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 Increase the Royalty Fees Applicable to Non-Customer Transactions in Options on the Russell 2000 Index, 47465-47467 [2013-18757]
Download as PDF
Federal Register / Vol. 78, No. 150 / Monday, August 5, 2013 / Notices
public interest, to adopt the proposed
amendments to Rule 7240(b)(3)(iii).
Number SR–BOX–2013–38 on the
subject line.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
Paper Comments
The Exchange does not believe the
proposed rule change represents any
undue burden on competition or will
impose any burden on competition
among exchanges in the listed options
marketplace not necessary or
appropriate in furtherance of the
purposes of the Act. The features of the
proposed rule change will apply equally
to all Participants and are available to
all Participants.
Submitting a Complex Order is
entirely voluntary and Participants will
determine which type of order they
wish to submit, if any, to the Exchange.
The Exchange operates in a highly
competitive marketplace with other
competing exchanges and market
participants can readily direct their
Complex Order flow to any these
exchanges if they so choose.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
The Exchange has neither solicited
nor received comments on the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Within 45 days of the date of
publication of this notice in the Federal
Register or within such longer period (i)
as the Commission may designate up to
90 days of such date if it finds such
longer period to be appropriate and
publishes its reasons for so finding or
(ii) as to which the self-regulatory
organization consents, the Commission
will:
(A) By order approve or disapprove
the proposed rule change, or
(B) institute proceedings to determine
whether the proposed rule change
should be disapproved.
mstockstill on DSK4VPTVN1PROD with NOTICES
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:
• 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–BOX–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 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 offices 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–BOX–
2013–38, and should be submitted on or
before August 26, 2013.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.18
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2013–18751 Filed 8–2–13; 8:45 am]
BILLING CODE 8011–01–P
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
VerDate Mar<15>2010
19:07 Aug 02, 2013
Jkt 229001
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–70071; File No. SR–
NYSEMKT–2013–65]
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
Increase the Royalty Fees Applicable
to Non-Customer Transactions in
Options on the Russell 2000 Index
July 30, 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 July 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 the Substance
of the Proposed Rule Change
The Exchange proposes to amend the
NYSE Amex Options Fee Schedule to
increase the Royalty Fees applicable to
non-Customer transactions in options
on the Russell 2000 Index (‘‘RUT’’). 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
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.
1 15
U.S.C. 78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
2 15
18 17
PO 00000
CFR 200.30–3(a)(12).
Frm 00195
Fmt 4703
Sfmt 4703
47465
E:\FR\FM\05AUN1.SGM
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47466
Federal Register / Vol. 78, No. 150 / Monday, August 5, 2013 / Notices
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
mstockstill on DSK4VPTVN1PROD with NOTICES
1. Purpose
The Exchange proposes to amend the
NYSE Amex Options Fee Schedule to
increase the Royalty Fees applicable to
non-Customer transactions in options
on RUT from $0.15 to $0.40 per
contract. Royalty Fees charged by the
Exchange reflect the pass-through
charges associated with the licensing of
certain products, including RUT. The
proposed increase in the Royalty Fee for
RUT from $0.15 to $0.40 per contract is
a reflection of the increased cost the
Exchange has incurred in securing a
license agreement from the index
provider. Absent the license agreement,
the Exchange and its participants would
be unable to trade RUT options and
would lose the ability to hedge small
cap securities with a large notional
value, European-style cash-settled index
option.
The proposed change will be
operative on August 1, 2013.
The proposed change is not otherwise
intended to address any other issues
relating to Royalty Fees and the
Exchange is not aware of any problems
that market participants would have in
complying with the proposed change.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act,4 in general, and
furthers the objectives of Sections
6(b)(4) and 6(b)(5) of the Act,5 in
particular, because it provides for the
equitable allocation of reasonable dues,
fees, and other charges among its
members, issuers, and other persons
using its facilities and does not unfairly
discriminate between customers,
issuers, brokers, or dealers.
The Exchange believes that the
proposed increase in the Royalty Fee
from $0.15 to $0.40 for options on RUT
is reasonable because Royalty Fees
charged by the Exchange reflect the
pass-through charges associated with
the licensing of certain products,
including RUT. The proposed increase
is therefore a direct result of an increase
in the licensing fee charged to the
Exchange by the index provider and the
owner of the intellectual property
associated with the index.
The Exchange believes that the
proposed increase in the Royalty Fee
from $0.15 to $0.40 for options on RUT
is equitable and not unfairly
4 15
5 15
U.S.C. 78f(b).
U.S.C. 78f(b)(4) and (5).
VerDate Mar<15>2010
19:07 Aug 02, 2013
Jkt 229001
discriminatory because Royalty Fees are
assessed only on those non-Customer
participants who choose to transact in a
product that requires the Exchange to
obtain a licensing agreement based on
the intellectual property rights
associated with the product, as is the
case with RUT. The Exchange further
believes that this is equitable and not
unfairly discriminatory because RUT
has some products that can give
participants a similar economic
exposure without an associated Royalty
Fee. In particular, there are exchangetraded fund (‘‘ETF’’) options that are
based on RUT, such as the iShares
Russell 2000 ETF traded under the
symbol IWM. This means that
participants that would be liable for the
Royalty Fees can avoid them by
transacting in alternative products, if
they so choose.
The Exchange assesses the Royalty
Fees on non-Customer participants such
as NYSE Amex Market Makers, nonNYSE Amex Market Makers, ATP Firms,
Professional Customers, and Broker
Dealers.6 The Exchange believes that it
is equitable and not unfairly
discriminatory to continue to not charge
Royalty Fees to Customers, which has
been the case since the Exchange
implemented Royalty Fees, because the
Exchange is attempting to continue to
attract Customer order flow in RUT
options, which in turn can interact with
other participants’ order flow on the
Exchange to their benefit.7
For the reasons given above, the
Exchange believes that the proposed
increase from $0.15 to $0.40 for the
Royalty Fee charged to non-Customer
transactions in RUT options is
reasonable, equitable, and not unfairly
discriminatory. Finally, the Exchange
believes that it is subject to significant
competitive forces, as described below
in the Exchange’s statement regarding
the burden on competition.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
In accordance with Section 6(b)(8) of
the Act,8 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.
By providing all participants on the
Exchange with the ability to hedge via
RUT options, the Exchange is not
placing any burden on competition
among its various participants. The
6 See
endnote 11 of the Fee Schedule.
Securities Exchange Act Release No. 53968
(June 9, 2006), 71 FR 34971 (June 16, 2006) (SR–
Amex–2006–56).
8 15 U.S.C. 78f(b)(8).
7 See
PO 00000
Frm 00196
Fmt 4703
Sfmt 4703
Exchange further notes that the
licensing agreement it has secured is not
an exclusive agreement as at least two
other option exchanges continue to
trade RUT options and charge a fee
related to such license.9 As such, there
is no burden on competition among
exchanges for the trading of RUT
options.
Finally, the Exchange notes that it
operates in a highly competitive market
in which market participants can
readily favor competing venues if they
deem fee levels at a particular venue to
be excessive. 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) 10 of the Act and
subparagraph (f)(2) of Rule 19b–4 11
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) 12 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
9 See Chicago Board Options Exchange (‘‘CBOE’’)
Fee Schedule, available at https://www.cboe.com/
TradingResources/FeeSchedule.aspx. The
Exchange’s affiliate NYSE Arca, Inc. also has
proposed to increase its Royalty Fee for RUT
options from $0.15 to $0.40 per contract. See
SR–NYSEArca–2013–76.
10 15 U.S.C. 78s(b)(3)(A).
11 17 CFR 240.19b–4(f)(2).
12 15 U.S.C. 78s(b)(2)(B).
E:\FR\FM\05AUN1.SGM
05AUN1
Federal Register / Vol. 78, No. 150 / Monday, August 5, 2013 / Notices
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:
[FR Doc. 2013–18757 Filed 8–2–13; 8:45 am]
Electronic Comments
BILLING CODE 8011–01–P
• 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–2013–65 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.
mstockstill on DSK4VPTVN1PROD with NOTICES
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Kevin M. O’Neill,
Deputy Secretary.
All submissions should refer to File
Number SR–NYSEMKT–2013–65. 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 at 100 F Street NE.,
Washington, DC 20549–1090 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
available publicly. All submissions
should refer to File Number SR–
NYSEMKT–2013–65, and should be
submitted on or before August 26, 2013.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–70067; File No. SR–
NYSEARCA–2013–74]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Modifying the Content of
the NYSE Arca Trades Digital Media
Data Feed
July 30, 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 July 18,
2013, NYSE Arca, Inc. (the ‘‘Exchange’’
or ‘‘NYSE Arca’’) filed with the
Securities and Exchange Commission
(the ‘‘Commission’’) the proposed rule
change as described in Items I and II
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 revise the
description of the NYSE Arca Trades
Digital Media data feed. 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
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.
1 15
U.S.C. 78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
2 15
13 17
CFR 200.30–3(a)(12).
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19:07 Aug 02, 2013
Jkt 229001
PO 00000
Frm 00197
Fmt 4703
Sfmt 4703
47467
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, Proposed Rule
Change
1. Purpose
The Exchange proposes to revise the
description of the NYSE Arca Trades
Digital Media data feed.
In 2009, the Securities and Exchange
Commission (‘‘Commission’’) approved
the NYSE Arca Trades data feed and
certain fees for it.4 NYSE Arca Trades is
a NYSE Arca-only market data feed that
allows a vendor to redistribute on a realtime basis the same last sale information
that the Exchange reports under the
Consolidated Tape Association (‘‘CTA’’)
Plan for inclusion in the CTA Plan’s
consolidated data streams and certain
other related data elements.
Specifically, NYSE Arca Trades
includes the real-time last sale price,
time, size, and bid/ask quotations for
each security traded on the Exchange
and a stock summary message. The
stock summary message updates every
minute and includes NYSE Arca’s
opening price, high price, low price,
closing price, and cumulative volume
for the security.
In April 2013, the Exchange began
offering a new version of NYSE Arca
Trades called ‘‘NYSE Arca Trades
Digital Media,’’ which was described as
including the real-time last sale price,
time, size, and stock summary message
for each security traded on the
Exchange, but not including access to
the bid/ask quotation included with the
NYSE Arca Trades product.5 At that
time, the Exchange believed that it
could efficiently remove the bid/ask
information from the feed but has since
determined that the time and resources
required to do so would be significant
and not commensurate with the need for
the change. As such, the NYSE Arca
Trades Digital Media product is offered
with the bid/ask component included,
and as such does not have different
content than the regular NYSE Arca
Trades data fee. The only difference
between the products is the permitted
distribution channels. NYSE Arca
Trades Digital Media permits market
data vendors, television broadcasters,
Web site and mobile device service
providers, and others to distribute the
data product to their customers for
viewing via television, Web site, and
mobile devices. They are not be [sic]
permitted to provide NYSE Arca Trades
4 See Securities Exchange Act Release No. 59598
(Mar. 18, 2009), 74 FR 12919 (Mar. 25, 2009) (SR–
NYSEArca–2009–05).
5 See Securities Exchange Act Release No. 69274
(Apr. 2, 2013), 78 FR 20986 (Apr. 8, 2013) (SR–
NYSEArca–2013–30).
E:\FR\FM\05AUN1.SGM
05AUN1
Agencies
[Federal Register Volume 78, Number 150 (Monday, August 5, 2013)]
[Notices]
[Pages 47465-47467]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-18757]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-70071; File No. SR-NYSEMKT-2013-65]
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 Increase the Royalty Fees Applicable to Non-
Customer Transactions in Options on the Russell 2000 Index
July 30, 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 July 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 the
Substance of the Proposed Rule Change
The Exchange proposes to amend the NYSE Amex Options Fee Schedule
to increase the Royalty Fees applicable to non-Customer transactions in
options on the Russell 2000 Index (``RUT''). 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 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.
[[Page 47466]]
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 NYSE Amex Options Fee Schedule
to increase the Royalty Fees applicable to non-Customer transactions in
options on RUT from $0.15 to $0.40 per contract. Royalty Fees charged
by the Exchange reflect the pass-through charges associated with the
licensing of certain products, including RUT. The proposed increase in
the Royalty Fee for RUT from $0.15 to $0.40 per contract is a
reflection of the increased cost the Exchange has incurred in securing
a license agreement from the index provider. Absent the license
agreement, the Exchange and its participants would be unable to trade
RUT options and would lose the ability to hedge small cap securities
with a large notional value, European-style cash-settled index option.
The proposed change will be operative on August 1, 2013.
The proposed change is not otherwise intended to address any other
issues relating to Royalty Fees and the Exchange is not aware of any
problems that market participants would have in complying with the
proposed change.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\4\ in general, and furthers the
objectives of Sections 6(b)(4) and 6(b)(5) of the Act,\5\ 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.
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78f(b).
\5\ 15 U.S.C. 78f(b)(4) and (5).
---------------------------------------------------------------------------
The Exchange believes that the proposed increase in the Royalty Fee
from $0.15 to $0.40 for options on RUT is reasonable because Royalty
Fees charged by the Exchange reflect the pass-through charges
associated with the licensing of certain products, including RUT. The
proposed increase is therefore a direct result of an increase in the
licensing fee charged to the Exchange by the index provider and the
owner of the intellectual property associated with the index.
The Exchange believes that the proposed increase in the Royalty Fee
from $0.15 to $0.40 for options on RUT is equitable and not unfairly
discriminatory because Royalty Fees are assessed only on those non-
Customer participants who choose to transact in a product that requires
the Exchange to obtain a licensing agreement based on the intellectual
property rights associated with the product, as is the case with RUT.
The Exchange further believes that this is equitable and not unfairly
discriminatory because RUT has some products that can give participants
a similar economic exposure without an associated Royalty Fee. In
particular, there are exchange-traded fund (``ETF'') options that are
based on RUT, such as the iShares Russell 2000 ETF traded under the
symbol IWM. This means that participants that would be liable for the
Royalty Fees can avoid them by transacting in alternative products, if
they so choose.
The Exchange assesses the Royalty Fees on non-Customer participants
such as NYSE Amex Market Makers, non-NYSE Amex Market Makers, ATP
Firms, Professional Customers, and Broker Dealers.\6\ The Exchange
believes that it is equitable and not unfairly discriminatory to
continue to not charge Royalty Fees to Customers, which has been the
case since the Exchange implemented Royalty Fees, because the Exchange
is attempting to continue to attract Customer order flow in RUT
options, which in turn can interact with other participants' order flow
on the Exchange to their benefit.\7\
---------------------------------------------------------------------------
\6\ See endnote 11 of the Fee Schedule.
\7\ See Securities Exchange Act Release No. 53968 (June 9,
2006), 71 FR 34971 (June 16, 2006) (SR-Amex-2006-56).
---------------------------------------------------------------------------
For the reasons given above, the Exchange believes that the
proposed increase from $0.15 to $0.40 for the Royalty Fee charged to
non-Customer transactions in RUT options is reasonable, equitable, and
not unfairly discriminatory. Finally, the Exchange believes that it is
subject to significant competitive forces, as described below in the
Exchange's statement regarding the burden on competition.
B. Self-Regulatory Organization's Statement on Burden on Competition
In accordance with Section 6(b)(8) of the Act,\8\ 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. By providing all participants on the Exchange with
the ability to hedge via RUT options, the Exchange is not placing any
burden on competition among its various participants. The Exchange
further notes that the licensing agreement it has secured is not an
exclusive agreement as at least two other option exchanges continue to
trade RUT options and charge a fee related to such license.\9\ As such,
there is no burden on competition among exchanges for the trading of
RUT options.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78f(b)(8).
\9\ See Chicago Board Options Exchange (``CBOE'') Fee Schedule,
available at https://www.cboe.com/TradingResources/FeeSchedule.aspx.
The Exchange's affiliate NYSE Arca, Inc. also has proposed to
increase its Royalty Fee for RUT options from $0.15 to $0.40 per
contract. See SR-NYSEArca-2013-76.
---------------------------------------------------------------------------
Finally, the Exchange notes that it operates in a highly
competitive market in which market participants can readily favor
competing venues if they deem fee levels at a particular venue to be
excessive. 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) \10\ of the Act and subparagraph (f)(2) of Rule
19b-4 \11\ thereunder, because it establishes a due, fee, or other
charge imposed by the Exchange.
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\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 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) \12\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\12\ 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
[[Page 47467]]
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-2013-65 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-2013-65. 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 at 100 F Street NE.,
Washington, DC 20549-1090 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
available publicly. All submissions should refer to File Number SR-
NYSEMKT-2013-65, and should be submitted on or before August 26, 2013.
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\13\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-18757 Filed 8-2-13; 8:45 am]
BILLING CODE 8011-01-P