Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending the Exchange's Schedule of Fees and Charges To Eliminate the Listing Fee in Connection With Exchange Listing of Certain Exchange Traded Products, 33720-33722 [2016-12510]
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33720
Federal Register / Vol. 81, No. 103 / Friday, May 27, 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 9 and paragraph (f) of Rule
19b–4 thereunder.10 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:
sradovich on DSK3TPTVN1PROD 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–
BatsBZX–2016–17 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–BatsBZX–2016–17. 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–
BatsBZX–2016–17, and should be
submitted on or before June 17, 2016.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016–12511 Filed 5–26–16; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–77883; File No. SR–
NYSEArca–2016–69]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Amending the
Exchange’s Schedule of Fees and
Charges To Eliminate the Listing Fee
in Connection With Exchange Listing
of Certain Exchange Traded Products
May 23, 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 May 10,
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 and II
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.
17 CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
11
1 15
9 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f).
10 17
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I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend the
Exchange’s Schedule of Fees and
Charges (‘‘Fee Schedule’’) to eliminate
the Listing Fee in connection with
Exchange listing of certain Exchange
Traded Products, effective May 10,
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
Currently, the Exchange’s Schedule of
Fees and Charges (‘‘Schedule’’) provides
that an issuer of a new Exchange Traded
Product 4 (with the exception of
Managed Fund Shares and Managed
Trust Securities) shall pay a ‘‘Listing
Fee’’ of $7,500 and an issuer of Managed
Fund Shares and Managed Trust
Securities shall pay a Listing Fee of
$10,000.
The Exchange proposes to amend the
Fee Schedule to eliminate the Listing
Fee in connection with Exchange listing
of certain Exchange Traded Products
(‘‘ETPs’’) effective May 10, 2016, as
described below. Exchange rules
applicable to listing of certain ETPs
provide for listing such products
pursuant to Rule 19b–4(e) under the Act
if they satisfy all criteria—referred to as
‘‘generic’’ listing criteria—in the
4 For the purposes of the Schedule, the term
‘‘Exchange Traded Products’’ includes securities
described in NYSE Arca Equities Rules 5.2(j)(3)
(Investment Company Units); 8.100 (Portfolio
Depositary Receipts); 8.200 (Trust Issued Receipts);
8.201 (Commodity-Based Trust Shares); 8.202
(Currency Trust Shares); 8.203 (Commodity Index
Trust Shares); 8.204 (Commodity Futures Trust
Shares); 8.300 (Partnership Units); 8.500 (Trust
Units); 8.600 (Managed Fund Shares), and 8.700
(Managed Trust Securities).
E:\FR\FM\27MYN1.SGM
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Federal Register / Vol. 81, No. 103 / Friday, May 27, 2016 / Notices
sradovich on DSK3TPTVN1PROD with NOTICES
applicable Exchange ETP rule. If an ETP
does not satisfy all applicable generic
criteria, the Commission must approve
or issue a notice of effectiveness with
respect to a proposed rule change filed
by the Exchange pursuant to Section
19(b) of the Act prior to Exchange listing
of such ETP.
The Exchange has determined to
eliminate the Listing Fee for the
following ETPs listed on the Exchange
pursuant to Rule 19b–4(e) under the
Act, and for which a proposed rule
change pursuant to Section 19(b) of the
Act is not required to be filed with the
Commission: Investment Company
Units; Portfolio Depositary Receipts;
and Currency Trust Shares (collectively,
‘‘Generically-Listed Exchange Traded
Products’’). Thus, no Listing Fee will be
payable by an issuer of a GenericallyListed Exchange Traded Product, as
defined above.
Other ETPs—specifically, Trust
Issued Receipts,5 Commodity-Based
Trust Shares, Commodity Index Trust
Shares, Commodity Futures Trust
Shares, Partnership Units, Trust Units,
and non-generically-listed Investment
Company Units, Portfolio Depositary
Receipts and Currency Trust Shares—
would continue to be subject to a Listing
Fee of $7,500.6 Managed Fund Shares
and Managed Trust Securities would
continue to be subject to a Listing Fee
of $10,000.
Elimination of the Listing Fee for
Generically-Listed Exchange Traded
Products would provide [sic] would
help correlate the Listing Fee applicable
to an issue of ETPs to the resources
required to list such ETPs on the
Exchange. The Exchange believes it is
appropriate to continue to charge a
Listing Fee for ETPs for which a
proposed rule change pursuant to
Section 19(b) of the Act is required to
5 Commentary .01 to NYSE Arca Equities Rule
8.200 provides generic standards for listing Trust
Issued Receipts pursuant to Rule 19b–4(e) under the
Act. However, the Exchange does not currently
intend to list Trust Issued Receipts under
Commentary .01, but instead lists Trust Issued
Receipts under Commentary .02 to NYSE Arca
Equities Rule 8.200, which does not provide generic
standards for listing pursuant to Rule 19b–4(e)
under the Act. Before listing any Trust Issued
Receipts pursuant to Commentary .01 to NYSE Arca
Equities Rule 8.200, the Exchange will first file a
proposed rule change with respect to the Listing
Fee applicable to any such generically-listed
securities.
6 Exchange rules applicable to Trust Issued
Receipts (Commentary .02 to NYSE Arca Equities
Rule 8.200); Commodity-Based Trust Shares (NYSE
Arca Equities Rule 8.201), Commodity Index Trust
Shares (NYSE Arca Equities Rule 8.203),
Commodity Futures Trust Shares (NYSE Arca
Equities Rule 8.204), Partnership Units (NYSE Arca
Equities Rule 8.300), and Trust Units (NYSE Arca
Equities Rule 8.500) do not provide for listing
pursuant to Rule 19b–4(e) under the Act.
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18:00 May 26, 2016
Jkt 238001
be filed because of the additional time
and resources required by Exchange
staff to prepare and review such filings
and to communicate with issuers and
the Commission regarding such filings.
Application of a Listing Fee for
Managed Fund Shares and Managed
Trust Securities is appropriate because
the Exchange generally incurs increased
costs in connection with the rulemaking process, listing administration
process, issuer services, and
consultative legal services where a
proposed rule change pursuant to
Section 19(b) of the Act is required to
be filed with the Commission.
Annual Fees set forth in the Fee
Schedule applicable to ETPs would
remain unchanged.
Notwithstanding the elimination of
the Listing Fee applicable to certain
ETPs, as described above, the Exchange
will continue to be able to fund its
regulatory obligations.
2. Statutory Basis
NYSE Arca believes that the proposal
is consistent with section 6(b) 7 of the
Act, in general, and section 6(b)(4) 8 of
the Act in particular, in that it provides
for the equitable allocation of reasonable
dues, fees and other charges among its
issuers and other persons using its
facilities. In addition, the Exchange
believes the proposal is consistent with
the requirement under section 6(b)(5) 9
that an exchange have rules that are
designed to prevent fraudulent and
manipulative acts and practices, to
promote just and equitable principles of
trade, to foster cooperation and
coordination with persons engaged in
regulating, clearing, settling, processing
information with respect to, and
facilitating transactions in securities, to
remove impediments to, and perfect the
mechanism of a free and open market
and, in general, to protect investors and
the public interest; and are not designed
to permit unfair discrimination between
customers, issuers, brokers, or dealers.
The proposed elimination of the Listing
Fee for Generically-Listed ETPs, as
described above, is equitable and does
not unfairly discriminate between
issuers because it would apply
uniformly to all Investment Company
Units; Portfolio Depositary Receipts;
and Currency Trust Shares that are
listed generically under Exchange rules.
The Exchange believes eliminating the
Listing Fee for Generically-Listed ETPs,
as described above, and continuing to
impose Listing Fees for ETPs that are
not generically listed is reasonable given
U.S.C. 78f(b).
U.S.C. 78f(b)(4).
9 15 U.S.C. 78f(b)(5).
the additional resources required by the
Exchange in connection with ETPs
requiring a proposed rule change
pursuant to section 19(b). The Exchange
believes it is appropriate to continue to
charge a Listing Fee for ETPs for which
a proposed rule change pursuant to
section 19(b) of the Act is required to be
filed because of the significant
additional extensive time, legal and
business resources required by
Exchange staff to prepare and review
such filings and to communicate with
issuers and the Commission regarding
such filings.
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 purpose of the Act. The Exchange
believes the proposed rule change
would promote competition because it
will eliminate the Listing Fee for certain
ETPs and will therefore encourage
issuers to develop and list additional
ETP issues on the Exchange.
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.
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: (i) Necessary or appropriate in
the public interest; (ii) for the protection
of investors; or (iii) otherwise in
furtherance of the purposes of the Act.
If the Commission takes such action, the
Commission shall institute proceedings
to determine whether the proposed rule
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.
7 15
8 15
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10 15
11 17
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33721
E:\FR\FM\27MYN1.SGM
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(2).
27MYN1
33722
Federal Register / Vol. 81, No. 103 / Friday, May 27, 2016 / Notices
Comments may be submitted by any of
the following methods:
SECURITIES AND EXCHANGE
COMMISSION
Electronic Comments
[Release No. 34–77886; File No. SR–
BatsBYX–2016–08]
• 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–2016–69 on the subject line.
May 23, 2016.
Paper Comments
sradovich on DSK3TPTVN1PROD 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–NYSEArca–2016–69. 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–2016–69 and should be
submitted on or before June 17, 2016.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016–12510 Filed 5–26–16; 8:45 am]
BILLING CODE 8011–01–P
12 17
18:36 May 26, 2016
Pursuant to section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on May 17,
2016, Bats BYX Exchange, Inc. (the
‘‘Exchange’’ or ‘‘BYX’’) 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 Exchange. The Exchange has
designated the proposed rule change as
one establishing or changing a member
due, fee, or other charge imposed by the
Exchange under section 19(b)(3)(A)(ii)
of the Act 3 and Rule 19b–4(f)(2)
thereunder,4 which renders the
proposed rule change effective upon
filing with 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 Substance of
the Proposed Rule Change
The Exchange filed a proposal to
amend the Market Data section of its fee
schedule to: (i) Decrease the External
Distribution and User fees for the BYX
Top and BYX Last Sale feeds; and (ii)
amend the New External Distributor
Credit for the BYX Top, BYX Last Sale,
and Bats One Feeds.
The text of the proposed rule change
is available at the Exchange’s Web site
at www.batstrading.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
Exchange 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
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
CFR 200.30–3(a)(12).
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BYX Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of a
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Section of Its Fee Schedule
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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 the
Market Data section of its fee schedule
to: (i) Decrease the External Distribution
and User fees for the BYX Top and BYX
Last Sale feeds; and (ii) amend the New
External Distributor Credit for the BYX
Top, BYX Last Sale, and Bats One
Feeds.
BYX Top and Last Sale Fees
BYX Top is a market data feed that
includes top of book quotations and
execution information for all equity
securities traded on the Exchange.5 BYX
Last Sale is a market data feed that
includes last sale information for all
equity securities traded on Exchange.6
The Exchange proposes to decrease the
External Distribution and User fees for
the BYX Top and BYX Last Sale feeds.7
The Exchange currently charges an
External Distributor 8 of BYX Last Sale
a flat fee of $1,250 per month. The
Exchange also separately charges an
External Distributor of BYX Top a flat
fee of $1,250 per month.9 The Exchange
5 See
Exchange Rule 11.22(d).
Exchange Rule 11.22(g).
7 The Exchange notes that Bats EDGA Exchange,
Inc. (‘‘EDGA’’) and Bats EDGX Exchange, Inc.
(‘‘EDGX’’) also filed proposed rule changes with
Commission to amend similar fees for their
respective Top and Last Sale market data products.
See File Nos. SR–BatsEDGA–2016–09 and SR–
BatsEDGX–2016–18. The Exchange represents that
the proposed fees will continue to not cause the
combined cost of subscribing to EDGX, EDGA, BYX,
and Bats BZX Exchange Inc.’s (‘‘BZX’’) individual
Top and Last Sale feeds to be greater than those
currently charged to subscribe to the Bats One Feed.
See Securities Exchange Act Release Nos. 74285
(February 18, 2015), 80 FR 9828 (February 24, 2015)
(SR–BATS–2015–11); 74283 (February 18, 2015), 80
FR 9809 (February 24, 2015) (SR–EDGA–2015–09);
74282 (February 17, 2015), 80 FR 9487 (February
23, 2015) (SR–EDGX–2015–09); and 74284
(February 18, 2015), 80 FR 9792 (February 24, 2015)
(SR–BYX–2015–09) (‘‘Initial Bats One Feed Fee
Filings’’). In these filings, the Exchange represented
that the cost of subscribing to each of the
underlying individual feeds necessary to create the
Bats One Feed would not be greater than the cost
of subscribing to the Bats One Feed. Id.
8 An ‘‘External Distributor’’ of an Exchange
Market Data product is defined as ‘‘a Distributor
that receives the Exchange Market Data product and
then distributes that data to a third party or one or
more Users outside the Distributor’s own entity.’’
See the Exchange Fee Schedule available at https://
batstrading.com/support/fee_schedule/byx/.
9 Subscribers to either BYX Top or BYX Last Sale
are able to receive, upon request and at no
additional cost, BYX Last Sale or BYX Top, as
applicable.
6 See
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Agencies
[Federal Register Volume 81, Number 103 (Friday, May 27, 2016)]
[Notices]
[Pages 33720-33722]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-12510]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-77883; File No. SR-NYSEArca-2016-69]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change Amending the
Exchange's Schedule of Fees and Charges To Eliminate the Listing Fee in
Connection With Exchange Listing of Certain Exchange Traded Products
May 23, 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 May 10, 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 and II
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 Exchange's Schedule of Fees and
Charges (``Fee Schedule'') to eliminate the Listing Fee in connection
with Exchange listing of certain Exchange Traded Products, effective
May 10, 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
Currently, the Exchange's Schedule of Fees and Charges
(``Schedule'') provides that an issuer of a new Exchange Traded Product
\4\ (with the exception of Managed Fund Shares and Managed Trust
Securities) shall pay a ``Listing Fee'' of $7,500 and an issuer of
Managed Fund Shares and Managed Trust Securities shall pay a Listing
Fee of $10,000.
---------------------------------------------------------------------------
\4\ For the purposes of the Schedule, the term ``Exchange Traded
Products'' includes securities described in NYSE Arca Equities Rules
5.2(j)(3) (Investment Company Units); 8.100 (Portfolio Depositary
Receipts); 8.200 (Trust Issued Receipts); 8.201 (Commodity-Based
Trust Shares); 8.202 (Currency Trust Shares); 8.203 (Commodity Index
Trust Shares); 8.204 (Commodity Futures Trust Shares); 8.300
(Partnership Units); 8.500 (Trust Units); 8.600 (Managed Fund
Shares), and 8.700 (Managed Trust Securities).
---------------------------------------------------------------------------
The Exchange proposes to amend the Fee Schedule to eliminate the
Listing Fee in connection with Exchange listing of certain Exchange
Traded Products (``ETPs'') effective May 10, 2016, as described below.
Exchange rules applicable to listing of certain ETPs provide for
listing such products pursuant to Rule 19b-4(e) under the Act if they
satisfy all criteria--referred to as ``generic'' listing criteria--in
the
[[Page 33721]]
applicable Exchange ETP rule. If an ETP does not satisfy all applicable
generic criteria, the Commission must approve or issue a notice of
effectiveness with respect to a proposed rule change filed by the
Exchange pursuant to Section 19(b) of the Act prior to Exchange listing
of such ETP.
The Exchange has determined to eliminate the Listing Fee for the
following ETPs listed on the Exchange pursuant to Rule 19b-4(e) under
the Act, and for which a proposed rule change pursuant to Section 19(b)
of the Act is not required to be filed with the Commission: Investment
Company Units; Portfolio Depositary Receipts; and Currency Trust Shares
(collectively, ``Generically-Listed Exchange Traded Products''). Thus,
no Listing Fee will be payable by an issuer of a Generically-Listed
Exchange Traded Product, as defined above.
Other ETPs--specifically, Trust Issued Receipts,\5\ Commodity-Based
Trust Shares, Commodity Index Trust Shares, Commodity Futures Trust
Shares, Partnership Units, Trust Units, and non-generically-listed
Investment Company Units, Portfolio Depositary Receipts and Currency
Trust Shares--would continue to be subject to a Listing Fee of
$7,500.\6\ Managed Fund Shares and Managed Trust Securities would
continue to be subject to a Listing Fee of $10,000.
---------------------------------------------------------------------------
\5\ Commentary .01 to NYSE Arca Equities Rule 8.200 provides
generic standards for listing Trust Issued Receipts pursuant to Rule
19b-4(e) under the Act. However, the Exchange does not currently
intend to list Trust Issued Receipts under Commentary .01, but
instead lists Trust Issued Receipts under Commentary .02 to NYSE
Arca Equities Rule 8.200, which does not provide generic standards
for listing pursuant to Rule 19b-4(e) under the Act. Before listing
any Trust Issued Receipts pursuant to Commentary .01 to NYSE Arca
Equities Rule 8.200, the Exchange will first file a proposed rule
change with respect to the Listing Fee applicable to any such
generically-listed securities.
\6\ Exchange rules applicable to Trust Issued Receipts
(Commentary .02 to NYSE Arca Equities Rule 8.200); Commodity-Based
Trust Shares (NYSE Arca Equities Rule 8.201), Commodity Index Trust
Shares (NYSE Arca Equities Rule 8.203), Commodity Futures Trust
Shares (NYSE Arca Equities Rule 8.204), Partnership Units (NYSE Arca
Equities Rule 8.300), and Trust Units (NYSE Arca Equities Rule
8.500) do not provide for listing pursuant to Rule 19b-4(e) under
the Act.
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Elimination of the Listing Fee for Generically-Listed Exchange
Traded Products would provide [sic] would help correlate the Listing
Fee applicable to an issue of ETPs to the resources required to list
such ETPs on the Exchange. The Exchange believes it is appropriate to
continue to charge a Listing Fee for ETPs for which a proposed rule
change pursuant to Section 19(b) of the Act is required to be filed
because of the additional time and resources required by Exchange staff
to prepare and review such filings and to communicate with issuers and
the Commission regarding such filings. Application of a Listing Fee for
Managed Fund Shares and Managed Trust Securities is appropriate because
the Exchange generally incurs increased costs in connection with the
rule-making process, listing administration process, issuer services,
and consultative legal services where a proposed rule change pursuant
to Section 19(b) of the Act is required to be filed with the
Commission.
Annual Fees set forth in the Fee Schedule applicable to ETPs would
remain unchanged.
Notwithstanding the elimination of the Listing Fee applicable to
certain ETPs, as described above, the Exchange will continue to be able
to fund its regulatory obligations.
2. Statutory Basis
NYSE Arca believes that the proposal is consistent with section
6(b) \7\ of the Act, in general, and section 6(b)(4) \8\ of the Act in
particular, in that it provides for the equitable allocation of
reasonable dues, fees and other charges among its issuers and other
persons using its facilities. In addition, the Exchange believes the
proposal is consistent with the requirement under section 6(b)(5) \9\
that an exchange have rules that are designed to prevent fraudulent and
manipulative acts and practices, to promote just and equitable
principles of trade, to foster cooperation and coordination with
persons engaged in regulating, clearing, settling, processing
information with respect to, and facilitating transactions in
securities, to remove impediments to, and perfect the mechanism of a
free and open market and, in general, to protect investors and the
public interest; and are not designed to permit unfair discrimination
between customers, issuers, brokers, or dealers. The proposed
elimination of the Listing Fee for Generically-Listed ETPs, as
described above, is equitable and does not unfairly discriminate
between issuers because it would apply uniformly to all Investment
Company Units; Portfolio Depositary Receipts; and Currency Trust Shares
that are listed generically under Exchange rules. The Exchange believes
eliminating the Listing Fee for Generically-Listed ETPs, as described
above, and continuing to impose Listing Fees for ETPs that are not
generically listed is reasonable given the additional resources
required by the Exchange in connection with ETPs requiring a proposed
rule change pursuant to section 19(b). The Exchange believes it is
appropriate to continue to charge a Listing Fee for ETPs for which a
proposed rule change pursuant to section 19(b) of the Act is required
to be filed because of the significant additional extensive time, legal
and business resources required by Exchange staff to prepare and review
such filings and to communicate with issuers and the Commission
regarding such filings.
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\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(b)(4).
\9\ 15 U.S.C. 78f(b)(5).
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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 purpose of the Act. The Exchange believes the
proposed rule change would promote competition because it will
eliminate the Listing Fee for certain ETPs and will therefore encourage
issuers to develop and list additional ETP issues on the Exchange.
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.
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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 the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is: (i)
Necessary or appropriate in the public interest; (ii) for the
protection of investors; or (iii) otherwise in furtherance of the
purposes of the Act. If the Commission takes such action, the
Commission shall institute proceedings to determine whether the
proposed rule 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.
[[Page 33722]]
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-2016-69 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-2016-69. 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-2016-69 and should
be submitted on or before June 17, 2016.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
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\12\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-12510 Filed 5-26-16; 8:45 am]
BILLING CODE 8011-01-P