Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the NYSE Amex Options Fee Schedule To Modify the Existing Floor Broker Rebate for Executed Qualified Contingent Cross Orders, 26677-26679 [2013-10742]
Download as PDF
Federal Register / Vol. 78, No. 88 / Tuesday, May 7, 2013 / Notices
IV. Solicitation of Comments
other participants may access the
Exchange in a manner that makes the
most economic sense for them.
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. The
Exchange believes that the proposed
change will encourage Firms to send
higher volumes of order flow to the
Exchange to qualify for the lower
transaction fees. 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. 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.
tkelley on DSK3SPTVN1PROD with NOTICES
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) 12 of the Act and
subparagraph (f)(2) of Rule 19b–4 13
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) 14 of the Act to
determine whether the proposed rule
change should be approved or
disapproved.
12 15
U.S.C. 78s(b)(3)(A).
13 17 CFR 240.19b–4(f)(2).
14 15 U.S.C. 78s(b)(2)(B).
VerDate Mar<15>2010
15:24 May 06, 2013
Jkt 229001
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:
• 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–NYSEMKT–2013–38 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–NYSEMKT–2013–38. 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
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 such
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
publicly available. All submissions
should refer to File Number SR–
NYSEMKT–2013–38 and should be
submitted on or before May 28, 2013.
Frm 00067
Fmt 4703
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.15
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2013–10741 Filed 5–6–13; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Electronic Comments
PO 00000
26677
Sfmt 4703
[Release No. 34–69489; File No. SR–
NYSEMKT–2013–39]
Self-Regulatory Organizations; NYSE
MKT LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend the NYSE
Amex Options Fee Schedule To Modify
the Existing Floor Broker Rebate for
Executed Qualified Contingent Cross
Orders
May 1, 2013.
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 April 19,
2013, NYSE MKT LLC (the ‘‘Exchange’’
or ‘‘NYSE MKT’’) 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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend the
NYSE Amex Options Fee Schedule
(‘‘Fee Schedule’’) to modify the existing
Floor Broker rebate for executed
qualified contingent cross (‘‘QCC’’)
orders. The text of the proposed rule
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
15 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
1 15
E:\FR\FM\07MYN1.SGM
07MYN1
26678
Federal Register / Vol. 78, No. 88 / Tuesday, May 7, 2013 / Notices
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
tkelley on DSK3SPTVN1PROD with NOTICES
1. Purpose
The Exchange proposes to amend the
Fee Schedule to modify the existing
Floor Broker rebate for executed QCC
orders.4 The proposed change will be
operative on May 1, 2013.
Specifically, the Exchange proposes to
adopt a tiered rebate based on Floor
Broker executed QCC volume in a given
month. The existing rebate is $.07 per
contract,5 and this rebate will continue
to be paid to Floor Brokers that execute
monthly QCC volumes up to and
including 300,000 contracts. The
Exchange is proposing to adopt a higher
per contract rebate of $.10 per contract
to be paid to Floor Brokers for any QCC
volume in excess of 300,000 contracts in
a given month. The rebate paid per
contract will include all eligible volume
within each tier at the applicable rate.
The rebate is per contract and not
retroactive to the first contract. Thus, if
a Floor Broker has 400,000 contracts in
QCC volume, he or she will earn a
rebate of $.07 for the first 300,000
contracts and $.10 for the remaining
100,000 contracts. As with the existing
rebate, Customer to Customer QCC
trades will not qualify for any rebate as
such a transaction nets the Exchange no
revenue.6
The Exchange notes that the proposed
rebate falls within the range of rebates
paid for QCC volumes across the
industry. Specifically, the Exchange
notes that the International Securities
Exchange (‘‘ISE’’) pays a volume-based
rebate for QCC and Solicitation volumes
that ranges from $.00 to $.11 per
contract.7 NASDAQ OMX PHLX
4 The QCC permits an NYSE Amex ATP Holder
to effect a qualified contingent trade (‘‘QCT’’) in a
Regulation NMS stock and cross the options leg of
the trade on the Exchange immediately upon entry
and without order exposure if the order is for at
least 1,000 contracts, is part of a QCT, is executed
at a price at least equal to the national best bid or
offer, as long as there are no Customer orders in the
Exchange’s Consolidated Book at the same price.
5 See Securities Act Release No. 66376 (February
10, 2012), 77 FR 9293 (February 16, 2012) (SR–
NYSEAmex–2012–05).
6 See Securities Act Release No. 65943 (December
13, 2011), 76 FR 78704 (December 19, 2011) (SR–
NYSEAmex–2011–95).
7 See ISE fee schedule, available at https://www.
ise.com/assets/documents/OptionsExchange/legal/
fee/fee_schedule.pdf.
VerDate Mar<15>2010
15:24 May 06, 2013
Jkt 229001
(‘‘PHLX’’) also pays a volume-based
rebate for QCC volume that ranges from
$.00 to $.11 per contract.8
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the provisions of Section 6(b) 9 of the
Act, in general, and Section 6(b)(4) and
(5) 10 of the Act, in particular, in that 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 and
does not unfairly discriminate between
customers, issuers, brokers, or dealers.
The Exchange believes that the
proposed tiered rebates are reasonable
because they are within the range of
tiered volume rebates on other
exchanges.11 To the extent that the
rebate is successful in attracting
additional order flow to the Exchange,
all market participants should benefit.
Any participant will be able to engage
a rebate-receiving Floor Broker in a
discussion surrounding the appropriate
level of fees that they may be charged
for entrusting the QCC order to the Floor
Broker. Moreover, the Exchange believes
that the proposed rebates are equitable
and not unfairly discriminatory because
they will apply to all Floor Brokers that
execute QCC orders on Exchange on an
equal and non-discriminatory basis.
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. The
Exchange believes that the proposed
change will allow Floor Brokers to
better compete for QCC volumes as the
rebates are more in line with those paid
to participants on other exchanges. 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 and/or rebates to be
insufficient. 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
8 See PHLX fee schedule, available at https://
nasdaqomxphlx.cchwallstreet.com/
NASDAQOMXPHLXTools/PlatformViewer.asp?
selectednode=chp_1_4&manual=
%2Fnasdaqomxphlx%2Fphlx%2Fphlx-rules
brd%2F.
9 15 U.S.C. 78f(b).
10 15 U.S.C. 78f(b)(4) and (5).
11 See supra notes 7–8.
PO 00000
Frm 00068
Fmt 4703
Sfmt 4703
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) 12 of the Act and
subparagraph (f)(2) of Rule 19b–4 13
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) 14 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:
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–NYSEMKT–2013–39 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–NYSEMKT–2013–39. This
file number should be included on the
subject line if email is used. To help the
12 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(2).
14 15 U.S.C. 78s(b)(2)(B).
13 17
E:\FR\FM\07MYN1.SGM
07MYN1
Federal Register / Vol. 78, No. 88 / Tuesday, May 7, 2013 / Notices
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
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–
NYSEMKT–2013–39 and should be
submitted on or before May 28, 2013.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.15
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2013–10742 Filed 5–6–13; 8:45 am]
BILLING CODE 8011–01–P
SMALL BUSINESS ADMINISTRATION
[Disaster Declaration #13525 and #13526]
Maine Disaster Number ME–00035
U.S. Small Business
Administration.
ACTION: Amendment 1.
tkelley on DSK3SPTVN1PROD with NOTICES
AGENCY:
SUMMARY: This is an amendment of the
Presidential declaration of a major
disaster for Public Assistance Only for
the State of Maine (FEMA–4108–DR),
dated 03/25/2013.
Incident: Severe Winter Storm,
Snowstorm, and Flooding.
Incident Period: 02/08/2013 through
02/09/2013.
Effective Date: 04/30/2013.
Physical Loan Application Deadline
Date: 05/24/2013.
Economic Injury (EIDL) Loan
Application Deadline Date: 12/26/2013.
15 17
CFR 200.30–3(a)(12).
VerDate Mar<15>2010
15:24 May 06, 2013
Jkt 229001
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.
SUPPLEMENTARY INFORMATION: The notice
of the President’s major disaster
declaration for Private Non-Profit
organizations in the State of Maine,
dated 03/25/2013, is hereby amended to
include the following areas as adversely
affected by the disaster.
Primary Counties: Sagadahoc,
Washington.
All other information in the original
declaration remains unchanged.
ADDRESSES:
26679
services of governmental nature may file
disaster loan applications at the address
listed above or other locally announced
locations.
The following areas have been
determined to be adversely affected by
the disaster:
Primary Counties: Barber, Barton,
Dickinson, Ellis, Franklin, Harper,
Harvey, Hodgeman, Kingman, Marion,
Mcpherson, Ness, Osage, Osborne,
Pawnee, Phillips, Pratt, Rice, Rooks,
Rush, Russell, Smith, Stafford.
The Interest Rates are:
Percent
(Catalog of Federal Domestic Assistance
Numbers 59002 and 59008)
For Physical Damage:
Non-Profit Organizations With
Credit Available Elsewhere .....
Non-Profit Organizations Without
Credit Available Elsewhere .....
For Economic Injury:
Non-Profit Organizations Without
Credit Available Elsewhere .....
James E. Rivera,
Associate Administrator for Disaster
Assistance.
The number assigned to this disaster for
physical damage is 13557B and for economic
injury is 13558B.
[FR Doc. 2013–10837 Filed 5–6–13; 8:45 am]
BILLING CODE 8025–01–P
2.875
2.875
2.875
(Catalog of Federal Domestic Assistance
Numbers 59002 and 59008)
SMALL BUSINESS ADMINISTRATION
[Disaster Declaration #13557 and #13558]
James E. Rivera,
Associate Administrator for Disaster
Assistance.
[FR Doc. 2013–10838 Filed 5–6–13; 8:45 am]
Kansas Disaster #KS–00073
BILLING CODE 8025–01–P
U.S. Small Business
Administration.
ACTION: Notice.
SMALL BUSINESS ADMINISTRATION
AGENCY:
[Disaster Declaration #13556]
SUMMARY: This is a Notice of the
Presidential declaration of a major
disaster for Public Assistance Only for
the State of Kansas (FEMA–4112–DR),
dated 04/26/2013.
Incident: Snowstorm.
Incident Period: 02/20/2013 through
02/23/2013.
Effective Date: 04/26/2013.
Physical Loan Application Deadline
Date: 06/25/2013.
Economic Injury (EIDL) Loan
Application Deadline Date: 01/27/2014.
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.
SUPPLEMENTARY INFORMATION: Notice is
hereby given that as a result of the
President’s major disaster declaration on
04/26/2013, Private Non-Profit
organizations that provide essential
PO 00000
Frm 00069
Fmt 4703
Sfmt 4703
Massachusetts Disaster #MA–00055
Declaration of Economic Injury
U.S. Small Business
Administration.
ACTION: Notice.
AGENCY:
SUMMARY: This is a notice of an
Economic Injury Disaster Loan (EIDL)
declaration for the Commonwealth of
Massachusetts, dated 04/26/2013.
Incident: Boston Marathon Bombing.
Incident Period: 04/15/2013.
Effective Date: 04/26/2013.
EIDL Loan Application Deadline Date:
01/27/2014.
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.
SUPPLEMENTARY INFORMATION: Notice is
hereby given that as a result of the
E:\FR\FM\07MYN1.SGM
07MYN1
Agencies
[Federal Register Volume 78, Number 88 (Tuesday, May 7, 2013)]
[Notices]
[Pages 26677-26679]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-10742]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-69489; File No. SR-NYSEMKT-2013-39]
Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and
Immediate Effectiveness of Proposed Rule Change To Amend the NYSE Amex
Options Fee Schedule To Modify the Existing Floor Broker Rebate for
Executed Qualified Contingent Cross Orders
May 1, 2013.
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 April 19, 2013, NYSE MKT LLC (the ``Exchange'' or ``NYSE
MKT'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I, II,
and III below, which Items have been prepared by the self-regulatory
organization. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend the NYSE Amex Options Fee Schedule
(``Fee Schedule'') to modify the existing Floor Broker rebate for
executed qualified contingent cross (``QCC'') orders. The text of the
proposed rule 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
[[Page 26678]]
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 modify the
existing Floor Broker rebate for executed QCC orders.\4\ The proposed
change will be operative on May 1, 2013.
---------------------------------------------------------------------------
\4\ The QCC permits an NYSE Amex ATP Holder to effect a
qualified contingent trade (``QCT'') in a Regulation NMS stock and
cross the options leg of the trade on the Exchange immediately upon
entry and without order exposure if the order is for at least 1,000
contracts, is part of a QCT, is executed at a price at least equal
to the national best bid or offer, as long as there are no Customer
orders in the Exchange's Consolidated Book at the same price.
---------------------------------------------------------------------------
Specifically, the Exchange proposes to adopt a tiered rebate based
on Floor Broker executed QCC volume in a given month. The existing
rebate is $.07 per contract,\5\ and this rebate will continue to be
paid to Floor Brokers that execute monthly QCC volumes up to and
including 300,000 contracts. The Exchange is proposing to adopt a
higher per contract rebate of $.10 per contract to be paid to Floor
Brokers for any QCC volume in excess of 300,000 contracts in a given
month. The rebate paid per contract will include all eligible volume
within each tier at the applicable rate. The rebate is per contract and
not retroactive to the first contract. Thus, if a Floor Broker has
400,000 contracts in QCC volume, he or she will earn a rebate of $.07
for the first 300,000 contracts and $.10 for the remaining 100,000
contracts. As with the existing rebate, Customer to Customer QCC trades
will not qualify for any rebate as such a transaction nets the Exchange
no revenue.\6\
---------------------------------------------------------------------------
\5\ See Securities Act Release No. 66376 (February 10, 2012), 77
FR 9293 (February 16, 2012) (SR-NYSEAmex-2012-05).
\6\ See Securities Act Release No. 65943 (December 13, 2011), 76
FR 78704 (December 19, 2011) (SR-NYSEAmex-2011-95).
---------------------------------------------------------------------------
The Exchange notes that the proposed rebate falls within the range
of rebates paid for QCC volumes across the industry. Specifically, the
Exchange notes that the International Securities Exchange (``ISE'')
pays a volume-based rebate for QCC and Solicitation volumes that ranges
from $.00 to $.11 per contract.\7\ NASDAQ OMX PHLX (``PHLX'') also pays
a volume-based rebate for QCC volume that ranges from $.00 to $.11 per
contract.\8\
---------------------------------------------------------------------------
\7\ See ISE fee schedule, available at https://www.ise.com/assets/documents/OptionsExchange/legal/fee/fee_schedule.pdf.
\8\ See PHLX fee schedule, available at https://nasdaqomxphlx.cchwallstreet.com/NASDAQOMXPHLXTools/PlatformViewer.asp?selectednode=chp_1_4&manual=%2Fnasdaqomxphlx%2Fphlx%2Fphlx-rulesbrd%2F.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the provisions of Section 6(b) \9\ of the Act, in general, and
Section 6(b)(4) and (5) \10\ of the Act, in particular, in that 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 and does not unfairly discriminate between customers,
issuers, brokers, or dealers.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78f(b).
\10\ 15 U.S.C. 78f(b)(4) and (5).
---------------------------------------------------------------------------
The Exchange believes that the proposed tiered rebates are
reasonable because they are within the range of tiered volume rebates
on other exchanges.\11\ To the extent that the rebate is successful in
attracting additional order flow to the Exchange, all market
participants should benefit. Any participant will be able to engage a
rebate-receiving Floor Broker in a discussion surrounding the
appropriate level of fees that they may be charged for entrusting the
QCC order to the Floor Broker. Moreover, the Exchange believes that the
proposed rebates are equitable and not unfairly discriminatory because
they will apply to all Floor Brokers that execute QCC orders on
Exchange on an equal and non-discriminatory basis.
---------------------------------------------------------------------------
\11\ See supra notes 7-8.
---------------------------------------------------------------------------
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. The Exchange believes that
the proposed change will allow Floor Brokers to better compete for QCC
volumes as the rebates are more in line with those paid to participants
on other exchanges. 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 and/or rebates to be insufficient. 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) \12\ of the Act and subparagraph (f)(2) of Rule
19b-4 \13\ thereunder, because it establishes a due, fee, or other
charge imposed by the Exchange.
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\12\ 15 U.S.C. 78s(b)(3)(A).
\13\ 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) \14\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\14\ 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 (https://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-NYSEMKT-2013-39 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-NYSEMKT-2013-39. This
file number should be included on the subject line if email is used. To
help the
[[Page 26679]]
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 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-NYSEMKT-2013-39 and should
be submitted on or before May 28, 2013.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
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\15\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-10742 Filed 5-6-13; 8:45 am]
BILLING CODE 8011-01-P