Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending the NYSE Arca Options Fee Schedule, 43480-43482 [2015-17893]

Download as PDF 43480 Federal Register / Vol. 80, No. 140 / Wednesday, July 22, 2015 / Notices POSTAL REGULATORY COMMISSION [Docket No. CP2015–103; Order No. 2594] The Commission appoints Lyudmila Y. Bzhilyanskaya to serve as Public Representative in this docket. New Postal Product III. Ordering Paragraphs Postal Regulatory Commission. ACTION: Notice. It is ordered: 1. The Commission establishes Docket No. CP2015–103 for consideration of the matters raised by the Postal Service’s Notice. 2. Pursuant to 39 U.S.C. 505, Lyudmila Y. Bzhilyanskaya is appointed to serve as an officer of the Commission to represent the interests of the general public in this proceeding (Public Representative). 3. Comments are due no later than July 23, 2015. 4. The Secretary shall arrange for publication of this order in the Federal Register. AGENCY: The Commission is noticing a recent Postal Service filing concerning an additional Global Expedited Package Services 3 negotiated service agreement. This notice informs the public of the filing, invites public comment, and takes other administrative steps. DATES: Comments are due: July 23, 2015. ADDRESSES: Submit comments electronically via the Commission’s Filing Online system at https:// www.prc.gov. Those who cannot submit comments electronically should contact the person identified in the FOR FURTHER INFORMATION CONTACT section by telephone for advice on filing alternatives. FOR FURTHER INFORMATION CONTACT: David A. Trissell, General Counsel, at 202–789–6820. SUPPLEMENTARY INFORMATION: SUMMARY: Table of Contents tkelley on DSK3SPTVN1PROD with NOTICES I. Introduction On July 15, 2015, the Postal Service filed notice that it has entered into an additional Global Expedited Package Services 3 (GEPS 3) negotiated service agreement (Agreement).1 To support its Notice, the Postal Service filed a copy of the Agreement, a copy of the Governors’ Decision authorizing the product, a certification of compliance with 39 U.S.C. 3633(a), and an application for non-public treatment of certain materials. It also filed supporting financial workpapers. II. Notice of Commission Action The Commission establishes Docket No. CP2015–103 for consideration of matters raised by the Notice. The Commission invites comments on whether the Postal Service’s filing is consistent with 39 U.S.C. 3632, 3633, or 3642, 39 CFR part 3015, and 39 CFR part 3020, subpart B. Comments are due no later than July 23, 2015. The public portions of the filing can be accessed via the Commission’s Web site (https:// www.prc.gov). 1 Notice of United States Postal Service of Filing a Functionally Equivalent Global Expedited Package Services 3 Negotiated Service Agreement and Application for Non-Public Treatment of Materials Filed Under Seal, July 15, 2015 (Notice). 19:59 Jul 21, 2015 Jkt 235001 [FR Doc. 2015–17940 Filed 7–21–15; 8:45 am] BILLING CODE 7710–FW–P 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 SECURITIES AND EXCHANGE COMMISSION [Release No. 34–75469; File No. SR– NYSEARCA–2015–62] I. Introduction II. Notice of Commission Action III. Ordering Paragraphs VerDate Sep<11>2014 By the Commission. Ruth Ann Abrams, Acting Secretary. 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 Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending the NYSE Arca Options Fee Schedule July 16, 2015. Pursuant to Section 19(b)(1) 1 of the Securities Exchange Act of 1934 (the ‘‘Act’’) 2 and Rule 19b–4 thereunder,3 notice is hereby given that, on July 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, II, and III below, which Items have been prepared by the self-regulatory organization. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend the NYSE Arca Options Fee Schedule (‘‘Fee Schedule’’). The Exchange proposes to implement the fee change effective July 10, 2015. The text of the proposed rule PO 00000 1 15 U.S.C. 78s(b)(1). U.S.C. 78a. 3 17 CFR 240.19b–4. 2 15 Frm 00095 Fmt 4703 Sfmt 4703 The purpose of this filing is to enhance the application of the Limit of Fees on Firm and Broker Dealer Open Outcry Executions (the ‘‘Firm Cap’’) to include Qualified Contingent Cross Transactions (‘‘QCCs’’). Currently, the Exchange imposes a Firm Cap of $100,000 per month on combined Firm Proprietary Fees and Broker Dealer Fees for transactions clearing in the customer range, if executed in open outcry (i.e., Manual Transactions). The Firm Cap excludes Strategy Executions, Royalty Fees, firm trades executed via a Joint Back Office agreement, and Mini option contracts.4 To date, fees arising from QCCs have not been included in the Firm Cap because QCCs are not executed in open outcry. Rather, QCCs are executed by the entry of a matched trade into the Exchange System and reported electronically.5 Because Firms and Broker Dealers are generally represented on the Floor by Floor Brokers and QCC transactions may be entered into the System from a terminal on the Floor as part of an array of services that a Floor Brokerage operation can offer to clients, the Exchange proposes to include fees 4 See Fee Schedule, endnote 9. Rule 6.90. Qualified Contingent Crosses (providing in relevant part that QCCs are ‘‘automatically executed upon entry into the NYSE Arca System provided that the execution (i) is not at the same price as a Customer Order in the Consolidated Book and (ii) is at or between the NBBO’’). See also Commentary .01 to Rule 6.90 (providing that QCC orders ‘‘can be entered into the NYSE Arca System from on the Floor of the Exchange only by Floor Brokers’’). 5 See E:\FR\FM\22JYN1.SGM 22JYN1 Federal Register / Vol. 80, No. 140 / Wednesday, July 22, 2015 / Notices for QCCs executed by Floor Brokers in the aggregation towards the Firm Cap. The Exchange believes this proposed change would encourage Firms and Broker Dealers to direct a greater number of their orders, including QCC orders, to the Trading Floor, given the increased opportunities to achieve the Firm Cap on their monthly transaction fees. For example, if a Broker Dealer achieves the Firm Cap with the inclusion of $20,000 in QCC fees, the Broker Dealer may be inclined to direct other orders to the Exchange Floor having reached the Firm Cap, which increased liquidity would benefit all market participants. The Exchange notes that competing options exchanges likewise include QCC transactions in monthly fee caps similar to the Firm Cap.6 The proposed inclusion of QCC fees in the Firm Cap would not affect the Floor Broker Rebate for Executed Orders, as Floor Brokers would still earn the Rebate even if the fee for the transaction itself is capped. Consistent with the proposed change, the Exchange proposes to change the name of this fee from ‘‘Limit of Fees on Firm and Broker Dealer Open Outcry Executions’’ to ‘‘Firm and Broker Dealer Monthly Fee Cap,’’ which the Exchange believes would add more clarity and consistency to the fee schedule. Relatedly, the Exchange also proposes to modify the language in the Firm Cap regarding the exclusion of Mini options which erroneously refers to Strategy Executions. Specifically, the Exchange proposes to replace the language ‘‘Mini option contracts are excluded from the Limit of Fees on Strategy Executions,’’ with ‘‘Mini option contracts are excluded from the Firm and Broker Dealer Monthly Fee Cap.’’ The Exchange believes that this change would add clarity and consistency to the Fee Schedule. 2. Statutory Basis tkelley on DSK3SPTVN1PROD with NOTICES The Exchange believes that the proposed rule change is consistent with Section 6(b) of the Act,7 in general, and furthers the objectives of Sections 6 See, e.g., NYSE Amex Options fee schedule, available at, https://www.nyse.com/publicdocs/ nyse/markets/amex-options/NYSE_Amex_Options_ Fee_Schedule.pdf (including QCCs in the Monthly Firm Fee Cap for Manual transactions, which aggregates the fees associated with Firm Manual transactions and cap them at $100,000 per month, per Firm); NASDAQ OMX PHLX LLC fee schedule, available at, https://www.nasdaqtrader.com/ Micro.aspx?id=phlxpricing (including QCCs in the Monthly Firm Fee Cap, which aggregates the fees associated with Firm Floor Options Transactions and QCCs and cap them at $75,000 per month, per Firm). 7 15 U.S.C. 78f(b). VerDate Sep<11>2014 19:59 Jul 21, 2015 Jkt 235001 6(b)(4) and (5) of the Act,8 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 the inclusion of the Floor executed QCCs under the Firm Cap is reasonable and not unfairly discriminatory because it would provide additional opportunities for Firms and Broker Dealers to achieve the Firm Cap, which may, in turn, encourage more business, not limited to QCC trades, to be brought to the Floor, which would benefit all market participants. The proposed change is reasonable, equitable and not unfairly discriminatory as the Firm Cap would not be meaningful for Customers or Professional Customers because neither Customers nor Professional Customers pay transaction charges for QCCs. The proposed change is also reasonable, equitable and not unfairly discriminatory towards Market Makers, as Market Makers are generally charged a lower fee for Manual executions, and have alternative avenues to reduce transaction fees.9 In addition, the Exchange believes that by including QCCs in the Firm Cap, thereby making the Cap more achievable and encouraging additional order flow not limited to QCCs, Market Makers are provided a greater opportunity to interact with order flow, which, in turn, benefits market participants. The Exchange also believes that the proposed change is reasonable because several competing options exchanges likewise include QCC transactions in monthly fee caps similar to Firm Cap.10 The Exchange believes that its proposal to modify the name of this fee, as well as the language regarding the exclusion of Mini options from the Firm Cap to correct the erroneous reference to Strategy Executions, would add clarity and consistency to the Fee Schedule to the benefit of all market participants. 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,11 the Exchange does not believe that the proposed rule change will U.S.C. 78f(b)(4) and (5). generally Fee Schedule (various credits available to Market Makers for posted monthly volume, including for executions in Penny Pilot Issues and SPY). 10 See supra n. 6. 11 15 U.S.C. 78f(b)(8). PO 00000 8 15 9 See Frm 00096 Fmt 4703 Sfmt 4703 43481 impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. Instead, the Exchange believes that the proposed change would continue to encourage competition, including by attracting a wider variety of business to the Floor of the Exchange, which would continue to make the Exchange a more competitive venue for, among other things, order execution and price discovery. The Exchange believes the proposed fee change would not unduly burden any particular group of market participants trading on the Exchange ` vis-a-vis another group. Specifically, neither Customers nor Professional Customers are charged for QCC transactions. Moreover, Market Makers are generally charged a lower fee for Manual executions, and have alternative avenues to reduce transaction fees.12 In addition, the Exchange believes that by including QCCs in the Firm Cap, thereby making the Cap more achievable and encouraging additional order flow not limited to QCCs, Market Makers are provided a greater opportunity to interact with order flow, which, in turn, benefits market participants. 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) 13 of the Act and subparagraph (f)(2) of Rule 19b–4 14 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 12 See supra n. 9. U.S.C. 78s(b)(3)(A). 14 17 CFR 240.19b–4(f)(2). 13 15 E:\FR\FM\22JYN1.SGM 22JYN1 43482 Federal Register / Vol. 80, No. 140 / Wednesday, July 22, 2015 / Notices 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) 15 of the Act to determine whether the proposed rule change should be approved or disapproved. submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR– NYSEARCA–2015–62 and should be submitted on or before August 12, 2015. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.16 Robert W. Errett, Deputy Secretary. [FR Doc. 2015–17893 Filed 7–21–15; 8:45 am] 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–2015–62 on the subject line. tkelley on DSK3SPTVN1PROD with NOTICES 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: Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Order Approving a Proposed Rule Change, as Modified by Amendment No. 1 Thereto, To Adopt FINRA Rule 2241 (Research Analysts and Research Reports) in the Consolidated FINRA Rulebook 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–2015–62. 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 Section, 100 F Street NE., Washington, DC 20549–1090. Copies of the filing will also be available for inspection and copying at the NYSE’s principal office and on its Internet Web site at www.nyse.com. All comments received will be posted without change; the Commission does not edit personal identifying information from July 16, 2015. 15 15 U.S.C. 78s(b)(2)(B). VerDate Sep<11>2014 19:59 Jul 21, 2015 Jkt 235001 BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–75471; File No. SR–FINRA– 2014–047] I. Introduction On November 14, 2014, Financial Industry Regulatory Authority, Inc. (‘‘FINRA’’) filed with the Securities and Exchange Commission (‘‘SEC’’ or ‘‘Commission’’), pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 a proposed rule to adopt NASD Rule 2711 (Research Analysts and Research Reports) as a FINRA rule, with several modifications, amend NASD Rule 1050 (Registration of Research Analysts) and Incorporated NYSE Rule 344 to create an exception from the research analyst qualification requirement, and renumber NASD Rule 2711 as FINRA Rule 2241 in the consolidated FINRA rulebook. The proposal was published for comment in the Federal Register on November 24, 2014.3 The Commission received four comments on the original proposal.4 On CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 Exchange Act Release No. 73622 (Nov. 18, 2014); 79 FR 69939 (Nov. 24, 2014) (‘‘Notice’’). On January 6, 2015, FINRA consented to extending the time period for the Commission to either approve or disapprove the proposed rule change, or to institute proceedings to determine whether to approve or disapprove the proposed rule change, to February 20, 2015. 4 See Letter from Kevin Zambrowicz, Associate General Counsel & Managing Director and Sean Davy, Managing Director, SIFMA, dated Dec. 15, 2014 (‘‘SIFMA’’), Letter from Hugh D. Berkson, President-Elect, Public Investors Arbitration Bar PO 00000 16 17 1 15 Frm 00097 Fmt 4703 Sfmt 4703 February 19, 2015, FINRA filed Amendment No. 1 responding to these original comments received to the proposal as well as to propose amendments in response to these comments. The proposal, as amended by Amendment No. 1, was published for comment in the Federal Register on March 18, 2015.5 On February 20, 2015, the Commission issued an order instituting proceedings pursuant to section 19(b)(2)(B) of the Act 6 to determine whether to approve or disapprove the proposal. This order was published for comment in the Federal Register on February 26, 2015.7 The Commission received a further three comments regarding the proceedings or in response to Amendment No. 1,8 to which FINRA responded via letter on May 5, 2015.9 This order approves the proposed rule change. II. Description of the Proposed Rule Change As described more fully in the Notice, FINRA proposed to adopt, in the Consolidated FINRA Rulebook, NASD Rule 2711 (Research Analysts and Research Reports), with several modifications, as FINRA Rule 2241. The proposed rule change also would amend NASD Rule 1050 (Registration of Research Analysts) and Incorporated NYSE Rule 344 (Research Analysts and Supervisory Analysts) to create an exception from the research analyst qualification requirements. FINRA believes that the proposed rule change would retain the core provisions of the current rules, broaden the obligations on members to identify and manage research-related conflicts of interest, restructure the rules to provide some flexibility in compliance without diminishing investor protection, extend Association, dated Dec. 15, 2014 (‘‘PIABA Equity’’), Letter from Stephanie R. Nicholas, WilmerHale, dated Dec. 16, 2014 (‘‘WilmerHale Equity One’’), and Letter from William Beatty, President and Washington (State) Securities Administrator, North American Securities Administrators Association, Inc., dated Dec. 19, 2014 (‘‘NASAA Equity One’’). 5 Exchange Act Release No. 74488 (Mar. 12, 2015); 80 FR 14174 (Mar. 18, 2015) (‘‘Amendment Notice’’). 6 15 U.S.C. 78s(b)(2)(B). 7 Exchange Act Release No. 74339 (Feb. 20, 2015); 80 FR 10528 (Feb. 26, 2015). 8 Letter from Egidio Mogavero, Managing Director and Chief Compliance Officer, JMP Securities, dated Mar. 19, 2015 (‘‘JMP’’), Letter from Stephanie R. Nicholas, WilmerHale, dated Apr. 6, 2015 (‘‘WilmerHale Equity Two’’), and Letter from William Beatty, President and Washington (State) Securities Administrator, North American Securities Administrators Association, Inc., dated Apr. 17, 2015 (‘‘NASAA Equity Two’’). 9 Letter from Philip Shaikun, Vice President and Associate General Counsel, FINRA, dated May 5, 2015 (‘‘FINRA Response’’). E:\FR\FM\22JYN1.SGM 22JYN1

Agencies

[Federal Register Volume 80, Number 140 (Wednesday, July 22, 2015)]
[Notices]
[Pages 43480-43482]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-17893]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-75469; File No. SR-NYSEARCA-2015-62]


Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change Amending the NYSE 
Arca Options Fee Schedule

July 16, 2015.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby 
given that, on July 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, II, 
and III below, which Items have been prepared by the self-regulatory 
organization. The Commission is publishing this notice to solicit 
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend the NYSE Arca Options Fee Schedule 
(``Fee Schedule''). The Exchange proposes to implement the fee change 
effective July 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 enhance the application of the 
Limit of Fees on Firm and Broker Dealer Open Outcry Executions (the 
``Firm Cap'') to include Qualified Contingent Cross Transactions 
(``QCCs'').
    Currently, the Exchange imposes a Firm Cap of $100,000 per month on 
combined Firm Proprietary Fees and Broker Dealer Fees for transactions 
clearing in the customer range, if executed in open outcry (i.e., 
Manual Transactions). The Firm Cap excludes Strategy Executions, 
Royalty Fees, firm trades executed via a Joint Back Office agreement, 
and Mini option contracts.\4\
---------------------------------------------------------------------------

    \4\ See Fee Schedule, endnote 9.
---------------------------------------------------------------------------

    To date, fees arising from QCCs have not been included in the Firm 
Cap because QCCs are not executed in open outcry. Rather, QCCs are 
executed by the entry of a matched trade into the Exchange System and 
reported electronically.\5\ Because Firms and Broker Dealers are 
generally represented on the Floor by Floor Brokers and QCC 
transactions may be entered into the System from a terminal on the 
Floor as part of an array of services that a Floor Brokerage operation 
can offer to clients, the Exchange proposes to include fees

[[Page 43481]]

for QCCs executed by Floor Brokers in the aggregation towards the Firm 
Cap. The Exchange believes this proposed change would encourage Firms 
and Broker Dealers to direct a greater number of their orders, 
including QCC orders, to the Trading Floor, given the increased 
opportunities to achieve the Firm Cap on their monthly transaction 
fees. For example, if a Broker Dealer achieves the Firm Cap with the 
inclusion of $20,000 in QCC fees, the Broker Dealer may be inclined to 
direct other orders to the Exchange Floor having reached the Firm Cap, 
which increased liquidity would benefit all market participants. The 
Exchange notes that competing options exchanges likewise include QCC 
transactions in monthly fee caps similar to the Firm Cap.\6\
---------------------------------------------------------------------------

    \5\ See Rule 6.90. Qualified Contingent Crosses (providing in 
relevant part that QCCs are ``automatically executed upon entry into 
the NYSE Arca System provided that the execution (i) is not at the 
same price as a Customer Order in the Consolidated Book and (ii) is 
at or between the NBBO''). See also Commentary .01 to Rule 6.90 
(providing that QCC orders ``can be entered into the NYSE Arca 
System from on the Floor of the Exchange only by Floor Brokers'').
    \6\ See, e.g., NYSE Amex Options fee schedule, available at, 
https://www.nyse.com/publicdocs/nyse/markets/amex-options/NYSE_Amex_Options_Fee_Schedule.pdf (including QCCs in the Monthly 
Firm Fee Cap for Manual transactions, which aggregates the fees 
associated with Firm Manual transactions and cap them at $100,000 
per month, per Firm); NASDAQ OMX PHLX LLC fee schedule, available 
at, https://www.nasdaqtrader.com/Micro.aspx?id=phlxpricing (including 
QCCs in the Monthly Firm Fee Cap, which aggregates the fees 
associated with Firm Floor Options Transactions and QCCs and cap 
them at $75,000 per month, per Firm).
---------------------------------------------------------------------------

    The proposed inclusion of QCC fees in the Firm Cap would not affect 
the Floor Broker Rebate for Executed Orders, as Floor Brokers would 
still earn the Rebate even if the fee for the transaction itself is 
capped.
    Consistent with the proposed change, the Exchange proposes to 
change the name of this fee from ``Limit of Fees on Firm and Broker 
Dealer Open Outcry Executions'' to ``Firm and Broker Dealer Monthly Fee 
Cap,'' which the Exchange believes would add more clarity and 
consistency to the fee schedule. Relatedly, the Exchange also proposes 
to modify the language in the Firm Cap regarding the exclusion of Mini 
options which erroneously refers to Strategy Executions. Specifically, 
the Exchange proposes to replace the language ``Mini option contracts 
are excluded from the Limit of Fees on Strategy Executions,'' with 
``Mini option contracts are excluded from the Firm and Broker Dealer 
Monthly Fee Cap.'' The Exchange believes that this change would add 
clarity and consistency to the Fee Schedule.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act,\7\ in general, and furthers the 
objectives of Sections 6(b)(4) and (5) of the Act,\8\ 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.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(4) and (5).
---------------------------------------------------------------------------

    The Exchange believes the inclusion of the Floor executed QCCs 
under the Firm Cap is reasonable and not unfairly discriminatory 
because it would provide additional opportunities for Firms and Broker 
Dealers to achieve the Firm Cap, which may, in turn, encourage more 
business, not limited to QCC trades, to be brought to the Floor, which 
would benefit all market participants. The proposed change is 
reasonable, equitable and not unfairly discriminatory as the Firm Cap 
would not be meaningful for Customers or Professional Customers because 
neither Customers nor Professional Customers pay transaction charges 
for QCCs. The proposed change is also reasonable, equitable and not 
unfairly discriminatory towards Market Makers, as Market Makers are 
generally charged a lower fee for Manual executions, and have 
alternative avenues to reduce transaction fees.\9\ In addition, the 
Exchange believes that by including QCCs in the Firm Cap, thereby 
making the Cap more achievable and encouraging additional order flow 
not limited to QCCs, Market Makers are provided a greater opportunity 
to interact with order flow, which, in turn, benefits market 
participants.
---------------------------------------------------------------------------

    \9\ See generally Fee Schedule (various credits available to 
Market Makers for posted monthly volume, including for executions in 
Penny Pilot Issues and SPY).
---------------------------------------------------------------------------

    The Exchange also believes that the proposed change is reasonable 
because several competing options exchanges likewise include QCC 
transactions in monthly fee caps similar to Firm Cap.\10\
---------------------------------------------------------------------------

    \10\ See supra n. 6.
---------------------------------------------------------------------------

    The Exchange believes that its proposal to modify the name of this 
fee, as well as the language regarding the exclusion of Mini options 
from the Firm Cap to correct the erroneous reference to Strategy 
Executions, would add clarity and consistency to the Fee Schedule to 
the benefit of all market participants.
    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,\11\ 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. Instead, the Exchange believes that the 
proposed change would continue to encourage competition, including by 
attracting a wider variety of business to the Floor of the Exchange, 
which would continue to make the Exchange a more competitive venue for, 
among other things, order execution and price discovery. The Exchange 
believes the proposed fee change would not unduly burden any particular 
group of market participants trading on the Exchange vis-[agrave]-vis 
another group. Specifically, neither Customers nor Professional 
Customers are charged for QCC transactions. Moreover, Market Makers are 
generally charged a lower fee for Manual executions, and have 
alternative avenues to reduce transaction fees.\12\ In addition, the 
Exchange believes that by including QCCs in the Firm Cap, thereby 
making the Cap more achievable and encouraging additional order flow 
not limited to QCCs, Market Makers are provided a greater opportunity 
to interact with order flow, which, in turn, benefits market 
participants.
---------------------------------------------------------------------------

    \11\ 15 U.S.C. 78f(b)(8).
    \12\ See supra n. 9.
---------------------------------------------------------------------------

    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) \13\ of the Act and subparagraph (f)(2) of Rule 
19b-4 \14\ thereunder, because it establishes a due, fee, or other 
charge imposed by the Exchange.
---------------------------------------------------------------------------

    \13\ 15 U.S.C. 78s(b)(3)(A).
    \14\ 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

[[Page 43482]]

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) \15\ of the Act to determine whether the proposed 
rule change should be approved or disapproved.
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    \15\ 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-2015-62 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-2015-62. 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 Section, 100 F Street 
NE., Washington, DC 20549-1090. Copies of the filing will also be 
available for inspection and copying at the NYSE's principal office and 
on its Internet Web site at www.nyse.com. 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-2015-62 and should be submitted 
on or before August 12, 2015.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\16\
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    \16\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-17893 Filed 7-21-15; 8:45 am]
BILLING CODE 8011-01-P
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