83 FR 2700 - 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 12 (January 18, 2018)
Federal Register Volume 83, Issue 12 (January 18, 2018)
| Page Range | 2700-2704 | |
| FR Document | 2018-00723 |
[Federal Register Volume 83, Number 12 (Thursday, January 18, 2018)] [Notices] [Pages 2700-2704] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-00723] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-82489; File No. SR-NYSEAMER-2017-42] Self-Regulatory Organizations; NYSE American LLC; Notice of Filing and Immediate Effectiveness of Proposed Change To Modify the NYSE American Options Fee Schedule January 11, 2018. Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 1934 (``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given that, on December 29, 2017, NYSE American LLC (``Exchange'' or ``NYSE American'') filed with the Securities and Exchange Commission (``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 modify the NYSE American Options Fee Schedule. 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 portions of the Fee Schedule, as described below, effective January 1, 2018. Market Maker Sliding Scale-Electronic (``Sliding Scale'') Section I.C. of the Fee Schedule sets forth the Sliding Scale of transaction fees charged to NYSE American Options Marker [sic] Makers (referred to as Market Makers herein), which fees decrease upon the Market Maker achieving higher monthly volumes.\4\ Currently, Market Makers that have monthly volume on the Exchange of 0.15% or less of total Industry Customer Equity and ETF Option Volume are charged a base rate of $0.25 per contract and, these same market participants, upon reaching certain volume thresholds, or Tiers, receive the same per contract reduction for volume in each respective tier, as set forth in the table below. In addition, the Exchange charges a lower per contract base rate (of $0.23) to Market Makers that participate in a Prepayment Program, with lower marginal rates applied to volumes in successive tiers. --------------------------------------------------------------------------- \4\ See Fee Schedule, Section I.C., available here, https://www.nyse.com/publicdocs/nyse/markets/american-options/NYSE_American_Options_Fee_Schedule.pdf (excluding any volumes attributable to Mini Options, QCC trades, CUBE Auctions, and Strategy Execution Fee Caps, as these transactions are subject to separate pricing described in Fee Schedule Sections I.B., I.F., I.G., and I.J, respectively). The volume thresholds are based on a Market Makers' volume transacted Electronically as a percentage of total industry Customer equity and Exchange Traded Fund (``ETF'') options volumes (``ADV'') as reported by the Options Clearing Corporation (the ``OCC''). See OCC Monthly Statistics Reports, available here, http://www.theocc.com/webapps/monthly-volume-reports. ---------------------------------------------------------------------------------------------------------------- Market Maker Electronic Monthly Rate per contract if Monthly Volume from Volume as a % of Posted Volume is more than .85% of Total Tier Industry Customer Rate per Industry Customer Equity and ETF Option Equity and Exchange contract Volume or for any NYSE American Market Maker Traded Fund (``ETF'') participating in a Prepayment Program Option Volume pursuant to Section I.D. ---------------------------------------------------------------------------------------------------------------- 1........................ 0.00% to 0.15%........ $0.25 $0.23 2........................ >0.15% to 0.60%....... 0.22 0.18 3........................ >0.60% to 1.10%....... 0.14 0.08 4........................ >1.10% to 1.45%....... 0.10 0.05 5........................ >1.45% to 1.80%....... 0.07 0.04 6........................ >1.80%................ 0.05 0.02 ---------------------------------------------------------------------------------------------------------------- [[Page 2701]] * * * * * The Exchange proposes to replace the current table that describes the Sliding Scale with the table below, which modifies qualification thresholds and associated transaction fees for all Electronic Marker [sic] Maker volume: ---------------------------------------------------------------------------------------------------------------- Prepayment Program Participant Rates Market Maker Rate per Rate per ------------------------------- Tier Electronic ADV as a % contract for contract for Rate per of TCADV Non-Take Take Volume contract for Rate per Volume \1\ Non-Take contract for Volume \1\ Take Volume ---------------------------------------------------------------------------------------------------------------- 1........................ 0.00% to 0.20%....... $0.25 $0.25 $0.22 $0.24 2........................ >0.20% to 0.65%...... 0.22 0.24 0.17 0.20 3........................ >0.65% to 1.40%...... 0.12 0.17 0.08 0.11 4........................ >1.40% to 2.00%...... 0.09 0.14 0.05 0.08 5........................ >2.00%............... 0.06 0.09 0.03 0.06 ---------------------------------------------------------------------------------------------------------------- First, the Exchange proposes to restate the volume thresholds in terms of a Market Maker's average daily volume or ADV as a percent of the TCADV, a defined term,\5\ which is mathematically equivalent to a Market Maker's monthly total volume as a percent of the Industry Customer equity and ETF Total Volume. This proposed change would add clarity and internal consistency to the Fee Schedule.\6\ --------------------------------------------------------------------------- \5\ See Fee Schedule, supra note 4, Key Terms and Definitions (defining TCADV as ``Total Industry Customer equity and ETF option average daily volume. TCADV includes OCC calculated Customer volume of all types, including Complex Order transactions and QCC transactions, in equity and ETF options''). \6\ See, e.g., Fee Schedule, supra note 4, Section I.A. and I.E. (similarly expressing qualification thresholds in terms of percentage of TCADV). --------------------------------------------------------------------------- Second, as shown in the table above, the Exchange proposes to:Increase the minimum volume necessary to achieve each successive Tier; Differentiate the type of volume that qualifies for specific rates by applying different rates depending on whether the Market Maker volume is take or non-take volume; \7\ \8\ and --------------------------------------------------------------------------- \7\ For purposes of the Sliding Scale, ``all eligible volume that does not remove liquidity'' would be considered non-take volume; whereas any volume that removes liquidity would be considered take volume. '' See proposed Fee Schedule, Section I.C., note 1. For example, any Market Maker transaction that interacts with resting liquidity is take volume. \8\ The Exchange notes that other options exchanges similarly differentiate fees based on maker-taker activity. See, e.g., MIAX Options fee schedule, at p.1, available here, https://www.miaxoptions.com/sites/default/files/fee_schedule-files/MIAX_Options_Fee_Schedule_12012017B.pdf (``Market Maker Sliding Scale''); Cboe Exchange, Inc. fee schedule, at p. 3 available here, http://www.cboe.com/publish/feeschedule/CBOEFeeSchedule.pdf (``Liquidity Provider Sliding Scale''). --------------------------------------------------------------------------- Reduce the number of Tiers from 6 to 5. Third, because the Exchange will be offering different rates depending on whether volume is make or take, the Exchange proposes to eliminate as unnecessary the minimum volume threshold for posted volume (of 0.85% of TCADV) to qualify for a reduced per contract rate. The Exchange proposes to continue to provide reduced rates to Market Makers that participate in the Prepayment Program. The proposed changes are designed to incent Market Makers to transact more business on the Exchange, including by posting a more meaningful percentage of TCADV, executing more take volume, and committing to transact a certain amount of business on the Exchange by enrolling in the Prepayment Program.\9\ --------------------------------------------------------------------------- \9\ See proposed Fee Schedule, Section I.C. See also Fee Schedule, supra note 4, Section I.D. (Prepayment Program) (describing the 1- and 3-Year Prepayment Programs, including requisite timelines for committing and prepaying as well as various conditions to opt out of the 3-Year Prepayment Program). --------------------------------------------------------------------------- Prepayment Program The Exchange also proposes to update the Prepayment Programs that it will offer beginning in 2018. In January 2015, the Exchange introduced two Prepayment Programs--for a 1- or 3- year term--to allow Market Makers to prepay a portion of the charges incurred for transactions executed on the Exchange.\10\ In 2016, the Exchange introduced a ``Balance of the Year'' program that allowed Market Makers to commit to prepay a portion of their transaction charges for some portion of the calendar year, for a maximum of three-quarters of the year.\11\ The terms of the current 3-Year, and the subsequently modified 1-Year, Prepayment Programs terminate at the end of 2017.\12\ The Exchange is proposing to modify the Prepayment Programs that it offers beginning in 2018 to encourage broader participation by Market Maker firms. Specifically, the Exchange proposes to eliminate reference to the 3 Year Prepayment Program, which has expired, and to maintain the 1 Year and Balance of the Year Prepayment Programs, as described below.\13\ --------------------------------------------------------------------------- \10\ See Securities Exchange Act Release No. 74086 (January 16, 2015), 80 FR 3701 (January 23, 2015) (SR-NYSEMKT-2015-4) (introducing the prepayment programs). \11\ See Securities Exchange Act Release No. 79737 (January 4, 2016), 82 FR 3052 (January 10, 2017) (modifying the description of the Prepayment Programs and introducing the Balance of the Year program). \12\ See Fee Schedule, Section I.D (Prepayment Programs), supra note 4. \13\ See proposed Fee Schedule, Section I.D (Prepayment Programs) (deleting all references to the 3 Year Prepayment Program, including reference to early termination and the ability to opt out; and updating references to 1-Year and Balance of the Year Prepayment Programs to reflect 2018 calendar year and other program updates as described herein). --------------------------------------------------------------------------- The Exchange proposes to continue to offer the 1 Year Prepayment Program, without altering any aspects of the Program, including offering the same $3 million prepayment amount as was offered for 2017.\14\ Participants in the 1 Year Prepayment Program would continue to qualify its Affiliated (or Appointed) OFP to be eligible to receive the enhanced credit(s) under the American Customer Engagement (``ACE'') Program, including revised credits as proposed herein (and discussed further below).\15\ To enroll in the proposed 1 Year Prepayment Program, a Market Maker would have to notify the Exchange by the last business day before the start of the new (following) year and remit payment to the Exchange by the last business day of January the following year (i.e., the year in which the prepayments would be applied). Thus, any Market Maker that would like to participate in the 1 Year Prepayment Program for 2018 should notify the Exchange of its intent by December 29, 2017and remit the $3 million prepayment by January 31, 2018.\16\ --------------------------------------------------------------------------- \14\ See proposed Fee Schedule, Section I.D. \15\ See Fee Schedule, Section I.E. (American Customer Engagement (``ACE'') Program--Standard Options), supra note 4. \16\ See proposed Fee Schedule, Section I.D (Prepayment Programs) (modifying the description of the 1Year Prepayment Programs to remove reference to a specific calendar year and instead maintain requirement [sic] that Market Makers would [sic] the Exchange of their commitment to the Program by sending an email the Exchange at [email protected]). --------------------------------------------------------------------------- [[Page 2702]] Next, the Exchange is proposing to continue to offer a ``Balance of the Year'' Prepayment Program, without altering any material aspects of the Program. The Exchange would continue to require the following prepayments based on the quarter in which a Market Maker joined: ---------------------------------------------------------------------------------------------------------------- 2nd Quarter 3rd Quarter 4th Quarter ---------------------------------------------------------------------------------------------------------------- Prepayment Amount and Payment Schedule.......................... $2,475,000 $1,800,000 $975,000 ---------------------------------------------------------------------------------------------------------------- Consistent with the current Balance of the Year Prepayment Program, a Market Maker that participates in the Balance of the Year Program would receive a credit equal to its prepayment amount (i.e., $2,475,000; $1,800,000; or $975,000, respectively) toward certain fees it incurs on the Exchange.\17\ As proposed, Marker [sic] Makers that enroll in the Balance of the Year Program would be required to notify the Exchange by the last business day before the start of the new (following) quarter (e.g., to participate for three-quarters of the year, notice must be given by the last business day of the first quarter of that year, etc.).\18\ In addition, consistent with 2017, participants must remit payment by the last business day in the first month of the respective quarter (i.e., the quarter in which prepayments will begin to apply). However, the Exchange proposes to remove reference to specific dates, which were tied to prior calendar years, to avoid having to revise the Fee Schedule on an annual basis. Thus, as proposed, the deadlines to participate in the Balance of the Year Prepayment Program for each quarter would be the last business day in April, July and October, for the second, third and fourth quarter, respectively. --------------------------------------------------------------------------- \17\ See id. Similarly, just as with the 1-Year Prepayment Program, the Exchange would apply the prepayment as a credit against certain charges incurred on the Exchange. Once the prepayment credit has been exhausted, the Exchange would invoice the Market Maker at the appropriate rates. In the event that a Market Maker does not conduct sufficient activity to exhaust the entirety of their prepayment credit within the calendar year, there would be no refunds issued for any unused portion of their prepayment credit. See id. \18\ See id. (providing that Market Makers would be required to notify the Exchange of their commitment to the Program by sending an email the Exchange at [email protected]). --------------------------------------------------------------------------- Finally, the Exchange proposes to make clear that any prepayments made pursuant to the 1 Year Prepayment Program 1 or the Balance of the Year Prepayment Program would apply to transactions effected using the BOLD Mechanism, pursuant to Section I.M. of the Fee Schedule.\19\ --------------------------------------------------------------------------- \19\ See id. The Exchange notes that after introducing fees associated with BOLD transactions in 2017, it modified various aspects of the Fee Schedule to account for these fees. However, the Exchange failed to make clear that payments under any of the Prepayment Programs would count towards BOLD transactions and seeks to correct this oversight with this proposed change. See id. --------------------------------------------------------------------------- American Customer Engagement (``ACE'') Program Section I. E. of the Fee Schedule describes the Exchange's ACE Program. The ACE Program features a base tier and five higher tiers expressed as a percentage of TCADV \20\ and provides two alternative methods by which Order Flow Providers (each an ``OFP'') may receive per contract credits for Electronic Customer volume that the OFP, as agent, submits to the Exchange.\21\ The Exchange is proposing to modify certain credits offered in the ACE Program. --------------------------------------------------------------------------- \20\ See Fee Schedule, Section I.E., supra note 4. The Exchange also proposes to make a grammatical change to the second sentence of the introductory paragraph by changing the word ``is'' to ``are,'' which should add clarity to the fee schedule. See proposed Fee Schedule, Section I.E. \21\ The volume thresholds are based on an OFP's Customer volume transacted Electronically as a percentage of TCADV as reported by the OCC. See OCC Monthly Statistics Reports, available here, http://www.theocc.com/webapps/monthly-volume-reports. --------------------------------------------------------------------------- First, the Exchange proposes to delete the ACE credits for 3 Year Enhanced Customer Volume Credits, and any references thereto, to reflect that the 3 Year Prepayment Program has expired, as noted above.\22\ The Exchange believes these changes would add clarity, transparency and internal consistency to the Fee Schedule. --------------------------------------------------------------------------- \22\ See proposed Fee Schedule, Section I. E. --------------------------------------------------------------------------- Next, the Exchange proposes to modify the enhanced per contract credit applicable to Customer Complex Orders for 1 Year and Balance of the Year Prepayment Participants. Specially, the Exchange proposes to reduce the credit for Tier 1 from $0.20 to $0.19 per contract, while increasing the per contract credit for Tier 4 and 5, from $0.21 and $0.23, respectively, to $0.22 and $0.24, respectively. The Exchange also proposes to modify the per contract credit applicable to Simple Orders on Customer volume for Tiers 3, 4 and 5. Specifically, the Exchange proposes to reduce the credit for Tier 3, 4, and 5 from $0.19, $0.20, and $0.22, respectively, to $0.17, $0.19, and $0.21, respectively. And, the Exchange proposes to increase the enhanced per contract credit applied to Simple Orders on Customer volume for Prepayment participants that qualify for Tier 5 from $0.23 to $0.24. The proposed changes to credits payable on Customer volume are intended to encourage ATP Holders and their Affiliates and/or Appointed parties to participate in the Prepayment Programs, while still rewarding OFPs that direct significant amounts of Customer volume to the Exchange with credits on transactions. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with Section 6(b) of the Act,\23\ in general, and furthers the objectives of Sections 6(b)(4) and (5) of the Act,\24\ 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. --------------------------------------------------------------------------- \23\ 15 U.S.C. 78f(b). \24\ 15 U.S.C. 78f(b)(4) and (5). --------------------------------------------------------------------------- Sliding Scale The Exchange believes that the proposed modifications to the Sliding Scale are reasonable, equitable and not unfairly discriminatory for a number of reasons. First, the Sliding Scale is available to all Market Makers and is based on the amount of business transacted on--and is designed to attract greater volume to--the Exchange. In addition, the elimination of the alternative basis to qualify for a reduced rate by posting monthly volume of at least 0.85% TCADV (if not participating in a Prepayment Program) is not unfairly discriminatory because Market Makers that would like to receive a more favorable per contract rate under the Sliding Scale have the option to commit to one of the Prepayment Programs, which commitment increases liquidity on the Exchange to the benefit of all market participants. Moreover, all Market Makers will be subject to the proposal to impose differing rates [[Page 2703]] depending on whether volume is make or take volume. The proposed adjustments are designed to encourage Market Makers to commit to directing their order flow to the Exchange, which would increase volume and liquidity, to the benefit of all market participants by providing more trading opportunities and tighter spreads. Further, the proposed Sliding Scale thresholds and rates are competitive with fees charged by other exchanges and are designed to attract (and compete for) order flow to the Exchange, which provides a greater opportunity for trading by all market participants.\25\ In addition, the proposed changes, which are designed to incent market participants to increase the orders sent directly to the Exchange, should provide liquidity that supports the quality of price discovery and promotes market transparency to the benefit of all market participants. Finally, the Exchange notes that other exchanges have established transaction fees for Market Makers based on maker and taker activity.\26\ --------------------------------------------------------------------------- \25\ See MIAX and Cboe fee schedules, supra note 8. \26\ See id. --------------------------------------------------------------------------- Prepayment Program The Exchange believes that the proposed modifications to the Prepayment Programs are reasonable, equitable and not unfairly discriminatory for a number of reasons. First, all of the Prepayment Programs offered on the Exchange are optional and Market Makers can elect to participate (or elect not to participate). Given the expiration of the 3 Year Prepayment Program, the Exchange believes that the goals of the Prepayment Program continue to be served by continuing to offer the 1 Year and Prepayment Program as well as the Balance of the Year Program. The Exchange believes that continuing to offer these Programs would provide Market Makers with the flexibility to join annually or at various points in the year, which may encourage broader participation in the Prepayment Programs. The Exchange anticipates that the potential greater capital commitment and resulting liquidity on the Exchange would benefit all market participants (including non-Market Makers). Moreover, the Exchange notes that other options exchanges likewise offer Prepayment Programs to market makers that may be joined after the start of the year.\27\ The Exchange also notes that, similar to the Sliding Scale, the Prepayment Program is designed to incent Market Makers to commit to directing their order flow to the Exchange, which would benefit all market participants by expanding liquidity, providing more trading opportunities and tighter spreads, even to those market participants that are not eligible for the Programs. Thus, the Exchange believes the Prepayment Program, as modified, is reasonable, equitable and not unfairly discriminatory to others. --------------------------------------------------------------------------- \27\ See, e.g., Cboe fee schedule, supra note 8, at p. 18, footnote 10 (a market maker may be permitted to pay a pro-rated amount of the $2.4 million if, for example, they join the program mid-year). --------------------------------------------------------------------------- In addition, the Exchange believes that the proposal to replace specific dates with the term ``last business day'' removes impediments to and perfects the mechanism of a free and open market by eliminating redundant annual rule filings when the Exchange is not changing its fees. The Exchange further believes that the proposal removes impediments to and perfects the mechanism of a free and open market by reducing potential confusion among market participants and the investing public who may see a rule filing and mistake it for a fee change when in fact a fee is not changing. The proposed change is also reasonable, equitable and not unfairly discriminatory as it is designed to add clarity to the Fee Schedule to the benefit of all market participants. The Exchange believes that the proposed change to make clear that fees associated with BOLD transactions would be applied against prepayments made under the Balance of the Year Program would add clarity, transparency and internal consistency to the Fee Schedule. ACE Program The Exchange believes the proposed changes to the ACE Program are reasonable, equitable and not unfairly discriminatory for a number of reasons. First, the proposed changes to increase three of the credits associated with participants in one of the Prepayment Programs are designed to incent market participants to increase the orders sent directly to the Exchange and therefore provide liquidity that supports the quality of price discovery and promotes market transparency to the benefit of all market participants. The Exchange believes that the proposed fee change would directly relate to the activity of a Market Maker and the activity of an affiliated ATP Holder on the Exchange, thereby encouraging increased trading activity. The Exchange believes that the proposal to amend the credits associated with various Tiers of the ACE Program is reasonable because it provides ATP Holders affiliated with an NYSE American Options Market Maker with additional incentives to participate in the Prepayment Program. The Exchange believes that the proposal to slightly reduce the credits for Simple Orders not associated with participants in one of the Prepayment Programs are likewise reasonable, equitable and not unfairly discriminatory because such credits are within the range offered by competing options exchanges.\28\ --------------------------------------------------------------------------- \28\ See id., Volume Incentive Program, at p. 3 (offering per contracts credits ranging from $0.09-$0.14 for simple orders). --------------------------------------------------------------------------- The Exchange's proposed grammatical change (see supra note 19) is reasonable, equitable and not unfairly discriminatory as it is designed to add clarity to the Fee Schedule to the benefit of all market participants. B. Self-Regulatory Organization's Statement on Burden on Competition In accordance with Section 6(b)(8) of the Act,\29\ 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 that the proposed changes relating to the Sliding Scale, the Prepayment Program, and the ACE Program may increase both intermarket and intramarket competition by incenting participants to direct their orders to the Exchange, which would enhance the quality of quoting and may increase the volume of contracts traded on the Exchange. To the extent that there is an additional competitive burden on non-NYSE American Market Makers, the Exchange believes that this is appropriate because Market Makers have heightened obligations that other market participants do not and the proposal should incent market participants to direct additional order flow to the Exchange, and thus provide additional liquidity that enhances the quality of its markets and increases the volume of contracts traded here. To the extent that this purpose is achieved, all of the Exchange's market participants should benefit from the improved market liquidity. Enhanced market quality and increased transaction volume that results from the anticipated increase in order flow directed to the Exchange will benefit all market participants and improve competition on the Exchange. --------------------------------------------------------------------------- \29\ 15 U.S.C. 78f(b)(8). --------------------------------------------------------------------------- Given the robust competition for volume among options markets, many of which offer the same products, implementing programs to attract order flow similar to the ones being proposed in this filing, are consistent with the above-mentioned goals of the Act. The [[Page 2704]] 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) \30\ of the Act and subparagraph (f)(2) of Rule 19b-4 \31\ thereunder, because it establishes a due, fee, or other charge imposed by the Exchange. --------------------------------------------------------------------------- \30\ 15 U.S.C. 78s(b)(3)(A). \31\ 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) \32\ of the Act to determine whether the proposed rule change should be approved or disapproved. --------------------------------------------------------------------------- \32\ 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 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-2017-42 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-2017-42. 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-2017-42 and should be submitted on or before February 8, 2018. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\33\ --------------------------------------------------------------------------- \33\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2018-00723 Filed 1-17-18; 8:45 am] BILLING CODE 8011-01-P
![2700 Federal Register / Vol. 83, No. 12 / Thursday, January 18, 2018 / Notices
comments more efficiently, please use SECURITIES AND EXCHANGE and basis for, the proposed rule change
only one method. The Commission will COMMISSION and discussed any comments it received
post all comments on the Commission’s on the proposed rule change. The text
[Release No. 34–82489; File No. SR–
internet website (http://www.sec.gov/ NYSEAMER–2017–42]
of those statements may be examined at
rules/sro.shtml). Copies of the the places specified in Item IV below.
submission, all subsequent Self-Regulatory Organizations; NYSE The Exchange has prepared summaries,
amendments, all written statements American LLC; Notice of Filing and set forth in sections A, B, and C below,
with respect to the proposed rule Immediate Effectiveness of Proposed of the most significant parts of such
change that are filed with the Change To Modify the NYSE American statements.
Commission, and all written Options Fee Schedule A. Self-Regulatory Organization’s
communications relating to the January 11, 2018. Statement of the Purpose of, and the
proposed rule change between the Pursuant to Section 19(b)(1) 1 of the Statutory Basis for, the Proposed Rule
Commission and any person, other than Securities Exchange Act of 1934 Change
those that may be withheld from the (‘‘Act’’) 2 and Rule 19b–4 thereunder,3 1. Purpose
public in accordance with the notice is hereby given that, on December
provisions of 5 U.S.C. 552, will be 29, 2017, NYSE American LLC The purpose of this filing is to modify
available for website viewing and (‘‘Exchange’’ or ‘‘NYSE American’’) filed portions of the Fee Schedule, as
printing in the Commission’s Public with the Securities and Exchange described below, effective January 1,
Reference Room, 100 F Street NE, Commission (‘‘Commission’’) the 2018.
Washington, DC 20549 on official proposed rule change as described in Market Maker Sliding Scale-Electronic
business days between the hours of Items I, II, and III below, which Items (‘‘Sliding Scale’’)
10:00 a.m. and 3:00 p.m. Copies of the have been prepared by the self-
filing also will be available for regulatory organization. The Section I.C. of the Fee Schedule sets
Commission is publishing this notice to forth the Sliding Scale of transaction
inspection and copying at the principal
solicit comments on the proposed rule fees charged to NYSE American Options
office of the Exchange. All comments
change from interested persons. Marker [sic] Makers (referred to as
received will be posted without change.
Market Makers herein), which fees
Persons submitting comments are I. Self-Regulatory Organization’s decrease upon the Market Maker
cautioned that we do not redact or edit Statement of the Terms of Substance of achieving higher monthly volumes.4
personal identifying information from the Proposed Rule Change Currently, Market Makers that have
comment submissions. You should monthly volume on the Exchange of
The Exchange proposes to modify the
submit only information that you wish NYSE American Options Fee Schedule. 0.15% or less of total Industry Customer
to make available publicly. All The proposed change is available on the Equity and ETF Option Volume are
submissions should refer to File Exchange’s website at www.nyse.com, at charged a base rate of $0.25 per contract
Number SR–NYSEArca–2017–138 and the principal office of the Exchange, and and, these same market participants,
should be submitted on or before at the Commission’s Public Reference upon reaching certain volume
February 8, 2018. Room. thresholds, or Tiers, receive the same
For the Commission, by the Division of per contract reduction for volume in
II. Self-Regulatory Organization’s each respective tier, as set forth in the
Trading and Markets, pursuant to delegated Statement of the Purpose of, and
authority.27 table below. In addition, the Exchange
Statutory Basis for, the Proposed Rule charges a lower per contract base rate (of
Eduardo A. Aleman, Change $0.23) to Market Makers that participate
Assistant Secretary. In its filing with the Commission, the in a Prepayment Program, with lower
[FR Doc. 2018–00721 Filed 1–17–18; 8:45 am] self-regulatory organization included marginal rates applied to volumes in
BILLING CODE 8011–01–P statements concerning the purpose of, successive tiers.
Rate per contract if Monthly
Volume from Posted Volume is
more than .85% of Total Indus-
Market Maker Electronic Monthly Volume as a % of Industry Customer Rate per try Customer Equity and ETF
Tier Equity and Exchange Traded Fund (‘‘ETF’’) Option Volume contract Option Volume or for any NYSE
American Market Maker partici-
pating in a Prepayment Pro-
gram pursuant to Section I.D.
1 ..................... 0.00% to 0.15% ............................................................................................... $0.25 $0.23
2 ..................... >0.15% to 0.60% ............................................................................................. 0.22 0.18
3 ..................... >0.60% to 1.10% ............................................................................................. 0.14 0.08
4 ..................... >1.10% to 1.45% ............................................................................................. 0.10 0.05
5 ..................... >1.45% to 1.80% ............................................................................................. 0.07 0.04
6 ..................... >1.80% ............................................................................................................ 0.05 0.02
sradovich on DSK3GMQ082PROD with NOTICES
27 17
CFR 200.30–3(a)(12). american-options/NYSE_American_Options_Fee_ a Market Makers’ volume transacted Electronically
1 15
U.S.C.78s(b)(1). Schedule.pdf (excluding any volumes attributable as a percentage of total industry Customer equity
2 15 U.S.C. 78a. to Mini Options, QCC trades, CUBE Auctions, and and Exchange Traded Fund (‘‘ETF’’) options
3 17 CFR 240.19b–4.
Strategy Execution Fee Caps, as these transactions volumes (‘‘ADV’’) as reported by the Options
are subject to separate pricing described in Fee Clearing Corporation (the ‘‘OCC’’). See OCC
4 See Fee Schedule, Section I.C., available here,
Schedule Sections I.B., I.F., I.G., and I.J, Monthly Statistics Reports, available here, http://
https://www.nyse.com/publicdocs/nyse/markets/ respectively). The volume thresholds are based on www.theocc.com/webapps/monthly-volume-reports.
VerDate Sep<11>2014 18:27 Jan 17, 2018 Jkt 244001 PO 00000 Frm 00086 Fmt 4703 Sfmt 4703 E:\FR\FM\18JAN1.SGM 18JAN1](https://thefederalregister.org/doc/83_FR_2712/page/1.svg)
![Federal Register / Vol. 83, No. 12 / Thursday, January 18, 2018 / Notices 2701
* * * * * Scale with the table below, which associated transaction fees for all
The Exchange proposes to replace the modifies qualification thresholds and Electronic Marker [sic] Maker volume:
current table that describes the Sliding
Prepayment Program
Participant Rates
Rate per Rate per
contract for contract for
Tier Market Maker Electronic ADV as a % of TCADV Rate per Rate per
Non-Take Take contract for contract for
Volume 1 Volume Non-Take Take
Volume 1 Volume
1 ..................... 0.00% to 0.20% ................................................................... $0.25 $0.25 $0.22 $0.24
2 ..................... >0.20% to 0.65% ................................................................. 0.22 0.24 0.17 0.20
3 ..................... >0.65% to 1.40% ................................................................. 0.12 0.17 0.08 0.11
4 ..................... >1.40% to 2.00% ................................................................. 0.09 0.14 0.05 0.08
5 ..................... >2.00% ................................................................................ 0.06 0.09 0.03 0.06
First, the Exchange proposes to restate threshold for posted volume (of 0.85% beginning in 2018 to encourage broader
the volume thresholds in terms of a of TCADV) to qualify for a reduced per participation by Market Maker firms.
Market Maker’s average daily volume or contract rate. The Exchange proposes to Specifically, the Exchange proposes to
ADV as a percent of the TCADV, a continue to provide reduced rates to eliminate reference to the 3 Year
defined term,5 which is mathematically Market Makers that participate in the Prepayment Program, which has
equivalent to a Market Maker’s monthly Prepayment Program. expired, and to maintain the 1 Year and
total volume as a percent of the Industry The proposed changes are designed to Balance of the Year Prepayment
Customer equity and ETF Total Volume. incent Market Makers to transact more Programs, as described below.13
This proposed change would add clarity business on the Exchange, including by The Exchange proposes to continue to
and internal consistency to the Fee posting a more meaningful percentage of offer the 1 Year Prepayment Program,
Schedule.6 TCADV, executing more take volume, without altering any aspects of the
Second, as shown in the table above, and committing to transact a certain Program, including offering the same $3
the Exchange proposes to: amount of business on the Exchange by million prepayment amount as was
• Increase the minimum volume enrolling in the Prepayment Program.9 offered for 2017.14 Participants in the 1
necessary to achieve each successive Year Prepayment Program would
Tier; Prepayment Program
continue to qualify its Affiliated (or
• Differentiate the type of volume that The Exchange also proposes to update Appointed) OFP to be eligible to receive
qualifies for specific rates by applying the Prepayment Programs that it will the enhanced credit(s) under the
different rates depending on whether offer beginning in 2018. In January American Customer Engagement
the Market Maker volume is take or non- 2015, the Exchange introduced two (‘‘ACE’’) Program, including revised
take volume; 7 8 and Prepayment Programs—for a 1- or 3- credits as proposed herein (and
• Reduce the number of Tiers from 6 year term—to allow Market Makers to discussed further below).15 To enroll in
to 5. prepay a portion of the charges incurred the proposed 1 Year Prepayment
Third, because the Exchange will be for transactions executed on the Program, a Market Maker would have to
offering different rates depending on Exchange.10 In 2016, the Exchange notify the Exchange by the last business
whether volume is make or take, the introduced a ‘‘Balance of the Year’’ day before the start of the new
Exchange proposes to eliminate as program that allowed Market Makers to (following) year and remit payment to
unnecessary the minimum volume commit to prepay a portion of their the Exchange by the last business day of
transaction charges for some portion of January the following year (i.e., the year
5 See Fee Schedule, supra note 4, Key Terms and
the calendar year, for a maximum of in which the prepayments would be
Definitions (defining TCADV as ‘‘Total Industry
Customer equity and ETF option average daily
three-quarters of the year.11 The terms of applied). Thus, any Market Maker that
volume. TCADV includes OCC calculated Customer the current 3-Year, and the subsequently would like to participate in the 1 Year
volume of all types, including Complex Order modified 1-Year, Prepayment Programs Prepayment Program for 2018 should
transactions and QCC transactions, in equity and terminate at the end of 2017.12 The
ETF options’’). notify the Exchange of its intent by
6 See, e.g., Fee Schedule, supra note 4, Section
Exchange is proposing to modify the December 29, 2017and remit the $3
I.A. and I.E. (similarly expressing qualification Prepayment Programs that it offers million prepayment by January 31,
thresholds in terms of percentage of TCADV). 2018.16
7 For purposes of the Sliding Scale, ‘‘all eligible 9 See proposed Fee Schedule, Section I.C. See
volume that does not remove liquidity’’ would be also Fee Schedule, supra note 4, Section I.D. 13 See proposed Fee Schedule, Section I.D
considered non-take volume; whereas any volume (Prepayment Program) (describing the 1- and 3-Year
that removes liquidity would be considered take Prepayment Programs, including requisite timelines (Prepayment Programs) (deleting all references to
volume. ’’ See proposed Fee Schedule, Section I.C., for committing and prepaying as well as various the 3 Year Prepayment Program, including
note 1. For example, any Market Maker transaction conditions to opt out of the 3-Year Prepayment reference to early termination and the ability to opt
that interacts with resting liquidity is take volume. Program). out; and updating references to 1-Year and Balance
8 The Exchange notes that other options 10 See Securities Exchange Act Release No. 74086 of the Year Prepayment Programs to reflect 2018
(January 16, 2015), 80 FR 3701 (January 23, 2015) calendar year and other program updates as
sradovich on DSK3GMQ082PROD with NOTICES
exchanges similarly differentiate fees based on
(SR–NYSEMKT–2015–4) (introducing the described herein).
maker-taker activity. See, e.g., MIAX Options fee 14 See proposed Fee Schedule, Section I.D.
schedule, at p.1, available here, https:// prepayment programs).
11 See Securities Exchange Act Release No. 79737 15 See Fee Schedule, Section I.E. (American
www.miaxoptions.com/sites/default/files/fee_
schedule-files/MIAX_Options_Fee_Schedule_ (January 4, 2016), 82 FR 3052 (January 10, 2017) Customer Engagement (‘‘ACE’’) Program—Standard
12012017B.pdf (‘‘Market Maker Sliding Scale’’); (modifying the description of the Prepayment Options), supra note 4.
Cboe Exchange, Inc. fee schedule, at p. 3 available Programs and introducing the Balance of the Year 16 See proposed Fee Schedule, Section I.D
here, http://www.cboe.com/publish/feeschedule/ program). (Prepayment Programs) (modifying the description
CBOEFeeSchedule.pdf (‘‘Liquidity Provider Sliding 12 See Fee Schedule, Section I.D (Prepayment of the 1Year Prepayment Programs to remove
Scale’’). Programs), supra note 4. Continued
VerDate Sep<11>2014 18:27 Jan 17, 2018 Jkt 244001 PO 00000 Frm 00087 Fmt 4703 Sfmt 4703 E:\FR\FM\18JAN1.SGM 18JAN1](https://thefederalregister.org/doc/83_FR_2712/page/2.svg)
![2702 Federal Register / Vol. 83, No. 12 / Thursday, January 18, 2018 / Notices
Next, the Exchange is proposing to any material aspects of the Program. The following prepayments based on the
continue to offer a ‘‘Balance of the Year’’ Exchange would continue to require the quarter in which a Market Maker joined:
Prepayment Program, without altering
2nd Quarter 3rd Quarter 4th Quarter
Prepayment Amount and Payment Schedule ............................................................................. $2,475,000 $1,800,000 $975,000
Consistent with the current Balance of and five higher tiers expressed as a their Affiliates and/or Appointed parties
the Year Prepayment Program, a Market percentage of TCADV 20 and provides to participate in the Prepayment
Maker that participates in the Balance of two alternative methods by which Order Programs, while still rewarding OFPs
the Year Program would receive a credit Flow Providers (each an ‘‘OFP’’) may that direct significant amounts of
equal to its prepayment amount (i.e., receive per contract credits for Customer volume to the Exchange with
$2,475,000; $1,800,000; or $975,000, Electronic Customer volume that the credits on transactions.
respectively) toward certain fees it OFP, as agent, submits to the
2. Statutory Basis
incurs on the Exchange.17 As proposed, Exchange.21 The Exchange is proposing
Marker [sic] Makers that enroll in the to modify certain credits offered in the The Exchange believes that the
Balance of the Year Program would be ACE Program. proposed rule change is consistent with
required to notify the Exchange by the First, the Exchange proposes to delete Section 6(b) of the Act,23 in general, and
last business day before the start of the the ACE credits for 3 Year Enhanced furthers the objectives of Sections
new (following) quarter (e.g., to Customer Volume Credits, and any 6(b)(4) and (5) of the Act,24 in particular,
participate for three-quarters of the year, references thereto, to reflect that the 3 because it provides for the equitable
notice must be given by the last Year Prepayment Program has expired, allocation of reasonable dues, fees, and
business day of the first quarter of that as noted above.22 The Exchange believes other charges among its members,
year, etc.).18 In addition, consistent with these changes would add clarity, issuers and other persons using its
2017, participants must remit payment transparency and internal consistency to facilities and does not unfairly
by the last business day in the first the Fee Schedule. discriminate between customers,
month of the respective quarter (i.e., the Next, the Exchange proposes to issuers, brokers or dealers.
quarter in which prepayments will modify the enhanced per contract credit
Sliding Scale
begin to apply). However, the Exchange applicable to Customer Complex Orders
proposes to remove reference to specific for 1 Year and Balance of the Year The Exchange believes that the
dates, which were tied to prior calendar Prepayment Participants. Specially, the proposed modifications to the Sliding
years, to avoid having to revise the Fee Exchange proposes to reduce the credit Scale are reasonable, equitable and not
Schedule on an annual basis. Thus, as for Tier 1 from $0.20 to $0.19 per unfairly discriminatory for a number of
proposed, the deadlines to participate in contract, while increasing the per reasons. First, the Sliding Scale is
the Balance of the Year Prepayment contract credit for Tier 4 and 5, from available to all Market Makers and is
Program for each quarter would be the $0.21 and $0.23, respectively, to $0.22 based on the amount of business
last business day in April, July and and $0.24, respectively. transacted on—and is designed to attract
October, for the second, third and fourth The Exchange also proposes to modify greater volume to—the Exchange. In
quarter, respectively. the per contract credit applicable to addition, the elimination of the
Finally, the Exchange proposes to Simple Orders on Customer volume for alternative basis to qualify for a reduced
make clear that any prepayments made Tiers 3, 4 and 5. Specifically, the rate by posting monthly volume of at
pursuant to the 1 Year Prepayment Exchange proposes to reduce the credit least 0.85% TCADV (if not participating
Program 1 or the Balance of the Year for Tier 3, 4, and 5 from $0.19, $0.20, in a Prepayment Program) is not
Prepayment Program would apply to and $0.22, respectively, to $0.17, $0.19, unfairly discriminatory because Market
transactions effected using the BOLD and $0.21, respectively. And, the Makers that would like to receive a
Mechanism, pursuant to Section I.M. of Exchange proposes to increase the more favorable per contract rate under
the Fee Schedule.19 enhanced per contract credit applied to the Sliding Scale have the option to
Simple Orders on Customer volume for commit to one of the Prepayment
American Customer Engagement Prepayment participants that qualify for Programs, which commitment increases
(‘‘ACE’’) Program Tier 5 from $0.23 to $0.24. liquidity on the Exchange to the benefit
Section I. E. of the Fee Schedule The proposed changes to credits of all market participants. Moreover, all
describes the Exchange’s ACE Program. payable on Customer volume are Market Makers will be subject to the
The ACE Program features a base tier intended to encourage ATP Holders and proposal to impose differing rates
reference to a specific calendar year and instead would be no refunds issued for any unused portion 20 See Fee Schedule, Section I.E., supra note 4.
maintain requirement [sic] that Market Makers of their prepayment credit. See id. The Exchange also proposes to make a grammatical
would [sic] the Exchange of their commitment to 18 See id. (providing that Market Makers would be change to the second sentence of the introductory
the Program by sending an email the Exchange at required to notify the Exchange of their paragraph by changing the word ‘‘is’’ to ‘‘are,’’
optionsbilling@nyse.com). which should add clarity to the fee schedule. See
commitment to the Program by sending an email
17 See id. Similarly, just as with the 1-Year proposed Fee Schedule, Section I.E.
the Exchange at optionsbilling@nyse.com).
sradovich on DSK3GMQ082PROD with NOTICES
21 The volume thresholds are based on an OFP’s
Prepayment Program, the Exchange would apply 19 See id. The Exchange notes that after
Customer volume transacted Electronically as a
the prepayment as a credit against certain charges introducing fees associated with BOLD transactions percentage of TCADV as reported by the OCC. See
incurred on the Exchange. Once the prepayment in 2017, it modified various aspects of the Fee OCC Monthly Statistics Reports, available here,
credit has been exhausted, the Exchange would Schedule to account for these fees. However, the http://www.theocc.com/webapps/monthly-volume-
invoice the Market Maker at the appropriate rates. Exchange failed to make clear that payments under reports.
In the event that a Market Maker does not conduct any of the Prepayment Programs would count 22 See proposed Fee Schedule, Section I. E.
sufficient activity to exhaust the entirety of their 23 15 U.S.C. 78f(b).
towards BOLD transactions and seeks to correct this
prepayment credit within the calendar year, there
oversight with this proposed change. See id. 24 15 U.S.C. 78f(b)(4) and (5).
VerDate Sep<11>2014 18:27 Jan 17, 2018 Jkt 244001 PO 00000 Frm 00088 Fmt 4703 Sfmt 4703 E:\FR\FM\18JAN1.SGM 18JAN1](https://thefederalregister.org/doc/83_FR_2712/page/3.svg)
![2704 Federal Register / Vol. 83, No. 12 / Thursday, January 18, 2018 / Notices
Exchange notes that it operates in a Paper Comments SECURITIES AND EXCHANGE
highly competitive market in which COMMISSION
market participants can readily favor • Send paper comments in triplicate
competing venues. In such an to Secretary, Securities and Exchange [Release No. 34–82484; File No. SR–
environment, the Exchange must Commission, 100 F Street NE, CboeBZX–2018–001]
continually review, and consider Washington, DC 20549–1090.
adjusting, its fees and credits to remain Self-Regulatory Organizations; Cboe
All submissions should refer to File BZX Exchange, Inc.; Notice of Filing of
competitive with other exchanges. For Number SR–NYSEAMER–2017–42. This
the reasons described above, the a Proposed Rule Change To List and
file number should be included on the Trade Shares of the GraniteShares
Exchange believes that the proposed
subject line if email is used. To help the Bitcoin ETF and the GraniteShares
rule change reflects this competitive
Commission process and review your Short Bitcoin ETF, a Series of the
environment.
comments more efficiently, please use GraniteShares ETP Trust, Under Rule
C. Self-Regulatory Organization’s only one method. The Commission will 14.11(f)(4), Trust Issued Receipts
Statement on Comments on the post all comments on the Commission’s
Proposed Rule Change Received From internet website (http://www.sec.gov/ January 11, 2018.
Members, Participants, or Others rules/sro.shtml). Copies of the Pursuant to Section 19(b)(1) of the
submission, all subsequent Securities Exchange Act of 1934 (the
No written comments were solicited ‘‘Act’’),1 and Rule 19b–4 thereunder,2
or received with respect to the proposed amendments, all written statements
with respect to the proposed rule notice is hereby given that on January 5,
rule change. 2018, Cboe BZX Exchange, Inc. (the
change that are filed with the
III. Date of Effectiveness of the ‘‘Exchange’’ or ‘‘BZX’’) filed with the
Commission, and all written
Proposed Rule Change and Timing for Securities and Exchange Commission
communications relating to the (‘‘Commission’’) the proposed rule
Commission Action
proposed rule change between the change as described in Items I and II
The foregoing rule change is effective Commission and any person, other than below, which Items have been prepared
upon filing pursuant to Section those that may be withheld from the by the Exchange. The Commission is
19(b)(3)(A) 30 of the Act and public in accordance with the publishing this notice to solicit
subparagraph (f)(2) of Rule 19b–4 31 provisions of 5 U.S.C. 552, will be comments on the proposed rule change
thereunder, because it establishes a due, available for website viewing and from interested persons.
fee, or other charge imposed by the printing in the Commission’s Public
Exchange. Reference Room, 100 F Street NE, I. Self-Regulatory Organization’s
At any time within 60 days of the Washington, DC 20549, on official Statement of the Terms of Substance of
filing of such proposed rule change, the the Proposed Rule Change
business days between the hours of
Commission summarily may 10:00 a.m. and 3:00 p.m. Copies of the The Exchange filed a proposal to list
temporarily suspend such rule change if filing also will be available for and trade shares of the GraniteShares
it appears to the Commission that such inspection and copying at the principal Bitcoin ETF and the GraniteShares
action is necessary or appropriate in the office of the Exchange. All comments Short Bitcoin ETF (each a ‘‘Fund’’ and,
public interest, for the protection of received will be posted without change. collectively, the ‘‘Funds’’), a series of
investors, or otherwise in furtherance of the GraniteShares ETP Trust (the
Persons submitting comments are
the purposes of the Act. If the ‘‘Trust’’), under Rule 14.11(f)(4) (‘‘Trust
cautioned that we do not redact or edit
Commission takes such action, the Issued Receipts’’). The shares of the
personal identifying information from
Commission shall institute proceedings Funds are referred to herein as the
under Section 19(b)(2)(B) 32 of the Act to comment submissions. You should
‘‘Shares.’’
determine whether the proposed rule submit only information that you wish
The text of the proposed rule change
change should be approved or to make available publicly. All
is available at the Exchange’s website at
disapproved. submissions should refer to File www.markets.cboe.com, at the principal
Number SR–NYSEAMER–2017–42 and office of the Exchange, and at the
IV. Solicitation of Comments should be submitted on or before Commission’s Public Reference Room.
Interested persons are invited to February 8, 2018.
submit written data, views, and II. Self-Regulatory Organization’s
For the Commission, by the Division of
arguments concerning the foregoing, Statement of the Purpose of, and
Trading and Markets, pursuant to delegated
including whether the proposed rule Statutory Basis for, the Proposed Rule
authority.33
change is consistent with the Act. Change
Eduardo A. Aleman,
Comments may be submitted by any of In its filing with the Commission, the
Assistant Secretary.
the following methods: Exchange included statements
[FR Doc. 2018–00723 Filed 1–17–18; 8:45 am]
concerning the purpose of and basis for
Electronic Comments BILLING CODE 8011–01–P the proposed rule change and discussed
• Use the Commission’s internet any comments it received on the
comment form (http://www.sec.gov/ proposed rule change. The text of these
rules/sro.shtml); or statements may be examined at the
• Send an email to rule-comments@ places specified in Item IV below. The
sradovich on DSK3GMQ082PROD with NOTICES
sec.gov. Please include File Number SR– Exchange has prepared summaries, set
NYSEAMER–2017–42 on the subject forth in Sections A, B, and C below, of
line. the most significant parts of such
statements.
30 15 U.S.C. 78s(b)(3)(A).
31 17 CFR 240.19b–4(f)(2). 1 15 U.S.C. 78s(b)(1).
32 15 U.S.C. 78s(b)(2)(B). 33 17 CFR 200.30–3(a)(12). 2 17 CFR 240.19b–4.
VerDate Sep<11>2014 18:27 Jan 17, 2018 Jkt 244001 PO 00000 Frm 00090 Fmt 4703 Sfmt 4703 E:\FR\FM\18JAN1.SGM 18JAN1](https://thefederalregister.org/doc/83_FR_2712/page/5.svg)
Document Created: 2018-01-18 00:42:12
Document Modified: 2018-01-18 00:42:12
| 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 2700 |
2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR