Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Modifying the Manner in Which It Calculates Volume, Liquidity and Quoting Thresholds Applicable to Billing on the Exchange on March 31, 2015, 23310-23312 [2015-09627]
Download as PDF
23310
Federal Register / Vol. 80, No. 80 / Monday, April 27, 2015 / Notices
get the best price for its customer and,
therefore, the Exchange does not believe
that the proposed changes provide any
advantage or disadvantage to customers
or the markets in general.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. However, the
Exchange believes that Rule 810
currently imposes a burden on
competition for the Exchange because it
requires market makers that engage in
Other Business Activities to operate in
a manner that the Exchange believes is
more restrictive than necessary for the
protection of investors to the public
interest. The Exchange believes that the
proposed rule change is pro-competitive
because it is consistent with how other
national securities exchanges are
currently interpreting their rules and
should provide greater flexibility to
allow member firms to make routing
decisions based on the same
information across multiple markets.
Rmajette on DSK2VPTVN1PROD with NOTICES
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
The Exchange has not solicited, and
does not intend to solicit, comments on
this proposed rule change. The
Exchange has not received any
unsolicited written comments from
members or other interested parties.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The Exchange believes that the
foregoing proposed rule change may
take effect upon filing with the
Commission pursuant to Section
19(b)(3)(A) 17 of the Act and Rule 19b–
4(f)(6) thereunder 18 because the
foregoing 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 after its filing date, or such
shorter time as the Commission may
designate.
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
17 15
U.S.C. 78s(b)(3)(A).
18 17 CFR 240.19b–4(f)(6).
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14:41 Apr 24, 2015
Jkt 235001
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.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.19
Jill M. Peterson,
Assistant Secretary.
IV. Solicitation of Comments
BILLING CODE 8011–01–P
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–
ISE Gemini–2015–10 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–ISE Gemini–2015–10. 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 the
filing will also be available for
inspection and copying at the principal
office of the Exchange. All comments
received will be posted without change;
the Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–ISE
Gemini–2015–10 and should be
submitted on or before May 18, 2015.
PO 00000
Frm 00058
Fmt 4703
Sfmt 4703
[FR Doc. 2015–09629 Filed 4–24–15; 8:45 am]
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–74774; File No. SR–
NYSEArca–2015–31]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Modifying the Manner in
Which It Calculates Volume, Liquidity
and Quoting Thresholds Applicable to
Billing on the Exchange on March 31,
2015
April 21, 2015.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on April 10,
2015, NYSE Arca, Inc. (the ‘‘Exchange’’
or ‘‘NYSE Arca’’) filed with the
Securities and Exchange Commission
(the ‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the self-regulatory organization. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of the Substance
of the Proposed Rule Change
The Exchange proposes to modify the
manner in which it calculates volume,
liquidity and quoting thresholds
applicable to billing on the Exchange in
connection with an interruption in
trading in certain securities on the
Exchange on March 31, 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
19 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
E:\FR\FM\27APN1.SGM
27APN1
Federal Register / Vol. 80, No. 80 / Monday, April 27, 2015 / Notices
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
Rmajette on DSK2VPTVN1PROD with NOTICES
1. Purpose
The Exchange proposes to modify the
manner by which it calculates volume,
liquidity and quoting thresholds
applicable to billing on the Exchange
due to issues relating to trading on the
Exchange in certain securities on March
31, 2015.
Specifically, on March 31, 2015,
trading was unavailable in a range of
symbols on the Exchange for a period of
more than two hours, resulting in a
more than 30% decrease in trading
volume on the Exchange (Tape A, B and
C securities combined) for that day as
compared to average daily volume
(‘‘ADV’’) on the Exchange for all of the
prior trading days in March 2015. In
addition, once trading and quoting
resumed on the Exchange, market
participants were advised to use market
data from the Consolidated Tape
Association (SIP) feed rather than from
the NYSE Arcabook feed as the NYSE
ArcaBook feed data may have been
compromised as a result of the issues
with trading.3 The Exchange believes
that these issues impacted the ability of
ETP Holders, including Market Makers,
to engage in typical trading, quoting and
liquidity in their assigned securities on
March 31, 2015, leading to decreased
quoting and trading volume compared
to ADV and U.S. consolidated average
daily volume (‘‘CADV’’) for the previous
trading days combined in March 2015.
As provided for in the Exchange’s
Schedule of Fees and Charges for
Exchange Services (‘‘Equities Fee
Schedule’’), several of the Exchange’s
transaction fees and credits are based on
trading, quoting and liquidity
thresholds that ETP Holders must
satisfy in order to qualify for the
particular rates (i.e., percentage of
CADV and ADV thresholds). The
Exchange believes that the issues that
occurred on March 31, 2015 impacted
the ability of ETP Holders to meet these
thresholds during March 2015.4 The
3 See
NYSE Arca Equities Trader Update, ‘‘March
31, 2015, NYSE Arca Equities Trading Interruption
in Tape B Symbol Range ‘‘UTG–ZSML,’’ April 2,
2015, available at https://www.nyse.com/traderupdate/history.
4 The Exchange notes that it does not perform the
calculations necessary to determine whether these
VerDate Sep<11>2014
14:41 Apr 24, 2015
Jkt 235001
Exchange therefore proposes to exclude
March 31, 2015 from any CADV or ADV
calculation described in the Equities Fee
Schedule in order to reasonably ensure
that an ETP Holder that would
otherwise qualify for a particular
threshold during March 2015, and the
corresponding transaction rate, would
not be negatively impacted by issues
that occurred on March 31, 2015.
The proposed change is not otherwise
intended to address any other issues
relating to fees and the Exchange is not
aware of any problems that ETP Holders
would have in complying with the
proposed change.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act,5 in general, and
furthers the objectives of Sections
6(b)(4) and (5) of the Act,6 in particular,
because it provides for the equitable
allocation of reasonable dues, fees, and
other charges among its members,
issuers and other persons using its
facilities and does not unfairly
discriminate between customers,
issuers, brokers or dealers.
The Exchange believes that the
proposed rule change is reasonable
because excluding March 31, 2015 from
any CADV or ADV calculation described
in the Equities Fee Schedule would
reasonably ensure that an ETP Holder
that would otherwise qualify for a
particular threshold during March 2015,
and the corresponding transaction rate,
would not be negatively impacted by
the issues that occurred on March 31,
2015. The Exchange also believes that
the proposed rule change is equitable
and not unfairly discriminatory because
the issue with trading on the Exchange,
which lasted more than two hours,
resulted in significant decreases in
trading volume and also impacted the
ability of ETP Holders on the Exchange,
including Market Makers, to engage in
typical trading, quoting and liquidity in
their assigned securities on March 31,
2015, leading to decreased quoting and
trading volume compared to ADVs and
CADVs for the previous trading days in
March 2015. Therefore, excluding
March 31, 2015 from any CADV or ADV
calculation described in the Equities Fee
Schedule would reasonably ensure than
any market participant on the Exchange
would not be negatively impacted by
the issues that occurred on March 31,
2015 with respect to billing on the
Exchange. The proposed rule change is
thresholds have been met until after the particular
billing month has ended.
5 15 U.S.C. 78f(b).
6 15 U.S.C. 78f(b)(4) and (5).
PO 00000
Frm 00059
Fmt 4703
Sfmt 4703
23311
also equitable and not unfairly
discriminatory because it would result
in all market participants on the
Exchange being treated equally by
excluding March 31, 2015 from any
CADV or ADV calculation described in
the Equities Fee Schedule.
Finally, the Exchange believes that it
is subject to significant competitive
forces, as described below in the
Exchange’s statement regarding the
burden on competition.
For these reasons, the Exchange
believes that the proposal is consistent
with the Act.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
In accordance with Section 6(b)(8) of
the Act,7 the Exchange believes that the
proposed rule change will not impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. The
proposed rule change would treat all
market participants on the Exchange
equally by excluding March 31, 2015
from any CADV or ADV calculation
described in the Equities Fee Schedule.
Moreover, the Exchange believes that
the proposed change would enhance
competition between competing
marketplaces by enabling the Exchange
to exclude March 31, 2015 from any
CADV or ADV calculation described in
the Equities Fee Schedule.
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
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 after the date of
the filing, or such shorter time as the
Commission may designate if consistent
with the protection of investors and the
public interest, the proposed rule
change has become effective pursuant to
Section 19(b)(3)(A) of the Act 8 and Rule
19b–4(f)(6) thereunder.9
7 15
U.S.C. 78f(b)(8).
U.S.C. 78s(b)(3)(A).
9 17 CFR 240.19b–4(f)(6). As required under Rule
19b–4(f)(6)(iii), the Exchange provided the
Commission with written notice of its intent to file
the proposed rule change, along with a brief
description and the text of the proposed rule
8 15
E:\FR\FM\27APN1.SGM
Continued
27APN1
23312
Federal Register / Vol. 80, No. 80 / Monday, April 27, 2015 / Notices
A proposed rule change filed
pursuant to Rule 19b–4(f)(6) under the
Act 10 normally does not become
operative for 30 days after the date of
the filing. However, pursuant to Rule
19b–4(f)(6)(iii),11 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 so that
the proposal may become operative
immediately upon filing. The
Commission believes that waiving the
30-day operative delay is consistent
with the protection of investors and the
public interest. As represented by the
Exchange, excluding March 31, 2015
from any CADV or ADV calculation
described in the Equities Fee Schedule
would reasonably ensure that any
market participant on the Exchange
would not be negatively impacted by
the issues that occurred on March 31,
2015 with respect to billing on the
Exchange. Accordingly, waiving the 30day operative delay would eliminate the
potential for confusion among ETP
Holders and the public regarding how
the Exchange will calculate volume,
liquidity, and quoting thresholds related
to billing for activity on the Exchange
during March 2015 and, more
specifically, on March 31, 2015, and
permit the Exchange to determine
transaction fees and credits for ETP
Holders in a timely manner after the end
of the billing month of March 2015.
Therefore, the Commission hereby
designates the proposed rule change
operative upon filing.12
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 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) of the Act 13 to
determine whether the proposed rule
should be approved or disapproved.
Rmajette on DSK2VPTVN1PROD with NOTICES
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
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.
10 17 CFR 240.19b–4(f)(6).
11 17 CFR 240.19b–4(f)(6)(iii).
12 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).
13 15 U.S.C. 78s(b)(2)(B).
VerDate Sep<11>2014
14:41 Apr 24, 2015
Jkt 235001
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:
SECURITIES AND EXCHANGE
COMMISSION
Electronic Comments
Self-Regulatory Organizations;
NASDAQ OMX BX, Inc.; Notice of Filing
and Immediate Effectiveness of a
Proposed Rule Change To Amend
Exchange Rules 7001, 7003 and 7018
• 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–
NYSEArca–2015–31 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–NYSEArca-2015–31. 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
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–
NYSEArca–2015–31, and should be
submitted on or before May 18, 2015.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2015–09627 Filed 4–24–15; 8:45 am]
[Release No. 34–74773; File No. SR–BX–
2015–022]
April 21, 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, NASDAQ OMX BX, Inc. (‘‘BX’’ or
‘‘Exchange’’) 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 amend BX
Rule 7001 trading rights fees and to no
longer waive certain membership and
trading rights fees for BX members
seeking to participate solely in the BX
Options Market, to eliminate the
Equities Regulatory Fee in BX Rule
7003, as well as to amend the fee
schedule under Exchange Rule 7018 and
to correct a typographical error in the
rule.
The text of the proposed rule change
is also available on the Exchange’s Web
site at https://
nasdaqomxbx.cchwallstreet.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
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in sections A, B, and C below, of
the most significant aspects of such
statements.
BILLING CODE 8011–01–P
1 15
14 17
PO 00000
CFR 200.30–3(a)(12).
Frm 00060
Fmt 4703
Sfmt 4703
2 17
E:\FR\FM\27APN1.SGM
U.S.C. 78s(b)(1).
CFR 240.19b–4.
27APN1
Agencies
[Federal Register Volume 80, Number 80 (Monday, April 27, 2015)]
[Notices]
[Pages 23310-23312]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-09627]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-74774; File No. SR-NYSEArca-2015-31]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change Modifying the
Manner in Which It Calculates Volume, Liquidity and Quoting Thresholds
Applicable to Billing on the Exchange on March 31, 2015
April 21, 2015.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on April 10, 2015, NYSE Arca, Inc. (the ``Exchange'' or ``NYSE
Arca'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I and II
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\ 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 modify the manner in which it calculates
volume, liquidity and quoting thresholds applicable to billing on the
Exchange in connection with an interruption in trading in certain
securities on the Exchange on March 31, 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
[[Page 23311]]
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 modify the manner by which it calculates
volume, liquidity and quoting thresholds applicable to billing on the
Exchange due to issues relating to trading on the Exchange in certain
securities on March 31, 2015.
Specifically, on March 31, 2015, trading was unavailable in a range
of symbols on the Exchange for a period of more than two hours,
resulting in a more than 30% decrease in trading volume on the Exchange
(Tape A, B and C securities combined) for that day as compared to
average daily volume (``ADV'') on the Exchange for all of the prior
trading days in March 2015. In addition, once trading and quoting
resumed on the Exchange, market participants were advised to use market
data from the Consolidated Tape Association (SIP) feed rather than from
the NYSE Arcabook feed as the NYSE ArcaBook feed data may have been
compromised as a result of the issues with trading.\3\ The Exchange
believes that these issues impacted the ability of ETP Holders,
including Market Makers, to engage in typical trading, quoting and
liquidity in their assigned securities on March 31, 2015, leading to
decreased quoting and trading volume compared to ADV and U.S.
consolidated average daily volume (``CADV'') for the previous trading
days combined in March 2015.
---------------------------------------------------------------------------
\3\ See NYSE Arca Equities Trader Update, ``March 31, 2015, NYSE
Arca Equities Trading Interruption in Tape B Symbol Range ``UTG-
ZSML,'' April 2, 2015, available at https://www.nyse.com/trader-update/history.
---------------------------------------------------------------------------
As provided for in the Exchange's Schedule of Fees and Charges for
Exchange Services (``Equities Fee Schedule''), several of the
Exchange's transaction fees and credits are based on trading, quoting
and liquidity thresholds that ETP Holders must satisfy in order to
qualify for the particular rates (i.e., percentage of CADV and ADV
thresholds). The Exchange believes that the issues that occurred on
March 31, 2015 impacted the ability of ETP Holders to meet these
thresholds during March 2015.\4\ The Exchange therefore proposes to
exclude March 31, 2015 from any CADV or ADV calculation described in
the Equities Fee Schedule in order to reasonably ensure that an ETP
Holder that would otherwise qualify for a particular threshold during
March 2015, and the corresponding transaction rate, would not be
negatively impacted by issues that occurred on March 31, 2015.
---------------------------------------------------------------------------
\4\ The Exchange notes that it does not perform the calculations
necessary to determine whether these thresholds have been met until
after the particular billing month has ended.
---------------------------------------------------------------------------
The proposed change is not otherwise intended to address any other
issues relating to fees and the Exchange is not aware of any problems
that ETP Holders would have in complying with the proposed change.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\5\ in general, and furthers the
objectives of Sections 6(b)(4) and (5) of the Act,\6\ 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.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78f(b).
\6\ 15 U.S.C. 78f(b)(4) and (5).
---------------------------------------------------------------------------
The Exchange believes that the proposed rule change is reasonable
because excluding March 31, 2015 from any CADV or ADV calculation
described in the Equities Fee Schedule would reasonably ensure that an
ETP Holder that would otherwise qualify for a particular threshold
during March 2015, and the corresponding transaction rate, would not be
negatively impacted by the issues that occurred on March 31, 2015. The
Exchange also believes that the proposed rule change is equitable and
not unfairly discriminatory because the issue with trading on the
Exchange, which lasted more than two hours, resulted in significant
decreases in trading volume and also impacted the ability of ETP
Holders on the Exchange, including Market Makers, to engage in typical
trading, quoting and liquidity in their assigned securities on March
31, 2015, leading to decreased quoting and trading volume compared to
ADVs and CADVs for the previous trading days in March 2015. Therefore,
excluding March 31, 2015 from any CADV or ADV calculation described in
the Equities Fee Schedule would reasonably ensure than any market
participant on the Exchange would not be negatively impacted by the
issues that occurred on March 31, 2015 with respect to billing on the
Exchange. The proposed rule change is also equitable and not unfairly
discriminatory because it would result in all market participants on
the Exchange being treated equally by excluding March 31, 2015 from any
CADV or ADV calculation described in the Equities Fee Schedule.
Finally, the Exchange believes that it is subject to significant
competitive forces, as described below in the Exchange's statement
regarding the burden on competition.
For these reasons, the Exchange believes that the proposal is
consistent with the Act.
B. Self-Regulatory Organization's Statement on Burden on Competition
In accordance with Section 6(b)(8) of the Act,\7\ the Exchange
believes that the proposed rule change will not impose any burden on
competition that is not necessary or appropriate in furtherance of the
purposes of the Act. The proposed rule change would treat all market
participants on the Exchange equally by excluding March 31, 2015 from
any CADV or ADV calculation described in the Equities Fee Schedule.
Moreover, the Exchange believes that the proposed change would enhance
competition between competing marketplaces by enabling the Exchange to
exclude March 31, 2015 from any CADV or ADV calculation described in
the Equities Fee Schedule.
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\7\ 15 U.S.C. 78f(b)(8).
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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
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 after the date of the filing, or such shorter time as the
Commission may designate if consistent with the protection of investors
and the public interest, the proposed rule change has become effective
pursuant to Section 19(b)(3)(A) of the Act \8\ and Rule 19b-4(f)(6)
thereunder.\9\
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\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 17 CFR 240.19b-4(f)(6). As required under Rule 19b-
4(f)(6)(iii), the Exchange provided the Commission with written
notice of its intent to file the proposed rule change, along with a
brief description and the text of 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.
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[[Page 23312]]
A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the
Act \10\ normally does not become operative for 30 days after the date
of the filing. However, pursuant to Rule 19b-4(f)(6)(iii),\11\ 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 so that
the proposal may become operative immediately upon filing. The
Commission believes that waiving the 30-day operative delay is
consistent with the protection of investors and the public interest. As
represented by the Exchange, excluding March 31, 2015 from any CADV or
ADV calculation described in the Equities Fee Schedule would reasonably
ensure that any market participant on the Exchange would not be
negatively impacted by the issues that occurred on March 31, 2015 with
respect to billing on the Exchange. Accordingly, waiving the 30-day
operative delay would eliminate the potential for confusion among ETP
Holders and the public regarding how the Exchange will calculate
volume, liquidity, and quoting thresholds related to billing for
activity on the Exchange during March 2015 and, more specifically, on
March 31, 2015, and permit the Exchange to determine transaction fees
and credits for ETP Holders in a timely manner after the end of the
billing month of March 2015. Therefore, the Commission hereby
designates the proposed rule change operative upon filing.\12\
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\10\ 17 CFR 240.19b-4(f)(6).
\11\ 17 CFR 240.19b-4(f)(6)(iii).
\12\ 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).
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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 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) of the Act \13\ to determine whether the proposed
rule should be approved or disapproved.
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\13\ 15 U.S.C. 78s(b)(2)(B).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-NYSEArca-2015-31 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-NYSEArca-2015-31.
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 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-
NYSEArca-2015-31, and should be submitted on or before May 18, 2015.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
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\14\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2015-09627 Filed 4-24-15; 8:45 am]
BILLING CODE 8011-01-P