Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending Its Price List to Modify Certain Fees for Transactions that Remove Liquidity from the Exchange, 70860-70862 [2015-28865]
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70860
Federal Register / Vol. 80, No. 220 / Monday, November 16, 2015 / Notices
arguments concerning whether
Amendments Nos. 1 and 2 are
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–
BATS–2015–56 on the subject line.
tkelley on DSK3SPTVN1PROD with NOTICES
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–BATS–2015–56. 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 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–BATS–
2015–56 and should be submitted on or
before December 7, 2015.
V. Accelerated Approval of Proposed
Rule Change as Modified by
Amendments Nos. 1 and 2
The Commission finds good cause to
approve the proposed rule change, as
modified by Amendments Nos. 1 and 2,
prior to the thirtieth day after the date
of publication of notice in the Federal
Register. No comments were received
after publication of the Notice.
VerDate Sep<11>2014
19:47 Nov 13, 2015
Jkt 238001
Amendments Nos. 1 and 2 only
supplement the proposed rule change
by clarifying certain points and
providing additional detail. Therefore,
the Commission finds good cause,
pursuant to Section 19(b)(2) of the
Act,31 to approve the proposed rule
change, as modified by Amendments
Nos. 1 and 2 on an accelerated basis.
VI. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Exchange Act,32
that the proposed rule change (SR–
BATS–2015–56), as modified by
Amendment Nos. 1 and 2, is hereby
approved on an accelerated basis.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.33
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015–28863 Filed 11–13–15; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–76400; File No. SR–NYSE–
2015–56]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change Amending Its
Price List to Modify Certain Fees for
Transactions that Remove Liquidity
from the Exchange
November 9, 2015.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934
(‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that, on
November 2, 2015, New York Stock
Exchange LLC (‘‘NYSE’’ or ‘‘Exchange’’)
filed with the Securities and Exchange
Commission (‘‘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 Substance of
the Proposed Rule Change
The Exchange proposes to amend its
Price List to modify certain fees for
transactions that remove liquidity from
31 15
U.S.C. 78s(b)(2).
U.S.C. 78s(b)(2).
33 17 CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
32 15
PO 00000
Frm 00114
Fmt 4703
Sfmt 4703
the Exchange, effective November 2,
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 Exchange proposes to amend its
Price List to increase certain fees that
remove liquidity from the Exchange,
effective November 2, 2015. The
proposed change would only apply to
transactions in securities priced $1.00 or
more.
In particular, the Exchange currently
charges $0.0027 per share for non-Floor
broker transactions that remove
liquidity from the Exchange, including
those of Designated Market Makers
(‘‘DMM’’). The Exchange proposes to
increase this fee to $0.00275 per share.
Similarly, the Exchange currently
charges $0.0027 per share for all
Midpoint Passive Liquidity (‘‘MPL’’)
Orders 4 that remove liquidity from the
Exchange and are not designated with a
Retail Modifier as defined in Rule 13.
The Exchange proposes to increase the
fee for executions of MPL Orders that
remove liquidity from the NYSE to
$0.00275 per share.
The Exchange currently charges
$0.0024 per share or $0.0027 if an MPL
Order for all other Floor broker
transactions that remove liquidity from
the Exchange. MPL orders designated
with a Retail Modifier as defined in
Rule 13 are not charged a fee. The
Exchange proposes to increase the
$0.0027 per share fee for Floor broker
MPL Orders that take liquidity from the
4 MPL Order is defined in Rule 13 as an
undisplayed limit order that automatically executes
at the mid-point of the protected best bid or offer
(‘‘PBBO’’).
E:\FR\FM\16NON1.SGM
16NON1
Federal Register / Vol. 80, No. 220 / Monday, November 16, 2015 / Notices
NYSE to $0.00275 per share. The
current $0.0024 per share fee for Floor
broker transactions that take liquidity
from the Exchange would remain
unchanged.
The proposed change is not otherwise
intended to address any other issues,
and the Exchange is not aware of any
problems that member organizations
would have in complying with the
proposed change.
tkelley on DSK3SPTVN1PROD with NOTICES
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 6(b)(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 fee increase for non-Floor
broker transactions that remove
liquidity is reasonable because nonFloor brokers would continue to receive
credits for their transactions that
provide liquidity on the Exchange,
including (i) for member organizations
that add liquidity that satisfies certain
thresholds under the Tier Adding
Credits, (ii) for DMMs under the DMM
credits, and (iii) for MPL Orders under
various pricing categories in the Price
List. The resulting fee also is equitable
and not unfairly discriminatory because
it would continue to be consistent with,
and in some cases lower than, the
applicable rate on other marketplaces.
For example, the standard fee for
removing liquidity from NASDAQ in
both NASDAQ-listed and NYSE-listed
securities is $0.0030 per share, which is
higher than the proposed $0.00275 per
share fee.7
The Exchange believes that the
proposed increase to the fee for
executions of MPL Orders, including
Floor broker MPL orders, that remove
liquidity from the Exchange is
reasonable because the charge would be
the same as the $0.00275 per share fee
proposed for all other non-Floor broker
transactions that take liquidity from the
NYSE. The proposed fee is also
reasonable because it would be lower
than the applicable rate on other
5 15
U.S.C. 78f(b).
U.S.C. 78f(b)(4) and (5).
7 See, e.g., NASDAQ Rule 7018(d). The fee for
removing liquidity on NYSE Arca is also $0.0030.
See NYSE Arca Equities, Inc., Schedule of Fees and
Charges, available at https://www.nyse.com/
publicdocs/nyse/markets/nyse-arca/NYSE_Arca_
Marketplace_Fees.pdf.
6 15
VerDate Sep<11>2014
19:47 Nov 13, 2015
Jkt 238001
marketplaces. For example, NASDAQ
charges $0.0030 per share to execute
against resting midpoint liquidity,
which is greater than both the existing
$0.0027 per share rate and the proposed
$0.00275 per share rate that would
apply to MPL Orders.8
The Exchange believes that the
proposed fee increase for MPL Orders,
including Floor broker MPL orders, that
remove liquidity from the Exchange is
equitable and not unfairly
discriminatory because MPL Orders
may provide opportunities for market
participants to interact with orders
priced at the midpoint of the PBBO,
thus providing price improving
liquidity to market participants and
thereby increase the quality of order
execution on the Exchange’s market,
which benefits all market participants.
The Exchange also believes the
proposed fee is equitable and not
unfairly discriminatory because all
market participants that use the MPL
Order type will pay the same proposed
fee.
The Exchange also believes it is
equitable and not unfairly
discriminatory to continue to charge
Floor brokers that take liquidity a lower
fee ($0.0024) than non-Floor brokers
that take liquidity because Floor brokers
have slower access to the Exchange (via
handheld technology) than non-Floor
brokers and are prohibited from routing
directly to other market centers from
handheld devices, which prevents them
from accessing any associated pricing
opportunities that might exist at those
away markets.
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,9 the Exchange believes that the
proposed rule change would not 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 encourage the submission
of additional liquidity to a public
exchange, thereby promoting price
discovery and transparency and
enhancing order execution
opportunities for member organizations.
The Exchange believes that this could
promote competition between the
Exchange and other execution venues,
including those that currently offer
similar order types and comparable
transaction pricing, by encouraging
additional orders to be sent to the
Exchange for execution.
Finally, the Exchange notes that it
operates in a highly competitive market
in which market participants can
readily favor competing venues if they
deem fee levels at a particular venue to
be excessive or rebate opportunities
available at other venues to be more
favorable. In such an environment, the
Exchange must continually adjust its
fees and rebates to remain competitive
with other exchanges and with
alternative trading systems that have
been exempted from compliance with
the statutory standards applicable to
exchanges. Because competitors are free
to modify their own fees and credits in
response, and because market
participants may readily adjust their
order routing practices, the Exchange
believes that the degree to which fee
changes in this market may impose any
burden on competition is extremely
limited. As a result of all of these
considerations, the Exchange does not
believe that the proposed changes will
impair the ability of member
organizations or competing order
execution venues to maintain their
competitive standing in the financial
markets.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were solicited
or received with respect to the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change is effective
upon filing pursuant to Section
19(b)(3)(A) 10 of the Act and
subparagraph (f)(2) of Rule 19b–4 11
thereunder, because it establishes a due,
fee, or other charge imposed by the
Exchange.
At any time within 60 days of the
filing of such proposed rule change, the
Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act. If the
Commission takes such action, the
8 See,
10 15
9 15
11 17
PO 00000
e.g., NASDAQ Rule 7018(a).
U.S.C. 78f(b)(8).
Frm 00115
Fmt 4703
Sfmt 4703
70861
E:\FR\FM\16NON1.SGM
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(2).
16NON1
70862
Federal Register / Vol. 80, No. 220 / Monday, November 16, 2015 / Notices
Commission shall institute proceedings
under Section 19(b)(2)(B) 12 of the Act to
determine whether the proposed rule
change should be approved or
disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
NYSE–2015–56 on the subject line.
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–NYSE–2015–56. 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–NYSE–
12 15
U.S.C. 78s(b)(2)(B).
VerDate Sep<11>2014
19:47 Nov 13, 2015
2015–56 and should be submitted on or
before December 7, 2015.13
SECURITIES AND EXCHANGE
COMMISSION
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.
Robert W. Errett,
Deputy Secretary.
[Release No. 34–76391; File No. SR–FINRA–
2015–044]
[FR Doc. 2015–28865 Filed 11–13–15; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
November 9, 2015.
[File No. 500–1]
In the Matter of Tirex Corporation,
Order of Suspension of Trading
November 12, 2015.
It appears to the Securities and
Exchange Commission that there is a
lack of current and accurate information
concerning the securities of The Tirex
Corporation (‘‘Tirex’’) because it has not
filed any periodic reports since it filed
a Form 10–K for the period ended June
30, 2009 on March 1, 2011. Tirex is a
Delaware corporation based in Wilton,
Connecticut. Its securities are quoted on
OTC Link (previously ‘‘Pink Sheets’’),
operated by OTC Markets Group, Inc.
under the ticker symbol ‘‘TXMC.’’
The Commission is of the opinion that
the public interest and the protection of
investors require a suspension of trading
in the securities of the above-listed
company.
Therefore, it is ordered, pursuant to
Section 12(k) of the Securities Exchange
Act of 1934, that trading in the
securities of the above-listed company is
suspended for the period from 9:30 a.m.
EST on November 12, 2015, through
11:59 p.m. EST on November 25, 2015.
By the Commission.
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2015–29287 Filed 11–12–15; 4:15 pm]
BILLING CODE 8011–01–P
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
notice is hereby given that on October
29, 2015, Financial Industry Regulatory
Authority, Inc. (‘‘FINRA’’) 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 FINRA. FINRA has
designated the proposed rule change as
‘‘establishing or changing a due, fee or
other charge’’ under Section
19(b)(3)(A)(ii) of the Act 3 and Rule 19b–
4(f)(2) thereunder,4 which renders the
proposal effective upon receipt of this
filing by the Commission. 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
FINRA is proposing to amend Section
4(c) of Schedule A to the FINRA ByLaws to establish an examination fee for
the Securities Trader qualification
examination (Series 57).
The text of the proposed rule change
is available on FINRA’s Web site at
https://www.finra.org, at the principal
office of FINRA 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,
FINRA 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. FINRA has prepared
summaries, set forth in sections A, B,
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(ii).
4 17 CFR 240.19b–4(f)(2).
2 17
13 17
Jkt 238001
Self-Regulatory Organizations;
Financial Industry Regulatory
Authority, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Establish an
Examination Fee for the Securities
Trader Qualification Examination
(Series 57)
PO 00000
CFR 200.30–3(a)(12).
Frm 00116
Fmt 4703
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E:\FR\FM\16NON1.SGM
16NON1
Agencies
[Federal Register Volume 80, Number 220 (Monday, November 16, 2015)]
[Notices]
[Pages 70860-70862]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-28865]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-76400; File No. SR-NYSE-2015-56]
Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Amending Its Price List to Modify Certain Fees for Transactions that
Remove Liquidity from the Exchange
November 9, 2015.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given
that, on November 2, 2015, New York Stock Exchange LLC (``NYSE'' or
``Exchange'') filed with the Securities and Exchange Commission
(``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 Substance
of the Proposed Rule Change
The Exchange proposes to amend its Price List to modify certain
fees for transactions that remove liquidity from the Exchange,
effective November 2, 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 Exchange proposes to amend its Price List to increase certain
fees that remove liquidity from the Exchange, effective November 2,
2015. The proposed change would only apply to transactions in
securities priced $1.00 or more.
In particular, the Exchange currently charges $0.0027 per share for
non-Floor broker transactions that remove liquidity from the Exchange,
including those of Designated Market Makers (``DMM''). The Exchange
proposes to increase this fee to $0.00275 per share.
Similarly, the Exchange currently charges $0.0027 per share for all
Midpoint Passive Liquidity (``MPL'') Orders \4\ that remove liquidity
from the Exchange and are not designated with a Retail Modifier as
defined in Rule 13. The Exchange proposes to increase the fee for
executions of MPL Orders that remove liquidity from the NYSE to
$0.00275 per share.
---------------------------------------------------------------------------
\4\ MPL Order is defined in Rule 13 as an undisplayed limit
order that automatically executes at the mid-point of the protected
best bid or offer (``PBBO'').
---------------------------------------------------------------------------
The Exchange currently charges $0.0024 per share or $0.0027 if an
MPL Order for all other Floor broker transactions that remove liquidity
from the Exchange. MPL orders designated with a Retail Modifier as
defined in Rule 13 are not charged a fee. The Exchange proposes to
increase the $0.0027 per share fee for Floor broker MPL Orders that
take liquidity from the
[[Page 70861]]
NYSE to $0.00275 per share. The current $0.0024 per share fee for Floor
broker transactions that take liquidity from the Exchange would remain
unchanged.
The proposed change is not otherwise intended to address any other
issues, and the Exchange is not aware of any problems that member
organizations 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 6(b)(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 fee increase for non-Floor
broker transactions that remove liquidity is reasonable because non-
Floor brokers would continue to receive credits for their transactions
that provide liquidity on the Exchange, including (i) for member
organizations that add liquidity that satisfies certain thresholds
under the Tier Adding Credits, (ii) for DMMs under the DMM credits, and
(iii) for MPL Orders under various pricing categories in the Price
List. The resulting fee also is equitable and not unfairly
discriminatory because it would continue to be consistent with, and in
some cases lower than, the applicable rate on other marketplaces. For
example, the standard fee for removing liquidity from NASDAQ in both
NASDAQ-listed and NYSE-listed securities is $0.0030 per share, which is
higher than the proposed $0.00275 per share fee.\7\
---------------------------------------------------------------------------
\7\ See, e.g., NASDAQ Rule 7018(d). The fee for removing
liquidity on NYSE Arca is also $0.0030. See NYSE Arca Equities,
Inc., Schedule of Fees and Charges, available at https://www.nyse.com/publicdocs/nyse/markets/nyse-arca/NYSE_Arca_Marketplace_Fees.pdf.
---------------------------------------------------------------------------
The Exchange believes that the proposed increase to the fee for
executions of MPL Orders, including Floor broker MPL orders, that
remove liquidity from the Exchange is reasonable because the charge
would be the same as the $0.00275 per share fee proposed for all other
non-Floor broker transactions that take liquidity from the NYSE. The
proposed fee is also reasonable because it would be lower than the
applicable rate on other marketplaces. For example, NASDAQ charges
$0.0030 per share to execute against resting midpoint liquidity, which
is greater than both the existing $0.0027 per share rate and the
proposed $0.00275 per share rate that would apply to MPL Orders.\8\
---------------------------------------------------------------------------
\8\ See, e.g., NASDAQ Rule 7018(a).
---------------------------------------------------------------------------
The Exchange believes that the proposed fee increase for MPL
Orders, including Floor broker MPL orders, that remove liquidity from
the Exchange is equitable and not unfairly discriminatory because MPL
Orders may provide opportunities for market participants to interact
with orders priced at the midpoint of the PBBO, thus providing price
improving liquidity to market participants and thereby increase the
quality of order execution on the Exchange's market, which benefits all
market participants. The Exchange also believes the proposed fee is
equitable and not unfairly discriminatory because all market
participants that use the MPL Order type will pay the same proposed
fee.
The Exchange also believes it is equitable and not unfairly
discriminatory to continue to charge Floor brokers that take liquidity
a lower fee ($0.0024) than non-Floor brokers that take liquidity
because Floor brokers have slower access to the Exchange (via handheld
technology) than non-Floor brokers and are prohibited from routing
directly to other market centers from handheld devices, which prevents
them from accessing any associated pricing opportunities that might
exist at those away markets.
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,\9\ the Exchange
believes that the proposed rule change would not 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 encourage the submission of additional liquidity to a
public exchange, thereby promoting price discovery and transparency and
enhancing order execution opportunities for member organizations. The
Exchange believes that this could promote competition between the
Exchange and other execution venues, including those that currently
offer similar order types and comparable transaction pricing, by
encouraging additional orders to be sent to the Exchange for execution.
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\9\ 15 U.S.C. 78f(b)(8).
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Finally, the Exchange notes that it operates in a highly
competitive market in which market participants can readily favor
competing venues if they deem fee levels at a particular venue to be
excessive or rebate opportunities available at other venues to be more
favorable. In such an environment, the Exchange must continually adjust
its fees and rebates to remain competitive with other exchanges and
with alternative trading systems that have been exempted from
compliance with the statutory standards applicable to exchanges.
Because competitors are free to modify their own fees and credits in
response, and because market participants may readily adjust their
order routing practices, the Exchange believes that the degree to which
fee changes in this market may impose any burden on competition is
extremely limited. As a result of all of these considerations, the
Exchange does not believe that the proposed changes will impair the
ability of member organizations or competing order execution venues to
maintain their competitive standing in the financial markets.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were solicited or received with respect to the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change is effective upon filing pursuant to
Section 19(b)(3)(A) \10\ of the Act and subparagraph (f)(2) of Rule
19b-4 \11\ thereunder, because it establishes a due, fee, or other
charge imposed by the Exchange.
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\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 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
[[Page 70862]]
Commission shall institute proceedings under Section 19(b)(2)(B) \12\
of the Act to determine whether the proposed rule change should be
approved or disapproved.
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\12\ 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-NYSE-2015-56 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-NYSE-2015-56. 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-NYSE-2015-56 and should be
submitted on or before December 7, 2015.\13\
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\13\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-28865 Filed 11-13-15; 8:45 am]
BILLING CODE 8011-01-P