83_FR_47397 83 FR 47216 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the NYSE Arca Equities Fees and Charges To Introduce a New Pricing Tier, Step Up Tier 3

83 FR 47216 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the NYSE Arca Equities Fees and Charges To Introduce a New Pricing Tier, Step Up Tier 3

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 83, Issue 181 (September 18, 2018)

Page Range47216-47218
FR Document2018-20196

Federal Register, Volume 83 Issue 181 (Tuesday, September 18, 2018)
[Federal Register Volume 83, Number 181 (Tuesday, September 18, 2018)]
[Notices]
[Pages 47216-47218]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-20196]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-84103; File No. SR-NYSEARCA-2018-66]


Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change To Amend the NYSE 
Arca Equities Fees and Charges To Introduce a New Pricing Tier, Step Up 
Tier 3

September 12, 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 September 4, 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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend the NYSE Arca Equities Fees and 
Charges (``Fee Schedule'') to introduce a new pricing tier, Step Up 
Tier 3. The Exchange proposes to implement the fee change effective 
September 4, 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 Exchange proposes to amend the Fee Schedule to introduce a new 
pricing tier, Step Up Tier 3. The Exchange proposes to implement the 
fee change effective September 4, 2018.
    The Exchange currently has a Step Up Tier pursuant to which 
qualifying ETP Holders and Market Makers receive a credit of $0.0030 
per share for orders that provide displayed liquidity to the Book in 
Tape A Securities, $0.0023 per share for orders that provide displayed 
liquidity to the Book in Tape B Securities, and $0.0031 per share for 
orders that provide displayed liquidity to the Book in Tape C 
Securities if such ETP Holders and Market Makers directly execute 
providing average daily volume (``ADV'') per month of 0.50% or more but 
less than 0.70% of the US CADV, and directly execute providing ADV that 
is an increase of no less than 0.10% of US CADV for that month over the 
ETP Holder's or Market Maker's providing ADV in Q1 2018.\4\
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    \4\ See Securities Exchange Act Release No. 83032 (April 11, 
2018), 83 FR 16909 (April 17, 2018) (SR-NYSEArca-2018-20).
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    The Exchange also has a Step Up Tier 2 pricing tier pursuant to 
which ETP Holders and Market Makers receive a credit of $0.0028 per 
share for orders that provide displayed liquidity to the Book in Tape A 
and Tape C Securities, and $0.0022 per share for orders that provide 
displayed liquidity to the Book in Tape B Securities if such ETP 
Holders and Market Makers directly execute providing ADV per month of 
0.22% or more but less than 0.30% of the US CADV, and directly execute 
providing ADV that is an increase of no less than 0.06% of US CADV for 
that month over the ETP Holder's or Market Maker's providing ADV in May 
2018.\5\
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    \5\ See Securities Exchange Act Release No. 83418 (June 12, 
2018), 83 FR 28282 (June 18, 2018) (SR-NYSEArca-2018-41).
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    The Exchange proposes a new pricing tier--Step Up Tier 3--for 
securities with a per share price of $1.00 or above. As proposed, ETP 
Holders and Market Makers would qualify for the new Step Up Tier 3 if 
they directly execute providing ADV per month of 0.15% or more but less 
than 0.20% of the US CADV and directly execute providing ADV that is an 
increase of no less than 0.075% of US CADV for that month over the ETP 
Holder's or Market Maker's providing ADV in May 2018. ETP Holders and 
Market Makers that qualify for Step Up Tier 3 would receive a credit of 
$0.0025 per share for orders that provide displayed liquidity to the 
Book in Tape A and Tape C Securities and $0.0022 per share for orders 
that provide displayed liquidity to the Book in Tape B Securities. For 
all other fees and credits, tiered or basic rates apply based on a 
firm's qualifying levels.
    The goal of the proposed Step Up Tier 3 pricing tier is to further 
incentivize ETP Holders and Market Makers to increase the orders sent 
directly to the Exchange and therefore provide liquidity that supports 
the quality of price discovery and promotes market transparency. The 
proposed pricing tier, which adopts a lower threshold than the Step Up 
Tier and Step Up Tier 2 is intended to allow ETP Holders and Market 
Makers to achieve rebates that weren't previously available. The 
Exchange believes that the proposed new pricing tier will provide an 
incentive for ETP Holders and Market Makers that do not meet current 
tier requirements to direct more of their order flow to the Exchange.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act,\6\ in general, and furthers the 
objectives of Sections 6(b)(4) and (5) of the Act,\7\ in particular, 
because it provides for the equitable allocation of reasonable dues, 
fees, and other charges among its members, issuers and other persons 
using its facilities and does not unfairly discriminate between 
customers, issuers, brokers or dealers.
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    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f(b)(4) and (5).
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    The Exchange believes the Step Up Tier 3 pricing tier will serve as 
an incentivize [sic] to market participants to increase the orders sent 
directly to NYSE Arca and therefore provide

[[Page 47217]]

liquidity that supports the quality of price discovery and promotes 
market transparency. The Exchange believes the proposed pricing tier, 
which adopts a lower threshold, is reasonable and equitable because it 
would allow ETP Holders and Market Makers that directly execute 
providing ADV of at least 0.15% but less than 0.20% of US CADV and 
directly execute providing ADV that is an increase of no less than 
0.075% of US CADV to receive credits that were not previously 
available. Firms that meet the requirement of the proposed pricing tier 
did not previously receive higher credits for adding displayed 
liquidity. Moreover, the addition of the Step Up Tier 3 would benefit 
market participants whose increased order flow provides meaningful 
added levels of liquidity thereby contributing to the depth and market 
quality on the Exchange. The Exchange believes that the proposed new 
Step Up Tier 3 is not unfairly discriminatory because it is open to all 
ETP Holders and Market Makers, on an equal basis, that add liquidity at 
or below the proposed Step Up Tier 3 requirement and who do not qualify 
for rebates currently provided pursuant to Tiers 1, 2 and 3 or pursuant 
to Step Up Tiers 1 and 2. The Exchange further believes that ETP 
Holders and Market Makers that provide liquidity below 0.20% of US 
CADV, which is a minimum requirement pursuant to Tier 3 to qualify for 
increased rebates, would now be eligible for the proposed rebates if 
they meet the requirements of the proposed Step Up Tier 3.
    The Exchange believes that the proposed fee change is equitable and 
not unfairly discriminatory because providing incentives for orders in 
exchange-listed securities that are executed on a registered national 
securities exchange (rather than relying on certain available off-
exchange execution methods) would contribute to investors' confidence 
in the fairness of their transactions and would benefit all investors 
by deepening the Exchange's liquidity pool, supporting the quality of 
price discovery, promoting market transparency and improving investor 
protection.
    Finally, the Exchange believes that it is subject to significant 
competitive forces, as described below in the Exchange's statement 
regarding the burden on competition.
    For the foregoing reasons, the Exchange believes that the proposal 
is consistent with the Act.

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

    In accordance with Section 6(b)(8) of the Act,\8\ the Exchange 
believes that the proposed rule change would not impose any burden on 
competition that is not necessary or appropriate in furtherance of the 
purposes of the Act. Instead, the Exchange believes that the proposal 
to add a new pricing tier would encourage the submission of additional 
liquidity to a public exchange, thereby promoting price discovery and 
transparency and enhancing order execution opportunities for ETP 
Holders and Market Makers. The Exchange believes that this could 
promote competition between the Exchange and other execution venues, 
including those that currently offer similar order types and comparable 
transaction pricing, by encouraging additional orders to be sent to the 
Exchange for execution.
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    \8\ 15 U.S.C. 78f(b)(8).
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    Finally, the Exchange notes that it operates in a highly 
competitive market in which market participants can readily favor 
competing venues if they deem fee levels at a particular venue to be 
excessive or rebate opportunities available at other venues to be more 
favorable. In such an environment, the Exchange must continually adjust 
its fees and rebates to remain competitive with other exchanges and 
with alternative trading systems that have been exempted from 
compliance with the statutory standards applicable to exchanges. 
Because competitors are free to modify their own fees and credits in 
response, and because market participants may readily adjust their 
order routing practices, the Exchange believes that the degree to which 
fee changes in this market may impose any burden on competition is 
extremely limited. As a result of all of these considerations, the 
Exchange does not believe that the proposed changes will impair the 
ability of ETP Holders or competing order execution venues to maintain 
their competitive standing in the financial markets.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    No written comments were solicited or received with respect to the 
proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The foregoing rule change is effective upon filing pursuant to 
Section 19(b)(3)(A) \9\ of the Act and subparagraph (f)(2) of Rule 19b-
4 \10\ thereunder, because it establishes a due, fee, or other charge 
imposed by the Exchange.
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    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of such proposed rule 
change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is necessary or 
appropriate in the public interest, for the protection of investors, or 
otherwise in furtherance of the purposes of the Act. If the Commission 
takes such action, the Commission shall institute proceedings under 
Section 19(b)(2)(B) \11\ of the Act to determine whether the proposed 
rule change should be approved or disapproved.
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    \11\ 15 U.S.C. 78s(b)(2)(B).
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IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-NYSEARCA-2018-66 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-2018-66. 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

[[Page 47218]]

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-2018-66 and should be submitted on or before October 9, 2018.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12\
Eduardo A. Aleman,
Assistant Secretary.
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    \12\ 17 CFR 200.30-3(a)(12).
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[FR Doc. 2018-20196 Filed 9-17-18; 8:45 am]
BILLING CODE 8011-01-P



                                               47216                      Federal Register / Vol. 83, No. 181 / Tuesday, September 18, 2018 / Notices

                                                 At times, changes in Commission                        II. Self-Regulatory Organization’s                    month over the ETP Holder’s or Market
                                               priorities require alterations in the                    Statement of the Purpose of, and                      Maker’s providing ADV in May 2018.5
                                               scheduling of meeting items.                             Statutory Basis for, the Proposed Rule                   The Exchange proposes a new pricing
                                                                                                        Change                                                tier—Step Up Tier 3—for securities with
                                               CONTACT PERSON FOR MORE INFORMATION:
                                                                                                                                                              a per share price of $1.00 or above. As
                                               For further information and to ascertain                   In its filing with the Commission, the              proposed, ETP Holders and Market
                                               what, if any, matters have been added,                   self-regulatory organization included                 Makers would qualify for the new Step
                                               deleted or postponed; please contact                     statements concerning the purpose of,                 Up Tier 3 if they directly execute
                                               Brent J. Fields from the Office of the                   and basis for, the proposed rule change               providing ADV per month of 0.15% or
                                               Secretary at (202) 551–5400.                             and discussed any comments it received                more but less than 0.20% of the US
                                                 Dated: September 13, 2018.                             on the proposed rule change. The text                 CADV and directly execute providing
                                                                                                        of those statements may be examined at                ADV that is an increase of no less than
                                               Brent J. Fields,
                                                                                                        the places specified in Item IV below.                0.075% of US CADV for that month over
                                               Secretary.                                               The Exchange has prepared summaries,                  the ETP Holder’s or Market Maker’s
                                               [FR Doc. 2018–20318 Filed 9–14–18; 11:15 am]             set forth in sections A, B, and C below,              providing ADV in May 2018. ETP
                                               BILLING CODE 8011–01–P                                   of the most significant parts of such                 Holders and Market Makers that qualify
                                                                                                        statements.                                           for Step Up Tier 3 would receive a
                                                                                                        A. Self-Regulatory Organization’s                     credit of $0.0025 per share for orders
                                               SECURITIES AND EXCHANGE                                                                                        that provide displayed liquidity to the
                                               COMMISSION                                               Statement of the Purpose of, and the
                                                                                                        Statutory Basis for, the Proposed Rule                Book in Tape A and Tape C Securities
                                                                                                                                                              and $0.0022 per share for orders that
                                                                                                        Change
                                               [Release No. 34–84103; File No. SR–                                                                            provide displayed liquidity to the Book
                                               NYSEARCA–2018–66]                                        1. Purpose                                            in Tape B Securities. For all other fees
                                                                                                                                                              and credits, tiered or basic rates apply
                                               Self-Regulatory Organizations; NYSE                         The Exchange proposes to amend the                 based on a firm’s qualifying levels.
                                               Arca, Inc.; Notice of Filing and                         Fee Schedule to introduce a new pricing                  The goal of the proposed Step Up Tier
                                               Immediate Effectiveness of Proposed                      tier, Step Up Tier 3. The Exchange                    3 pricing tier is to further incentivize
                                               Rule Change To Amend the NYSE Arca                       proposes to implement the fee change                  ETP Holders and Market Makers to
                                               Equities Fees and Charges To                             effective September 4, 2018.                          increase the orders sent directly to the
                                               Introduce a New Pricing Tier, Step Up                       The Exchange currently has a Step Up               Exchange and therefore provide
                                               Tier 3                                                   Tier pursuant to which qualifying ETP                 liquidity that supports the quality of
                                                                                                        Holders and Market Makers receive a                   price discovery and promotes market
                                               September 12, 2018.                                      credit of $0.0030 per share for orders                transparency. The proposed pricing tier,
                                                  Pursuant to Section 19(b)(1) 1 of the                 that provide displayed liquidity to the               which adopts a lower threshold than the
                                               Securities Exchange Act of 1934 (the                     Book in Tape A Securities, $0.0023 per                Step Up Tier and Step Up Tier 2 is
                                               ‘‘Act’’) 2 and Rule 19b–4 thereunder,3                   share for orders that provide displayed               intended to allow ETP Holders and
                                               notice is hereby given that, on                          liquidity to the Book in Tape B                       Market Makers to achieve rebates that
                                               September 4, 2018, NYSE Arca, Inc. (the                  Securities, and $0.0031 per share for                 weren’t previously available. The
                                               ‘‘Exchange’’ or ‘‘NYSE Arca’’) filed with                orders that provide displayed liquidity               Exchange believes that the proposed
                                               the Securities and Exchange                              to the Book in Tape C Securities if such              new pricing tier will provide an
                                               Commission (the ‘‘Commission’’) the                      ETP Holders and Market Makers                         incentive for ETP Holders and Market
                                                                                                        directly execute providing average daily              Makers that do not meet current tier
                                               proposed rule change as described in
                                                                                                        volume (‘‘ADV’’) per month of 0.50% or                requirements to direct more of their
                                               Items I, II, and III below, which Items
                                                                                                        more but less than 0.70% of the US                    order flow to the Exchange.
                                               have been prepared by the self-
                                               regulatory organization. The                             CADV, and directly execute providing                  2. Statutory Basis
                                               Commission is publishing this notice to                  ADV that is an increase of no less than
                                                                                                        0.10% of US CADV for that month over                     The Exchange believes that the
                                               solicit comments on the proposed rule                                                                          proposed rule change is consistent with
                                                                                                        the ETP Holder’s or Market Maker’s
                                               change from interested persons.                                                                                Section 6(b) of the Act,6 in general, and
                                                                                                        providing ADV in Q1 2018.4
                                               I. Self-Regulatory Organization’s                                                                              furthers the objectives of Sections
                                                                                                           The Exchange also has a Step Up Tier               6(b)(4) and (5) of the Act,7 in particular,
                                               Statement of the Terms of Substance of                   2 pricing tier pursuant to which ETP
                                               the Proposed Rule Change                                                                                       because it provides for the equitable
                                                                                                        Holders and Market Makers receive a                   allocation of reasonable dues, fees, and
                                                                                                        credit of $0.0028 per share for orders                other charges among its members,
                                                  The Exchange proposes to amend the
                                                                                                        that provide displayed liquidity to the               issuers and other persons using its
                                               NYSE Arca Equities Fees and Charges
                                                                                                        Book in Tape A and Tape C Securities,                 facilities and does not unfairly
                                               (‘‘Fee Schedule’’) to introduce a new                    and $0.0022 per share for orders that
                                               pricing tier, Step Up Tier 3. The                                                                              discriminate between customers,
                                                                                                        provide displayed liquidity to the Book               issuers, brokers or dealers.
                                               Exchange proposes to implement the fee                   in Tape B Securities if such ETP
                                               change effective September 4, 2018. The                                                                           The Exchange believes the Step Up
                                                                                                        Holders and Market Makers directly                    Tier 3 pricing tier will serve as an
                                               proposed rule change is available on the                 execute providing ADV per month of
                                               Exchange’s website at www.nyse.com, at                                                                         incentivize [sic] to market participants
                                                                                                        0.22% or more but less than 0.30% of
daltland on DSKBBV9HB2PROD with NOTICES




                                               the principal office of the Exchange, and                                                                      to increase the orders sent directly to
                                                                                                        the US CADV, and directly execute                     NYSE Arca and therefore provide
                                               at the Commission’s Public Reference                     providing ADV that is an increase of no
                                               Room.                                                    less than 0.06% of US CADV for that                      5 See Securities Exchange Act Release No. 83418

                                                                                                                                                              (June 12, 2018), 83 FR 28282 (June 18, 2018) (SR–
                                                 1 15 U.S.C. 78s(b)(1).                                   4 See Securities Exchange Act Release No. 83032     NYSEArca–2018–41).
                                                 2 15 U.S.C. 78a.                                                                                                6 15 U.S.C. 78f(b).
                                                                                                        (April 11, 2018), 83 FR 16909 (April 17, 2018) (SR–
                                                 3 17 CFR 240.19b–4.                                    NYSEArca–2018–20).                                       7 15 U.S.C. 78f(b)(4) and (5).




                                          VerDate Sep<11>2014    19:14 Sep 17, 2018   Jkt 244001   PO 00000   Frm 00093   Fmt 4703   Sfmt 4703   E:\FR\FM\18SEN1.SGM   18SEN1


                                                                         Federal Register / Vol. 83, No. 181 / Tuesday, September 18, 2018 / Notices                                             47217

                                               liquidity that supports the quality of                  B. Self-Regulatory Organization’s                       19(b)(3)(A) 9 of the Act and
                                               price discovery and promotes market                     Statement on Burden on Competition                      subparagraph (f)(2) of Rule 19b–4 10
                                               transparency. The Exchange believes the                    In accordance with Section 6(b)(8) of                thereunder, because it establishes a due,
                                               proposed pricing tier, which adopts a                   the Act,8 the Exchange believes that the                fee, or other charge imposed by the
                                               lower threshold, is reasonable and                      proposed rule change would not impose                   Exchange.
                                               equitable because it would allow ETP                                                                               At any time within 60 days of the
                                                                                                       any burden on competition that is not
                                               Holders and Market Makers that directly                                                                         filing of such proposed rule change, the
                                                                                                       necessary or appropriate in furtherance
                                               execute providing ADV of at least 0.15%                                                                         Commission summarily may
                                                                                                       of the purposes of the Act. Instead, the
                                               but less than 0.20% of US CADV and                                                                              temporarily suspend such rule change if
                                                                                                       Exchange believes that the proposal to
                                               directly execute providing ADV that is                                                                          it appears to the Commission that such
                                                                                                       add a new pricing tier would encourage
                                                                                                                                                               action is necessary or appropriate in the
                                               an increase of no less than 0.075% of                   the submission of additional liquidity to
                                                                                                                                                               public interest, for the protection of
                                               US CADV to receive credits that were                    a public exchange, thereby promoting
                                                                                                                                                               investors, or otherwise in furtherance of
                                               not previously available. Firms that                    price discovery and transparency and
                                                                                                                                                               the purposes of the Act. If the
                                               meet the requirement of the proposed                    enhancing order execution
                                                                                                                                                               Commission takes such action, the
                                               pricing tier did not previously receive                 opportunities for ETP Holders and
                                                                                                                                                               Commission shall institute proceedings
                                               higher credits for adding displayed                     Market Makers. The Exchange believes
                                                                                                                                                               under Section 19(b)(2)(B) 11 of the Act to
                                               liquidity. Moreover, the addition of the                that this could promote competition
                                                                                                                                                               determine whether the proposed rule
                                               Step Up Tier 3 would benefit market                     between the Exchange and other
                                                                                                                                                               change should be approved or
                                               participants whose increased order flow                 execution venues, including those that
                                                                                                                                                               disapproved.
                                               provides meaningful added levels of                     currently offer similar order types and
                                               liquidity thereby contributing to the                   comparable transaction pricing, by                      IV. Solicitation of Comments
                                                                                                       encouraging additional orders to be sent                  Interested persons are invited to
                                               depth and market quality on the
                                                                                                       to the Exchange for execution.                          submit written data, views, and
                                               Exchange. The Exchange believes that
                                                                                                          Finally, the Exchange notes that it                  arguments concerning the foregoing,
                                               the proposed new Step Up Tier 3 is not
                                                                                                       operates in a highly competitive market                 including whether the proposed rule
                                               unfairly discriminatory because it is                   in which market participants can
                                               open to all ETP Holders and Market                                                                              change is consistent with the Act.
                                                                                                       readily favor competing venues if they                  Comments may be submitted by any of
                                               Makers, on an equal basis, that add                     deem fee levels at a particular venue to
                                               liquidity at or below the proposed Step                                                                         the following methods:
                                                                                                       be excessive or rebate opportunities
                                               Up Tier 3 requirement and who do not                    available at other venues to be more                    Electronic Comments
                                               qualify for rebates currently provided                  favorable. In such an environment, the                     • Use the Commission’s internet
                                               pursuant to Tiers 1, 2 and 3 or pursuant                Exchange must continually adjust its                    comment form (http://www.sec.gov/
                                               to Step Up Tiers 1 and 2. The Exchange                  fees and rebates to remain competitive                  rules/sro.shtml); or
                                               further believes that ETP Holders and                   with other exchanges and with                              • Send an email to rule-comments@
                                               Market Makers that provide liquidity                    alternative trading systems that have                   sec.gov. Please include File Number SR–
                                               below 0.20% of US CADV, which is a                      been exempted from compliance with                      NYSEARCA–2018–66 on the subject
                                               minimum requirement pursuant to Tier                    the statutory standards applicable to                   line.
                                               3 to qualify for increased rebates, would               exchanges. Because competitors are free
                                                                                                       to modify their own fees and credits in                 Paper Comments
                                               now be eligible for the proposed rebates
                                               if they meet the requirements of the                    response, and because market                               • Send paper comments in triplicate
                                               proposed Step Up Tier 3.                                participants may readily adjust their                   to Brent J. Fields, Secretary, Securities
                                                                                                       order routing practices, the Exchange                   and Exchange Commission, 100 F Street
                                                  The Exchange believes that the                                                                               NE, Washington, DC 20549–1090.
                                                                                                       believes that the degree to which fee
                                               proposed fee change is equitable and
                                                                                                       changes in this market may impose any                   All submissions should refer to File
                                               not unfairly discriminatory because                     burden on competition is extremely                      Number SR–NYSEARCA–2018–66. This
                                               providing incentives for orders in                      limited. As a result of all of these                    file number should be included on the
                                               exchange-listed securities that are                     considerations, the Exchange does not                   subject line if email is used. To help the
                                               executed on a registered national                       believe that the proposed changes will                  Commission process and review your
                                               securities exchange (rather than relying                impair the ability of ETP Holders or                    comments more efficiently, please use
                                               on certain available off-exchange                       competing order execution venues to                     only one method. The Commission will
                                               execution methods) would contribute to                  maintain their competitive standing in                  post all comments on the Commission’s
                                               investors’ confidence in the fairness of                the financial markets.                                  internet website (http://www.sec.gov/
                                               their transactions and would benefit all                                                                        rules/sro.shtml). Copies of the
                                               investors by deepening the Exchange’s                   C. Self-Regulatory Organization’s
                                                                                                       Statement on Comments on the                            submission, all subsequent
                                               liquidity pool, supporting the quality of                                                                       amendments, all written statements
                                                                                                       Proposed Rule Change Received From
                                               price discovery, promoting market                                                                               with respect to the proposed rule
                                                                                                       Members, Participants, or Others
                                               transparency and improving investor                                                                             change that are filed with the
                                               protection.                                               No written comments were solicited                    Commission, and all written
                                                                                                       or received with respect to the proposed                communications relating to the
                                                  Finally, the Exchange believes that it
                                                                                                       rule change.                                            proposed rule change between the
                                               is subject to significant competitive
                                                                                                                                                               Commission and any person, other than
daltland on DSKBBV9HB2PROD with NOTICES




                                               forces, as described below in the                       III. Date of Effectiveness of the
                                                                                                       Proposed Rule Change and Timing for                     those that may be withheld from the
                                               Exchange’s statement regarding the
                                                                                                       Commission Action                                       public in accordance with the
                                               burden on competition.
                                                                                                                                                               provisions of 5 U.S.C. 552, will be
                                                  For the foregoing reasons, the                         The foregoing rule change is effective
                                               Exchange believes that the proposal is                  upon filing pursuant to Section                           9 15 U.S.C. 78s(b)(3)(A).
                                               consistent with the Act.                                                                                          10 17 CFR 240.19b–4(f)(2).
                                                                                                         8 15   U.S.C. 78f(b)(8).                                11 15 U.S.C. 78s(b)(2)(B).




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                                               47218                       Federal Register / Vol. 83, No. 181 / Tuesday, September 18, 2018 / Notices

                                               available for website viewing and                         CFR 274.10) is the form for notification              burden to associated with preparing and
                                               printing in the Commission’s Public                       of registration that the Commission has               filing notifications of registration on
                                               Reference Room, 100 F Street NE,                          adopted under section 8(a). The purpose               Form N–8A is about $43,104.
                                               Washington, DC 20549 on official                          of such notification of registration                     Estimates of average burden hours
                                               business days between the hours of                        provided on Form N–8A is to notify the                and costs are made solely for the
                                               10:00 a.m. and 3:00 p.m. Copies of the                    Commission of the existence of                        purposes of the Paperwork Reduction
                                               filing also will be available for                         investment companies required to be                   Act, and are not derived from a
                                               inspection and copying at the principal                   registered under the Investment                       comprehensive or even representative
                                               office of the Exchange. All comments                      Company Act and to enable the                         survey or study of the costs of
                                               received will be posted without change.                   Commission to administer the                          Commission rules and forms.
                                               Persons submitting comments are                           provisions of the Investment Company                  Compliance with the collection of
                                               cautioned that we do not redact or edit                   Act with respect to those companies.                  information requirements of Form N–8A
                                               personal identifying information from                     After an investment company has filed                 is mandatory. Responses to the
                                               comment submissions. You should                           its notification of registration under                collection of information will not be
                                               submit only information that you wish                     section 8(a), the company is then subject             kept confidential. An agency may not
                                               to make available publicly. All                           to the provisions of the Investment                   conduct or sponsor, and a person is not
                                               submissions should refer to File                          Company Act which govern certain                      required to respond to, a collection of
                                               Number SR–NYSEARCA–2018–66 and                            aspects of its organization and activities,           information unless it displays a
                                               should be submitted on or before                          such as the composition of its board of               currently valid OMB control number.
                                               October 9, 2018.                                          directors and the issuance of senior                     Written comments are invited on: (a)
                                                 For the Commission, by the Division of                  securities. Form N–8A requires an                     Whether the collection of information is
                                               Trading and Markets, pursuant to delegated                investment company to provide its                     necessary for the proper performance of
                                               authority.12                                              name, state of organization, form of                  the functions of the Commission,
                                               Eduardo A. Aleman,                                        organization, classification, the name                including whether the information has
                                               Assistant Secretary.                                      and address of each investment adviser                practical utility; (b) the accuracy of the
                                               [FR Doc. 2018–20196 Filed 9–17–18; 8:45 am]               of the investment company, the current                Commission’s estimate of the burden of
                                               BILLING CODE 8011–01–P                                    value of its total assets, and certain                the collection of information; (c) ways to
                                                                                                         other information readily available to                enhance the quality, utility, and clarity
                                                                                                         the investment company. If the                        of the information collected; and (d)
                                               SECURITIES AND EXCHANGE                                   investment company is filing a                        ways to minimize the burden of the
                                               COMMISSION                                                registration statement as required by                 collection of information on
                                                                                                         Section 8(b) of the Investment Company                respondents, including through the use
                                               Proposed Collection; Comment                              Act concurrently with its notification of             of automated collection techniques or
                                               Request                                                   registration, Form N–8A requires only                 other forms of information technology.
                                               Upon Written Request, Copies Available                    that the registrant file the cover page               Consideration will be given to
                                                From: Securities and Exchange                            (giving its name, address, and agent for              comments and suggestions submitted in
                                                Commission, Office of FOIA Services,                     service of process) and sign the form in              writing within 60 days of this
                                                100 F Street NE, Washington, DC                          order to effect registration.                         publication.
                                                20549–2736.                                                 Based on recent filings of notifications              Please direct your written comments
                                                                                                         of registration on Form N–8A, we                      to Pamela Dyson, Director/Chief
                                               Extension:                                                                                                      Information Officer, Securities and
                                                 Form N–8A, SEC File No. 270–135, OMB                    estimate that about 96 investment
                                                   Control No. 3235–0175.                                companies file such notifications each                Exchange Commission, C/O Candace
                                                                                                         year. An investment company must only                 Kenner, 100 F Street NE, Washington,
                                                  Notice is hereby given that, pursuant                                                                        DC 20549; or send an email to: PRA_
                                               to the Paperwork Reduction Act of 1995                    file a notification of registration on
                                                                                                         Form N–8A once. The currently                         Mailbox@sec.gov.
                                               (44 U.S.C. 3501 et seq.), the Securities
                                               and Exchange Commission (the                              approved average hour burden per                        Dated: September 12, 2018.
                                               ‘‘Commission’’) is soliciting comments                    investment company of preparing and                   Eduardo A. Aleman,
                                               on the collection of information                          filing a notification of registration on              Assistant Secretary.
                                               summarized below. The Commission                          Form N–8A is one hour. Based on the                   [FR Doc. 2018–20279 Filed 9–17–18; 8:45 am]
                                               plans to submit this existing collection                  Commission staff’s experience with the                BILLING CODE 8011–01–P
                                               of information to the Office of                           requirements of Form N–8A and with
                                               Management and Budget (‘‘OMB’’) for                       disclosure documents generally—and
                                               extension and approval.                                   considering that investment companies                 SECURITIES AND EXCHANGE
                                                  The Investment Company Act of 1940                     that are filing notifications of                      COMMISSION
                                               (‘‘Investment Company Act’’) (15 U.S.C.                   registration on Form N–8A
                                               80a–1 et seq.) requires investment                        simultaneously with the registration                  Submission for OMB Review;
                                               companies to register with the                            statement under the Investment                        Comment Request
                                               Commission before they conduct any                        Company Act are only required by Form
                                                                                                                                                               Upon Written Request, Copies Available
                                               business in interstate commerce.                          N–8A to file a signed cover page—we
                                                                                                                                                                From: Securities and Exchange
                                               Section 8(a) of the Investment Company                    continue to believe that this estimate is
                                                                                                                                                                Commission, Office of FOIA Services,
                                               Act provides that an investment                           appropriate. Therefore, we estimate that
daltland on DSKBBV9HB2PROD with NOTICES




                                                                                                                                                                100 F Street NE., Washington, DC
                                               company shall be deemed to be                             the total annual hour burden to prepare
                                                                                                                                                                20549–2736
                                               registered upon receipt by the                            and file notifications of registration on
                                               Commission of a notification of                           Form N–8A is 96 hours. The currently                  Extension:
                                               registration in such form as the                          approved cost burden of Form N–8A is                    Regulation SCI, Form SCI, SEC File No.
                                                                                                         $449. We continue to believe that this                    270–653, OMB Control No. 3235–0703
                                               Commission prescribes. Form N–8A (17
                                                                                                         estimate is appropriate. Therefore, we                  Notice is hereby given that pursuant
                                                 12 17   CFR 200.30–3(a)(12).                            estimate that the total annual cost                   to the Paperwork Reduction Act of 1995


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Document Created: 2018-09-18 01:18:51
Document Modified: 2018-09-18 01:18:51
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
FR Citation83 FR 47216 

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