Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the NYSE Amex Options Fee Schedule, 50725-50726 [2014-20081]
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Federal Register / Vol. 79, No. 164 / Monday, August 25, 2014 / Notices
Adjustment Procedure,’’ and to make
certain conforming administrative
changes to streamline the rules
governing trade nullification and
adjustments. The proposed rule change
was published for comment in the
Federal Register on June 19, 2014.3 The
Commission received no comments on
the proposal. On July 31, 2014, CBOE
extended the time period for
Commission action to August 18, 2014.
On August 15, 2014, CBOE withdrew
the proposed rule change (SR–CBOE–
2014–050).
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.4
Kevin M. O’Neill,
Deputy Secretary.
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–72865; File No. SR–
NYSEMKT–2014–67]
Self-Regulatory Organizations; NYSE
MKT LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend the NYSE
Amex Options Fee Schedule
August 19, 2014.
emcdonald on DSK67QTVN1PROD with NOTICES
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
8, 2014, NYSE MKT LLC (the
‘‘Exchange’’ or ‘‘NYSE MKT’’) 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 proposes to
amend the NYSE Amex Options Fee
Schedule (‘‘Fee Schedule’’). The
proposed changes will be operative on
August 8, 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,
VerDate Mar<15>2010
17:31 Aug 22, 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
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
[FR Doc. 2014–20082 Filed 8–22–14; 8:45 am]
3 Securities Exchange Act Release No. 72390
(June 13, 2014), 79 FR 35198.
4 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.
and at the Commission’s Public
Reference Room.
1. Purpose
The Exchange proposes to amend the
Fee Schedule as described below. The
proposed changes will be operative on
August 8, 2014.
The Exchange proposes to add
language that excludes certain
Customer-to-Customer activity from
qualifying for any rebate under the
Customer Electronic Complex Order
ADV Tier rebate schedule. Presently, the
Exchange pays rebates to Order Flow
Providers (‘‘OFP’s’’) according to the
table shown below.
50725
Customer Electronic Complex Order ADV Tiers—excludes volume from customer
to customer electronic complex executions
Rebate per
contract for
[all] customer
electronic
complex orders excluding
customer to
customer electronic complex
executions
(retroactive to
the first contract traded
during the
month)
35,000 to 49,999 ..................
50,000 to 69,999 ..................
70,000 to 109,999 ................
110,000 and greater .............
$0.04
0.06
0.08
0.10
As this fee is being filed for
immediate effectiveness on August 8,
2014, for the month of August only, the
Exchange will exclude Customer to
Customer Electronic Complex
Executions from the calculation of the
proposed rebate only during the
remaining trading days of August (i.e.,
excluding August 1,4–7—the first five
trading days) and any such volume
executed prior to August 8, 2014 will
apply to a Customer’s potential rebate.5
By calculating the August 2014
proposed rebate in this fashion, the
Exchange believes that Customers
seeking to meet the volume metric
would have an opportunity to do so and
would not be disadvantaged if trading
volume prior to the effective date of this
rule change did not meet the volume
metric.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Customer Electronic Comthe provisions of Section 6(b) 6 of the
plex Order ADV Tiers
Act, in general, and Section 6(b)(4) and
(5) 7 of the Act, in particular, in that it
is designed to provide for the equitable
allocation of reasonable dues, fees, and
35,000 to 49,999 ..................
$0.04 other charges among its members and
50,000 to 69,999 ..................
0.06 other persons using its facilities and
70,000 to 109,999 ................
0.08 does not unfairly discriminate between
110,000 and greater .............
0.10 customers, issuers, brokers, or dealers.
The Exchange believes that the
The Exchange is proposing to add
proposal to exclude certain activity from
language that would exclude certain
counting towards or earning the rebate
types of activity from counting towards
paid under the existing Customer
any portion of the rebate, to include
Electronic Complex Order ADV Tiers is
both volume associated with the activity reasonable, equitable and not unfairly
and any per contract rebate associated
discriminatory for the following
with the activity. Specifically, the
Exchange proposes to exclude volume
5 For example, if a OFP on behalf of a Customer
from any Customer to Customer
achieved 50,000 contracts or greater volume of
Customer to Customer Electronic Complex
Electronic Complex executions.
Executions during the first five trading days in
Therefore, the Exchange proposes to
August 2014 only, that activity will apply to that
amend the fee schedule to read as
any potential rebate for August 2014. As proposed,
follows: 4
Customer to Customer Electronic Complex
Rebate per
contract for all
customer electronic Complex
orders (retroactive to the
first contract
traded during
the month)
4 Text
that the Exchange proposes to delete
appears in brackets; text that the Exchange proposes
to add appears underscored.
PO 00000
Frm 00112
Fmt 4703
Sfmt 4703
Executions from August 8, 2014 forward will not
apply to any potential rebate.
6 15 U.S.C. 78f(b).
7 15 U.S.C. 78f(b)(4) and (5).
E:\FR\FM\25AUN1.SGM
25AUN1
50726
Federal Register / Vol. 79, No. 164 / Monday, August 25, 2014 / Notices
emcdonald on DSK67QTVN1PROD with NOTICES
reasons. First, the specific type of
activity being excluded does not
generate transaction fee revenue for the
Exchange as Customers are charge a rate
of $0.00 per contract. As a result, the
Customers who are engaging in the
activity—Customer to Customer
Electronic Complex Order executions—
are not being charged transaction fees.
The Exchange believes it is reasonable,
equitable and not unfairly
discriminatory to refrain from paying a
rebate for activity that is already free for
the participants involved. The Exchange
also believes that the proposal is
reasonable, equitable, and not unfairly
discriminatory because it applies to all
Customers equally. Finally, because the
rebate only applies to Customer activity,
the elimination of the rebate as
proposed puts Customers on the same
competitive footing for the excluded
orders as other market participants, and
therefore is reasonable, equitable and
not unfairly discriminatory.
With respect to the proposed fee being
applicable to the balance of August
2014, the Exchange believes the fee is
reasonable because Customers are on
notice of the proposed fee and the rebate
would be based only on the volume
executed during the remaining trading
days of August.
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 not
necessary or appropriate in furtherance
of the purposes of the Act. The
Exchange believes the proposed fee
change is reasonably designed to be fair
and equitable, and therefore, will not
unduly burden any particular group of
market participants trading on the
`
Exchange vis-a-vis another group. The
Exchange notes that the rebate only
applies to Customers and therefore the
elimination of the rebate in the
described situation puts Customers on
the same competitive footing as other
market participants. As such, no market
participant would be entitled to a credit
for these types of transactions. As noted
above, the proposed fee change applies
equally to all Customers, thus the
proposed fee change does not pose an
undue burden among Customers. The
Exchange does not believe that the
proposed rule change will impose any
burden on intermarket competition that
is not necessary or appropriate in
furtherance of the purposes of the Act
because the proposed change only
applies to trading on the Exchange.
The Exchange operates in a highly
competitive market, comprised of many
options exchanges, in which market
VerDate Mar<15>2010
17:31 Aug 22, 2014
Jkt 232001
participants can easily and readily
direct order flow to competing venues if
they deem fee levels at a particular
venue to be excessive or rebates to be
inadequate. Accordingly, the fees that
are assessed and the rebates paid by the
Exchange described in the above
proposal are influenced by these robust
market forces and therefore must remain
competitive with fees charged and
rebates paid by other venues and
therefore must continue to be reasonable
and equitably allocated to those ATP
Holders that opt to direct orders to the
Exchange rather than competing venues.
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
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 (http://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
NYSEMKT–2014–67 on the subject line.
8 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(2).
10 15 U.S.C. 78s(b)(2)(B).
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–NYSEMKT–2014–67. 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 (http://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 such
filing also will be available for
inspection and copying at the principal
office of the Exchange. All comments
received will be posted without change;
the Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–
NYSEMKT–2014–67, and should be
submitted on or before September 15,
2014.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2014–20081 Filed 8–22–14; 8:45 am]
BILLING CODE 8011–01–P
OFFICE OF SPECIAL COUNSEL
Agency Information Collection
Activities, Request for Comment
Office of Special Counsel.
Second Notice.
AGENCY:
ACTION:
In accordance with the
Paperwork Reduction Act of 1995 (44
U.S.C. Chapter 35), the U.S. Office of
Special Counsel (OSC), plans to request
SUMMARY:
9 17
PO 00000
Frm 00113
Fmt 4703
11 17
Sfmt 4703
E:\FR\FM\25AUN1.SGM
CFR 200.30–3(a)(12).
25AUN1
]]>Agencies
[Federal Register Volume 79, Number 164 (Monday, August 25, 2014)]
[Notices]
[Pages 50725-50726]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-20081]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-72865; File No. SR-NYSEMKT-2014-67]
Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and
Immediate Effectiveness of Proposed Rule Change To Amend the NYSE Amex
Options Fee Schedule
August 19, 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 8, 2014, NYSE MKT LLC (the ``Exchange'' or ``NYSE
MKT'') 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 the
Substance of the Proposed Rule Change
The Exchange proposes to proposes to amend the NYSE Amex Options
Fee Schedule (``Fee Schedule''). The proposed changes will be operative
on August 8, 2014. The text of the proposed rule change is available on
the Exchange's Web site at www.nyse.com, at the principal office of the
Exchange, and at the Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the self-regulatory organization
included statements concerning the purpose of, and basis for, the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of those statements may be examined at
the places specified in Item IV below. The Exchange has prepared
summaries, set forth in sections A, B, and C below, of the most
significant parts of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend the Fee Schedule as described below.
The proposed changes will be operative on August 8, 2014.
The Exchange proposes to add language that excludes certain
Customer-to-Customer activity from qualifying for any rebate under the
Customer Electronic Complex Order ADV Tier rebate schedule. Presently,
the Exchange pays rebates to Order Flow Providers (``OFP's'') according
to the table shown below.
------------------------------------------------------------------------
Rebate per
contract for
all customer
electronic
Complex orders
Customer Electronic Complex Order ADV Tiers (retroactive
to the first
contract
traded during
the month)
------------------------------------------------------------------------
35,000 to 49,999........................................ $0.04
50,000 to 69,999........................................ 0.06
70,000 to 109,999....................................... 0.08
110,000 and greater..................................... 0.10
------------------------------------------------------------------------
The Exchange is proposing to add language that would exclude
certain types of activity from counting towards any portion of the
rebate, to include both volume associated with the activity and any per
contract rebate associated with the activity. Specifically, the
Exchange proposes to exclude volume from any Customer to Customer
Electronic Complex executions. Therefore, the Exchange proposes to
amend the fee schedule to read as follows: \4\
---------------------------------------------------------------------------
\4\ Text that the Exchange proposes to delete appears in
brackets; text that the Exchange proposes to add appears
underscored.
------------------------------------------------------------------------
Rebate per
contract for
[all] customer
electronic
complex orders
excluding
customer to
Customer Electronic Complex Order ADV Tiers--excludes customer
volume from customer to customer electronic complex electronic
executions complex
executions
(retroactive
to the first
contract
traded during
the month)
------------------------------------------------------------------------
35,000 to 49,999........................................ $0.04
50,000 to 69,999........................................ 0.06
70,000 to 109,999....................................... 0.08
110,000 and greater..................................... 0.10
------------------------------------------------------------------------
As this fee is being filed for immediate effectiveness on August 8,
2014, for the month of August only, the Exchange will exclude Customer
to Customer Electronic Complex Executions from the calculation of the
proposed rebate only during the remaining trading days of August (i.e.,
excluding August 1,4-7--the first five trading days) and any such
volume executed prior to August 8, 2014 will apply to a Customer's
potential rebate.\5\ By calculating the August 2014 proposed rebate in
this fashion, the Exchange believes that Customers seeking to meet the
volume metric would have an opportunity to do so and would not be
disadvantaged if trading volume prior to the effective date of this
rule change did not meet the volume metric.
---------------------------------------------------------------------------
\5\ For example, if a OFP on behalf of a Customer achieved
50,000 contracts or greater volume of Customer to Customer
Electronic Complex Executions during the first five trading days in
August 2014 only, that activity will apply to that any potential
rebate for August 2014. As proposed, Customer to Customer Electronic
Complex Executions from August 8, 2014 forward will not apply to any
potential rebate.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the provisions of Section 6(b) \6\ of the Act, in general, and
Section 6(b)(4) and (5) \7\ of the Act, in particular, in that it is
designed to provide for the equitable allocation of reasonable dues,
fees, and other charges among its members and other persons using its
facilities and does not unfairly discriminate between customers,
issuers, brokers, or dealers.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78f(b).
\7\ 15 U.S.C. 78f(b)(4) and (5).
---------------------------------------------------------------------------
The Exchange believes that the proposal to exclude certain activity
from counting towards or earning the rebate paid under the existing
Customer Electronic Complex Order ADV Tiers is reasonable, equitable
and not unfairly discriminatory for the following
[[Page 50726]]
reasons. First, the specific type of activity being excluded does not
generate transaction fee revenue for the Exchange as Customers are
charge a rate of $0.00 per contract. As a result, the Customers who are
engaging in the activity--Customer to Customer Electronic Complex Order
executions--are not being charged transaction fees. The Exchange
believes it is reasonable, equitable and not unfairly discriminatory to
refrain from paying a rebate for activity that is already free for the
participants involved. The Exchange also believes that the proposal is
reasonable, equitable, and not unfairly discriminatory because it
applies to all Customers equally. Finally, because the rebate only
applies to Customer activity, the elimination of the rebate as proposed
puts Customers on the same competitive footing for the excluded orders
as other market participants, and therefore is reasonable, equitable
and not unfairly discriminatory.
With respect to the proposed fee being applicable to the balance of
August 2014, the Exchange believes the fee is reasonable because
Customers are on notice of the proposed fee and the rebate would be
based only on the volume executed during the remaining trading days of
August.
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 not necessary or appropriate in
furtherance of the purposes of the Act. The Exchange believes the
proposed fee change is reasonably designed to be fair and equitable,
and therefore, will not unduly burden any particular group of market
participants trading on the Exchange vis-[agrave]-vis another group.
The Exchange notes that the rebate only applies to Customers and
therefore the elimination of the rebate in the described situation puts
Customers on the same competitive footing as other market participants.
As such, no market participant would be entitled to a credit for these
types of transactions. As noted above, the proposed fee change applies
equally to all Customers, thus the proposed fee change does not pose an
undue burden among Customers. The Exchange does not believe that the
proposed rule change will impose any burden on intermarket competition
that is not necessary or appropriate in furtherance of the purposes of
the Act because the proposed change only applies to trading on the
Exchange.
The Exchange operates in a highly competitive market, comprised of
many options exchanges, in which market participants can easily and
readily direct order flow to competing venues if they deem fee levels
at a particular venue to be excessive or rebates to be inadequate.
Accordingly, the fees that are assessed and the rebates paid by the
Exchange described in the above proposal are influenced by these robust
market forces and therefore must remain competitive with fees charged
and rebates paid by other venues and therefore must continue to be
reasonable and equitably allocated to those ATP Holders that opt to
direct orders to the Exchange rather than competing venues.
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.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
At any time within 60 days of the filing of such proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings under
Section 19(b)(2)(B) \10\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78s(b)(2)(B).
---------------------------------------------------------------------------
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the 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 (http://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-NYSEMKT-2014-67 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-NYSEMKT-2014-67. 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 (http://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 such filing also will be available
for inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-NYSEMKT-2014-67, and should
be submitted on or before September 15, 2014.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
---------------------------------------------------------------------------
\11\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-20081 Filed 8-22-14; 8:45 am]
BILLING CODE 8011-01-P
