Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing of Proposed Rule Change Amending the NYSE Amex Options Fee Schedule To Add a Service Fee for Certain Post Trade Adjustments Performed by the Exchange To Be Effective December 1, 2014, 67496-67498 [2014-26843]

Download as PDF 67496 Federal Register / Vol. 79, No. 219 / Thursday, November 13, 2014 / Notices market participants. The Exchange believes that ensuring the proper rule references in PSX Rule 3315 will promote market participants’ understanding of the rule and its administration. B. Self-Regulatory Organization’s Statement on Burden on Competition Phlx does not believe that the proposed rule change will result in any burden on competition that is not necessary or appropriate in furtherance of purposes of the Act. The Exchange believes that while rule clarity is generally pro-competitive, the act of clarifying and conforming the two nonsubstantive typographical errors should have little, if any, impact on competition. C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others No written comments were either solicited or received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the proposed rule change does not: (i) significantly affect the protection of investors or the public interest; (ii) impose any significant burden on competition; and (iii) become operative for 30 days from the date on which it was filed, or such shorter time as the Commission may designate, it has become effective pursuant to Section 19(b)(3)(A)of the Act 7 and of Rule 19b– 4(f)(6) thereunder.8 A proposed rule change filed under Rule 19b–4(f)(6) 9 normally does not become operative prior to 30 days after the date of filing. However, pursuant to Rule 19b–4(f)(6)(iii),10 the commission may designate a shorter time if such action is consistent with the protection of investors and the public interest. The Exchange has asked the Commission to waive the 30-day operative delay. The Commission believes that waiving the 30-day operative delay could eliminate confusion that may exist if an operative delay was applied to the typographical errors, and believes that waiving the 30day operative delay is consistent with the protection of investors and the 7 15 U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(6). In addition, Rule 19b– 4(f)(6) requires a self-regulatory organization to give the Commission written notice of its intent to file the proposed rule change at least five business days prior to the date of filing of the proposed rule change, or such shorter time as designated by the Commission. The Exchange has satisfied this requirement. 9 17 CFR 240.19b–4(f)(6). 10 17 CFR 240.19b–4(f)(6)(iii). tkelley on DSK3SPTVN1PROD with NOTICES 8 17 VerDate Sep<11>2014 17:16 Nov 12, 2014 Jkt 235001 public interest.11 Therefore, the Commission hereby waives the 30-day operative delay and designates the proposal operative upon filing. At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is: (i) necessary or appropriate in the public interest; (ii) for the protection of investors; or (iii) otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings to determine whether the proposed rule 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– PHLX–2014–67 on the subject line. Paper Comments • Send paper comments in triplicate to Brent J. Fields, Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549–1090. All submissions should refer to File Number SR–PHLX–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 (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., 11 For purposes only of waiving the 30-day operative delay, the Commission has considered the proposed rule’s impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). PO 00000 Frm 00085 Fmt 4703 Sfmt 4703 Washington, DC 20549, on official business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of the filing also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR–PHLX– 2014–67 and should be submitted on or before December 4, 2014. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.12 Kevin M. O’Neill, Deputy Secretary. [FR Doc. 2014–26810 Filed 11–12–14; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–73542; File No. SR– NYSEMKT–2014–87] Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing of Proposed Rule Change Amending the NYSE Amex Options Fee Schedule To Add a Service Fee for Certain Post Trade Adjustments Performed by the Exchange To Be Effective December 1, 2014 November 6, 2014. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’),1 and Rule 19b–4 thereunder,2 notice is hereby given that on October 28, 2014, NYSE MKT LLC (the ‘‘Exchange’’ or ‘‘NYSE MKT’’) filed with the Securities and Exchange Commission (the ‘‘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 proposes to amend the NYSE Amex Options Fee Schedule (‘‘Fee Schedule’’) to add a service fee for certain post-trade adjustments performed by the Exchange. The Exchange proposes to implement the fee 12 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 E:\FR\FM\13NON1.SGM 13NON1 Federal Register / Vol. 79, No. 219 / Thursday, November 13, 2014 / Notices change effective December 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 tkelley on DSK3SPTVN1PROD with NOTICES 1. Purpose The Exchange proposes to amend the Fee Schedule to add a service fee for certain post-trade adjustments performed by the Exchange (the ‘‘Service Fee’’). The Exchange proposes to implement the Service Fee effective December 1, 2014. As described below, the proposed Service Fee would apply to certain post-trade adjustments performed by Exchange staff. The purpose of the proposed Service Fee is to ensure a fair and reasonable use of Exchange resources by allowing the Exchange to recoup for valuable employee time and resources expended on these post-trade adjustments that may also be self-executed by ATP Holders. In addition, the Exchange believes that the proposed Service Fee would incentivize ATP Holders to process their own post-trade adjustments going forward. In an effort to conserve Exchange resources, the Exchange has provided ATP Holders with the functionality to perform certain of their own post-trade adjustments. Specifically, ATP Holders may perform post-trade adjustments on their side of the trade that do not affect the contractual terms of a transaction. For example, ATP Holders may currently make the following noncontractual post-trade adjustments without Exchange interaction: changing the position indicator (e.g., from Open to Close or Close to Open); adding or removing Clearing Member Trade Agreement (‘‘CMTA’’) information; allocating trades (e.g., adding multiple VerDate Sep<11>2014 17:16 Nov 12, 2014 Jkt 235001 67497 executing domains or ‘‘give-ups’’); changing the clearing account type (e.g., Customer, Firm, Market Maker) and modifying the optional data field, which may be used by ATP Holders for their own internal back-office processing (collectively, the ‘‘Post-Trade Adjustments’’). Notwithstanding the availability of functionality for ATP Holders to perform this function themselves, ATP Holders still send the Exchange a significant number of requests, on a daily basis, to perform these straightforward Post-Trade Adjustments on the ATP Holders’ behalf. The Exchange uses its best efforts to respond to these requests by ATP Holders in a timely manner. While the Exchange is committed to delivering a certain level of customer service to its ATP Holders, it believes that performing the PostTrade Adjustments free of charge results in the diversion of valuable Exchange time and resources in a manner that is not a [sic] fair and equitable to either the Exchange or, ultimately the ATP Holders. Thus, to help offset the costs of having Exchange staff process PostTrade Adjustments on behalf of ATP Holders, the Exchange is proposing a $5.00 Service Fee, per trade adjusted. The Post-Trade Adjustments that would be subject to the proposed Service Fee would be only those Post-Trade Adjustments that do not affect the contractual terms of a transaction and that are performed by the Exchange on behalf of ATP Holders when the ATP Holders could otherwise enter the PostTrade Adjustments on their own behalf.3 The Exchange notes that if an outage or malfunction of an Exchange system makes it infeasible for ATP Holders to enter Post-Trade Adjustments on their own behalf, the Exchange would not assess any Service Fees to process Post-Trade Adjustments on behalf of ATP Holders. The $5.00 Service Fee would apply to each trade adjusted, not to each noncontractual change that the Exchange is requested to make to a given trade.4 For example, if, for a given trade, an ATP Holder requested that the Exchange change both the position indicator from open to close and at the same time change the CMTA information, the 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with Section 6(b) of the Act,6 in general, and furthers the objectives of Sections 6(b)(4) and (5) of the Act,7 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 Service Fee is reasonable, equitable and not unfairly discriminatory because it is designed to ensure a fair and reasonable use of Exchange resources by allowing the Exchange to recoup for valuable employee time and resources expended on the Post-Trade Adjustments. The Exchange believes that imposing this $5.00 fee per trade adjusted would reasonably compensate the Exchange for the resources diverted to the Post-Trade Adjustments (i.e., cover employee and overhead expenses).8 Moreover, the Exchange believes that the Service Fee would promote a fair 3 Should the Exchange propose to charge ATP Holders for any additional post-trade adjustments made on behalf of ATP Holders, other than noncontractual changes that ATP Holders may do on their own behalf, the Exchange would only do so pursuant to a separate fee filing. 4 The Exchange proposes to add this Service Fee to the Fee Schedule immediately following ‘‘Report Fees’’ under a new section entitled ‘‘NYSE AMEX OPTIONS: SERVICE FEES.’’ 5 See NYSE Amex Options Trader Update, available here, https://www1.nyse.com/pdfs/NYSE_ Amex_Options_Service_Fee_Post_Trade_ Adjustments_10_13_14.pdf. 6 15 U.S.C. 78f(b). 7 15 U.S.C. 78f(b)(4) and (5). 8 As noted above, the Exchange would offer an introductory rate of $1.00 per trade adjusted for the first three months that the Service Fee is operational. PO 00000 Frm 00086 Fmt 4703 Sfmt 4703 Service Fee would still be $5.00, because the changes were for the same trade. The Exchange believes that the $5.00 Service Fee would reasonably compensate the Exchange for the resources diverted to the Post-Trade Adjustments (i.e., cover employee and overhead expenses). The Exchange also believes that the $5.00 Service Fee may operate as an effective disincentive for ATP Holders that have relied on the Exchange to perform these services free of charge and believes these ATP Holders may take these tasks in-house given the newly introduced costs. The Exchange is proposing to discount the $5.00 fee to $1.00 per trade adjusted for the first three months that the Service Fee is operative (i.e., December 1, 2014—February 28, 2015). The Exchange believes this temporary discount is reasonable as it would provide ATP Holders time to adjust to the Exchange’s new policy. To further provide ATP Holders notice of this proposed change, the Exchange previously announced by Trader Update the specific type of Post-Trade Adjustments that would be subject to the Service Fee.5 E:\FR\FM\13NON1.SGM 13NON1 67498 Federal Register / Vol. 79, No. 219 / Thursday, November 13, 2014 / Notices and orderly market and protect investors and the public interest because the Service Fee may result in a more efficient use of Exchange resources, which would benefit all market participants. The Exchange believes that the Service Fee is reasonable, equitable and not unfairly discriminatory because ATP Holders would have the option, as they do today, to perform the Post-Trade Adjustments themselves and the Service Fee would only apply if ATP Holders elected to rely on the Exchange to perform these adjustments for them. Moreover, the Service Fee would apply equally to all market participants who opt to rely on the Exchange to perform the Post-Trade Adjustments. In fact, the Exchange believes that the proposed Service Fee would incentivize ATP Holders to process their own Post-Trade Adjustments going forward. 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. tkelley on DSK3SPTVN1PROD with NOTICES B. Self-Regulatory Organization’s Statement on Burden on Competition In accordance with Section 6(b)(8) of the Act,9 the Exchange does not believe that the proposed rule change would impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. The proposed rule Service Fee is not intended to address any competitive issues among exchanges or ATP Holders but rather to more efficiently use the Exchange’s employee time and resources, which may ultimately benefit ATP Holders. The Exchange notes that it operates in a highly competitive market in which market participants can readily favor competing venues, and imposing the Service Fee may enable the Exchange to improve efficiency and ensure the fair and reasonable use of Exchange resources. In such an environment, the Exchange must continually review, and consider adjusting, its fees and credits to remain competitive with other exchanges. For the reasons described above, the Exchange believes that the proposed Service Fee reflects this competitive environment. 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) 10 of the Act and subparagraph (f)(2) of Rule 19b–4 11 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) 12 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– NYSEMKT–2014–87 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–2014–87. 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 U.S.C. 78f(b)(8). VerDate Sep<11>2014 17:16 Nov 12, 2014 Jkt 235001 For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.13 Kevin M. O’ Neill, Deputy Secretary. [FR Doc. 2014–26843 Filed 11–12–14; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–73545; File No. SR–Phlx– 2014–54] Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of Filing of Amendment No. 1 and Order Granting Accelerated Approval of a Proposed Rule Change, as Modified by Amendment No. 1, To Add a New Complex Order Process Called Legging Orders November 6, 2014. I. Introduction On September 10, 2014, NASDAQ OMX PHLX LLC (‘‘Phlx’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission (the ‘‘Commission’’), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the ‘‘Act’’) 1 and Rule 19b–4 thereunder,2 a proposed rule change to amend its rules governing the trading of complex orders on the Exchange to adopt ‘‘legging orders.’’ The proposed rule change was published for comment in the Federal Register on September 25, 2014.3 The Commission received no 13 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 See Securities Exchange Act Release No. 73152 (September 19, 2014), 79 FR 57632. 1 15 10 15 U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(2). 12 15 U.S.C. 78s(b)(2)(B). 11 17 9 15 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 offices 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–2014–87, and should be submitted on or before December 4, 2014. PO 00000 Frm 00087 Fmt 4703 Sfmt 4703 E:\FR\FM\13NON1.SGM 13NON1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 79, Number 219 (Thursday, November 13, 2014)]
[Notices]
[Pages 67496-67498]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-26843]

-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-73542; File No. SR-NYSEMKT-2014-87]

Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing of
Proposed Rule Change Amending the NYSE Amex Options Fee Schedule To Add
a Service Fee for Certain Post Trade Adjustments Performed by the
Exchange To Be Effective December 1, 2014

November 6, 2014.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on October 28, 2014, NYSE MKT LLC (the ``Exchange'' or ``NYSE MKT'')
filed with the Securities and Exchange Commission (the ``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.
---------------------------------------------------------------------------

\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

The Exchange proposes to amend the NYSE Amex Options Fee Schedule
(``Fee Schedule'') to add a service fee for certain post-trade
adjustments performed by the Exchange. The Exchange proposes to
implement the fee

[[Page 67497]]

change effective December 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 the Fee Schedule to add a service
fee for certain post-trade adjustments performed by the Exchange (the
``Service Fee''). The Exchange proposes to implement the Service Fee
effective December 1, 2014. As described below, the proposed Service
Fee would apply to certain post-trade adjustments performed by Exchange
staff. The purpose of the proposed Service Fee is to ensure a fair and
reasonable use of Exchange resources by allowing the Exchange to recoup
for valuable employee time and resources expended on these post-trade
adjustments that may also be self-executed by ATP Holders. In addition,
the Exchange believes that the proposed Service Fee would incentivize
ATP Holders to process their own post-trade adjustments going forward.
In an effort to conserve Exchange resources, the Exchange has
provided ATP Holders with the functionality to perform certain of their
own post-trade adjustments. Specifically, ATP Holders may perform post-
trade adjustments on their side of the trade that do not affect the
contractual terms of a transaction. For example, ATP Holders may
currently make the following non-contractual post-trade adjustments
without Exchange interaction: changing the position indicator (e.g.,
from Open to Close or Close to Open); adding or removing Clearing
Member Trade Agreement (``CMTA'') information; allocating trades (e.g.,
adding multiple executing domains or ``give-ups''); changing the
clearing account type (e.g., Customer, Firm, Market Maker) and
modifying the optional data field, which may be used by ATP Holders for
their own internal back-office processing (collectively, the ``Post-
Trade Adjustments'').
Notwithstanding the availability of functionality for ATP Holders
to perform this function themselves, ATP Holders still send the
Exchange a significant number of requests, on a daily basis, to perform
these straightforward Post-Trade Adjustments on the ATP Holders'
behalf. The Exchange uses its best efforts to respond to these requests
by ATP Holders in a timely manner. While the Exchange is committed to
delivering a certain level of customer service to its ATP Holders, it
believes that performing the Post-Trade Adjustments free of charge
results in the diversion of valuable Exchange time and resources in a
manner that is not a [sic] fair and equitable to either the Exchange
or, ultimately the ATP Holders.
Thus, to help offset the costs of having Exchange staff process
Post-Trade Adjustments on behalf of ATP Holders, the Exchange is
proposing a $5.00 Service Fee, per trade adjusted. The Post-Trade
Adjustments that would be subject to the proposed Service Fee would be
only those Post-Trade Adjustments that do not affect the contractual
terms of a transaction and that are performed by the Exchange on behalf
of ATP Holders when the ATP Holders could otherwise enter the Post-
Trade Adjustments on their own behalf.\3\ The Exchange notes that if an
outage or malfunction of an Exchange system makes it infeasible for ATP
Holders to enter Post-Trade Adjustments on their own behalf, the
Exchange would not assess any Service Fees to process Post-Trade
Adjustments on behalf of ATP Holders.
---------------------------------------------------------------------------

\3\ Should the Exchange propose to charge ATP Holders for any
additional post-trade adjustments made on behalf of ATP Holders,
other than non-contractual changes that ATP Holders may do on their
own behalf, the Exchange would only do so pursuant to a separate fee
filing.
---------------------------------------------------------------------------

The $5.00 Service Fee would apply to each trade adjusted, not to
each non-contractual change that the Exchange is requested to make to a
given trade.\4\ For example, if, for a given trade, an ATP Holder
requested that the Exchange change both the position indicator from
open to close and at the same time change the CMTA information, the
Service Fee would still be $5.00, because the changes were for the same
trade. The Exchange believes that the $5.00 Service Fee would
reasonably compensate the Exchange for the resources diverted to the
Post-Trade Adjustments (i.e., cover employee and overhead expenses).
The Exchange also believes that the $5.00 Service Fee may operate as an
effective disincentive for ATP Holders that have relied on the Exchange
to perform these services free of charge and believes these ATP Holders
may take these tasks in-house given the newly introduced costs.
---------------------------------------------------------------------------

\4\ The Exchange proposes to add this Service Fee to the Fee
Schedule immediately following ``Report Fees'' under a new section
entitled ``NYSE AMEX OPTIONS: SERVICE FEES.''
---------------------------------------------------------------------------

The Exchange is proposing to discount the $5.00 fee to $1.00 per
trade adjusted for the first three months that the Service Fee is
operative (i.e., December 1, 2014--February 28, 2015). The Exchange
believes this temporary discount is reasonable as it would provide ATP
Holders time to adjust to the Exchange's new policy. To further provide
ATP Holders notice of this proposed change, the Exchange previously
announced by Trader Update the specific type of Post-Trade Adjustments
that would be subject to the Service Fee.\5\
---------------------------------------------------------------------------

\5\ See NYSE Amex Options Trader Update, available here, https://www1.nyse.com/pdfs/NYSE_Amex_Options_Service_Fee_Post_Trade_Adjustments_10_13_14.pdf.
---------------------------------------------------------------------------

2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\6\ in general, and furthers the
objectives of Sections 6(b)(4) and (5) of the Act,\7\ 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.
---------------------------------------------------------------------------

\6\ 15 U.S.C. 78f(b).
\7\ 15 U.S.C. 78f(b)(4) and (5).
---------------------------------------------------------------------------

The Exchange believes that the Service Fee is reasonable, equitable
and not unfairly discriminatory because it is designed to ensure a fair
and reasonable use of Exchange resources by allowing the Exchange to
recoup for valuable employee time and resources expended on the Post-
Trade Adjustments. The Exchange believes that imposing this $5.00 fee
per trade adjusted would reasonably compensate the Exchange for the
resources diverted to the Post-Trade Adjustments (i.e., cover employee
and overhead expenses).\8\
---------------------------------------------------------------------------

\8\ As noted above, the Exchange would offer an introductory
rate of $1.00 per trade adjusted for the first three months that the
Service Fee is operational.
---------------------------------------------------------------------------

Moreover, the Exchange believes that the Service Fee would promote
a fair

[[Page 67498]]

and orderly market and protect investors and the public interest
because the Service Fee may result in a more efficient use of Exchange
resources, which would benefit all market participants.
The Exchange believes that the Service Fee is reasonable, equitable
and not unfairly discriminatory because ATP Holders would have the
option, as they do today, to perform the Post-Trade Adjustments
themselves and the Service Fee would only apply if ATP Holders elected
to rely on the Exchange to perform these adjustments for them.
Moreover, the Service Fee would apply equally to all market
participants who opt to rely on the Exchange to perform the Post-Trade
Adjustments. In fact, the Exchange believes that the proposed Service
Fee would incentivize ATP Holders to process their own Post-Trade
Adjustments going forward.
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.

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

In accordance with Section 6(b)(8) of the Act,\9\ the Exchange does
not believe that the proposed rule change would impose any burden on
competition that is not necessary or appropriate in furtherance of the
purposes of the Act. The proposed rule Service Fee is not intended to
address any competitive issues among exchanges or ATP Holders but
rather to more efficiently use the Exchange's employee time and
resources, which may ultimately benefit ATP Holders.
---------------------------------------------------------------------------

\9\ 15 U.S.C. 78f(b)(8).
---------------------------------------------------------------------------

The Exchange notes that it operates in a highly competitive market
in which market participants can readily favor competing venues, and
imposing the Service Fee may enable the Exchange to improve efficiency
and ensure the fair and reasonable use of Exchange resources. In such
an environment, the Exchange must continually review, and consider
adjusting, its fees and credits to remain competitive with other
exchanges. For the reasons described above, the Exchange believes that
the proposed Service Fee reflects this competitive environment.

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) \10\ of the Act and subparagraph (f)(2) of Rule
19b-4 \11\ thereunder, because it establishes a due, fee, or other
charge imposed by the Exchange.
---------------------------------------------------------------------------

\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 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) \12\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
---------------------------------------------------------------------------

\12\ 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 (https://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-NYSEMKT-2014-87 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-2014-87. 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 such filing also will be available
for inspection and copying at the principal offices 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-
87, and should be submitted on or before December 4, 2014.

For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
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\13\ 17 CFR 200.30-3(a)(12).
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Kevin M. O' Neill,
Deputy Secretary.
[FR Doc. 2014-26843 Filed 11-12-14; 8:45 am]
BILLING CODE 8011-01-P

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