Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending the NYSE Arca Options Fee Schedule, 23066-23068 [2016-08946]
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23066
Federal Register / Vol. 81, No. 75 / Tuesday, April 19, 2016 / Notices
Sale Period. Accordingly, the proposal
is designed to incentivize and reward
aggressive displayed quoting by market
participants, which would remove
impediments to and perfect the
mechanism of a free and open market
and national market system by
contributing to the market quality of the
Exchange and the national market
system in general. In this regard, the
Exchange believes that this proposed
change would have positive impact on
the Exchange’s market, on the
Exchange’s members, and on investors
generally by promoting the display of
aggressively-priced liquidity on a
registered exchange.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. The
proposed change is not designed to
address any competitive issue but rather
to promote the additional display of
aggressively-priced liquidity on the
Exchange by allowing interest that sets
a new Exchange BBO to be considered
setting interest even if other orders react
and re-price based on such interest
setting a new Exchange BBO.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were solicited
or received with respect to the proposed
rule change.
mstockstill on DSK4VPTVN1PROD with NOTICES
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The Exchange has filed the proposed
rule change pursuant to section
19(b)(3)(A)(iii) of the Act 15 and Rule
19b–4(f)(6) thereunder.16 Because the
proposed rule change does not: (i)
Significantly affect the protection of
investors or the public interest; (ii)
impose any significant burden on
competition; and (iii) become operative
prior to 30 days from the date on which
it was filed, or such shorter time as the
Commission may designate, if
consistent with the protection of
investors and the public interest, the
proposed rule change has become
effective pursuant to section 19(b)(3)(A)
of the Act and Rule 19b–4(f)(6)(iii)
thereunder.
A proposed rule change filed under
Rule 19b–4(f)(6) 17 normally does not
become operative prior to 30 days after
the date of the filing. However, pursuant
to Rule 19b–4(f)(6)(iii),18 the
Commission may designate a shorter
time if such action is consistent with the
protection of investors and the public
interest.
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) 19 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.shtm); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
NYSE–2016–28 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–NYSE–2016–28. 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
16 17
CFR 240.19b–4(f)(6).
18 17 CFR 240.19b–4(f)(6)(iii).
19 15 U.S.C. 78s(b)(2)(B).
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
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For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.20
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016–08968 Filed 4–18–16; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–77610; File No. SR–
NYSEArca–2016–55]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Amending the NYSE Arca
Options Fee Schedule
April 13, 2016.
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 April 1,
2016, 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
20 17
17 17
15 15
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–NYSE–2016–28 and
should be submitted on or before May
10, 2016.
PO 00000
Frm 00103
Fmt 4703
Sfmt 4703
CFR 200.30–3(a)(12).
U.S.C.78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
1 15
E:\FR\FM\19APN1.SGM
19APN1
Federal Register / Vol. 81, No. 75 / Tuesday, April 19, 2016 / Notices
Schedule’’). The Exchange proposes to
implement the fee change effective
April 1, 2016. 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
mstockstill on DSK4VPTVN1PROD with NOTICES
The purpose of this filing is to modify
a criterion used for Lead Market Makers
and Market Makers (collectively,
‘‘Market Makers’’) to qualify for the
Super Tier level of the Monthly Posting
Credit Tiers For Executions in Penny
Pilot Issues and SPY (the ‘‘Posting
Tiers’’). The Exchange proposes to
implement the fee change effective
April 1, 2016.
Currently, Market Makers qualify for
the Posting Tiers by achieving certain
percentages of Total Industry Customer
Equity and exchange traded fund
(‘‘ETF’’) option ADV (‘‘ICADV’’).4 The
Posting Tiers include the Select, Super
and Super II tiers and the volume
requirements to achieve each are as
follows: 5
• Select Tier: A Market Maker
achieve at least 0.25% of ICADV from
Market Maker Posted Orders in both
Penny Pilot and non-Penny Pilot issues;
4 The volume thresholds are based on Market
Makers’ volume transacted electronically as a
percentage of total industry Customer equity and
ETF options volumes as reported by the Options
Clearing Corporation (the ‘‘OCC’’). Total industry
Customer equity and ETF option volume is
comprised of those equity and ETF contracts that
clear in the Customer account type at OCC and does
not include contracts that clear in either the Firm
or Market Maker account type at OCC or contracts
overlying a security other than an equity or ETF
security. See OCC Monthly Statistics Reports,
available here, https://www.theocc.com/webapps/
monthly-volume-reports.
5 The Exchange notes that there is a posting credit
of $0.28 associated with a Base Tier for which there
is no volume requirement.
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18:02 Apr 18, 2016
Jkt 238001
• Super Tier: A Market Maker achieve
either (i) at least 0.65% of ICADV from
Market Maker Posted Orders in both
Penny Pilot and non-Penny Pilot issues
or (ii) at least 1.60% of ICADV from all
orders in Penny Pilot Issues, all account
types, with at least 0.80% of ICADV
from Posted Orders in Penny Pilot
Issues. As is the case today, in
calculating the Super Tier, the Exchange
will include the ADV of the Market
Maker’s affiliate(s); and
• Super Tier II: A Market Maker must
achieve at least 1.60% of ICADV from
Market Maker Posted Orders, and at
least 0.90% of ICADV from Posted
Orders from both Penny Pilot and nonPenny Pilot issues.6
The Exchange is proposing to modify
one of the alternative criteria to qualify
for the Super Tier, by reducing the
percentages of ICADV from 0.65% of
ICADV to 0.55% of ICADV from Market
Maker Posted Orders in All Issues.7 The
Exchange believes this modification
would encourage more Market Makers
to achieve Super Tier, which in turn
would improve the Posted Markets in
all issues.
The Exchange is not proposing any
changes to the amount of the Posting
Credits for any of the tiers.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
section 6(b) of the Act,8 in general, and
furthers the objectives of sections 6(b)(4)
and (5) of the Act,9 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 change to the Super Tier is
reasonable, equitable, and not unfairly
discriminatory because it is designed to
encourage Market Makers to achieve the
Super Tier by posting volume on the
Exchange, which additional liquidity
would benefit all participants by
offering greater price discovery,
increased transparency, and an
increased opportunity to trade on the
Exchange. The Exchange believes that
modifying the Super Tier qualification
is also not unfairly discriminatory as it
6 The Commission notes that a Market Maker
alternatively can qualify for Super Tier II by
achieving at least 1.60% of ICADV from Customer
and Professional Customer orders, with at least
1.20% of ICADV from Customer and Professional
Customer Posted Orders in all Issues.
7 See supra n. 4.
8 15 U.S.C. 78f(b).
9 15 U.S.C. 78f(b)(4) and (5).
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Fmt 4703
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23067
applies to all Market Makers and may
enable more Market Makers to meet the
Super Tier on a more consistent basis
because, as proposed, the threshold has
been lowered slightly.
The Exchange also believes that the
proposed change to the qualification
criteria is reasonable equitable, and not
unfairly discriminatory, as the Posting
Credits are intended to encourage
quoting at the National Best Bid and
Offer (‘‘NBBO’’) which in turn benefits
both Customers and non-Customers by
having narrower spreads available for
execution.
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,10 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 encourage
competition, including by attracting a
wider variety of business to the
Exchange, which would make the
Exchange a more competitive venue for,
among other things, order execution and
price discovery. Moreover, because the
proposed change to the Super Tier
continues to be based on the amount of
business conducted on the Exchange, it
would apply equally to similarlysituated Marker Makers and would not
impose a disparate burden on
competition either among or between
classes of 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.
10 15
E:\FR\FM\19APN1.SGM
U.S.C. 78f(b)(8).
19APN1
23068
Federal Register / Vol. 81, No. 75 / Tuesday, April 19, 2016 / Notices
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change is effective
upon filing pursuant to section
19(b)(3)(A) 11 of the Act and
subparagraph (f)(2) of Rule 19b–4 12
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) 13 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:
mstockstill on DSK4VPTVN1PROD with NOTICES
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
NYSEArca–2016–55 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–NYSEArca–2016–55. 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
11 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(2).
13 15 U.S.C. 78s(b)(2)(B).
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–
NYSEArca–2016–55, and should be
submitted on or before May 10, 2016.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016–08946 Filed 4–18–16; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Investment Company Act Release No.
32070; 812–14450]
Newtek Business Services Corp.;
Notice of Application
April 13, 2016.
Securities and Exchange
Commission (‘‘Commission’’).
ACTION: Notice of an application for an
order under section 6(c) of the
Investment Company Act of 1940 (the
‘‘Act’’) for an exemption from sections
23(a), 23(b) and 63 of the Act; under
sections 57(a)(4) and 57(i) of the Act and
rule 17d–1 under the Act permitting
certain joint transactions otherwise
prohibited by section 57(a)(4) of the Act;
and under section 23(c)(3) of the Act for
an exemption from section 23(c) of the
Act.
AGENCY:
Newtek
Business Services Corp. (‘‘Applicant’’ or
‘‘Company’’) requests an order that
would permit Applicant to (a) issue
restricted shares of its common stock
(‘‘Restricted Stock’’) as part of the
compensation package for certain
participants in its 2015 Stock Incentive
Plan (the ‘‘Plan’’), (b) withhold shares of
the Applicant’s common stock or
purchase shares of Applicant’s common
SUMMARY OF THE APPLICATION:
12 17
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14 17
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CFR 200.30–3(a)(12).
Frm 00105
Fmt 4703
Sfmt 4703
stock from participants to satisfy tax
withholding obligations relating to the
vesting of Restricted Stock or the
exercise of options to purchase shares of
Applicant’s common stock (‘‘Options’’),
and (c) permit participants to pay the
exercise price of Options with shares of
Applicant’s common stock.
FILING DATES: The application was filed
on April 28, 2015, and amended on
October 28, 2015 and February 9, 2016.
HEARING OR NOTIFICATION OF HEARING: An
order granting the requested relief will
be issued unless the Commission orders
a hearing. Interested persons may
request a hearing by writing to the
Commission’s Secretary and serving
applicant with a copy of the request,
personally or by mail. Hearing requests
should be received by the Commission
by 5:30 p.m. on May 9, 2016, and
should be accompanied by proof of
service on applicant, in the form of an
affidavit or, for lawyers, a certificate of
service. Pursuant to rule 0–5 under the
Act, hearing requests should state the
nature of the writer’s interest, any facts
bearing upon the desirability of a
hearing on the matter, the reason for the
request, and the issues contested.
Persons who wish to be notified of a
hearing may request notification by
writing to the Commission’s Secretary.
ADDRESSES: Secretary, U.S. Securities
and Exchange Commission, 100 F Street
NE., Washington, DC 20549–1090.
Applicant, 212 West 35th Street, 2nd
Floor, New York, New York 10001.
FOR FURTHER INFORMATION CONTACT: Jill
Ehrlich, Senior Counsel, at (202) 551–
6819, or Mary Kay Frech, Branch Chief,
at (202) 551–6821 (Chief Counsel’s
Office, Division of Investment
Management).
SUPPLEMENTARY INFORMATION: The
following is a summary of the
application. The complete application
may be obtained via the Commission’s
Web site by searching for the file
number, or for an applicant using the
Company name box, at https://
www.sec.gov/search/search.htm or by
calling (202) 551–8090.
APPLICANT’S REPRESENTATIONS: 1.
Applicant is an internally managed
closed-end investment company that
has elected to be regulated as a business
development company (‘‘BDC’’) under
the Act.1 Applicant represents that it is
1 Applicant was incorporated under the laws of
the state of New York in June 1999 as Whitestone
Holdings, Inc., completed an initial public offering
in September 2000, and changed its name to
Newtek Business Services, Inc. in November 2002.
In November 2014, Newtek Business Services, Inc.
merged with and into Newtek Business Services
Corp. (the ‘‘Reincorporation Transaction’’) for the
purpose of reincorporating in the state of Maryland.
E:\FR\FM\19APN1.SGM
19APN1
Agencies
[Federal Register Volume 81, Number 75 (Tuesday, April 19, 2016)]
[Notices]
[Pages 23066-23068]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-08946]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-77610; File No. SR-NYSEArca-2016-55]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change Amending the NYSE
Arca Options Fee Schedule
April 13, 2016.
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 April 1, 2016, 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.
---------------------------------------------------------------------------
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
[[Page 23067]]
Schedule''). The Exchange proposes to implement the fee change
effective April 1, 2016. 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 modify a criterion used for Lead
Market Makers and Market Makers (collectively, ``Market Makers'') to
qualify for the Super Tier level of the Monthly Posting Credit Tiers
For Executions in Penny Pilot Issues and SPY (the ``Posting Tiers'').
The Exchange proposes to implement the fee change effective April 1,
2016.
Currently, Market Makers qualify for the Posting Tiers by achieving
certain percentages of Total Industry Customer Equity and exchange
traded fund (``ETF'') option ADV (``ICADV'').\4\ The Posting Tiers
include the Select, Super and Super II tiers and the volume
requirements to achieve each are as follows: \5\
---------------------------------------------------------------------------
\4\ The volume thresholds are based on Market Makers' volume
transacted electronically as a percentage of total industry Customer
equity and ETF options volumes as reported by the Options Clearing
Corporation (the ``OCC''). Total industry Customer equity and ETF
option volume is comprised of those equity and ETF contracts that
clear in the Customer account type at OCC and does not include
contracts that clear in either the Firm or Market Maker account type
at OCC or contracts overlying a security other than an equity or ETF
security. See OCC Monthly Statistics Reports, available here, https://www.theocc.com/webapps/monthly-volume-reports.
\5\ The Exchange notes that there is a posting credit of $0.28
associated with a Base Tier for which there is no volume
requirement.
---------------------------------------------------------------------------
Select Tier: A Market Maker achieve at least 0.25% of
ICADV from Market Maker Posted Orders in both Penny Pilot and non-Penny
Pilot issues;
Super Tier: A Market Maker achieve either (i) at least
0.65% of ICADV from Market Maker Posted Orders in both Penny Pilot and
non-Penny Pilot issues or (ii) at least 1.60% of ICADV from all orders
in Penny Pilot Issues, all account types, with at least 0.80% of ICADV
from Posted Orders in Penny Pilot Issues. As is the case today, in
calculating the Super Tier, the Exchange will include the ADV of the
Market Maker's affiliate(s); and
Super Tier II: A Market Maker must achieve at least 1.60%
of ICADV from Market Maker Posted Orders, and at least 0.90% of ICADV
from Posted Orders from both Penny Pilot and non-Penny Pilot issues.\6\
---------------------------------------------------------------------------
\6\ The Commission notes that a Market Maker alternatively can
qualify for Super Tier II by achieving at least 1.60% of ICADV from
Customer and Professional Customer orders, with at least 1.20% of
ICADV from Customer and Professional Customer Posted Orders in all
Issues.
---------------------------------------------------------------------------
The Exchange is proposing to modify one of the alternative criteria
to qualify for the Super Tier, by reducing the percentages of ICADV
from 0.65% of ICADV to 0.55% of ICADV from Market Maker Posted Orders
in All Issues.\7\ The Exchange believes this modification would
encourage more Market Makers to achieve Super Tier, which in turn would
improve the Posted Markets in all issues.
---------------------------------------------------------------------------
\7\ See supra n. 4.
---------------------------------------------------------------------------
The Exchange is not proposing any changes to the amount of the
Posting Credits for any of the tiers.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with section 6(b) of the Act,\8\ in general, and furthers the
objectives of sections 6(b)(4) and (5) of the Act,\9\ 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.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C. 78f(b)(4) and (5).
---------------------------------------------------------------------------
The Exchange believes that the proposed change to the Super Tier is
reasonable, equitable, and not unfairly discriminatory because it is
designed to encourage Market Makers to achieve the Super Tier by
posting volume on the Exchange, which additional liquidity would
benefit all participants by offering greater price discovery, increased
transparency, and an increased opportunity to trade on the Exchange.
The Exchange believes that modifying the Super Tier qualification is
also not unfairly discriminatory as it applies to all Market Makers and
may enable more Market Makers to meet the Super Tier on a more
consistent basis because, as proposed, the threshold has been lowered
slightly.
The Exchange also believes that the proposed change to the
qualification criteria is reasonable equitable, and not unfairly
discriminatory, as the Posting Credits are intended to encourage
quoting at the National Best Bid and Offer (``NBBO'') which in turn
benefits both Customers and non-Customers by having narrower spreads
available for execution.
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,\10\ 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 encourage competition, including by attracting a
wider variety of business to the Exchange, which would make the
Exchange a more competitive venue for, among other things, order
execution and price discovery. Moreover, because the proposed change to
the Super Tier continues to be based on the amount of business
conducted on the Exchange, it would apply equally to similarly-situated
Marker Makers and would not impose a disparate burden on competition
either among or between classes of market participants.
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\10\ 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.
[[Page 23068]]
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) \11\ of the Act and subparagraph (f)(2) of Rule
19b-4 \12\ thereunder, because it establishes a due, fee, or other
charge imposed by the Exchange.
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\11\ 15 U.S.C. 78s(b)(3)(A).
\12\ 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) \13\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\13\ 15 U.S.C. 78s(b)(2)(B).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-NYSEArca-2016-55 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-NYSEArca-2016-55. 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-NYSEArca-2016-55, and should
be submitted on or before May 10, 2016.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
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\14\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-08946 Filed 4-18-16; 8:45 am]
BILLING CODE 8011-01-P