Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Modifying the NYSE Amex Options Fee Schedule Related to the Amex Customer Engagement Program, 65833-65835 [2015-27218]
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Federal Register / Vol. 80, No. 207 / Tuesday, October 27, 2015 / Notices
Exchange also proposes to adopt new
Exchange Rule 11.1(a)(1) to define
Effective Start Time, an order
instruction that would allow Members 3
to indicate a time upon which their
order may become eligible for
execution. The proposed rule change
was published for comment in the
Federal Register on September 10,
2015.4
Section 19(b)(2) of the Act 5 provides
that, within 45 days of the publication
of notice of the filing of a proposed rule
change, or within such longer period up
to 90 days as the Commission may
designate if it finds such longer period
to be appropriate and publishes its
reasons for so finding or as to which the
self-regulatory organization consents,
the Commission shall either approve the
proposed rule change, disapprove the
proposed rule change, or institute
proceedings to determine whether the
proposed rule change should be
disapproved. The Commission is
extending this 45-day time period. The
Commission finds that it is appropriate
to designate a longer period within
which to take action on the proposed
rule change so that it has sufficient time
to consider the proposed rule change.
Accordingly, the Commission,
pursuant to Section 19(b)(2) of the Act,6
designates December 9, 2015, as the date
by which the Commission shall either
approve or disapprove or institute
proceedings to determine whether to
disapprove the proposed rule change
(File Number SR–BATS–2015–69).
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.7
Brent J. Fields,
Secretary.
[FR Doc. 2015–27222 Filed 10–26–15; 8:45 am]
tkelley on DSK3SPTVN1PROD with NOTICES
3 The term ‘‘Member’’ is defined as ‘‘any
registered broker or dealer that has been admitted
to membership in the Exchange.’’ See Exchange
Rule 1.5(n).
4 See Securities Exchange Act Release No. 75832
(September 3, 2015), 80 FR 54614 (SR–BATS–2015–
69).
5 15 U.S.C. 78s(b)(2).
6 Id.
7 17 CFR 200.30–3(a)(31).
18:24 Oct 26, 2015
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[Release No. 34–76208; File No. SR–
NYSEMKT–2015–78]
Self-Regulatory Organizations; NYSE
MKT LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Modifying the NYSE
Amex Options Fee Schedule Related to
the Amex Customer Engagement
Program
October 21, 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 October
15, 2015, NYSE MKT LLC (the
‘‘Exchange’’ or ‘‘NYSE MKT’’) filed with
the Securities and Exchange
Commission (the ‘‘Commission’’) the
proposed rule change as described in
Items I, II, and III below, which Items
have been prepared by the selfregulatory organization. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of the Substance
of the Proposed Rule Change
The Exchange proposes to 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
October 15, 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
BILLING CODE 8011–01–P
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SECURITIES AND EXCHANGE
COMMISSION
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.
1 15
U.S.C. 78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
2 15
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65833
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of this filing is to
increase the credits available to
participants that achieve Tier 2 of the
ACE Program as described below.
Section I.E. of the Fee Schedule
describes the ACE Program,4 which
features five tiers expressed as a
percentage of total industry Customer
equity and ETF option average daily
volume (‘‘ADV’’).5 Order Flow Providers
(‘‘OFPs’’) receive per contract credits
solely for Electronic Customer volume
that the OFP, as agent, submits to the
Exchange.6 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; 7 or
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
percentage of total average daily
industry Customer equity and ETF
option volume,8 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
4 See NYSE Amex Options Fee Schedule,
available here, https://www.theice.com/publicdocs/
nyse/markets/amex-options/NYSE_Amex_Options_
Fee_Schedule.pdf.
5 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).
6 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.
7 See supra n. 5
8 Id.
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Federal Register / Vol. 80, No. 207 / Tuesday, October 27, 2015 / Notices
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.9
The Exchange proposes to modify the
ACE Program by increasing the credits
available for Tier 2 as illustrated in the
ACE program—standard options
table below, with proposed additions
appearing italicized and proposed
deletions appearing in brackets:
*
*
*
*
*
Credits payable on customer volume only
Customer electronic ADV as a % of
industry customer equity and ETF
Options ADV
OR
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
1 ........
2 ........
0.00% to 0.60% ..............................
>0.60% to 0.80% ............................
............
............
N/A ..................................................
N/A ..................................................
$0.00
($0.13)
3 ........
>0.80% to 1.25% ............................
............
4 ........
>1.25 to 1.75% ...............................
............
5 ........
>1.75% ............................................
............
1.50% to 2.50% 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.
Tier
tkelley on DSK3SPTVN1PROD with NOTICES
The proposed amendments to the
ACE Program are designed to enhance
the rebates, which the Exchange
believes would attract more volume and
liquidity to the Exchange to the benefit
of 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,10 in general, and
furthers the objectives of Sections
6(b)(4) and (5) of the Act,11 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 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.
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
9 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,
VerDate Sep<11>2014
18:24 Oct 26, 2015
Jkt 238001
the ACE Program. Additionally, the
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,12 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
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
certain volumes are excluded (e.g., QCC trades). See
Fee Schedule (Section I.E.), supra n. 4.
10 15 U.S.C. 78f(b).
11 15 U.S.C. 78f(b)(4) and (5).
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Fmt 4703
Sfmt 4703
Customer
volume
credits
1 Year
enhanced
customer
volume
credits
3 Year
enhanced
customer
volume
credits
($0.14)
$0.00
[($0.13)]
($0.15)
($0.16)
$0.00
[($0.13)]
($0.16)
($0.18)
($0.17)
($0.19)
($0.21)
($0.19)
($0.21)
($0.23)
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
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
12 15
U.S.C. 78f(b)(8).
U.S.C. 78s(b)(3)(A).
14 17 CFR 240.19b–4(f)(2).
15 15 U.S.C. 78s(b)(2)(B).
13 15
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Federal Register / Vol. 80, No. 207 / Tuesday, October 27, 2015 / Notices
65835
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.16
Brent J. Fields,
Secretary.
SECURITIES AND EXCHANGE
COMMISSION
[FR Doc. 2015–27218 Filed 10–26–15; 8:45 am]
SECURITIES AND EXCHANGE
COMMISSION
Self-Regulatory Organizations; EDGA
Exchange, Inc.; Notice of Designation
of a Longer Period for Commission
Action on a Proposed Rule Change To
Amend Rules 1.5(s), 11.1(a)(1), 11.6
and 11.8
Electronic Comments
Sunshine Act Meeting
October 21, 2015.
• 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–2015–78 on the subject line.
Notice is hereby given, pursuant to
the provisions of the Government in the
Sunshine Act, Public Law 94–409, that
the Securities and Exchange
Commission will hold a Closed Meeting
on Thursday, October 29, 2015 at 12:00
p.m.
Commissioners, Counsel to the
Commissioners, the Secretary to the
Commission, and recording secretaries
will attend the Closed Meeting. Certain
staff members who have an interest in
the matters also may be present.
The General Counsel of the
Commission, or her designee, has
certified that, in her opinion, one or
more of the exemptions set forth in 5
U.S.C. 552b(c)(3), (5), (7), 9(B) and (10)
and 17 CFR 200.402(a)(3), (5), (7), 9(ii)
and (10), permit consideration of the
scheduled matter at the Closed Meeting.
Commissioner Stein, as duty officer,
voted to consider the items listed for the
Closed Meeting in closed session.
The subject matter of the Closed
Meeting will be:
Institution and settlement of
injunctive actions;
Institution and settlement of
administrative proceedings;
Adjudicatory matters;
Opinion;
Post argument discussion; and
Other matters relating to enforcement
proceedings.
At times, changes in Commission
priorities require alterations in the
scheduling of meeting items.
For further information and to
ascertain what, if any, matters have been
added, deleted or postponed, please
contact the Office of the Secretary at
(202) 551–5400.
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:
Paper Comments
tkelley on DSK3SPTVN1PROD with NOTICES
• 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–2015–78. 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–
NYSEMKT–2015–78, and should be
submitted on or before November 17,
2015.
VerDate Sep<11>2014
18:24 Oct 26, 2015
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BILLING CODE 8011–01–P
[FR Doc. 2015–27394 Filed 10–23–15; 11:15 am]
16 17
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CFR 200.30–3(a)(12).
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On September 3, 2015, EDGA
Exchange, Inc. (the ‘‘Exchange’’ or
‘‘EDGA’’) filed with the Securities and
Exchange Commission (‘‘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 change to amend rules
related to the Pre-Opening Session,
including revising: (1) Exchange Rule
1.5(s) to state that the Pre-Opening
Session will start at 7:00 a.m. rather
than 8:00 a.m. Eastern Time and (2)
Exchange Rule 11.1(a)(1) regarding the
hours of trading and trading days of the
Exchange to account for the PreOpening Session starting at 7:00 a.m.
Eastern Time. The Exchange also
proposes to adopt a new order
instruction, Effective Start Time,
including revising: (1) Exchange Rule
11.6 to define Effective Start Time as an
order instruction that would allow
Members 3 to indicate a time upon
which their order may become eligible
for execution and (2) Exchange Rule
11.8 to identify the order types that may
utilize an Effective Start Time order
instruction. The proposed rule change
was published for comment in the
Federal Register on September 10,
2015.4
Section 19(b)(2) of the Act 5 provides
that, within 45 days of the publication
of notice of the filing of a proposed rule
change, or within such longer period up
to 90 days as the Commission may
designate if it finds such longer period
to be appropriate and publishes its
reasons for so finding or as to which the
self-regulatory organization consents,
the Commission shall either approve the
proposed rule change, disapprove the
proposed rule change, or institute
proceedings to determine whether the
proposed rule change should be
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 The term ‘‘Member’’ is defined as ‘‘any
registered broker or dealer that has been admitted
to membership in the Exchange.’’ See Exchange
Rule 1.5(n).
4 See Securities Exchange Act Release No. 75835
(September 3, 2015), 80 FR 54635 (SR–EDGA–
2015–36).
5 15 U.S.C. 78s(b)(2).
2 17
Dated: October 22, 2015.
Brent J. Fields,
Secretary.
BILLING CODE 8011–01–P
[Release No. 34–76210; File No. SR–EDGA–
2015–36]
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]]>Agencies
[Federal Register Volume 80, Number 207 (Tuesday, October 27, 2015)]
[Notices]
[Pages 65833-65835]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-27218]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-76208; File No. SR-NYSEMKT-2015-78]
Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and
Immediate Effectiveness of Proposed Rule Change Modifying the NYSE Amex
Options Fee Schedule Related to the Amex Customer Engagement Program
October 21, 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 October 15, 2015, NYSE MKT LLC (the ``Exchange'' or
``NYSE MKT'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I, II,
and III below, which Items have been prepared by the self-regulatory
organization. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of the
Substance of the Proposed Rule Change
The Exchange proposes to 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
October 15, 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
Statutory Basis for, the Proposed Rule Change
1. Purpose
The purpose of this filing is to increase the credits available to
participants that achieve Tier 2 of the ACE Program as described below.
Section I.E. of the Fee Schedule describes the ACE Program,\4\
which features five tiers expressed as a percentage of total industry
Customer equity and ETF option average daily volume (``ADV'').\5\ Order
Flow Providers (``OFPs'') receive per contract credits solely for
Electronic Customer volume that the OFP, as agent, submits to the
Exchange.\6\ The ACE Program offers the following two methods for OFPs
to receive credits:
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\4\ See NYSE Amex Options Fee Schedule, available here, https://www.theice.com/publicdocs/nyse/markets/amex-options/NYSE_Amex_Options_Fee_Schedule.pdf.
\5\ 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).
\6\ 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; \7\ or
---------------------------------------------------------------------------
\7\ See supra n. 5
---------------------------------------------------------------------------
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 percentage of total average daily industry Customer equity and ETF
option volume,\8\ with the further requirement that a specified
percentage of the minimum volume required to qualify for the Tier must
be Customer volume.
---------------------------------------------------------------------------
\8\ Id.
---------------------------------------------------------------------------
Upon reaching a higher tier, an OFP would receive for all eligible
Customer
[[Page 65834]]
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.\9\
---------------------------------------------------------------------------
\9\ 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. 4.
---------------------------------------------------------------------------
The Exchange proposes to modify the ACE Program by increasing the
credits available for Tier 2 as illustrated in the table below, with
proposed additions appearing italicized 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
Customer electronic minimum qualifying 1 Year 3 Year
Tier ADV as a % of volume for each Customer enhanced enhanced
industry customer OR tier must be volume customer customer
equity and ETF customer) as a % of credits volume volume
Options ADV industry customer credits credits
equity and ETF
options ADV
----------------------------------------------------------------------------------------------------------------
1............ 0.00% to 0.60%..... ....... N/A................ $0.00 $0.00 $0.00
2............ >0.60% to 0.80%.... ....... N/A................ ($0.13) [($0.13)] [($0.13)]
($0.15) ($0.16)
3............ >0.80% to 1.25%.... ....... 1.50% to 2.50% of ($0.14) ($0.16) ($0.18)
which 20% or
greater of 1.50%
must be Customer.
4............ >1.25 to 1.75%..... ....... >2.50% to 3.50% of ($0.17) ($0.19) ($0.21)
which 20% or
greater of 2.50%
must be Customer.
5............ >1.75%............. ....... >3.50% of which 20% ($0.19) ($0.21) ($0.23)
or greater of 3.5%
must be Customer.
----------------------------------------------------------------------------------------------------------------
The proposed amendments to the ACE Program are designed to enhance
the rebates, which the Exchange believes would attract more volume and
liquidity to the Exchange to the benefit of 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,\10\ in general, and furthers the
objectives of Sections 6(b)(4) and (5) of the Act,\11\ 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.
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\10\ 15 U.S.C. 78f(b).
\11\ 15 U.S.C. 78f(b)(4) and (5).
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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. 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 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,\12\ 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 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.
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\12\ 15 U.S.C. 78f(b)(8).
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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.
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\13\ 15 U.S.C. 78s(b)(3)(A).
\14\ 17 CFR 240.19b-4(f)(2).
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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) \15\ of the Act to determine whether the proposed
rule
[[Page 65835]]
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-NYSEMKT-2015-78 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-2015-78. 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-NYSEMKT-2015-78, and should
be submitted on or before November 17, 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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Brent J. Fields,
Secretary.
[FR Doc. 2015-27218 Filed 10-26-15; 8:45 am]
BILLING CODE 8011-01-P
