Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and Immediate Effectiveness of Proposed Change Modifying the NYSE Amex Options Fee Schedule, 30583-30585 [2016-11544]
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Federal Register / Vol. 81, No. 95 / Tuesday, May 17, 2016 / Notices
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
The Exchange has not solicited, and
does not intend to solicit, comments on
this proposed rule change. The
Exchange has not received any written
comments from members or other
interested parties.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act 20 and paragraph (f)(2) of Rule
19b–4 thereunder.21 At any time within
60 days of the filing of the proposed rule
change, the Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act.
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:
jstallworth on DSK7TPTVN1PROD 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 No. SRBatsEDGX–2016–15 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 No.
SR–BatsEDGX–2016–15. 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 No. SR–BatsEDGX–
2016–15, and should be submitted on or
before June 7, 2016.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.22
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016–11543 Filed 5–16–16; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–77814; File No. SR–
NYSEMKT–2016–50]
Self-Regulatory Organizations; NYSE
MKT LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Change Modifying the NYSE Amex
Options Fee Schedule
May 11, 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 28,
2016, 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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to modify the
NYSE Amex Options Fee Schedule
2215
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
20 15
21 17
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f).
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30583
(‘‘Fee Schedule’’). The Exchange
proposes to implement the fee change
effective May 2, 2016. The proposed
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
the definition of a Firm Facilitation
trade to include Broker-Dealers, which
would be consistent with the treatment
of such transactions on another options
market. The Exchange proposes to
implement the change effective on May
2, 2016.
The current Fee Schedule defines a
‘‘Firm Facilitation’’ trade as ‘‘a Manual
trade that is executed in open outcry, in
which one counterparty clears in the
Firm range at the OCC, the other
counterparty clears in the Customer
range at the OCC, and both
counterparties have the same Clearing
Member symbol or identification.’’ 4
Firm Facilitation trades are not subject
to transaction charges and are only
subject to Royalty Fees.5
The Exchange proposes to modify the
definition of Firm Facilitation to
include Manual trades clearing in the
4 See Fee Schedule, Terms and Definitions,
available here, https://www.nyse.com/publicdocs/
nyse/markets/amex-options/
NYSE_Amex_Options_Fee_Schedule.pdf.
5 See id., Fee Schedule, sections I. A. and B.
(providing that Firm Facilitation trades are
executed at the rate of $0.00 per contract) and K.
(providing that Firm Facilitation trades are subject
to Royalty Fees). The Exchange notes that Royalty
Fees (or license fees) apply to certain classes of
options and such fees are passed-on by the
Exchange to the actual participants executing the
trade.
E:\FR\FM\17MYN1.SGM
17MYN1
30584
Federal Register / Vol. 81, No. 95 / Tuesday, May 17, 2016 / Notices
Broker-Dealer range at the OCC.6 The
Exchange notes that this proposal would
align its definition of a Firm Facilitation
trade with that of another options
exchange. Specifically, the fee schedule
for NYSE Arca provides that firm
facilitation trades are manual trades that
apply to ‘‘any transaction involving a
Firm proprietary trading account that
has a customer of that same Firm on the
contra side of the transaction, or a
broker dealer facilitating a Customer
order, where the broker dealer and the
Customer both clear through the same
clearing firm and the broker dealer
clears in the customer range.’’ 7
2. Statutory Basis
jstallworth on DSK7TPTVN1PROD with NOTICES
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 modification to the definition
of Firm Facilitation trades is reasonable,
equitable and not unfairly
discriminatory because it would align
the scope of such trades with how
trades are characterized on at least one
other options exchange, thereby
encouraging greater harmonization
across exchange. Additionally, the
Exchange believes the proposed change
is consistent with the Act because they
it 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.
6 See proposed Fee Schedule. Per the Fee
Schedule, a ‘‘Firm’’ means a Broker-Dealer that is
not registered as a dealer-specialist or Market Maker
that is an ATP Holder on the Exchange, per Rule
900.2NY(28) and a ‘‘Broker-Dealer’’ is an entity
registered pursuant to section 15 of the Exchange
Act, per Rule 990NY(3). See Fee Schedule, supra
n. 4.
7 See NYSE Arca fee schedule, Endnote 7,
available here, https://www.nyse.com/publicdocs/
nyse/markets/arca-options/
NYSE_Arca_Options_Fee_Schedule.pdf (describing
Firm Facilitation and Broker Dealer facilitating a
Customer—Manual). NYSE Arca likewise does not
charge transaction fees for firm facilitation trades.
8 15 U.S.C. 78f(b).
9 15 U.S.C. 78f(b)(4) and (5).
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B. Self-Regulatory Organization’s
Statement on Burden on Competition
change should be approved or
disapproved.
In accordance with section 6(b)(8) of
the Act,10 the Exchange does not believe
that the proposed rule change would
impose any burden on competition that
is not necessary or appropriate in
furtherance of the purposes of the Act.
The Exchange believes the proposed
amendment is pro-competitive as
expanding the definition of Firm
Facilitation trades consistent with other
markets may encourage additional order
flow to be direction to the Exchange and
any resulting increase in volume and
liquidity to the Exchange would benefit
all 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
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.
IV. Solicitation of Comments
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) 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
10 15
U.S.C. 78f(b)(8).
U.S.C. 78s(b)(3)(A).
12 17 CFR 240.19b–4(f)(2).
13 15 U.S.C. 78s(b)(2)(B).
11 15
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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 rulecomments@sec.gov. Please include File
Number SR–NYSEMKT–2016–50 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–2016–50. 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–
NYSEMKT–2016–50, and should be
submitted on or before June 7, 2016.
E:\FR\FM\17MYN1.SGM
17MYN1
Federal Register / Vol. 81, No. 95 / Tuesday, May 17, 2016 / Notices
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016–11544 Filed 5–16–16; 8:45 am]
BILLING CODE 8011–01–P
Secretary, U.S. Securities
and Exchange Commission, 100 F Street
NE., Washington, DC 20549–1090;
Applicants: 865 S. Figueroa Street, Suite
1800, Los Angeles, CA 90017.
ADDRESSES:
SECURITIES AND EXCHANGE
COMMISSION
[Investment Company Act Release No.
32113; File No. 812–14561]
FOR FURTHER INFORMATION CONTACT:
TCW Alternative Funds, et al.; Notice
of Application
May 11, 2016.
Securities and Exchange
Commission (‘‘Commission’’).
ACTION: Notice of an application for an
order pursuant to: (a) Section 6(c) of the
Investment Company Act of 1940
(‘‘Act’’) granting an exemption from
sections 18(f) and 21(b) of the Act; (b)
section 12(d)(1)(J) of the Act granting an
exemption from section 12(d)(1) of the
Act; (c) sections 6(c) and 17(b) of the
Act granting an exemption from sections
17(a)(1), 17(a)(2) and 17(a)(3) of the Act;
and (d) section 17(d) of the Act and rule
17d–1 under the Act to permit certain
joint arrangements and transactions.
jstallworth on DSK7TPTVN1PROD with NOTICES
AGENCY:
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.
Mark N. Zaruba, Senior Counsel, at
(202) 551–6878 or Mary Kay Frech,
Branch Chief, at (202) 551–6821
(Division of Investment Management,
Chief Counsel’s Office).
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 an applicant using the
Company name box, at https://
www.sec.gov/search/search.htm or by
calling (202) 551–8090.
SUPPLEMENTARY INFORMATION:
Applicants’ Representations
1. Each Trust is organized as a
Delaware statutory trust and is
Summary of the Application:
registered under the Act as an open-end
Applicants request an order that would
management investment company. The
permit certain registered open-end
Corporation is a Maryland corporation
management investment companies to
and is registered as an open-end
participate in a joint lending and
management investment company. Each
borrowing facility.
Trust and the Corporation has issued
Applicants: TCW Alternative Funds
one or more series, each of which has
and Metropolitan West Funds (each a
its own investment objective and its
‘‘Trust’’ and collectively the ‘‘Trusts’’),
own investment policies.1 TCWIMC is a
TCW Funds, Inc. (the ‘‘Corporation’’);
California corporation and MWAM is a
TCW Investment Management Company California limited liability company,
(‘‘TCWIMC’’) and Metropolitan West
and each of TCWIMC and MWAM is
Asset Management, LLC (‘‘MWAM’’)
registered as an investment adviser
(each, an ‘‘Adviser,’’ and such entities
under the Investment Advisers Act of
together, the ‘‘Advisers’’).
1940 (‘‘Advisers Act’’). Both are whollyFiling Dates: The application was
owned subsidiaries (direct or indirect)
filed on October 5, 2015, and amended
of the TCW Group, Inc., which, in turn,
on January 28, 2016 and May 10, 2016.
is owned indirectly by two investment
Hearing or Notification of Hearing: An funds that are controlled by The Carlyle
order granting the requested relief will
Group, L.P. In the future, the Advisers
be issued unless the Commission orders may advise Funds that are money
a hearing. Interested persons may
market funds that comply with rule 2a–
request a hearing by writing to the
Commission’s Secretary and serving
1 Applicants request that the order apply to any
applicants with a copy of the request,
registered open-end management investment
personally or by mail.
company or series thereof for which TCWIMC,
MWAM or any successor thereto or an investment
Hearing requests should be received
by the Commission by 5:30 p.m. on June adviser controlling, controlled by, or under
common control (within the meaning of section
6, 2016, and should be accompanied by
2(a)(9) of the Act) with TCWIMC or MWAM or any
proof of service on the applicants, in the successor thereto serves as investment adviser (each
a ‘‘Fund’’ and collectively the ‘‘Funds’’ or each such
form of an affidavit, or, for lawyers, a
investment adviser an ‘‘Adviser’’). For purposes of
certificate of service. Pursuant to Rule
the requested order, ‘‘successor’’ is limited to any
0–5 under the Act, hearing requests
entity that results from a reorganization into
14 17
another jurisdiction or a change in the type of a
business organization.
CFR 200.30–3(a)(12).
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30585
7 under the Act (collectively, the
‘‘Money Market Funds’’).2
2. The Funds may lend cash to banks
or other entities by entering into
repurchase agreements or purchasing
short-term instruments. The Funds may
also need to borrow money for
temporary purposes. In order to meet an
unexpected volume of redemptions or to
cover unanticipated cash shortfalls, the
Metropolitan West Funds have
contracted for a revolving credit facility
with the Bank of New York Mellon
Corporation, and other lenders that may
be added in the future to the lending
syndicate (‘‘Bank Borrowing’’). The
TCW Alternative Funds and TCW
Funds, Inc. may in the future join this
credit facility or enter into other
arrangements with other bank lenders
(each also a ‘‘Bank Borrowing’’). The
amount of borrowing under each of
these lines of credit is limited to the
amount specified by fundamental
investment restrictions, the terms
specified in the agreements, and/or
other policies of the applicable Fund
and section 18 of the Act.
3. If Funds that experience a cash
shortfall were to draw down on their
Bank Borrowing, they would pay
interest at a rate that is likely to be
higher than the rate that could be earned
by non-borrowing Funds on investments
in repurchase agreements and other
short-term money market instruments of
the same maturity as the Bank
Borrowing (‘‘Short-Term Instruments’’).
Applicants assert the difference between
the higher rate paid on Bank Borrowing
and what the bank pays to borrow under
repurchase agreements or other
arrangements represents the bank’s
profit for serving as the middleperson
between a borrower and lender and is
not attributable to any material
difference in the credit quality or risk of
such transactions.
4. The Funds seek to enter into master
interfund lending agreements with each
other (the ‘‘InterFund Program’’) that
would permit each Fund whose policies
permit it to do so to lend money directly
to and borrow money directly from
other Funds for temporary purposes
through the InterFund Program (an
‘‘Interfund Loan’’). The Money Market
Funds will not participate as borrowers.
Applicants state that the requested will
relief enable the Funds to access an
available source of money and reduce
costs incurred by the Funds that need to
obtain loans for temporary purposes and
permit those Funds that have cash
2 All Funds that currently intend to rely on the
requested order have been named as applicants.
Any other Fund that relies on the requested order
in the future will comply with the terms and
conditions of the application.
E:\FR\FM\17MYN1.SGM
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Agencies
[Federal Register Volume 81, Number 95 (Tuesday, May 17, 2016)]
[Notices]
[Pages 30583-30585]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-11544]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-77814; File No. SR-NYSEMKT-2016-50]
Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and
Immediate Effectiveness of Proposed Change Modifying the NYSE Amex
Options Fee Schedule
May 11, 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 28, 2016, 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 Substance
of the Proposed Rule Change
The Exchange proposes to modify the NYSE Amex Options Fee Schedule
(``Fee Schedule''). The Exchange proposes to implement the fee change
effective May 2, 2016. The proposed 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 the definition of a Firm
Facilitation trade to include Broker-Dealers, which would be consistent
with the treatment of such transactions on another options market. The
Exchange proposes to implement the change effective on May 2, 2016.
The current Fee Schedule defines a ``Firm Facilitation'' trade as
``a Manual trade that is executed in open outcry, in which one
counterparty clears in the Firm range at the OCC, the other
counterparty clears in the Customer range at the OCC, and both
counterparties have the same Clearing Member symbol or
identification.'' \4\ Firm Facilitation trades are not subject to
transaction charges and are only subject to Royalty Fees.\5\
---------------------------------------------------------------------------
\4\ See Fee Schedule, Terms and Definitions, available here,
https://www.nyse.com/publicdocs/nyse/markets/amex-options/NYSE_Amex_Options_Fee_Schedule.pdf.
\5\ See id., Fee Schedule, sections I. A. and B. (providing that
Firm Facilitation trades are executed at the rate of $0.00 per
contract) and K. (providing that Firm Facilitation trades are
subject to Royalty Fees). The Exchange notes that Royalty Fees (or
license fees) apply to certain classes of options and such fees are
passed-on by the Exchange to the actual participants executing the
trade.
---------------------------------------------------------------------------
The Exchange proposes to modify the definition of Firm Facilitation
to include Manual trades clearing in the
[[Page 30584]]
Broker-Dealer range at the OCC.\6\ The Exchange notes that this
proposal would align its definition of a Firm Facilitation trade with
that of another options exchange. Specifically, the fee schedule for
NYSE Arca provides that firm facilitation trades are manual trades that
apply to ``any transaction involving a Firm proprietary trading account
that has a customer of that same Firm on the contra side of the
transaction, or a broker dealer facilitating a Customer order, where
the broker dealer and the Customer both clear through the same clearing
firm and the broker dealer clears in the customer range.'' \7\
---------------------------------------------------------------------------
\6\ See proposed Fee Schedule. Per the Fee Schedule, a ``Firm''
means a Broker-Dealer that is not registered as a dealer-specialist
or Market Maker that is an ATP Holder on the Exchange, per Rule
900.2NY(28) and a ``Broker-Dealer'' is an entity registered pursuant
to section 15 of the Exchange Act, per Rule 990NY(3). See Fee
Schedule, supra n. 4.
\7\ See NYSE Arca fee schedule, Endnote 7, available here,
https://www.nyse.com/publicdocs/nyse/markets/arca-options/NYSE_Arca_Options_Fee_Schedule.pdf (describing Firm Facilitation and
Broker Dealer facilitating a Customer--Manual). NYSE Arca likewise
does not charge transaction fees for firm facilitation trades.
---------------------------------------------------------------------------
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 modification to the
definition of Firm Facilitation trades is reasonable, equitable and not
unfairly discriminatory because it would align the scope of such trades
with how trades are characterized on at least one other options
exchange, thereby encouraging greater harmonization across exchange.
Additionally, the Exchange believes the proposed change is consistent
with the Act because they it 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,\10\ the Exchange
does not believe that the proposed rule change would impose any burden
on competition that is not necessary or appropriate in furtherance of
the purposes of the Act. The Exchange believes the proposed amendment
is pro-competitive as expanding the definition of Firm Facilitation
trades consistent with other markets may encourage additional order
flow to be direction to the Exchange and any resulting increase in
volume and liquidity to the Exchange would benefit all Exchange
participants through increased opportunities to trade as well as
enhancing price discovery.
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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.
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-NYSEMKT-2016-50 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-2016-50. 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-NYSEMKT-2016-50, and should
be submitted on or before June 7, 2016.
[[Page 30585]]
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. 2016-11544 Filed 5-16-16; 8:45 am]
BILLING CODE 8011-01-P