Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Regarding Fees and Rebates Relating to Executed Qualified Contingent Cross Orders, 72988-72989 [2011-30430]
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Federal Register / Vol. 76, No. 228 / Monday, November 28, 2011 / Notices
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–65797; File No. SR–
NYSEArca–2011–83]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Regarding Fees and
Rebates Relating to Executed Qualified
Contingent Cross Orders
November 21, 2011.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b-4 thereunder,2
notice is hereby given that, on
November 15, 2011, NYSE Arca, Inc.
(the ‘‘Exchange’’ or ‘‘NYSE Arca’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I, II, and III below, which Items
have been prepared by the Exchange.
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 amend the
NYSE Arca Options Fee Schedule (‘‘Fee
Schedule’’) to more clearly describe the
fees and rebates relating to executed
Qualified Contingent Cross (‘‘QCC’’)
orders. The text of the proposed rule
change is available at the Exchange, the
Commission’s Public Reference Room,
and https://www.nyse.com.
pmangrum on DSK3VPTVN1PROD with NOTICES
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
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to amend the
Fee Schedule to more clearly describe
1 15
2 17
U.S.C. 78s(b)(1).
CFR 240.19b-4.
VerDate Mar<15>2010
15:34 Nov 25, 2011
Jkt 226001
the fees and rebates relating to executed
QCC orders. Specifically, the Exchange
proposes to memorialize the intent set
forth in its rule filing adopting the fee
for executed QCC orders, which states
that the fees relating to executed QCC
orders ‘‘will apply to each side of the
transaction.’’ 3 As such, the Exchange
intends to amend the Fee Schedule to
reflect that the fee of $.10 for executed
QCC orders is charged per contract side.
To parallel this language, the Exchange
also proposes to amend the Fee
Schedule to reflect a rebate to the Floor
Broker of $.05 per contract side instead
of $.10 per contract for executed QCC
orders. There is no change to the
amount rebated to the Floor Broker for
executed QCC orders. As stated in the
rule filing implementing the Floor
Broker rebate,4 the QCC rebate is
credited to the executing Floor Broker,
who handles both contract sides with
respect to such orders. Thus, the Floor
Broker receives a total rebate of $.10 for
both contract sides together. The
proposed change to the text of the Fee
Schedule will take effect on November
15, 2011.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Securities Exchange
Act of 1934 (the ‘‘Act’’),5 in general, and
Section 6(b)(4) of the Act,6 in particular,
because it is designed to provide for the
equitable allocation of reasonable dues,
fees, and other charges among its
members and other persons using its
facilities. Specifically, the Exchange
believes that the proposed change is
equitable, because it will reduce
confusion for all market participants
relating to the way fees are charged and
rebated for executed QCC orders. The
Fee Schedule will state that the fee of
$.10 for executed QCC orders applies
per contract side, as stated in the rule
filing adopting the fee for QCC orders.7
In addition, the Fee Schedule will state
that the rebate credited to the executing
Floor Broker on a QCC order is $.05 per
contract side, for a total of $.10 for both
contract sides handled by the Floor
Broker.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
3 See Securities Exchange Act Release No. 64596
(June 3, 2011), 76 FR 33797 (June 9, 2011) (SR–
NYSEArca–2011–36).
4 See Securities Exchange Act Release No. 65730
(November 10, 2011) (SR–NYSEArca–2011–79).
5 15 U.S.C. 78f(b).
6 15 U.S.C. 78f(b)(4).
7 See note 3, supra.
PO 00000
Frm 00092
Fmt 4703
Sfmt 4703
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were solicited
or received with respect to the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change is effective
upon filing pursuant to Section
19(b)(3)(A) 8 of the Act and
subparagraph (f)(2) of Rule 19b–4 9
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.
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 (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rulecomments@sec.gov. Please include File
Number SR–NYSEArca–2011–83 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street NE., Washington, DC
20549–1090.
All submissions should refer to File
Number SR–NYSEArca-2011–83. 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 (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
8 15
9 17
E:\FR\FM\28NON1.SGM
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(2).
28NON1
Federal Register / Vol. 76, No. 228 / Monday, November 28, 2011 / Notices
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 a.m. and 3 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–
NYSEArca-2011–83 and should be
submitted on or before December 19,
2011.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2011–30430 Filed 11–25–11; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–65794; File No. SR–OPRA–
2011–03]
Options Price Reporting Authority;
Notice of Filing and Immediate
Effectiveness of Proposed Amendment
to the Plan To Implement New Policies
Regarding Reporting and Usage-Based
Vendor Fees
pmangrum on DSK3VPTVN1PROD with NOTICES
November 21, 2011.
Pursuant to Section 11A of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 608 thereunder,2
notice is hereby given that on November
7, 2011, the Options Price Reporting
Authority (‘‘OPRA’’) submitted to the
Securities and Exchange Commission
(‘‘Commission’’) an amendment to the
Plan for Reporting of Consolidated
Options Last Sale Reports and
Quotation Information (‘‘OPRA Plan’’).3
10 17
CFR 200.30–3(a)(12).
U.S.C. 78k–1.
2 17 CFR 242.608.
3 The OPRA Plan is a national market system plan
approved by the Commission pursuant to Section
11A of the Act and Rule 608 thereunder (formerly
1 15
VerDate Mar<15>2010
15:34 Nov 25, 2011
Jkt 226001
The proposed amendment would
implement a new set of policies entitled
‘‘Policies with respect to Reporting and
Usage-based Vendor Fees.’’ The
Commission is publishing this notice to
solicit comments from interested
persons on the proposed OPRA Plan
amendment.
I. Description and Purpose of the Plan
Amendment
OPRA’s proposed ‘‘Policies with
respect to Reporting and Usage-based
Vendor Fees’’ (the ‘‘Policies’’) are
comprised of three sections. The first
section describes OPRA policies relating
to the reports that OPRA requires in
order to determine the fees that are
payable to OPRA by Vendors’ and
Professional Subscribers. The second
and third sections describe OPRA
policies pertaining to ‘‘Usage-based
Vendor Fees.’’ 4 Usage-based Vendor
Fees are one of the types of fees that are
payable to OPRA by Vendors. OPRA is
not proposing to change the amount of
any of its fees, but rather to clarify its
reporting requirements and the
circumstances in which certain fees are
payable.
(1) Policies with Respect to Reporting.
Section 1 of the new Policies
summarizes OPRA’s reporting
requirements for Vendors and for
Professional Subscribers that have an
obligation to report their usage of OPRA
data directly to OPRA. (These
Professional Subscribers are sometimes
referred to as ‘‘internal distributors.’’ 5)
Rule 11Aa3–2). See Securities Exchange Act
Release No. 17638 (March 18, 1981), 22 S.E.C.
Docket 484 (March 31, 1981). The full text of the
OPRA Plan is available at https://
www.opradata.com.
The OPRA Plan provides for the collection and
dissemination of last sale and quotation information
on options that are traded on the participant
exchanges. The nine participants to the OPRA Plan
are BATS Exchange, Inc., Chicago Board Options
Exchange, Incorporated, C2 Options Exchange,
Incorporated, International Securities Exchange,
LLC, NASDAQ OMX BX, Inc., NASDAQ OMX
PHLX, Inc., NASDAQ Stock Market LLC, NYSE
Amex, Inc., and NYSE Arca, Inc.
4 ‘‘Usage-based Vendor Fees’’ or ‘‘usage-based
fees’’ are fees that are payable by each Vendor with
respect to access to OPRA Data by the Vendor’s
Subscribers on a ‘‘Per Query’’ or ‘‘meter-based’’
basis. Usage-based fees are applicable, at the
election of the Vendor, to queries for ‘‘quote
packets’’ or ‘‘options chains.’’ The rates for usagebased fees are stated, and the terms ‘‘quote packet’’
and ‘‘options chain’’ are defined, in OPRA’s Fee
Schedule. OPRA’s Fee Schedule is available on
OPRA’s Web site, www.opradata.com.
5 Professional Subscribers that are obliged to
report their usage of OPRA data directly to OPRA
are sometimes referred to as ‘‘internal distributors’’
because they have the independent ability to entitle
access to OPRA data by their employees. These
Professional Subscribers must have entered into
Professional Subscriber Agreements directly with
OPRA, and must also have entered into either a
Direct Circuit Connection Rider or an Indirect
PO 00000
Frm 00093
Fmt 4703
Sfmt 4703
72989
OPRA has not previously summarized
its requirements in a single document.
As described in Section 1, OPRA
requires that a Vendor report to OPRA
with respect to:
• The Professional Subscribers to
which the Vendor is providing bulk data
feeds of OPRA Data (enabling these
Professional Subscribers to act as
internal distributors).
• The Professional Subscribers that
have entered into Professional
Subscriber Agreements directly with
OPRA and that have devices and/or
User IDs entitled by the Vendors.6
• The Professional Subscribers to
which the Vendor distributes OPRA
data and for whose access it pays OPRA
usage-based fees (i.e., Professional
Subscribers to which it distributes
OPRA data on a ‘‘Per Query’’ or ‘‘meterbased’’ basis).
• The Non-Professional Subscribers
to whom the Vendor distributes OPRA
data on a ‘‘Per Query’’ or ‘‘meter-based’’
basis and for whose access it pays OPRA
usage-based fees.
• The Non-Professional Subscribers
to whom the Vendor distributes OPRA
data and for whose access it pays OPRA
Nonprofessional Subscriber Fees.7
• Any voice-synthesized market data
service provided by the Vendor.
Also as described in Section 1, OPRA
requires that a Professional Subscriber
that is an internal distributor report to
OPRA with respect to the devices and
User IDs that have .been entitled by the
Professional Subscriber to have access
to OPRA data.
(2) Policies Relating to Usage-Based
Fees. Section 2 of the Policies describes
OPRA’s longstanding policies with
respect to three questions that Vendors
occasionally ask relating to OPRA’s
usage-based fees.
Paragraph 2(a) states OPRA’s policy
with respect to a Vendor that wishes to
have access to OPRA data other than in
connection with its activities as a
Vendor—that is, to have access to OPRA
(Vendor Pass-Through) Circuit Connection Rider
with OPRA. OPRA sometimes refers to the data
service to a Professional Subscriber that enables the
Professional Subscriber to act as an internal
distributor as a ‘‘bulk data feed,’’ and that term is
defined in the Policies for that purpose.
6 OPRA uses these reports to generate invoices for
‘‘Professional Subscriber Device-based Fees’’ that it
sends directly to these Professional Subscribers.
7 OPRA’s Fee Schedule permits a Vendor to pay
fees with respect to the receipt of OPRA data by a
Nonprofessional Subscriber in one of two ways:
Either by counting quote packets or options chains
and paying usage-based fees or by paying the
‘‘Nonprofessional Subscriber Fee’’. The usage-based
fees for Nonprofessional Subscribers are subject to
a monthly cap, currently $1.00/month/
Nonprofessional, and the Nonprofessional
Subscriber Fee is a flat fee, also currently $1.00/
month/Nonprofessional.
E:\FR\FM\28NON1.SGM
28NON1
]]>Agencies
[Federal Register Volume 76, Number 228 (Monday, November 28, 2011)]
[Notices]
[Pages 72988-72989]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-30430]
[[Page 72988]]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-65797; File No. SR-NYSEArca-2011-83]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change Regarding Fees and
Rebates Relating to Executed Qualified Contingent Cross Orders
November 21, 2011.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that, on November 15, 2011, NYSE Arca, Inc. (the ``Exchange'' or ``NYSE
Arca'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I, II,
and III below, which Items have been prepared by the Exchange. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend the NYSE Arca Options Fee Schedule
(``Fee Schedule'') to more clearly describe the fees and rebates
relating to executed Qualified Contingent Cross (``QCC'') orders. The
text of the proposed rule change is available at the Exchange, the
Commission's Public Reference Room, and https://www.nyse.com.
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
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend the Fee Schedule to more clearly
describe the fees and rebates relating to executed QCC orders.
Specifically, the Exchange proposes to memorialize the intent set forth
in its rule filing adopting the fee for executed QCC orders, which
states that the fees relating to executed QCC orders ``will apply to
each side of the transaction.'' \3\ As such, the Exchange intends to
amend the Fee Schedule to reflect that the fee of $.10 for executed QCC
orders is charged per contract side. To parallel this language, the
Exchange also proposes to amend the Fee Schedule to reflect a rebate to
the Floor Broker of $.05 per contract side instead of $.10 per contract
for executed QCC orders. There is no change to the amount rebated to
the Floor Broker for executed QCC orders. As stated in the rule filing
implementing the Floor Broker rebate,\4\ the QCC rebate is credited to
the executing Floor Broker, who handles both contract sides with
respect to such orders. Thus, the Floor Broker receives a total rebate
of $.10 for both contract sides together. The proposed change to the
text of the Fee Schedule will take effect on November 15, 2011.
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release No. 64596 (June 3,
2011), 76 FR 33797 (June 9, 2011) (SR-NYSEArca-2011-36).
\4\ See Securities Exchange Act Release No. 65730 (November 10,
2011) (SR-NYSEArca-2011-79).
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Securities Exchange Act of 1934 (the
``Act''),\5\ in general, and Section 6(b)(4) of the Act,\6\ in
particular, because it is designed to provide for the equitable
allocation of reasonable dues, fees, and other charges among its
members and other persons using its facilities. Specifically, the
Exchange believes that the proposed change is equitable, because it
will reduce confusion for all market participants relating to the way
fees are charged and rebated for executed QCC orders. The Fee Schedule
will state that the fee of $.10 for executed QCC orders applies per
contract side, as stated in the rule filing adopting the fee for QCC
orders.\7\ In addition, the Fee Schedule will state that the rebate
credited to the executing Floor Broker on a QCC order is $.05 per
contract side, for a total of $.10 for both contract sides handled by
the Floor Broker.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78f(b).
\6\ 15 U.S.C. 78f(b)(4).
\7\ See note 3, supra.
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act.
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) \8\ of the Act and subparagraph (f)(2) of Rule 19b-
4 \9\ 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.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
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 (https://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-NYSEArca-2011-83 on the subject line.
Paper Comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-NYSEArca-2011-83. 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 (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent
[[Page 72989]]
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 a.m. and 3 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-NYSEArca-2011-83 and should be submitted on or before
December 19, 2011.
For the Commission, by the Division of Trading and Markets, pursuant
to delegated authority.\10\
---------------------------------------------------------------------------
\10\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2011-30430 Filed 11-25-11; 8:45 am]
BILLING CODE 8011-01-P
