Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Withdrawal of Proposed Rule Change Amending the NYSE Arca Options Fee Schedule Relating to Lead Market Maker Rights Fees, 47501-47502 [2014-19099]
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mstockstill on DSK4VPTVN1PROD with NOTICES
Federal Register / Vol. 79, No. 156 / Wednesday, August 13, 2014 / Notices
applicable fund, and those documents
and the Form N–CSR and Form N–SAR
may be viewed on-screen or
downloaded from the Commission’s
Web site. In addition, a large amount of
information is publicly available
regarding the Funds and the Shares,
thereby promoting market transparency.
Moreover, the IIV will be disseminated
by one or more major market data
vendors at least every 15 seconds during
Regular Trading Hours. Pricing
information will be available on the
Fund’s Web site including: (1) The prior
business day’s reported NAV, the Bid/
Ask Price, daily trading volume, and a
calculation of the premium and
discount of the Bid/Ask Price against
the NAV; and (2) data in chart format
displaying the frequency distribution of
discounts and premiums of the daily
Bid/Ask Price against the NAV, within
appropriate ranges, for each of the four
previous calendar quarters.
Additionally, information regarding
market price and trading of the Shares
will be continually available on a realtime basis throughout the day on
brokers’ computer screens and other
electronic services, and quotation and
last sale information for the Shares will
be available on the facilities of the CTA.
The Web site for the Funds will include
a form of the prospectus for the Funds
and additional data relating to NAV and
other applicable quantitative
information. Trading in Shares of the
Funds will be halted under the
conditions specified in BATS Rule
11.18. Trading may also be halted
because of market conditions or for
reasons that, in the view of the
Exchange, make trading in the Shares
inadvisable. Finally, trading in the
Shares will be subject to BATS Rule
14.11(k)(4)(B)(iii), which sets forth
circumstances under which Shares of
the Funds may be halted.
The proposed rule change is designed
to perfect the mechanism of a free and
open market and, in general, to protect
investors and the public interest in that
it will facilitate the listing and trading
of an additional type of activelymanaged exchange-traded product that
will enhance competition among market
participants, to the benefit of investors
and the marketplace. As noted above,
the Exchange has in place surveillance
procedures relating to trading in the
Shares and may obtain information via
ISG, from other exchanges that are
members of ISG, or with which the
Exchange has entered into a
comprehensive surveillance sharing
agreement. In addition, as noted above,
investors will have ready access to
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18:15 Aug 12, 2014
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information regarding IIV and quotation
and last sale information for the Shares.
For the above reasons, the Exchange
believes that the proposed rule change
is consistent with the requirements of
Section 6(b)(5) of the Act.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
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 purpose of the Act. The Exchange
believes the proposed rule change
would permit listing and trading of
another type of actively managed ETF
that has characteristics different from
existing actively-managed and index
ETFs, and would introduce additional
competition among various ETF
products to the benefit of investors.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
The Exchange has neither solicited
nor received written comments on the
proposed rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Within 45 days of the date of
publication of this notice in the Federal
Register or within such longer period
up to 90 days (i) as the Commission may
designate if it finds such longer period
to be appropriate and publishes its
reasons for so finding or (ii) as to which
the Exchange consents, the Commission
will: (a) By order approve or disapprove
such proposed rule change, or (b)
institute proceedings to determine
whether the proposed rule change
should be disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views and
arguments concerning the foregoing,
including whether the proposal is
consistent with the Act. Comments may
be submitted by any of the following
methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File No. SR–
BATS–2014–018 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.
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47501
All submissions should refer to File No.
SR–BATS–2014–018. 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 changes between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for Web site viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE.,
Washington, DC 20549, on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such
filing will also 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 No. SR–BATS–
2014–018 and should be submitted on
or before September 3, 2014.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.47
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2014–19096 Filed 8–12–14; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–72791; File No. SR–
NYSEArca–2014–63]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Withdrawal of
Proposed Rule Change Amending the
NYSE Arca Options Fee Schedule
Relating to Lead Market Maker Rights
Fees
August 7, 2014.
On May 23, 2014, NYSE Arca, Inc.
(‘‘NYSE Arca’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’) a proposed rule change
pursuant to Section 19(b)(1) of the
47 17
E:\FR\FM\13AUN1.SGM
CFR 200.30–3(a)(12).
13AUN1
47502
Federal Register / Vol. 79, No. 156 / Wednesday, August 13, 2014 / Notices
Securities Exchange Act of 1934 1 and
Rule 19b–4 thereunder 2 to amend the
NYSE Arca Options Fee Schedule
relating to lead market maker rights fees.
The proposed rule change was
published for comment in the Federal
Register on June 10, 2014.3 On July 18,
2014, the Commission suspended and
instituted proceedings to determine
whether to approve or disapprove the
proposed rule change.4 The Commission
received no comment letters regarding
the proposal. On August 5, 2014, NYSE
Arca withdrew the proposed rule
change (SR–NYSEArca–2014–63).
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.5
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2014–19099 Filed 8–12–14; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–72789; File No. SR–
NYSEArca–2014–84]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Amending the NYSE Arca
Options Fee Schedule Relating to Lead
Market Maker Rights Fees
August 7, 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 August
1, 2014, NYSE Arca, Inc. (the
‘‘Exchange’’ or ‘‘NYSE Arca’’) filed with
the Securities and Exchange
Commission (the ‘‘Commission’’) the
proposed rule change as described in
Items I, II, and III below, which Items
have been prepared by the selfregulatory organization. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of the Substance
of the Proposed Rule Change
The Exchange proposes to amend the
NYSE Arca Options Fee Schedule (‘‘Fee
Schedule’’) relating to Lead Market
mstockstill on DSK4VPTVN1PROD with NOTICES
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 See Securities Exchange Act Release No. 72312
(June 4, 2014), 79 FR 33247 (June 10, 2014).
4 See Securities Exchange Act Release No. 72642
(July 18, 2014), 79 FR 43106 (July 24, 2014).
5 17 CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
2 17
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Maker (‘‘LMM’’) Rights Fees. The
Exchange proposes to implement the fee
change effective August 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
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of this filing is to reduce
the Lead Market Maker Rights Fees for
all Lead Market Makers (‘‘LMMs’’) that
transact a significant daily volume.
Currently, LMMs pay a Lead Market
Maker Rights Fee (‘‘LMM Rights Fee’’)
on each issue in their allocation, ranging
from $45 per month to $1,500 per
month, depending on the activity level
in the issue. The monthly LMM Rights
Fee is based on the Average National
Daily Customer Contracts. The
applicable LMM Rights Fee is directly
related to the number of allocations in
an LMM’s appointment; the more
allocations in an appointment, the
higher the LMM Rights Fee. This is
particularly the case for issues that have
higher Average National Daily Customer
Contracts, which have higher LMM
Rights Fees associated with them.
Because of the LMM Rights Fees, LMMs
that transact a significant amount of
business on the Exchange have been
reluctant to take on additional
allocations. At the present time, there
are approximately 2,600 different
underlying issues listed on NYSE Arca
Options. The Exchange regularly
receives five to 10 requests to list new
issues each week. The Exchange then
surveys the LMM community to invite
applications for allocation. At present,
most surveys only receive one or two
responses per issue, and a key factor in
applying for allocation is the
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profitability of trading in an issue given
the anticipated Rights Fee.
In order to generate more LMM
interest in applying for new issue
allocations, the Exchange is
implementing a volume-based metric
that will apply to all LMMs on the
Exchange. Any LMM that meets certain
volume criteria will be eligible for a
reduced LMM Rights Fee.
Specifically, the Exchange is
proposing that LMMs with daily
contract volume traded electronically of
at least 50,000 contracts, of which
10,000 such contracts are in its LMM
appointment, will qualify for a reduced
LMM Rights Fee. LMMs that qualify
will be charged a 50% reduction in total
LMM Rights Fees. As proposed, whether
an LMM will be charged 50% of the
LMM Rights Fee will be determined
based on an average of the daily contract
volume traded electronically each
trading day by that LMM in a calendar
month.
The Exchange believes that providing
a means for LMMs that achieve certain
volume levels to be eligible for a
reduced monthly LMM Rights Fees will
encourage LMMs that already transact a
significant amount of business on the
Exchange, but may be reluctant to apply
for additional allocations, to apply for
additional allocations. NYSE Arca
proposes that the volume be in overall
electronic Market Maker volume with a
static, specified subset of that contract
volume (i.e., 10,000 contracts) from
names in the LMM appointment, which
the Exchange believes will enable
LMMs that have a smaller number of
issues in their appointment or have a
preponderance of low volume issues to
achieve this rate modification along
with their larger LMM counterparts.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act,4 in general, and
furthers the objectives of Sections
6(b)(4) and (5) of the Act,5 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 modification to LMM Rights
Fees is reasonable, equitable and not
unfairly discriminatory because by
reducing the overhead costs of LMMs
that transact a significant amount of
business on the Exchange, the Exchange
4 15
5 15
E:\FR\FM\13AUN1.SGM
U.S.C. 78f(b).
U.S.C. 78f(b)(4) and (5).
13AUN1
]]>Agencies
[Federal Register Volume 79, Number 156 (Wednesday, August 13, 2014)]
[Notices]
[Pages 47501-47502]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-19099]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-72791; File No. SR-NYSEArca-2014-63]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of
Withdrawal of Proposed Rule Change Amending the NYSE Arca Options Fee
Schedule Relating to Lead Market Maker Rights Fees
August 7, 2014.
On May 23, 2014, NYSE Arca, Inc. (``NYSE Arca'') filed with the
Securities and Exchange Commission (``Commission'') a proposed rule
change pursuant to Section 19(b)(1) of the
[[Page 47502]]
Securities Exchange Act of 1934 \1\ and Rule 19b-4 thereunder \2\ to
amend the NYSE Arca Options Fee Schedule relating to lead market maker
rights fees. The proposed rule change was published for comment in the
Federal Register on June 10, 2014.\3\ On July 18, 2014, the Commission
suspended and instituted proceedings to determine whether to approve or
disapprove the proposed rule change.\4\ The Commission received no
comment letters regarding the proposal. On August 5, 2014, NYSE Arca
withdrew the proposed rule change (SR-NYSEArca-2014-63).
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ See Securities Exchange Act Release No. 72312 (June 4,
2014), 79 FR 33247 (June 10, 2014).
\4\ See Securities Exchange Act Release No. 72642 (July 18,
2014), 79 FR 43106 (July 24, 2014).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\5\
---------------------------------------------------------------------------
\5\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-19099 Filed 8-12-14; 8:45 am]
BILLING CODE 8011-01-P
