Holders would be uniformly
have been prepared by the self- limit the potential monthly rebate, the capped at $375,000 per month per Floor
regulatory organization. The Exchange believes that OTP Holders Broker firm and because the proposal is
Commission is publishing this notice to acting as Floor Brokers would still be consistent with similar caps on rebates
solicit comments on the proposed rule incented to achieve the highest rebate pad [sic] for QCC transactions on other
change from interested persons. possible. The Exchange notes that other exchanges.12
options exchanges have similar caps on The Exchange notes that it operates in
I. Self-Regulatory Organization’s rebates offers for QCC transactions.7 a highly competitive market in which
Statement of the Terms of Substance of
market participants can readily favor
the Proposed Rule Change 4 See Fee Schedule, QUALIFIED CONTINGENT
CROSS TRANSACTION FEES, available here, competing venues. In such an
The Exchange proposes to amend the https://www.nyse.com/publicdocs/nyse/markets/ environment, the Exchange must
NYSE Arca Options Fee Schedule (‘‘Fee arca-options/NYSE_Arca_Options_Fee_ continually review, and consider
Schedule.pdf.
Schedule’’). The Exchange proposes to 5 See id., Endnote 14.
adjusting, its fees and credits to remain
implement the fee change effective 6 See proposed Fee Schedule, Endnote 13 competitive with other exchanges. For
October 1, 2017. The proposed rule (providing that ‘‘[t]he maximum Floor Broker the reasons described above, the
change is available on the Exchange’s Rebate paid shall not exceed $375,000 per month Exchange believes that the proposed
per Floor Broker firm’’). rule change reflects this competitive
Web site at www.nyse.com, at the 7 See NYSE American Options Fee Schedule,
principal office of the Exchange, and at Section I.F., QCC Fees & Credits, n. 1, available environment.
ethrower on DSK3G9T082PROD with NOTICES
the Commission’s Public Reference here, https://www.nyse.com/publicdocs/nyse/
Room. markets/american-options/NYSE_American_ be capped at $350,000 per month’’, per CBOE
Options_Fee_Schedule.pdf (providing that ‘‘[t]he trading permit holder).
maximum Floor Broker credit paid shall not exceed 8 15 U.S.C. 78f(b).
$375,000 per month per Floor Broker firm’’); 9 15 U.S.C. 78f(b)(4) and (5).
1 15
Chicago Board Options Exchange (‘‘CBOE’’) fee
U.S.C.78s(b)(1). 10 See supra note 7.
schedule, QCC Rate Table, p. 5, available here,
2 15 U.S.C. 78a. 11 15 U.S.C. 78f(b)(8).
http://www.cboe.com/publish/feeschedule/CBOE
3 17 CFR 240.19b–4. FeeSchedule.pdf (providing that QCC credits ‘‘will 12 See supra note 7.
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![Federal Register / Vol. 82, No. 192 / Thursday, October 5, 2017 / Notices 46581
C. Self-Regulatory Organization’s Internet Web site (http://www.sec.gov/ below, which Items have been prepared
Statement on Comments on the rules/sro.shtml). Copies of the by the Exchange. The Commission is
Proposed Rule Change Received From submission, all subsequent publishing this notice to solicit
Members, Participants, or Others amendments, all written statements comments on the proposed rule change
No written comments were solicited with respect to the proposed rule from interested persons.
or received with respect to the proposed change that are filed with the
I. Self-Regulatory Organization’s
rule change. Commission, and all written
Statement of the Terms of Substance of
communications relating to the
III. Date of Effectiveness of the the Proposed Rule Change
proposed rule change between the
Proposed Rule Change and Timing for Commission and any person, other than The Exchange proposes to extend the
Commission Action those that may be withheld from the date on which certain changes
The foregoing rule change is effective public in accordance with the concerning the continued listing
upon filing pursuant to Section provisions of 5 U.S.C. 552, will be requirements for exchange-traded
19(b)(3)(A) 13 of the Act and available for Web site viewing and products (‘‘ETPs’’) in the Nasdaq Rule
subparagraph (f)(2) of Rule 19b–4 14 printing in the Commission’s Public 5700 Series, as well as a related
thereunder, because it establishes a due, Reference Room, 100 F Street NE., amendment to Nasdaq Rule 5810
fee, or other charge imposed by the Washington, DC 20549, on official (Notification of Deficiency by the
Exchange. business days between the hours of Listing Qualifications Department), are
At any time within 60 days of the 10:00 a.m. and 3:00 p.m. Copies of the implemented.
filing of such proposed rule change, the filing also will be available for The Exchange proposes to delay the
Commission summarily may inspection and copying at the principal implementation date of these changes
temporarily suspend such rule change if office of the Exchange. All comments until January 1, 2018. Given the scope
it appears to the Commission that such received will be posted without change; of the proposed rule changes, the
action is necessary or appropriate in the the Commission does not edit personal Exchange believes that this will ensure
public interest, for the protection of identifying information from that ETP issuers have adequate time to
investors, or otherwise in furtherance of submissions. You should submit only finish developing and put into operation
the purposes of the Act. If the information that you wish to make the new processes and systems
Commission takes such action, the available publicly. All submissions necessitated by them.
Commission shall institute proceedings should refer to File Number SR– II. Self-Regulatory Organization’s
under Section 19(b)(2)(B) 15 of the Act to NYSEArca–2017–114, and should be Statement of the Purpose of, and
determine whether the proposed rule submitted on or before October 26, Statutory Basis for, the Proposed Rule
change should be approved or 2017. Change
disapproved. For the Commission, by the Division of In its filing with the Commission, the
Trading and Markets, pursuant to delegated
IV. Solicitation of Comments authority.16 Exchange included statements
Interested persons are invited to Eduardo A. Aleman,
concerning the purpose of and basis for
submit written data, views, and the proposed rule change and discussed
Assistant Secretary.
arguments concerning the foregoing, any comments it received on the
[FR Doc. 2017–21404 Filed 10–4–17; 8:45 am]
including whether the proposed rule proposed rule change. The text of these
BILLING CODE 8011–01–P statements may be examined at the
change is consistent with the Act.
Comments may be submitted by any of places specified in Item IV below. The
the following methods: Exchange has prepared summaries, set
SECURITIES AND EXCHANGE
forth in sections A, B, and C below, of
Electronic Comments COMMISSION
the most significant aspects of such
• Use the Commission’s Internet [Release No. 34–81773; File No. SR– statements.
NASDAQ–2017–101
comment form (http://www.sec.gov/ A. Self-Regulatory Organization’s
rules/sro.shtml); or Self-Regulatory Organizations; The Statement of the Purpose of, and
• Send an email to rule-comments@ NASDAQ Stock Market LLC; Notice of Statutory Basis for, the Proposed Rule
sec.gov. Please include File Number SR– Filing and Immediate Effectiveness of Change
NYSEArca–2017–114 on the subject Proposed Rule Change To Extend the
line. 1. Purpose
Implementation Date for Certain
Paper Comments Changes to the Rule 5700 Series and On September 30, 2016, the Exchange
Rule 5810 filed a proposed rule change, as
• Send paper comments in triplicate subsequently amended by Amendments
to Secretary, Securities and Exchange September 29, 2017. No. 1 and 2 thereto, and as
Commission, 100 F Street NE., Pursuant to Section 19(b)(1) of the supplemented by two clean-up filings 3
Washington, DC 20549–1090. Securities Exchange Act of 1934 (as amended and supplemented,
All submissions should refer to File (‘‘Act’’),1 and Rule 19b–4 thereunder,2 collectively, the ‘‘Proposed Rule
Number SR–NYSEArca–2017–114. This notice is hereby given that on Change’’), to adopt certain changes to
file number should be included on the September 27, 2017, The NASDAQ the Nasdaq Rule 5700 Series, as well as
subject line if email is used. To help the Stock Market LLC (‘‘Nasdaq’’ or a related amendment to Nasdaq Rule
Commission process and review your ‘‘Exchange’’) filed with the Securities
ethrower on DSK3G9T082PROD with NOTICES
comments more efficiently, please use and Exchange Commission (‘‘SEC’’ or 3 See Securities Exchange Act Release No. 79081
only one method. The Commission will ‘‘Commission’’) the proposed rule (Oct. 11, 2016), 81 FR 71548 (Oct. 17, 2016) (SR–
post all comments on the Commission’s change as described in Items I and II NASDAQ–2016–135); see also Securities Exchange
Act Release No. 80708 (May 17, 2017), 82 FR 23690
(May 23, 2017) (SR–NASDAQ–2017–040); see also
13 15 U.S.C. 78s(b)(3)(A). 16 17 CFR 200.30–3(a)(12). Securities Exchange Act Release No. 80810 (May
14 17 CFR 240.19b–4(f)(2). 1 15 U.S.C. 78s(b)(1). 30, 2017), 82 FR 26205 (June 6, 2017) (SR–
15 15 U.S.C. 78s(b)(2)(B). 2 17 CFR 240.19b–4. NASDAQ–2017–052).
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Document Created: 2017-10-05 00:53:41
Document Modified: 2017-10-05 00:53:41
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| FR Citation | 82 FR 46580 |
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