Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Modifying the NYSE Amex Options Fee Schedule Relating to the Amex Customer Engagement Program, 22759-22761 [2015-09428]
Download as PDF
<![CDATA[
Federal Register / Vol. 80, No. 78 / Thursday, April 23, 2015 / Notices
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 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:
mstockstill on DSK4VPTVN1PROD 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–
MIAX–2015–27 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–MIAX–2015–27. 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
VerDate Sep<11>2014
18:53 Apr 22, 2015
Jkt 235001
available publicly. All submissions
should refer to File Number SR–MIAX–
2015–27, and should be submitted on or
May 14, 2015.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Brent J. Fields,
Secretary.
[FR Doc. 2015–09426 Filed 4–22–15; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–74760; File No. SR–
NYSEMKT–2015–29]
Self-Regulatory Organizations; NYSE
MKT LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Modifying the NYSE
Amex Options Fee Schedule Relating
to the Amex Customer Engagement
Program
April 17, 2015.
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 April 10,
2015, NYSE MKT LLC (the ‘‘Exchange’’
or ‘‘NYSE MKT’’) filed with the
Securities and Exchange Commission
(‘‘SEC’’ or ‘‘Commission’’) the 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 modify the
NYSE Amex Options Fee Schedule
(‘‘Fee Schedule’’) related to the Amex
Customer Engagement (‘‘ACE’’)
Program. The Exchange proposes to
implement the fee change effective
April 10, 2015. 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,
13 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
PO 00000
Frm 00059
Fmt 4703
Sfmt 4703
22759
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 purpose of this filing is to amend
existing tiers and add a new tier to the
ACE Program.
Section I.E. of the Fee Schedule
describes the ACE Program,3 which
currently features four tiers expressed as
a percentage of total industry Customer
equity and ETF option average daily
volume (‘‘ADV’’).4 Order Flow Providers
(‘‘OFPs’’) receive per contract credits
solely for Electronic Customer volume
that the OFP, as agent, submits to the
Exchange.5 The ACE Program offers the
following two methods for OFPs to
receive credits:
1. By calculating, on a monthly basis,
the average daily Customer contract
volume an OFP executes Electronically
on the Exchange as a percentage of total
average daily industry Customer equity
and ETF options volume or 6;
2. By calculating, on a monthly basis,
the average daily contract volume an
OFP executes Electronically in all
participant types (i.e., Customer, Firm,
Broker-Dealer, NYSE Amex Options
Market Maker, Non-NYSE Amex
Options Market Maker, and Professional
Customer) on the Exchange, as a
3 See NYSE Amex Options Fee Schedule,
available here, https://www.theice.com/publicdocs/
nyse/markets/amex-options/NYSE_Amex_Options_
Fee_Schedule.pdf.
4 In calculating ADV, the Exchange utilizes
monthly reports published by the OCC for equity
options and ETF options that show cleared volume
by account type. See OCC Monthly Statistics
Reports, available here, https://www.theocc.com/
webapps/monthly-volume-reports (including for
equity options and ETF options volume, subtotaled
by exchange, along with OCC total industry
volume). The Exchange calculates the total OCC
volume for equity and ETF options that clear in the
Customer account type and divide this total by the
number of trading days for that month (i.e., any day
the Exchange is open for business). For example, in
a month having 21 trading days where there were
252,000,000 equity option and ETF option contracts
that cleared in the Customer account type, the
calculated ADV would be 12,000,000 (252,000,000/
21= 12,000,000).
5 Electronic Customer volume is volume executed
electronically through the Exchange System, on
behalf of an individual or organization that is not
a Broker-Dealer and who does not meet the
definition of a Professional Customer.
6 See supra n. 4
E:\FR\FM\23APN1.SGM
23APN1
22760
Federal Register / Vol. 80, No. 78 / Thursday, April 23, 2015 / Notices
associated with the highest tier
achieved, retroactive to the first contract
traded each month, regardless of which
of the two calculation methods the OFP
qualifies under.8
The Exchange proposes to:
(a) Lower the thresholds required to
reach each tier;
(b) introduce an additional tier, which
would be an intermediate tier between
current tiers 3 and 4; and
percentage of total average daily
industry Customer equity and ETF
option volume,7 with the further
requirement that a specified percentage
of the minimum volume required to
qualify for the Tier must be Customer
volume.
Upon reaching a higher tier, an OFP
would receive for all eligible Customer
volume the per contract credit
ACE Program—Standard options
Tier
1 .......
Credits payable on customer volume only
Total electronic ADV (of which
20% or greater of the minimum
qualifying volume for each tier
must be customer) as a % of industry customer equity and ETF
options ADV
Customer electronic
ADV as a % of industry customer equity
and ETF options
ADV
(c) increase the credits available for
the highest tier.
Specifically, the Exchange proposes to
modify the ACE Program tiers as
illustrated in the table below, with
proposed additions appearing
underscored and proposed deletions
appearing in brackets:
Customer volume
credits
1 Year enhanced
customer volume
credits
3 Year enhanced
customer volume
credits
0.00% to 0.60%
[0.75%].
>0.60% [0.75%] to
0.80% [1.00%].
>0.80% [1.00%] to
1.25% [2.00%].
OR
N/A .............................................
$0.00
$0.00
$0.00
................
N/A .............................................
(0.13)
(0.13)
(0.13)
................
(0.14)
(0.16)
(0.18)
4 .......
>1.25 to 1.75% .........
................
(0.17)
(0.19)
(0.21)
5 [4] ..
>1.75 [2.00%] ...........
................
1.50% to 2.50% [3.50%] of
which 20% or greater of
1.50% must be Customer.
>2.50% to 3.50% of which 20%
or greater of 2.50% must be
Customer.
>3.50% of which 20% or greater
of 3.5% must be Customer.
(0.19) [(0.14)]
(0.21) [(0.16)]
(0.23) [(0.20)]
2 .......
3 .......
Overall, the Exchange believes that
the proposed changes to the ACE
Program are reasonable, equitable and
not unfairly discriminatory because the
credits offered are based on the amount
of business transacted on the Exchange.
As proposed the ACE Program
continues to enable an OFP to earn
enhanced credits if the OFP has an
Affiliated NYSE Amex Options Market
Maker (i.e., the entities share ‘‘70%
common ownership’’ 11) that has
committed to either of the proposed
2. Statutory Basis
Prepayment Programs, per Section I.D.
The Exchange believes that the
of the Fee Schedule (each an ‘‘Affiliated
proposed rule change is consistent with OFP’’). As the Exchange explained in
Section 6(b) of the Act,9 in general, and
further detail when it introduced the
ACE Program in January 2015, it is not
furthers the objectives of Sections
6(b)(4) and (5) of the Act,10 in particular, unreasonable, inequitable or unfairly
discriminatory to offer to offer [sic]
because it provides for the equitable
Affiliated OFPs enhanced discounts or
allocation of reasonable dues, fees, and
credits for several reasons.12 In short,
other charges among its members,
issuers and other persons using its
the Exchange believes that offering the
facilities and does not unfairly
ACE Program enhanced credits
discriminate between customers,
recognizes that such Affiliated OFPs
issuers, brokers or dealers.
have a shared economic interest with its
The proposed amendments to the
ACE Program are designed to make each
of the tiers more achievable, through
reduced volume requirements, while
enhancing the rebates. When combined,
the Exchange believes the proposed
changes to the ACE Program would
attract more volume and liquidity to the
Exchange, which would benefit all
Exchange participants through
increased opportunities to trade as well
as enhancing price discovery.
mstockstill on DSK4VPTVN1PROD with NOTICES
7 Id.
8 In
the event that an OFP is eligible for credits
under both calculation methods, the OFP would
benefit from whichever criterion results in the
highest per contract credit for all the OFP’s eligible
ADV. In calculating an OFP’s Electronic volume,
certain volumes are excluded (e.g., QCC trades). See
Fee Schedule (Section I.E.), supra n. 3.
9 15 U.S.C. 78f(b).
10 15 U.S.C. 78f(b)(4) and (5).
VerDate Sep<11>2014
18:53 Apr 22, 2015
Jkt 235001
11 See Fee Schedule, Key Terms and Definitions,
supra n. 3 (defining Affiliates as ‘‘a person that
directly or indirectly through one or more
intermediaries, has a 70% common ownership
with, the person specified’’).
12 See Securities Exchange Act Release No. 74086
(January 16, 2015), 80 FR 3701, 3711–12 (January
23, 2015) (SR–NYSEMKT–2015–04) (Notice of
Filing of fee change to adopt the ACE Program).
13 See, e.g., Rule 925.1NY(c) (setting forth
requirement that Marker Makers maintain active
PO 00000
Frm 00060
Fmt 4703
Sfmt 4703
affiliated Market Maker, which is
subject to heightened obligations and
costs.13 By contrast, non-Affiliated OFPs
do not share economic interests with a
Market Maker that is subject to higher
obligations and costs. In addition, each
non-Affiliated OFP has the opportunity
to establish such an affiliation by
several means, including but not limited
to, a business combination (e.g., merger
or acquisition) or the establishment of
their own market making operation,
which as a Broker-Dealer, each OFP has
the potential to establish.
In addition, the Exchange believes
that the proposed amendments to the
ACE Program are reasonable, equitable
and not unfairly discriminatory because
they would enhance the incentives to
OFPs to transact Customer orders on the
Exchange, which would benefit all
market participants by providing more
trading opportunities and tighter
spreads, even to those market
participants that do not participate in
the ACE Program. Additionally, the
two-sided markets in the classes in which they are
appointed, and must meet certain minimum
quoting requirements). See also Fee Schedule,
Sections III.A., C. and D., supra n. 3 (setting forth
higher fixed costs imposed on Marker Makers that
are not assessed upon other market participants,
including relatively more expensive ATP fees
applicable to Market Makers, Rights Fees, and
Premium Product Fees).
E:\FR\FM\23APN1.SGM
23APN1
Federal Register / Vol. 80, No. 78 / Thursday, April 23, 2015 / Notices
Exchange believes the proposed changes
to the ACE Program are consistent with
the Act because they may attract greater
volume and liquidity to the Exchange,
which would benefit all market
participants by providing tighter
quoting and better prices, all of which
perfects the mechanism for a free and
open market and national market
system.
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,14 the Exchange does not believe
that the proposed rule change will
impose any burden on competition that
is not necessary or appropriate in
furtherance of the purposes of the Act.
The Exchange believes the proposed
amendments to the ACE Program are
pro-competitive as the proposed
reduced volume thresholds and
increased rebates may encourage OFPs
to direct Customer order flow to the
Exchange and any resulting increase in
volume and liquidity to the Exchange
would benefit all of Exchange
participants through increased
opportunities to trade as well as
enhancing price discovery.
The Exchange notes that it operates in
a highly competitive market in which
market participants can readily favor
competing venues. 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
rule change 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.
mstockstill on DSK4VPTVN1PROD with NOTICES
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) 15 of the Act and
subparagraph (f)(2) of Rule 19b–4 16
thereunder, because it establishes a due,
14 15
U.S.C. 78f(b)(8).
U.S.C. 78s(b)(3)(A).
16 17 CFR 240.19b–4(f)(2).
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) 17 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–2015–29 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–2015–29. 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–2015–29, and should be
submitted on or before May 14, 2015.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.18
Brent J. Fields,
Secretary.
[FR Doc. 2015–09428 Filed 4–22–15; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[File No. 500–1]
ForceField Energy Inc.; Order of
Suspension of Trading
April 21, 2015.
It appears to the Securities and
Exchange Commission that there is a
lack of current and accurate information
concerning the securities of ForceField
Energy Inc. (‘‘FNRG’’) because of
concerns about the adequacy and
accuracy of information available to
investors concerning the funding of
recent articles and promotions touting
FNRG, including for example in articles
published on December 9, 2014 and
February 26, 2015. Questions have also
arisen concerning potential
manipulative activity of FNRG’s stock,
including transactions between
February 25 and April 2, 2015 and the
funding of those transactions. FNRG is
a Nevada corporation with its principal
office in New York, New York. It is
listed on NASDAQ under the symbol
FNRG.
The Commission is of the opinion that
the public interest and the protection of
investors require a suspension of trading
in the securities of the above-listed
company.
Therefore, it is ordered, pursuant to
Section 12(k) of the Securities Exchange
Act of 1934, that trading in the
securities of the above-listed company is
suspended for the period from 9:30 a.m.
EDT on April 21, 2015 through 11:59
p.m. EDT, on May 4, 2015.
15 15
VerDate Sep<11>2014
18:53 Apr 22, 2015
17 15
Jkt 235001
PO 00000
U.S.C. 78s(b)(2)(B).
Frm 00061
Fmt 4703
18 17
Sfmt 4703
22761
E:\FR\FM\23APN1.SGM
CFR 200.30–3(a)(12).
23APN1
]]>Agencies
[Federal Register Volume 80, Number 78 (Thursday, April 23, 2015)]
[Notices]
[Pages 22759-22761]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-09428]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-74760; File No. SR-NYSEMKT-2015-29]
Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and
Immediate Effectiveness of Proposed Rule Change Modifying the NYSE Amex
Options Fee Schedule Relating to the Amex Customer Engagement Program
April 17, 2015.
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 April 10, 2015, NYSE MKT LLC (the ``Exchange'' or ``NYSE MKT'')
filed with the Securities and Exchange Commission (``SEC'' or
``Commission'') the 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 modify the NYSE Amex Options Fee Schedule
(``Fee Schedule'') related to the Amex Customer Engagement (``ACE'')
Program. The Exchange proposes to implement the fee change effective
April 10, 2015. 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 purpose of this filing is to amend existing tiers and add a new
tier to the ACE Program.
Section I.E. of the Fee Schedule describes the ACE Program,\3\
which currently features four tiers expressed as a percentage of total
industry Customer equity and ETF option average daily volume
(``ADV'').\4\ Order Flow Providers (``OFPs'') receive per contract
credits solely for Electronic Customer volume that the OFP, as agent,
submits to the Exchange.\5\ The ACE Program offers the following two
methods for OFPs to receive credits:
---------------------------------------------------------------------------
\3\ See NYSE Amex Options Fee Schedule, available here, https://www.theice.com/publicdocs/nyse/markets/amex-options/NYSE_Amex_Options_Fee_Schedule.pdf.
\4\ In calculating ADV, the Exchange utilizes monthly reports
published by the OCC for equity options and ETF options that show
cleared volume by account type. See OCC Monthly Statistics Reports,
available here, https://www.theocc.com/webapps/monthly-volume-reports
(including for equity options and ETF options volume, subtotaled by
exchange, along with OCC total industry volume). The Exchange
calculates the total OCC volume for equity and ETF options that
clear in the Customer account type and divide this total by the
number of trading days for that month (i.e., any day the Exchange is
open for business). For example, in a month having 21 trading days
where there were 252,000,000 equity option and ETF option contracts
that cleared in the Customer account type, the calculated ADV would
be 12,000,000 (252,000,000/21= 12,000,000).
\5\ Electronic Customer volume is volume executed electronically
through the Exchange System, on behalf of an individual or
organization that is not a Broker-Dealer and who does not meet the
definition of a Professional Customer.
---------------------------------------------------------------------------
1. By calculating, on a monthly basis, the average daily Customer
contract volume an OFP executes Electronically on the Exchange as a
percentage of total average daily industry Customer equity and ETF
options volume or \6\;
---------------------------------------------------------------------------
\6\ See supra n. 4
---------------------------------------------------------------------------
2. By calculating, on a monthly basis, the average daily contract
volume an OFP executes Electronically in all participant types (i.e.,
Customer, Firm, Broker-Dealer, NYSE Amex Options Market Maker, Non-NYSE
Amex Options Market Maker, and Professional Customer) on the Exchange,
as a
[[Page 22760]]
percentage of total average daily industry Customer equity and ETF
option volume,\7\ with the further requirement that a specified
percentage of the minimum volume required to qualify for the Tier must
be Customer volume.
---------------------------------------------------------------------------
\7\ Id.
---------------------------------------------------------------------------
Upon reaching a higher tier, an OFP would receive for all eligible
Customer volume the per contract credit associated with the highest
tier achieved, retroactive to the first contract traded each month,
regardless of which of the two calculation methods the OFP qualifies
under.\8\
---------------------------------------------------------------------------
\8\ In the event that an OFP is eligible for credits under both
calculation methods, the OFP would benefit from whichever criterion
results in the highest per contract credit for all the OFP's
eligible ADV. In calculating an OFP's Electronic volume, certain
volumes are excluded (e.g., QCC trades). See Fee Schedule (Section
I.E.), supra n. 3.
---------------------------------------------------------------------------
The Exchange proposes to:
(a) Lower the thresholds required to reach each tier;
(b) introduce an additional tier, which would be an intermediate
tier between current tiers 3 and 4; and
(c) increase the credits available for the highest tier.
Specifically, the Exchange proposes to modify the ACE Program tiers
as illustrated in the table below, with proposed additions appearing
underscored and proposed deletions appearing in brackets:
--------------------------------------------------------------------------------------------------------------------------------------------------------
ACE Program--Standard options Credits payable on customer volume only
----------------------------------------------------------------------------------------------------------------------------------
Total electronic ADV (of
which 20% or greater of the
Tier Customer electronic ADV as a minimum qualifying volume 1 Year enhanced 3 Year enhanced
% of industry customer for each tier must be Customer volume customer volume customer volume
equity and ETF options ADV customer) as a % of credits credits credits
industry customer equity
and ETF options ADV
--------------------------------------------------------------------------------------------------------------------------------------------------------
1.................... 0.00% to 0.60% [0.75%]...... OR N/A........................ $0.00 $0.00 $0.00
2.................... >0.60% [0.75%] to 0.80% .......... N/A........................ (0.13) (0.13) (0.13)
[1.00%].
3.................... >0.80% [1.00%] to 1.25% .......... 1.50% to 2.50% [3.50%] of (0.14) (0.16) (0.18)
[2.00%]. which 20% or greater of
1.50% must be Customer.
4.................... 1.25 to 1.75%.... .......... 2.50% to 3.50% (0.17) (0.19) (0.21)
of which 20% or greater of
2.50% must be Customer.
5 [4]................ >1.75 [2.00%]............... .......... >3.50% of which 20% or (0.19) [(0.14)] (0.21) [(0.16)] (0.23) [(0.20)]
greater of 3.5% must be
Customer.
--------------------------------------------------------------------------------------------------------------------------------------------------------
The proposed amendments to the ACE Program are designed to make
each of the tiers more achievable, through reduced volume requirements,
while enhancing the rebates. When combined, the Exchange believes the
proposed changes to the ACE Program would attract more volume and
liquidity to the Exchange, which would benefit all Exchange
participants through increased opportunities to trade as well as
enhancing price discovery.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\9\ in general, and furthers the
objectives of Sections 6(b)(4) and (5) of the Act,\10\ 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.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78f(b).
\10\ 15 U.S.C. 78f(b)(4) and (5).
---------------------------------------------------------------------------
Overall, the Exchange believes that the proposed changes to the ACE
Program are reasonable, equitable and not unfairly discriminatory
because the credits offered are based on the amount of business
transacted on the Exchange. As proposed the ACE Program continues to
enable an OFP to earn enhanced credits if the OFP has an Affiliated
NYSE Amex Options Market Maker (i.e., the entities share ``70% common
ownership'' \11\) that has committed to either of the proposed
Prepayment Programs, per Section I.D. of the Fee Schedule (each an
``Affiliated OFP''). As the Exchange explained in further detail when
it introduced the ACE Program in January 2015, it is not unreasonable,
inequitable or unfairly discriminatory to offer to offer [sic]
Affiliated OFPs enhanced discounts or credits for several reasons.\12\
In short, the Exchange believes that offering the ACE Program enhanced
credits recognizes that such Affiliated OFPs have a shared economic
interest with its affiliated Market Maker, which is subject to
heightened obligations and costs.\13\ By contrast, non-Affiliated OFPs
do not share economic interests with a Market Maker that is subject to
higher obligations and costs. In addition, each non-Affiliated OFP has
the opportunity to establish such an affiliation by several means,
including but not limited to, a business combination (e.g., merger or
acquisition) or the establishment of their own market making operation,
which as a Broker-Dealer, each OFP has the potential to establish.
---------------------------------------------------------------------------
\11\ See Fee Schedule, Key Terms and Definitions, supra n. 3
(defining Affiliates as ``a person that directly or indirectly
through one or more intermediaries, has a 70% common ownership with,
the person specified'').
\12\ See Securities Exchange Act Release No. 74086 (January 16,
2015), 80 FR 3701, 3711-12 (January 23, 2015) (SR-NYSEMKT-2015-04)
(Notice of Filing of fee change to adopt the ACE Program).
\13\ See, e.g., Rule 925.1NY(c) (setting forth requirement that
Marker Makers maintain active two-sided markets in the classes in
which they are appointed, and must meet certain minimum quoting
requirements). See also Fee Schedule, Sections III.A., C. and D.,
supra n. 3 (setting forth higher fixed costs imposed on Marker
Makers that are not assessed upon other market participants,
including relatively more expensive ATP fees applicable to Market
Makers, Rights Fees, and Premium Product Fees).
---------------------------------------------------------------------------
In addition, the Exchange believes that the proposed amendments to
the ACE Program are reasonable, equitable and not unfairly
discriminatory because they would enhance the incentives to OFPs to
transact Customer orders on the Exchange, which would benefit all
market participants by providing more trading opportunities and tighter
spreads, even to those market participants that do not participate in
the ACE Program. Additionally, the
[[Page 22761]]
Exchange believes the proposed changes to the ACE Program are
consistent with the Act because they may attract greater volume and
liquidity to the Exchange, which would benefit all market participants
by providing tighter quoting and better prices, all of which perfects
the mechanism for a free and open market and national market system.
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,\14\ the Exchange
does not believe that the proposed rule change will impose any burden
on competition that is not necessary or appropriate in furtherance of
the purposes of the Act. The Exchange believes the proposed amendments
to the ACE Program are pro-competitive as the proposed reduced volume
thresholds and increased rebates may encourage OFPs to direct Customer
order flow to the Exchange and any resulting increase in volume and
liquidity to the Exchange would benefit all of Exchange participants
through increased opportunities to trade as well as enhancing price
discovery.
---------------------------------------------------------------------------
\14\ 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. 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 rule change 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) \15\ of the Act and subparagraph (f)(2) of Rule
19b-4 \16\ thereunder, because it establishes a due, fee, or other
charge imposed by the Exchange.
---------------------------------------------------------------------------
\15\ 15 U.S.C. 78s(b)(3)(A).
\16\ 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) \17\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
---------------------------------------------------------------------------
\17\ 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-2015-29 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-2015-29. 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-2015-
29, and should be submitted on or before May 14, 2015.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\18\
---------------------------------------------------------------------------
\18\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Brent J. Fields,
Secretary.
[FR Doc. 2015-09428 Filed 4-22-15; 8:45 am]
BILLING CODE 8011-01-P
