Proposed Collection; Comment Request, 31983-31984 [2016-11871]
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Federal Register / Vol. 81, No. 98 / Friday, May 20, 2016 / Notices
child orders, and cancel/replace orders.
The Exchange believes that
distinguishing between complex orders
with 9 or more options legs and those
orders with 8 or fewer options legs is a
reasonable and objective approach. In
addition, the Exchange believes the
proposal appropriately distinguishes
between parent/child orders that are
generated by a broker’s efforts to obtain
an execution on a larger size order while
minimizing market impact and multipart orders that used by more
sophisticated market participants.
Similarly, the Exchange believes that
the proposal that cancel/replace orders
would count as separate orders with
limited exceptions is a reasonable and
objective approach to distinguish the
orders of retail customers that are
‘‘worked’’ by a broker from orders
generated by algorithms used by more
sophisticated market participants.
Thus, the Exchange believes the
proposal, which establishes an objective
methodology for counting average daily
order submissions for Professional
Customer order counting purposes, is
consistent with the Act.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
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The Exchange does not believe that
this proposed rule change would
impose any burden on competition not
necessary or appropriate in furtherance
of the purposes of the Act. To the
contrary, the proposed rule change is a
competitive change that is substantially
similar to recent rule changes filed by
the CBOE and PHLX.20
The Exchange notes that one of the
purposes of the Professional Customer
designation is to help ensure fairness in
the marketplace and promote
competition among all market
participants. The Exchange believes that
this proposal would help establish more
competition among market participants
and promote the purposes for which the
Exchange’s Professional Customer rule
was originally adopted. Moreover, the
proposal would stem ensure consistency
and stem potential confusion as to the
manner in which options exchanges
compute the Professional Customer
order volume.
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 Exchange has filed the proposed
rule change pursuant to Section
19(b)(3)(A)(iii) of the Act 21 and Rule
19b–4(f)(6) thereunder.22 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.
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) 23 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 No. SR–
NYSEARCA–2016–65 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–NYSEARCA–2016–65. This file
number should be included on the
subject line if email is used. To help the
Commission process and review your
21 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
23 15 U.S.C. 78s(b)(2)(B).
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 No. SR–
NYSEARCA–2016–65, and should be
submitted on or before June 10, 2016.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.24
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016–11878 Filed 5–19–16; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Proposed Collection; Comment
Request
Upon Written Request, Copies Available
From: Securities and Exchange
Commission, Office of FOIA Services,
100 F Street NE., Washington, DC
20549–2736.
Extension:
Rule 19b–5 and Form PILOT, SEC File No.
270–448, OMB Control No. 3235–0507.
Notice is hereby given that, pursuant
to the Paperwork Reduction Act of 1995
(‘‘PRA’’) (44 U.S.C. 3501 et seq.), the
Securities and Exchange Commission
(‘‘Commission’’) is soliciting comments
on the existing collection of information
provided for in Rule 19b–5 (17 CFR
240.19b–5) and Form PILOT (17 CFR
249.821) under the Securities Exchange
22 17
20 See
id.
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24 17
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CFR 200.30–3(a)(12).
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Federal Register / Vol. 81, No. 98 / Friday, May 20, 2016 / Notices
Act of 1934 (‘‘Act’’) (15 U.S.C. 78a et
seq.). The Commission plans to submit
this existing collection of information to
the Office of Management and Budget
(‘‘OMB’’) for extension and approval.
Rule 19b–5 provides a temporary
exemption from the rule-filing
requirements of Section 19(b) of the Act
(15 U.S.C. 78s(b)) to self-regulatory
organizations (‘‘SROs’’) wishing to
establish and operate pilot trading
systems. Rule 19b–5 permits an SRO to
develop a pilot trading system and to
begin operation of such system shortly
after submitting an initial report on
Form PILOT to the Commission. During
operation of any such pilot trading
system, the SRO must submit quarterly
reports of the system’s operation to the
Commission, as well as timely
amendments describing any material
changes to the system. Within two years
of operating such pilot trading system
under the exemption afforded by Rule
19b–5, the SRO must submit a rule
filing pursuant to Section 19(b)(2) of the
Act (15 U.S.C. 78s(b)(2)) to obtain
permanent approval of the pilot trading
system from the Commission.
The collection of information is
designed to allow the Commission to
maintain an accurate record of all new
pilot trading systems operated by SROs
and to determine whether an SRO has
properly availed itself of the exemption
afforded by Rule 19b–5, is operating a
pilot trading system in compliance with
the Act, and is carrying out its statutory
oversight obligations under the Act.
The respondents to the collection of
information are national securities
exchanges and national securities
associations.
While there are 20 national securities
exchanges and national securities
associations that may avail themselves
of the exemption under Rule 19b–5 and
the use of Form PILOT, it is estimated
that approximately three respondents
will file a total of 3 initial reports, 12
quarterly reports, and 6 amendments on
Form PILOT per year, with an estimated
total annual response burden of 126
hours and an estimated total annual cost
burden of $10,047. At an average hourly
cost of $272.33, the estimated aggregate
related internal cost of compliance with
respect to Rule 19b–5 for all
respondents is $34,314 per year (126
burden hours multiplied by $272.33/
hour = $34,314).
Written comments are invited on (a)
whether the proposed collection of
information is necessary for the proper
performance of the functions of the
Commission, including whether the
information shall have practical utility;
(b) the accuracy of the Commission’s
estimates of the burden of the proposed
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collection of information; (c) ways to
enhance the quality, utility, and clarity
of the information to be collected; and
(d) ways to minimize the burden of the
collection of information on
respondents, including through the use
of automated collection techniques or
other forms of information technology.
Consideration will be given to
comments and suggestions submitted in
writing within 60 days of this
publication.
An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
under the PRA unless it displays a
currently valid OMB control number.
Please direct your written comments
to: Pamela Dyson, Director/Chief
Information Officer, Securities and
Exchange Commission, c/o Remi PavlikSimon, 100 F Street NE., Washington,
DC 20549 or send an email to: PRA_
Mailbox@sec.gov.
Dated: May 16, 2016.
Robert W Errett,
Deputy Secretary.
[FR Doc. 2016–11871 Filed 5–19–16; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–77835; File No. SR–
NYSEARCA–2016–61]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend the NYSE Arca
Options Fee Schedule
May 16, 2016.
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 May 2,
2016, NYSE Arca, Inc. (the ‘‘Exchange’’
or ‘‘NYSE Arca’’) 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.
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. The
proposed rule change is available on the
1 15
U.S.C. 78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
2 15
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Exchange’s Web site at www.nyse.com,
at the principal office of the Exchange,
and at the Commission’s Public
Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
self-regulatory organization included
statements concerning the purpose of,
and basis for, the proposed rule change
and discussed any comments it received
on the proposed rule change. The text
of those statements may be examined at
the places specified in Item IV below.
The Exchange has prepared summaries,
set forth in sections A, B, and C below,
of the most significant parts of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of this filing is to amend
the Fee Schedule in a number of
different ways, effective May 2, 2016.
Specifically, the Exchange proposes (i)
to increase certain Take Liquidity Fees
charged; (ii) to modify the Customer and
Professional Customer Incentive
Program; and (iii) to introduce a new
qualification for Customer and
Professional Customer Posting Credit
Tiers in Non-Penny Pilot Issues, as
described below.
Transaction Fees for Taking Liquidity
The Exchange proposes to modify the
fees paid by Market Makers, Lead
Market Makers, Firms and Broker
Dealers, and Professional Customers
(collectively, ‘‘Non-Customers’’) for
Taking Liquidity in non-Penny Pilot
Issues (‘‘Take Fees’’). Specifically, the
Exchange proposes to increase the Take
Fee charged to Non-Customers from
$0.99 per contract to $1.08 per contract,
which is within the range of fees
charged by competing option
exchanges.4
Customer and Professional Customer
Incentive Program (the ‘‘Incentive
Program’’)
The Exchange is proposing to increase
one of the credits available under the
Incentive Program, which provides OTP
Holders and OTP Firms (collectively,
‘‘OTPs’’) five alternatives to earn
4 See, e.g., NASDAQ Options Market (‘‘NOM’’)
price list, available here, https://
www.nasdaqtrader.com/
Micro.aspx?id=optionsPricing (charging noncustomers a $1.10 per contract take liquidity fee in
Non-Penny Pilot Issues).
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Agencies
[Federal Register Volume 81, Number 98 (Friday, May 20, 2016)]
[Notices]
[Pages 31983-31984]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-11871]
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SECURITIES AND EXCHANGE COMMISSION
Proposed Collection; Comment Request
Upon Written Request, Copies Available From: Securities and Exchange
Commission, Office of FOIA Services, 100 F Street NE., Washington, DC
20549-2736.
Extension:
Rule 19b-5 and Form PILOT, SEC File No. 270-448, OMB Control No.
3235-0507.
Notice is hereby given that, pursuant to the Paperwork Reduction
Act of 1995 (``PRA'') (44 U.S.C. 3501 et seq.), the Securities and
Exchange Commission (``Commission'') is soliciting comments on the
existing collection of information provided for in Rule 19b-5 (17 CFR
240.19b-5) and Form PILOT (17 CFR 249.821) under the Securities
Exchange
[[Page 31984]]
Act of 1934 (``Act'') (15 U.S.C. 78a et seq.). The Commission plans to
submit this existing collection of information to the Office of
Management and Budget (``OMB'') for extension and approval.
Rule 19b-5 provides a temporary exemption from the rule-filing
requirements of Section 19(b) of the Act (15 U.S.C. 78s(b)) to self-
regulatory organizations (``SROs'') wishing to establish and operate
pilot trading systems. Rule 19b-5 permits an SRO to develop a pilot
trading system and to begin operation of such system shortly after
submitting an initial report on Form PILOT to the Commission. During
operation of any such pilot trading system, the SRO must submit
quarterly reports of the system's operation to the Commission, as well
as timely amendments describing any material changes to the system.
Within two years of operating such pilot trading system under the
exemption afforded by Rule 19b-5, the SRO must submit a rule filing
pursuant to Section 19(b)(2) of the Act (15 U.S.C. 78s(b)(2)) to obtain
permanent approval of the pilot trading system from the Commission.
The collection of information is designed to allow the Commission
to maintain an accurate record of all new pilot trading systems
operated by SROs and to determine whether an SRO has properly availed
itself of the exemption afforded by Rule 19b-5, is operating a pilot
trading system in compliance with the Act, and is carrying out its
statutory oversight obligations under the Act.
The respondents to the collection of information are national
securities exchanges and national securities associations.
While there are 20 national securities exchanges and national
securities associations that may avail themselves of the exemption
under Rule 19b-5 and the use of Form PILOT, it is estimated that
approximately three respondents will file a total of 3 initial reports,
12 quarterly reports, and 6 amendments on Form PILOT per year, with an
estimated total annual response burden of 126 hours and an estimated
total annual cost burden of $10,047. At an average hourly cost of
$272.33, the estimated aggregate related internal cost of compliance
with respect to Rule 19b-5 for all respondents is $34,314 per year (126
burden hours multiplied by $272.33/hour = $34,314).
Written comments are invited on (a) whether the proposed collection
of information is necessary for the proper performance of the functions
of the Commission, including whether the information shall have
practical utility; (b) the accuracy of the Commission's estimates of
the burden of the proposed collection of information; (c) ways to
enhance the quality, utility, and clarity of the information to be
collected; and (d) ways to minimize the burden of the collection of
information on respondents, including through the use of automated
collection techniques or other forms of information technology.
Consideration will be given to comments and suggestions submitted in
writing within 60 days of this publication.
An agency may not conduct or sponsor, and a person is not required
to respond to, a collection of information under the PRA unless it
displays a currently valid OMB control number.
Please direct your written comments to: Pamela Dyson, Director/
Chief Information Officer, Securities and Exchange Commission, c/o Remi
Pavlik-Simon, 100 F Street NE., Washington, DC 20549 or send an email
to: PRA_Mailbox@sec.gov.
Dated: May 16, 2016.
Robert W Errett,
Deputy Secretary.
[FR Doc. 2016-11871 Filed 5-19-16; 8:45 am]
BILLING CODE 8011-01-P