Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending Its Price List Relating to Certain Transactions Involving Floor Brokers, 47163-47165 [2014-18979]

Download as PDF Federal Register / Vol. 79, No. 155 / Tuesday, August 12, 2014 / Notices SECURITIES AND EXCHANGE COMMISSION [Release No. 34–72778; File No. SR–NYSE– 2014–41] Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending Its Price List Relating to Certain Transactions Involving Floor Brokers August 6, 2014. Pursuant to Section 19(b)(1) 1 of the Securities Exchange Act of 1934 (‘‘Act’’) 2 and Rule 19b–4 thereunder,3 notice is hereby given that, on July 23, 2014, New York Stock Exchange LLC (‘‘NYSE’’ 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 self-regulatory organization. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend its Price List related to certain transactions involving Floor brokers. The Exchange proposes to implement the fee change effective July 23, 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. emcdonald on DSK67QTVN1PROD 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. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant parts of such statements. U.S.C. 78s(b)(1). U.S.C. 78a. 3 17 CFR 240.19b–4. 2 15 17:45 Aug 11, 2014 1. Purpose The Exchange proposes to amend its Price List related to certain transactions involving Floor brokers. The Exchange proposes to implement the fee change effective July 23, 2014. Cross Trades The Price List currently provides that an agency cross trade (i.e., where a member organization has customer orders to buy and sell an equivalent amount of the same security) receives a $0.0006 credit per share, per transaction, which is credited to both sides of the transaction. The rate applies to cross trades effected on the Exchange, which are effected only by Floor brokers. The Exchange proposes a nonsubstantive change to the description to (i) eliminate the existing reference to ‘‘agency,’’ which is intended to refer to the agency capacity in which the Floor broker represents the crossed trade (i.e., not as principal), and (ii) replace the term ‘‘member organization’’ with the term ‘‘Floor broker,’’ as only Floor brokers are able to execute a cross trade. The resulting transaction description would be a Floor broker cross trade (i.e., a trade where a Floor broker executes customer orders to buy and sell an equivalent amount of the same security).4 The existing credit of $0.0006 would not change. This proposed change is designed to avoid potential confusion with an ‘‘agency cross,’’ which, under NYSE Rule 72(d), has a specific meaning and may be entitled to priority at the cross price, irrespective of pre-existing displayed bids or offers on the Exchange at that price. Replacing ‘‘member organization’’ with ‘‘Floor broker’’ would also add greater precision to the Price List, as only Floor brokers are able to execute cross trades on the Exchange. Non-Electronic Agency Transactions Between Floor Brokers The Price List currently provides that non-electronic agency transactions between Floor brokers in the crowd are not charged. The Exchange proposes to provide a $0.0006 credit for these transactions, which would be identical to the rate described above for Floor broker cross trades. The Exchange also 4 The Exchange proposes the same nonsubstantive changes to the corresponding description for transactions in securities priced below $1.00. The existing rate for such transactions in securities priced below $1.00 would remain unchanged. 1 15 VerDate Mar<15>2010 A. Self-Regulatory Organization’s Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change Jkt 232001 PO 00000 Frm 00082 Fmt 4703 Sfmt 4703 47163 proposes a non-substantive change to this transaction description to specify that the pricing is a per share credit, per transaction, and applies to both sides of the transaction.5 Non-Electronic Agency Transactions Against the Book The Price List currently provides that non-electronic agency transactions of Floor brokers that execute against the Book are not charged. The Exchange proposes that this no charge rate would only apply to non-electronic agency transactions of Floor brokers that execute at the close.6 Non-electronic agency transactions of Floor brokers at the close could be against other trading interest in the crowd or against the Book, which is why ‘‘against the Book’’ would be removed from the description. The Price List already includes a separate transaction description for Floor broker executions swept into the close (i.e., electronic Floor broker transactions), which are similarly not charged.7 In conjunction with this aspect of the proposed change, and to fill the gap created by the change described above, the Exchange also proposes to introduce a credit of $0.0006 per share, per transaction applicable to non-electronic agency transactions of Floor brokers that execute against the Book intraday (i.e., other than at the open or close).8 At the Opening or at the Opening Only Orders The Price List currently provides that at the opening or at the opening only orders are charged $0.0010 per share. The Exchange proposes a nonsubstantive change to this transaction description to specify that the pricing is 5 The corresponding description for transactions in securities priced below $1.00 would remain unchanged, as would the existing rate for such transactions. 6 The Exchange proposes the same change to the corresponding description for transactions in securities priced below $1.00. The existing rate for such transactions in securities priced below $1.00 would remain unchanged. 7 The Price List also provides a charge of $0.0002 per share for executions at the close (except market at-the-close (‘‘MOC’’) and limit at-the-close (‘‘LOC’’) orders) and Floor broker executions swept into the close for a member organization that executes an average daily trading volume (‘‘ADV’’) of at least 1,000,000 shares in such transactions on the Exchange during the billing month. This existing $0.0002 charge would not apply to non-electronic agency transactions of Floor brokers that execute at the close, because they cannot be ‘‘swept into the close.’’ 8 The Exchange proposes to introduce a corresponding description for transactions in securities priced below $1.00, at the ‘‘no charge’’ rate that currently applies to several other transactions in securities priced below $1.00. E:\FR\FM\12AUN1.SGM 12AUN1 47164 Federal Register / Vol. 79, No. 155 / Tuesday, August 12, 2014 / Notices emcdonald on DSK67QTVN1PROD with NOTICES a per share charge, per transaction, and applies to both sides of the transaction.9 The proposed change is not otherwise intended to address any other issues, and the Exchange is not aware of any problems that members and member organizations would have in complying with the proposed change. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with Section 6(b) of the Act,10 in general, and furthers the objectives of Sections 6(b)(4) and 6(b)(5) of the Act,11 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 non-substantive change to the description of the Floor broker cross trade in the Price List is reasonable because it would add greater specificity regarding the type of transaction to which the corresponding rate applies. This is equitable and not unfairly discriminatory because it would avoid confusion with an ‘‘agency cross,’’ which, under NYSE Rule 72(d), may be entitled to priority at the cross price, irrespective of pre-existing displayed bids or offers on the Exchange at that price, and is a subset of Floor broker cross trades eligible for the credit. The reference to the term ‘‘agency’’ in the current description merely refers to the capacity in which a Floor broker is serving (i.e., not as principal), but it is not intended to refer to an ‘‘agency cross’’ for purposes of NYSE Rule 72(d). Additionally, only Floor brokers are able to execute cross trades. The Exchange believes it is reasonable to provide a $0.0006 credit for nonelectronic agency transactions between Floor brokers in the crowd and nonelectronic agency transactions of Floor brokers that execute against the Book intraday because, like Floor broker cross trades for which the same $0.0006 credit currently applies, these non-electronic agency transactions of Floor brokers are typically large block orders. This is equitable and not unfairly discriminatory because providing the same credit would encourage the execution of such transactions on a public exchange, thereby promoting 9 The Exchange proposes the same nonsubstantive change to the corresponding description for transactions in securities priced below $1.00. The existing rate for such transactions in securities priced below $1.00 would remain unchanged. 10 15 U.S.C. 78f(b). 11 15 U.S.C. 78f(b)(4) and (5). VerDate Mar<15>2010 17:45 Aug 11, 2014 Jkt 232001 price discovery and transparency. The Exchange also believes that the proposed credit is equitable and not unfairly discriminatory because all nonelectronic agency transactions between Floor brokers in the crowd and nonelectronic agency transactions of Floor brokers that execute against the Book intraday would be eligible to receive the credit and all market participants would benefit from the price discovery and transparency provided by such large block orders. The proposed nonsubstantive change to the description of non-electronic agency transactions between Floor brokers in the crowd would have no effect on the applicable pricing, but would instead conform this description to the descriptions in the Price List for other transactions. The Exchange believes that maintaining no charge as the applicable rate for non-electronic agency transactions of Floor brokers that execute at the close is reasonable because this would be the same rate that currently applies to these transactions, and is also the same rate that applies to Floor broker executions swept into the close. This is equitable and not unfairly discriminatory because it would encourage Floor brokers to continue to send orders to the Exchange for the closing auction, thereby contributing to robust levels of liquidity during such period, which benefits all market participants. The Exchange believes that the proposed non-substantive change to the description of at the opening or at the opening only orders is reasonable because it would have no effect on the applicable pricing, but would instead conform this description to the descriptions in the Price List for other transactions. In this regard, the proposed change would have no effect on the $20,000 cap per month per member organization that currently applies to this pricing, as described in footnote 2 in the Price List. Finally, the Exchange believes that it is subject to significant competitive forces, as described below in the Exchange’s statement regarding the burden on competition. For these reasons, the Exchange believes that the proposal is consistent with the Act. B. Self-Regulatory Organization’s Statement on Burden on Competition In accordance with Section 6(b)(8) of the Act,12 the Exchange believes that the proposed rule change would not impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. Instead, the Exchange believes that the substantive aspects of the proposed change would encourage the submission of additional liquidity to a public exchange, thereby promoting price discovery and transparency and increasing competition among execution venues. The rates proposed herein would apply only to Floor broker transactions and are consistent with existing rates in the Price List for similar types of Floor broker-only transactions. The Exchange therefore believes that the proposed change would further contribute to competition among member organizations, generally, and Floor brokers, specifically, by encouraging additional orders to be sent to the Exchange for execution. Finally, the Exchange notes that it operates in a highly competitive market in which market participants can readily favor competing venues if they deem fee levels at a particular venue to be excessive or rebate opportunities available at other venues to be more favorable. In such an environment, the Exchange must continually adjust its fees and rebates 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 and credits in response, and because market participants may readily adjust their order routing practices, the Exchange believes that the degree to which fee changes in this market may impose any burden on competition is extremely limited. As a result of all of these considerations, the Exchange does not believe that the proposed changes will impair the ability of member organizations or competing order execution venues to maintain their competitive standing in the financial markets. 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) 13 of the Act and subparagraph (f)(2) of Rule 19b–4 14 13 15 12 15 PO 00000 U.S.C. 78f(b)(8). Frm 00083 Fmt 4703 14 17 Sfmt 4703 E:\FR\FM\12AUN1.SGM U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(2). 12AUN1 Federal Register / Vol. 79, No. 155 / Tuesday, August 12, 2014 / Notices 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) 15 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: emcdonald on DSK67QTVN1PROD with NOTICES 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–2014–41 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–2014–41. 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 Section, 100 F Street NE., Washington, DC 20549–1090. 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– 2014–41 and should be submitted on or before September 2, 2014. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.16 Kevin M. O’Neill, Deputy Secretary. U.S.C. 78s(b)(2)(B). VerDate Mar<15>2010 17:45 Aug 11, 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. BILLING CODE 8011–01–P A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change SECURITIES AND EXCHANGE COMMISSION 1. Purpose [FR Doc. 2014–18979 Filed 8–11–14; 8:45 am] [Release No. 34–72777; File No. SR–MIAX– 2014–39] Self-Regulatory Organizations: Miami International Securities Exchange LLC; Notice of Filing of a Proposed Rule Change To List and Trade Options on Shares of the Market Vectors ETFs August 6, 2014. Pursuant to the provisions of 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 July 28, 2014, Miami International Securities Exchange LLC (‘‘MIAX’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘SEC’’ or ‘‘Commission’’) a 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 is filing a proposal to list and trade on the Exchange options on shares of the Market Vectors Brazil Small-Cap ETF (‘‘BRF’’), Market Vectors Indonesia Index ETF (‘‘IDX’’), Market Vectors Poland ETF (‘‘PLND’’), and Market Vectors Russia ETF (‘‘RSX’’). The text of the proposed rule change is available on the Exchange’s Web site at https://www.miaxoptions.com/filter/ wotitle/rule_filing, at MIAX’s principal office, and at the Commission’s Public Reference Room. 16 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 15 15 47165 PO 00000 Frm 00084 Fmt 4703 Sfmt 4703 The Exchange proposes to list for trading on the Exchange options on the shares of the Market Vectors Brazil Small-Cap ETF,3 Market Vectors Indonesia Index ETF, Market Vectors Poland ETF, and Market Vectors Russia ETF 4 (collectively the ‘‘Market Vector ETFs’’). MIAX Rule 402 establishes the Exchange’s initial listing standards for equity options (the ‘‘Listing Standards’’). The Listing Standards permit the Exchange to list options on the shares of open-end investment companies, such as the Market Vectors ETFs, without having to file for approval with the Commission.5 The Exchange submits that each of the Market Vectors ETFs substantially meet all of the initial listing requirements. In particular, all of the requirements set forth in Rule 402(i) for each of the Market Vectors ETFs are met except for the requirement concerning the existence of a comprehensive surveillance sharing agreement (‘‘CSSA’’). However, as explained below, the Exchange submits that sufficient mechanisms exist in order to provide adequate surveillance and regulatory information with respect to the portfolio securities of each of the Market Vectors ETFs. 3 Options on Market Vectors Brazil Small-Cap ETF are currently listed on Chicago Board Options Exchange, Inc. (‘‘CBOE’’), International Securities Exchange (‘‘ISE’’), and NASDAQ OMX PHLX (‘‘PHLX’’). 4 Options on Market Vectors Russia ETF are currently listed on BATS Options Exchange (‘‘BATS’’), BOX Options Exchange (‘‘BOX’’), CBOE, PHLX, NYSE AMEX Options (‘‘AMEX’’), NYSE ARCA Options (‘‘ARCA’’), ISE, and ISE Gemini. 5 MIAX Rule 402(i) provides the Listing Standards for shares or other securities (‘‘ExchangeTraded Fund Shares’’) that are traded on a national securities exchange and are defined as an ‘‘NMS stock’’ under Rule 600 of Regulation NMS. E:\FR\FM\12AUN1.SGM 12AUN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 79, Number 155 (Tuesday, August 12, 2014)]
[Notices]
[Pages 47163-47165]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-18979]

[[Page 47163]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-72778; File No. SR-NYSE-2014-41]

Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Amending Its Price List Relating to Certain Transactions Involving
Floor Brokers

August 6, 2014.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given
that, on July 23, 2014, New York Stock Exchange LLC (``NYSE'' 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 self-regulatory
organization. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
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\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 related to certain
transactions involving Floor brokers. The Exchange proposes to
implement the fee change effective July 23, 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 related to certain
transactions involving Floor brokers. The Exchange proposes to
implement the fee change effective July 23, 2014.
Cross Trades
The Price List currently provides that an agency cross trade (i.e.,
where a member organization has customer orders to buy and sell an
equivalent amount of the same security) receives a $0.0006 credit per
share, per transaction, which is credited to both sides of the
transaction. The rate applies to cross trades effected on the Exchange,
which are effected only by Floor brokers. The Exchange proposes a non-
substantive change to the description to (i) eliminate the existing
reference to ``agency,'' which is intended to refer to the agency
capacity in which the Floor broker represents the crossed trade (i.e.,
not as principal), and (ii) replace the term ``member organization''
with the term ``Floor broker,'' as only Floor brokers are able to
execute a cross trade. The resulting transaction description would be a
Floor broker cross trade (i.e., a trade where a Floor broker executes
customer orders to buy and sell an equivalent amount of the same
security).\4\ The existing credit of $0.0006 would not change. This
proposed change is designed to avoid potential confusion with an
``agency cross,'' which, under NYSE Rule 72(d), has a specific meaning
and may be entitled to priority at the cross price, irrespective of
pre-existing displayed bids or offers on the Exchange at that price.
Replacing ``member organization'' with ``Floor broker'' would also add
greater precision to the Price List, as only Floor brokers are able to
execute cross trades on the Exchange.
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\4\ The Exchange proposes the same non-substantive changes to
the corresponding description for transactions in securities priced
below $1.00. The existing rate for such transactions in securities
priced below $1.00 would remain unchanged.
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Non-Electronic Agency Transactions Between Floor Brokers
The Price List currently provides that non-electronic agency
transactions between Floor brokers in the crowd are not charged. The
Exchange proposes to provide a $0.0006 credit for these transactions,
which would be identical to the rate described above for Floor broker
cross trades. The Exchange also proposes a non-substantive change to
this transaction description to specify that the pricing is a per share
credit, per transaction, and applies to both sides of the
transaction.\5\
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\5\ The corresponding description for transactions in securities
priced below $1.00 would remain unchanged, as would the existing
rate for such transactions.
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Non-Electronic Agency Transactions Against the Book
The Price List currently provides that non-electronic agency
transactions of Floor brokers that execute against the Book are not
charged. The Exchange proposes that this no charge rate would only
apply to non-electronic agency transactions of Floor brokers that
execute at the close.\6\ Non-electronic agency transactions of Floor
brokers at the close could be against other trading interest in the
crowd or against the Book, which is why ``against the Book'' would be
removed from the description. The Price List already includes a
separate transaction description for Floor broker executions swept into
the close (i.e., electronic Floor broker transactions), which are
similarly not charged.\7\ In conjunction with this aspect of the
proposed change, and to fill the gap created by the change described
above, the Exchange also proposes to introduce a credit of $0.0006 per
share, per transaction applicable to non-electronic agency transactions
of Floor brokers that execute against the Book intraday (i.e., other
than at the open or close).\8\
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\6\ The Exchange proposes the same change to the corresponding
description for transactions in securities priced below $1.00. The
existing rate for such transactions in securities priced below $1.00
would remain unchanged.
\7\ The Price List also provides a charge of $0.0002 per share
for executions at the close (except market at-the-close (``MOC'')
and limit at-the-close (``LOC'') orders) and Floor broker executions
swept into the close for a member organization that executes an
average daily trading volume (``ADV'') of at least 1,000,000 shares
in such transactions on the Exchange during the billing month. This
existing $0.0002 charge would not apply to non-electronic agency
transactions of Floor brokers that execute at the close, because
they cannot be ``swept into the close.''
\8\ The Exchange proposes to introduce a corresponding
description for transactions in securities priced below $1.00, at
the ``no charge'' rate that currently applies to several other
transactions in securities priced below $1.00.
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At the Opening or at the Opening Only Orders
The Price List currently provides that at the opening or at the
opening only orders are charged $0.0010 per share. The Exchange
proposes a non-substantive change to this transaction description to
specify that the pricing is

[[Page 47164]]

a per share charge, per transaction, and applies to both sides of the
transaction.\9\
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\9\ The Exchange proposes the same non-substantive change to the
corresponding description for transactions in securities priced
below $1.00. The existing rate for such transactions in securities
priced below $1.00 would remain unchanged.
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The proposed change is not otherwise intended to address any other
issues, and the Exchange is not aware of any problems that members and
member organizations would have in complying with the proposed change.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\10\ in general, and furthers the
objectives of Sections 6(b)(4) and 6(b)(5) of the Act,\11\ 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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\10\ 15 U.S.C. 78f(b).
\11\ 15 U.S.C. 78f(b)(4) and (5).
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The Exchange believes that the proposed non-substantive change to
the description of the Floor broker cross trade in the Price List is
reasonable because it would add greater specificity regarding the type
of transaction to which the corresponding rate applies. This is
equitable and not unfairly discriminatory because it would avoid
confusion with an ``agency cross,'' which, under NYSE Rule 72(d), may
be entitled to priority at the cross price, irrespective of pre-
existing displayed bids or offers on the Exchange at that price, and is
a subset of Floor broker cross trades eligible for the credit. The
reference to the term ``agency'' in the current description merely
refers to the capacity in which a Floor broker is serving (i.e., not as
principal), but it is not intended to refer to an ``agency cross'' for
purposes of NYSE Rule 72(d). Additionally, only Floor brokers are able
to execute cross trades.
The Exchange believes it is reasonable to provide a $0.0006 credit
for non-electronic agency transactions between Floor brokers in the
crowd and non-electronic agency transactions of Floor brokers that
execute against the Book intraday because, like Floor broker cross
trades for which the same $0.0006 credit currently applies, these non-
electronic agency transactions of Floor brokers are typically large
block orders. This is equitable and not unfairly discriminatory because
providing the same credit would encourage the execution of such
transactions on a public exchange, thereby promoting price discovery
and transparency. The Exchange also believes that the proposed credit
is equitable and not unfairly discriminatory because all non-electronic
agency transactions between Floor brokers in the crowd and non-
electronic agency transactions of Floor brokers that execute against
the Book intraday would be eligible to receive the credit and all
market participants would benefit from the price discovery and
transparency provided by such large block orders. The proposed non-
substantive change to the description of non-electronic agency
transactions between Floor brokers in the crowd would have no effect on
the applicable pricing, but would instead conform this description to
the descriptions in the Price List for other transactions.
The Exchange believes that maintaining no charge as the applicable
rate for non-electronic agency transactions of Floor brokers that
execute at the close is reasonable because this would be the same rate
that currently applies to these transactions, and is also the same rate
that applies to Floor broker executions swept into the close. This is
equitable and not unfairly discriminatory because it would encourage
Floor brokers to continue to send orders to the Exchange for the
closing auction, thereby contributing to robust levels of liquidity
during such period, which benefits all market participants.
The Exchange believes that the proposed non-substantive change to
the description of at the opening or at the opening only orders is
reasonable because it would have no effect on the applicable pricing,
but would instead conform this description to the descriptions in the
Price List for other transactions. In this regard, the proposed change
would have no effect on the $20,000 cap per month per member
organization that currently applies to this pricing, as described in
footnote 2 in the Price List.
Finally, the Exchange believes that it is subject to significant
competitive forces, as described below in the Exchange's statement
regarding the burden on competition.
For these reasons, the Exchange believes that the proposal is
consistent with the Act.

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

In accordance with Section 6(b)(8) of the Act,\12\ the Exchange
believes that the proposed rule change would not impose any burden on
competition that is not necessary or appropriate in furtherance of the
purposes of the Act. Instead, the Exchange believes that the
substantive aspects of the proposed change would encourage the
submission of additional liquidity to a public exchange, thereby
promoting price discovery and transparency and increasing competition
among execution venues. The rates proposed herein would apply only to
Floor broker transactions and are consistent with existing rates in the
Price List for similar types of Floor broker-only transactions. The
Exchange therefore believes that the proposed change would further
contribute to competition among member organizations, generally, and
Floor brokers, specifically, by encouraging additional orders to be
sent to the Exchange for execution.
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\12\ 15 U.S.C. 78f(b)(8).
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Finally, the Exchange notes that it operates in a highly
competitive market in which market participants can readily favor
competing venues if they deem fee levels at a particular venue to be
excessive or rebate opportunities available at other venues to be more
favorable. In such an environment, the Exchange must continually adjust
its fees and rebates 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 and credits in
response, and because market participants may readily adjust their
order routing practices, the Exchange believes that the degree to which
fee changes in this market may impose any burden on competition is
extremely limited. As a result of all of these considerations, the
Exchange does not believe that the proposed changes will impair the
ability of member organizations or competing order execution venues to
maintain their competitive standing in the financial markets.

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) \13\ of the Act and subparagraph (f)(2) of Rule
19b-4 \14\

[[Page 47165]]

thereunder, because it establishes a due, fee, or other charge imposed
by the Exchange.
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\13\ 15 U.S.C. 78s(b)(3)(A).
\14\ 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) \15\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\15\ 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-2014-41 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-2014-41. 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 Section, 100 F Street
NE., Washington, DC 20549-1090. 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-2014-41 and should be
submitted on or before September 2, 2014.

For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\16\
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\16\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-18979 Filed 8-11-14; 8:45 am]
BILLING CODE 8011-01-P

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