Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending Its Price List To Introduce Fees and Credits for A New Order Type Called a Midpoint Passive Liquidity Order, 7267-7269 [2014-02498]

Download as PDF mstockstill on DSK4VPTVN1PROD with NOTICES Federal Register / Vol. 79, No. 25 / Thursday, February 6, 2014 / Notices which imposes a duty of due diligence on its Equity Trading Permit Holders to learn the essential facts relating to every customer prior to trading the Shares; (c) the risks involved in trading the Shares during the Opening and Late Trading Sessions when an updated Portfolio Indicative Value will not be calculated or publicly disseminated; (d) how information regarding the Portfolio Indicative Value is disseminated; (e) the requirement that Equity Trading Permit Holders deliver a prospectus to investors purchasing newly issued Shares prior to or concurrently with the confirmation of a transaction; and (f) trading information. (5) For initial and continued listing, the Funds must be in compliance with Rule 10A–3 under the Act,38 as provided by NYSE Arca Equities Rule 5.3. (6) The Funds may invest up to an aggregate amount of 15% of its net assets in illiquid securities (calculated at the time of investment), including Rule 144A securities deemed illiquid by the Adviser consistent with Commission guidance. (7) The Funds will utilize cleared swaps if available and to the extent practicable and not enter into any swap agreement unless the Adviser believes that the other party to the transaction is creditworthy. The Sub-Adviser will evaluate the creditworthiness of counterparties on an ongoing basis. Any swaps used will be cash collateralized as required. (8) The Funds, and certain Underlying ETPs in which the Funds invest, will invest no more than 10% of a Fund’s net assets in non-investment grade debt securities. In addition, the Funds, and certain Underlying ETPs in which the Funds invest, will invest no more than 10% of their net assets in asset-backed and mortgaged-backed securities. (9) The Funds will effect repurchase transactions only with large, wellcapitalized and well-established financial institutions whose condition will be continually monitored by the Sub-Adviser. In addition, the value of the collateral underlying the repurchase agreement will always be at least equal to the repurchase price, including any accrued interest earned on the repurchase agreement. The Funds do not expect to engage, under normal circumstances, in reverse repurchase agreements with respect to more than 331⁄3% of their respective assets. (10) The Funds will not invest in leveraged (e.g., 2X, –2X, 3X, or –3X) ETFs. 38 See 17 CFR 240.10A–3. VerDate Mar<15>2010 18:18 Feb 05, 2014 Jkt 232001 (11) A minimum of 100,000 Shares of each Fund will be outstanding at the commencement of trading on the Exchange. This approval order is based on all of the Exchange’s representations, including those set forth above and in the Notice, and the Exchange’s description of the Funds. For the foregoing reasons, the Commission finds that the proposed rule change is consistent with Section 6(b)(5) of the Act 39 and the rules and regulations thereunder applicable to a national securities exchange. IV. Conclusion It is therefore ordered, pursuant to Section 19(b)(2) of the Act,40 that the proposed rule change (SR–NYSEArca– 2013–116), be, and it hereby is, approved. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.41 Kevin M. O’Neill, Deputy Secretary. [FR Doc. 2014–02502 Filed 2–5–14; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–71452; File No. SR–NYSE– 2014–05] Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending Its Price List To Introduce Fees and Credits for A New Order Type Called a Midpoint Passive Liquidity Order January 31, 2014. 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 January 22, 2014, New York Stock Exchange LLC (‘‘NYSE’’ or the ‘‘Exchange’’) 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. 39 15 U.S.C. 78f(b)(5). U.S.C. 78s(b)(2). 41 17 CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). 2 15 U.S.C. 78a. 3 17 CFR 240.19b–4. 40 15 PO 00000 Frm 00104 Fmt 4703 Sfmt 4703 7267 I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend its Price List to introduce fees for a new order type called a Midpoint Passive Liquidity (‘‘MPL’’) Order. The proposed fees would be operative on January 27, 2014. 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. 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 its Price List to introduce fees for a new order type called a MPL Order. The proposed fees would be operative on January 27, 2014. The Exchange recently introduced the MPL Order type,4 which is an undisplayed limit order that automatically executes at the mid-point of the protected best bid or offer (‘‘PBBO’’). An MPL Order is not eligible for manual executions, including openings, re-openings, or closing transactions. An MPL Order also is not eligible to trade if it would trade at a price below $1.00 or if the execution price would be out to five decimal places above $1.00. All market participants—customers, Floor brokers, Designated Market Makers (‘‘DMMs’’), and Supplemental Liquidity Providers (‘‘SLPs’’)—may use the MPL order type. The Exchange proposes to charge $0.0025 per share for all MPL Orders that remove liquidity from the Exchange if the security is priced $1.00 or more. The Exchange also proposes to offer a 4 See Rule 13 and Securities Exchange Act Release No. 71330 (January 16, 2014) (SR–NYSE– 2013–71). E:\FR\FM\06FEN1.SGM 06FEN1 7268 Federal Register / Vol. 79, No. 25 / Thursday, February 6, 2014 / Notices credit of $0.0015 per share for all MPL Orders that provide liquidity to the Exchange if the security is priced $1.00 or more.5 The fee and credit will apply to all market participants. MPL Orders that add liquidity will contribute to adding liquidity requirements, including Tier 1 Adding Credit, Tier 2 Adding Credit, SLP credits for $0.0023 and $0.0025 credits, and DMM providing liquidity. However, the Exchange notes that MPL Orders will not be eligible for any tiered or additional credits or reduced fees even if the MPL Orders contribute to a member organization qualifying for an additional credit. For example, if a member organization qualified for the Tier 1 Adding Credit, the member organization will receive the proposed $0.0015 per share credit for MPL Orders, not $0.0018 per share for such order under the tier. Where the MPL Order fee or credit does not differ from the current fee or credit, the Exchange has not proposed a change to the Price List. mstockstill on DSK4VPTVN1PROD with NOTICES 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with Section 6(b) of the Act,6 in general, and furthers the objectives of Sections 6(b)(4) and (5) of the Act,7 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 fee of $0.0025 per share for all MPL Orders that remove liquidity from the Exchange and the proposed credit of $0.0015 per share for all MPL Orders that provide liquidity to the Exchange if the security is priced $1.00 or more are reasonable because the fee and credit would be the same as the fee and credit that would otherwise apply for all other non-Floor broker transactions (i.e., $0.0025 per share fee for taking liquidity from the Exchange and $0.0015 per share credit under the non-Tier Adding Credit). The Exchange notes that the proposed credit and fee are within the same range as at least one other exchange for MPL Orders.8 The 5 The Exchange’s current rates for transactions in securities with a per share price less of than $1.00 would continue to apply. 6 15 U.S.C. 78f(b). 7 15 U.S.C. 78f(b)(4) and (5). 8 For Tape A Securities under its Tier 1, Tier 2, and Basic Rate Tier, the Exchange’s affiliate, NYSE Arca Equities, Inc., currently charges $0.0030 per share for all MPL Orders that remove liquidity and provides a credit of $0.0015 per share for all MPL VerDate Mar<15>2010 18:18 Feb 05, 2014 Jkt 232001 Exchange also believes that the proposed fee and credit are equitable and not unfairly discriminatory because they may provide opportunities for market participants to interact with orders priced at the midpoint of the PBBO, thus providing price improving liquidity to market participants and thereby increase the quality of order execution on the Exchange’s market, which benefits all market participants. The Exchange also believes that providing the same fees and credits for MPL Orders that would otherwise apply is equitable and not unfairly discriminatory. Moreover, all market participants will be eligible for the proposed fee and credit. The Exchange believes that it is reasonable, equitable, and not unfairly discriminatory to limit additional or higher credits for MPL Orders for which market participants may otherwise qualify because it will ensure that all market participants pay the same fees and receive the same credits regardless of Floor broker, DMM, or SLP designation. The Exchange believes that it is reasonable to allow MPL Orders to count toward adding liquidity because it is consistent with the purpose of those credits. The Exchange also believes it is equitable and not unfairly discriminatory because all market participants that use the MPL Order type will pay the same fee and receive the same credit. B. Self-Regulatory Organization’s Statement on Burden on Competition In accordance with Section 6(b)(8) of the Act,9 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 the proposed MPL Order fees and credits will enhance order execution opportunities for member organizations. Further, the Exchange believes that providing the same fees and credits for MPL Orders that would otherwise apply will enhance competition between the Exchange and other exchanges that currently offer similar order types by offering investors another option to access liquidity at the midpoint of the PBBO. 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 or credit levels at a particular Orders that provide liquidity. See NYSE Arca Equities, Inc. Schedule of Fees and Charges, available at https://usequities.nyx.com/sites/ usequities.nyx.com/files/ nyse_arca_marketplace_fees__for_1–2-14.pdf. 9 15 U.S.C. 78f(b)(8). PO 00000 Frm 00105 Fmt 4703 Sfmt 4703 venue to be unattractive. In such an environment, the Exchange must continually review, and consider adjusting, its fees and credits to remain competitive with other exchanges. For these reasons, the Exchange believes that the proposed rule change reflects this competitive environment and is therefore consistent with the Act. C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others No written comments were solicited or received with respect to the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing rule change is effective upon filing pursuant to Section 19(b)(3)(A) 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 arguments concerning the foregoing, including whether the proposal 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–NYSE–2014–05 on the subject line. Paper Comments • Send paper comments in triplicate to Elizabeth M. Murphy, Secretary, 10 15 U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(2). 12 15 U.S.C. 78s(b)(2)(B). 11 17 E:\FR\FM\06FEN1.SGM 06FEN1 Federal Register / Vol. 79, No. 25 / Thursday, February 6, 2014 / Notices Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549–1090. All submissions should refer to File Number SR–NYSE–2014–05. 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 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–NYSE– 2014–05 and should be submitted on or before February 27, 2014. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.13 Kevin M. O’Neill, Deputy Secretary. [FR Doc. 2014–02498 Filed 2–5–14; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION mstockstill on DSK4VPTVN1PROD with NOTICES [Release No. 34–71455; File No. SR–NSCC– 2013–13] Self-Regulatory Organizations; National Securities Clearing Corporation; Order Approving Proposed Rule Change To Discontinue Its Stock Borrow Program January 31, 2014. I. Introduction On December 10, 2013, the National Securities Clearing Corporation 13 17 CFR 200.30–3(a)(12). VerDate Mar<15>2010 18:18 Feb 05, 2014 Jkt 232001 (‘‘NSCC’’) filed with the Securities and Exchange Commission (‘‘Commission’’) the proposed rule change SR–NSCC– 2013–13 pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’) 1 and Rule 19b–4 thereunder.2 The proposed rule change was published for comment in the Federal Register on December 27, 2013.3 The Commission did not receive comments on the proposed rule change. This order approves the proposed rule change. II. Description of the Proposal NSCC is amending its Rules and Procedures (‘‘Rules’’) to discontinue its Stock Borrow Program. The effective date of the rule change will be announced by NSCC via an Important Notice. Currently, NSCC Members may elect to participate in the Stock Borrow Program by designating specific securities from their inventory at the Depository Trust Company (‘‘DTC’’) as available to be lent in the event that NSCC’s Continuous Net Settlement (‘‘CNS’’) system cannot complete a delivery of a security to a long Member because a short Member has not completed its delivery to CNS. In such a case, if a lender has identified such a security as available through the Stock Borrow Program and the lender has a free excess position of the security at DTC, NSCC initiates deliveries through CNS to the long Member and sets up a pending receive for the lending Member. If the position is not returned to the lender by the end of the settlement day, i.e., the Member with the original obligation to deliver to CNS does not complete that delivery, the lender receives full market value for the securities through NSCC settlement. Usage of NSCC’s Stock Borrow Program has declined over the past few years. In 2007, NSCC borrowed a daily average of approximately $1.85 billion in market value at the close of each day from the approximately 21 Members that participated in the Stock Borrow Program. In October 2013, only three Members participated in the Stock Borrow Program and the average daily value borrowed at the close of day during that month was approximately $81 million. Usage of the program has continued to drop since the end of October 2013. Given the reduction in the use of the program, NSCC has determined that it is not economically efficient to maintain the service. 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 Securities Exchange Act Release No. 34–71156 (Dec. 20, 2013), 78 FR 79028 (Dec. 27, 2013) (SR– NSCC–2013–13). 2 17 PO 00000 Frm 00106 Fmt 4703 Sfmt 9990 7269 III. Discussion and Commission Finding Section 19(b)(2)(C) of the Act 4 directs the Commission to approve a proposed rule change of a self-regulatory organization if it finds that such proposed rule change is consistent with the requirements of the Act and rules and regulations thereunder applicable to such organization. Section 17A(b)(3)(F) of the Act 5 requires that the rules of a clearing agency be designed to, among other things, ‘‘promote the prompt and accurate clearance and settlement of securities transactions and . . . to assure the safeguarding of securities and funds which are in the custody or control of the clearing agency or for which it is responsible.’’ 6 The Commission finds that NSCC’s proposed rule change is consistent with these requirements because discontinuing an underutilized service will enable NSCC to allocate its resources to core clearing agency functions in a more efficient and effective manner. IV. Conclusion On the basis of the foregoing, the Commission finds that the proposal is consistent with the requirements of the Act and in particular with the requirements of Section 17A of the Act 7 and the rules and regulations thereunder. It is therefore ordered, pursuant to Section 19(b)(2) of the Act, that the proposed rule change SR–NSCC–2013– 13 be, and it hereby is, approved. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.8 Kevin M. O’Neill, Deputy Secretary. [FR Doc. 2014–02501 Filed 2–5–14; 8:45 am] BILLING CODE 8011–01–P 4 15 U.S.C. 78s(b)(2)(C). U.S.C. 78q–1(b)(3)(F). 6 15 U.S.C. 78q–1(b)(3)(F). 7 In approving this proposed rule change, the Commission has considered the proposed rule’s impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). 8 17 CFR 200.30–3(a)(12). 5 12 E:\FR\FM\06FEN1.SGM 06FEN1

Agencies

[Federal Register Volume 79, Number 25 (Thursday, February 6, 2014)]
[Notices]
[Pages 7267-7269]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-02498]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-71452; File No. SR-NYSE-2014-05]


Self-Regulatory Organizations; New York Stock Exchange LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
Amending Its Price List To Introduce Fees and Credits for A New Order 
Type Called a Midpoint Passive Liquidity Order

January 31, 2014.
    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 January 22, 2014, New York Stock Exchange LLC (``NYSE'' 
or the ``Exchange'') 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.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend its Price List to introduce fees for 
a new order type called a Midpoint Passive Liquidity (``MPL'') Order. 
The proposed fees would be operative on January 27, 2014. 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.

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 its Price List to introduce fees for 
a new order type called a MPL Order. The proposed fees would be 
operative on January 27, 2014.
    The Exchange recently introduced the MPL Order type,\4\ which is an 
undisplayed limit order that automatically executes at the mid-point of 
the protected best bid or offer (``PBBO''). An MPL Order is not 
eligible for manual executions, including openings, re-openings, or 
closing transactions. An MPL Order also is not eligible to trade if it 
would trade at a price below $1.00 or if the execution price would be 
out to five decimal places above $1.00. All market participants--
customers, Floor brokers, Designated Market Makers (``DMMs''), and 
Supplemental Liquidity Providers (``SLPs'')--may use the MPL order 
type.
---------------------------------------------------------------------------

    \4\ See Rule 13 and Securities Exchange Act Release No. 71330 
(January 16, 2014) (SR-NYSE-2013-71).
---------------------------------------------------------------------------

    The Exchange proposes to charge $0.0025 per share for all MPL 
Orders that remove liquidity from the Exchange if the security is 
priced $1.00 or more. The Exchange also proposes to offer a

[[Page 7268]]

credit of $0.0015 per share for all MPL Orders that provide liquidity 
to the Exchange if the security is priced $1.00 or more.\5\ The fee and 
credit will apply to all market participants. MPL Orders that add 
liquidity will contribute to adding liquidity requirements, including 
Tier 1 Adding Credit, Tier 2 Adding Credit, SLP credits for $0.0023 and 
$0.0025 credits, and DMM providing liquidity. However, the Exchange 
notes that MPL Orders will not be eligible for any tiered or additional 
credits or reduced fees even if the MPL Orders contribute to a member 
organization qualifying for an additional credit. For example, if a 
member organization qualified for the Tier 1 Adding Credit, the member 
organization will receive the proposed $0.0015 per share credit for MPL 
Orders, not $0.0018 per share for such order under the tier. Where the 
MPL Order fee or credit does not differ from the current fee or credit, 
the Exchange has not proposed a change to the Price List.
---------------------------------------------------------------------------

    \5\ The Exchange's current rates for transactions in securities 
with a per share price less of than $1.00 would continue to apply.
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act,\6\ in general, and furthers the 
objectives of Sections 6(b)(4) and (5) of the Act,\7\ 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.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f(b)(4) and (5).
---------------------------------------------------------------------------

    The Exchange believes that the proposed fee of $0.0025 per share 
for all MPL Orders that remove liquidity from the Exchange and the 
proposed credit of $0.0015 per share for all MPL Orders that provide 
liquidity to the Exchange if the security is priced $1.00 or more are 
reasonable because the fee and credit would be the same as the fee and 
credit that would otherwise apply for all other non-Floor broker 
transactions (i.e., $0.0025 per share fee for taking liquidity from the 
Exchange and $0.0015 per share credit under the non-Tier Adding 
Credit). The Exchange notes that the proposed credit and fee are within 
the same range as at least one other exchange for MPL Orders.\8\ The 
Exchange also believes that the proposed fee and credit are equitable 
and not unfairly discriminatory because they may provide opportunities 
for market participants to interact with orders priced at the midpoint 
of the PBBO, thus providing price improving liquidity to market 
participants and thereby increase the quality of order execution on the 
Exchange's market, which benefits all market participants. The Exchange 
also believes that providing the same fees and credits for MPL Orders 
that would otherwise apply is equitable and not unfairly 
discriminatory. Moreover, all market participants will be eligible for 
the proposed fee and credit. The Exchange believes that it is 
reasonable, equitable, and not unfairly discriminatory to limit 
additional or higher credits for MPL Orders for which market 
participants may otherwise qualify because it will ensure that all 
market participants pay the same fees and receive the same credits 
regardless of Floor broker, DMM, or SLP designation. The Exchange 
believes that it is reasonable to allow MPL Orders to count toward 
adding liquidity because it is consistent with the purpose of those 
credits. The Exchange also believes it is equitable and not unfairly 
discriminatory because all market participants that use the MPL Order 
type will pay the same fee and receive the same credit.
---------------------------------------------------------------------------

    \8\ For Tape A Securities under its Tier 1, Tier 2, and Basic 
Rate Tier, the Exchange's affiliate, NYSE Arca Equities, Inc., 
currently charges $0.0030 per share for all MPL Orders that remove 
liquidity and provides a credit of $0.0015 per share for all MPL 
Orders that provide liquidity. See NYSE Arca Equities, Inc. Schedule 
of Fees and Charges, available at https://usequities.nyx.com/sites/usequities.nyx.com/files/nyse_arca_marketplace_fees__for_1-2-14.pdf.
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

    In accordance with Section 6(b)(8) of the Act,\9\ 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 the proposed MPL Order fees 
and credits will enhance order execution opportunities for member 
organizations. Further, the Exchange believes that providing the same 
fees and credits for MPL Orders that would otherwise apply will enhance 
competition between the Exchange and other exchanges that currently 
offer similar order types by offering investors another option to 
access liquidity at the midpoint of the PBBO.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78f(b)(8).
---------------------------------------------------------------------------

    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 or credit levels at a particular 
venue to be unattractive. In such an environment, the Exchange must 
continually review, and consider adjusting, its fees and credits to 
remain competitive with other exchanges. For these reasons, the 
Exchange believes that the proposed rule change reflects this 
competitive environment and is therefore consistent with the Act.

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

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

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

    The foregoing rule change is effective upon filing pursuant to 
Section 19(b)(3)(A) \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.
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78s(b)(3)(A).
    \11\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

    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.
---------------------------------------------------------------------------

    \12\ 15 U.S.C. 78s(b)(2)(B).
---------------------------------------------------------------------------

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views and 
arguments concerning the foregoing, including whether the proposal 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-NYSE-2014-05 on the subject line.

Paper Comments

     Send paper comments in triplicate to Elizabeth M. Murphy, 
Secretary,

[[Page 7269]]

Securities and Exchange Commission, 100 F Street NE., Washington, DC 
20549-1090.

All submissions should refer to File Number SR-NYSE-2014-05. 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 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-NYSE-2014-05 and should be 
submitted on or before February 27, 2014.
---------------------------------------------------------------------------

    \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. 2014-02498 Filed 2-5-14; 8:45 am]
BILLING CODE 8011-01-P
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