83 FR 15437 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the NYSE Arca Options Fee Schedule With Respect to the Options Regulatory Fee
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 83, Issue 69 (April 10, 2018)
Federal Register Volume 83, Issue 69 (April 10, 2018)
| Page Range | 15437-15439 | |
| FR Document | 2018-07244 |
[Federal Register Volume 83, Number 69 (Tuesday, April 10, 2018)] [Notices] [Pages 15437-15439] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-07244] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-82993; File No. SR-NYSEArca-2018-19] Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the NYSE Arca Options Fee Schedule With Respect to the Options Regulatory Fee April 4, 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 March 23, 2018, 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'') by modifying the description of the Options Regulatory Fee (``ORF''). The proposed rule 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 Exchange proposes to amend the Fee Schedule to clarify the description of the ORF. The Exchange charges an ORF in the amount of $0.0055 per contract side. The proposed rule change does not change the amount of the ORF, but instead modifies the rule text to clarify how the ORF is assessed and collected. Currently, the Exchange describes the ORF as follows: The Options Regulatory Fee will be assessed on each OTP Holder or OTP Firm for all options transactions executed or cleared by the OTP Holder or OTP Firm that are cleared by The Options Clearing Corporation (``OCC'') in the customer range regardless of the exchange on which the transaction occurs. The fee is collected indirectly from OTP Holders or OTP Firms through their clearing firms by the OCC on behalf of NYSE Arca. Effective December 1, 2012, an OTP Holder or OTP Firm shall not be assessed the fee until it has satisfied applicable technological requirements necessary to commence operations on NYSE Arca. The Exchange may only increase or decrease the Options Regulatory Fee semi-annually, and any such fee change will be effective on the first business day of February or August. The Exchange will notify participants via a Trader Update of any change in the amount of the fee at least 30 calendar days prior to the effective date of the change.\4\ --------------------------------------------------------------------------- \4\ See Fee Schedule, NYSE Arca GENERAL OPTIONS and TRADING PERMIT (OTP) FEES, Regulatory Fees, Options Regulatory Fee, available here, https://www.nyse.com/publicdocs/nyse/markets/arca-options/NYSE_Arca_Options_Fee_Schedule.pdf. The Exchange proposes to modify this description to more accurately reflect how the ORF is imposed. Specifically, the ORF is assessed to each OTP Holder or OTP Firm (referred to herein collectively as ``OTP Holders'') for all options transactions cleared (but not necessarily executed) by an OTP Holder through the OCC in the customer range regardless of the exchange on which the transaction occurs. The ORF is only assessed to OTP Holders that act as the clearing firm for the transaction, regardless of whether the executing firm (if different from the clearing firm) is an OTP Holder.\5\ Thus, the Exchange proposes to delete the words ``executed or'' from the current description of the ORF, and to make clear that the ORF is assessed ``to each OTP Holder or OTP [[Page 15438]] Firm'' on transactions ``that are cleared by the OTP Holder or OTP Firm through The Options Clearing Corporation (`OCC')'' and that the ORF is ``collected from OTP Holder and OTP Firm clearing firms by OCC on behalf of NYSE Arca.'' \6\ The Exchange also proposes to clarify that it ``uses reports from OCC when assessing and collecting the ORF.'' \7\ The Exchange believes these changes would clarify how the ORF is assessed and collected. To illustrate how the ORF is assessed and collected, the Exchange provides the following set of scenarios. --------------------------------------------------------------------------- \5\ The Exchange uses reports from OCC to determine the identity of the clearing firm and compares that to the list of OTP Holders for billing purposes. \6\ See proposed Fee Schedule, NYSE Arca GENERAL OPTIONS and TRADING PERMIT (OTP) FEES, Regulatory Fees, ORF. In connection with the proposed revisions, the Exchange proposes to remove as redundant the word ``indirectly'' from the sentence explaining that the OCC collects the ORF from the OTP Holder clearing firm. See id. \7\ See id. See supra note 5. --------------------------------------------------------------------------- Scenario 1: Executing (or Give-Up) Firm is not an OTP. The Executing Firm does not ``give-up'' or ``CMTA'' the transaction to another clearing firm.\8\ --------------------------------------------------------------------------- \8\ A CMTA or Clearing Member Trade Assignment is an agreement by which an investor may enter derivative trades with a limited number of different brokers and later consolidate these trades with one brokerage house for clearing. --------------------------------------------------------------------------- No ORF Fee is assessed. Scenario 2: Executing Firm is an OTP Holder. The Executing Firm ``give-ups'' or ``CMTAs'' the transaction to another clearing firm that is not an OTP Holder. No ORF Fee is assessed. Scenario 3: The Executing (or Give-Up) Firm is an OTP Holder. The Executing Firm does not ``give-up'' or ``CMTA'' the transaction to another clearing firm. ORF Fee is assessed on the self-clearing Executing Firm. Scenario 4: The Executing (or Give-Up) Firm is an OTP Holder. The Executing Firm ``give-ups'' or ``CMTAs'' the transaction to another clearing firm that is also an OTP Holder. ORF Fee is assessed on the CMTA (clearing) firm. Scenario 5: The Executing (or Give-Up) Firm is not an OTP Holder. The Executing Firm ``give-ups'' or ``CMTAs'' the transaction to another clearing firm that is an OTP Holder. ORF Fee is assessed on the CMTA (clearing) firm. * * * * * As illustrated above, the Exchange does not assess the ORF on non- OTP Holders that self-clear transactions, even if the executing firm is an OTP Holder; the Exchange likewise does not impose the ORF if both the executing firm and the firm that clears the transaction on its behalf are non-OTP Holders.\9\ --------------------------------------------------------------------------- \9\ Although the Exchange believes that its broad regulatory responsibilities would support applying the ORF to transactions that are executed (even if not ultimately cleared) by an OTP Holder, the Exchange only imposes the ORF on transactions ultimately cleared by OTP Holders at this time. The Exchange's regulatory responsibilities are the same regardless of whether an OTP Holder enters a transaction or clears a transaction. The Exchange regularly reviews all such activities, including monitoring surveillance for position limit violations, manipulation, front-running, contrary exercise advice violations and insider trading. These activities span across multiple exchanges. --------------------------------------------------------------------------- The Exchange proposes to modify the Fee Schedule to make clear that it does not assess the ORF on outbound linkage trades.\10\ ``Linkage trades'' are tagged in the Exchange's system, so the Exchange can distinguish them from other trades. A customer order routed to another exchange results in two customer trades, one from the originating exchange and one from the recipient exchange. Charging ORF on both trades could result in double-billing of ORF for a single customer order, thus the Exchange will not assess ORF on outbound linkage trades in a linkage scenario. --------------------------------------------------------------------------- \10\ See proposed Fee Schedule, NYSE Arca GENERAL OPTIONS and TRADING PERMIT (OTP) FEES, Regulatory Fees, ORF. --------------------------------------------------------------------------- To further streamline the Fee Schedule, the Exchange also proposes to delete superfluous and obsolete references to long-past effective dates. Specifically, the Exchange proposes to delete references to the effective dates of December 1, 2012 and February 3, 2014, which would add clarity and transparency to the Fee Schedule.\11\ In addition, the Exchange proposes to define the Options Regulatory Fee as the ORF and to utilize this shorthand reference in the description of this fee.\12\ --------------------------------------------------------------------------- \11\ See id. \12\ See id. --------------------------------------------------------------------------- The Exchange notes that the ORF is designed to recover a material portion of the costs to the Exchange of the supervision and regulation of OTP Holder Customer transactions, including performing routine surveillances and investigations, as well as policy, rulemaking, interpretive, and enforcement activities. The Exchange monitors the amount of revenue collected from the ORF to ensure that this revenue, in combination with other regulatory fees and fines, does not exceed regulatory costs. The Exchange may only increase or decrease the ORF semi-annually, and any such fee change will be effective on the first business day of February or August. If the Exchange determines that regulatory revenues exceed regulatory costs, the Exchange will adjust the ORF by submitting a fee filing and notifying OTP Holders via Trader Update at least 30 days prior to the effective date. The Exchange believes that revenue generated from the ORF, when combined with all of the Exchange's other regulatory fees and fines, will cover a material portion of the Exchange's regulatory costs. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with the provisions of Section 6(b) \13\ of the Act, in general, and Section 6(b)(4) and (5) \14\ of the Act, in particular, in that it is designed to provide for the equitable allocation of reasonable dues, fees, and other charges among its members and other persons using its facilities and does not unfairly discriminate between customers, issuers, brokers, or dealers. --------------------------------------------------------------------------- \13\ 15 U.S.C. 78f(b). \14\ 15 U.S.C. 78f(b)(4) and (5). --------------------------------------------------------------------------- The Exchange believes the proposed changes to the description of ORF are reasonable, equitable and not unfairly discriminatory because the changes add clarity and transparency to the Fee Schedule by more accurately describing how the ORF is assessed and collected. The proposed change does not alter the operation of the ORF, nor does it alter the per contract rate of the ORF. The Exchange believes that specifying that OCC files are used to determine the assessment and collection of the ORF would add clarity and transparency to the Fee Schedule. The Exchange believes it is reasonable, equitable and not unfairly discriminatory to opt to not to assess and collect the ORF when neither the executing firm nor the CMTA (clearing) firm is an OTP Holder because such entities are not members of the Exchange. Although the Exchange believes that its broad regulatory responsibilities would support applying the ORF to transactions that are executed (even if not ultimately cleared) by an OTP Holder, because its regulatory responsibilities are the same regardless of whether an OTP Holder executes a transaction or clears a transaction, at this time the Exchange imposes the ORF solely on transactions ultimately cleared by OTP Holders. The Exchange believes the ORF is equitable and not unfairly discriminatory because it is assessed to all OTP Holders on all their transactions that clear as customer at the OCC. The Exchange believes it is appropriate to assess the ORF only to transactions that clear as customer at the OCC because regulating OTP Holders' customer trading activity is more labor intensive [[Page 15439]] and requires greater expenditure of human and technical resources than regulating OTP Holders' non-customer trading activity. The Exchange believes the ORF is designed to be fair by assessing fees to those OTP Holders that require more Exchange regulatory services based on the amount of customer options business they conduct. The Exchange believes it is reasonable, equitable and nondiscriminatory to not impose the ORF on outbound linkage trades. Linkage trades'' are tagged in the Exchange's system, so the Exchange can distinguish them from other trades. A customer order routed to another exchange results in two customer trades, one from the originating exchange and one from the recipient exchange. Charging ORF on both trades could result in double-billing of ORF for a single customer order, thus the Exchange will not assess ORF on outbound linkage trades in a linkage scenario. The Exchange believes that the proposal deleting outdated reference to long-past effective dates and removing the word ``indirectly'' is reasonable as it would streamline the Fee Schedule by removing superfluous language thereby making the Fee Schedule easier for market participants to navigate. The ORF is designed to recover a material portion of the costs to the Exchange of the supervision and regulation of OTP Holder customer options business, including performing routine surveillances and investigations, as well as policy, rulemaking, interpretive, and enforcement activities. The Exchange monitors the amount of revenue collected from the ORF to ensure that this revenue, in combination with other regulatory fees and fines, does not exceed regulatory costs. The Exchange has designed the ORF to generate revenues that, when combined with all of the Exchange's other regulatory fees, would be less than or equal to the Exchange's regulatory costs, which is consistent with the view of the Securities and Exchange Commission (``Commission'') that regulatory fees be used for regulatory purposes and not to support the Exchange's business side. In this regard, the Exchange believes that the ORF is reasonable. B. Self-Regulatory Organization's Statement on Burden on Competition 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 rule change is not intended to address any competitive issues but rather to provide more clarity and transparency regarding how the Exchange assesses and collects the ORF. The Exchange believes any burden on competition imposed by the proposed rule change is outweighed by the need to help the Exchange adequately fund its regulatory activities to ensure compliance with the Exchange Act. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others No written comments were solicited or received with respect to the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing rule change is effective upon filing pursuant to Section 19(b)(3)(A) \15\ of the Act and subparagraph (f)(2) of Rule 19b-4 \16\ thereunder, because it establishes a due, fee, or other charge imposed by the Exchange. --------------------------------------------------------------------------- \15\ 15 U.S.C. 78s(b)(3)(A). \16\ 17 CFR 240.19b-4(f)(2). --------------------------------------------------------------------------- At any time within 60 days of the filing of such proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings under Section 19(b)(2)(B) \17\ of the Act to determine whether the proposed rule change should be approved or disapproved. --------------------------------------------------------------------------- \17\ 15 U.S.C. 78s(b)(2)(B). --------------------------------------------------------------------------- IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic CommentsUse the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to [email protected]. Please include File No. SR-NYSEArca-2018-19 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 No. SR-NYSEArca-2018-19. 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 No. SR-NYSEArca-2018-19, and should be submitted on or before May 1, 2018. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\18\ --------------------------------------------------------------------------- \18\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2018-07244 Filed 4-9-18; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 83, No. 69 / Tuesday, April 10, 2018 / Notices 15437
including whether the proposed rule SECURITIES AND EXCHANGE A. Self-Regulatory Organization’s
change is consistent with the Act. COMMISSION Statement of the Purpose of, and the
Comments may be submitted by any of Statutory Basis for, the Proposed Rule
the following methods: [Release No. 34–82993; File No. SR– Change
Electronic Comments NYSEArca–2018–19] 1. Purpose
• Use the Commission’s internet Self-Regulatory Organizations; NYSE The Exchange proposes to amend the
comment form (http://www.sec.gov/ Fee Schedule to clarify the description
Arca, Inc.; Notice of Filing and
rules/sro.shtml); or of the ORF.
Immediate Effectiveness of Proposed The Exchange charges an ORF in the
• Send an email to rule-comments@ Rule Change To Amend the NYSE Arca amount of $0.0055 per contract side.
sec.gov. Please include File Number SR– Options Fee Schedule With Respect to The proposed rule change does not
ISE–2018–24 on the subject line. the Options Regulatory Fee change the amount of the ORF, but
Paper Comments April 4, 2018. instead modifies the rule text to clarify
how the ORF is assessed and collected.
• Send paper comments in triplicate Pursuant to Section 19(b)(1) 1 of the Currently, the Exchange describes the
to Secretary, Securities and Exchange Securities Exchange Act of 1934 (the ORF as follows:
Commission, 100 F Street NE, ‘‘Act’’) 2 and Rule 19b–4 thereunder,3
Washington, DC 20549–1090. The Options Regulatory Fee will be
notice is hereby given that, on March assessed on each OTP Holder or OTP Firm
All submissions should refer to File 23, 2018, NYSE Arca, Inc. (the for all options transactions executed or
Number SR–ISE–2018–24. This file ‘‘Exchange’’ or ‘‘NYSE Arca’’) filed with cleared by the OTP Holder or OTP Firm that
number should be included on the the Securities and Exchange are cleared by The Options Clearing
subject line if email is used. To help the Commission (the ‘‘Commission’’) the Corporation (‘‘OCC’’) in the customer range
Commission process and review your regardless of the exchange on which the
proposed rule change as described in transaction occurs. The fee is collected
comments more efficiently, please use Items I, II, and III below, which Items indirectly from OTP Holders or OTP Firms
only one method. The Commission will have been prepared by the self- through their clearing firms by the OCC on
post all comments on the Commission’s regulatory organization. The behalf of NYSE Arca. Effective December 1,
internet website (http://www.sec.gov/ Commission is publishing this notice to 2012, an OTP Holder or OTP Firm shall not
rules/sro.shtml). Copies of the be assessed the fee until it has satisfied
solicit comments on the proposed rule
submission, all subsequent applicable technological requirements
change from interested persons.
amendments, all written statements necessary to commence operations on NYSE
with respect to the proposed rule I. Self-Regulatory Organization’s Arca. The Exchange may only increase or
change that are filed with the Statement of the Terms of Substance of decrease the Options Regulatory Fee semi-
Commission, and all written annually, and any such fee change will be
the Proposed Rule Change effective on the first business day of February
communications relating to the or August. The Exchange will notify
proposed rule change between the The Exchange proposes to amend the participants via a Trader Update of any
Commission and any person, other than NYSE Arca Options Fee Schedule (‘‘Fee change in the amount of the fee at least 30
those that may be withheld from the Schedule’’) by modifying the calendar days prior to the effective date of
public in accordance with the description of the Options Regulatory the change.4
provisions of 5 U.S.C. 552, will be Fee (‘‘ORF’’). The proposed rule change The Exchange proposes to modify this
available for website viewing and is available on the Exchange’s website at description to more accurately reflect
printing in the Commission’s Public www.nyse.com, at the principal office of how the ORF is imposed. Specifically,
Reference Room, 100 F Street NE, the Exchange, and at the Commission’s the ORF is assessed to each OTP Holder
Washington, DC 20549 on official Public Reference Room. or OTP Firm (referred to herein
business days between the hours of collectively as ‘‘OTP Holders’’) for all
10:00 a.m. and 3:00 p.m. Copies of the II. Self-Regulatory Organization’s
options transactions cleared (but not
filing also will be available for Statement of the Purpose of, and
necessarily executed) by an OTP Holder
inspection and copying at the principal Statutory Basis for, the Proposed Rule
through the OCC in the customer range
office of the Exchange. All comments Change regardless of the exchange on which the
received will be posted without change. transaction occurs. The ORF is only
Persons submitting comments are In its filing with the Commission, the
self-regulatory organization included assessed to OTP Holders that act as the
cautioned that we do not redact or edit clearing firm for the transaction,
personal identifying information from statements concerning the purpose of,
and basis for, the proposed rule change regardless of whether the executing firm
comment submissions. You should (if different from the clearing firm) is an
submit only information that you wish and discussed any comments it received
OTP Holder.5 Thus, the Exchange
to make available publicly. All on the proposed rule change. The text
proposes to delete the words ‘‘executed
submissions should refer to File of those statements may be examined at
or’’ from the current description of the
Number SR–ISE–2018–24, and should the places specified in Item IV below. ORF, and to make clear that the ORF is
be submitted on or before May 1, 2018 The Exchange has prepared summaries, assessed ‘‘to each OTP Holder or OTP
For the Commission, by the Division of set forth in sections A, B, and C below,
Trading and Markets, pursuant to delegated of the most significant parts of such 4 See Fee Schedule, NYSE Arca GENERAL
daltland on DSKBBV9HB2PROD with NOTICES
authority.13 statements. OPTIONS and TRADING PERMIT (OTP) FEES,
Eduardo A. Aleman, Regulatory Fees, Options Regulatory Fee, available
here, https://www.nyse.com/publicdocs/nyse/
Assistant Secretary. markets/arca-options/NYSE_Arca_Options_Fee_
[FR Doc. 2018–07240 Filed 4–9–18; 8:45 am] Schedule.pdf.
5 The Exchange uses reports from OCC to
BILLING CODE 8011–01–P 1 15 U.S.C. 78s(b)(1).
determine the identity of the clearing firm and
2 15 U.S.C. 78a. compares that to the list of OTP Holders for billing
13 17 CFR 200.30–3(a)(12). 3 17 CFR 240.19b–4. purposes.
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![Federal Register / Vol. 83, No. 69 / Tuesday, April 10, 2018 / Notices 15439
and requires greater expenditure of address any competitive issues but Commission, 100 F Street NE,
human and technical resources than rather to provide more clarity and Washington, DC 20549–1090.
regulating OTP Holders’ non-customer transparency regarding how the All submissions should refer to File No.
trading activity. The Exchange believes Exchange assesses and collects the ORF. SR–NYSEArca–2018–19. This file
the ORF is designed to be fair by The Exchange believes any burden on number should be included on the
assessing fees to those OTP Holders that competition imposed by the proposed subject line if email is used. To help the
require more Exchange regulatory rule change is outweighed by the need Commission process and review your
services based on the amount of to help the Exchange adequately fund comments more efficiently, please use
customer options business they its regulatory activities to ensure only one method. The Commission will
conduct. compliance with the Exchange Act.
The Exchange believes it is post all comments on the Commission’s
reasonable, equitable and C. Self-Regulatory Organization’s internet website (http://www.sec.gov/
nondiscriminatory to not impose the Statement on Comments on the rules/sro.shtml). Copies of the
ORF on outbound linkage trades. Proposed Rule Change Received From submission, all subsequent
Linkage trades’’ are tagged in the Members, Participants, or Others amendments, all written statements
Exchange’s system, so the Exchange can with respect to the proposed rule
No written comments were solicited
distinguish them from other trades. A change that are filed with the
or received with respect to the proposed
customer order routed to another Commission, and all written
rule change.
exchange results in two customer trades, communications relating to the
one from the originating exchange and III. Date of Effectiveness of the proposed rule change between the
one from the recipient exchange. Proposed Rule Change and Timing for Commission and any person, other than
Charging ORF on both trades could Commission Action those that may be withheld from the
result in double-billing of ORF for a The foregoing rule change is effective public in accordance with the
single customer order, thus the upon filing pursuant to Section provisions of 5 U.S.C. 552, will be
Exchange will not assess ORF on 19(b)(3)(A) 15 of the Act and available for website viewing and
outbound linkage trades in a linkage subparagraph (f)(2) of Rule 19b–4 16 printing in the Commission’s Public
scenario. thereunder, because it establishes a due, Reference Room, 100 F Street NE,
The Exchange believes that the fee, or other charge imposed by the Washington, DC 20549, on official
proposal deleting outdated reference to Exchange. business days between the hours of
long-past effective dates and removing At any time within 60 days of the 10:00 a.m. and 3:00 p.m. Copies of the
the word ‘‘indirectly’’ is reasonable as it filing of such proposed rule change, the filing also will be available for
would streamline the Fee Schedule by Commission summarily may inspection and copying at the principal
removing superfluous language thereby temporarily suspend such rule change if office of the Exchange. All comments
making the Fee Schedule easier for it appears to the Commission that such received will be posted without change.
market participants to navigate. action is necessary or appropriate in the Persons submitting comments are
The ORF is designed to recover a public interest, for the protection of cautioned that we do not redact or edit
material portion of the costs to the investors, or otherwise in furtherance of personal identifying information from
Exchange of the supervision and the purposes of the Act. If the comment submissions. You should
regulation of OTP Holder customer Commission takes such action, the submit only information that you wish
options business, including performing Commission shall institute proceedings to make available publicly. All
routine surveillances and investigations, under Section 19(b)(2)(B) 17 of the Act to submissions should refer to File No.
as well as policy, rulemaking, determine whether the proposed rule SR–NYSEArca–2018–19, and should be
interpretive, and enforcement activities. change should be approved or submitted on or before May 1, 2018.
The Exchange monitors the amount of disapproved. For the Commission, by the Division of
revenue collected from the ORF to Trading and Markets, pursuant to delegated
ensure that this revenue, in combination IV. Solicitation of Comments authority.18
with other regulatory fees and fines, Interested persons are invited to Eduardo A. Aleman,
does not exceed regulatory costs. The submit written data, views, and Assistant Secretary.
Exchange has designed the ORF to arguments concerning the foregoing, [FR Doc. 2018–07244 Filed 4–9–18; 8:45 am]
generate revenues that, when combined including whether the proposed rule BILLING CODE 8011–01–P
with all of the Exchange’s other change is consistent with the Act.
regulatory fees, would be less than or Comments may be submitted by any of
equal to the Exchange’s regulatory costs, the following methods: SECURITIES AND EXCHANGE
which is consistent with the view of the COMMISSION
Securities and Exchange Commission Electronic Comments
(‘‘Commission’’) that regulatory fees be • Use the Commission’s internet [Release No. 34–82988; File No. SR–GEMX–
used for regulatory purposes and not to comment form (http://www.sec.gov/ 2018–11]
support the Exchange’s business side. In rules/sro.shtml); or
this regard, the Exchange believes that • Send an email to rule-comments@ Self-Regulatory Organizations; Nasdaq
the ORF is reasonable. sec.gov. Please include File No. SR– GEMX, LLC; Notice of Filing and
NYSEArca–2018–19 on the subject line. Immediate Effectiveness of Proposed
B. Self-Regulatory Organization’s
Rule Change To Amend Chapter IV of
daltland on DSKBBV9HB2PROD with NOTICES
Statement on Burden on Competition Paper Comments the Exchange’s Schedule of Fees
The Exchange does not believe that • Send paper comments in triplicate
the proposed rule change will impose April 4, 2018.
to Secretary, Securities and Exchange
any burden on competition that is not Pursuant to Section 19(b)(1) of the
necessary or appropriate in furtherance 15 15 U.S.C. 78s(b)(3)(A). Securities Exchange Act of 1934
of the purposes of the Act. The 16 17 CFR 240.19b–4(f)(2).
proposed rule change is not intended to 17 15 U.S.C. 78s(b)(2)(B). 18 17 CFR 200.30–3(a)(12).
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Document Created: 2018-04-09 23:51:49
Document Modified: 2018-04-09 23:51:49
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
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| Section | Notices | |
| FR Citation | 83 FR 15437 |
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