83 FR 32929 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Modify the NYSE Arca Options Fee Schedule
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 83, Issue 136 (July 16, 2018)
Federal Register Volume 83, Issue 136 (July 16, 2018)
| Page Range | 32929-32930 | |
| FR Document | 2018-15082 |
[Federal Register Volume 83, Number 136 (Monday, July 16, 2018)] [Notices] [Pages 32929-32930] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-15082] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-83616; File No. SR-NYSEARCA-2018-51] Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Modify the NYSE Arca Options Fee Schedule July 10, 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 July 2, 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 modify the NYSE Arca Options Fee Schedule (``Fee Schedule''). The Exchange proposes to implement the fee change effective July 2, 2018. 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 purpose of this filing is to modify the Fee Schedule, effective July 2, 2018, to provide an incentive for Floor Brokers to bring business to the Trading Floor in the newly listed options on the NYSE FANG+ Index (``NYSE FANG+''), which trades under the symbol FAANG. The Exchange proposes to introduce rebates for Floor Broker organizations that execute a certain number of FAANG contract sides on the Exchange in a calendar month, based on the highest Tier achieved (the ``Rebate''). The volume Tiers, and the associated proposed Rebate, are set forth as follows: FAANG Rebate ------------------------------------------------------------------------ Floor broker FAANG Tier executions Rebate ------------------------------------------------------------------------ 1.......................... From 200 to 999 contract ($1,000) sides. 2.......................... From 1,000 to 1,999 (2,500) contract sides. 3.......................... 2,000 to 19,999 contract (5,000) sides. 4.......................... 20,000 or more contract (10,000) sides. ------------------------------------------------------------------------ The Exchange believes the proposed Rebate would further the Exchange's goal of introducing new products to the marketplace by encouraging trading in this index, in particular by encouraging Floor Brokers to bring business to the Trading Floor, which would in turn, benefit all market participants through increased liquidity and more opportunities to trade. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with Section 6(b) of the Act, in general, and furthers the objectives of Sections 6(b)(4) and (5) of the Act, 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. The Exchange believes the proposal to introduce a Floor Broker Rebate for executing a certain number of options contract sides on NYSE FANG+ is reasonable, equitable and not unfairly discriminatory for the following reasons. The Exchange believes the proposed rebates, which apply equally to all Floor Broker transactions in NYSE FANG+, regardless of account type, to [[Page 32930]] be reasonable and equitable because business brought to the Trading Floor may be on behalf of any market participant. In addition, such orders benefit all market participants by providing more trading opportunities, which attracts Market Makers, Customers and other participants. An increase in activity, in turn, facilitates tighter spreads, which may result in a corresponding increase in order flow from all market participants. B. Self-Regulatory Organization's Statement on Burden on Competition In accordance with Section 6(b)(8) of the Act, the Exchange does not believe that the proposed rule change would impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. The Exchange believes the proposed rebates for Floor Broker organizations that achieve the proposed Rebate would not place an unfair burden on competition as it would apply to all similarly situated Floor Brokers, and is applicable to business from all account types. The Exchange also believes the proposed Rebate is procompetitive as it would further the Exchange's goal of introducing new products to the marketplace and encouraging Floor Brokers to bring business to the Trading Floor, which would in turn, benefit all market participants. Market participants that do not wish to trade in NYSE FANG+ are not obliged to do so. The Exchange does not believe that the proposed change will impair the ability of any market participants or competing order execution venues to maintain their competitive standing in the financial markets. Further, the proposed Rebate would be applied to all similarly situated participants (i.e., Floor Brokers), and, as such, the proposed change would not impose a disparate burden on competition either among or between classes of market participants. 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) \4\ of the Act and subparagraph (f)(2) of Rule 19b- 4 \5\ thereunder, because it establishes a due, fee, or other charge imposed by the Exchange. --------------------------------------------------------------------------- \4\ 15 U.S.C. 78s(b)(3)(A). \5\ 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) \6\ of the Act to determine whether the proposed rule change should be approved or disapproved. --------------------------------------------------------------------------- \6\ 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 rule-comments@sec.gov. Please include File Number SR-NYSEARCA-2018-51 on the subject line. Paper Comments Send paper comments in triplicate to Brent J. Fields, Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090. All submissions should refer to File Number SR-NYSEARCA-2018-51. 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-NYSEARCA-2018-51 and should be submitted on or before August 6, 2018. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\7\ --------------------------------------------------------------------------- \7\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2018-15082 Filed 7-13-18; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 83, No. 136 / Monday, July 16, 2018 / Notices 32929
from section 9(a) of the Act requested By the Commission. www.nyse.com, at the principal office of
pursuant to the Application or the Eduardo A. Aleman, the Exchange, and at the Commission’s
revocation or removal of any temporary Assistant Secretary. Public Reference Room.
exemptions granted under the Act in [FR Doc. 2018–15078 Filed 7–13–18; 8:45 am] II. Self-Regulatory Organization’s
connection with the application. BILLING CODE 8011–01–P Statement of the Purpose of, and
2. Each Applicant and Covered Person Statutory Basis for, the Proposed Rule
will adopt and implement policies and Change
procedures reasonably designed to SECURITIES AND EXCHANGE
ensure that it will comply with the COMMISSION In its filing with the Commission, the
terms and conditions of the Orders [Release No. 34–83616; File No. SR– self-regulatory organization included
within 60 days of the date of the NYSEARCA–2018–51] statements concerning the purpose of,
Permanent Order. and basis for, the proposed rule change
3. CS&Co. will comply with the terms Self-Regulatory Organizations; NYSE and discussed any comments it received
and conditions of the Consent. Arca, Inc.; Notice of Filing and on the proposed rule change. The text
Immediate Effectiveness of Proposed of those statements may be examined at
4. The Applicants will provide Rule Change To Modify the NYSE Arca the places specified in Item IV below.
written notification to the Chief Counsel Options Fee Schedule The Exchange has prepared summaries,
of the Commission’s Division of set forth in sections A, B, and C below,
Investment Management with a copy to July 10, 2018.
of the most significant parts of such
the Chief Counsel of the Commission’s Pursuant to Section 19(b)(1) 1 of the
statements.
Division of Enforcement of a material Securities Exchange Act of 1934 (the
violation of the terms and conditions of ‘‘Act’’) 2 and Rule 19b–4 thereunder,3 A. Self-Regulatory Organization’s
the Orders and Consent within 30 days notice is hereby given that, on July 2, Statement of the Purpose of, and the
of discovery of the material violation. 2018, NYSE Arca, Inc. (the ‘‘Exchange’’ Statutory Basis for, the Proposed Rule
or ‘‘NYSE Arca’’) filed with the Change
Temporary Order Securities and Exchange Commission
1. Purpose
The Commission has considered the (the ‘‘Commission’’) the proposed rule
matter and finds that Applicants have change as described in Items I, II, and The purpose of this filing is to modify
made the necessary showing to justify III below, which Items have been the Fee Schedule, effective July 2, 2018,
granting a temporary exemption. prepared by the self-regulatory to provide an incentive for Floor
organization. The Commission is Brokers to bring business to the Trading
Accordingly,
publishing this notice to solicit Floor in the newly listed options on the
It is hereby ordered, pursuant to comments on the proposed rule change NYSE FANG+ Index (‘‘NYSE FANG+’’),
section 9(c) of the Act, that the from interested persons. which trades under the symbol FAANG.
Applicants and any other Covered
Persons are granted a temporary I. Self-Regulatory Organization’s The Exchange proposes to introduce
exemption from the provisions of Statement of the Terms of Substance of rebates for Floor Broker organizations
section 9(a), effective as of the date of the Proposed Rule Change that execute a certain number of
the Injunction, solely with respect to the The Exchange proposes to modify the FAANG contract sides on the Exchange
Injunction, subject to the NYSE Arca Options Fee Schedule (‘‘Fee in a calendar month, based on the
representations and conditions in the Schedule’’). The Exchange proposes to highest Tier achieved (the ‘‘Rebate’’).
application, until the Commission takes implement the fee change effective July The volume Tiers, and the associated
final action on their application for a 2, 2018. The proposed rule change is proposed Rebate, are set forth as
permanent order. available on the Exchange’s website at follows:
FAANG REBATE
Tier Floor broker FAANG executions Rebate
1 ........................ From 200 to 999 contract sides ........................................................................................................................... ($1,000)
2 ........................ From 1,000 to 1,999 contract sides ..................................................................................................................... (2,500)
3 ........................ 2,000 to 19,999 contract sides ............................................................................................................................. (5,000)
4 ........................ 20,000 or more contract sides .............................................................................................................................. (10,000)
The Exchange believes the proposed 2. Statutory Basis discriminate between customers,
Rebate would further the Exchange’s issuers, brokers or dealers.
goal of introducing new products to the The Exchange believes that the
proposed rule change is consistent with The Exchange believes the proposal to
marketplace by encouraging trading in introduce a Floor Broker Rebate for
this index, in particular by encouraging Section 6(b) of the Act, in general, and
executing a certain number of options
Floor Brokers to bring business to the furthers the objectives of Sections
contract sides on NYSE FANG+ is
Trading Floor, which would in turn, 6(b)(4) and (5) of the Act, in particular,
reasonable, equitable and not unfairly
sradovich on DSK3GMQ082PROD with NOTICES
benefit all market participants through because it provides for the equitable
discriminatory for the following
increased liquidity and more allocation of reasonable dues, fees, and reasons. The Exchange believes the
opportunities to trade. other charges among its members, proposed rebates, which apply equally
issuers and other persons using its to all Floor Broker transactions in NYSE
facilities and does not unfairly FANG+, regardless of account type, to
1 15 U.S.C. 78s(b)(1). 2 15 U.S.C. 78a. 3 17 CFR 240.19b–4.
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![32930 Federal Register / Vol. 83, No. 136 / Monday, July 16, 2018 / Notices
be reasonable and equitable because subparagraph (f)(2) of Rule 19b–4 5 Reference Room, 100 F Street NE,
business brought to the Trading Floor thereunder, because it establishes a due, Washington, DC 20549 on official
may be on behalf of any market fee, or other charge imposed by the business days between the hours of
participant. In addition, such orders Exchange. 10:00 a.m. and 3:00 p.m. Copies of the
benefit all market participants by At any time within 60 days of the filing also will be available for
providing more trading opportunities, filing of such proposed rule change, the inspection and copying at the principal
which attracts Market Makers, Commission summarily may office of the Exchange. All comments
Customers and other participants. An temporarily suspend such rule change if received will be posted without change.
increase in activity, in turn, facilitates it appears to the Commission that such Persons submitting comments are
tighter spreads, which may result in a action is necessary or appropriate in the cautioned that we do not redact or edit
corresponding increase in order flow public interest, for the protection of personal identifying information from
from all market participants. investors, or otherwise in furtherance of comment submissions. You should
the purposes of the Act. If the submit only information that you wish
B. Self-Regulatory Organization’s Commission takes such action, the to make available publicly. All
Statement on Burden on Competition Commission shall institute proceedings submissions should refer to File
In accordance with Section 6(b)(8) of under Section 19(b)(2)(B) 6 of the Act to Number SR–NYSEARCA–2018–51 and
the Act, the Exchange does not believe determine whether the proposed rule should be submitted on or before
that the proposed rule change would change should be approved or August 6, 2018.
impose any burden on competition that disapproved. For the Commission, by the Division of
is not necessary or appropriate in IV. Solicitation of Comments Trading and Markets, pursuant to delegated
furtherance of the purposes of the Act. authority.7
The Exchange believes the proposed Interested persons are invited to Eduardo A. Aleman,
rebates for Floor Broker organizations submit written data, views, and Assistant Secretary.
that achieve the proposed Rebate would arguments concerning the foregoing, [FR Doc. 2018–15082 Filed 7–13–18; 8:45 am]
not place an unfair burden on including whether the proposed rule
BILLING CODE 8011–01–P
competition as it would apply to all change is consistent with the Act.
similarly situated Floor Brokers, and is Comments may be submitted by any of
applicable to business from all account the following methods: SECURITIES AND EXCHANGE
types. The Exchange also believes the Electronic Comments COMMISSION
proposed Rebate is procompetitive as it
• Use the Commission’s internet [Release No. 34–83617; File No. SR–
would further the Exchange’s goal of NYSEAMER–2018–36]
comment form (http://www.sec.gov/
introducing new products to the
rules/sro.shtml); or
marketplace and encouraging Floor • Send an email to rule-comments@ Self-Regulatory Organizations; NYSE
Brokers to bring business to the Trading sec.gov. Please include File Number SR– American LLC; Notice of Filing and
Floor, which would in turn, benefit all NYSEARCA–2018–51 on the subject Immediate Effectiveness of Proposed
market participants. Market participants line. Change To Modify the NYSE American
that do not wish to trade in NYSE Options Fee Schedule
FANG+ are not obliged to do so. Paper Comments
July 10, 2018.
The Exchange does not believe that • Send paper comments in triplicate
the proposed change will impair the Pursuant to Section 19(b)(1) 1 of the
to Brent J. Fields, Secretary, Securities
ability of any market participants or Securities Exchange Act of 1934 (the
and Exchange Commission, 100 F Street
competing order execution venues to ‘‘Act’’) 2 and Rule 19b–4 thereunder,3
NE, Washington, DC 20549–1090.
maintain their competitive standing in notice is hereby given that, on July 2,
All submissions should refer to File 2018, NYSE American LLC (the
the financial markets. Further, the Number SR–NYSEARCA–2018–51. This
proposed Rebate would be applied to all ‘‘Exchange’’ or ‘‘NYSE American’’) filed
file number should be included on the with the Securities and Exchange
similarly situated participants (i.e., subject line if email is used. To help the
Floor Brokers), and, as such, the Commission (the ‘‘Commission’’) the
Commission process and review your proposed rule change as described in
proposed change would not impose a comments more efficiently, please use
disparate burden on competition either Items I, II, and III below, which Items
only one method. The Commission will have been prepared by the self-
among or between classes of market post all comments on the Commission’s
participants. regulatory organization. The
internet website (http://www.sec.gov/ Commission is publishing this notice to
C. Self-Regulatory Organization’s rules/sro.shtml). Copies of the solicit comments on the proposed rule
Statement on Comments on the submission, all subsequent change from interested persons.
Proposed Rule Change Received From amendments, all written statements
Members, Participants, or Others with respect to the proposed rule I. Self-Regulatory Organization’s
change that are filed with the Statement of the Terms of Substance of
No written comments were solicited Commission, and all written the Proposed Rule Change
or received with respect to the proposed communications relating to the The Exchange proposes to modify the
rule change. proposed rule change between the NYSE American Options Fee Schedule
III. Date of Effectiveness of the Commission and any person, other than (‘‘Fee Schedule’’). The Exchange
sradovich on DSK3GMQ082PROD with NOTICES
Proposed Rule Change and Timing for those that may be withheld from the proposes to implement the fee change
Commission Action public in accordance with the effective July 2, 2018. The proposed
provisions of 5 U.S.C. 552, will be change is available on the Exchange’s
The foregoing rule change is effective available for website viewing and
upon filing pursuant to Section printing in the Commission’s Public 7 17 CFR 200.30–3(a)(12).
19(b)(3)(A) 4 of the Act and 1 15 U.S.C. 78s(b)(1).
5 17 CFR 240.19b–4(f)(2). 2 15 U.S.C. 78a.
4 15 U.S.C. 78s(b)(3)(A). 6 15 U.S.C. 78s(b)(2)(B). 3 17 CFR 240.19b–4.
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Document Created: 2018-07-14 00:53:34
Document Modified: 2018-07-14 00:53:34
| 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 32929 |
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