Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of Filing of Proposed Rule Change To Amend the Fee Schedule Under Exchange Rule 7018(a) With Respect to Transactions in Securities Priced at $1 per Share or More, 9520-9522 [2014-03557]
Download as PDF
<![CDATA[
9520
Federal Register / Vol. 79, No. 33 / Wednesday, February 19, 2014 / Notices
(9) A Fund may hold 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.
(10) The Adviser has implemented
policies and procedures to assess the
creditworthiness of prospective and
existing derivatives counterparties.
Derivatives transactions are conducted
only with approved counterparties with
whom appropriate documentation is
executed. Exposure to counterparties is
independently and actively monitored.
Where appropriate, collateral is posted
and actively managed to reduce
counterparty credit exposure.
(11) Each Fund’s investments will be
consistent with its investment objective
and will not be used to enhance
leverage.
(12) A minimum of 100,000 Shares for
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 30 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,31 that the
proposed rule change (SR–NYSEArca–
2013–138), as modified by Amendment
No. 1, be, and it hereby is, approved.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.32
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2014–03569 Filed 2–18–14; 8:45 am]
EMCDONALD on DSK67QTVN1PROD with NOTICES
BILLING CODE 8011–01–P
U.S.C. 78f(b)(5).
U.S.C. 78s(b)(2).
32 17 CFR 200.30–3(a)(12).
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–71526; File No. SR–BX–
2014–009]
Self-Regulatory Organizations;
NASDAQ OMX BX, Inc.; Notice of Filing
of Proposed Rule Change To Amend
the Fee Schedule Under Exchange
Rule 7018(a) With Respect to
Transactions in Securities Priced at $1
per Share or More
February 12, 2014.
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 February
3, 2014, NASDAQ OMX BX, Inc. (‘‘BX’’
or ‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I, II, and
III below, which Items have been
prepared by the Exchange. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend the
fee schedule under Exchange Rule
7018(a) with respect to transactions in
securities priced at $1 per share or
more. The Exchange will implement the
proposed rule change on February 3,
2014.
The text of the proposed rule change
is also available on the Exchange’s Web
site at https://
nasdaqomxbx.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 and discussed
any comments it received on 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.
30 15
31 15
VerDate Mar<15>2010
16:15 Feb 18, 2014
1 15
2 17
Jkt 232001
PO 00000
U.S.C. 78s(b)(1).
CFR 240.19b–4.
Frm 00065
Fmt 4703
Sfmt 4703
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange is proposing several
changes to its fees for certain orders that
execute at the New York Stock
Exchange (‘‘NYSE’’). Additionally, the
Exchange is proposing to modify the tier
regarding credit for entering order [sic]
that accesses liquidity in the BX
Equities System.
Currently, the Exchange charges
members for BSTG (includes BSKN
orders since it is a form of BSTG), BSCN
(includes BSKP orders since it is a form
of BSCN) and BTFY orders that execute
at NYSE $0.0025 per share executed.
The Exchange is proposing to increase
the charge assessed for all such orders
executed at NYSE to $0.0030 per share.
Also currently, the Exchange charges
members for BMOP orders that execute
at NYSE $0.0027 per share executed.
The Exchange is proposing to increase
the charge assessed for such orders
executed at NYSE to $0.0035 per share.
The Exchange is also proposing to
modify a tier with respect to the rebates
it pays for orders that access liquidity in
securities priced at $1 or more.
Currently, a member will receive a
credit of $0.0013 per share executed
when accessing liquidity 3 if the
member (i) has a daily average volume
of liquidity accessed in all securities
during the month of 6 million or more
shares through one or more of its BX
Equities System market participant
identifiers (‘‘MPIDs’’), and (ii) adds and/
or removes liquidity of 40,000 or more
contracts per day during the month
through BX Options. The Exchange
proposes to reduce the 40,000 or more
contracts per day to 30,000 or more
contracts per day.
The tier recognizes the prevalence of
trading in which members
simultaneously trade different asset
classes within the same strategy.
Because cash equities and options
markets are linked, with liquidity and
trading patterns on one market affecting
those on the other, the Exchange
believes that a pricing incentive that
encourages market participant activity
in BX Options will also support price
discovery and liquidity provision in the
BX Equities System.
2. Statutory Basis
BX believes that the proposed rule
change is consistent with the provisions
3 As with other rebate tiers, the tier does not
apply to an order that executes against a midpoint
pegged order, because the accessing order receives
price improvement.
E:\FR\FM\19FEN1.SGM
19FEN1
EMCDONALD on DSK67QTVN1PROD with NOTICES
Federal Register / Vol. 79, No. 33 / Wednesday, February 19, 2014 / Notices
of Section 6 of the Act,4 in general, and
Sections 6(b)(4) and (b)(5) of the Act,5 in
particular, because it provides for the
equitable allocation of reasonable dues,
fees and other charges among members
and issuers and other persons using any
facility or system that the Exchange
operates or controls, and it does not
unfairly discriminate between
customers, issuers, brokers or dealers.
The change with respect to the tier for
members active in both the BX Equities
System and BX Options is reasonable
because it reflects the availability of a
price reduction for members that
support liquidity on both markets. The
change is consistent with an equitable
allocation of fees because the pricing
tier requires significant levels of
liquidity provision, which benefits all
market participants, and because
activity in BX Options also supports
price discovery and liquidity provision
in the BX Equities System due to the
increasing propensity of market
participants to be active in both markets
and the influence of each market on the
pricing of securities in the other.
Moreover, making one of the provisions
of the tier easier to qualify for by
reducing from 40,000 or more to 30,000
or more contracts per day during the
month through BX options, has the
potential to reduce fees for a wider
range of market participants by
introducing a new means of qualifying
for a lower fee for providing liquidity.
The change is not unreasonably
discriminatory because market
participants may qualify for a still lower
fee without participating in BX Options
through participation in BX’s Qualified
Liquidity Provider program.
The proposed change to fees for
certain orders that execute at NYSE are
reasonable because they reflect a modest
increase to such fees. Specifically, the
proposed change is reasonable because
it reflects a modest increase of $0.0005
per share, from $0.0025 per share to
$0.0030 per share, in the charge
assessed to members executing at NYSE
of BSTG, BSCN and BTFY orders. The
proposed change is also reasonable
because it reflects a modest increase of
$0.0008 per share, from $0.0027 per
share to $0.0035 per share, in the charge
assessed to members executing at NYSE
of BMOP orders. In addition, the change
is equitable and not unfairly
discriminatory because it affects
similarly situated members in the same
way.
These fee changes are consistent with
an equitable allocation of fees and not
unfairly discriminatory because the
4 15
5 15
U.S.C. 78f.
U.S.C. 78f(b)(4), (5).
VerDate Mar<15>2010
16:15 Feb 18, 2014
Jkt 232001
9521
increase will maintain the same fee
being assessed to members executing at
NYSE for BSTG, BSCN and BTFY
orders. The fee increase for members
executing at NYSE for BMOP orders is
an equitable allocation of fees and not
unfairly discriminatory because BMOP 6
is a premium routing option and the fee
increase is modest.
competitive standing in the financial
markets.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing 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.
The Exchange does not believe that
the proposed rule change will result in
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act, as amended.7
BX 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, or
rebate opportunities available at other
venues to be more favorable. In such an
environment, BX must continually
adjust its fees to remain competitive
with other exchanges and with
alternative trading systems that have
been exempted from compliance with
the statutory standards applicable to
exchanges. Because competitors are free
to modify their own fees in response,
and because market participants may
readily adjust their order routing
practices, BX believes that the degree to
which fee changes in this market may
impose any burden on competition is
extremely limited. In this instance, the
increases with respect to certain orders
coupled with the easier to qualify for
pricing tier for members active in the
Exchange’s cash equities and options
markets enhances the Exchange’s
competitiveness by reducing fees for
some and raising fees modestly for
others. Thus, although price increases,
one of the proposed rule changes
provides incentives for behavior that
may allow members to reduce their
trading costs. Moreover, because there
are numerous competitive alternatives
to the use of the Exchange, it is likely
that BX will lose market share as a
result of the changes if they are
unattractive to market participants.
Accordingly, BX does not believe that
the proposed changes will impair the
ability of members or competing order
execution venues to maintain their
6 BX Rule 4758(a)(1)(A)(iii) defines BMOP as a
routing option under which orders route only to
protected quotations and only for displayed size. If
shares remain unexecuted after routing, they are
posted to the book. Once on the book, should the
order subsequently be locked or crossed by another
market center, the system will not route the order
to the locking or crossing market center.
7 15 U.S.C. 78f(b)(8).
PO 00000
Frm 00066
Fmt 4703
Sfmt 4703
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were either
solicited or received.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
BX–2014–009 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–BX–2014–009. 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
8 15
9 17
E:\FR\FM\19FEN1.SGM
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f).
19FEN1
9522
Federal Register / Vol. 79, No. 33 / Wednesday, February 19, 2014 / Notices
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–BX–2014–009 and should
be submitted on or before March 12,
2014.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2014–03557 Filed 2–18–14; 8:45 am]
BILLING CODE 8011–01–P
[Release No. 34–71535; File No. SR–Phlx–
2014–011]
Self-Regulatory Organizations;
NASDAQ OMX PHLX LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Modify
NASDAQ OMX PSX’s Optional AntiInternalization Functionality
February 12, 2014.
EMCDONALD on DSK67QTVN1PROD with NOTICES
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 February
4, 2014, NASDAQ OMX PHLX LLC
(‘‘Phlx’’ 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 the Exchange. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to modify the
optional anti-internalization
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
VerDate Mar<15>2010
16:15 Feb 18, 2014
Jkt 232001
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 and discussed
any comments it received on 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.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
SECURITIES AND EXCHANGE
COMMISSION
10 17
functionality of NASDAQ OMX PSX
(‘‘PSX’’).
The text of the proposed rule change
is available on the Exchange’s Web site
at https://
nasdaqomxphlx.cchwallstreet.com/, at
the principal office of the Exchange, and
at the Commission’s Public Reference
Room.
Phlx is proposing to modify PSX’s
voluntary anti-internalization
functionality to provide an additional
option under that functionality. In
addition, the proposed rule change
contains certain clarifications to the text
of the rule. Anti-internalization
functionality is designed to assist
market participants in complying with
certain rules and regulations of the
Employee Retirement Income Security
Act (‘‘ERISA’’) that preclude and/or
limit broker-dealers managing accounts
governed by ERISA from trading as
principal with orders generated for
those accounts. The functionality can
also assist market participants in
avoiding execution fees that may result
from the interaction of executable buy
and sell trading interest from the same
firm. Phlx notes that use of the
functionality does not relieve or
otherwise modify the duty of best
execution owed to orders received from
public customers. As such, market
participants using anti-internalization
functionality will need to take
appropriate steps to ensure that public
customer orders that do not execute
because of the use of anti-internalization
functionality ultimately receive the
same execution price (or better) they
would have originally obtained if
execution of the order was not inhibited
by the functionality.
PO 00000
Frm 00067
Fmt 4703
Sfmt 4703
Currently, market participants may
apply anti-internalization logic to all
quotes/orders entered through a
particular MPID, or to all orders entered
through a particular order entry port, to
which a unique group identification
modifier is then appended. In other
words, the logic may be applied on an
MPID-by-MPID, or on a port-by-port
basis.3 Currently, two forms of antiinternalization logic may be applied: (i)
If quotes/orders are equivalent in size,
both quotes/orders will be cancelled, or
if they are not equivalent in size, the
smaller will be cancelled and the size of
the larger will be reduced by the size of
the smaller; or (ii) regardless of the size
of the quotes/orders, the oldest quote/
order will be cancelled in full. The
applicable logic may be applied to an
entire MPID, or alternatively, different
logic may be applied to different order
entry ports under a particular MPID.4
In response to member input, the
proposed rule change will add an
additional form of anti-internalization
logic that a market participant could
choose to apply, under which the most
recent quote/order would be cancelled.
As with the two existing forms of antiinternalization logic, the logic could be
applied to an entire MPID, or to selected
order entry ports under a particular
MPID.5 Phlx believes that the change
will provide members with an
additional tool for managing the book of
orders that they submit to PSX and the
associated execution costs.
2. Statutory Basis
Phlx believes that the proposed rule
change is consistent with the provisions
of Section 6 of the Act,6 in general, and
with Section 6(b)(5) of the Act 7 in
particular, in that the proposal is
designed to prevent fraudulent and
manipulative acts and practices, to
promote just and equitable principles of
3 In the proposed rule change that introduced the
ability to assign a group identification modifier
with respect to anti-internalization processing, Phlx
stated that the modifier may be assigned ‘‘at the
port level.’’ Securities Exchange Act Release No.
65869 (December 2, 2011), 76 FR 76793 (December
8, 2011) (SR–Phlx–2011–080). However, this level
of specificity was not included in the text of Rule
3307. In addition, although the rule indicates that
designation of functionality at the port level is an
option available to the market participant, the rule
does not make it clear that in order to make use of
these options, market participants must use PSX’s
OUCH order entry protocol. Thus, the proposed
rule change also adds additional specificity to the
rule text with respect to these aspects of the antiinternalization functionality.
4 With respect to this functionality also,
participants wishing to make designations on the
order port level must use the OUCH order entry
protocol.
5 Id.
6 15 U.S.C. 78f.
7 15 U.S.C. 78f(b)(5).
E:\FR\FM\19FEN1.SGM
19FEN1
]]>Agencies
[Federal Register Volume 79, Number 33 (Wednesday, February 19, 2014)]
[Notices]
[Pages 9520-9522]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-03557]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-71526; File No. SR-BX-2014-009]
Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of
Filing of Proposed Rule Change To Amend the Fee Schedule Under Exchange
Rule 7018(a) With Respect to Transactions in Securities Priced at $1
per Share or More
February 12, 2014.
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 February 3, 2014, NASDAQ OMX BX, Inc. (``BX'' or ``Exchange'')
filed with the Securities and Exchange Commission (``Commission'') the
proposed rule change as described in Items I, II, and III below, which
Items have been prepared by the Exchange. The Commission is publishing
this notice to solicit comments on the proposed rule change from
interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend the fee schedule under Exchange Rule
7018(a) with respect to transactions in securities priced at $1 per
share or more. The Exchange will implement the proposed rule change on
February 3, 2014.
The text of the proposed rule change is also available on the
Exchange's Web site at https://nasdaqomxbx.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 and
discussed any comments it received on 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.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange is proposing several changes to its fees for certain
orders that execute at the New York Stock Exchange (``NYSE'').
Additionally, the Exchange is proposing to modify the tier regarding
credit for entering order [sic] that accesses liquidity in the BX
Equities System.
Currently, the Exchange charges members for BSTG (includes BSKN
orders since it is a form of BSTG), BSCN (includes BSKP orders since it
is a form of BSCN) and BTFY orders that execute at NYSE $0.0025 per
share executed. The Exchange is proposing to increase the charge
assessed for all such orders executed at NYSE to $0.0030 per share.
Also currently, the Exchange charges members for BMOP orders that
execute at NYSE $0.0027 per share executed. The Exchange is proposing
to increase the charge assessed for such orders executed at NYSE to
$0.0035 per share.
The Exchange is also proposing to modify a tier with respect to the
rebates it pays for orders that access liquidity in securities priced
at $1 or more. Currently, a member will receive a credit of $0.0013 per
share executed when accessing liquidity \3\ if the member (i) has a
daily average volume of liquidity accessed in all securities during the
month of 6 million or more shares through one or more of its BX
Equities System market participant identifiers (``MPIDs''), and (ii)
adds and/or removes liquidity of 40,000 or more contracts per day
during the month through BX Options. The Exchange proposes to reduce
the 40,000 or more contracts per day to 30,000 or more contracts per
day.
---------------------------------------------------------------------------
\3\ As with other rebate tiers, the tier does not apply to an
order that executes against a midpoint pegged order, because the
accessing order receives price improvement.
---------------------------------------------------------------------------
The tier recognizes the prevalence of trading in which members
simultaneously trade different asset classes within the same strategy.
Because cash equities and options markets are linked, with liquidity
and trading patterns on one market affecting those on the other, the
Exchange believes that a pricing incentive that encourages market
participant activity in BX Options will also support price discovery
and liquidity provision in the BX Equities System.
2. Statutory Basis
BX believes that the proposed rule change is consistent with the
provisions
[[Page 9521]]
of Section 6 of the Act,\4\ in general, and Sections 6(b)(4) and (b)(5)
of the Act,\5\ in particular, because it provides for the equitable
allocation of reasonable dues, fees and other charges among members and
issuers and other persons using any facility or system that the
Exchange operates or controls, and it does not unfairly discriminate
between customers, issuers, brokers or dealers.
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78f.
\5\ 15 U.S.C. 78f(b)(4), (5).
---------------------------------------------------------------------------
The change with respect to the tier for members active in both the
BX Equities System and BX Options is reasonable because it reflects the
availability of a price reduction for members that support liquidity on
both markets. The change is consistent with an equitable allocation of
fees because the pricing tier requires significant levels of liquidity
provision, which benefits all market participants, and because activity
in BX Options also supports price discovery and liquidity provision in
the BX Equities System due to the increasing propensity of market
participants to be active in both markets and the influence of each
market on the pricing of securities in the other. Moreover, making one
of the provisions of the tier easier to qualify for by reducing from
40,000 or more to 30,000 or more contracts per day during the month
through BX options, has the potential to reduce fees for a wider range
of market participants by introducing a new means of qualifying for a
lower fee for providing liquidity. The change is not unreasonably
discriminatory because market participants may qualify for a still
lower fee without participating in BX Options through participation in
BX's Qualified Liquidity Provider program.
The proposed change to fees for certain orders that execute at NYSE
are reasonable because they reflect a modest increase to such fees.
Specifically, the proposed change is reasonable because it reflects a
modest increase of $0.0005 per share, from $0.0025 per share to $0.0030
per share, in the charge assessed to members executing at NYSE of BSTG,
BSCN and BTFY orders. The proposed change is also reasonable because it
reflects a modest increase of $0.0008 per share, from $0.0027 per share
to $0.0035 per share, in the charge assessed to members executing at
NYSE of BMOP orders. In addition, the change is equitable and not
unfairly discriminatory because it affects similarly situated members
in the same way.
These fee changes are consistent with an equitable allocation of
fees and not unfairly discriminatory because the increase will maintain
the same fee being assessed to members executing at NYSE for BSTG, BSCN
and BTFY orders. The fee increase for members executing at NYSE for
BMOP orders is an equitable allocation of fees and not unfairly
discriminatory because BMOP \6\ is a premium routing option and the fee
increase is modest.
---------------------------------------------------------------------------
\6\ BX Rule 4758(a)(1)(A)(iii) defines BMOP as a routing option
under which orders route only to protected quotations and only for
displayed size. If shares remain unexecuted after routing, they are
posted to the book. Once on the book, should the order subsequently
be locked or crossed by another market center, the system will not
route the order to the locking or crossing market center.
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
result in any burden on competition that is not necessary or
appropriate in furtherance of the purposes of the Act, as amended.\7\
BX 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, or rebate opportunities
available at other venues to be more favorable. In such an environment,
BX must continually adjust its fees to remain competitive with other
exchanges and with alternative trading systems that have been exempted
from compliance with the statutory standards applicable to exchanges.
Because competitors are free to modify their own fees in response, and
because market participants may readily adjust their order routing
practices, BX believes that the degree to which fee changes in this
market may impose any burden on competition is extremely limited. In
this instance, the increases with respect to certain orders coupled
with the easier to qualify for pricing tier for members active in the
Exchange's cash equities and options markets enhances the Exchange's
competitiveness by reducing fees for some and raising fees modestly for
others. Thus, although price increases, one of the proposed rule
changes provides incentives for behavior that may allow members to
reduce their trading costs. Moreover, because there are numerous
competitive alternatives to the use of the Exchange, it is likely that
BX will lose market share as a result of the changes if they are
unattractive to market participants. Accordingly, BX does not believe
that the proposed changes will impair the ability of members or
competing order execution venues to maintain their competitive standing
in the financial markets.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78f(b)(8).
---------------------------------------------------------------------------
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were either solicited or received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing 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.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 17 CFR 240.19b-4(f).
---------------------------------------------------------------------------
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-BX-2014-009 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-BX-2014-009. 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
[[Page 9522]]
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-BX-2014-009 and
should be submitted on or before March 12, 2014.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
---------------------------------------------------------------------------
\10\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-03557 Filed 2-18-14; 8:45 am]
BILLING CODE 8011-01-P
