Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending its Price List To Modify the Current Adding Credit Tiers and Add a New Adding Credit Tier, 14772-14774 [2014-05753]
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14772
Federal Register / Vol. 78, No. 51 / Monday, March 17, 2014 / Notices
For the Commission, pursuant to delegated
authority.9
Kevin M. O’Neill,
Deputy Secretary.
The Exchange has prepared summaries,
set forth in sections A, B, and C below,
of the most significant parts of such
statements.
[FR Doc. 2014–05754 Filed 3–14–14; 8:45 am]
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
1. Purpose
[Release No. 34–71689; File No. SR–NYSE–
2014–11]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change Amending its
Price List To Modify the Current
Adding Credit Tiers and Add a New
Adding Credit Tier
March 11, 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 February
28, 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.
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 modify the current adding
credit tiers and add a new adding credit
tier. The proposed fees would be
operative on March 1, 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.
tkelley on DSK3SPTVN1PROD with NOTICES
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.
9 17
CFR 200.30–3(a)(12).
U.S.C.78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
1 15
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The Exchange proposes to amend its
Price List to modify the current adding
credit tiers and add a new adding credit
tier. The proposed fees would be
operative on March 1, 2014.
Under the current Tier 1 Adding
Credit, the Exchange offers a credit of
$0.0020 per share ($0.0010 if a NonDisplayed Reserve Order or $0.0015 if a
Midpoint Passive Liquidity (‘‘MPL’’)
order) for transactions in stocks with a
per share price of $1.00 or more when
adding liquidity to the Exchange if:
(i) The member organization has
average daily trading volume (‘‘ADV’’)
that adds liquidity to the NYSE during
the billing month (‘‘Adding ADV,’’
which shall exclude any liquidity added
by a Designated Market Maker
(‘‘DMM’’)) that is at least 1.5% of
consolidated average daily volume in
NYSE-listed securities during the billing
month (‘‘NYSE CADV’’), and executes
market at-the-close (‘‘MOC’’) and limit
at-the-close (‘‘LOC’’) orders of at least
0.375% of NYSE CADV;
(ii) the member organization has
Adding ADV that is at least 0.8% of
NYSE CADV, executes MOC and LOC
orders of at least 0.12% of NYSE CADV,
and adds liquidity to the NYSE as a
Supplemental Liquidity Provider
(‘‘SLP’’) for all assigned SLP securities
in the aggregate (including shares of
both an SLP proprietary trading unit
(‘‘SLP-Prop’’) and an SLP market maker
(‘‘SLMM’’) of the same member
organization) of more than 0.15% of
NYSE CADV; or
(iii) the member organization has
ADV that adds liquidity in customer
electronic orders to the NYSE
(‘‘Customer Electronic Adding ADV,’’
which shall exclude any liquidity added
by a Floor broker, DMM, or SLP) during
the billing month that is at least 0.5%
of NYSE CADV, executes MOC and LOC
orders of at least 0.12% of NYSE CADV,
and has Customer Electronic Adding
ADV during the billing month that,
taken as a percentage of NYSE CADV, is
at least equal to the member
organization’s Customer Electronic
Adding ADV during September 2012 as
a percentage of consolidated average
daily volume in NYSE-listed securities
during September 2012 plus 15%.
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The Exchange proposes to modify the
first method by which a member
organization may qualify for the current
Tier 1 Adding Credit. Specifically, a
member organization would qualify for
the credit of $0.0020 per share ($0.0010
if a Non-Displayed Reserve Order or
$0.0015 if an MPL order) for
transactions in stocks with a per share
price of $1.00 or more when adding
liquidity to the Exchange if the member
organization has Customer Electronic
Adding ADV that is at least 1.1% of
NYSE CADV, and executes MOC and
LOC orders of at least 0.375% of NYSE
CADV. The Exchange does not propose
to modify the second or third methods
by which a member organization may
qualify for the current Tier 1 Adding
Credit.
The Exchange also proposes to
establish a new adding credit tier,
which would provide a credit of
$0.0022 per share ($0.0010 if a NonDisplayed Reserve Order or $0.0015 if
an MPL order) for transactions in stocks
with a per share price of $1.00 or more
when adding liquidity to the Exchange
if:
(i) The member organization has
Customer Electronic Adding ADV
during the billing month that is at least
1.25% of NYSE CADV, and executes
MOC and LOC orders of at least 0.12%
of NYSE CADV; or
(ii) the member organization has
Customer Electronic Adding ADV
during the billing month that is at least
0.85% of NYSE CADV, executes MOC
and LOC orders of at least 0.12% of
NYSE CADV, and either (a) adds
liquidity to the NYSE as an SLP for all
assigned SLP securities in the aggregate
(including shares of both an SLP-Prop
and an SLMM of the same member
organization) of more than 0.3% of
NYSE CADV or (b) adds liquidity to the
NYSE as a Floor broker of more than
0.3% of NYSE CADV.
The Exchange proposes to name the
new adding credit tier the ‘‘Tier 1
Adding Credit’’ and would rename the
current Tier 1 Adding Credit and Tier 2
Adding Credit, the ‘‘Tier 2 Adding
Credit’’ and ‘‘Tier 3 Adding Credit,’’
respectively. The Exchange also
proposes to make certain nonsubstantive, conforming changes to the
Price List.4
4 The Exchange notes that it has previously filed
with the Securities and Exchange Commission a
proposed rule change to amend the Price List (File
No. SR–NYSE–2014–09). Exhibit 5 to SR–NYSE–
2014–09 specified an effective date for the revised
Price List of March 1, 2014 (changed from February
1, 2014). Exhibit 5 to the instant proposed rule
change also specifies an effective date of March 1,
2014. SR–NYSE–2014–09 also modified the credit
for executions of orders sent to the Floor broker for
representation on the Exchange when adding
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tkelley on DSK3SPTVN1PROD with NOTICES
Federal Register / Vol. 78, No. 51 / Monday, March 17, 2014 / Notices
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act,5 in general, and
furthers the objectives of Sections
6(b)(4) and (5) of the Act,6 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 modifying
the first method by which member
organizations may qualify for the credit
of $0.0020 per share under the current
Tier 1 Adding Credit by basing the
threshold on Customer Electronic
Adding ADV that is at least 1.1% of
NYSE CADV is reasonable because it
would encourage the submission of
customer electronic orders that add
liquidity to the Exchange. The Exchange
believes that the proposed change is
equitable and not unfairly
discriminatory because it would
encourage multiple sources of liquidity
by providing member organizations that
do not have a DMM, SLP, or Floor
broker unit with an additional method
to qualify for the credit. As is currently
the case, member organizations would
continue to have three distinct methods
of qualifying for the $0.0020 per share
credit.
The Exchange believes that the new
Tier 1 Adding Credit of $0.0022 per
share for transactions in stocks with a
per share stock price of $1.00 or more
when adding liquidity is reasonable
because it would further contribute to
incenting member organizations to
provide additional amounts of liquidity
on the Exchange. The Exchange believes
that the proposed new Tier 1 Adding
Credit of $0.0022 is equitable and not
unfairly discriminatory because all
member organizations would benefit
from such increased levels of liquidity.
In addition, the new Tier 1 Adding
Credit would provide a higher credit to
member organizations that is reasonably
related to the value to the Exchange’s
market quality associated with higher
volumes of liquidity. In addition, the
Exchange believes that the proposed
new Tier 1 Adding Credit is equitable
and not unfairly discriminatory because
it would provide several methods of
qualifying for the credit, which would
liquidity to the Exchange. When updating the Price
List, the Exchange will include the fee changes
described in both this filing and the fee changes
reflected in SR–NYSE–2014–09, which are reflected
in the Exhibit 5 to this proposed rule change.
5 15 U.S.C. 78f(b).
6 15 U.S.C. 78f(b)(4) and (5).
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attract multiple sources of liquidity to
the Exchange.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
In accordance with Section 6(b)(8) of
the Act,7 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 changes to the adding
credit tiers would not burden
competition, but rather would
encourage multiple sources of liquidity,
including both member organizations
with an SLP or Floor broker unit and
those without. In addition, the proposed
new Tier 1 Adding Credit would not
burden competition; rather, it is
designed to encourage member
organizations to submit additional
amounts of liquidity on the Exchange.
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) 8 of the Act and
subparagraph (f)(2) of Rule 19b–4 9
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
7 15
U.S.C. 78f(b)(8).
U.S.C. 78s(b)(3)(A).
9 17 CFR 240.19b–4(f)(2).
Commission takes such action, the
Commission shall institute proceedings
under Section 19(b)(2)(B) 10 of the Act to
determine whether the proposed rule
change should be approved or
disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
NYSE–2014–11 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE.,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–NYSE–2014–11. 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 will also be available for Web site
viewing and printing at the NYSE’s
principal office and on its Internet Web
site at www.nyse.com. 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–
8 15
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E:\FR\FM\17MRN1.SGM
U.S.C. 78s(b)(2)(B).
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14774
Federal Register / Vol. 78, No. 51 / Monday, March 17, 2014 / Notices
2014–11 and should be submitted on or
before April 7, 2014.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2014–05753 Filed 3–14–14; 8:45 am]
BILLING CODE 8011–01–P
the places specified in Item IV below.
The self-regulatory organization 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
[Release No. 34–71685; File No. SR–ISE–
2014–11]
Self-Regulatory Organizations;
International Securities Exchange,
LLC; Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change To Permit Market Makers To
Enter Opening Only Orders in
Appointed Options Classes
March 11, 2014.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that, on February
25, 2014 the International Securities
Exchange, LLC (the ‘‘Exchange’’ or the
‘‘ISE’’) filed with the Securities and
Exchange Commission the proposed
rule change, as described in Items I and
II below, which items have been
prepared by the self-regulatory
organization. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
tkelley on DSK3SPTVN1PROD with NOTICES
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The ISE proposes to amend Rule
805(a) to permit market makers to enter
Opening Only Orders in the options
classes to which they are appointed.
The text of the proposed rule change is
available on the Exchange’s Web site
(https://www.ise.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 these statements may be examined at
11 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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The Exchange proposes to amend
Rule 805(a) to permit market makers to
enter Opening Only Orders in the
options classes to which they are
appointed. On October 7, 2010 the
Exchange filed an immediately effective
rule change that, among other things,
established two new order types,
including the ‘‘Opening Only Order,’’
which is a limit order that can be
entered for the opening rotation only.3
When the ISE adopted this new order
type, however, it did not add it to the
list of order types in Rule 805(a) that
market makers are permitted to trade in
their appointed classes.4 Because of
this, market makers are not currently
permitted to submit Opening Only
Orders in the options classes to which
they are appointed. Prior to the launch
of the ISE’s T7 trading system (formerly
‘‘Optimise’’), which introduced Opening
Only Orders, market makers could
submit immediate-or-cancel (‘‘IOC’’)
orders prior to the opening of trading,
which provided the same functionality
as ISE’s current Opening Only Orders.
Specifically, like Opening Only Orders,
the ISE permitted members to submit
IOC orders at any time prior to the
opening of trading, which would then
execute during the opening rotation,
with any unexecuted portion being
cancelled. Under the T7 trading system,
however, IOC orders are only permitted
intraday. The Exchange now proposes to
amend its rules so that market makers
are able to use this functionality again
by submitting Opening Only Orders to
the ISE. Market makers on other options
exchanges, such as the MIAX Options
Exchange (‘‘MIAX’’), similarly have the
ability to enter ‘‘opening only’’ order
types in their appointed classes.5
3 See Exchange Act Release No. 63117 (October
15, 2010), 75 FR 65042 (October 21, 2010) (SR–ISE–
2010–101). An ‘‘Opening Only Order’’ is a limit
order that can be entered for the opening rotation
only. Any portion of the order that is not executed
during the opening rotation is cancelled.
4 Market makers are currently permitted to submit
the following order types in their appointed options
classes: IOC orders, market orders, fill-or-kill
orders, complex orders, and certain block orders
and non-displayed penny orders. See ISE Rule
805(a).
5 See MIAX Rule 605(a).
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2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the provisions of Section 6 of the
Securities Exchange Act of 1934 (the
‘‘Act’’),6 in general, and with Section
6(b)(5) of the Act,7 in particular, in that
it is designed to promote just and
equitable principles of trade, to remove
impediments to and perfect the
mechanism of a free and open market
and a national market system, and, in
general, to protect investors and the
public interest. The Exchange believes
that allowing market makers to use
Opening Only Orders will give those
members greater flexibility to update
prices during the opening rotation.
Specifically, market makers have
requested that they be permitted to use
Opening Only Orders so that they may
use this order type to update their prices
in single series during the opening
process more efficiently than relying on
quoting systems that are designed to
update prices across multiple series. As
explained above, ‘‘opening only’’ orders
types are available to market makers on
other exchanges, and this functionality
was previously available to ISE market
makers prior to the introduction of the
T7 trading system as members,
including market makers, were able to
submit IOC orders for execution in the
opening rotation. Moreover, because any
portion of an Opening Only Order that
is not executed during the opening
rotation is cancelled, this proposed rule
change is generally consistent with Rule
805(a), which was intended to prevent
market makers from having both
standing limit orders and quotes in the
same options class.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
In accordance with Section 6(b)(8) of
the Act,8 the Exchange does not believe
that the proposed rule change will
impose any burden on intermarket or
intramarket competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. To the
contrary, the Exchange believes that the
proposed rule change is pro-competitive
as it permits market makers to use
functionality already available to other
ISE members, and to market makers on
other exchanges, who are currently able
to submit Opening Only Orders or other
similar order types.
6 15
U.S.C. 78f.
U.S.C. 78f(b)(5).
8 15 U.S.C. 78f(b)(8).
7 15
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]]>Agencies
[Federal Register Volume 79, Number 51 (Monday, March 17, 2014)]
[Notices]
[Pages 14772-14774]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-05753]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-71689; File No. SR-NYSE-2014-11]
Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Amending its Price List To Modify the Current Adding Credit Tiers and
Add a New Adding Credit Tier
March 11, 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 February 28, 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.
---------------------------------------------------------------------------
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 modify the current
adding credit tiers and add a new adding credit tier. The proposed fees
would be operative on March 1, 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 the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend its Price List to modify the current
adding credit tiers and add a new adding credit tier. The proposed fees
would be operative on March 1, 2014.
Under the current Tier 1 Adding Credit, the Exchange offers a
credit of $0.0020 per share ($0.0010 if a Non-Displayed Reserve Order
or $0.0015 if a Midpoint Passive Liquidity (``MPL'') order) for
transactions in stocks with a per share price of $1.00 or more when
adding liquidity to the Exchange if:
(i) The member organization has average daily trading volume
(``ADV'') that adds liquidity to the NYSE during the billing month
(``Adding ADV,'' which shall exclude any liquidity added by a
Designated Market Maker (``DMM'')) that is at least 1.5% of
consolidated average daily volume in NYSE-listed securities during the
billing month (``NYSE CADV''), and executes market at-the-close
(``MOC'') and limit at-the-close (``LOC'') orders of at least 0.375% of
NYSE CADV;
(ii) the member organization has Adding ADV that is at least 0.8%
of NYSE CADV, executes MOC and LOC orders of at least 0.12% of NYSE
CADV, and adds liquidity to the NYSE as a Supplemental Liquidity
Provider (``SLP'') for all assigned SLP securities in the aggregate
(including shares of both an SLP proprietary trading unit (``SLP-
Prop'') and an SLP market maker (``SLMM'') of the same member
organization) of more than 0.15% of NYSE CADV; or
(iii) the member organization has ADV that adds liquidity in
customer electronic orders to the NYSE (``Customer Electronic Adding
ADV,'' which shall exclude any liquidity added by a Floor broker, DMM,
or SLP) during the billing month that is at least 0.5% of NYSE CADV,
executes MOC and LOC orders of at least 0.12% of NYSE CADV, and has
Customer Electronic Adding ADV during the billing month that, taken as
a percentage of NYSE CADV, is at least equal to the member
organization's Customer Electronic Adding ADV during September 2012 as
a percentage of consolidated average daily volume in NYSE-listed
securities during September 2012 plus 15%.
The Exchange proposes to modify the first method by which a member
organization may qualify for the current Tier 1 Adding Credit.
Specifically, a member organization would qualify for the credit of
$0.0020 per share ($0.0010 if a Non-Displayed Reserve Order or $0.0015
if an MPL order) for transactions in stocks with a per share price of
$1.00 or more when adding liquidity to the Exchange if the member
organization has Customer Electronic Adding ADV that is at least 1.1%
of NYSE CADV, and executes MOC and LOC orders of at least 0.375% of
NYSE CADV. The Exchange does not propose to modify the second or third
methods by which a member organization may qualify for the current Tier
1 Adding Credit.
The Exchange also proposes to establish a new adding credit tier,
which would provide a credit of $0.0022 per share ($0.0010 if a Non-
Displayed Reserve Order or $0.0015 if an MPL order) for transactions in
stocks with a per share price of $1.00 or more when adding liquidity to
the Exchange if:
(i) The member organization has Customer Electronic Adding ADV
during the billing month that is at least 1.25% of NYSE CADV, and
executes MOC and LOC orders of at least 0.12% of NYSE CADV; or
(ii) the member organization has Customer Electronic Adding ADV
during the billing month that is at least 0.85% of NYSE CADV, executes
MOC and LOC orders of at least 0.12% of NYSE CADV, and either (a) adds
liquidity to the NYSE as an SLP for all assigned SLP securities in the
aggregate (including shares of both an SLP-Prop and an SLMM of the same
member organization) of more than 0.3% of NYSE CADV or (b) adds
liquidity to the NYSE as a Floor broker of more than 0.3% of NYSE CADV.
The Exchange proposes to name the new adding credit tier the ``Tier
1 Adding Credit'' and would rename the current Tier 1 Adding Credit and
Tier 2 Adding Credit, the ``Tier 2 Adding Credit'' and ``Tier 3 Adding
Credit,'' respectively. The Exchange also proposes to make certain non-
substantive, conforming changes to the Price List.\4\
---------------------------------------------------------------------------
\4\ The Exchange notes that it has previously filed with the
Securities and Exchange Commission a proposed rule change to amend
the Price List (File No. SR-NYSE-2014-09). Exhibit 5 to SR-NYSE-
2014-09 specified an effective date for the revised Price List of
March 1, 2014 (changed from February 1, 2014). Exhibit 5 to the
instant proposed rule change also specifies an effective date of
March 1, 2014. SR-NYSE-2014-09 also modified the credit for
executions of orders sent to the Floor broker for representation on
the Exchange when adding liquidity to the Exchange. When updating
the Price List, the Exchange will include the fee changes described
in both this filing and the fee changes reflected in SR-NYSE-2014-
09, which are reflected in the Exhibit 5 to this proposed rule
change.
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[[Page 14773]]
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\5\ in general, and furthers the
objectives of Sections 6(b)(4) and (5) of the Act,\6\ 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.
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\5\ 15 U.S.C. 78f(b).
\6\ 15 U.S.C. 78f(b)(4) and (5).
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The Exchange believes that modifying the first method by which
member organizations may qualify for the credit of $0.0020 per share
under the current Tier 1 Adding Credit by basing the threshold on
Customer Electronic Adding ADV that is at least 1.1% of NYSE CADV is
reasonable because it would encourage the submission of customer
electronic orders that add liquidity to the Exchange. The Exchange
believes that the proposed change is equitable and not unfairly
discriminatory because it would encourage multiple sources of liquidity
by providing member organizations that do not have a DMM, SLP, or Floor
broker unit with an additional method to qualify for the credit. As is
currently the case, member organizations would continue to have three
distinct methods of qualifying for the $0.0020 per share credit.
The Exchange believes that the new Tier 1 Adding Credit of $0.0022
per share for transactions in stocks with a per share stock price of
$1.00 or more when adding liquidity is reasonable because it would
further contribute to incenting member organizations to provide
additional amounts of liquidity on the Exchange. The Exchange believes
that the proposed new Tier 1 Adding Credit of $0.0022 is equitable and
not unfairly discriminatory because all member organizations would
benefit from such increased levels of liquidity. In addition, the new
Tier 1 Adding Credit would provide a higher credit to member
organizations that is reasonably related to the value to the Exchange's
market quality associated with higher volumes of liquidity. In
addition, the Exchange believes that the proposed new Tier 1 Adding
Credit is equitable and not unfairly discriminatory because it would
provide several methods of qualifying for the credit, which would
attract multiple sources of liquidity to the Exchange.
B. Self-Regulatory Organization's Statement on Burden on Competition
In accordance with Section 6(b)(8) of the Act,\7\ 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.
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\7\ 15 U.S.C. 78f(b)(8).
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The proposed changes to the adding credit tiers would not burden
competition, but rather would encourage multiple sources of liquidity,
including both member organizations with an SLP or Floor broker unit
and those without. In addition, the proposed new Tier 1 Adding Credit
would not burden competition; rather, it is designed to encourage
member organizations to submit additional amounts of liquidity on the
Exchange.
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) \8\ of the Act and subparagraph (f)(2) of Rule 19b-
4 \9\ thereunder, because it establishes a due, fee, or other charge
imposed by the Exchange.
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\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 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) \10\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\10\ 15 U.S.C. 78s(b)(2)(B).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-NYSE-2014-11 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.
All submissions should refer to File Number SR-NYSE-2014-11. 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 will also be available
for Web site viewing and printing at the NYSE's principal office and on
its Internet Web site at www.nyse.com. 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-
[[Page 14774]]
2014-11 and should be submitted on or before April 7, 2014.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
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\11\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-05753 Filed 3-14-14; 8:45 am]
BILLING CODE 8011-01-P
