Self-Regulatory Organizations; NYSE American LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Modify the NYSE American Options Fee Schedule, 43064-43066 [2017-19378]

Download as PDF sradovich on DSK3GMQ082PROD with NOTICES 43064 Federal Register / Vol. 82, No. 176 / Wednesday, September 13, 2017 / Notices burden hours associated with the adoption and documentation requirement is 10,185 hours. All funds are required to conduct an annual review of the adequacy of their existing policies and procedures and the policies and procedures of each investment adviser, principal underwriter, administrator, and transfer agent of the fund, and the effectiveness of their implementation. In addition, each fund chief compliance officer is required to prepare an annual report that addresses the operation of the policies and procedures of the fund and the policies and procedures of each investment adviser, principal underwriter, administrator, and transfer agent of the fund, any material changes made to those policies and procedures since the date of the last report, any material changes to the policies and procedures recommended as a result of the annual review, and certain compliance matters that occurred since the date of the last report. The staff estimates that each fund spends 49 hours per year, on average, conducting the annual review and preparing the annual report to the board of directors. Thus, we estimate that the annual aggregate burden hours associated with the annual review and annual report requirement is 202,517 hours. Finally, the staff estimates that each fund spends 6 hours annually, on average, maintaining the records required by proposed Rule 38a–1. Thus, the annual aggregate burden hours associated with the recordkeeping requirement is 24,798 hours. In total, the staff estimates that the aggregate annual information collection burden of Rule 38a–1 is 237,500 hours. The estimate of burden hours is made solely for the purposes of the Paperwork Reduction Act. The estimate is not derived from a comprehensive or even a representative survey or study of the costs of Commission rules. Complying with this collection of information requirement is mandatory. Responses will not be kept confidential. An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a currently valid control number. The public may view the background documentation for this information collection at the following Web site, www.reginfo.gov. Comments should be directed to: (i) Desk Officer for the Securities and Exchange Commission, Office of Information and Regulatory Affairs, Office of Management and Budget, Room 10102, New Executive Office Building, Washington, DC 20503, or by sending an email to: Shagufta_ VerDate Sep<11>2014 17:34 Sep 12, 2017 Jkt 241001 Ahmed@omb.eop.gov; and (ii) Pamela Dyson, Director/Chief Information Officer, Securities and Exchange Commission, c/o Remi Pavlik-Simon, 100 F Street NE., Washington, DC 20549 or send an email to: PRA_Mailbox@ sec.gov. Comments must be submitted to OMB within 30 days of this notice. Dated: September 8, 2017. Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017–19446 Filed 9–12–17; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–81549; File No. SR– NYSEAMER–2017–08] Self-Regulatory Organizations; NYSE American LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Modify the NYSE American Options Fee Schedule September 7, 2017. 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 August 31, 2017, NYSE American LLC (the ‘‘Exchange’’ or ‘‘NYSE American’’) filed with the Securities and Exchange Commission (the ‘‘Commission’’) the proposed rule change as described in Items I, II, and III below, which Items have been prepared by the selfregulatory organization. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. 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 Web site 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 1 15 U.S.C. 78s(b)(1). U.S.C. 78a. 3 17 CFR 240.19b–4. 2 15 PO 00000 Frm 00096 Fmt 4703 Sfmt 4703 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 amend the Fee Schedule effective September 1, 2017. Specifically, the Exchange proposes to modify the surcharge that is applied to certain Complex Orders executed on the Exchange. Currently, the Exchange imposes a $0.05 per contract surcharge for any Electronic Non-Customer Complex Order that executes against a Customer Complex Order, regardless of whether the execution occurs in a Complex Order Auction (the ‘‘Surcharge’’).4 The Exchange proposes to modify the Surcharge to $0.10 per contract, which surcharge is comparable to charges imposed by other options exchanges.5 For clarity, the Exchange also proposes to make clear that the Surcharge is applied on a ‘‘per contract’’ basis.6 Additionally, to encourage ATP Holders to transact additional NonCustomer Complex Orders on the Exchange, the Exchange proposes to offer a reduced Surcharge for those ATP Holders that meet a certain volume threshold. Specifically, the Exchange proposes to reduce the per contract surcharge to $0.07 for any ATP Holder that transacts at least 0.20% of Total Industry Customer equity and ETF option average daily volume (or TCADV) of Electronic Non-Customer Complex Order Executions in a month. Finally, the Exchange proposes to add ‘‘TCADV’’ as a defined term in the Key 4 See Fee Schedule, Section I.A., n. 6, available here, https://www.nyse.com/publicdocs/nyse/ markets/american-options/NYSE_American_ Options_Fee_Schedule.pdf. Per the Fee Schedule, a ‘‘Customer’’ is an individual or organization that is not a Broker-Dealer, per Rule 900.2NY(18); and is not a Professional Customer; and a ‘‘Non-Customer’’ is anyone who is not a Customer. See id., Fee Schedule, Key Terms and Definitions. Thus, NonCustomers include Specialists, e-Specialists, Directed Order Market Makers, Firms, Broker Dealers, and Professional Customers. The Exchange notes that Firm Facilitation trades are not electronic and are therefore not subject to the Surcharge. 5 See MIAX Options fee schedule, available here, https://www.miaxoptions.com/sites/default/files/ fee_schedule-files/MIAX_Options_Fee_Schedule_ 08072017.pdf (imposing a $0.10 on certain complex orders). See also The Chicago Board Options Exchange, Inc. (‘‘CBOE’’) fee schedule, available here, http://www.cboe.com/publish/feeschedule/ CBOEFeeSchedule.pdf, at n. 35 (same). 6 See proposed Fee Schedule, Section I.A., n. 6. The Exchange also proposes to correct a typographical error referring to ‘‘a CUBE Auctions’’ by removing the word ‘‘a.’’ See id. E:\FR\FM\13SEN1.SGM 13SEN1 Federal Register / Vol. 82, No. 176 / Wednesday, September 13, 2017 / Notices In addition, the proposed surcharge is reasonable, equitable, and not unfairly discriminatory as it is consistent with fees charged by other options exchanges.13 For example, MIAX imposes a $0.10 ‘‘Per Contract Surcharge for Removing Liquidity Against A Resting Priority Customer Complex Order on the Strategy Book’’ for all option classes), which may result in an overall per contract fee of $0.60.14 Further, the Exchange believes that the proposal to offer a reduced surcharge to those ATP Holders that achieve certain volume thresholds is reasonable, equitable and not unfairly discriminatory. The Exchange believes the proposed reduced rate is reasonably 2. Statutory Basis designed to encourage ATP Holders that transact Non-Customer Complex Orders The Exchange believes that the to direct more of this order flow to the proposed rule change is consistent with Exchange to qualify for the reduced 11 in general, and Section 6(b) of the Act, rates. The proposed rates are reasonable furthers the objectives of Sections and equitable and not unfairly 12 in particular, 6(b)(4) and (5) of the Act, discriminatory because they apply because it provides for the equitable equally to all ATP Holders that transact allocation of reasonable dues, fees, and Non-Customer Complex Orders. In other charges among its members, addition, the proposed changes are issuers and other persons using its equitable and not unfairly facilities and does not unfairly discriminatory because, while only discriminate between customers, Non-Customer Complex Orders qualify issuers, brokers or dealers. for the reduced surcharge, the Exchange The Exchange believes the proposed believes any increase in Non-Customer increase to the Surcharge is reasonable, Complex Orders would result in greater equitable, and not unfairly volume and liquidity being attracted to discriminatory, as it applies to all the Exchange, which benefit all market similarly situated Non-Customer participants by providing more trading Complex Orders. Applying the opportunities and tighter spreads.15 To Surcharge, as modified, to market the extent this goal is achieved, the participant orders except Customer Exchange would improve its overall orders is equitable and not unfairly competitiveness and strengthen its discriminatory because Customer order market quality for all market flow enhances liquidity on the participants. Exchange for the benefit of all market The proposal to define ‘‘TCADV’’ in participants. Specifically, Customer liquidity benefits all market participants the Fee Schedule, as well as to fix the typographical errors in Section I.A.16 by providing more trading and I.E.,17 is likewise reasonable, opportunities, which attracts Market equitable and not unfairly Makers. An increase in the activity of discriminatory because it would add Specialists and Market Makers in turn clarity and transparency to the Fee facilitates tighter spreads, which may cause an additional corresponding 13 See supra note 5. increase in order flow from other market 14 See MIAX fee schedule, supra note 5 participants. sradovich on DSK3GMQ082PROD with NOTICES Terms and Definitions section of the Fee Schedule, which would add clarity and transparency to the Fee Schedule.7 As proposed, TCADV would refer to ‘‘Total Industry Customer equity and ETF option average daily volume that includes OCC calculated Customer volume of all types, including Complex Order Transactions and QCC transactions, in equity and ETF options.’’ 8 This proposed definition is consistent with how other options exchanges define this term.9 Consistent with this proposed change, the Exchange proposes to utilize this defined term in Section I.E. regarding the American Customer Engagement (‘‘ACE’’) Program.10 7 See Fee Schedule, Preface, Key Terms and Definitions. 8 See proposed Fee Schedule, Preface, Key Terms and Definitions. 9 See e.g., NYSE Arca Options Fee Schedule, Endnote 8. 10 See proposed Fee Schedule, Section I.E. The Exchange also proposes to fix a typographical error and add the word ‘‘for’’ to the end of the first paragraph describing the ACE Program, which would clearly provide that the ACE Program offers ‘‘two methods for OFPs to receive credits’’ (emphasis added). See id. 11 15 U.S.C. 78f(b). 12 15 U.S.C. 78f(b)(4) and (5). VerDate Sep<11>2014 17:34 Sep 12, 2017 Jkt 241001 (providing for a potential total per contract fee of $0.60 for Market Makers, which includes a ‘‘Complex Per Contract Fee for Penny Classes,’’ a per contract ‘‘Marketing Fee,’’ and a $0.10 ‘‘Per Contract Surcharge for Removing Liquidity Against a Resting Priority Customer Complex Order on the Strategy Book for Penny and Non-Penny Classes’’). The Exchange believes that MIAX does not subject transactions in a complex order auction to any fee cap. See also Securities Exchange Act Release No. 80262 (March 16, 2017), 82 FR 14779 (March 22, 2017) (SR–NYSEMKT–2017–15) (establishing the Surcharge). 15 The Exchange notes that it does not impose any fee on Electronic executions of Customer interest. 16 See supra note 6. 17 See supra note 10. PO 00000 Frm 00097 Fmt 4703 Sfmt 4703 43065 Schedule to the benefit of all market participants. For these 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,18 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 proposed modification to the Surcharge would not impose an unfair burden on competition as it is consistent with fees charged by other exchanges.19 Further, the proposal to reduce the surcharge for certain ATP Holders that achieve certain volume thresholds would likewise not impose an unfair burden on competition because it is designed to attract NonCustomer Complex Orders to the Exchange. To the extent that this purpose is achieved, this proposal would enhance the quality of the Exchange’s markets and increase the volume of Complex Orders traded here. In turn, all the Exchange’s market participants would benefit from the improved market liquidity. If the proposed changes make the Exchange a more attractive marketplace for market participants at other exchanges, such market participants are welcome to become ATP Holders. The Exchange notes that it operates in a highly competitive market in which market participants can readily favor competing venues. In such an environment, the Exchange must continually review, and consider adjusting, its fees and credits to remain competitive with other exchanges. For the reasons described above, the Exchange believes that the proposed rule change reflects this competitive environment. C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others No written comments were solicited or received with respect to the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing rule change is effective upon filing pursuant to Section 19(b)(3)(A) 20 of the Act and 18 15 U.S.C. 78f(b)(8). supra note 5. 20 15 U.S.C. 78s(b)(3)(A). 19 See E:\FR\FM\13SEN1.SGM 13SEN1 43066 Federal Register / Vol. 82, No. 176 / Wednesday, September 13, 2017 / Notices subparagraph (f)(2) of Rule 19b–4 21 thereunder, because it establishes a due, fee, or other charge imposed by the Exchange. 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) 22 of the Act to determine whether the proposed rule change should be approved or disapproved. 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: sradovich on DSK3GMQ082PROD with NOTICES Electronic Comments • Use 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– NYSEAMER–2017–08 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–2017–08. 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 Web site (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 Web site viewing and printing in the Commission’s Public 21 17 22 15 CFR 240.19b–4(f)(2). U.S.C. 78s(b)(2)(B). VerDate Sep<11>2014 17:34 Sep 12, 2017 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; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR– NYSEAMER–2017–08, and should be submitted on or before October 4, 2017. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.23 Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017–19378 Filed 9–12–17; 8:45 am] BILLING CODE 8011–01–P SMALL BUSINESS ADMINISTRATION [Disaster Declaration #15293 and #15294; U.S. VIRGIN ISLANDS Disaster Number VI– 00009] Presidential Declaration of a Major Disaster for the U.S. Virgin Islands U.S. Small Business Administration. ACTION: Notice. AGENCY: Percent For Physical Damage: Homeowners with Credit Available Elsewhere ...................... Homeowners without Credit Available Elsewhere .............. Businesses with Credit Available Elsewhere ...................... Businesses without Credit Available Elsewhere .............. Non-Profit Organizations with Credit Available Elsewhere ... Non-Profit Organizations without Credit Available Elsewhere ..................................... For Economic Injury: Businesses & Small Agricultural Cooperatives without Credit Available Elsewhere .............. Non-Profit Organizations without Credit Available Elsewhere ..................................... 3.500 1.750 6.610 3.305 2.500 2.500 3.305 2.500 The number assigned to this disaster for physical damage is 152938 and for economic injury is 152940. (Catalog of Federal Domestic Assistance Number 59008) This is a Notice of the Presidential declaration of a major disaster for the U.S. VIRGIN ISLANDS (FEMA–4335–DR), dated 09/07/2017. Incident: Hurricane Irma. Incident Period: 09/06/2017 and continuing. James E. Rivera, Associate Administrator for Disaster Assistance. Issued on 09/07/2017. Physical Loan Application Deadline Date: 11/06/2017. Economic Injury (EIDL) Loan Application Deadline Date: 06/07/2018. ADDRESSES: Submit completed loan applications to: U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155. FOR FURTHER INFORMATION CONTACT: A. Escobar, Office of Disaster Assistance, U.S. Small Business Administration, 409 3rd Street SW., Suite 6050, Washington, DC 20416, (202) 205–6734. SUPPLEMENTARY INFORMATION: Notice is hereby given that as a result of the President’s major disaster declaration on 09/07/2017, applications for disaster loans may be filed at the address listed above or other locally announced SOCIAL SECURITY ADMINISTRATION SUMMARY: DATES: 23 17 Jkt 241001 locations. The following areas have been determined to be adversely affected by the disaster: Primary Areas (Physical Damage and Economic Injury Loans): Saint John, Saint Thomas Contiguous Areas (Economic Injury Loans Only): None The Interest Rates are: PO 00000 CFR 200.30–3(a)(12). Frm 00098 Fmt 4703 Sfmt 4703 [FR Doc. 2017–19447 Filed 9–12–17; 8:45 am] BILLING CODE 8025–01–P [Docket No: SSA–2017–0050] Agency Information Collection Activities: Proposed Request and Comment Request The Social Security Administration (SSA) publishes a list of information collection packages requiring clearance by the Office of Management and Budget (OMB) in compliance with Public Law 104–13, the Paperwork Reduction Act of 1995, effective October 1, 1995. This notice includes revisions of OMB-approved information collections. SSA is soliciting comments on the accuracy of the agency’s burden estimate; the need for the information; its practical utility; ways to enhance its quality, utility, and clarity; and ways to minimize burden on respondents, including the use of automated E:\FR\FM\13SEN1.SGM 13SEN1

Agencies

[Federal Register Volume 82, Number 176 (Wednesday, September 13, 2017)]
[Notices]
[Pages 43064-43066]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-19378]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-81549; File No. SR-NYSEAMER-2017-08]


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

September 7, 2017.
    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 August 31, 2017, NYSE American LLC (the ``Exchange'' or 
``NYSE American'') filed with the Securities and Exchange Commission 
(the ``Commission'') the proposed rule change as described in Items I, 
II, and III below, which Items have been prepared by the self-
regulatory organization. The Commission is publishing this notice to 
solicit comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to modify the NYSE American Options Fee 
Schedule. The proposed change is available on the Exchange's Web site 
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 amend the Fee Schedule effective 
September 1, 2017. Specifically, the Exchange proposes to modify the 
surcharge that is applied to certain Complex Orders executed on the 
Exchange.
    Currently, the Exchange imposes a $0.05 per contract surcharge for 
any Electronic Non-Customer Complex Order that executes against a 
Customer Complex Order, regardless of whether the execution occurs in a 
Complex Order Auction (the ``Surcharge'').\4\ The Exchange proposes to 
modify the Surcharge to $0.10 per contract, which surcharge is 
comparable to charges imposed by other options exchanges.\5\ For 
clarity, the Exchange also proposes to make clear that the Surcharge is 
applied on a ``per contract'' basis.\6\
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    \4\ See Fee Schedule, Section I.A., n. 6, available here, 
https://www.nyse.com/publicdocs/nyse/markets/american-options/NYSE_American_Options_Fee_Schedule.pdf. Per the Fee Schedule, a 
``Customer'' is an individual or organization that is not a Broker-
Dealer, per Rule 900.2NY(18); and is not a Professional Customer; 
and a ``Non-Customer'' is anyone who is not a Customer. See id., Fee 
Schedule, Key Terms and Definitions. Thus, Non-Customers include 
Specialists, e-Specialists, Directed Order Market Makers, Firms, 
Broker Dealers, and Professional Customers. The Exchange notes that 
Firm Facilitation trades are not electronic and are therefore not 
subject to the Surcharge.
    \5\ See MIAX Options fee schedule, available here, https://www.miaxoptions.com/sites/default/files/fee_schedule-files/MIAX_Options_Fee_Schedule_08072017.pdf (imposing a $0.10 on certain 
complex orders). See also The Chicago Board Options Exchange, Inc. 
(``CBOE'') fee schedule, available here, http://www.cboe.com/publish/feeschedule/CBOEFeeSchedule.pdf, at n. 35 (same).
    \6\ See proposed Fee Schedule, Section I.A., n. 6. The Exchange 
also proposes to correct a typographical error referring to ``a CUBE 
Auctions'' by removing the word ``a.'' See id.
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    Additionally, to encourage ATP Holders to transact additional Non-
Customer Complex Orders on the Exchange, the Exchange proposes to offer 
a reduced Surcharge for those ATP Holders that meet a certain volume 
threshold. Specifically, the Exchange proposes to reduce the per 
contract surcharge to $0.07 for any ATP Holder that transacts at least 
0.20% of Total Industry Customer equity and ETF option average daily 
volume (or TCADV) of Electronic Non-Customer Complex Order Executions 
in a month.
    Finally, the Exchange proposes to add ``TCADV'' as a defined term 
in the Key

[[Page 43065]]

Terms and Definitions section of the Fee Schedule, which would add 
clarity and transparency to the Fee Schedule.\7\ As proposed, TCADV 
would refer to ``Total Industry Customer equity and ETF option average 
daily volume that includes OCC calculated Customer volume of all types, 
including Complex Order Transactions and QCC transactions, in equity 
and ETF options.'' \8\ This proposed definition is consistent with how 
other options exchanges define this term.\9\ Consistent with this 
proposed change, the Exchange proposes to utilize this defined term in 
Section I.E. regarding the American Customer Engagement (``ACE'') 
Program.\10\
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    \7\ See Fee Schedule, Preface, Key Terms and Definitions.
    \8\ See proposed Fee Schedule, Preface, Key Terms and 
Definitions.
    \9\ See e.g., NYSE Arca Options Fee Schedule, Endnote 8.
    \10\ See proposed Fee Schedule, Section I.E. The Exchange also 
proposes to fix a typographical error and add the word ``for'' to 
the end of the first paragraph describing the ACE Program, which 
would clearly provide that the ACE Program offers ``two methods for 
OFPs to receive credits'' (emphasis added). See id.
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act,\11\ in general, and furthers the 
objectives of Sections 6(b)(4) and (5) of the Act,\12\ 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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    \11\ 15 U.S.C. 78f(b).
    \12\ 15 U.S.C. 78f(b)(4) and (5).
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    The Exchange believes the proposed increase to the Surcharge is 
reasonable, equitable, and not unfairly discriminatory, as it applies 
to all similarly situated Non-Customer Complex Orders. Applying the 
Surcharge, as modified, to market participant orders except Customer 
orders is equitable and not unfairly discriminatory because Customer 
order flow enhances liquidity on the Exchange for the benefit of all 
market participants. Specifically, Customer liquidity benefits all 
market participants by providing more trading opportunities, which 
attracts Market Makers. An increase in the activity of Specialists and 
Market Makers in turn facilitates tighter spreads, which may cause an 
additional corresponding increase in order flow from other market 
participants.
    In addition, the proposed surcharge is reasonable, equitable, and 
not unfairly discriminatory as it is consistent with fees charged by 
other options exchanges.\13\ For example, MIAX imposes a $0.10 ``Per 
Contract Surcharge for Removing Liquidity Against A Resting Priority 
Customer Complex Order on the Strategy Book'' for all option classes), 
which may result in an overall per contract fee of $0.60.\14\
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    \13\ See supra note 5.
    \14\ See MIAX fee schedule, supra note 5 (providing for a 
potential total per contract fee of $0.60 for Market Makers, which 
includes a ``Complex Per Contract Fee for Penny Classes,'' a per 
contract ``Marketing Fee,'' and a $0.10 ``Per Contract Surcharge for 
Removing Liquidity Against a Resting Priority Customer Complex Order 
on the Strategy Book for Penny and Non-Penny Classes''). The 
Exchange believes that MIAX does not subject transactions in a 
complex order auction to any fee cap. See also Securities Exchange 
Act Release No. 80262 (March 16, 2017), 82 FR 14779 (March 22, 2017) 
(SR-NYSEMKT-2017-15) (establishing the Surcharge).
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    Further, the Exchange believes that the proposal to offer a reduced 
surcharge to those ATP Holders that achieve certain volume thresholds 
is reasonable, equitable and not unfairly discriminatory. The Exchange 
believes the proposed reduced rate is reasonably designed to encourage 
ATP Holders that transact Non-Customer Complex Orders to direct more of 
this order flow to the Exchange to qualify for the reduced rates. The 
proposed rates are reasonable and equitable and not unfairly 
discriminatory because they apply equally to all ATP Holders that 
transact Non-Customer Complex Orders. In addition, the proposed changes 
are equitable and not unfairly discriminatory because, while only Non-
Customer Complex Orders qualify for the reduced surcharge, the Exchange 
believes any increase in Non-Customer Complex Orders would result in 
greater volume and liquidity being attracted to the Exchange, which 
benefit all market participants by providing more trading opportunities 
and tighter spreads.\15\ To the extent this goal is achieved, the 
Exchange would improve its overall competitiveness and strengthen its 
market quality for all market participants.
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    \15\ The Exchange notes that it does not impose any fee on 
Electronic executions of Customer interest.
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    The proposal to define ``TCADV'' in the Fee Schedule, as well as to 
fix the typographical errors in Section I.A.\16\ and I.E.,\17\ is 
likewise reasonable, equitable and not unfairly discriminatory because 
it would add clarity and transparency to the Fee Schedule to the 
benefit of all market participants.
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    \16\ See supra note 6.
    \17\ See supra note 10.
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    For these 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,\18\ 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 proposed modification to the Surcharge 
would not impose an unfair burden on competition as it is consistent 
with fees charged by other exchanges.\19\ Further, the proposal to 
reduce the surcharge for certain ATP Holders that achieve certain 
volume thresholds would likewise not impose an unfair burden on 
competition because it is designed to attract Non-Customer Complex 
Orders to the Exchange. To the extent that this purpose is achieved, 
this proposal would enhance the quality of the Exchange's markets and 
increase the volume of Complex Orders traded here. In turn, all the 
Exchange's market participants would benefit from the improved market 
liquidity. If the proposed changes make the Exchange a more attractive 
marketplace for market participants at other exchanges, such market 
participants are welcome to become ATP Holders.
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    \18\ 15 U.S.C. 78f(b)(8).
    \19\ See supra note 5.
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    The Exchange notes that it operates in a highly competitive market 
in which market participants can readily favor competing venues. In 
such an environment, the Exchange must continually review, and consider 
adjusting, its fees and credits to remain competitive with other 
exchanges. For the reasons described above, the Exchange believes that 
the proposed rule change reflects this competitive environment.

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

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

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

    The foregoing rule change is effective upon filing pursuant to 
Section 19(b)(3)(A) \20\ of the Act and

[[Page 43066]]

subparagraph (f)(2) of Rule 19b-4 \21\ thereunder, because it 
establishes a due, fee, or other charge imposed by the Exchange.
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    \20\ 15 U.S.C. 78s(b)(3)(A).
    \21\ 17 CFR 240.19b-4(f)(2).
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    At any time within 60 days of the filing of such proposed rule 
change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is necessary or 
appropriate in the public interest, for the protection of investors, or 
otherwise in furtherance of the purposes of the Act. If the Commission 
takes such action, the Commission shall institute proceedings under 
Section 19(b)(2)(B) \22\ of the Act to determine whether the proposed 
rule change should be approved or disapproved.
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    \22\ 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 rule-comments@sec.gov. Please include 
File Number SR-NYSEAMER-2017-08 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-2017-08. 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 Web site (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 Web site 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; the Commission does 
not edit personal identifying information from submissions. You should 
submit only information that you wish to make available publicly. All 
submissions should refer to File Number SR-NYSEAMER-2017-08, and should 
be submitted on or before October 4, 2017.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\23\
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    \23\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-19378 Filed 9-12-17; 8:45 am]
 BILLING CODE 8011-01-P