Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending the NYSE Arca Options Fee Schedule To Raise the Take Liquidity Fee for Lead Market Maker and Market Maker Electronic Executions in Penny Pilot Issues, 75655-75657 [2013-29615]
Download as PDF
Federal Register / Vol. 78, No. 239 / Thursday, December 12, 2013 / Notices
B. Self-Regulatory Organization’s
Statement on Burden on Competition
CBOE 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
proposed rule change is not designed to
address any competitive issues. Rather,
the proposed rule change is designed to
help the Exchange to adequately fund
its regulatory activities while seeking to
ensure that total regulatory revenues do
not exceed total regulatory costs.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
The Exchange neither solicited nor
received comments on the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act 8 and paragraph (f) of Rule
19b–4 9 thereunder. At any time within
60 days of the filing of the 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 will institute proceedings
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:
Securities and Exchange Commission,
100 F Street NE., Washington, DC
20549–1090.
SECURITIES AND EXCHANGE
COMMISSION
All submissions should refer to File
Number SR–CBOE–2013–117. 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–CBOE–
2013–117 and should be submitted on
or before January 2, 2014.
[Release No. 34–71016; File No. SR–
NYSEArca–2013–136]
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2013–29606 Filed 12–11–13; 8:45 am]
BILLING CODE 8011–01–P
maindgalligan on DSK5TPTVN1PROD with NOTICES
• 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–
CBOE–2013–117 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
VerDate Mar<15>2010
16:45 Dec 11, 2013
Jkt 232001
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Amending the NYSE Arca
Options Fee Schedule To Raise the
Take Liquidity Fee for Lead Market
Maker and Market Maker Electronic
Executions in Penny Pilot Issues
December 6, 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
November 26, 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, 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 the Substance
of the Proposed Rule Change
The Exchange proposes to amend the
NYSE Arca Options Fee Schedule (‘‘Fee
Schedule’’) to raise the Take Liquidity
fee for Lead Market Maker (‘‘LMM’’) and
Market Maker electronic executions in
Penny Pilot Issues. The Exchange
proposes to implement the fee change
effective December 1, 2013. 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.
Electronic Comments
Permit Holder proprietary transactions if the
Exchange deems it advisable.
8 15 U.S.C. 78s(b)(3)(A).
9 17 CFR 240.19b–4(f).
75655
1 15
U.S.C. 78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
2 15
10 17
PO 00000
CFR 200.30–3(a)(12).
Frm 00113
Fmt 4703
Sfmt 4703
E:\FR\FM\12DEN1.SGM
12DEN1
75656
Federal Register / Vol. 78, No. 239 / Thursday, December 12, 2013 / Notices
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 raise the Take Liquidity
fee for LMM and Market Maker
electronic executions in Penny Pilot
Issues.4 The Exchange proposes to
implement the fee change effective
December 1, 2013.5 Currently, the
Exchange charges a Take Liquidity fee
of $0.47 per contract for LMM and
Market Maker electronic executions in
Penny Pilot Issues. The Exchange
proposes to raise the Take Liquidity fee
to $0.48 per contract for LMM and
Market Maker electronic executions in
Penny Pilot Issues in order to keep the
fee in the same range as other
exchanges 6 and generate revenue that
will help support credits offered to
market participants that post liquidity.
The Exchange does not propose to make
any other changes to the fees for
electronic executions in Penny Pilot
Issues. Take Liquidity fees will remain
at $0.48 for Firms and Broker Dealers
and $0.45 for Customers.
maindgalligan on DSK5TPTVN1PROD with NOTICES
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act,7 in general, and
furthers the objectives of Sections
4 As provided under NYSE Arca Options Rule
6.72, options on certain issues have been approved
to trade with a minimum price variation of $0.01
as part of a pilot program that is currently
scheduled to expire on December 31, 2013. See
Securities Exchange Act Release No. 69790, (June
18, 2013) 78 FR 37853 (June 24, 2013) (SR–
NYSEArca–2013–59).
5 The Exchange notes that it has previously filed
with the Securities and Exchange Commission a
proposed rule change to amend the Fee Schedule
relating to co-location fees (File No. SR–NYSEArca–
2013–131). Exhibit 5 to SR–NYSEArca–2013–131
specified an effective date for the revised Fee
Schedule of December 3, 2013 (changed from
November 8, 2013). Exhibit 5 to the instant
proposed rule change specifies an effective date of
December 1, 2013 (changed from November 8,
2013). On December 1, 2013, the Exchange will
update the Fee Schedule to reflect the fee change
reflected in the instant proposed rule change, with
an effective date of December 1, 2013. On December
3, 2013, the Exchange, subject to effectiveness of
SR–NYSEArca–2013–131, will further update the
Fee Schedule to reflect the changes set forth in SR–
NYSEArca–2013–131, with an effective date of
December 3, 2013.
6 For example, NASDAQ Options Market
(‘‘NOM’’) charges Firms, Professionals, and NonNOM Market Makers, NOM Market Makers, and
Broker-Dealers $0.48 per contract for removing
liquidity in Penny Pilot Options while Customers
are charged $0.45 per contract. See NASDAQ
Options Rules Chapter XV, Section 2, and
Securities Exchange Act Release No. 70820,
(November 6, 2013) 78 FR 68122 (November 13,
2013) (SR–NASDAQ–2013–136).
7 15 U.S.C. 78f(b).
VerDate Mar<15>2010
16:45 Dec 11, 2013
Jkt 232001
6(b)(4) and (5) of the Act,8 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 raising the
Take Liquidity fee from $0.47 per
contract to $0.48 per contract for LMM
and Market Maker electronic executions
in Penny Pilot Issues will result in the
Exchange’s fees for taking liquidity in
Penny Pilot issues remaining
comparable to fees charged by at least
one other exchange.9 In addition, the
proposed fee change is reasonable
because it will generate revenue that
will help to support the credits offered
for posting liquidity, which are
available to all market participants.
The Exchange believes that the
proposed fee increase is equitable and
not unfairly discriminatory because the
Exchange would uniformly assess all
market participants, except Customers,
the same Take Liquidity fee of $0.48 per
contract. Customer order flow benefits
the market by increasing liquidity,
which benefits all market participants;
thus Customers are assessed lower fees.
Also, LMMs and Market Makers have
the ability to earn a higher Post
Liquidity credit of $0.28 per contract for
electronic executions in Penny Pilot
Issues compared to the $0.10 per
contract Post Liquidity Credit that is
available to Firms and Broker Dealers.
This is equitable and not unfairly
discriminatory because LMMs and
Market Makers have obligations to quote
and commit capital, both of which
contribute to market quality and price
discovery on the Exchange. Firms and
Broker Dealers do not have such
obligations.
Finally, the Exchange believes that it
is subject to significant competitive
forces, as described below in the
Exchange’s statement regarding the
burden on competition. For 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,10 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 proposed fee will allow the
Exchange to remain competitive with
other exchanges by keeping its fees in a
similar range.11 The Exchange believes
that the proposed fee change reduces
the burden on competition because it
takes into account the value that various
market participants add to the
marketplace, as discussed above. 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 promotes a 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:
11 See
8 15
U.S.C. 78f(b)(4) and (5).
9 See supra note 6.
10 15 U.S.C. 78f(b)(8).
PO 00000
Frm 00114
Fmt 4703
Sfmt 4703
supra note 6.
U.S.C. 78s(b)(3)(A).
13 17 CFR 240.19b–4(f)(2).
14 15 U.S.C. 78s(b)(2)(B).
12 15
E:\FR\FM\12DEN1.SGM
12DEN1
Federal Register / Vol. 78, No. 239 / Thursday, December 12, 2013 / Notices
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–2013–136 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.
maindgalligan on DSK5TPTVN1PROD with NOTICES
All submissions should refer to File
Number SR–NYSEArca–2013–136. 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
available publicly. All submissions
should refer to File Number SR–
NYSEArca–2013–136, and should be
submitted on or before January 2, 2014.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.15
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2013–29615 Filed 12–11–13; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–71008; File No. SR–
NASDAQ–2013–146]
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change Relating to
Routing Fees
December 6, 2013.
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
27, 2013, The NASDAQ Stock Market
LLC (‘‘NASDAQ’’ or ‘‘Exchange’’) filed
with the Securities and Exchange
Commission (‘‘SEC’’ or ‘‘Commission’’)
the proposed rule change as described
in Items I, II, and III below, which Items
have been prepared by NASDAQ. 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
NASDAQ proposes to modify Chapter
XV, Section 2, entitled ‘‘NASDAQ
Options Market—Fees and Rebates,’’
which governs pricing for NASDAQ
members using the NASDAQ Options
Market (‘‘NOM’’), NASDAQ’s facility for
executing and routing standardized
equity and index options, to amend
Routing Fees.
While these amendments are effective
upon filing, the Exchange has
designated the proposed amendments to
be operative on December 2, 2013.
The text of the proposed rule change
is available on the Exchange’s Web site
at https://
www.nasdaq.cchwallstreet.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
Exchange included statements
concerning the purpose of and basis for
the proposed rule change. The text of
these 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 aspects of such
statements.
1 15
15 17
CFR 200.30–3(a)(12).
VerDate Mar<15>2010
16:45 Dec 11, 2013
2 17
Jkt 232001
PO 00000
U.S.C. 78s(b)(1).
CFR 240.19b–4.
Frm 00115
Fmt 4703
Sfmt 4703
75657
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of this filing is to amend
the Routing Fees in Section 2(3) of
Chapter XV in order to recoup costs the
Exchange incurs for routing and
executing certain orders in equity
options to away markets. Today, the
Exchange assesses a Non-Customer a
$0.95 per contract Routing Fee to any
options exchange. The Customer
Routing Fee for option orders routed to
NASDAQ OMX PHLX LLC (‘‘PHLX’’) is
a $0.05 per contract Fixed Fee in
addition to the actual transaction fee
assessed. The Customer Routing Fee for
option orders routed to NASDAQ OMX
BX, Inc. (‘‘BX Options’’) is $0.00 per
contract. The Customer Routing Fee for
option orders routed to all other options
exchanges 3 (excluding PHLX and BX
Options) is a fixed fee of $0.15 per
contract (‘‘Fixed Fee’’) in addition to the
actual transaction fee assessed. If the
away market pays a rebate, the Routing
Fee is $0.00 per contract.4
The Exchange proposes to increase
the Customer Routing Fixed Fee of
$0.15 per contract when an option order
is routed to all other exchanges to $0.20
per contract. With respect to the fixed
costs, the Exchange incurs a fee when it
utilizes Nasdaq Options Services LLC
(‘‘NOS’’), a member of the Exchange and
the Exchange’s exclusive order router.5
Each time NOS routes an order to an
away market, NOS is charged a clearing
fee 6 and, in the case of certain
exchanges, a transaction fee is also
charged in certain symbols, which fees
are passed through to the Exchange. The
Exchange currently recoups clearing
and transaction charges incurred by the
Exchange as well as certain other costs
incurred by the Exchange when routing
to away markets, such as administrative
and technical costs associated with
operating NOS, membership fees at
3 Including BATS Exchange, Inc. (‘‘BATS’’), BOX
Options Exchange LLC (‘‘BOX’’), the Chicago Board
Options Exchange, Incorporated (‘‘CBOE’’), C2
Options Exchange, Incorporated (‘‘C2’’),
International Securities Exchange, LLC (‘‘ISE’’), the
Miami International Securities Exchange, LLC
(‘‘MIAX’’), NYSE Arca, Inc. (‘‘NYSE Arca’’), NYSE
MKT LLC (‘‘NYSE Amex’’) and Topaz Exchange,
LLC (‘‘Gemini’’).
4 For all Routing Fees, the transaction fee will
continue to be based on the away market’s actual
transaction fee or rebate for particular market
participants and in the case that there is no
transaction fee or rebate assessed by the away
market, the fixed fee.
5 See NASDAQ Rules at Chapter VI, Section 11(e)
(Order Routing).
6 The Options Clearing Corporation (‘‘OCC’’)
assesses $0.01 per contract side.
E:\FR\FM\12DEN1.SGM
12DEN1
Agencies
[Federal Register Volume 78, Number 239 (Thursday, December 12, 2013)]
[Notices]
[Pages 75655-75657]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-29615]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-71016; File No. SR-NYSEArca-2013-136]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change Amending the NYSE
Arca Options Fee Schedule To Raise the Take Liquidity Fee for Lead
Market Maker and Market Maker Electronic Executions in Penny Pilot
Issues
December 6, 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 November 26, 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, 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 Arca Options Fee Schedule
(``Fee Schedule'') to raise the Take Liquidity fee for Lead Market
Maker (``LMM'') and Market Maker electronic executions in Penny Pilot
Issues. The Exchange proposes to implement the fee change effective
December 1, 2013. 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 75656]]
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 raise the Take
Liquidity fee for LMM and Market Maker electronic executions in Penny
Pilot Issues.\4\ The Exchange proposes to implement the fee change
effective December 1, 2013.\5\ Currently, the Exchange charges a Take
Liquidity fee of $0.47 per contract for LMM and Market Maker electronic
executions in Penny Pilot Issues. The Exchange proposes to raise the
Take Liquidity fee to $0.48 per contract for LMM and Market Maker
electronic executions in Penny Pilot Issues in order to keep the fee in
the same range as other exchanges \6\ and generate revenue that will
help support credits offered to market participants that post
liquidity. The Exchange does not propose to make any other changes to
the fees for electronic executions in Penny Pilot Issues. Take
Liquidity fees will remain at $0.48 for Firms and Broker Dealers and
$0.45 for Customers.
---------------------------------------------------------------------------
\4\ As provided under NYSE Arca Options Rule 6.72, options on
certain issues have been approved to trade with a minimum price
variation of $0.01 as part of a pilot program that is currently
scheduled to expire on December 31, 2013. See Securities Exchange
Act Release No. 69790, (June 18, 2013) 78 FR 37853 (June 24, 2013)
(SR-NYSEArca-2013-59).
\5\ The Exchange notes that it has previously filed with the
Securities and Exchange Commission a proposed rule change to amend
the Fee Schedule relating to co-location fees (File No. SR-NYSEArca-
2013-131). Exhibit 5 to SR-NYSEArca-2013-131 specified an effective
date for the revised Fee Schedule of December 3, 2013 (changed from
November 8, 2013). Exhibit 5 to the instant proposed rule change
specifies an effective date of December 1, 2013 (changed from
November 8, 2013). On December 1, 2013, the Exchange will update the
Fee Schedule to reflect the fee change reflected in the instant
proposed rule change, with an effective date of December 1, 2013. On
December 3, 2013, the Exchange, subject to effectiveness of SR-
NYSEArca-2013-131, will further update the Fee Schedule to reflect
the changes set forth in SR-NYSEArca-2013-131, with an effective
date of December 3, 2013.
\6\ For example, NASDAQ Options Market (``NOM'') charges Firms,
Professionals, and Non-NOM Market Makers, NOM Market Makers, and
Broker-Dealers $0.48 per contract for removing liquidity in Penny
Pilot Options while Customers are charged $0.45 per contract. See
NASDAQ Options Rules Chapter XV, Section 2, and Securities Exchange
Act Release No. 70820, (November 6, 2013) 78 FR 68122 (November 13,
2013) (SR-NASDAQ-2013-136).
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\7\ in general, and furthers the
objectives of Sections 6(b)(4) and (5) of the Act,\8\ 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.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(b)(4) and (5).
---------------------------------------------------------------------------
The Exchange believes that raising the Take Liquidity fee from
$0.47 per contract to $0.48 per contract for LMM and Market Maker
electronic executions in Penny Pilot Issues will result in the
Exchange's fees for taking liquidity in Penny Pilot issues remaining
comparable to fees charged by at least one other exchange.\9\ In
addition, the proposed fee change is reasonable because it will
generate revenue that will help to support the credits offered for
posting liquidity, which are available to all market participants.
---------------------------------------------------------------------------
\9\ See supra note 6.
---------------------------------------------------------------------------
The Exchange believes that the proposed fee increase is equitable
and not unfairly discriminatory because the Exchange would uniformly
assess all market participants, except Customers, the same Take
Liquidity fee of $0.48 per contract. Customer order flow benefits the
market by increasing liquidity, which benefits all market participants;
thus Customers are assessed lower fees. Also, LMMs and Market Makers
have the ability to earn a higher Post Liquidity credit of $0.28 per
contract for electronic executions in Penny Pilot Issues compared to
the $0.10 per contract Post Liquidity Credit that is available to Firms
and Broker Dealers. This is equitable and not unfairly discriminatory
because LMMs and Market Makers have obligations to quote and commit
capital, both of which contribute to market quality and price discovery
on the Exchange. Firms and Broker Dealers do not have such obligations.
Finally, the Exchange believes that it is subject to significant
competitive forces, as described below in the Exchange's statement
regarding the burden on competition. For 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,\10\ 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 proposed fee will allow the Exchange to
remain competitive with other exchanges by keeping its fees in a
similar range.\11\ The Exchange believes that the proposed fee change
reduces the burden on competition because it takes into account the
value that various market participants add to the marketplace, as
discussed above. 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 promotes a competitive
environment.
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\10\ 15 U.S.C. 78f(b)(8).
\11\ See supra note 6.
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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:
[[Page 75657]]
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-2013-136 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-2013-136. 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 available publicly. All
submissions should refer to File Number SR-NYSEArca-2013-136, and
should be submitted on or before January 2, 2014.
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. 2013-29615 Filed 12-11-13; 8:45 am]
BILLING CODE 8011-01-P