83 FR 10542 - Self-Regulatory Organizations; NYSE American LLC; Notice of Filing and Immediate Effectiveness of Proposed Change To Modify the NYSE American Options Fee Schedule

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 83, Issue 47 (March 9, 2018)

Page Range		10542-10543
FR Document		2018-04787
Federal Register, Volume 83 Issue 47 (Friday, March 9, 2018)
[Federal Register Volume 83, Number 47 (Friday, March 9, 2018)]
[Notices]
[Pages 10542-10543]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-04787]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-82809; File No. SR-NYSEAMER-2018-06]


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

March 6, 2018.
    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 February 23, 2018, 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 (``Fee Schedule''). The Exchange proposes to implement the fee 
change effective March 1, 2018. The proposed change is available on the 
Exchange's website 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 modify the Fee Schedule, effective 
March 1, 2018. Specifically, the Exchange proposes to modify the 
Messages to Contracts Traded Ratio Fees by modifying the number of 
messages permitted by an ATP holder before excessive messages are 
charged.
    The Exchange proposes to modify the calculation basis for the 
Messages to Contracts Traded Ratio Fees (``Messages Fee''), which are 
assessed as part of the Monthly Excessive Bandwidth Utilization 
Fees.\4\ Currently, the Exchange charges $0.005 per 1,000 messages 
(including orders or quotes) in excess of 1.5 billion messages in a 
calendar month if the ATP Holder does not execute at least 1 contract 
for every 1,500-5,000 messages entered, as determined by the 
Exchange.\5\ The Exchange proposes to modify the threshold and to 
charge for messages in excess of 3 billion messages per calendar month.
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    \4\ See Fee Schedule, Section II (Monthly Excessive Bandwidth 
Utilization Fees) (``EBUF) (describing both the Order to Trade Ratio 
Fee (Section II.A) and the Messages to Contracts Traded Ratio Fee 
(Section II.B), which comprises the EBUF, and noting that if an ATP 
Holder is liable for either or both fees in a given month, that firm 
would only be charged the greater of the two fees). The Exchange is 
not proposing to modify the Order to Trade Ratio Fees.
    \5\ Currently, the Exchange has set the ratio at 1 contract for 
every 5,000 messages.
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    During the period of recent volatility and activity, the Exchange 
noted a significantly higher number of messages generated without a 
proportional amount of executed volume, especially in less active-
option issues. Concurrently, the Exchange saw no degradation in system 
performance because of prudent upgrades and expansion of the trading 
system in the past year. Thus, the Exchange believes that the proposal 
to increase the threshold to incur the monthly Messages Fee would 
continue to encourage market participants to be rational and efficient 
in the use of the Exchange's system capacity. The Exchange believes 
that the increased threshold should also reduce the possibility of 
charging ATP Holders a Messages Fee for messages designed to help 
maintain accurate and liquid markets with more narrow spreads.

[[Page 10543]]

2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act,\6\ in general, and furthers the 
objectives of Sections 6(b)(4) and (5) of the Act,\7\ 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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    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f(b)(4) and (5).
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    The Exchange believes that the proposed modification to the 
Messages Fees is reasonable, equitable, and not unfairly discriminatory 
because it should still encourage market participants to be rational 
and efficient in the use of the Exchange's system capacity, which 
benefits all market participants. The proposed calculation basis is 
reasonable because it would apply to all market participants that are 
subject to the Messages Fee.

B. Self-Regulatory Organization's Statement on Burden on Competition

    In accordance with Section 6(b)(8) of the Act,\8\ 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 Exchange believes the proposed changes to the 
Messages Fees would not place an unfair burden on competition as it 
would continue to encourage efficient use of Exchange bandwidth and 
would apply to all market participants that are subject to the Messages 
Fee.
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    \8\ 15 U.S.C. 78f(b)(8).
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    To the extent that these purposes are achieved, the Exchange 
believes that the proposed changes would enhance the quality of the 
Exchange's markets and increase the volume of orders directed to the 
Exchange. 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.
    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) \9\ of the Act and subparagraph (f)(2) of Rule 19b-
4 \10\ thereunder, because it establishes a due, fee, or other charge 
imposed by the Exchange.
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    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 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) \11\ of the Act to determine whether the proposed 
rule change should be approved or disapproved.
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    \11\ 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-2018-06 on the subject line.

Paper Comments

     Send paper comments in triplicate to Brent J. Fields, 
Secretary, Securities and Exchange Commission, 100 F Street NE, 
Washington, DC 20549-1090.

All submissions should refer to File Number SR-NYSEAMER-2018-06. 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 website (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 website 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. Persons submitting comments are 
cautioned that we do not redact or edit personal identifying 
information from comment submissions. You should submit only 
information that you wish to make available publicly. All submissions 
should refer to File Number SR-NYSEAMER-2018-06 and should be submitted 
on or before March 30, 2018.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12\
Eduardo A. Aleman,
Assistant Secretary.
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    \12\ 17 CFR 200.30-3(a)(12).
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[FR Doc. 2018-04787 Filed 3-8-18; 8:45 am]
 BILLING CODE 8011-01-P
Federal Register / Vol. 83, No. 47 / Friday, March 9, 2018 / Notices 10543

2. Statutory Basis Exchange believes that the proposed Commission process and review your
The Exchange believes that the rule change reflects this competitive comments more efficiently, please use
proposed rule change is consistent with environment. only one method. The Commission will
Section 6(b) of the Act,6 in general, and post all comments on the Commission’s
C. Self-Regulatory Organization’s
furthers the objectives of Sections internet website (http://www.sec.gov/
Statement on Comments on the
6(b)(4) and (5) of the Act,7 in particular, rules/sro.shtml). Copies of the
Proposed Rule Change Received From
because it provides for the equitable submission, all subsequent
Members, Participants, or Others
allocation of reasonable dues, fees, and amendments, all written statements
other charges among its members, No written comments were solicited with respect to the proposed rule
issuers and other persons using its or received with respect to the proposed change that are filed with the
facilities and does not unfairly rule change. Commission, and all written
discriminate between customers, III. Date of Effectiveness of the communications relating to the
issuers, brokers or dealers. Proposed Rule Change and Timing for proposed rule change between the
The Exchange believes that the Commission Action Commission and any person, other than
proposed modification to the Messages those that may be withheld from the
Fees is reasonable, equitable, and not The foregoing rule change is effective public in accordance with the
unfairly discriminatory because it upon filing pursuant to Section provisions of 5 U.S.C. 552, will be
should still encourage market 19(b)(3)(A) 9 of the Act and available for website viewing and
participants to be rational and efficient subparagraph (f)(2) of Rule 19b–4 10 printing in the Commission’s Public
in the use of the Exchange’s system thereunder, because it establishes a due, Reference Room, 100 F Street NE,
capacity, which benefits all market fee, or other charge imposed by the Washington, DC 20549 on official
participants. The proposed calculation Exchange. business days between the hours of
basis is reasonable because it would At any time within 60 days of the 10:00 a.m. and 3:00 p.m. Copies of the
apply to all market participants that are filing of such proposed rule change, the filing also will be available for
subject to the Messages Fee. Commission summarily may inspection and copying at the principal
temporarily suspend such rule change if office of the Exchange. All comments
B. Self-Regulatory Organization’s it appears to the Commission that such received will be posted without change.
Statement on Burden on Competition action is necessary or appropriate in the Persons submitting comments are
In accordance with Section 6(b)(8) of public interest, for the protection of cautioned that we do not redact or edit
the Act,8 the Exchange does not believe investors, or otherwise in furtherance of personal identifying information from
that the proposed rule change would the purposes of the Act. If the comment submissions. You should
impose any burden on competition that Commission takes such action, the submit only information that you wish
is not necessary or appropriate in Commission shall institute proceedings to make available publicly. All
furtherance of the purposes of the Act. under Section 19(b)(2)(B) 11 of the Act to submissions should refer to File
The Exchange believes the proposed determine whether the proposed rule Number SR–NYSEAMER–2018–06 and
changes to the Messages Fees would not change should be approved or should be submitted on or before March
place an unfair burden on competition disapproved. 30, 2018.
as it would continue to encourage
IV. Solicitation of Comments For the Commission, by the Division of
efficient use of Exchange bandwidth
Interested persons are invited to Trading and Markets, pursuant to delegated
and would apply to all market authority.12
participants that are subject to the submit written data, views, and
arguments concerning the foregoing, Eduardo A. Aleman,
Messages Fee.
To the extent that these purposes are including whether the proposed rule Assistant Secretary.
achieved, the Exchange believes that the change is consistent with the Act. [FR Doc. 2018–04787 Filed 3–8–18; 8:45 am]
proposed changes would enhance the Comments may be submitted by any of BILLING CODE 8011–01–P
quality of the Exchange’s markets and the following methods:
increase the volume of orders directed
Electronic Comments
to the Exchange. In turn, all the DEPARTMENT OF STATE
Exchange’s market participants would • Use the Commission’s internet
[Public Notice:10344]
benefit from the improved market comment form (http://www.sec.gov/
liquidity. If the proposed changes make rules/sro.shtml); or 30-Day Notice of Proposed Information
the Exchange a more attractive • Send an email to rule-comments@ Collection: Generic Clearance for the
marketplace for market participants at sec.gov. Please include File Number SR– Collection of Qualitative Feedback on
other exchanges, such market NYSEAMER–2018–06 on the subject Agency Service Delivery
participants are welcome to become line.
ATP Holders. Paper Comments ACTION:Notice of request for public
The Exchange notes that it operates in comment and submission to OMB of
a highly competitive market in which • Send paper comments in triplicate proposed collection of information.
market participants can readily favor to Brent J. Fields, Secretary, Securities
competing venues. In such an and Exchange Commission, 100 F Street SUMMARY: The Department of State has
environment, the Exchange must NE, Washington, DC 20549–1090. submitted the information collection
continually review, and consider All submissions should refer to File described below to the Office of
amozie on DSK30RV082PROD with NOTICES

adjusting, its fees and credits to remain Number SR–NYSEAMER–2018–06. This Management and Budget (OMB) for
competitive with other exchanges. For file number should be included on the approval. In accordance with the
the reasons described above, the subject line if email is used. To help the Paperwork Reduction Act of 1995 we
are requesting comments on this
6 15 U.S.C. 78f(b). 9 15 U.S.C. 78s(b)(3)(A). collection from all interested
7 15 U.S.C. 78f(b)(4) and (5). 10 17 CFR 240.19b–4(f)(2).
8 15 U.S.C. 78f(b)(8). 11 15 U.S.C. 78s(b)(2)(B). 12 17 CFR 200.30–3(a)(12).

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Document Created: 2018-03-09 03:48:08
Document Modified: 2018-03-09 03:48:08
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		83 FR 10542